HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 06-16-08
Central Contra Costa Sanitary District
5019 1Ill110ff Place, Maltlllez, CA 94553-4392 (925) 228-9500 . wwwcentlalsan olg
BUDGET AND FINANCE COMMITTEE
Chair McGill
Member Nejedly
Monday, June 16, 2008
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
1. CALL MEETING TO ORDER
2. PUBLIC COMMENTS
3. OLD BUSINESS
*a. One question regarding Spectrum Consultants Inc.
*4. CLAIMS MANAGEMENT
5. REPORTS/ANNOUNCEMENTS
*a. Review draft Investment Policies and revised charts with Andrew Brown
b. Review Budget Process
*c. Review Position Paper on Board Conference and Meeting Attendance
(Item 7.a. on Board Agenda)
d. Review Position Paper to adopt all budgets (Item 3.i. on Board Agenda)
6. REVIEW EXPENDITURES (Item 3.a. on Board Binder)
7. ADJOURNMENT
*
Attachment
A
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Central Contra Costa Sanitary District
June 13, 2008
TO:
FROM:
BOARD BUDGET AND FINANCE COMMITTEE
RANDALL MUSGRAVES fJJ.M.
DEBBIE RATCLIFF ~~
SUBJECT:
June 2, 2008 Finance Committee Meeting
There was one outstanding question from the last Board Budget and Finance
Committee meeting which required additional staff research. The question and answer
is provided below:
1. 170845 - Spectrum Consultants Inc. - What service is Spectrum
Consultants Inc. providing to the District?
Spectrum Consultants Inc. has been hired to perform a review of the District's
fleet management practices. The scope of work includes three main tasks with
multiple subtasks in each. The three main task areas include reviewing the
competitiveness of the District fleet in terms of costs and operations, the fleet
management practices of the District, and to provide a report that includes
recommendations and an implementation plan. The report is being finalized and
should be received in the next couple of weeks. The total contract is for $25,000.
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Central Contra Costa Sanitary District
June 16, 2008
TO: BUDGET AND FINANCE COMMITTEE
VIA:
JAMES KELLY, GENERAL MANAGER
DEBBIE RATCLIFF LfVL
RANDALL MUSGRAVES /?It'"
SUBJECT: GASB 45 TRUST INVESTMENT POLICY
M
FROM:
At the May 12, 2008 Budget and Finance Committee meeting, Andrew Brown,
Investment Advisor with HighMark Capital, presented various investment strategies for
the District to consider for monies that will be deposited into a GASB 45 trust. Four
investment strategies were discussed: conservative, moderately conservative,
moderate, and moderately aggressive. The Committee asked that an investment
guideline document be drafted for both the moderate and moderately aggressive
strategy and brought back for Committee review. These documents were reviewed at
the June 2, 2008 Finance Committee meeting. The Committee asked that the charts
that were provided be revised for easier comparisons. The revised charts and the
investment guideline document for each of the two strategies are attached.
Andrew Brown will be attending the June 16, 2008 Budget and Finance Committee
meeting to review the attached documents in detail and answer any questions the
Committee members may have. After the Committee review is completed, staff has
been asked to schedule a special workshop with the full Board to discuss the two
investment strategies and to provide staff with direction.
H:\GASB 45 Investment Guidelines- #2.doc
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INVESTMENT GUIDELINES DOCUMENT
Central Contra Costa Sanitary District
Central Contra Costa Sanitary District Investment Guidelines May 2008
1
Central Contra Costa Sanitary District
Investment Guidelines Document
In response to the Government Accounting Standards Board (GAS B) Statement Number 45
disclosure requirements for Other Post-Employment Benefit (OPEB) Plans, the Central Contra Costa
Sanitary District has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for
certain eligible employees
Executive Summary
Client Name:
Central Contra Costa Sanitary District
Investment Authority: Full Investment Authority
Account Number(s): To be determined
Current Assets: $ 10 million (est. May 2008)
Risk Tolerance: Moderate Objective
Time Horizon: Long-Term
Investment Objective: The primary objective is to maximize total Plan return,
subject to the risk and quality constraints set forth below. The Plan's targeted rate of
return is 7.0%. The Investment objective the District has selected is the Moderate
Objective. The asset allocation ranges for this objective are listed below:
Strategic Ranges:
o - 20% Cash
40 - 60% Fixed Income
40 - 60% Equity
Communication Schedule:
Committee meetings quarterly. Monthly statements.
