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HomeMy WebLinkAbout09.c. Review draft response to Grand Jury Report No. 110447-C. Central Contra Costa Sanitary District June 10, 2011 TO: HONORABLE MEMBERS OF THE BOARD FROM: ELAINE R. BOEHME, SECRETARY OF THE DISTRICT CC: JIM KELLY, GENERAL MANAGER MICHAEL SCAHILL, COMMUNICATION SERVICES MANAGER SUBJECT: AGENDA ITEM 9.c. - Review draft response to Grand Jury Report No. 1104 — "Elected Board Membership" Contra Costa County Grand Jury Report No. 1104 entitled "Elected Board Membership" was received by the District on April 28, 2011. The Grand Jury conducted a survey about compensation for elected Special District Boards and City Councils, specifically looking at the use of funds and if the total amounts spent by the agencies seemed reasonable. A copy of the full report is attached. A copy of the District's draft response, due July 25, 2011, is also attached. The draft response has been reviewed by the Human Resources Committee. The Board is being asked to review the draft response and provide direction to staff. Attachments: 1) Grand Jury Report No. 1104 2) Draft response \\ HOB- 01 \Groups$\ADMINSUPIADMIN \DIST- SEC \Grand Jury\2011 \Memo to Board enc. GJ Rept. 1104 and draft response.doc Grand Jury Contra Costa C0?V County rTa•c'nr April 26, 2011 James M. Kelly, General Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 Dear James M. Kelly: 725 Court Street P.O. Box 911 CA 94553 -0091 L L(V�:C Z u 2011 cv Attached is a copy of Grand Jury Report No. 1104, "Elected Board Membership" by the 2010- 2011 Contra Costa Grand Jury. In accordance with California Penal Code Section 933.05, this report is being provided to you at least two working; days before it is released pu `y. i Section 933.5(a) of the California Government Code requires that (tlie responding`p;dri;on (5f'-: entity shall report one of the following actions) in respect to each findin (I) The respondent agrees with the finding. (2) The respondent disagrees with the finding. (3) The respondent partially disagrees with the finding. In the cases of both (2) and (3) above, the respondent shall specify the portion of the finding that is disputed, and shall include an explanation of the reasons therefor. In addition, Section 933.05(b) requires that the respondent reply to each recommendation by stating one of the following actions: t. The recommendation has been implemented, with a summary describing the implemented action. ?. The recommendation has not yet been implemented, but will be implemented in the future, with a time frame for implementation. 3. T tie recommendation requires fdrther analysis. "This response's ouil&eipla�filfhe -scope ..: and,p�nq;e s of the analysis or study, and a time frame for the matter to be prepared for discussion. ' This time frame shall -hd exceed six months from the date of the publication of the Grand Jury Report. l James A Kelly, General Manager Central Contra Costa Sanitary District April 26 2011 Page 2 4. The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation thereof. Please be reminded that Section 933.05 specifies that no officer, agency, department or governing body of a public agency shall disclose any contents of the report prior to its public release. Please insure that your response to the above noted Grand Jury report includes the mandated items. We will expect your response, using the form described by the quoted Government Code, no later than July 25, 2011. It would be greatly appreciated if you could send this response in hard copy to the Grand Jury as well as by e -mail to lcuev @,contracosta.courts.ca.gov (Word document). Sincerely, Lndd,� X LINDA L. CHEW,1~oreperson 2010 -2011 Contra Costa County Civil Grand Jury A REPORT BY THE 2010 -2011 CONTRA COSTA COUNTY GRAND JURY 725 Court Street Martinez, California 94553 REPORT 1104 Elected Board Membership APPROVED BY THE GRAND JURY: Date: APRIL 6, 2011 % rfli� 1• C e INDA L. CHEW GRAND JURY FOREPERSON ACCEPTED FOR FILING: Date: OHN LAETTNER JUDGE OF THE SUPERIOR COURT Contact: Linda Chew Foreperson (925) 957 -5638 Contra Costa County Grand ,fury Report #1104 ELECTED BOARD MEMBERSHIP Public Service or Public Employment? TO: Cities and Towns in Contra Costa County (see distribution list) Independent Special Districts (see distribution list) SUMMARY Given the difficult economic challenges facing local