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Home My WebLink AboutFinance MINUTES 08-27-24Page 2 of 8 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, August 27, 2024 www.centralsan.org 2:30 p.m. rnmmittaa Chair Mariah Lauritzen Member Tad Pilecki Staff. - Katie Young, Secretary of the District Philip Leiber, Deputy GM — Administration Danea Gemmell, Planning and Development Services Division Manager (left during Item 4. a.) Edgar Lopez, Capital Projects Division Manager (left during Item 4.a.) Kevin Mizuno, Finance Manager Brennan Rogers, Accounting Supervisor (joined during Item 3.a.) Michelle Gonsalves, Accounting Supervisor Stephanie King, Contracts and Procurement Administrator Shari Deutsch, Risk Management Administrator Amal Lyon, Management Analyst (joined during Item 3.a.) Karen DeLong, Administrative Services Assistant Stacey Durocher, Administrative Services Assistant 1. Call Meeting to Order Chair Lauritzen called the meeting to order at 2:30 p.m. 2. Public Comments None. September 5, 2024 Regular Board Meeting Agenda Packet - Page 60 of 66 Page 3 of 8 Finance Committee Minutes August 23, 2024 Page 2 3. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures incurred July 12, 2024 through August 15, 2024 Staff responded to questions posed in advance of the meeting by Member Pilecki. All staff responses were to his satisfaction. Check #313088: Insiaht Public Sector. Inc. in the amount of $157.122.13 Mr. Leiber explained that the amount noted is the yearly cost for all of the District's Microsoft software product licensing, including office programs like Word, TEAMS and Excel, and programs such as MS Project and MS Exchange. Check 313089: Ironhouse Sanitary District in the amount of $2, 713.45 Mr. Leiber explained that this charge was for the annual dues to participate in the Western Recycled Water Coalition (previously known as the Bay Area Recycled Water Coalition) group. It's a partnership of water and wastewater agencies committed to developing recycled water as a resource. Check 313150: D & L Supply in the amount of $13,022.54 Mr. Leiber stated that there were two orders made on the same day and were not duplicative. An urgent request was received for casting and covers for the Pleasant Hill Sewer Renovation, Phase 11 project. The warehouse supply was insufficient to fill the request. The total purchase amount inclusive of taxes was close to the purchasing limit of the employee and was therefore split into two orders. Check 313165: Granicus LLC in the amount of $5,094.63 Mr. Leiber explained that Granicus is the District's new agenda management software provider, and the live cast encoder allows staff to record and livestream video of the Board meeting over the internet. Ms. Young further advised that this is the second encoder purchased by staff in order to have the ability to livestream a meeting in the multi- purpose room. Check 313240: Mizutani Environmental in the amount of $3.290 Member Pilecki asked if this firm was related to District employee Craig Mizutani. Mr. Mizuno confirmed that Courtney Mizutani is Mr. Mizutani's wife and is the owner of Mizutani Environmental. Mizutani Environmental September 5, 2024 Regular Board Meeting Agenda Packet - Page 61 of 66 Page 4 of 8 Finance Committee Minutes August 23, 2024 Page 3 has been working with the Environmental and Regulatory Compliance Division as a consultant on air -related regulatory work for several years. This information is disclosed on Mr. Mizutani's annual Form 700. Check 203116: JDH Corrosion Consultants (JDH) in the amount of $30,413.51 Mr. Leiber explained that JDH provided corrosion consulting services to evaluate and make recommendations for rehabilitation and replacement of maintenance access covers on the Pleasant Hill Sewer Renovation, Phase II project. JDH initially invoiced for work that was not complete and didn't resubmit a new invoice, therefore the payment was made when the scope of work was completed. Mr. Lopez updated the Committee after speaking with staff. JDH inspected 30 maintenance access covers and a pipeline crossing for corrosion near Crescent and Ellinwood on the project mentioned above. Check 203132: Diana Brown, Inspection fee refund in the