The URL can be used to link to this page

Home My WebLink About12.c. Committee Minutes-Finance 06-23-2020 Page 1 of 6 Item 12.c. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT July 2, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: JUNE 23, 2020 - FINANCE COMMITTEE - CHAIR CAUSEYAND MEMBER NEJEDLY Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. FINANCE Committee Minutes 06-23-20 2. (Handout) Item 5.b. Cash Flow Balances July 2, 2020 Regular Board Meeting Agenda Packet- Page 64 of 69 Page 2 of 6 ,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, June 23, 2020 FAX. (925)372-0192 www.centralsan.org 2:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California (All attendees participated via videoconference) Committee: Chair Paul Causey Member Jim Nejedly Staff.- Roger S. Bailey, General Manager (joined during Item 5.a.) Katie Young, Secretary of the District Ann Sasaki, Deputy General Manager (joined during Item 5.a.) Phil Leiber, Director of Finance and Administration Jean-Marc Petit, Director of Engineering and Technical Services Kevin Mizuno, Finance Manger Todd Smithey, Finance Administrator ((joined during Item 5.a.) Shari Deutsch, Risk Management Administrator (joined during Item 5.a.) Donna Anderson, Assistant to the Secretary of the District 1. Notice This meeting was held in accordance with the Brown Act as in effect under the State Emergency Services Act, the Governor's Emergency Declaration related to COVID- 19, and the Governor's Executive Order N-29-20 issued on March 17, 2020 that allowed attendance by Board Members, District staff, and the public to participate and conduct the meeting by teleconference, videoconference, or both. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Causey called the meeting to order at 2:00 p.m. July 2, 2020 Regular Board Meeting Agenda Packet- Page 65 of 69 Page 3 of 6 Finance Committee Minutes June 23, 2020 Page 2 3. Public Comments None. 4. Old Business a. Follow-up to questions asked at the May 18, 2020 Finance Committee meeting regarding specific expenditures The Committee expressed satisfaction with the follow-up information provided in the agenda material. COMMITTEE ACTION: Received the information. 5. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred May 1 through June 11, 2020 Staff responded to a list of questions posed in advance of the meeting by Chair Causey concerning the expenditures listing. As part of that discussion, the following topics were covered: Reimbursement for COVID-19 Expenses: It was noted that the both the expenditures listing and the Risk Management Loss Control Report (see Item 6.a.) include expenses related to COVID-19, such as services for cleaning and sanitizing and the purchase of personal protective equipment. Staff has been tracking all COVID-related costs (whether initially charged to divisional cost centers in the Running Expense Fund, or to the Self-Insurance Fund) and all eligible expenses will be included with the reimbursement claim that will be submitted to the Federal Emergency Management Agency (FEMA). Electronic Signatures: The annual licensing fees for DocuSign, an electronic signature technology, were indicated on the expenditures listing. The cost per license is approximately$850 per year. It was explained that before the COVID-19 pandemic, Central San had 12 DocuSign licenses used by administrative support staff to route documents for electronic signatures. Since the shelter-in-place orders, an additional 25 licenses were added because of the increased need to utilize the technology while so many employees have been teleworking. Mr. Bailey acknowledged that he found the electronic signature process to be convenient and efficient for the high volume of documents requiring his review/approval. In response to a question from Chair Causey as to the cost savings associated with using electronic signature technology, Mr. Bailey said it would be difficult to quantify. He did note, however, that staff will revisit the overall number of July 2, 2020 Regular Board Meeting Agenda Packet- Page 66 of 69 Page 4 of 6 Finance Committee Minutes June 23, 2020 Page 3 licenses needed once staff is no longer teleworking. Chair Causey asked if the cost for the licenses added since the pandemic was considered a COVID-related expense. Mr. Leiber said staff has been discussing that very question, but no final answer has been determined. He also noted that alternative software solutions may be considered for this function if there continues to be a high number of users into the future. Ms. Young mentioned that staff will be bringing a proposed new Board Policy regarding the use of electronic signatures to the Administration Committee for discussion at its July 7, 2020 meeting. Member Nejedly said he understands the need for DocuSign and has no problem with its use at the District. The Committee expressed satisfaction with staff's responses and requested no further information. COMMITTEE ACTION: Recommended Board approval. b.