HCM Portfolio Manager:
Andrew Brown, CFA 415-705-7605
Andrew. Brown(Q>.U boc.com
UBOC Administrative Officer:
Delbert Chang CFA 415-705-7603
Delbert. ChanQ(Q>.Uboc.com
John Fulton, 415-273-2508
John. Fulton(Q>.U boc.com
HCM Back up .Portfolio Manager:
The managing director for HighMark Capital Management is Kevin Rogers, he can be reached at 949-553-2580
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
2
Portfolio Constraints
Income Needs/Cash Flow Required: Annual cost estimated to be at $2.2 million.
Unique Needs and Circumstances: None
Client(s) Signature: Date:
HCM Portfolio Manager: Date:
UBOC Administrative Officer: Date:
Detailed Information for
Central Contra Costa Sanitary District
May 2008
Investment Guidelines
3
Investment Guidelines Document
Overview
The purpose of this Investment Guidelines document (IGO) is to assist you and your Portfolio
Manager in effectively supervising, monitoring and evaluating the investment of your portfolio.
Your investment program is defined in the various sections of the IGO by:
1. Stating in a written document your attitudes, expectations, objectives and guidelines for
the investment of all assets.
2. Setting forth an investment structure for managing your portfolio. This structure includes
various asset classes, investment management styles, asset allocation and acceptable
ranges that, in total, are expected to produce an appropriate level of overall diversification
and total investment return over the investment time horizon.
3. Encouraging effective communications between you and your Portfolio Manager.
4. Complying with all applicable fiduciary, prudence and due diligence requirements
experienced investment professionals would utilize, and with all applicable laws, rules
and regulations from various local, state, and federal entities that may impact your assets
Diversification
Your Portfolio Manager is responsible for maintaining the balance between fixed income and
equity securities based on the asset allocation. The following parameters shall be adhered to in
managing the portfolio:
Fixed Income
· The long-term fixed income investments (greater than seven-years in maturity)
shall constitute no more than 25%, and as little as 0% of the total Plan assets.
· The intermediate-term fixed income investments (between three-seven years in
maturity) shall constitute no more than 60%, nor less than 25% of the total Plan
assets.
· The high-yield portion of the Plan shall constitute no more than 10%, and as little
as 0% of the total Plan assets.
· The convertible bond exposure shall constitute no more than 10%, and as little as
0% of the total Plan assets.
· The short-term fixed income investments (between one-three years in maturity)
shall constitute no more than 25%, and as little as 0% of the total Plan assets.
Equity
· The domestic large cap equity investments of the Plan shall constitute no more
than 45% nor less than 15% of the total Plan assets.
· The domestic mid-capitalization equity investments of the Plan shall constitute no
more than 10%, and as little as 0% of the total Plan assets.
· The domestic small capitalization equity investments of the Plan shall constitute no
more than 15% nor less than 0% of the total Plan assets.
· The international equity investments of the Plan shall constitute no more than 15%
and as little as 0% of the total Plan assets.
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
4
· The real estate investments of the Plan shall constitute no more than 10% and as
little as 0% of the total Plan assets.
Permitted Asset Classes and Security Tvpes
The following asset classes and security types have been approved by HighMark for use in client
portfolios:
Asset Classes
. Fixed Income
o Domestic Bonds
o Non-U.S. Bonds
. Equities
o Domestic
o Non-U.S.
o Emerging Markets
o Real Estate Investment Trust (REITs)
. Cash and Cash Equivalents
Security Types
. Equity Securities
o Domestic listed and unlisted securities
o Equity and equity-related securities of non-US corporations, in the form of
American Depository Receipts ("ADRs")
· Equity Mutual Funds
o Large Cap Growth and Value
o Mid Cap Core
o Small Cap Growth and Value
o International and Emerging Markets
o REITs
· Exchange Traded Funds (ETFs)
. Fixed Income Securities
o Government/Agencies
o Mortgage Backed Bonds
o Corporate Bonds and Notes
. Fixed Income Mutual Funds
o Corporate
o Government
o High Yield
o International and Emerging Market
o Convertible
o Preferred
. Closed end funds
. Cash and Cash Equivalents
o Money Market Mutual Fund
o Commercial Paper
o CDs and Bankers Acceptance
Prohibited assets
. Precious metals
. Venture Capital
. Short sales
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
5
.
