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HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 10052015 - Finance Cte Agenda Pkt       FINANCE COMMITTEE October 5, 2015 10:30 A.M. 651 Pine Street, Room 101, Martinez Supervisor Mary N. Piepho, Chair Supervisor Federal D. Glover, Vice Chair Agenda Items: Items may be taken out of order based on the business of the day and preference of the Committee         1.Introductions   2.Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to three minutes).   3. CONSIDER approving the Record of Action for the June 1, 2015, Finance Committee meeting (Lisa Driscoll, County Finance Director)   4. CONSIDER accepting the Quarterly Capital Projects Report (Brian Balbas, Deputy Public Works Director)   5. CONSIDER Countywide Single Audit for the Fiscal Year Ending June 30, 2014 (Lisa Driscoll, County Finance Director)   6.The next meeting is currently scheduled for November 2, 2015 at 10:30 AM.   7.Adjourn   The Finance Committee will provide reasonable accommodations for persons with disabilities planning to attend Finance Committee meetings. Contact the staff person listed below at least 72 hours before the meeting. Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the County to a majority of members of the Finance Committee less than 96 hours prior to that meeting are available for public inspection at 651 Pine Street, 10th floor, during normal business hours. Public comment may be submitted via electronic mail on agenda items at least one full work day prior to the published meeting time. For Additional Information Contact: Lisa Driscoll, Committee Staff Phone (925) 335-1021, Fax (925) 646-1353 lisa.driscoll@cao.cccounty.us FINANCE COMMITTEE 3. Meeting Date:10/05/2015   Subject:Record of Action for June 1, 2015 Finance Committe Meeting Submitted For: FINANCE COMMITTEE,  Department:County Administrator Referral No.: N/A   Referral Name: Record of Action  Presenter: Lisa Driscoll, County Finance Director Contact: Lisa Driscoll, County Finance Director (925) 335-1023 Referral History: County Ordinance requires that each County body keep a record of its meetings. Though the record need not be verbatim, it must accurately reflect the agenda and the discussions made in the meetings. Referral Update: Attached for the Committee's consideration is the Record of Action for its June 1, 2015 meeting. Recommendation(s)/Next Step(s): Staff recommends approval of the Record of Action for the June 1, 2015 meeting. Fiscal Impact (if any): No fiscal impact. Attachments Draft Record of Action - June 2015 FINANCE COMMITTEE 4. Meeting Date:10/05/2015   Subject:QUARTERLY CAPITAL PROJECTS REPORT Submitted For: Julia R. Bueren, Public Works Director/Chief Engineer  Department:Public Works Referral No.: 1/6/2009 SD.2   Referral Name: Quarterly Capital Projects  Presenter: Brian Balbas, Deputy Public Works Director Contact: Brian Balbas (925) 313-2284 Referral History: On January 6, 2009, the Board of Supervisors approved recommendations for Board Member appointments to local, regional and statewide boards, committees and commissions for the 2009 calendar year. One of the adopted recommendations was to combine the Capital Facilities Committee with the Finance Committee. On February 2, 2009, the Finance Committee met and planned committee meetings and schedules for the coming year. One of the recommendations was for the Finance Committee to receive regular capital facility update reports. The first report was presented to Finance on March 4, 2009 by the Director of General Services, Mike Lango. The Committee reviewed the initial report and requested that additional financing and appropriation information be added to make the report more meaningful. The final report format was accepted at the April 6, 2009 meeting and staff was directed to include on future Finance Committee agendas. Reports were submitted at each Finance Committee meeting through December 2010. Beginning in 2011, the Finance Committee requested that Capital Facility Reports be reviewed quarterly. Quarterly review of Capital Facility Reports is