amount of $50 Mr. Mizuno stated that both payments were issued from the wrong fund, as identified through a monthly reconciliation process, and were voided. A replacement check was issued on August 7, 2024 from the correct fund. Check 203152: Engineerinq Soil Repairs, Inc. (ESR) in the amount of $93, 455.44 Mr. Mizuno stated that ESR was intending to bill when the work was complete. However, due to the District's fiscal year end close, engineering staff contacted ESR and requested that they submit a progress payment. The invoice was received on July 19, 2024, and payment was issued on July 25, 2024. Procurement -Card (P-card) Expenditures: ER 000131331907 in the amount of $90.35: Mr. Mizuno explained that the description "inator hose" was a typo that occurred through the cardholder expense report submission process in Oracle. He stated that the purchase was actually for a water hose and nozzle. COMMITTEE ACTION: Reviewed and recommended Board approval. September 5, 2024 Regular Board Meeting Agenda Packet - Page 62 of 66 Page 5 of 8 Finance Committee Minutes August 23, 2024 Page 4 b. Receive Budget -to -Actual Expenditure overview through the month of June 2024 Mr. Mizuno provided an overview of the Fiscal Year (FY) 2023-24 Budget -to - Actual Expenditures for the Operations and Maintenance (O&M) and Sewer Construction Fund (SCF) through June 30, 2024. He noted that the numbers shown are unaudited as staff continues to work through the financial close and audit process. O&M: The total unaudited year-end expenditures through June 2024 were $86 million and were lower than the annual adjusted Budget of $91.4 million. A budget adjustment was adopted during the year following Board action to direct $500, 000 to the Self -Insurance Fund from the prior year favorable budget variance. It was noted that the O&M Fund is reporting current year favorable budget variance of approximately $5.4 million or 5.9 percent. This was a slight contract from the variance reported in the prior month of $5.7 million or eight percent. Mr. Mizuno also pointed out that the current year variance is slightly larger than the prior year-end variance of $3.6 million or 4.3 percent. Despite the increase in the year end variance from prior year to current year, the O&M spend target of 90 to 100 percent was still achieved. SCF: Mr. Mizuno highlighted that capital expenditures through June 2024 were $92.4 million reflecting a significant increase from May 2024 of $66.9 million or 38 percent. It was also pointed out that year-end capital spending is in line with the FY 2023-24 spend projections incorporated into the FY 2024-25 capital improvement budget development assumptions. Mr. Lopez stated there will be some adjustments made to the long-term Capital program projections particularly with the timing of the estimates. There was a discussion regarding the Oracle enterprise performance management system functionality enhancements being worked on to assist the project managers with estimating project spend not only through the current fiscal year, but also through the life of the project to provide more useful projection information. Mr. Leiber updated the Committee regarding the balance remaining of the favorable O&M variance. He stated that approximately $3.4 million was not allocated in the budgeting process and will be available for the Board to direct towards multiple uses including the rate stabilization fund. September 5, 2024 Regular Board Meeting Agenda Packet - Page 63 of 66 Page 6 of 8 Finance Committee Minutes August 23, 2024 Page 5 There was a brief discussion regarding the Capital program favorable fund variances staying within the Capital program. Mr. Mizuno stated that this is by default. During the pre -audit variance discussion there will be an opportunity for the Board to take action on alternative uses for those funds. COMMITTEE ACTION: Reviewed and recommended Board receipt. 