· Purchases of Letter Stock, Private Placements, or direct payments
. Leveraged Transactions
· Commodities Transactions Puts, calls, straddles, or other option strategies,
· Purchases of real estate, with the exception of REITs
. Derivatives, with exception of ETFs
Rebalancina Procedures
From time to time, market conditions may cause your asset allocation to vary from the
established target. To remain consistent with the asset allocation guidelines established by this
Investment Guidelines document, your Portfolio Manager will rebalance the portfolio on a
quarterly basis.
Duties of Responsibilities of Portfolio Manaaer
Your portfolio manager is expected to manage your portfolio in a manner consistent with this
Investment Guidelines document and in accordance with State and Federal law and the Uniform
Prudent Investor Act. HighMark Capital Management is a registered investment advisor and shall
act as such until you decide otherwise.
Your portfolio manager shall be responsible for:
1. Designing, recommending and implementing an appropriate asset allocation
consistent with the investment objectives, time horizon, risk profile, guidelines and
constraints outlined in this statement.
2. Advising the committee about the selection of and the allocation of asset categories.
3. Identifying specific assets and investment managers within each asset category.
4. Monitoring the performance of all selected assets.
5. Recommending changes to any of the above.
6. Periodically reviewing the suitability of the investments, being available to meet with
the committee at least once each year, and being available at such other times within
reason at your request.
7. Preparing and presenting appropriate reports.
8. Informing the committee if changes occur in personnel that are responsible for
portfolio management or research.
You shall be responsible for:
1. The oversight of the investment portfolio.
2. Providing your portfolio manager with all relevant information on the Plan, and shall
notify him or her promptly of any changes to this information.
3. Advising your portfolio manager of any change in the Plan's circumstances, such as
a change in the actuarial assumptions, which could possibly necessitate a change to
your overall risk tolerance, time horizon or liquidity requirements; and thus would
dictate a change to your overall investment objective and goals for the portfolio.
4. Monitoring performance by means of regular reviews to assure that objectives are
being met and that the policy and guidelines are being followed.
Communication
As a matter of course, your portfolio manager shall keep you apprised of any material changes in
HighMark Capital's outlook, recommended investment policy and tactics. In addition, your
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
6
portfolio manager shall meet with you no less than annually to review and explain the portfolio's
investment results and any related issues. Your portfolio manager shall also be available on a
reasonable basis for telephone communication when needed.
Any material event that affects the ownership of HighMark Capital Management or the
management of the portfolio must be reported immediately to you.
Disclosures
Union Bank of California, NA and HighMark Capital Management, Inc. are wholly owned
subsidiaries of UnionBanCal Corporation. Investments are not deposits or bank obligations, are
not guaranteed by any government agency, and involve risk, including loss of principal.
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
7
INVESTMENT GUIDELINES DOCUMENT
Central Contra Costa Sanitary District
Central Contra Costa Sanitary District Investment Guidelines May 2008
Central Contra Costa Sanitary District
Investment Guidelines Document
In response to the Government Accounting Standards Board (GAS B) Statement Number 45
disclosure requirements for Other Post-Employment Benefit (OPEB) Plans, the Central Contra Costa
Sanitary District has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for
certain eligible employees
Executive Summary
Client Name:
Central Contra Costa Sanitary District
Investment Authority: Full Investment Authority
Account Number(s): To be determined
Current Assets: $ 10 million (est. May 2008)
Risk Tolerance: Moderately Aggressive Objective
Time Horizon: Long-Term
Investment Objective: The primary objective is to maximize total Plan return,
subject to the risk and quality constraints set forth below. The Plan's targeted rate of
return is 8.0%. The Investment objective the District has selected is the Moderately
Aggressive Objective. The asset allocation ranges for this objective are listed below:
Strategic Ranges:
o - 20% Cash
30 - 50% Fixed Income
50 - 70% Equity
Communication Schedule:
Committee meetings quarterly. Monthly statements.
