HomeMy WebLinkAbout14.b. Committee Minutes-Finance 03-19-2024Item 14.b.
A pril 4, 2024
T O: HO NO R A B L E B O A R D O F D I R E C TO R S
F RO M :K AT I E YO UNG, S E C R E TA RY O F T HE D I S T R I C T
S UB J E C T: MA R C H 19, 2024 - F I NA NC E C O MMI T T E E - P R E S I D E NT L A UR I T Z E N A ND
ME MB E R P I L E C K I
Attached are minutes of the above C ommittee meeting.
AT TAC HM E NT S :
D escription
1. F inance C ommittee Minutes 03-19-24
April 4, 2024 Special Board Meeting Agenda Packet - Page 93 of 97
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REGULAR MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
FINANCE COMMITTEE
M I N U T E S
Tuesday, March 19, 2024
2:30 p.m.
Committee:
Chair Mariah Lauritzen
Member Tad Pilecki
Staff:
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Philip Leiber, Deputy General Manager – Administration
Danea Gemmell, Planning and Development Services Division Manager
Edgar Lopez, Capital Projects Division Manager (arrived during Item 3.b.)
Kevin Mizuno, Finance Manager
Shari Deutsch, Risk Management Administrator
Karen DeLong, Administrative Services Assistant
Stacey Durocher, Administrative Services Assistant
1. Call Meeting to Order
Chair Lauritzen called the meeting to order at 2:33 p.m.
2. Public Comments
None.
BOARD OF DIRECTORS:
MARIAH N. LAURITZEN
President
MICHAEL R. MCGILL
President Pro Tem
BARBARA D. HOCKETT
TAD J. PILECKI
FLORENCE T. WEDINGTON
PHONE: (925) 228-9500
FAX: (925) 372-0192
www.centralsan.org
April 4, 2024 Special Board Meeting Agenda Packet - Page 94 of 97
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Finance Committee Minutes
March 19, 2024
Page 2
3. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures incurred February 16,
2024, through March 7, 2024
Member Pilecki asked staff to check on the legal requirements to publish
information pertaining to wage garnishments. Chair Lauritzen requested staff
to exclude the excess information unless there is a legal requirement to
leave it in emphasizing while this information is publicly available, that it
should not be published if not mandatory.
The Committee had no further questions.
COMMITTEE ACTION: Reviewed and Recommended Board approval.
b. Receive Budget-to-Actual Expenditure overview through the month of
February 2024
Mr. Mizuno provided an overview of the presentation included in the agenda
materials.
Operations and Maintenance Fund (O&M)
Total expenditures for the O&M Fund were $55.8 million through February
2024, which was lower than the year-to-date budget of $60.1 million resulting
in a favorable variance of $4.3 million, or 7.7 percent. The total expenditures
showed a minimal increase compared to the budget amount but could be
related to the timing of invoices. It is anticipated that the variance will tighten
and ultimately be under five percent (the targeted variance) by the end of the
fiscal year. The largest contributor was the salaries and wages expenditure
line attributable to the vacancy rate being higher than anticipated/budgeted
in the current fiscal year with the budget assuming a three percent vacancy
factor and the actual vacancy rate being 6.7 percent as of the end of
February.
Member Pilecki expressed concern regarding the increase in the vacancy
factor and asked whether it was due to difficulties with recruiting for positions
or whether it was a timing issue. Mr. Leiber stated that there could be some
issues with recruitment for some positions, but no general conclusions had
yet been drawn.
In response to Mr. Bailey’s question regarding the vacancy rate, Mr. Mizuno
stated the number provided was based on a year-to-date percentage.
April 4, 2024 Special Board Meeting Agenda Packet - Page 95 of 97
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Finance Committee Minutes
March 19, 2024
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Sewer Construction Fund (SCF)
The total capital project expenditures for SCF through February 2024 were
$43.6 million as compared to the target of $71.2 million.
In response to Member Pilecki’s question regarding the progress on
developing a way to show more realistic numbers that account for delays
and supply chain issues, Mr. Bailey stated that staff is working on it and is
having difficulties with it mostly due to the Solids Handling project. Member
Pilecki expressed concern about setting rates based on targeted projections
that are not being met.
There was some discussion regarding the gap between the target projection
and the actual amount spent to date.
Chair Lauritzen asked what the pros and cons would be to ask staff to collect
more frequent capital spend projections from capital project staff in order to
provide more accurate projections. Mr. Lopez stated updates are being done
on a quarterly basis, and the projection will not reach the target in the current
fiscal year. Mr. Bailey stated that a target is set for the year and whether it is
met or not, it remains the same. However, the curve should project how
much will be spent by the end of the year and be relative to the target that
has been set. Committee members agreed it is a priority for the gap to
decrease.
Committee members requested staff update the monthly overview
spreadsheets to extend the actual line to show projected spend through the
end of the year. Staff responded that this could be accomplished using the
new Oracle EPM system and that the projection would be distinguished from
the actuals using a dotted line approach. Staff anticipates this can be
implemented for the March budget-to-actual capital expenditure overview.
COMMITTEE ACTION: Reviewed, provided input to staff and
recommended Board receipt.
4. Other Items
a. Review Risk Management Loss Control Report as of March 5, 2024
Ms. Deutsch provided an overview of the report included in the agenda
materials. She mentioned there was one minor external overflow. Member
Pilecki asked what caused the overflow. Ms. Deutsch stated that an overflow
protection device (OPD) popped but did not cause any damage.
Ms. Deutsch advised that Jury selection starts March 21, 2024 for the Kappel
litigation.
April 4, 2024 Special Board Meeting Agenda Packet - Page 96 of 97
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Finance Committee Minutes
March 19, 2024
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Ms. Deutsch discussed a claim that Central San received but was advised
that it was rejected because it did not meet the criteria under the
Government Code. Once the claim is resubmitted correctly, it will be added
to the log.
The Committee had no questions.
COMMITTEE ACTION: Reviewed 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
As mentioned in Item 3.b. Member Pilecki requested a report on the
projection to include the dotted line in the Month-Actual Expenditures.
COMMITTEE ACTION: Received the list and provided suggestions for
future agenda items.
7. Future Scheduled Meetings
Tuesday, April 16, 2024 at 2:30 p.m.
Tuesday, May 14, 2024 at 2:30 p.m. (Budget Review)
Tuesday, May 21, 2024 at 2:30 p.m.
8. Adjournment – at 3:03 p.m.
April 4, 2024 Special Board Meeting Agenda Packet - Page 97 of 97
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