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Home My WebLink AboutFinance MINUTES 07-23-24Page 2 of 7 110ENTRAL SAN REGULAR MEETING OF THE BOARD OF DIRECTORS: MARIAHN LAURITZEN CENTRAL CONTRA COSTA President SANITARY DISTRICT MICHAEL R. MCGILL President Pro Tent FINANCE COMMITTEE BARBARA D. HOCKETT TAD J PILECKI FLORENCE T WEDINGTON MINUTES PHONE: (925) 228-9500 FAX.- (925) 372-0192 Tuesday, July 23, 2024 www.centralsan.org 2:30 p.m. Cnmmittee : Chair Mariah Lauritzen Member Tad Pilecki Staff. - Katie Young, Secretary of the District Greg Norby, Deputy GM — Engineering & Operations (joined during Item 3.a.) Philip Leiber, Deputy GM — Administration Benjamin Johnson, Internal Auditor/Diversity, Equity & Inclusion Officer Danea Gemmell, Planning and Development Services Division Manager Edgar Lopez, Capital Projects Division Manager (arrived during Item 3.a.) Geoffrey Michalczyk, Management Analyst Kevin Mizuno, Finance Manager Christopher Thomas, Accounting Supervisor (joined during Item 3.a.) Michelle Gonsalves, Accounting Supervisor Laci Kolc, Risk Management Specialist Karen DeLong, Administrative Services Assistant Stacey Durocher, Administrative Services Assistant Call Meeting to Order Chair Lauritzen called the meeting to order at 2:30 p.m. 2. Public Comments None. August 15, 2024 Regular Board Meeting Agenda Packet - Page 155 of 189 Page 3 of 7 Finance Committee Minutes July 23, 2024 Page 2 3. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred June 14, 2024 through July 11, 2024 The Committee had no questions. Procurement -Card (P-card) Expenditures: The Committee had the following questions: 1. Expense Report #000129175782, Page 69 of 90, Explosion Proof Lightinq in the amount of $3, 489.13: Member Pilecki inquired about the dollar amount paid for this item. Mr. Mizuno explained that the expense was for a light fixture that needed to be replaced in the Household Hazardous Waste Building (HHW). He stated that, as confirmed with the Plant Maintenance Division Manager, due to the hazardous environment of the flammables building area, a very specific and expensive Class 1, Division 1 rated explosion proof fixture was required per the record drawings of the original project. 2. Expense Report 000129118739, Page 72 of 90, Weights and Bike in the amount of $4,995.23: Member Pilecki inquired about the dollar amount paid for these items. Mr. Mizuno explained that the expense was for a full set of free weights and an exercise bike for staff at the Collections System Operations (CSO) Building. He further elaborated that exercise bike being replaced was over 12 years old and beyond repair. The Committee had no further questions. COMMITTEE ACTION: Reviewed and recommended Board approval. b. Review draft Position Paper to authorize the General Manager to execute an as -needed professional services agreement with Raftelis Financial Consultants, Inc. (Raftelis) for a five-year term in an amount not to exceed $300,000 Mr. Michalczyk provided an overview of the draft Position Paper included in the agenda materials. He stated that Raftelis has provided financial consulting services to Central San since 2014 and is very familiar with Central San's financial operations. An updated as -needed agreement is essential to retain Raftelis in order to assist the District in meeting deadlines August 15, 2024 Regular Board Meeting Agenda Packet - Page 156 of 189 Page 4 of 7 Finance Committee Minutes July 23, 2024 Page 3 for Proposition 218 notification of the rate adoption for FY 2024-25, Nutrients and other significant financial planning events. Ms. Gemmell stated that staff discussed the use of an as -needed agreement rather than issuing a Request for Proposal (RFP) with legal counsel. Legal counsel was comfortable with staffs approach to allow for greater flexibility due to the complexity and time constraints with the upcoming financial projects. In response to Member Pilecki's inquiry regarding the last time Raftelis submitted a proposal to the District, Ms. Gemmell replied it was in 2019. (Staff correction: Raftelis was utilized for the 2019 rate setting process, however, follow up research indicates that the agreement was approved in October 2018.) Mr. Leiber also explained that Raftelis has built a very elaborate rates and planning model for the District and it is important to have them assist as -needed to maintain and revise the model, and advise on other developing issues. Ms. Gemmell stated that Raftelis also provides quality assurance for review of cost of service studies and rate setting. Member Pilecki expressed his concern about the RFP process being done every five years. He suggested a one-year agreement then advertising an RFP for another five years. Chair Lauritzen asked what is considered a good timeframe for the RFP process. Mr. Leiber stated that five years is good practice, and he was not suggesting that it be changed, however, there are instances when staying with the same vendor is beneficial to the District. Chair Lauritzen recommended adding additional options for the Board to consider. Member Pilecki suggested adding two options: 1) a five-year as - needed agreement, and 2) a one-year agreement and an RFP for another five years. COMMITTEE ACTION: Reviewed and provided input to staff for Board