HomeMy WebLinkAboutFinance MINUTES 12-18-19 Page 2 of 9
I CENTRAL SAN
CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF
REGULAR MEETING OF THE BOARD OF DIRECTORS:
CENTRAL CONTRA COSTA DAVID R, WILLIAMS
President
SANITARY DISTRICT MICHAEL R.MCCILL
FINANCE COMMITTEE President Pro Tem
PAUL H CA USEY
JAMES A.NEJEDLY
M I N U T E S TAD J PHECKI
PHONE: (925)228-9500
92
Wednesday, December 18, 2019 FAX cent alsan. rg
www.centralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Paul Causey
Member Jim Nejedly
Guest:
David Alvey, Maze & Associates (left after Item 4.d.)
Staff.-
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Stephanie King, Purchasing and Materials Manager
Danea Gemmell, Planning and Development Services Division Manager (left after
Item 4.a.)
Kevin Mizuno, Finance Manager
Shari Deutsch, Risk Management Administrator
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair Causey called the meeting to order at 2:00 p.m.
2. Public Comments
None.
Items 4.c. and 4.d. were taken out of order, immediately following Item 2, after which the
Chair reverted to Item 3.a.
January 16, 2020 Regular Board Meeting Agenda Packet- Page 216 of 232
Page 3 of 9
Finance Committee Minutes
December 18, 2019
Page 2
3. Old Business
a. Follow-up to questions asked at the November 26, 2019 meeting regarding a
certain check expenditure
COMMITTEE ACTION: Received the information.
4. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures incurred 11/15/19 through
12/05/19
Staff responded to several questions posed in advance of the meeting by
Chair Causey and at the meeting by Member Nejedly.
The Committee requested additional information at the next meeting for the
following procurement card (P-card) purchases:
Page 25 - $5,221.12— Parts to repair District vehicle
Page 26 - $16,743.45— Maintenance parts
COMMITTEE ACTION: Recommended Board approval and follow-up
information on two P-card purchases.
b. Review November 2019 Financial Statements and Investment Reports
Mr. Mizuno briefly recapped the information included with his cover memo to
the Financial Statements and Investment Reports.
Chair Causey said he appreciates the analysis contained in the monthly
cover memo from Mr. Mizuno and inquired about the possibility of the
Committee receiving just an explanatory cover memo on a monthly basis
and the full Financial Statements on a quarterly basis. He said this would
streamline the review time for the Committee Members, adding that he was
confident that staff would notify the Committee if anything unusual came to
light during a month when the Committee was not reviewing the full Financial
Statements.
Mr. Bailey said staff utilizes the monthly Financial Statements and
Investment Reports for internal use, but if it is the Committee's desire to
conduct quarterly rather than monthly reviews of the statements themselves,
staff will accommodate the request. To the extent monthly reports are
specified in Board policies, those policies could be modified at the next
available normal review.
January 16, 2020 Regular Board Meeting Agenda Packet- Page 217 of 232
Page 4 of 9
Finance Committee Minutes
December 18, 2019
Page 3
Member Nejedly concurred with Chair Causey's request.
COMMITTEE ACTION: Recommended Board receipt, and that the
Financial Statements and Investment Reports be reviewed by the
Committee on a quarterly, rather than monthly, basis going forward,
provided any items considered to be noteworthy or of significance are
brought to the Committee's attention as they arise.
C. Review draft Position Paper to accept (1) the comparative audited Financial
Statements for the fiscal years ended June 30, 2019 and 2018 performed by
Maze & Associates, and (2) the independent auditors' memorandum on
internal control and required communications for the fiscal year ended June
30, 2019 - Guest: David Alvey, CPA and Audit Partner of Maze & Associates
This item was taken out of order, immediately following Item 2.
Mr. Alvey addressed Items 4.c and 4.d. together, noting that he serves as
the District's independent external auditor. He reported that Central San
received a clean, unmodified opinion on its audited financials.
