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Home My WebLink About13.b. Committee Minutes-Finance 01-26-21 Page 1 of 6 Item 13.b. CENTRALSAN SANITARYjdf A- hom CENTRAL CONTRA COSTA , . February 4, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARY OF THE DISTRICT SUBJECT: JANUARY 26, 2021 - FINANCE COMMITTEE - CHAIR PILECKI AND MEMBER MCGILL Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Minutes of 01-26-21 meeting February 4, 2021 Regular Board Meeting Agenda Packet- Page 99 of 104 Page 2 of 6 ,or76— I CENTRAL SAN CENTRAL • ■ • COSTA . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37 REGULAR MEETING OF THE BOARD OF DIRECTORS: TAD J PILECKI CENTRAL CONTRA COSTA President SANITARY DISTRICT DAVID R. WILLIAMS President Pro Tent FINANCE COMMITTEE BARBARA D.HOCKETT MARIAH N LA URITZEN MICHAEL R.MCGILL MINUTES PHONE: (925)228-9500 Tuesday, January 26, 2021 FAX: (925)372-0192 2:00 p.m. www.cetitralsan.org (All attendees participated via videoconference) Committee: Chair Tad Pilecki Member Mike McGill Staff. Roger S. Bailey, General Manager Katie Young, Secretary of the District Philip Leiber, Director of Finance and Administration Steve McDonald, Director of Operations Jean-Marc Petit, Director of Engineering and Technical Services Danea Gemmell, Planning and Development Services Division Manager Stephanie King, Purchasing and Materials Manager Edgar Lopez, Capital Projects Division Manager (left after Item 5.b.) Kevin Mizuno, Finance Manager Paul Seitz, Collection System Operations Division Manager Thomas Brightbill, Senior Engineer (left after Item 5.b.) Christopher Thomas, Finance Administrator (left after Item 4.a.) Shari Deutsch, Risk Management Administrator Bryan McGloin, Management Analyst Laci Kolc, Risk Management Specialist (left during Item 4.a.) Donna Anderson, Assistant to the Secretary of the District Amelia Berumen, Senior Administrative Technician (left after Item 4.a.) 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 February 4, 2021 Regular Board Meeting Agenda Packet- Page 100 of 104 Page 3 of 6 Finance Committee Minutes January 26, 2021 Page 2 both. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Pilecki called the meeting to order at 2:00 p.m. Member McGill announced that he must leave the meeting by 4:00 p.m. due to another commitment. Chair Pilecki announced that in the interest of time, Item 4.c. would be taken out of order, after Item 5.c., so the most time-sensitive items could be completed first. 3. Public Comments - None. 4. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred December 4, 2020 through January 14, 2021 Staff responded to questions posed in advance of the meeting by Chair Pilecki and during the meeting by Member McGill regarding the expenditures listing. Ultimately, the Committee expressed satisfaction with staff's responses and recommended Board approval; however, several follow-up items arose during the discussion as follows: Ability to Reconcile Numbers in the Expenditures Listing: Member McGill said that he was unable to tie some of the expenditure totals with the summary list by fund (page 3 of 96 in the agenda packet). Mr. Leiber noted that the Oracle ERP did not include functionality for retention payments, and several workarounds have been needed. Mr. Mizuno explained that staff was still working to tailor the reports generated by Oracle to address construction retention. He referred to the cover memo in the agenda packet which states, "In some cases, subtotals presented on the expenditure detail pages do not directly tie to the cover page due to the way the system- generated report presents checks with expenditures pertaining to more than one fund and construction progress payments with retention holds." Mr. Mizuno noted that amounts held in retention for construction projects are currently included in the expenditures listing, even though they have not yet been disbursed. Staff is working with Oracle so that future reports will not include retention amounts. Conversely, such retention amounts should be included once the funds are released toward the end of a project. Descriptions for Legal Fees: Several items on the expenditures detail indicated they were for retainer payments for both Meyers Nave and District Counsel Kent Alm. In some instances, the detail appeared to be incorrect February 4, 2021 Regular Board Meeting Agenda Packet- Page 101 of 104 Page 4 of 6 Finance Committee Minutes January 26, 2021 Page 3 because no retainers should be paid to Meyers Nave, only to Mr. Alm. Staff was asked to double check the labels for these expenditures on the current list and going forward. Sleeves for Ultraviolet (UV Tubes: Several large expenditures appear to have been made for sleeves that go over UV tubes used in the Filter Plant. Staff was asked to