consideration. C. Review draft Position Paper to approve proposed Resolution 2024-XXX authorizing investment of monies in the Local Agency Investment Fund (LAIF), and removing the delegation of authority with the Contra Costa County Treasurer's office and establishing specified Central San staff as authorized signers Mr. Mizuno provided an overview of the draft Position Paper included in the agenda materials. He stated that Central San currently has a LAIF account with the State of California which is a managed investment pool allowing for up to $75 million to be invested with next -day liquidity guaranteed. However, the authorized signature authority was delegated by Central San to the August 15, 2024 Regular Board Meeting Agenda Packet - Page 157 of 189 Page 5 of 7 Finance Committee Minutes July 23, 2024 Page 4 Contra Costa County Treasurer's Office long ago, necessary while participating as a voluntary pooled participant in the County Treasury pool. Mr. Mizuno explained to the Committee that one of the processes to be updated for the in-house treasury function will be to update the LAIF authorized signers listing and remove the delegation of authority to the County. The proposed signatories will include the General Manager (CEO), the Deputy General Manager of Administration (Treasurer), and the Finance Manager (Deputy Treasurer). The attached proposed Resolution will return the administrative responsibility to Central San. He also explained that certain staff members may be authorized by an aforementioned signatory to perform ordinary business such as making deposits and withdrawals to/from Central San's bank account. In response to Member Pilecki's question regarding adding a fourth signatory, Mr. Leiber clarified that the signatories are not necessary for staff to perform the day-to-day operations and would only apply when significant account changes were needed. Also, only two signatures from the three authorized signatories are typically required to execute documents with LAIF. In response to Chair Lauritzen's question regarding the completion of the In- house Treasury transition and whether this was the last step, Mr. Leiber said there were a few tasks left to do. He also informed the Committee that the original implementation date has been changed from September to October due to the Oracle enterprise resource planning (ERP) system modifications/implementation timeline taking slightly longer than initially planned. COMMITTEE ACTION: Reviewed and recommended Board approval. 4. Other Items *a. Review Risk Management Loss Control Report as of July 9, 2024 Ms. Kolc provided an overview of the report included in the agenda materials. She stated that the Loss Control Report has been updated since it was posted in the agenda with one new property damage claim of a vehicle at Household Hazardous Waste (HHW). COMMITTEE ACTION: Received the report. 5. Announcements None. August 15, 2024 Regular Board Meeting Agenda Packet - Page 158 of 189 Page 6 of 7 Finance Committee Minutes July 23, 2024 Page 5 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items None. COMMITTEE ACTION: Received the list and provided input to staff. 7. Future Scheduled Meetings Tuesday, August 27, 2024 at 2:30 p.m. Tuesday, September 17, 2024 at 2:30 p.m. Tuesday, October 29, 2024 at 2:30 p.m. 8. Adjournment — at 2:55 p.m. *Attachment August 15, 2024 Regular Board Meeting Agenda Packet - Page 159 of 189 New Incident OVERFLOWS CCCSD 2023-24 Loss Control Report Ongoing Incident Prior FY �� Litigated Item 4.a. (Handout) Status # ID# Loss DOL Other Party Address City Tye Reserve Expenses Paid' Claim Paid" Incident Total Paid to I Ck # Total - SSO I $ $ Ls I $ - OTHER LIABILITY CLAIMS Status # ID# Loss Type DOL Other Party Address City Reserve Expenses Paid' Claim Paid " Incident Total Paid to I Ck # Pending A 2019014 GL 7126/18 Jane Kappel 25 Arlene Lane Walnut Creek S - $ 6,000.00 $ $ 6,000.00 $ 25,000.00 Inverse -Under Submission PI: In Discovery Open B 2021015 GL 12/14/20 A R Johnson (GAL) M73, 205 Alamo View Walnut Creek $ 25,000.00 $ $ Open C 2021024 GL 2/1117 EBMUD 17-29 Chapel Drive Lafayette $ 25,000.00 $ $ $ 25,000.00 2017+slide, served 5/25 Open Open E F 2023002 2023010 GL GL 2/1/22 9130122 Weldon's Xcompl Frederick Hagen 644 Vallecito Ln Sycamore Vly Rd. Walnut Creek Danville $ 10.000.00 $ $ - $ 10,000.001 Tendered to Contractor $ 25,000.00 $ $ - $ 25,000.00 Bike Injury - Suit Filed Open 1 2024001 GL 7/1/24 Brian Aiello PLUMBING REIMBURSEMENTS Status # ID# Loss-_ DOL Other Party AUTO INCIDENTS 1310 EI Curtola Blvd Lafayette Is Total - Liab $ Address City Total - PL $ s - $ $ - 85,000.00 _ $ 6,000.00 I $ - $ 91,000.0 Reserve I Expenses Claim Incident Total Paid' Paid " Alleges PD to car at HHW Paid to I Ck # Status # ID# Loss DOL Other Party Location Veh# Tv a Reserve Expenses Loss Paid' Paid" Incident Total Paid to I Ck # Total - Auto $ $ $ $ CENTRAL SAN'S PROPERTY LOSSES Status # ID# Loss DOL Other Party Address City Type Reserve Expenses Paid' Loss Cost Incident Total Paid to I Ck # Total -Prop $ - $ $ $ Notes: Pnor year closed claims have been removed from report. Prior year active claims show a letter in the # column to distinguish them from current year claims. 7119124 August 15, 2024 Regular Board Meeting Agenda Packet - Page 160 of 189