HCM Portfolio Manager:
Andrew Brown, CFA 415-705-7605
Andrew.Brown@Uboc.com
HCM Back up .Portfolio Manager:
Delbert Chang CFA 415-705-7603
Delbert. Chano@Uboc.com
UBOC Administrative Officer:
John Fulton, 415-273-2508
John. Fulton@Uboc.com
The managing director for HighMark Capital Management is Kevin Rogers, he can be reached at 949.553.2580
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
2
Portfolio Constraints
Income Needs/Cash Flow Required: Annual cost estimated to be at $2.2 million.
Unique Needs and Circumstances: None
Client(s) Signature: Date:
HCM Portfolio Manager: Date:
UBOC Administrative Officer: Date:
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
3
Detailed Information for
Investment Guidelines Document
Overview
The purpose of this Investment Guidelines document (IGO) is to assist you and your Portfolio
Manager in effectively supervising, monitoring and evaluating the investment of your portfolio.
Your investment program is defined in the various sections of the IGO by:
1. Stating in a written document your attitudes, expectations, objectives and guidelines for
the investment of all assets.
2. Setting forth an investment structure for managing your portfolio. This structure includes
various asset classes, investment management styles. asset allocation and acceptable
ranges that, in total, are expected to produce an appropriate level of overall diversification
and total investment return over the investment time horizon.
3. Encouraging effective communications between you and your Portfolio Manager.
4. Complying with all applicable fiduciary, prudence and due diligence requirements
experienced investment professionals would utilize. and with all applicable laws, rules
and regulations from various local, state. and federal entities that may impact your assets
Diversification
Your Portfolio Manager is responsible for maintaining the balance between fixed income and
equity securities based on the asset allocation. The following parameters shall be adhered to in
managing the portfolio:
Fixed Income
· The long-term fixed income investments (greater than seven-years in maturity)
shall constitute no more than 20%. and as little as 0% of the total Plan assets.
· The intermediate-term fixed income investments (between three-seven years in
maturity) shall constitute no more than 50%. nor less than 15% of the total Plan
assets.
· The high-yield portion of the Plan shall constitute no more than 10%, and as little
as 0% of the total Plan assets.
· The convertible bond exposure shall constitute no more than 10%. and as little as
0% of the total Plan assets.
· The short-term fixed income investments (between one-three years in maturity)
shall constitute no more than 20%, and as little as 0% of the total Plan assets.
Equity
· The domestic large cap equity investments of the Plan shall constitute no more
than 50% nor less than 30% of the total Plan assets.
· The domestic mid-capitalization equity investments of the Plan shall constitute no
more than 15%, and as little as 0% of the total Plan assets.
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
4
· The domestic small capitalization equity investments of the Plan shall constitute no
more than 20% nor less than 0% of the total Plan assets.
· The international equity investments of the Plan shall constitute no more than 20%
and as little as 0% of the total Plan assets.
· The real estate investments of the Plan shall constitute no more than 10% and as
little as 0% of the total Plan assets.
Permitted Asset Classes and Security Tvpes
The following asset classes and security types have been approved by HighMark for use in client
portfolios:
Asset Classes
. Fixed Income
o Domestic Bonds
o Non-U.S. Bonds
. Equities
o Domestic
o Non-U.S.