the current practice. Referral Update: Quarterly update. Recommendation(s)/Next Step(s): Accept attached Capital Projects Report. Attachments Quarterly Capital Projects Report - August 28, 2015 CAPITAL PROJECTS REPORT - FINANCE COMMITTEE SUMMARY PAGE 9/28/2015 Funding Source Projects PROJECT SIZE Projects AB109 2 7 Airport Enterprise Fund 0 between $100,001 - $250,000 4 Capital Facilities Fund - Sheriff's 0 between $250,001 - $500,000 8 CCFPD Capital Outlay Fund 0 between $500,001 - $1,000,000 8 CSA R-9 1 Projects over $1,000,001 19 Cal-ID RAN Fund 0 To be determined 7 DCD/Redevelopment 0 53 EHS Administrative Budget 0 Energy Fund 1 15 NEW PROJECTS since last report:PROJECT VALUE Fire Protection Fund 1 10,000$ General Fund 12 TBD General Fund - EHS 6 450,000$ Grant or Bond Funds 1 TBD Health Services Capital Budget 0 TBD 1 Hospital Enterprise Fund 22 8,100,000$ 2 Land Development Fund 1 2,145,000$ 3 Mental Health General Fund 0 1,400,000$ 4 Park Dedication Fees 2 1,250,000$ 5 PG&E On Bill Financing Loan 0 100,000$ 6 Probation 0 50,000$ 7 Measure WW 2 TBD School District 0 TBD Sheriff's Administrative Budget 0 6,000,000$ Stormwater Utility Assessment #17 (PWD)1 1,100,000$ Treasurer-Tax Collector's Budget 0 20,605,000$ 8 COMPLETED PROJECTS since last report: PROJECT VALUE FUNDED PROJECTS :52 $ 180,970,500 Site Improvements at Fire Station #69, 4640 Appian Way, El Sobrante 400,000$ 1,020,000$ NON-FUNDED PROJECTS:1 $ 6,000,000 350,000$ 320,000$ TOTAL PROJECTS:53 $ 186,970,500 700,000$ 60,000$ 55,000$ Install Wheelchair Lifts/Ramps, 6401 Stockton Avenue, El Cerrito 250,000$ 3,155,000$ Job Order Contracting, Countywide Refurbish IPID Perimeter Detection System, 5555 Giant Highway, Richmond TOTAL VALUE OF COMPLETED PROJECTS: Estimate for Remodeling for HSD, 2047 Arnold Industrial Way, Ste. D, Concord Estimate for Family Practice Clinic Expansion, 2311 Loveridge Road, Pitts. TOTAL VALUE OF NEW PROJECTS: T-Bar Ceiling for Kitchen/Cafeteria, 2500 Alhambra Avenue, Martinez Remodeling 2nd Flr for HSD Information Technology, 40 Muir Road, Martinez Installation of Scrub Dispensers, 2500 Alhambra Avenue, Martinez Estimate to Provide Additional Office Space, 900 Ward Street, Martinez Upgrade HVAC, 40 Douglas Drive, Martinez Redesign Lobby Area, 400 Ellinwood Way, Pleasant Hill Redesign Lobby Area, 4545 Delta Fair Blvd., Antioch Estimate to Increase Parking Capacity, 2500 Alhambra Avenue, Martinez Est. to Convert G Ward Basement to Office Space, 2500 Alhambra Ave., Mtz. under $100,000 - $100,000 TOTAL PROJECTS: Training Facility, 2600 Stanwell Drive, Concord Remodeling of the 1st Floor for EHSD, 40 Douglas Drive, Martinez Central Mail Unit for EHSD, 2600 Stanwell Drive, Concord New Generator for HSD and Sheriff, 2530 Arnold Drive, Martinez Remodeling at the Brentwood Health Center, 171 Sand Creek Road, Brentwood Replace Drop Ceiling in Pharmacy, 2500 Alhambra Avenue, Martinez Estimate for Survey of all Structures, 2500 Alhambra Avenue, Martinez Installation of Flag Pole, 900 Ward Street, Martinez CAPITAL PROJECTS REPORT - FINANCE COMMITTEE Page 2 of 5 9/28/2015 Project Name Address Phase % Proj. Comp Est. Proj. Compl. Date Estimated Proj. Budget Funding Source Comments Conservation & Development 1 Remodeling 40 Muir - Phase 2 40 Muir Road, Martinez Design Development 30%8/1/2016 $1,000,000 Land Development Fund Contra Costa Fire District 2 Estimate for Modular Quarters for Firefighters 13928 San Pablo Avenue, San Pablo Construction Documents 25%TBD $900,000 Fire Protection Fund County Administrator 3 Renovations and Remodeling at the County Finance Building (FLIP)625 Court Street, Martinez Construction 50%5/15/2016 $9,800,000 General Fund 4 Demolition of the Old Detention Facility 650 Pine Street, Martinez Feasibility/CEQA 10%8/31/2016 $1,100,000 General Fund District Attorney 5 Installation of Flag Pole 900 Ward Street, Martinez Construction 40%10/30/2015 $10,000 General Fund 6 Estimate to Convert Law Library and 4th Floor Patio into Additional Office Space 900 Ward Street, Martinez Feasibility 0%TBD TBD General Fund Employment & Human Services 7 