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HomeMy WebLinkAboutFinance MINUTES 01-24-22Page 2 of 5 110ENTRAL SAN REGULAR MEETING OF THE BOARD OF DIRECTORS: DAVID R. WILLIAMS CENTRAL CONTRA COSTA President SANITARY DISTRICT BARBARAD.H°CKETT President Pro Tens FINANCE COMMITTEE MARIAHNLAURITZEN MICHAEL R. MCGILL TAD J PILECKI MINUTES PHONE: (925) 228-9500 Monday, January 24, 2022 FAX: (925) 372-0192 2:00 p.m. www.centralsan.org (All attendees participated via video conference) (:nmmittaa Chair Mike McGill Member David Williams 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 Gemell, Planning and Developmen Services Division Manager (left after Item 4.a.) Kevin Mizuno, Finance Manager Benjamin Johnson, Internal Auditor Shari Deutsch, Risk Management Administrator Olivia Ruiz, Accounting Supervisor Amelia Berumen, Assistant to the Secretary of the District 1. Notice This meeting was held virtually in accordance with the Brown Act provisions stipulated in Assembly Bill (AB) 361 and adopted by the Central San Board of Directors on January 13, 2022 via Resolution 2022-004. The agenda included instructions with options in which the public could participate in the meeting. 2. Call Meetina to Order Chair McGill called the meeting to order at 2:00 p.m. 3. Public Comments None. February 3, 2022 Regular Board Meeting Agenda Packet - Page 62 of 72 Page 3 of 5 Finance Committee Minutes January 24, 2022 Page 2 4. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred December 11, 2021 through January 13, 2022 For the benefit of the new Committee, Mr. Mizuno provided an overview of this agenda item and manners in which questions of certain expenditures can be brought forth for staff to address. Chair McGill added that the Committee's review of expenditures is worthwhile and some areas of past concern were addressed by staff. This was mainly during the new system implementation and corrections to reporting structure or helpful naming conventions have been reconciled. Staff responded to minimal questions and no further action was needed. COMMITTEE ACTION: Recommended Board approval. b. Receive the Financial Overview through the month of December 2021 Member Williams inquired about the year-to-date target shown on the second graph being considerably lower than the budget. Mr. Leiber responded that this particular fiscal year has differed. Normally the "target" trend line forecast would be at about 90% of budget. This year, there was a major course change due to the Solids Handling Facility Improvements Project; therefore, this year a spending adjustment was made to the target line to reflect this lower projected spending. It was noted that the Capital spending forecast is still under review. The budget adjustment made last August was limited to changes resulting from the pension paydown transaction, affecting the Operations and Maintenance and Debt Service budgets. More information will be presented during the Financial Planning Workshop in March. COMMITTEE ACTION: Recommended Board receipt. 5. Other Items a. Review Committee Charter as set forth in Board Policy No. BP 013 - Standing Committee Protocols, Guidelines and Charters The Committee reviewed the Charter and recommended the word "regulatory" be removed from the second bullet under the Scope section to instead reflect: "Ensure compliance with federal, state and public financing requirements. " Staff will make the change and bring forth to the Board for approval. COMMITTEE ACTION: Reviewed the Charter and provided input to staff. February 3, 2022 Regular Board Meeting Agenda Packet - Page 63 of 72 Page 4 of 5 Finance Committee Minutes January 24, 2022 Page 3 b. Review Risk Management Loss Control Report as of January 10, 2022 Ms. Deutsch reviewed the Loss Control Report and provided an overview of recent updates since the agenda posting, which included: • Overflows: Item No. 1 includes four separate claims which have now all been settled. The final checks will be issued next week. • Liability: Item No. 8, the claim had been tendered to the contractor and settled. It has since been closed at no cost to Central San. As it pertained to Liability Item No. 2, the claim made was denied as being untimely since it was due to an event in 2019; past the allowable timeframe to file a claim. Moreover, the claim was due to actions of a project contractor. It was explained that Mr. Bailey and Ms. Deutsch called the claimant regarding the claim denial and reasoning. Chair McGill noted the report stated a 2005 date and it was mentioned to be in 2019. Ms. Deutsch confirmed 2005 was an error and that all events of that claim were in 2019. Lastly, there was some discussion pertaining to the Central San's Property Losses section due to homeless encampments and ongoing issues. Ms. Deutsch mentioned that multiple District divisions have been collaborating to offer reasonable solutions for consideration. In the interim, the priority has been towards health and safety clean-ups of encampments where Sheriff personnel have assisted with site evictions. It was discussed that the "Triangle Property" may require a more robust type of fencing material that cannot be cut through as soon as it is replaced. The cost of a more substantial fence and any good -neighbor coordination may be better than the current alternative which may not be sustainable. Mr. Leiber added that he witnessed one of the encampments, which was substantial and resulted in an expensive cleanup. He noted that although the cleanup was extensive and staff used an available contractor, he was of the view that there is a more cost effective way to handle future clean-ups and staff may initiate a Request for Bids to acquire competitive pricing for future needs. COMMITTEE ACTION: Received the report. 6. Announcements None. February 3, 2022 Regular Board Meeting Agenda Packet - Page 64 of 72 Page 5 of 5 Finance Committee Minutes January 24, 2022 Page 4 7. Suaaestions for Future Aaenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list. 8. Future Scheduled Meetings Tuesday, February 22, 2022 at 2:00 p.m. Tuesday, March 22, 2022 at 2:00 p.m. Tuesday, April 19, 2022 at 2:00 p.m. 9. Adjournment — at 3:02 p.m. February 3, 2022 Regular Board Meeting Agenda Packet - Page 65 of 72