o Emerging Markets
o Real Estate Investment Trust (REITs)
. Cash and Cash Equivalents
Security Types
. Equity Securities
o Domestic listed and unlisted securities
o Equity and equity-related securities of non-US corporations, in the form of
American Depository Receipts ("ADRs")
. Equity Mutual Funds
o Large Cap Growth and Value
o Mid Cap Core
o Small Cap Growth and Value
o International and Emerging Markets
o REITs
. Exchange Traded Funds (ETFs)
. Fixed Income Securities
o GovernmenUAgencies
o Mortgage Backed Bonds
o Corporate Bonds and Notes
. Fixed Income Mutual Funds
o Corporate
o Government
o High Yield
o International and Emerging Market
o Convertible
o Preferred
. Closed end funds
. Cash and Cash Equivalents
o Money Market Mutual Fund
o Commercial Paper
o CDs and Bankers Acceptance
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
5
Prohibited assets
. Precious metals
. Venture Capital
. Short sales
· Purchases of Letter Stock, Private Placements, or direct payments
. Leveraged Transactions
. Commodities Transactions Puts, calls, straddles, or other option strategies,
. Purchases of real estate, with the exception of REITs
. Derivatives, with exception of ETFs
Rebalancina Procedures
From time to time, market conditions may cause your asset allocation to vary from the
established target. To remain consistent with the asset allocation guidelines established by this
Investment Guidelines document, your Portfolio Manager will rebalance the portfolio on a
quarterly basis.
Duties of Responsibilities of Portfolio Manaaer
Your portfolio manager is expected to manage your portfolio in a manner consistent with this
Investment Guidelines document and in accordance with State and Federal law and the Uniform
Prudent Investor Act. HighMark Capital Management is a registered investment advisor and shall
act as such until you decide otherwise.
Your portfolio manager shall be responsible for:
1. Designing, recommending and implementing an appropriate asset allocation
consistent with the investment objectives, time horizon, risk profile, guidelines and
constraints outlined in this statement.
2. Advising the committee about the selection of and the allocation of asset categories.
3. Identifying specific assets and investment managers within each asset category.
4. Monitoring the performance of all selected assets.
5. Recommending changes to any of the above.
6. Periodically reviewing the suitability of the investments, being available to meet with
the committee at least once each year, and being available at such other times within
reason at your request.
7. Preparing and presenting appropriate reports.
8. Informing the committee if changes occur in personnel that are responsible for
portfolio management or research.
You shall be responsible for:
1. The oversight of the investment portfolio.
2. Providing your portfolio manager with all relevant information on the Plan, and shall
notify him or her promptly of any changes to this information.
3. Advising your portfolio manager of any change in the Plan's circumstances, such as
a change in the actuarial assumptions, which could possibly necessitate a change to
your overall risk tolerance, time horizon or liquidity requirements; and thus would
dictate a change to your overall investment objective and goals for the portfolio.
4. Monitoring performance by means of regular reviews to assure that objectives are
being met and that the policy and guidelines are being followed.
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
6
Communication
As a matter of course, your portfolio manager shall keep you apprised of any material changes in
HighMark Capital's outlook, recommended investment policy and tactics. In addition, your
portfolio manager shall meet with you no less than annually to review and explain the portfolio's
investment results and any related issues. Your portfolio manager shall also be available on a
reasonable basis for telephone communication when needed.
Any material event that affects the ownership of HighMark Capital Management or the
management of the portfolio must be reported immediately to you.
Disclosures
Union Bank of California, N.A. and HighMark Capital Management, Inc. are wholly owned
subsidiaries of UnionBanCal Corporation. Investments are not deposits or bank obligations, are
not guaranteed by any government agency, and involve risk, including loss of principal.
Central Contra Costa Sanitary District
Investment Guidelines
May 2008
7
~
Central Contra Costa Sanitary District
BOARD OF DIRECTORS 6 ~
POSITION PAPER "
Board Meeting Date: June 19, 2008
No.: 7.a. Administrative
Type of Action:
Subject: BOARD MEMBER CONFERENCE AND MEETING ATTENDANCE
APPROVAL PROCESS
Submitted By:
Initiating Dept./Div.:
REWEWEDANDRECOMMENDEDFORBOARDAcno~
~.elA.~
E. Boehme
Secretary of the
District
4(W
K.Alm
District Counsel
ISSUE: Board Members requested that the current process for Board approval of Board
Member conference attendance and attendance at other meetings be reviewed to ensure
transparency for the public and to comply with AB 1234, and to determine if revisions are
appropriate. The Budget and Finance Committee reviewed the process on May 12, 2008
and made recommendations for Board consideration.
RECOMMENDATION: Consider the current process and adopt the attached resolution and
policy which sets forth the process for approval and reporting of Board Member
conference/meeting attendance.