check with Plant Operations to verify the quantities noted. Expenditures for San Francisco (SF) Bay Regional Water Quality Control Board: In response to a question from Member McGill, Mr. Petit confirmed that the payment on page 17 of 72 on the check register related to a sampling program in which the District is taking part. Staff was asked to provide a brief memo clarifying what is paid annually to the SF Regional Water Quality Control Board, Bay Area Clean Water Agencies (BACWA), and San Francisco Estuary Institute (SFEI), including any permit fees for the treatment plant and collection system. This information will aid the Committee when reviewing future payments to these agencies. COMMITTEE ACTION: Recommended Board approval and requested additional information as noted above. b. Receive November 2020 Budget-to-Actual Financial Overview Mr. Mizuno summarized the material included with the agenda packet. A discussion ensued regarding the Sewer Construction Fund graph reflecting Fiscal Year 2020-21 spending and the different ways it could be interpreted. COMMITTEE ACTION: Recommended Board receipt. C. Review draft Position Paper to consider proposed changes to various sections of the District Code to confirm with external requirements, internal practices, and enable more efficient operations COMMITTEE ACTION: Due to time constraints, this item was postponed to a future meeting. d. Review draft Position Paper to approve updated administrative overhead and benefits rate of 177% for Fiscal Year 2021-22 Mr. Mizuno reviewed the information set forth in the agenda material, including the reasons for the reduction in the overhead rate, and the ways in which the rate is used. COMMITTEE ACTION: Recommended Board approval. February 4, 2021 Regular Board Meeting Agenda Packet- Page 102 of 104 Page 5 of 6 Finance Committee Minutes January 26, 2021 Page 4 5. Other Items a. Review Committee Charter as set forth in Board Policy No. BP 013 - Standing Committee Protocols, Guidelines and Charters Member McGill noted that the last revision to BP 013 was approved August 6, 2020. He asked what was included in that revision. Ms. Young said she would check and let the Committee know. Based on comments made earlier in the meeting during review of the expenditures listing, and the amount of time consumed reviewing the Committee's questions, Chair Pilecki suggested that the Scope section of the Committee Charter be augmented by adding the following guideline in parentheses to the existing bulleted item: • Review expenditures (to the extent possible, Committee Members are asked to provide their questions on expenditures in advance of the meeting) He continued by saying that the intent of this addition was to encourage Committee Members to provide questions to staff in advance so staff can have the answers ready at the meeting. Ms. Young said if that was the desire of the Committee, she would bring the policy to the Administration Committee for consideration and recommendation to the full Board. COMMITTEE ACTION: Reviewed the Charter, requested information on the most recent revision dated August 6, 2020, and proposed that an amendment to the Charter be presented to the Administration Committee for consideration and recommendation for Board approval. b. Review Risk Management Loss Control Report as of January 11, 2021 COMMITTEE ACTION: Received the report. C. Receive annual update on Strategic Risk Inventory / Enterprise Risk Management (ERM) Program Mr. Leiber and Ms. Deutsch began reviewing the presentation included with the agenda material. Due to time constraints, they could only cover the first half of the material, so the item was continued to the next meeting. February 4, 2021 Regular Board Meeting Agenda Packet- Page 103 of 104 Page 6 of 6 Finance Committee Minutes January 26, 2021 Page 5 [Subsequently, a special Finance Committee meeting was scheduled for February 3, 2021 to address this matter as well as item 4.c.] COMMITTEE ACTION: Due to time constraints, this update was continued to the next meeting. 6. Announcements a. Ms. Young announced that Donna Anderson would be retiring from Central San effective March 30, 2021. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items Ms. Young said she would work with the Committee Members to schedule a special Finance Committee meeting to consider Item 4.c. and to complete Item 4.d. COMMITTEE ACTION: Received the list and provided input to staff. 8. Future Scheduled Meetings Wednesday, February 3, 2021 at 9:00 a.m. (Special meeting scheduled to consider unfinished business from this meeting) Tuesday, February 23, 2021 at 2:00 p.m. Tuesday, March 23, 2021 at 2:00 p.m. Tuesday, April 27, 2021 at 2:00 p.m. 9. Adjournment— at 4:00 p.m. February 4, 2021 Regular Board Meeting Agenda Packet- Page 104 of 104