Space Planning 40 Douglas Drive, Martinez Design Development 20%3/15/2016 $185,000 General Fund 8 Remodeling for Expanding Call Center 1650 Cavallo Road, Antioch Feasibility 50%12/30/2015 $100,000 General Fund 9 Chiller Replacement 4545 Delta Fair Blvd., Antioch Construction Documents 50%3/1/2016 $450,000 General Fund 10 Upgrade HVAC 40 Douglas Drive, Martinez Design Development 10%6/1/2016 $450,000 General Fund 11 Redesign Lobby Area 400 Ellinwood Way Pleasant Hill Feasibility 10%TBD TBD General Fund 12 Redesign Lobby Area 4545 Delta Fair Blvd., Antioch Feasibility 10%TBD TBD General Fund CAPITAL PROJECTS REPORT - FINANCE COMMITTEE Page 3 of 5 9/28/2015 Project Name Address Phase % Proj. Comp Est. Proj. Compl. Date Estimated Proj. Budget Funding Source Comments Health Services 13 Kitchen Boiler Replacement 2500 Alhambra Avenue, Martinez Construction 60%12/30/2016 $1,950,000 Hospital Enterprise Fund 14 Emergency and Imaging Department Expansion 2500 Alhambra Avenue, Martinez Bidding 60%8/1/2016 $4,000,000 Hospital Enterprise Fund 15 Remodel Ste 350 2530 Arnold Drive, Martinez Construction 55%1/31/2016 $500,000 Hospital Enterprise Fund 16 Emergency Electrial Outlets 2500 Alhambra Avenue, Martinez Construction 50%12/15/2016 $150,000 Hospital Enterprise Fund 17 Security Upgrades at 5A, 5B, and 5C 2500 Alhambra Avenue, Martinez Construction Documents 45%6/15/2016 $300,000 Hospital Enterprise Fund 18 Install Card Access to 3rd, 4th, & 5th Floor Stairwells 2500 Alhambra Avenue, Martinez Construction 50%1/1/2016 $100,000 Hospital Enterprise Fund 19 Antioch Children's Mental Health & Outpatient Health Center 2335 Country Hills Drive, Antioch Construction 50%12/1/2015 $15,000,000 Hospital Enterprise Fund Leased/Developer Built 20 Renovate Monument Signs 2500 Alhambra Avenue, Martinez Feasibility 65%11/1/2015 $75,000 Hospital Enterprise Fund 21 Install Rigid Ventilation Ducts 2500 Alhambra Avenue, Martinez Feasibility 0%9/30/2016 TBD Hospital Enterprise Fund 22 Sound Proof Exam Room 25 Allen Street, Martinez Construction 30%12/30/2015 $60,000 Hospital Enterprise Fund 23 Remodeling of Suite 320 595 Center Avenue, Martinez Feasibility 0%TBD TBD Hospital Enterprise Fund 24 West County Health Center Expansion 13601 San Pablo Avenue, San Pablo Feasibility 10%12/31/2018 $14,000,000 Hospital Enterprise Fund 25 Estimate for the Renovation of 4D 2500 Alhambra Avenue, Martinez Feasibility 10%10/30/2015 $4,000,000 Hospital Enterprise Fund 26 Estimate to Redesign the Existing Eligibility Building 2500 Alhambra Avenue, Martinez Feasibility 75%6/30/2016 $550,000 Hospital Enterprise Fund 27 Estimate for Family Practice Clinic Expansion 2311 Loveridge Road, Pittsburg Schematic Design 10%12/30/2016 $2,145,000 Hospital Enterprise Fund 28 Remodeling of the 2nd Floor for HSD Information Technology 40 Muir Road, Martinez Design Development 25%8/1/2016 $1,400,000 Hospital Enterprise Fund 29 Remodeling at the Brentwood Health Center 171 Sand Creek Road, Brentwood Design Development 20%6/1/2016 $1,250,000 Hospital Enterprise Fund 30 T-Bar Ceiling for Kitchen/Cafeteria 2500 Alhambra Avenue, Martinez Construction Documents 50%6/1/2016 $100,000 Hospital Enterprise Fund CAPITAL PROJECTS REPORT - FINANCE COMMITTEE Page 4 of 5 9/28/2015 Project Name Address Phase % Proj. Comp Est. Proj. Compl. Date Estimated Proj. Budget Funding Source Comments 31 Replace Drop Ceiling in Pharmacy Medication Mixing Room 2500 Alhambra Avenue, Martinez Feasibility 0%TBD $50,000 Hospital Enterprise Fund 32 Estimate for Survey of all Structures at the CCRMC Campus 2500 Alhambra Avenue, Martinez Feasibility 0%TBD TBD Hospital Enterprise Fund 33 Estimate to Convert G Ward Basement to Office Space 2500 Alhambra Avenue, Martinez Feasibility 0%TBD TBD Hospital Enterprise Fund 34 Estimate to Increase Parking Capacity 2500 Alhambra Avenue, Martinez Feasibility 10%TBD $8,100,000 Hospital Enterprise Fund 35 Relocation of Richmond Health Center, Metal Health, WIC, and other Programs TBD Advisory Capacity 0%6/1/2017 $2,000,000 General Fund Public Works 36 Tree Restoration at WCDF 5555 Giant Highway, Richmond