FINANCIAL IMPACTS: $44,000 has been budgeted for fiscal year 2008-09 for Board
Member conference attendance at California Association of Sanitation Agencies (CASA),
California Special Districts Association (CSDA), Water Environment Federation Technical
Conference (WEFTEC), and other miscellaneous conferences that may be requested and
approved throughout the year. It also includes reimbursement for attendance at local
meetings. Reimbursement will be in accordance with adopted Board policies.
AL TERNATIVES/CONSIDERATIONS: Do not revise the current practice, or consider a
greater degree of advance notification prior to attendance.
BACKGROUND: It has been suggested that, to improve transparency, a more visible
process be established for approval of Board Member conference and meeting attendance.
The Board Budget and Finance Committee (McGill/Nejedly) reviewed the current process
on May 12,2008 with that in mind.
Currently, Board Member conference attendance is included and approved in the District
budget, and Board Members report out at a Board Meeting upon their return from the
conference, in compliance with AB 1234. They also report out at a Board Meeting following
their attendance at other local meetings for which they receive a stipend or reimbursement.
POSITION PAPER
Board Meeting Date: June 19, 2008
Subject: BOARD MEMBER CONFERENCE AND MEETING ATTENDANCE
APPROVAL PROCESS
$44,000 has been budgeted for Board Member conference and meeting attendance for
fiscal year 2008-09. Each conference can cost up to approximately $2,000.
Following a review of the current policy and consideration of various options provided by
staff, the Budget and Finance Committee recommended that two changes be made to the
current process:
(1) In addition to inclusion in the budget, Board Member conference/meeting
attendance and the dollar amount budgeted will be highlighted as part of the
budget process and presentation.
(2) Board Members will announce at a Board Meeting, in advance, their
attendance at any upcoming conferences that have been approved in the
budget. Any additional conferences a Board Member may wish to attend that
were not listed in the budget will need separate Board approval in advance.
Board Members will also, when timing permits, announce in advance their
attendance at local business meetings, including but not limited to Contra
Costa Mayors' Conference meetings and Contra Costa Council events.
Each Board Member will continue providing reports at a Board Meeting following the event
on his or her conference/meeting attendance, in compliance with AB 1234.
For fiscal year 2008-09, Board Members indicated interest in attending the following
conferences:
August 20-23, 2008, Monterey
CASA
Barbara Hockett (stipend for 2 Exec Board meetings)
Mike McGill
January 7-10,2009, Indian Wells
Barbara Hockett (stipend for 2 Exec Board meetings)
Mike McGill
March 2009, Washington, DC
Barbara Hockett
April 29 - May 2,2009, Napa
Jerry Lucey
Barbara Hockett (stipend for 2 Exec Board meetings)
Mike McGill
POSITION PAPER
Board Meeting Date: June 19,2008
Subject: BOARD MEMBER CONFERENCE AND MEETING ATTENDANCE
APPROVAL PROCESS
California Special Districts Association
September 22-25, 2008, Irvine
Mike McGill (stipend for each day attended)
Water Environment Federation Technical Conference
October 18-22, 2008, Chicago
Barbara Hockett
Mike McGill
This totals 11 individual conference attendances, each of which can cost up to
approximately $2,000. Additional money has been budgeted in the event that Board
Members may ask to attend other conferences throughout the year.
RECOMMENDED BOARD ACTION: Approve the revisions to the current process for
Board Member conference/meeting attendance, as recommended by the Budget and
Finance Committee. Adopt the Resolution and Exhibit A.
