Loading...
HomeMy WebLinkAboutFinance MINUTES 01-28-20 Page 2 of 5 ,or76— I CENTRAL SAN CENTRAL • ■ • COSTA . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA MICHAELMCGILL President SANITARY DISTRICT TAD JPILECKI FINANCE COMMITTEE President Pro Tem PAUL H CAUSEY JAMES A.NEJEDLY M I N U T E S DAVID R, WILLIAMS PHONE: (925)228-9500 Tuesday, January 28, 2020 FAx 3�2-oI92 www.cententralsan.org 2:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Paul Causey Member Jim Nejedly 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 Kevin Mizuno, Finance Manager Shari Deutsch, Risk Management Administrator (arrived during Item 4.b.) 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. 3. Old Business a. Follow-up to questions asked at the December 18, 2019 Finance Committee meeting regarding specific expenditures COMMITTEE ACTION: Received the information. February 20, 2020 Regular Board Meeting Agenda Packet- Page 134 of 161 Page 3 of 5 Finance Committee Minutes January 28, 2020 Page 2 4. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures paid December 6, 2019 through January 16, 2020 Staff responded to a list of 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 expenditure: Page 22 - $2,148.09— Carahsoft Technology Corp. This expenditure was for licenses for DocuSign, an electronic signature software. Chair Causey was interested in learning how much each license costs, how many licenses the District owns, and the amount of any annual recurring costs. Staff indicated it would provide this information for the next Committee meeting. Chair Causey noted Check No. 30499 payable to Woodard & Curren on the expenditures listing, stating that he currently has a consulting contract with Woodard & Curran on matters unrelated to Central San. Therefore, in an abundance of caution, he will be recusing himself from voting on approval of expenditures at the upcoming Board meeting. COMMITTEE ACTION: Recommended Board approval and noted that Chair Causey would be recusing himself when this item comes before the full Board for consideration. b. Review December 2019 Financial Statements and Investment Reports Mr. Mizuno noted that going forward, staff will be providing quarterly financial reports to the Committee and Board. However, investment reports will continue to be provided monthly in accordance with Board Policy No. BP 005 — Statement of Investment Policy. That policy will come up for its annual review later in the year. At that time, the Board may wish to consider changing the frequency of investment reporting from monthly to quarterly consistent with other similar public agencies and still meeting the quarterly reporting compliance requirement per state law. Mr. Mizuno also briefly recapped the financial information for December 2019 included in the cover memo to the Financial Statements and Investment Reports. COMMITTEE ACTION: Recommended Board receipt. February 20, 2020 Regular Board Meeting Agenda Packet- Page 135 of 161 Page 4 of 5 Finance Committee Minutes January 28, 2020 Page 3 C. Review draft Position Paper to approve updated administrative overhead percentage of 190% for Fiscal Year 2020-21 , or consider alternative rate of 185% which incorporates one year of CalPERS Healthcare savings Mr. Leiber began the discussion with a reminder that several months ago the Committee asked staff to offer an alternative rate that included savings from the transition to Ca1PERS Healthcare. The Position Paper outlined the staff recommendation of using the three-year smoothed calculation based on actual expenditure, and an alternative that adjusts FY 2018-19 with the pro- forma savings from the Ca1PERS transition as if it occurred in that year. Chair Causey asked what the lost revenue would be if the smoothed rate of 190% was reduced to 185%. Mr. Leiber said he does not believe it would be a large amount, and any lost revenue would need to be made up with sewer service charge revenue. Chair Causey said the philosophy laid out by staff is generally satisfactory in his view, but he believes the cost savings from Ca1PERS is so significant as to warrant special recognition in the calculation. He expressed concern that some customers, including the City of Concord, are concerned at how high Central San's administrative overhead rate has been. He reiterated his desire to know what the lost revenues would be at various rates. Mr. Bailey opined that if it turns out that the financial impact is relatively insignificant, he would prefer to leave the calculation methodology as is. A brief discussion took place as to the difference between the overhead rate charged to the City of Concord and the administrative overhead rate charged to other customers, which is the subject of this discussion. The Committee said it would like to review the requested lost revenue information before making a recommendation to the full Board. COMMITTEE ACTION: Requested further information at the next meeting on anticipated lost revenues for administrative overhead rates ranging from 164% to 190%. 5. Other Items a. Review Risk Management Loss Control Report as of January 6, 2020 Ms. Deutsch reviewed the Loss Control Report with the Committee and provided information on two new claims received since the report was published. COMMITTEE ACTION: Received the report. February 20, 2020 Regular Board Meeting Agenda Packet- Page 136 of 161 Page 5 of 5 Finance Committee Minutes January 28, 2020 Page 4 6. Announcements a. Ms. Sasaki announced that the District received a claim today from California River Watch. Central San's six-year settlement agreement with that organization recently expired. b. Chair Causey said the City of San Jose recently settled an exfiltration claim from San Francisco Baykeeper, and it was his understanding that Mt. View Sanitary District and the City of Sunnyvale also have received claims from the same organization alleging that exfiltration from sewer lines is leaching into waterways. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items None. COMMITTEE ACTION: Received the list and provided input to staff. 8. Future Scheduled Meetings Tuesday, February 18, 2020 at 2:00 p.m. Tuesday, March 24, 2020 at 2:00 p.m. Tuesday, April 21, 2020 at 2:00 p.m. 9. Adjournment— at 3:07 p.m. February 20, 2020 Regular Board Meeting Agenda Packet- Page 137 of 161