Maintenance 99%10/15/2016 $425,000 Park Dedication Fees 37 Solar Systems at Various Sites (Regional Renewable Energy Procurement) Martinez: 1960/1980 Muir, 50/202/255 Glacier, San Pablo: 13601 San Pablo Ave Construction 90%11/1/2015 $6,500,000 Energy Fund 38 North Richmond Pump Station Diversion North Richmond Construction 70%12/31/2015 $1,000,000 Stormwater Utility Assessment #17 (PWD) 39 Improvements at Lefty Gomez Ballfield 470 Parker Avenue, Rodeo Award 45%3/31/2016 $570,000 Measure WW 40 Improvements at Livorna Park Livorna Road & Miranda Way, Alamo Construction Documents 45%12/31/2016 $818,000 Measure WW 41 Landscaping Project Adjacent to El Sobrante Library West County Construction Documents 35%8/30/2016 $642,000 CSA R-9 42 Landscaping at Hookston Road 230 Hookston Road, Pleasant Hill Design Development 60%12/31/2016 $686,000 Park Dedication Fees 43 Job Order Contracting Countywide Bidding 10%1/15/2018 $6,000,000 TBD (Based on projects awarded) Sheriff Coroner 44 Application Development for Detention Facility Expansion 5555 Giant Highway, Richmond Feasibility 5%6/30/2020 $90,000,000 Grant 45 Upgrade Detention Electronics System at West County Detention Facility 5555 Giant Hwy, Richmond Bidding 50%10/1/2016 $2,900,000 AB 109 46 Inmate Rooms Wall/Ceiling Finish Upgrades (FLIP)5555 Giant Highway, Richmond Bidding 50%10/1/2016 $899,000 General Fund 47 Built-up Roofing Replacement (FLIP)2099 Arnold Industrial Way, Concord Construction 55%12/31/2015 $450,000 General Fund CAPITAL PROJECTS REPORT - FINANCE COMMITTEE Page 5 of 5 9/28/2015 Project Name Address Phase % Proj. Comp Est. Proj. Compl. Date Estimated Proj. Budget Funding Source Comments 48 Replace Fire Alarm System (FLIP)12000 Marsh Creek Road Construction Documents 45%5/15/2016 $240,000 General Fund 49 Remodeling of the Visitation Center 5555 Giant Highway, Richmond Bidding 50%10/1/2016 $300,000 AB109 50 Replace Two Boilers at the Martinez Detention Facility 1000 Ward Street, Martinez Construction Documents 50%10/1/2016 $2,900,000 General Fund 51 Refurbish IPID Perimeter Detection System 5555 Giant Highway, Richmond Bidding 50%10/1/2016 $1,100,000 General Fund Veterans Service Office 52 Accessibility for Building Entry (FLIP)930 Ward Street, Martinez Construction 95%12/30/2015 $238,000 General Fund 53 Fire Sprinkler System (FLIP) 2290 Willow Pass Rd. Concord, 406 6th St. Antioch, 757 1st St. Brentwood, 3811 Bissell Ave. Richmond Construction Documents 50%6/1/2016 $1,577,500 General Fund TOTAL $186,970,500 FINANCE COMMITTEE 5. Meeting Date:10/05/2015   Subject:Countywide Single Audit for the Fiscal Year Ending June 30, 2013 Submitted For: David Twa, County Administrator  Department:County Administrator Referral No.: 11/8/1999   Referral Name: Countywide Single Audit  Presenter: Lisa Driscoll, County Finance Director Contact: Lisa Driscoll, County Finance Director (925) 335-1023 Referral History: On November 8, 1999, the Board established a policy and procedure for addressing the annual findings and recommendations of the County's external auditors. The procedure directs that the Board refer the annual Single Audit findings to the Finance Committee, and that the County Administrator make a report to the Finance Committee on the current- and prior-year audit findings and recommendations that identifies what corrective action has been taken or is planned to be taken on each recommendation. Referral Update: Inasmuch as the current year Single Audit report encompasses all unresolved or pending audit issues from prior-year audits, this report responds directly to the current-year Single Audit report (FY ending June 30, 2014). Recommendation(s)/Next Step(s): Accept attached report regarding the Countywide Single Audit for the Fiscal Year Ending June 30, 2014 (also attached). Fiscal Impact (if any): Not applicable. Attachments Report of Countywide Single Audit for the Fiscal Year Ending June 30, 2014 County of Contra Costa Single Audit Report for the Year Ending June 30, 2014 County of Contra Costa Single Audit Reports for the Year Ended June 30, 2013 County of Contra Costa Office