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HomeMy WebLinkAboutBOARD MINUTES 01-06-10 MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JANUARY 6, 2010 The Board of Directors of the Central Contra Costa Sanitary District convened in a special meeting at its regular place of business, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3:00 p.m. on Wednesday, January 6, 2010. President McGill called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Hockett, Lucey, Menesini, Nejedly, McGill ABSENT: Members: None a. PLEDGE OF ALLEGIANCE TO THE FLAG Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS There were no public comments. 3. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 4. REVIEW OF THE FOLLOWING ITEM REGARDING EMPLOYEE RETIREMENT BENEFITS a. CCCERA LEGAL OPINION REGARDING FINAL COMPENSATION AND RETIREMENT BENEFITS General Manager James Kelly provided a summary, stating that the CCCERA Board will meet on January 11, 2010 to discuss the Reed-Smith legal opinion letter regarding the final year’s compensation as it applies to pensions. He stated that the District Board has been provided background and historical information regarding the District’s retirement program. He stated that today’s Board meeting was scheduled to receive input and to provide the District Board an opportunity to determine whether to direct staff to submit information to CCCERA for their January 11 meeting. Engineering Assistant Molly Mullin addressed the Board and thanked them for being proactive. She pointed out that the retirement program is part of the benefit package and should be looked at as a whole. Book 59 – Page 160 Board Minutes of January 6, 2010 Rollie Katz, Public Employees’ Union Local One, addressed the Board and stated that the items included in final year compensation have been negotiated. He stated that the decline in earnings of the pension funds is the real problem, not spiking. Member Hockett asked whether, since the MOUs have already been signed, the Board has the authority to revisit them. She asked whether the decisions regarding calculation of benefits are solely in the hands of CCCERA, and if CCCERA decides to change benefits, how would that affect our employees? District Labor Counsel Dan Clinton responded that the issue of whether or not the MOU could be revisited can be discussed in closed session. With regard to the second question, he responded that some of the issues regarding calculation of benefits are subject to negotiation with the bargaining groups. Member Nejedly questioned the ability of the District to change benefits that are already part of the MOU. He asked whether the District is legally obligated to follow what the CCCERA Board does with regard to retirement benefits. He stated that the District should wait until the CCCERA Board has met to see where they are heading. Member Lucey stated that he supports de-pooling and each agency should pay for its own benefits. Member Nejedly concurred. Member Menesini asked where the District stands in relation to other agencies’ benefits. Mr. Kelly responded that many other agencies are in CalPers, rather than CCCERA. Several receive 2.7 percent at 55, or 2.5 percent at 55. He stated that staff will obtain current data and provide it to the Board. Member Nejedly asked for total salary information. President McGill asked whether the District has a responsibility to take action immediately. He stated that, from his perspective, the Board needs to make sure that the District has a remuneration package that is appropriate. He agreed with prior comments that the Board should wait and see what the CCCERA Board does at its January 11 meeting. He stated that, even though it may make the District comparable to other agencies, spiking does not look good to the public, and that needs to be fixed. Member Nejedly pointed out inconsistencies in some of the retirement calculations provided by CCCERA. He also pointed out that former General Manager Charles Batts bought back three years of military leave, which equated to an 11 percent increase in retirement compensation. Member Lucey asked for information regarding how many employees are currently carrying over four weeks’ vacation accrual on the books and how much they are carrying. Book 59 – Page 161 Board Minutes of January 6, 2010 Molly Mullin addressed the Board, objecting to the news articles not reporting all the facts. She stated that retired employees have to wait up to 2.5 months before receiving their first payment. She pointed out that District employees merely follow the rules of the retirement program and do not manipulate the system. David Rolley, Public Employees’ Local One President and District employee, stated that the current retirement program serves the District well, as well as its employees. He stated that in the long run, pension programs will benefit from the downturn in the economy. Member Nejedly asked how the Board wanted to respond to Contra Costa Times reporter Daniel Borenstein’s request for release of the Attorney/Client Privilege memo that was prepared by Mr. Clinton regarding retirement benefits. Mr. Kelly responded that the matter should be decided in closed session. Mr. Kelly asked if the Board would like to submit comments to the CCCERA Board. Member Nejedly stated that he would like to wait and see what happens at the CCCERA meeting. President McGill stated that, in his opinion, three matters need to be addressed. First, what is the District’s legal obligation, if any. Second, the District needs to look at its entire remuneration package and be well positioned for the next round of negotiations. Last, the public image needs to be addressed and its perception of enhancements. He agreed with Member Nejedly that the Board should wait and see what happens at the January 11 CCCERA meeting. Member Hockett stated that she would like CCCERA to look at the law and what is right. She stated that the District has a responsibility to provide sustainable benefits. She stated that she was surprised at some of the calculations put out by CCCERA. She agreed with prior comments that the Board should wait and see what happens at the January 11 CCCERA meeting. Daniel Borenstein, reporter for the Contra Costa Times, addressed the Board regarding the spreadsheet of employee retirement benefits he had prepared. He stated that it was just a draft, and has subsequently been revised. 5. CLOSED SESSION The Board recessed at 3:51 p.m. to reconvene in the Caucus Room in closed session to confer with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: District Counsel Daniel Clinton, Esq; Director of Administration Randall Musgraves; Human Resources Manager Cathryn Freitas; Secretary of the District Elaine Boehme Book 59 – Page 162 Board Minutes of January 6, 2010 ' Employee Organizations: Employees' Association, Public Employees' Union, Local One; CCCSD Management Support/Confidential Group (MS/CG); CCCSD Management Group The Board recessed at 4:21 p.m. and reconvened in the Board Room in open session. 6. REPORT OUT OF CLOSED SESSION President McGill reported that no direction was given to labor negotiators. He reported that the Board directed staff to provide the Attorney/Client Privilege Memo dated September 29, 2009 to the Board from Labor Counsel Daniel Clinton to Daniel Borenstein of the Contra Costa Times, per Mr. Borenstein's request. 7. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 4:23 p.m. ~ ~% Michael R. McGill President of th Board of Directors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: .. ~. _`_` ~~.~~E~~ Elaine R. Boehme - Secretary of the Central Contra Costa Sanitary~District, County of Contra Costa, ' State of California '-1 iJ Book 59 -Page 163