The Committee said they were very impressed with the amount of
information included with the audited financials and the Comprehensive
Annual Financial Report, and the fact that the auditors had so little to report.
Mr. Mizuno responded to several questions posed by Chair Causey prior to
the meeting regarding the following topics:
1)* Payoff of sick leave at retirement. Referring to Item J (Compensated
Absences) on page 33 of the audited financials, Chair Causey asked
for specific information on the District's liability for payoff at retirement
for employee sick leave. Mr. Mizuno provided a chart (see attached)
indicating dollar values associated with total sick leave accrued for
fiscal years ending June 30, 2015 through 2019. The chart indicates
that the totals have generally been rising and, as of the end of last
fiscal year, stood at approximately$1.2 million. Chair Causey said it
is important for the Board to have a good understanding of the range
of dollars involved and requested this level of detail be provided to the
Committee each year when the audited financials are finalized.
2)* CADs and AVADs. Chair Causey requested a ten-year history of
outstanding balances for contractual assessment districts (CADs) and
Alhambra Valley assessment districts (AVADs). Mr. Mizuno
distributed a chart of balances for the past ten years and a graph
indicating the trending over the same period. As of June 30, 2019,
the combined outstanding balance for both CADs and AVADs was
approximately$1.2 million.
January 16, 2020 Regular Board Meeting Agenda Packet- Page 218 of 232
Page 5 of 9
Finance Committee Minutes
December 18, 2019
Page 4
3) Agreement with City of Concord. In response to Chair Causey's
request for information on the agreement with the City of Concord,
Mr. Leiber said it runs for 25 years. The agreement was last renewed
in 1999; therefore, it is not due for renewal until 2024. At this point,
staff sees no major deficiencies with the current agreement, which is
based on flow. Chair Causey commented that he would prefer the
payments under the agreement be made quarterly, with annual
adjustments.
COMMITTEE ACTION: Recommended Board receipt.
d. Review final draft Comprehensive Annual Financial Report (CAFR) as of the
fiscal year ended June 30, 2019 for submission to the Government Finance
Officers Association (GFOA)
Discussed in conjunction with Item 4.c.
COMMITTEE ACTION: Recommended Board approval.
Upon conclusion of the discussion of Items 4.c and 4.d., Chair Causey resumed the
original agenda order, starting with Item 3.a.
5. Other Items
a.* Review Risk Management Loss Control Report as of December 3, 2019
Ms. Deutsch distributed an updated Loss Control Report (attached) and
reviewed it with the Committee.
COMMITTEE ACTION: Received the report.
6. Announcements
a. Mr. Bailey announced he will be out of the office all next week.
b. Member Causey said he will be away the week after Christmas.
7. 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.
January 16, 2020 Regular Board Meeting Agenda Packet- Page 219 of 232
Page 6 of 9
Finance Committee Minutes
December 18, 2019
Page 5
8. Future Scheduled Meetings — 2020 meeting dates to be determined.
9. Adjournment— at 2:57 p.m.
*Attachment
January 16, 2020 Regular Board Meeting Agenda Packet- Page 220 of 232
Item 4.c.
(Handouts)
FY Total ChangeM Change M
6/30/2019 1,215,384.00 (92,375.00) -8%
6/30/2018 1,123,009.00 (38,625.00) -4%
6/30/2017 1,084,384.00 101,213.00 9%
6/30/2016 1,185,597.00 (89,346.00) -8%
6/30/2015 1,096,251.00 (1,096,251.00)
January 16, 2020 Regular Board Meeting Agenda Packet- Page 221 of 232
Central San AVAD&CAD
10 Year History
Fiscal Year 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010
CAD $ 394,662 $ 162,781 $ 217,778 $ 257,159 $ 289,505 $ 353,380 $ 434,396 $ 519,426 $ 606,964 $ 877,420
AVAD $ 820,003 $ 946,454 $ 1,094,047 $ 1,258,659 $ 1,380,181 $ 1,485,110 $ 1,655,065 $ 1,701,905 $ 1,818,114 $ 1,790,185
CAD & AVAD Balance 10-Year Trend
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000r
$200,000
2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010
CAD - AVAD
January 16, 2020 Regular Board Meeting Agenda Packet- Page 222 of 232
CCCSD 2019-20 Loss Control Report
Item 5.a.
