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Memorandum - CBIZ Accounting - 2006-10-26 .. CoWt �L 5sv7T9 I' �IC�Z� ° =' � . . . an Independent Special-District e en p Sp Memorandum To: Board of Directors ,Jr From: Robin B. Hamers, Manager/District Engineer 'j`{�- Date: October 26, 2006 Subject: Transition to New CMSD Treasurer Current Costa Mesa Sanitary District Treasurer Wendy Davis has chosen to change career paths and leave government service in order to concentrate on her family. Wendy has been the CMSD Treasurer since May 7, 2004 and made significant contributions to the establishment of the District as an independent agency when the sharing of services with the City of Costa Mesa ceased. In addition to spearheading the creation of an independent financial operation, Wendy assisted in the planning of other areas of District business such as the makeup of the District's operations and maintenance program, improvements to the headquarters building and planning for the District yard. Wendy is officially an employee of CBIZ Accounting, Tax and Advisory of Orange County, LLC, and was provided in accordance with the CBIZ/District financial services agreement. Staff is meeting with CBIZ Managing Director Marc Davis and the planning for the transition to a new CMSD Treasurer is underway. Marc will be proposing one or two candidates who will interview with staff followed by an interview with the Board. In addition to considering the present need for a CMSD Treasurer, Staff and CBIZ have been discussing the ultimate level of financial services that will occur at the District in order to adequately plan for the necessary staffing levels. The transition to the new Treasurer will occur in early 2007 and the ultimate level of financial staffing will be included in the Year 2007 Strategic Plan. cc: Marc Davis, CBIZ Protecting our community's health by providing solid waste and sewer collection services. www.costamesasanitarydistrict.org Costa Mesa Sanitary District Responsibilities of District Treasurer The District Treasurer is a part time position, either by contract or as an employee of the District, the determination being made with consideration of the best interests of both parties. The District Treasurer is senior level position requiring responsible experience in government finance. The District Treasurer is responsible for the following activities along with any other related activities. 1. Investment of District Funds The Treasurer is responsible for investing District funds, currently near $11 million, in LAIF or corporate obligations in conformance with the District's Statement of Investment Policy and in conformance with government agency investment objectives of safety, liquidity, and yield. The Treasurer prepares a monthly summary report that is reviewed and approved by the Board of Directors at its regular meeting. 2. Yearly Budget Preparation and Presentation With the assistance of the District's Assistant Manager and mid level accountant, the Treasurer shall prepare the yearly District budget. The Treasurer shall review the budget at a study session with the Board and Staff, and then present the budget for formal adoption at a regular meeting. The District's total budget is approximately $6.6 million. 3. Preparation and Presentation of Financial Reports The Treasurer prepares a monthly report of monies on deposit for Board consideration at the monthly regular meeting. The Treasurer, with the assistance with the District's on- staff mid level accountant, prepares a monthly financial report showing the year to date activity along side the budgeted funds for each line item. The report is presented to the Board for their consideration at the monthly regular meetings. 4. Long Term Financial Planning The Treasurer shall prepare as appropriate long-term financial plans to assist the District in achieving rate stability in its trash collection and sewer collection system operations. The District separated its trash collection program and the sewer system operation in 2001 and the rate for each must support its operations. The District is an independent special district and receives the majority of its funding through charges to the residents and businesses in the District. 5. Attendance at Board of Directors Meetings and Staff Meetings The District holds its regular Board of Directors meetings on the second Thursday of the month at 6 PM. The Treasurer is required to attend the regular Board meetings and also attend any special Board meetings during the month that involve financial matters or other matters deemed appropriate for the Treasurer to attend. The Treasurer attends the monthly agenda-review meetings held the second Monday prior to the regular meeting at 8:30 AM. The agenda-review meeting date and time may be adjusted depending on the Treasurer's work outside the District. 6. Statement of Investment Policy The Treasurer shall recommend yearly revisions to the District's Statement of Investment Policy to conform to new or pending legislation. The Treasurer shall comment on current institutional controls insuring the safety of District funds and shall recommend appropriate improvements to the Board of Directors. 7. Investment Oversight Committee The Treasurer shall hold quarterly Investment Oversight Committee meetings and shall prepare the agenda and minutes of those meetings. Investment Oversight Committee meetings are normally held 30 minutes immediately prior to the regular monthly Board meetings and the committee is comprised of two Board members on a rotating basis, the Manager/District Engineer, the Assistant Manager, and the Treasurer. The subject matter for the meetings is as recommended by the Treasurer, Staff, or as requested by the Board of Directors. 8. Yearly Audit The Treasurer is responsible for soliciting proposals and recommending a firm to prepare the yearly audit and for assisting the auditor in acquiring the necessary information to perform the audit. The auditor is requested to attend a Board meeting and present the audit. 9. Special Projects The Treasurer works on an as-needed basis for special projects such as when the District purchased $2.2 million of standardized trash containers, then refinanced the debt to take advantage of lower interest rates. The Treasurer is responsible for understanding the various methods of government financing of capital_improvements and the implementation of such activity if so desired by the Board. 0t11er examples of special projects are the conversion of the District's accounting system to conform to the requirements of GASB Statement No. 34 or analyzing a company's financial data for stability. 10. Proposition 218 and other Legislation. The Treasurer is expected to participate in discussions regarding Proposition 218 and other existing or future legislation related to the legality of charges, fees, user fees, standby charges, and assessments.