4. Other Items a. Receive annual report on status of loans under Board Policy No. BP 001 — Employee Computer Purchase Assistance Program Mr. Mizuno provided an overview of the annual report for BP 001 — Employee Computer Purchase Assistance Program that was included in the agenda materials. He stated that as of June 30, 2024, the revolving loan fund had a total of $7, 603 in outstanding loans. As of the fiscal year ending on June 30, 2024, seven new loans totaling $11,016 were issued to employees demonstrating continued employee interest and utilization of this policy. The minimum loan amount is $750, and the maximum is $2500 with a limit of one loan per employee at one time. In response to Member Pilecki's question regarding the terms of the loan, Mr. Mizuno stated that the monthly payment is $100 and is split by pay period. Member Pilecki asked staff to include the payment terms on the next annual report. COMMITTEE ACTION: Received the report. *b. Review Risk Management Loss Control Report as of August 12, 2024 Ms. Deutsch provided an overview of the updated report provided at the meeting. She mentioned that the District prevailed in the Kappel matter and will be receiving reimbursement for legal fees. Ms. Deutsch also discussed prior open claims through August 12, 2024, as well as new claims occurring since the previous report. COMMITTEE ACTION: Received and provided input to staff. 5. Announcements Mr. Leiber announced that staff would like to defer the In-house Treasury transition project from October 1, 2024, to November 1, 2024 due to some additional needs uncovered during the process of configuring the enterprise resource planning system to accommodate this transition. September 5, 2024 Regular Board Meeting Agenda Packet - Page 64 of 66 Page 7 of 8 Finance Committee Minutes August 23, 2024 Page 6 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, September 17, 2024 at 2:30 p.m. Tuesday, October 29, 2024 at 2:30 p.m. Tuesday, November 19, 2024 at 2:30 p.m. 8. Adjournment — at 3:20 p.m. *Attachments September 5, 2024 Regular Board Meeting Agenda Packet - Page 65 of 66 CCCSD 2023-24 Loss Control Report Item 4.b. (Handout) New Incident Ongoing Incident OVERFLOWS 0 Prior FY 0 Litigated Status # ID# Loss DOL Other Party Address City Reserve Expenses Claim Incident Total Paid to / Ck # Type Paid * Paid ** Open 1 2025 SSO 8/6/24 Barry Lee 1142 Upper Happy Va Lafayette $ 100.00 $ 4,650.48 in queue Tracy Brog 1140 Upper Happy Va Lafayette $ 500.00 $ 3,933.46 $ 9,183.94 in queue Total - SSO I $ 600.00 $ 8,583.94 $ - I $ 9,183.94 OTHER LIABILITY CLAIMS Status # ID# Loss Type DOL Other Party Address City Reserve Expenses Paid * Claim Paid ** Incident Total Paid to / Ck # Open B 2021015 GL 12/14/20 A R Johnson (GAL) M73, 205 Alamo View Walnut Creek $ 25,000.00 $ $ $ 25,000.00 PI: In Discovery Open C 2021024 GL 2/1/17 EBMUD 17-29 Chapel Drive Lafayette $ 25,000.00 $ $ $ 25,000.00 2017+ slide, served 5/25 Open E 2023002 GL 2/1/22 Weldon's Xcompl 644 Vallecito Ln Walnut Creek $ 10,000.00 $ $ $ 10,000.00 Tendered to Contractor Open F 2023010 GL 9/30/22 Frederick Hagen Sycamore Vly Rd. Danville $ 25,000.00 $ $ $ 25,000.00 Bike Injury - Suit Filed Closed 1 2025001 GL 7/1/24 Brian Aiello 1310 El Curtola Blvd Lafayette $ - $ $ $ - Denied - Trunk / HHW Open 2 2025003 GL 7/3/24 AC Tenviro 265 Merced, Ave Merced $ 10,000.00 $ $ $ - Forklift Accident/ PD I Total - Liab I $ 95,000.00 I $ $ - I $ 95,000.00 PLUMBING REIMBURSEMENTS Status # ID# Loss DOL Other Party Address City Type Reserve Expenses Paid * Claim Paid ** Incident Total Paid to / Ck # I Total - PL I $ - I $ - I $ - I $ - AUTO INCIDENTS Status # ID# Loss DOL Other Party Location Veh# Reserve Expenses Loss Incident Total Paid to / Ck # Type Paid * Paid ** Closed 1 2025002 APD 7/5/24 Gonzlez Pool Mansonry 68 Camino Don Migue 278 $ $ 798.72 $ In house repair Progressive - Recovery $ $ - $ (798.72) $ - Subrogation Payment Open G 2024013 AL 2/27/24 Sergey Arutyunyan Diamond @ Willow P 309 $ 15,000.00 AF Rearend, BI/PD $ 6,203.71 $ 21,203.71 Subro Paid / 100186 Closed H 2O24014 AL 8/7/23 Michael Paszti 655 Glenside Dr Laf $ 700.00 $ 700.00 Fence Damage I Total - Auto I $ 15,700.00 I $ 798.72 I $ 5,404.99 I $ 21,903.71 CENTRAL SAN'S PROPERTY LOSSES Status # ID# Loss DOL Other Party Address City Type Reserve Expenses I Loss Cost Paid Incident Total Paid to / Ck # Total - Prop 1 $ - I $ Notes: Prior 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. 8127124 September 5, 2024 Regular Board Meeting Agenda Packet - Page 66 of 66