RESOLUTION NO. 2008-XXX
A RESOLUTION SETTING FORTH PROCEDURES FOR APPOINTMENT TO AND
ESTABLISHMENT OF BOARD COMMITTEES AND MEETING COMPENSATION
REQUIREMENTS FOR BOARD MEMBERS
WHEREAS, Section 6489 of the California Health and Safety Code provides that
compensation be paid to Board Members for each day's attendance at meetings of the
Board or for each day's service rendered as a Director by request of the Board; and
WHEREAS, in accordance with the Health and Safety Code and the California
Water Code Sections 20200 et seq., Ordinance 241 was adopted on February 15, 2006,
setting the Board compensation at $221 per approved meeting, not to exceed more
than one meeting per day and six meetings per calendar month; and
WHEREAS, in accordance with Section 2.04.020 of the District Code, when the
Board considers it necessary for the efficient transaction of business, it may approve the
creation of a committee for the purpose of reviewing, investigating, and recommending
with reference to a particular matter; and the President shall appoint the members of
said committee and shall have the authority to appoint an ad hoc committee or
representative to similarly act pending a Board Meeting; and
WHEREAS, the President may name an alternate to serve in the absence of an
appointed Committee Member or District representative, and such alternate shall
receive the compensation previously set forth; and
WHEREAS, the Board has deemed it necessary for the efficient operation of the
District to appoint Board Members to represent the District on various commissions,
committees and joint powers authorities, and to act as liaisons to cities and the County;
and
WHEREAS, in accordance with AB 1234, the Board hereby adopts the attached
policy (Exhibit A) which sets forth meeting compensation, reimbursement and reporting
requirements and approval process for Board Member attendance at meetings and
conferences; and
WHEREAS, in accordance with AB 1234 and to encourage participation and
attendance at conferences and organizations which serve the interests of and provide
benefit to the District, the Board has determined that Board Members may be
compensated for each day's attendance at conferences and meetings listed in Exhibit
A, Section 2; and
WHEREAS, compensation may be approved for attendance at a meeting or
conference not covered in Exhibit A to this Resolution if approved in advance by the
Board; and
WHEREAS, travel days to and from meetings or conferences are not
compensable.
NOW, THEREFORE, BE IT RESOLVED, that the President of the Board of
Directors adopts Exhibit A as the Board Member conference and meeting attendance
policy, and shall appoint Board Members to the standing committees and other
appointments as listed in Exhibit A, Section 2.
BE IT FURTHER RESOLVED, that meeting attendance slips for Board Members
for the meetings listed above and for regular Board Meetings shall be approved by the
Board President or, in his or her absence, the President Pro Tem. Meeting attendance
slips for the Board President shall be approved by the President Pro Tem, or, in his or
her absence, a Board Member designee.
PASSED AND ADOPTED this 19th day of June, 2008, by the following vote:
AYES:
NOES:
ABSTAIN:
Members:
Members:
Members:
Gerald R. Lucey
President of the District Board of the
Central Contra Costa Sanitary District,
County of Contra Costa, State of California
COUNTERSIGNED:
Elaine R. Boehme
Secretary of the Central Contra Costa
Sanitary District, County of Contra
Costa, State of California
Approved as to Form:
Kenton L. Aim
District Counsel
( ~~ AIM!s )
l re"vIsicY\5
EXHIBIT A .
This policy sets forth the requirements and approvals for conference and meeting
attendance, and reporting requirements, in compliance with AB 1234 (Gov. Code
S S 53232-53232.4.) "0
1. Definitions
Stipend (aAlso referred to as compensation). --tThis is the compensation Board
Members receive for attendance at meetings and ovontsconferences approved
by the Board. The amount of the stipend is set fGf::tR-by District ordinance in
accordance with tAe Health and Safety Code Section 6489 and-#le California
Water Code Sections 20200 et seq. Ordinance 241 was adopted on February
15, 2006, setting the Board compensation at $221 per approved meeting, not to
exceed more than one meeting per day and six meetings per calendar month.
This amount may be increased in future years as allowed by statute.
Reimbursement. - t This is where the District either reimburses Board members
after the fact or may-pays in advance directly for Board Member expenses
incurred due to attendance at approved conferences, 9f-business meetings, or
certain other- events. #-Reimbursement is separate from payment of the stipend.
Reimbursement covers SHGR-costs suchitems as mileage, registration, meals and
other travel-related expenses incurred to attend the meeting, 9f-conference, or
event in accordance with the District's Travel Policy. For certain meetings and
conferences, Board Members may receive both the stipend and roooi~./o
reimbursement for travel and other expenses.