government, the Contra Costa County Grand Jury conducted a survey about compensation for elected Special District Boards (Board) and City Councils (Council). The Grand Jury looked at the use of funds and if the total amounts spent by these agencies for elected officials' compensation seemed reasonable. The study revealed significant compensation disparities among elected Boards and Councils within Contra Costa County (County). For example, while Martinez and Oakley both have similar populations of about 35,000 residents, the Martinez City Council total compensation is $131,326, while Oakley's is only $28,544. San Ramon with 60,000 residents pays $163,190 to its entire Council while Pittsburg, with slightly more residents, pays its Council $40,035. Richmond and Antioch, both with around 100,000 residents, pay their entire Councils $267,139 and $112, 591 respectively. The Grand Jury recognizes those agencies that pay nothing or minimum compensation and thus demonstrate the spirit of public service. At the same time, there are a large number of Boards and Councils that are being compensated amounts which may be viewed as exorbitant. Board and Council members are elected to serve their constituents. They set policy, oversee programs and services administered by professional employees and are accountable to the public for their actions. The Grand Jury believes the public should be aware of the compensation paid to their elected officials, what benefits are provided and whether the compensation structure indicates that the spirit of public service has changed to an entitlement of public employment. Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 1 Grand WEy Reports are posted at http : / /www cc- courts org/ andiury BACKGROUND County residents are living in very difficult economic times, in which both public agencies and individuals have had to cut spending. The Grand Jury surveyed all 19 cities in the County as well as the 27 largest independent special districts that have their own publicly elected Boards of Directors. Population information for the analysis was obtained from Local Agency Formation Commission reports. The survey collected data for Fiscal Years (FY) 2008 -09 and 2009 -10. Information was requested for the following categories pertaining to annual expenditures for elected officials: salary and/or meeting fees, health care insurance costs, pension or deferred compensation, life insurance premiums, car allowance or mileage, cell phone and/or internet access and travel & conference costs. The total amount spent county -wide in FY 2009 -10 on compensation for the surveyed Boards and Councils was $2,419,169. The following data is grouped by cities and special districts. Data reported are the total amounts for each Board or Council regardless of the number of elected members. All cities have five elected Council members with the exception of Richmond, which has seven. All special districts have five Board members except the Byron - Bethany Irrigation District, which has nine, with two vacancies. Cities The average annual amount spent for each Council was $77,895. Lafayette, Moraga and Orinda had minimal expenses for their elected leaders. Eight cities compensate their elected leaders more than the average for all surveyed. These cities spent an average of $136,145. Of that amount, 76.4% was paid for salary and/or meeting fees and health care benefits. See table below. Twelve cities pay for elected officials' pensions or other forms of retirement benefits. Twelve cities pay for elected officials' health care insurance costs. Eight cities pay life insurance premiums for elected officials. Six cities pay for elected officials' cell phone or internet access. The following table summarizes the compensation data collected for the cities. Total Council Comaensation Exnense Cities Population ost Salary and/or Meeting Fees Health Care Insurance Costs Pension & Deferred Comp Other Costs City of Lafayette 24,500 $631 $0 $0 $0 $631 Town of Mora a 16,800 $2,673 $0 $0' $0 $2,673 City of Orinda 17,600 $2,801 $0 $0 $0 $2,801 City of Oakley 34,000 - $28,544 $27,924 $0 $0 $620 City ofClayton 10,784 $29,590 $23,400 $0 $4,640 $1,550 City of El Cerrito 23,596 $37,613 $26,710 $0 $3,574 $7,329 City of Pittsburg 63,004 $40,035 $33,240 $5,220 $0 $1,575 Town of Danville 42,601 $54,998 $40,064 $11,764 $1,502 $1,668 City of Pinole 