* Review May 2020 Financial Overview and Investment Reports Mr. Mizuno said staff has been reviewing options for obtaining better investment returns than those available through the County's Local Agency Investment Fund (LAIF). One option being explored is the California Asset Management Program (CAMP). CAMP is a California Joint Powers Authority (JPA) that provides California public agencies with professional investment services directed by a Board of Trustees comprised of experienced local government finance directors and treasurers. It offers a range of services to assist investors and participants with their investment and arbitrage compliance needs. He said funds in both LAIF and CAMP are entirely liquid. If the County allows CAMP as an option for participants, Mr. Leiber said it may be possible to place funds in excess of the $75 million County cap into a CAMP fund to take advantage of higher-short-term yields. Presently, the County does not offer CAMP as an investment choice for non-County entities such as Central San, but staff is in discussions with the County regarding this limitation. Chair Causey asked how often and for how long during the year the District typically has more than $75 million available to be invested. Mr. Leiber provided a graph (see attached) portraying the District's cash flow balances overlaid with projected and actual inflows/outflows for Fiscal Year 2019-20. As illustrated by the graph, there were four months during that period when cash balances exceeded $75 million. Chair Causey was pleased that staff was investigating investment options to maximize returns and asked for a more detailed presentation at a future meeting about CAMP, including how to enroll and unenroll for short-term investments. July 2, 2020 Regular Board Meeting Agenda Packet- Page 67 of 69 Page 5 of 6 Finance Committee Minutes June 23, 2020 Page 4 COMMITTEE ACTION: Recommended Board receipt and requested additional information at a future Committee meeting regarding CAMP. 6. Other Items a. Review Risk Management Loss Control Report as of June 2, 2020 Ms. Deutsch reviewed the Loss Control Report with the Committee. She noted that the second page of the report indicated the charges for additional cleaning at the District because of COVID-19, all of which will be included in the claim for reimbursement from FEMA. COMMITTEE ACTION: Received the report. 7. Announcements a. Mr. Bailey announced that he spoke with the General Manager of Valley Water (formerly Santa Clara Valley Water District) about the Water Exchange Project, and a meeting is being arranged that will include all parties, including Contra Costa Water District. 8. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items With respect to the future agenda item concerning impacts of COVID-19, Chair Causey said he was interested in a summary report of the number of customers who seek relief from their Fiscal Year 2020-21 Sewer Service Charge. Mr. Bailey said there may not be many because SSCs are collected by the County via property tax bills. Member Nejedly agreed with Mr. Bailey's prediction but said he would also be interested in knowing if any customers seek SSC relief. COMMITTEE ACTION: Received the list and provided input to staff. 9. Future Scheduled Meetings Tuesday, July 21 , 2020 at 2:00 p.m. Tuesday, August 25, 2020 at 2:00 p.m. Tuesday, September 22, 2020 at 2:00 p.m. 10. Adjournment— at 2:43 p.m. * See attachment. July 2, 2020 Regular Board Meeting Agenda Packet- Page 68 of 69 Item 5.b. (Handout) Running Expense,Sewer Construction,Debt Service Fund Balances and Flows FY 2019-20 Projected Balance $76,831,117 $86,457,168 $76,607,168 $67,257,168 $58,147,168 $110,179,583 $101,704,583 $92,249,926 $81,049,926 $121,798,926 $109,823,926 $101,867,651 Actual Balance $76,060,241 $64,637,964 $80,627,283 $74,425,137 $60,810,506 $118,683,951 $109,368,521 $100,142,579 $91,540,765 $131,773,908 $127,180,396 $117,276,121 Projected Inflow $840,000 $24,028,808 $1,150,000 $1,150,000 $890,000 $62,782,415 $1,025,000 $950,000 $1,300,000 $53,749,000 $1,025,000 $6,229,500 Actual Inflow $1,405,721 $741,653 $25,691,394 $4,105,539 $2,196,269 $66,694,799 $527,939 $959,299 $634,523 $50,852,527 $1,275,454 $4,281,500 Projected Inflow Cumm. $840,000 $24,868,808 $26,018,808 $27,168,808 $28,058,808 $90,841,223 $91,866,223 $92,816,223 $94,116,223 $147,865,223 $148,890,223 $155,119,723 Actual Inflow Cumm. $1,405,721 $2,147,374 $27,838,768 $31,944,307 $34,140,576 $100,835,375 $101,363,314 $102,322,613 $102,957,136 $153,809,663 $155,085,117 $159,366,617 Projected Outflow $27,500,000 $14,402,757 $11,000,000 $10,500,000 $10,000,000 $10,750,000 $9,500,000 $10,404,658 $12,500,000 $13,000,000 $13,000,000 $14,185,775 Actual Outflow $28,836,597 $12,163,930 $9,871,805 $10,307,685 $15,810,900 $8,926,783 $9,843,369 $10,185,241 $9,236,337 $10,619,384 $5,868,966 $14,185,775 Projected Outflow Cumm. $27,500,000 $41,902,757 $52,902,757 $63,402,757 $73,402,757 $84,152,757 $93,652,757 $104,057,415 $116,557,415 $129,557,415 $142,557,415 $156,743,190 Actual Outflow Cumm. $28,836,597 $41,000,527 $50,872,332 $61,180,017 $76,990,917 $85,917,700 $95,761,069 $105,946,310 $115,182,647 $125,802,031 $131,670,997 $145,856,772 Cash&Investment Balances,Inflows&Outflows by Month $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 July August September October November December January February March April May June Projected Balance Actual Balance -Projected Inflow -Actual Inflow -Projected Outflow -Actual Outflow July 2, 2020 Regular Board Meeting Agenda Packet- Page 69 of 69