HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 02-14-12Jl Central Contra Costa Sanitary District
SPECIAL MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Member McGill (Alternate)
Member Nejedly
Tuesday, February 14, 2012
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BOARD OF DIRECTORS:
JAMES A NEJEDLY
President
DAVID R WILLIAMS
President Pro Tem
BARBARA D HOCKETT
MICHAEL R. MCGILL
MARIO dI AIENESI,VI
PHONE: (925) 228 -9500
FAX: (925) 676 -7211
www.centralsan.org
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction. under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours
of the meeting to a majority of the Committee are also available for public inspection at the Reception
Desk. During the meeting, information and supporting materials are available in the Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Budget and Finance Committee
February 14, 2012
Page 2
Call Meeting to Order
2. Public Comments
3. Old Business
a. Review Fiscal Year 2012 -13 10 -Year Financial Projections with
assumptions changed to represent slower recovery of the economy (Item
8.b. in Agenda Backup):
• scenario which includes paying off the entire CCCERA UAAL over the
next ten years
• scenario which increases rates to $50 in each of the first two years
Staff Recommendation: Review the scenarios.
*b. Review Liability Claims Trend Analysis
Staff Recommendation: Review staff's response and provide
direction if needed.
*c. Review Legal Expenses History
Staff Recommendation: Review staff's response and provide
direction if needed.
4. Risk Management
*a. Review Loss Control Report and discuss outstanding claims
Staff Recommendation: Review the report, discuss outstanding
claims and provide direction if needed.
5. Receive the 2011 -2012 Operations and Maintenance Budget Review for the six
months ended December 31, 2011 and projections for the full fiscal year (Item
8.a. in Board Binder)
Staff Recommendation: Receive the information and provide direction if
needed.
*6. Discuss revision of District policy to delegate to the District Deferred
Compensation Committee the authority to approve requests for early withdrawal
of funds from the Deferred Compensation Plan.
Staff Recommendation: Discuss and provide direction to staff.
Budget and Finance Committee
February 14, 2012
Page 3
7. Expenditures
a. Review Expenditures (Item 4.a. in Board Binder)
Staff Recommendation: Review and recommend Board approval.
*b. Review Legal Expenditure Summary
Staff Recommendation: Review Legal Expenditure Summary.
8. Reports and Announcements
9. Suggestions for future agenda items
10. Adjournment
* Attachment
S.\00.
Central Contra Costa Sanitary District
February 9, 2012
TO: Budget and Finance Committee
VIA: Jim Kelly, General Manager
Ann Farrell, Deputy General Manager
FROM: Randy Musgraves, Director of Administration PA
Shari Deutsch, Safety & Risk Management Administrator
SUBJECT: Liability Claims Trend Analysis
At a recent Budget and Finance Committee meeting Director Williams asked staff what
type of claims analysis it performed to evaluate the District's overall loss experience.
The attached materials provide this information for the Committee's review.
Staff prepares these materials after the close of each fiscal year, usually by the end of
July, for discussion with management. Every two years this information is provided to
the District's actuarial consultant in order to update the self- insurance fund actuarial
report.
The first page shows claim counts for the four types of liability claims which the District
self- insures to the first $1 million per occurrence; Auto Liability, General Liability,
Plumbing Reimbursements and Overflows that result in damage to third parties. The
box on the left shows the number of claims of each type by fiscal year. The number of
claims is used to compare loss frequency over time. The box on the right shows the
total cost of claims by type and fiscal year. The total cost of claims includes legal
expenses incurred, reductions for any recoveries or subrogation, and case reserves for
claims still unresolved at the end of the fiscal year. The total cost of claims by type is
used to compare loss severity over time.
The next several pages show this data graphically, charting the frequency and severity
of liability claims by type and fiscal year.
Analysis
Frequency and severity analyses are most useful when conducted on a large population
of claims data. The greater the number of claims of each type, the more likely it is that
past loss experience will approximate future loss experience.
Auto Liability and General Liability Claims
Since the District has relatively few auto liability and general liability claims in a given
year, it is difficult to project the District's future loss experience from its claims history.
The bar chart showing Auto Liability Claims Severity clearly illustrates this. From 2000
to 2010 the District's total cost of auto liability claims did not exceed $10,000 in any
year. However it has spiked in the last year. Since we have open auto liability claims
from the 2010/11 fiscal year, the total claims cost for that year includes reserves based
on the most current case information. As case information develops, reserves may
change.
