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HomeMy WebLinkAboutFinance MINUTES 11-26-19 Page 2 of 5 ,or76— I CENTRAL SAN CENTRAL • ■ • COSTAi. . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA DAVID R, WILLIAMS President SANITARY DISTRICT MICHAEL R.MCCILL FINANCE COMMITTEE Presiden t Pro Tem PAUL H CAUSEY JAMES A.NEJEDLY M I N U T E S TAD J PHECKI PHONE: (925)228-9500 Tuesday, November 26, 2019 FAX 3�2-0192 www.cententralsan.org 2:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Member Jim Nejedly Member Tad Pilecki, alternate for Chair Causey Staff.- Roger S. Bailey, General Manager Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Stephanie King, Purchasing and Materials Manager Kevin Mizuno, Finance Manager Tej O'Malley, Human Resources Manager Todd Smithey, Finance Administrator Shari Deutsch, Risk Management Administrator Donna Anderson, Assistant to the Secretary of the District 1. Call Meeting to Order Acting Chair Nejedly called the meeting to order at 2:00 p.m. 2. Public Comments None. 3. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred October 11, 2019 through November 14, 2019 Staff addressed several questions posed in advance of the meeting by Member Pilecki and at the meeting by Acting Chair Nejedly. December 5, 2019 Regular Board Meeting Agenda Packet- Page 124 of 127 Page 3 of 5 Finance Committee Minutes November 26, 2019 Page 2 Acting Chair Nejedly asked for additional information at the next meeting for the expenditure of$11,800 to Softchoice Corporation (Check No. 226295) for one-year support renewal. COMMITTEE ACTION: Recommended Board approval and follow-up information on the Softchoice Corporation expenditure. b. Review October 2019 Financial Statements and Investment Reports COMMITTEE ACTION: Recommended Board receipt. C. Review draft Position Paper to adopt Resolution Nos. 2019- through Resolution Nos. 2019- , pursuant to District Code Section 2.28.010, establishing three new funds: Rate Stabilization Fund, Pension Prefunding Trust Fund, and the Other Post-Employment Benefits (OPEB) Trust Fund Mr. Leiber explained that the two new funds for the Pension and OPEB trusts will make Central San's financial reporting clearer. COMMITTEE ACTION: Recommended Board approval. 4. Other Items a. Review Risk Management Loss Control Report as of November 8, 2019 Ms. Deutsch reviewed the Loss Control Report with the Committee. COMMITTEE ACTION: Received the report. b. Receive information on Contra Costa County Employees' Retirement Association's (CCCERA) valuation as of December 31, 2018 and 2019 GASB 68 Financial Valuation Highlights Mr. Mizuno summarized the information contained in the memo included with the agenda material. Member Pilecki suggested that staff augment the memo to include discussion of the funded ratios including the Pension Prefunding Trust. He also sought clarification of the following terms: funding valuation basis, financial reporting valuation, valuation value basis, and market value basis. He asked that staff clarify the use of the terms in the two contexts covered by the memo. Mr. Smithey explained there are two types of valuations for assets: December 5, 2019 Regular Board Meeting Agenda Packet- Page 125 of 127 Page 4 of 5 Finance Committee Minutes November 26, 2019 Page 3 1) Market value - basically a snapshot in time, which encompasses the first two terms above; and 2) Valuation value - an actuarially determined value that is smoothed over time, which encompasses the last two terms. Member Pilecki asked which value should be used from a Board planning perspective. Mr. Smithey said both valuations are necessary for financial planning purposes. If there is a large unrecognized gain or loss, one must consider the market value because it is helpful when deciding, for example, on making large investments. On the other hand, the valuation value helps with rate setting and mitigates volatility because it is smoothed. As an accountant, he said the Net Pension Liability (NPL) calculated under GASB 68 is an appropriate value when comparing the funded status of differing pension systems; however, the public has historically looked at the valuation value. Mr. Mizuno further explained that the valuation value basis (smoothed) is useful for budgetary planning in establishing pension contribution requirements for the coming year, much like an adjustable mortgage payment is determined. On the other hand, the market value basis (snapshot) is what an organization would owe if it were to go out of business at that valuation date. COMMITTEE ACTION: Received the information and provided input to staff. C. Receive information on identity theft benefit for District employees Ms. O'Malley briefly recapped the information contained in the agenda material. Ms. Deutsch added that the Identity Fraud Expense Reimbursement Coverage covers both employees and their spouses. COMMITTEE ACTION: Received the information. 5. Announcements — None. 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list. December 5, 2019 Regular Board Meeting Agenda Packet- Page 126 of 127 Page 5 of 5 Finance Committee Minutes November 26, 2019 Page 4 7. Future Scheduled Meetings Wednesday, December 18, 2019 at 2:00 p.m. 8. Adjournment— at 2:39 p.m. December 5, 2019 Regular Board Meeting Agenda Packet- Page 127 of 127