0 New Incident 0 Ongoing Incident 0 Prior FY 0 Litigated (Handout)
OVERFLOWS
Status # ID# Loss DOL Other Party Address City Reserve Expenses Claim Incident Total Paid to
Type Paid* Paid**
Open B 2019014 SSO 07/26/18 Jane Kappel 25 Arlene Lane Walnut Creek $ 10,000.00 $ $ $ 10,000.00 Denied
Closed 1 2020001 SSO 07/24/19 Jason Gardner 116 Wilderness Lane Lafayette $ - $ 1,246.23 $ $ 1,246.23 Servicemaster
Closed 2 2020004 SSO 09/03/19 Janet and Bobby Seibe 1971 Pine Street Martinez $ 151.93 Claimant
$ 7,033.10 $ 7,185.03 Servicemaster
Closed 3 2020009 SSO 12/06/19 Dan Finnane 321 Bedford Place Moraga $ 7,000.00 $ - $ - $ 7,000.00
Total-SSO $ 17,000.00 $ 8,279.33 $ 151.93 $ 25,431.26
LIABILITY INCIDENTS-OTHER
Status # ID# Loss DOL Other Party Address City Reserve Expenses Claim Incident Total Paid to
Type Paid* Paid**
Open E 2019020 GL Fall 2016 P Hill Park&Rec Dist Murderer's Creek Pleasant Hill $ $ $ - $ - Denied-Tolling Agt
Closed 1 2020008 GL 10/29/19 Mingxian Liu 1572 Siskiyou Dr. Walnut Creek $ $ $ 5,425.00 $ 5,425.00 Hamill Construction
Total-Liab $ $ $ 5,425.00 $ 59425.00
AUTO INCIDENTS
Status # ID# Loss DOL Other Party Location Veh# Reserve Expenses Claim Incident Total Paid to
Type Paid* Paid**
Closed 1 2020006 AL 9/12/19 David Katkov 161 Tracy Lane N/A $ $ $ 650.00 $ 650.00 Claimant
Total-Auto $ $ $ 650.00 $ 650.00
PROPERTY INCIDENTS
Status # ID# Loss DOL Other Party Address City Subrogation Expenses Loss Cost Incident Total Comments
Type Paid*
Closed 1 2020002 Prop 07/10/19 State Farm for 0/P Imhoff Drive Fence $ (2,724.32) $ 1,998.90 $ 725.42 $ - Recovered from SF
Closed 2 2020003 Prop 07/07/19 CostULess Insurance Marsh Dr.REW Hydrant $ (1,000.00) $ 195.93 $ - $ (1,000.00) Accepted$1k
Closed 3 2020005 GL 9/17/19 Deanna Sloup Alvarado Avenue Walnut Creek $ (2,392.59) $ 2,392.59 $ - $ - Recovered from AAA
Total-Prop $ (6,116.91) $ 2,194.83 $ 725.42 $ (1,000.00)
PLUMBING REIMBURSEMENTS
Status # ID# Loss DOL Other Party Address City Reserve Expenses Claim Incident Total Paid to
Type Paid* Paid**
Closed 1 2020007 PL 11/04/19 Kathleen Decius 1031 Pleasant Valley F Pleasant Hill $ $ $ 224.40 $ 224.40 Claimant
Total-PL $ $ $ 224.40 $ 224.40
Note: Prior fiscal year closed claims have been removed from report. 12118/19
*Paid per GM Authority
" Board approval required to pay claims of$50,000 or more
January 16, 2020 Regular Board Meeting Agenda Packet- Page 223 of 232