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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, March 24, 2020 FAx 3�2-oI92
www.cententralsan.org
2:00 p.m.
Board Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Paul Causey (via teleconference)
Member Jim Nejedly
Staff.
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Phil Leiber, Director of Finance and Administration
Jean-Marc Peit, Director of Engineering and Technical Services (via teleconference)
Stephanie King (via teleconference)
Edgar Lopez, Capital Projects Division Manager (via teleconference) (left after Item 4.a.)
Kevin Mizuno, Finance Manager
Erica Brooks Peters, Senior Internal Auditor (left after Item 4.b.)
Shari Deutsch, Risk Management Administrator
Laci Kolc, Risk Management Specialist (via teleconference)
Donna Anderson, Assistant to the Secretary of the District (via teleconference)
1. Call Meeting to Order
Chair Causey called the meeting to order at 2:00 p.m.
2. Public Comments
None.
April 2, 2020 Regular Board Meeting Agenda Packet- Page 112 of 115
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Finance Committee Minutes
March 24, 2020
Page 2
3. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures incurred February 7
through March 12, 2020
Staff responded to a list of questions posed in advance of the meeting by
Chair Causey concerning the expenditures listing. During the discussion,
Chair Causey noted that there are payments related to contracts with
Woodard & Curren, with whom he currently has a consulting contract 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.
b. Review February 2020 Financial Overview and Investment Reports
COMMITTEE ACTION: Recommended Board receipt.
C. Receive the 2019 annual report of Central San's 457 Deferred
Compensation, 401(a) Money Purchase, and 401(h) Retirement Health
Savings Plans
Staff responded to a list of questions posted by Chair Causey in advance of
the meeting covering the following topics:
1) Board Members will be invited to attend future financial wellness
seminars facilitated by/CMA-RC to educate employees on important
and trending retirement topics;
2) The rationale for the shorter, two-year term of the current
administrative services agreement with ICMA-RC to provide
recordkeeping and education services for the 457 and 401(a) plans;
3) The impact the COVID-19 pandemic has had on the stock market and
fund values; and
4) The differences between the three 457 plans and whether
consolidating them, if allowed, might lead to reduced fees.
COMMITTEE ACTION: Recommended Board receipt.
4. Other Items
a. Receive the Internal Audit Report on Contract Management Controls
It was noted that an updated presentation had been made available before
the meeting that included Management responses to the auditor
recommendations. Ms. Brooks Peters reviewed the presentation.
April 2, 2020 Regular Board Meeting Agenda Packet- Page 113 of 115
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Finance Committee Minutes
March 24, 2020
Page 3
Member Nejedly observed that the Audit Report indicated quite a few issues
of a housekeeping nature for the Purchasing group, which he found
perplexing. Ms. King explained the context of the findings, stating that the
existing Enterprise Resource Planning (ERP) software (SunGard) has
limitations; thus, many manual processes are still in use. Rather than clean
up the old system, it was determined that staff time would be better utilized
by resolving these issues during implementation of the new ERP software
provided by Oracle, which is currently underway. Mr. Leiber agreed,
acknowledging that the SunGard software is very inflexible and creates a lot
of manual work for staff.
Chair Causey expressed the hope that similar problems will not recur in ten
years and suggested that regular evaluations of the Oracle ERP system be
conducted after it is launched.
Chair Causey also suggested that the findings resulting from future audits be
prioritized by high, medium, and low to enable Board Members to
understand what needs to be dealt with most urgently. Mr. Bailey concurred
with this suggestion.
Mr. Lopez stated that the Capital Projects Division, which is the largest user
of engineering agreements, has already implemented the audit
recommendations associated with his workgroup.
COMMITTEE ACTION: Received the report and requested audit
findings be prioritized in future reports.
b. Review Risk Management Loss Control Report as of March 3, 2020
Ms. Deutsch reviewed the Loss Control Report with the Committee.
COMMITTEE ACTION: Received the report.
C. Annual review of contracts and blanket purchase orders (BPOs) older than
five years with an annual spend greater than $25,000
Ms. King stated that the list included with the agenda materials indicates
eleven contracts and blanket purchase orders older than five years and with
an annual spend greater than $25,000 in 2019.
Member Nejedly said he favors using local vendors whenever possible, as
long as they provide good service.
Chair Causey pointed out that two of the listed contracts date back to 1998
and 2003 and asked why they are so old. Ms. King said those contracts
April 2, 2020 Regular Board Meeting Agenda Packet- Page 114 of 115
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Finance Committee Minutes
March 24, 2020
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initially were set up on an annual basis with their terms and conditions
updated periodically. She said her staff has been working over the past
ten years to prioritize and re-bid older contracts with a goal toward
eliminating those that are very old, ultimately having none with a term longer
than five years.
COMMITTEE ACTION: Reviewed and provided input to staff.
5. Announcements
a. Mr. Bailey said staff is currently testing videoconferencing software and will
begin to test with Board Members in the coming days, with a view toward
conducting Committee meetings and, eventually, Board meetings utilizing
this technology for the duration of the COVID-19 pandemic.
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.
7. Future Scheduled Meetings
Tuesday, April 21, 2020 at 2:00 p.m.
Tuesday, May 19, 2020 at 1:00 p.m.
Tuesday, June 23, 2020 at 2:00 p.m.
8. Adjournment— at 2:56 p.m.
April 2, 2020 Regular Board Meeting Agenda Packet- Page 115 of 115