of the County Administrator MEMORANDUM DATE: June 2, 2015 TO: FINANCE COMMITTEE: Supervisor Mary N. Piepho, Chair Supervisor Federal D. Glover, Vice Chair FROM: DAVID TWA, County Administrator By LISA DRISCOLL, Finance Director SUBJECT: COUNTYWIDE SINGLE AUDIT FOR THE FISCAL YEAR ENDING JUNE 30, 2014 On November 8, 1999, the Board established a policy and procedure for addressing the annual findings and recommendations of the County's external auditors. The procedure directs that the Board refer the annual Single Audit findings to the Finance Committee, and that the County Administrator make a report to the Finance Committee on the current- and prior-year audit findings and recommendations that identifies what corrective action has been taken or is planned to be taken on each recommendation. Inasmuch as the current year Single Audit report encompasses all unresolved or pending audit issues from prior-year audits, this report responds directly to the current-year Single Audit report (FY ending June 30, 2014). Internal Control Over Financial Reporting. Government Auditing standards require the external auditor to obtain reasonable assurance that the general-purpose financial statements are free of material misstatement. The external auditor found one instance of significant deficiency in internal control with 2014-001 “Schedule of Expenditures of Federal Awards Completeness”. No instances of material weakness in internal control were identified. Internal Control Over Compliance. Government Auditing Standards and OMB Circular A-133 (which is applicable to federal programs) require the external auditor to report on both compliance with and internal controls over the major federal programs carried out by the County. The external auditor found no instances of material weakness nor significant deficiency in internal control over compliance. The reportable conditions are described in the following report:  Finding 2014-001: Schedule of Expenditures of Federal Awards Completeness Recommendation: The County should improve its review process by requiring department management to review and sign off program expenditures prior to being submitted to the Auditor-Controller. Additionally, the Auditor-Controller should reconcile the detailed listing of expenditures to the SEFA for each significant federal program prior to the submission to the external auditors. Finance Committee June 2, 2015 Page 2 Countywide Single Audit Follow-up Background: The County’s Sheriff’s Office overstated expenditures in its draft schedule of expenditures of federal awards (SEFA) by $4,538,768 due to prior year expenditures being reported twice and understated the amount of subrecipients by $136,514. The County was able to correct the expenditure amounts reported in its SEFA prior to its issuance. Corrective Action: The Auditor-Controller incorporated the recommended management signature line on all grant inventory listing sheets sent to the departments and all departments responded with the sheets signed by management. The Auditor-Controller does not have the sufficient staffing necessary to reconcile the SEFA, however, implemented several additional review measures to promote the quality of the reported SEFA information. The Auditor- Controller has also organized multiple education sessions for departments in Single Audit reporting and compliance. Prior Year Findings  Finding 2013-001: Accounting for OPEB Obligation Background: The County’s actuary used an incorrect basis for amortizing the UAAL. The County was advised that they did not need to amortize the OPEB obligation and understood that the amortization was factored into the biennial OPEB valuation. The errors resulted in a net adjustment to the OPEB obligation at July 1, 2012 of $177 million. Corrective Action: Corrected.  