While the infrequency of auto liability and general liability claims impairs analytical
projections, this same condition demonstrates that the District's low frequency and
generally low severity of these claims has been consistent for some time.
Plumbing Reimbursements
Plumbing reimbursements could be considered prevented overflows. When a plumber
advises a customer that their problem arises from the District's line, our staff responds.
If our crews find a problem with our lines, they resolve that problem and offer to
reimburse the customer for the costs of calling the plumber out.
Unlike auto liability and general liability losses, the District has received a number of
plumbing reimbursement claims over time. As a result, it is much easier to see patterns
as this experience changes over time. In 2000/01 we paid nearly 30 of these
reimbursements. As our preventative maintenance and cleaning program has
continued, the number of these small claims (frequency) has dropped significantly. In
2010/11, we paid only three of these claims.
Generally, the cost of these claims range from $120 to $400 each. Consequently, the
reduction in the number of claims has also reduced the overall cost of these claims.
Unlike the auto liability claims, it is less likely that the cost of any single reimbursement
would skew the total. As a result, the reduction in frequency mirrors the reduction in
severity. The District's total cost of plumbing reimbursements has gone from over
$6,000 per year in 2000/01 down to under $500 in 2010/11.
Overflow Claims
The frequency of overflow claims has fluctuated since 2000/01, reaching an annual high
of 21 in 2004/05 and falling to a low of 6 in 2009/10. Overflow claims severity has also
fluctuated with evident spikes in three fiscal years. As noted underneath the Overflow
Claims Severity bar chart, these spikes in total claims cost coincide with the three big
overflows of the last eleven years.
Comparison of Claims by Type
We have included three charts comparing frequency and severity by claims type. The
pie charts show that for the last eleven years, the two most common types of claims
have been plumbing reimbursements and overflows (frequency chart), constituting over
82% of the liability claims received. However, the most expensive type of claim over the
last eleven years has been overflows (severity chart), constituting over 75% of all claims
dollars spent.
The third chart shows the average cost of each type of claim over the eleven years. In
this context, general liability claims are not much less expensive than overflows on
average but their overall infrequency reduces their financial footprint.
This chart also shows the District's average cost per overflow claim as $12,909. It is
important to note that this average cost includes the cost of the three big overflows
shown on the overflow severity chart. With the cost of these three claims removed, the
District's average cost per overflow claim goes down to $6,750. It is worth noting that
the average cost per overflow claim among the California Sanitation Risk Management
Authority (CSRMA) liability pool membership is over $25,000 per claim.
Committee Review of Loss Trend Reports
If the Committee is interesting in receiving these reports, we recommend providing them
twice a year; at the second meeting in July and at the second meeting in January.
Reports presented in July would include data through the fiscal year just ended.
Reports presented in January would include loss development in the six months since
the year end report and would provide sufficient time to consider alternatives to the
District's insurance program before the annual July 1St renewals.
N
V
t0
J
D
V
V
r
r
1
O
r
O
N
L
O
7
0
t
r
r
O
O
O
O
N
.t N �- - f-- O N N O
LO IO
M co
� co
0
O O LO LO O r O 0 O 0 LO
r� •- .- .- N N � � N r �
to
I- M
M J O Ln 00 O
� � M (O UO 00 00 �- �- �- �- N N �
J
C (' O fl- 0 LO LO 'q v co co O �
U �
R JQ N N N V N O M M .- �
•� � N
O O ti 0 0 v M N J
>. O O O O O O Q
LL O O 00 ti 0 Lo v M N , O
•- O O O O O O O O O O Q
O
It
O
W
co
U)
co
c
m
E
w
E
O
c_
E
7
FL
II
J
a
(0
J
N
c
J
C�
(0
J
O
7
Q
J
Q
LO L
LO 0
00 v
v m
m m
m M
M 0
0 �
� v
v v
v 0
0
(O N
N N
N N
N L
LT N
N N
N 0
00 O
O L
Ln .