Meeting. In addition to the definition of "meeting" in the Brown Act (Gov. Code S
54952.2), for purposes of this policy, "meeting" sRaII-also includes, for example,
in-person conferences with public officials or staff of other governmental
agencies, attendance at the public meetings of other governmental agencies,
attendance at private entity meetings at which some issue of importance to the
District is discussed, and attendance at training workshops, if related to District
business. "Meeting" sRaIIdoes not include, for example, phone calls, attendance
at -social events, dedications or receptions, or informal discussion of District
issues. The definition of "meeting" for this policy is further limited to only those
occasions where the Board member will be performing The definition of
"mooting" is intendod to bo .'imitod to thoso occasions at which somo businoss of
oonoom to tho Dist....iot is oonduoted or disoussed.some official business of the
District.
2. Meetinas for which both the Stipend (Compensation) and
Reimbursement is received
Board Members are hereby authorized to receive the stipend and appropriate
reimbursement (such as for mileage) for attending tho following all Board of
Director meetings and, workshops, as well aSRfl Board Committee meetings
when attending as a Committee member. Repre~entative~ are appointed each
year by the Board President. The Board Committees include:
. Budget and Finance Committee
. Capital Projects Committee
. Human Resources Committee
. Outreach Committee
. Recycled Water Committee
. Household Hazardous Waste Committee
. Real Estate Committee; and
. Ad Hoc Committees appointed by Board Chair or established by
Board
Board Liaison to Cities and County
California Special District~ ^~~ociation Contra Costa Chapter
Friend~ of the San Franci~co Estuary
Sanitation and '.^.'ater Agencies of Contra Costa County
In addition, the stipend and appropriate reimbursement will be paid to Board
Members for each day's attendance as a representative of the District at the
following meetings or ov.ontsconferences:
. Board Liaison meetings with Cities and County
. California Special Districts Association meetings - Contra Costa Chapter
. Friends of the San Francisco Estuary meetings
. Sanitation and Water Agencies of Contra Costa County meetings
Executive Board Meetings of the California Association of Sanitation
Agencies (CASA), i
. Executi'.'e Board, ilf serving as a member of the Executive Board; and
. California Special Districts Association Conferences
(.^.ppropriate reimbursement for attendance at Board moot.i.ngs, and ovonts othor
than thoso requiring out of ama attondanoo refers to the reimbursement of
mileage, parking, registration, meals, etc.)
3. Meetinas for which Reimbursement on Iv is received
Board Members will also receive aIJIJroIJriate reimbursement for attending
meetings at which their attendance is as a representative of the District, or
attending -meetings which are -i5-related to District business and are of ef-benefit
to the District. These meetings include, but are not limited to, Contra Costa
Mayors' Conference meetings, Contra Costa Council oventsmeetings, local
Chamber of Commerce events meetings within the District (other than as Board
Liaison), attendance at local public official informational breakfasts or similar
gatherings, meetings with Cities within the District, and other meetings where the
topic or purpose is of benefit or intorest to the Districtis to;-Gf promotes inter-
agency co-operation and partnerships between the District and other public
entities.
Appropriate reimbursement for attendance at Board meetings and events, other
than those requiring out of area attendance, refers to the reimbursement of
expenses for only mileage, parking, registration, meals, and other actual and
necessary expensesetG.
4. Approval Process
Meetinas for which Stipend is received
Approval Payment of stipend for Aattendance at these meetings,-4s conferences
and events listed above in Section 2 above is preapproved. Payment of stipend
for attendance at any other meetings or events requires prior Board approval.
Conferences
Board Members will indicate which conferences they wish to attend in advance of
each fiscal year. These will be included and highlighted clearly during the budget
process and approved as part of the budget. Any conferences not included and
approved in the budget must be approved by the Board in advance, as required
by AB 1234.
Meetinas for which Reimbursement is received
This polioySections 2 and 3 above sets forth the approval meetings that Board
Members may attend meetings as desoribed above and receive a stipond and/or
reimbursement, without additional specific Board preapproval.
5. ReportinQ Process
Board Members will announce, in advance, when timing permits, their
attendance at upcoming conferences or other meetings for which they seek to
receive the stipend and/or reimbursement. Board Members will also provide a
brief report at the meeting following their return on their meeting or conference
attendance, in compliance with AB 1234.
1107379.1