Finding 2013-02: IT Governance and General Computer Controls Recommendation: The auditor recommended that the County Chief Information Officer plan and budget for an independent IT risk assessment to be performed to identify all the possible risks to the County IT department, delivery of IT services and the accuracy and integrity of the County financial and personnel data. The risk assessment should identify potential threats to an IT infrastructure, prioritize the likelihood and impact of those threats and determine appropriate safeguards or actions. Background: During the audit, the auditor noted that the County Department of Information Technology had not completed a formal IT risk assessment to help identify risks pertaining to the delivery of IT services and the accuracy and integrity of the County’s financial and personnel data. Corrective Action: In progress. The County is considering conducting a countywide security audit in phases over multiple years, beginning with high-risk systems.  Finding 2013-03: Schedule of Expenditures of Federal Awards Completeness Finance Committee June 2, 2015 Page 3 Countywide Single Audit Follow-up Recommendation: The auditor recommended that the County improve its process for reviewing expenditures reported in the Schedule of Expenditures of Federal Awards (SEFA) prior to being submitted to the Auditor-Controller. Additionally, the auditor recommends that the Auditor-Controller’s Office reconcile the detailed listing of expenditures to the SEFA for each significant federal program prior to the submission to external auditors. Background: During the Audit, the auditor found that the County included misstatements in its draft SEFA. The misstatements include overstated expenditures and overstated amounts of subrecipients. The breakdown of expenditure amounts was corrected by the County prior to the issuance of the 2013 SEFA. Corrective Action: In progress – see Finding 2014-001. The Auditor-Controller revised the grant inventory listing sheets sent to departments to include a recommended management signature line in order to validate that the inventory sheets were reviewed and approved by management. The Auditor-Controller, however, does not have the resources available to reconcile the SEFA. The following measures have been put in place to promote the accuracy of the SEFA using available resources: Board of Supervisor’s agendas are reviewed to identify federal grants applied for during the fiscal year; current year SEFA is compared to the prior year SEFA to determine if any programs are missing; the information on the grant inventory sheets is compared to the department generated grant questionnaires and discrepancies are investigated; and departments are required to provide a schedule of any costs disallowed by grantors. Lastly, the County has set up work sessions between the auditors and department program personnel to improve the accuracy of the SEFA.  Finding 2013-04: Subrecipient Monitoring Recommendation: The auditor recommended that the County implement a system of monitoring the timely submission of status and audit reports by subrecipients. Background: During the audit, the auditor found that subrecipients were not properly monitored, audit reports were not requested by the County as required, and no tracking mechanism existed to ensure that subrecipients took appropriate corrective action regarding audit findings. Corrective Action: Corrected.  Finding 2013-005: Subrecipient Monitoring Recommendation: The auditor recommended that the County implement policies to ensure that audit reports are received from subrecipients and develop appropriate follow-up procedures to ensure that appropriate corrective actions are taken in instances of non- compliance. Background: During the audit, the auditor found that the Contra Costa County Fire Protection District neither received nor requested audit reports from subrecipients and did Finance Committee June 2, 2015 Page 4 Countywide Single Audit Follow-up not establish a mechanism to track instances of non-compliance and ensure corrective action, thus not complying with OMB Circular A-133. Corrective Action: Corrected. Attachments cc: Elizabeth Verigin, Assistant Auditor-Controller, Auditor-Controller’s Office Joanne Bohren, Chief of Audit Services, Auditor-Controller’s Office David Livingston, Sheriff Ed Woo, Chief Information Officer