19,193 $59,965 $17,862 $41,396 $0 $707 City Walnut Creek 66,000 $61,798 $35,100 $0 $16,086 $10,612 City of Pleasant Hill 33,377 $72,206 $37,950 $27,541 $4,569 $2,146 City of Brentwood 50,614 $91,998 $34,155 $42,425 $2,186 $13,232 City of Hercules 23,000 $93,691 $51,960 $34,141 $5,059 $2,531 City of San Pablo 30,950 $100,961 $45,210 $37,906 $6,555 $11,290 City of Antioch 100,150 $112,591 $53,746 $1,922 $5,576 $51,346 City of Concord 124,780 $128,262 $74,580 $42,303 $10,720 $659 City of Martinez 36,179 $131,326 $46,200 $71,416 $9,697 $4,012 City of San Ramon 59,002 $163,190 $47,935 $59,768 $12,457 $43,030 City of Richmond 102,186 $267,139 $152,130 $53,700 $0 $61309 Total of 19 Cities $1,480,012 $748,166 $429,502 $82,622 $219,721 Average of 19 Cities $77,895 $39,377 $22,605 $4,349 $11,564 Note: Richmond has seven Council members; all other cities have five Council members Special Districts • The average annual amount spent for each Board was $34,784. • Nine special districts paid their elected leaders from zero to less than $100 in total. They are: Crockett Community Services District, Diablo Community Services District, Kensington Police Protection. & Community Services District, Town of Knightsen Community Services District, Kensington Fire Protection District, Rodeo- Hercules Fire Protection District, Bethel Island Municipal Improvement District, Green Valley Recreation and Park District, and Moraga -Orinda Fire District. • Eight special districts compensate their elected officials more than the average for all surveyed. These districts spent an average of $99,089. Of that amount 87.7% was paid for salary and/or meeting fees and health care insurance costs. See' the table below. • Eight out of the nine most generous special districts are water or wastewater providers that pass on their costs to rate payers. • Three special districts contribute to pension or other form of retirement benefits for one or more elected officials. Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 3 Grand lure Reports are posted at h : j1mam.cc- couru.org/erandiury • Nine special districts pay for health care insurance costs for one or more elected officials. • Four special districts pay life insurance premiums for one or more elected officials. The following table summarizes the compensation data collected for the 27 special districts. Total Special District Board Compensation Expense Special District Popu- Iation Total Cost Salary & Meeting Fees Health Care Insurance Costs Pension Other Costs Crockett Community Services District 3,500 $0 $0 $0 $0 $0 Diablo Community Services District 1,200 $0 $0 $0 $0 $0 Kensington Police Prot & Com. Serv. Dist. 5,000 $0 $0 $0 $0 $0 Kni htsen Town Community Serv. Dist 1,500 $0 $0 $0 $0 $0 Kensington Fire Protection District 4,936 $0 $0 $0 $0 $0 Rodeo - Hercules Fire Protection District 30,000 $0 $0 $0 $0 $0 Bethel Island Municipal Improve District 3,000 $0 $0 $0 $0 $0 Green Valley Recreation and Park District 473 $0 $0 $0 $0 $0 Mora a- ®rinda Fire District 42,000 $50 $0 $0 $0 $50 Byron Sanitary District 995 $4,425 $4,425 $0 $0 $0 Diablo Water District 31,000 $7,365 $7,300 $0 $0 $65 Ambrose Recreation and Park District 23,000 $7,858 $5,150 $0 $0 $2,708 Rodeo Sanitary District 8,717 $8,975 $8,975 $0 $0 $0 San Ramon Valley Fire Protection Dist 158,071 $12331 $8,085 $0 $0 $4,246 Pleasant Hill Recreation and Park District 40,003 $15,226 $12,500 $0 $0 $2,726 West Contra Costa Healthcare District 201,196 $16,385 $8,200 $4,188 $0 $3,997 Los Medanos Comm. Healthcare District 81,953 $20,500 $20,500 $0 $0 $0 Discovery Bay Conununity Services Dist 15,000 $22,661 $22,500 $0 $0 $161 Ste a Sanitary District 40,000 $30,670 $22,540 $0 $0 $8,130 Mt. View Sanitary District 18,253 $41,283 $19,307 $12,593 $0 $9,383 Mt. Diablo Healthcare District 191,452 $42,498 $0 $42,498 $0 $0 East Contra Costa Irrigation District 60,000 $76,227 $3,605 $72,192 $0 $430 Ironhouse Sanitary District 35,350 $94,070 $28,220 $62,780 $2,051 $1,020 Contra Costa Water District 550,000 $99,826 $36,700 $41,177 $0 $21,949 Byron-Bethany Irrigation District 3,000 $105,380 $5,360 $99,684 $0 $336 Central Contra Costa Sanitary District 451 900 $158,174 $52,156 $90,435 $0 $15,583 West County Wastewater District 124,398 $175,254 $93,934 $44,277 $18,823 $18,220 Total of 27Special Districts $939,158 $359,457 $469,823 $20,873 $89,005 Avery e of 27 Special Districts $34,784 $13,313 S17,401 $773 $3,296 Note: Byron- Bethany Irrigation District has nine Board members, of which two are vacant; all other special districts have five Board members. Contra Costa Water District reported no pensions paid but has a provision in their retirement plan to pay a pension for Board members at age 62 after 10 years of service. Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 4 Grand (ury RepQrts are posted athp: / /www.cc- courts.ore/erand'= Professional full -time managers are hired to run each agency. Historically, elected officials have looked upon their work as public service for the betterment of the community. Agencies have provided their elected leaders with benefits. These include health care insurance, employer paid retirement benefits, life insurance premiums, payments for cell phone /internet access, and mileage reimbursement or car allowance. The total dollar amounts are small in relation to agency overall budgets. However, services to the public are being reduced in most agencies which usually means staff reductions. Although service reductions have been implemented, governing boards have continued to enjoy the same level of benefits. They should demonstrate their leadership by eliminating or reducing benefits. FINDINGS AND RECOMMENDATIONS Each agency named needs to respond only for its own practices. Finding # 1: Sixteen cities and eighteen special districts provide benefits to their elected leaders in some fashion. These benefits may include salary, meeting fees, health care insurance costs, pension or deferred compensation, life insurance premiums, cell phone usage, and internet connections. Recommendation # 1: All cities and special districts should conduct an annual public review of compensation provided to their respective elected Councils and Boards. This review should include such items as salary, meeting fees, health care insurance costs, pension/deferred compensation, life insurance premiums, cell phone usage, and internet connections. The public review should address whether or not changes in compensation are warranted. Finding # 2: Eight cities spend more than the county-wide average ($39,377) for salary and meeting fees. They are: Antioch, Concord, Danville, Hercules, Martinez, Richmond, San Pablo and San Ramon. Recommendation # 2: These cities, as part of the annual review in Recommendation 1, should consider whether it would be appropriate to implement reductions of salary and meeting fee expenditures to bring them in line with other cities. Finding # 3: Eight special districts spend more than the county-wide average ($13,313) for salary and meeting fees. They are: Central Contra Costa Sanitary District, Contra Costa Water District, Discovery Bay Community Services District, Ironhouse Sanitary District, Los Medanos Community Healthcare District, Mt. View Sanitary District, Stege Sanitary District and West County Wastewater District. Recommendation # 3: These special districts, as part of the annual review in Recommendation 1, should consider whether it would be appropriate to implement a Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 5 Grand Jury Reports are posted at hU:Uwww cc- courts.orghzrandiury reduction of salary and meeting fee expenditures to bring them in line with other special districts. Finding # 4: Health care benefits are provided to elected Board members by twelve cities and nine special districts. Recommendation # 4: The policy of paying health care insurance costs for Council and Board members should be reviewed to determine whether this practice is appropriate. The agencies following this practice are: Cities: Antioch, Brentwood, Concord, Danville, Hercules, Martinez, Pinole, Pittsburg, Pleasant Hill, Richmond, San Pablo and San Ramon Special Districts: Byron- Bethany Irrigation District, Central Contra Costa Sanitary District, Contra Costa Water District, East Contra Costa Irrigation District, Ironhouse Sanitary District, Mt. Diablo Healthcare District, Mt. View Sanitary District, West Contra Costa Healthcare District and West County Wastewater District. Finding # 5: Pension benefits, with potential long -term financial implications for the agency, are provided to Council and Board members by twelve cities and three special districts. Recommendation # 5: The policy of paying pension or deferred compensation for Council