The URL can be used to link to this page

Home My WebLink About15.b. Committee Minutes-Finance 03-21-2023 Page 1 of 6 Item 15.b. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT April 6, 2023 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: MARCH 21, 2023 - FINANCE COMMITTEE - PRESIDENT HOCKETT AND MEMBER LAURITZEN Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Minutes of 03-21-23 meeting April 6, 2023 Regular Board Meeting Agenda Packet- Page 141 of 176 Page 2 of 6 r CENTRAL SAN CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF REGULAR MEETING OF THE BOARD OF DIRECTORS: BARBARA D.HOCKETT CENTRAL CONTRA COSTA President SANITARY DISTRICT MARIAHNLAURITZEN President Pro Tent FINANCE COMMITTEE MICHAEL R.MCGILL TAD J PILECKI DIVISION 3-VACANT MINUTES Tuesday, March 21, 2023 PHONE: (925)228-9500 FAX.- (925)372-0192 9:30 a.m. www.centralsan.org Committee: Chair Barbara Hockett Member Mariah Lauritzen Guest: James Ramsey, NFP (left after Item 4.a.) Nick Rosas, NFP (left after Item 4.a.) Hillis Haygood, MissionSquare (left after Item 4.a.) Staff- Roger S. Bailey, General Manager Katie Young, Secretary of the District Danea Gemmell, Provisional Director of Engineering and Technical Services Philip Leiber, Director of Finance and Administration Benjamin Johnson, Internal Auditor Kevin Mizuno, Finance Manager Olivia Ruiz, Accounting Supervisor Thomas Brightbill, Senior Engineer Christopher Thomas, Finance Administrator Shari Deutsch, Risk Management Administrator 1. Call Meeting to Order Chair Hockett called the meeting to order at 9:32 a.m. As requested by staff in advance of the meeting, Chair Hockett indicated Item 4.c. would be heard as the first order of business. 2. Public Comments None. April 6, 2023 Regular Board Meeting Agenda Packet- Page 142 of 176 Page 3 of 6 Finance Committee Minutes March 21, 2023 Page 2 3. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred February 10, 2023 through March 9, 2023 This item was heard immediately following Item 3.c. The Committee had no questions. COMMITTEE ACTION: Recommended Board approval. b. Receive Budget-to-Actual Expenditure overview through the month of February 2023 The Committee Members recommended Board receipt of the report. Immediately following this item, the next order of business heard was Item 4.a. COMMITTEE ACTION: Recommended Board receipt. C. Review draft Position Paper authorizing execution of new Administrative Services Agreements with MissionSquare Retirement, Central San's Deferred Compensation Plan recordkeeper for an additional five years This item was heard immediately following public comment. Mr. Mizuno reviewed the draft Position Paper included in the agenda materials. He advised that leading up to the new administrative services agreements with MissionSquare, over the past two years the Deferred Compensation Association Committee (DCAC) has been working to improve the Deferred Compensation Plan in various ways including. • Designing, evaluating, and implementing the Deferred Compensation Plan Board Policy (BP 047) specifying the differing powers and roles of Central San's Board of Directors, the General Manager, the DCAC, and the Plan Administrator as it relates to the Deferred Compensation Plan; and an Administrative Procedure (AP 047) outlining administrative rules and processes related to the internal administration of the Deferred Compensation Plan and its DCAC; • Soliciting, evaluating, and hiring an ERISA 3(21) Non-Discretionary Plan fiduciary advisor(NFP) to improve fiduciary oversight over the Deferred Compensation Plan; • Development and implementation of a robust Investment Policy Statement specifying authorized investment options to be included in April 6, 2023 Regular Board Meeting Agenda Packet- Page 143 of 176 Page 4 of 6 Finance Committee Minutes March 21, 2023 Page 3 the plan and nature, timing, and frequency on how investment compliance and performance is evaluated; • Designing, promoting, and rolling out a new core menu of plan investment options in accordance with best practices issued by the National Association of Government Defined Contribution Administrators (NAGDCA); and • Updating the recordkeeping platform to provide participants with the opportunity to receive ongoing technological advancements in the industry through an open architecture framework. Mr. Mizuno advised that the new administrative services agreements with Mission Square proposed for Board adoption covers the five-year timeframe of January 1, 2023 through December 31, 2027. Member Lauritzen expressed concern on a five-year contract and stated that she preferred a shorter agreement. Mr. Mizuno responded that five years is a standard for record keeping, and that the attractive fee