.-
m
Q O
O O
O O
O 0
00 0
0 v
v v
v N
N O
O O
O 0
00 m
O L
Ln f
f' 0
00 M
M O
O f
f O
O L
Ln L
Ln r
r M
M
N
Efi E
ER E
ER E
Eii E
Eii E
Efi t
to t
to t
to t
to t
tf3 t
to
r O
O O
O O
O M
M C
CO f
f0 M
M V
V M
M
> L
LO 0
0 N
N c
co O
O M
M �
� t
ti r
r 0
0 M
M L
LO
` M
O O
O O
O N
N M
M w
w t
ti r
r O
O L
Ln N
N M
M 4
4
y N
N
0) E
EA E
EA E
EA E
Et? t
to t
to E
EA E
Ef> t
to t
to t
to E
Efi
C
41 L
LO N
N O
O O
O M
M r
r- N
N (
(O C
CO 0
00 �
�
K
41 -
t
ti L
LO L
LO q
qq: M
M M
M f
f-, q
qq: (
(O q
qq: O
O O
O K
_ d
N9 V
V M
M M
M "
"t 0
00 '
'qT 0
00 L
LO N
N O
O c
c- (
(p
fA N
N N
N f
f- L
Ln q
q�i (
(O M
M
c
_3
V
C
M 0
000 �
� O
O O
O M
M t
ti N
N r
r- 0
000
� 0
0 O
O M
M f
�
ffl r
r _
_
LO
to
GF* 6
6% (
(s (
(s (
(s (
(s (
(s W
W- W
W-1
�' "
J O
"T "
"T 0
00 f
f- L
LO N
N (
(O N
N M
M N
N C
CO
L Q
M t
to w
w L
LO O
O 0
00 M
M M
M M
ai M
M M
M
to t
to 6
6% 6
6% 6
6% t
to t
to t
to t
to t
to t
to
�- O
O M
M M
M f
fl- W
W L
LO '
'-T M
M N
N �
�- J
J
O O
O O
O O
O O
O O
O O
O O
O O
O Q
Q
O O
O 0
00 t
ti w
w 0
0 -
--;t M
M N
N O
O
�- O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O O
O
H
LO IO
M co
� co
0
O O LO LO O r O 0 O 0 LO
r� •- .- .- N N � � N r �
to
I- M
M J O Ln 00 O
� � M (O UO 00 00 �- �- �- �- N N �
J
C (' O fl- 0 LO LO 'q v co co O �
U �
R JQ N N N V N O M M .- �
•� � N
O O ti 0 0 v M N J
>. O O O O O O Q
LL O O 00 ti 0 Lo v M N , O
•- O O O O O O O O O O Q
O
It
O
W
co
U)
co
c
m
E
w
E
O
c_
E
7
FL
II
J
a
(0
J
N
c
J
C�
(0
J
O
7
Q
J
Q
O
It
O
W
co
U)
co
c
m
E
w
E
O
c_
E
7
FL
II
J
a
(0
J
N
c
J
C�
(0
J
O
7
Q
J
Q
^V
AL,
W
A�
W
L
LL
N
E
•m
V
..1
O
3
Q
Ui of C7 N f O
swIB13 ;o aagwnN
T
T
O
T
O
T
0)
O
O
00
O
OD
O
O
I-
O
O
L
d
}
O U
N
LO
O
v
0
�r
O
M
O
M
O
a
0
N
O
O
T
O
O
O
A
d
d
cn
N
E
U
J
O
7
Q
O O
T
O
y
T
O
U)
O
O
O O
O
O
O
C
O
O
a
O O
O
O
x
O
O
O
N
LO
000 (00
rn
M
o
0
_m
EA iA
tf?
a
EfT
<f;
to
m
CU
a
rn
O
.0
0 c0
E
O
f0
L
O
a
a�
OD
o
a)
CO)
o
a�
c
a�
a�
o
m
>
co
ca
O
r
a
c
LL
co
}
0
{p
c
O
H
O
ii
E
CIS
c
LO
3
o
°
c
c
4
O
C
m
v
ca
0
Cl)
c
O
ca
`O
E
M
Co
O
O
N
�^
O
�C
.T
N
p
O
.0
N
O
C
O
0)
0)
a
7
O
U
0
C
O
_
O O
O
O
O
O
O
O
O O
O
O
O
O
O
O
O O
O
O
O
O
O
O
N
LO
000 (00
M
't
N
EA iA
tf?