and Board members should be reviewed to determine whether this practice is appropriate. The agencies following this practice are: Cities: Antioch, Brentwood, Clayton, Concord, Danville, El Cerrito, Hercules, Martinez, Pleasant Hill, San Pablo, San Ramon and Walnut Creek. Special Districts: Central Contra Costa Sanitary District, Ironhouse Sanitary District and West County Wastewater District. REQUIRED RESPONSES Findings and Recommendations: Cities and Towns Antioch 1, 2, 4 and 5 Brentwood 1, 4 and 5 Clayton 1 and 5 Concord 1, 2, 4 and 5 Danville 1, 2, 4 and 5 E1 Cerrito I and 5 Hercules 1, 2, 4 and 5 Martinez 1, 2, 4 and 5 Oakley 1 Pinole I and 4 Pittsburg 1 and 4 Pleasant Hill 1, 4 and 5 Richmond 1, 2 and 4 Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 6 Grand Jury Reports are posted at h W: ,/f www.cc- courts.org/erandiury San Pablo 1, 2, 4 and 5 San Ramon 1, 2, 4 and 5 Walnut Creek 1 and 5 Independent Special Districts: Ambrose Recreation and Park District 1 Byron- Bethany Irrigation District 1 and 4 Byron Sanitary District 1 Central Contra Costa Sanitary District 1, 3, 4 and 5 Contra Costa Water District 1, 3 and 4 Diablo Water District 1 Discovery Bay Community Services District 1 and 3 East Contra Costa Irrigation District 1 and 4 Ironhouse Sanitary District 1, 3, 4 and 5 Los Medanos Community Healthcare District I and 3 Mt. Diablo Healthcare District 1 and 4 Mt. View Sanitary District 1, 3 and 4 Pleasant Hill Recreation and Park District 1 Rodeo Sanitary District l San Ramon Valley Fire Protection District 1 Stege Sanitary District 1 and 3 West Contra Costa County Healthcare District 1 and 4 West County Wastewater District 1, 3, 4 and 5 Distribution List: Cities and Towns Antioch, Brentwood, Clayton, Concord, Danville, El Cerrito, Hercules, Lafayette, Martinez, Moraga, Oakley, Orinda, Pinole, Pittsburg, Pleasant Hill, Richmond, San Pablo, San Ramon and Walnut Creek. Independent Special Districts: Crockett Community Services District, Diablo Community Services District, Discovery Bay Community Services District, Kensington Police Protection and Community Services District, Knightsen Community Services District, Kensington Fire Protection District, Moraga -Orinda Fire District, Rodeo - Hercules Fire Protection District, San Ramon Valley Fire Protection District, Los Medanos Community Healthcare District, Mt. Diablo Healthcare District, West Contra Costa County Healthcare District, Byron - Bethany Irrigation District, East Contra Costa Irrigation District, Bethel Island Municipal Improvement District, Ambrose Recreation and Park District, Green Valley Recreation and Park District, Pleasant Hill Recreation and Park District, Byron Sanitary District, Central Contra Costa Sanitary District, Ironhouse Sanitary District, Mt. View Sanitary District, Rodeo Sanitary District, Stege Sanitary District, West County Wastewater District, Contra Costa Water District and Diablo Water District. Contra Costa County 2010 -2011 Grand Jury Report 1104 Page 7 Grand fury Reports are posted at http://www. &c-sourts.org /erandiva PHONE: (925) 228 -9500 FAX.- (925) 676 -7211 July 8, 2011 www.centralsan.org RE: Grand Jury Report 1104 Response Dear Ms. Chew, Per the Findings and Recommendations of the 2010 -2011 Grand Jury Report 1104 on Elected Board Membership, the required responses of the Central Contra Costa Sanitary District to Findings 1, 3, 4, and 5 are as follows: Findin-g # 1: Sixteen cities and eighteen special districts provide benefits to their elected leaders in some fashion. These benefits may include salary, meeting fees, healthcare insurance costs, pension or deferred compensation, life insurance premiums, cell phone usage, and internet connections. Response: The respondent agrees with the Finding. Recommendation # 1: All cities and special districts should conduct an annual public review of compensation provided to their respective elected Councils and Boards. This review should include such ``items as salary, meeting fees, health care insurance costs, pension, deferred compensation, life insurance premiums, cell phone usage, and internet connections. The public review should address whether or not changes in compensation are warranted.