considers the length of the agreement, and should the District see performance standards not being met, the District is able to give notice to end early. Mr. Haygood confirmed that the five-year contract locks in pricing and there is language provided in the contract that provides the District a clause to terminate the contract. There was discussion regarding the measurement of vendor performance data and Mr. Haygood advised that the data is gathered quarterly and measured on an annual basis and reviewed with the District; but, should the Board desire more frequent data updates, that is doable. COMMITTEE ACTION: Recommended Board approval. At this point, the agenda returned to the original agenda, beginning at Item 3.a. 4. Other Items a. Receive update on the in-house treasury function assessment directed by the Board of Directors on September 15, 2022 This item as heard immediately following Item 3.b. Mr. Mizuno provided a brief background of the presentation given at the September 15, 2022 Board meeting regarding in-house treasury and reviewed the direction the Board provided including the following.- Assess ollowing.Assess banking and investment management alternatives and return to the Board with a proposed alternative treasury structure,- April tructure,April 6, 2023 Regular Board Meeting Agenda Packet- Page 144 of 176 Page 5 of 6 Finance Committee Minutes March 21, 2023 Page 4 • Develop and present an internal controls risk assessment over the proposed "to be"treasury structure; • Develop and propose a draft banking/treasury policy, and • Develop an implementation plan Mr. Mizuno advised that following Board direction, staff reached out to several consultants and organizations to ascertain whether they have the skills, experience, and willingness to contract with Central San to assist with this endeavor. Organizations contacted include the Government Finance Officers Association (GFOA), Regional Government Services Authority (RGS), and a certified public accountant (CPA) firm. The GFOA was unresponsive to the requests of staff; however, quotes were obtained from RGS and Eide Bailly, a national CPA firm with a strong California municipal audit and consulting presence. Mr. Mizuno noted that staff would be able to complete this task in-house but would be stretched thin and that it was perceived the Board would appreciate an independent assessment. After reviewing the proposals, staff selected Eide Bailly for the project because the proposed implementation team included active CPAs. Additionally, the CPA firm is independent from and not associated with Central San's current external auditors, resumes for the team members on the project had experience with Oracle and treasury matters, and the firm had experience providing similar consulting services to other public agencies. Mr. Mizuno advised that as contract negotiation is still ongoing, with the project potentially commencing in April. Staff anticipates the four initial project deliverables outlined previously to be completed and presented to the Finance Committee by June 2023 and, with the project's current status and future milestones, it is anticipated that a full transition away from the County Treasury could most realistically be achievable by the start of the 2023-24 fiscal year(July 1, 2024). Mr. Leiber provided an update on potential changes to the current Board requirement to review expenditures and the legislative path enabling changes, Assembly Bill (AB) 759. It was noted that staff had engagement with the assembly local government committee and the outlook for the bill progressing is looking favorable. COMMITTEE ACTION: Received the update. April 6, 2023 Regular Board Meeting Agenda Packet- Page 145 of 176 Page 6 of 6 Finance Committee Minutes March 21, 2023 Page 5 b. Review Risk Management Loss Control Report as of March 6, 2023 Ms. Deutsch reviewed the loss control report provided with the agenda materials. She advised that regarding the landslide on Cedar Lane, staff was informed that the District would not receive Federal Emergency Managment Agency (FEMA) funds due to non-congreant sheltering. It was noted that the District has submitted two claims for COVID-19 expenses to FEMA which are currently under review. There was a discussion regarding potential litigation on the house slide in Orinda but that no legal move or claim has been made filled at this time. COMMITTEE ACTION: Received the report. 5. Announcements None. 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 a. Tuesday, April 25, 2023 at 9:30 a.m. Tuesday, May 9, 2023 at 9:30 a.m. (Budget Review) Tuesday, May 23, 2023 at 9:30 a.m. 8. Adjournment— at 10:23 a.m. April 6, 2023 Regular Board Meeting Agenda Packet- Page 146 of 176