` Response: This recommendation will be implemented. The Central Contra Costa Sanitary District will conduct an annual public review of compensation and benefits provided to Board members. Finding # 3: Eight special districts spend more than the county -wide average ($13,313) for salary and meeting fees. Response: The respondent agrees with the Finding. JAMESM. KELLY General Manager Ms. Linda L. Chew, Foreperson Contra Costa County Grand Jury KF.NTON L. ALAI counselfor the District 725 Court Street, 4t" Floor (510) 808 -2000 Martinez, CA 94553 ELAINE a: BOEHME Secretary of the District RE: Grand Jury Report 1104 Response Dear Ms. Chew, Per the Findings and Recommendations of the 2010 -2011 Grand Jury Report 1104 on Elected Board Membership, the required responses of the Central Contra Costa Sanitary District to Findings 1, 3, 4, and 5 are as follows: Findin-g # 1: Sixteen cities and eighteen special districts provide benefits to their elected leaders in some fashion. These benefits may include salary, meeting fees, healthcare insurance costs, pension or deferred compensation, life insurance premiums, cell phone usage, and internet connections. Response: The respondent agrees with the Finding. Recommendation # 1: All cities and special districts should conduct an annual public review of compensation provided to their respective elected Councils and Boards. This review should include such ``items as salary, meeting fees, health care insurance costs, pension, deferred compensation, life insurance premiums, cell phone usage, and internet connections. The public review should address whether or not changes in compensation are warranted.` Response: This recommendation will be implemented. The Central Contra Costa Sanitary District will conduct an annual public review of compensation and benefits provided to Board members. Finding # 3: Eight special districts spend more than the county -wide average ($13,313) for salary and meeting fees. Response: The respondent agrees with the Finding. Ms. Linda L. Chew, Foreperson Contra Costa County Grand Jury July 8, 2011 Page 2 Recommendation # 3: These special districts, as part of the annual review in Recommendation # 1, should consider whether it would be appropriate to implement a reduction of salary and meeting fee expenditures to bring them in line with other special districts. Response: This recommendation will be implemented. The Central Contra Costa Sanitary District will consider whether it would be appropriate to implement a reduction of salary or meeting fee expenditures for Board members, while recognizing the amount of time spent by Board members in service to the District community (an average of 24 scheduled Board meetings and as many as 48 Committee meetings in the course of a year), the size of the District, and in comparison with other agencies. Finding # 4: Health care benefits are provided to elected Board members by twelve cities and nine special districts. Response: The respondent agrees with the Finding. Recommendation # 4: The policy of paying health care insurance costs for Council and Board members should be reviewed to determine whether this practice is appropriate. Response: This recommendation has been implemented. After recent review, an alternative to medical coverage and premiums has been developed and offered to District Board members. A Board member can elect to participate in a medical expense reimbursement program, limited to $5,000 per year, rather than the District paying the $20,000 to $35,000 in annual healthcare premiums. This alternative is expected to yield significant cost savings to the District. Finding # 5: Pension benefits, with potential long -term financial implications for the agency, are provided to Council and Board members by twelve cities and three special districts. Response: The respondent disagrees with this Finding in part. Central Contra Costa Sanitary District was included in this Finding in error. Recommendation # 5: The policy of paying pension or deferred compensation for Council and Board members should be reviewed to determine whether this practice is appropriate. Ms. Linda L. Chew, Foreperson Contra Costa County Grand Jury July 8, 2011 Page 3 Response: This recommendation will not be implemented. The District was included in Finding #5 in error and does not provide pension benefits to current or former Board members. Please do not hesitate to contact me if you have questions or require clarification. Yours sincerely, James M. Kelly General Manager Central Contra Costa Sanitary District