6e
EfT
<f;
to
<fl
swieio ;0 is03
V
A�
W
3
Acr
W
L
LL
N
E
•m
V
R
J
i�
L
V
CO h cD Ul) It cY) N T O
swieI3 ;o jegwnN
T
T
O
O
_T
O
O
co
O
co
_O
O
r-
_O
CD
O
V
4)
}
O_
LO M
O U
N
LL
LO
0
O
M
O
M
O
N
O
N
O
O
O
O
O
�L
cn
N
E
U
A
J
R
L
V
O o
O
O
O
O
o
O O
O
O
O
O
O
o O
O
O
o
O
O
LO 0
LO
0
LO
LO
ca
ta
�
fa
EA
E,9
d3
SWIBI3 jO IS03
0
0
0
O
O
O
co
O
co
0
r
O
I-
Q
CO
O
!�0
CD �
O
o v
fA
In
O
O
O
M
O
co
O
N
O
N
O
O
O
O
O
LL
vi
m
0
c
a
N
a
U
C
O
(a
N
C
O
Q
X
W
(D
rn
O
J
O
O
O
O
VD-
0
C
O
C
Y
m
a
(C
L
m
O
O
0
0
0
O
C7
E!4
O
E
U
O
O
C
C
O
C
(C
U
a
(C
t
(O
O
LO
O
v
C
d
Q
L
LL
C
E
0
L
7
E
Im
c
B
E
3
M N N r Or Ln C
sluewesjngwiali #
w
0
0
m
0
CD
O
0
O
O
(O
0
R
co �
0
LO
O V
N
LL
�L
H
L
.0
i�
O O O O O O O O
O O O O O O O O
O O O O O O O O
tq tq � � � CM
s;uawasingwiaa ;o Iso3
Y
O
O
T
ai
O
O
co
O
co
O
O
r-
O
O
R
O �
O
L !0
O V
N
LO
OO
It
O
d'
OO
M
O
M
O
a
0
N
O
O
r
O
O
O
LL.
v
Q
L
LL
N
E
.m
V
0
L
O
O
T
N N r Or O
swie13 ;o jagwnN
r
O
O
a)
O
O
O
co
O
co
O
izz
O
I-
0
O
l0
(O }
O
O H
LO
O
O
O
CO
O
Cl)
O
a
0
N
O
O
T
O
O
O
LL
�L
O
cn
N
E
U
3
O
O
O O O O o O O
O O O O O O O
N
o
H09 H�9 to 61 69. Efl
swieIO ;o Isoo
O
O
0
0
O
O
co
O
_O
0
O
rl-
_O
6
O
co
co }
0
LO is
O co
LO
O
v
0
0
c
O
C0
O
a
0
N
O
O
0
0
O
LL
0
0
0
of
T
N
E!3
O
C
N
L
O
U
m
U
C
T
T
O
T
O
O
O
T
6s
L
O
N
(0
Y
U
C
00
O
0
Cc
0
O
0
0
0
LO
64
L
O
O
co
C
C
N
7
a
m
a
U
C_
d'
O
O
� o
o E CD
:3 J > >
N
N
O
J
O
4)
CL
N
A r
� O
N
V Z
C O
d 7
O
rr L
L T
00
E O
va
A
J
LO
c�
r
(0
to
O
J
O
a) r
CL
r O
T
A O
m N
�L
cn
U)
E
U
A
r
O
J
t
O
L
T
0
O
0
N
co
It
co
rS
N
co
co
cfl
co
J
0
rn
c
E
0
co
3
0
0
O
0
O
CL
H
E
v
:o
ca
J
O
N
O
V
d
O
L
Q
O O O O O O O O O O O O O O
O O O O O O O O O O O O O O
O O O O O O O O O O O O O O 69
O O O O O O O O O O O O O O
O O O O O O O O O O O O O O
� (7 N r O 69 Go 69 60 G 69 69 69
69 V �
wiul3 jad ssoo a6eJand
d
e
U
Central Contra Costa Sanitary District
February 9, 2012
TO: Budget and Finance Committee
VIA: Jim Kelly, General Manager
Ann Farrell, Deputy General anage� 4ky
FROM: Randy Musgraves, Director of Administration gAAAk
Shari Deutsch, Safety & Risk Management Administrator
SUBJECT: Legal Expenses History
The following items have been prepared in response to the Committee's request to
review legal expenses over the last several years. The District uses Hanson Bridgett as
its labor and employment practices legal counsel. This firm was also used for labor
negotiations in 2009. The District uses Meyers Nave for most of its other legal services
and all non - employment related litigation matters.
The attached spreadsheet shows District expenditures to these two firms since 2005 by
both calendar year and fiscal year. The second page shows fiscal year legal expenses
graphically.
The third page shows the distribution of legal expenses for Meyers Nave with the costs
of litigation broken out. Since litigation costs fluctuate with the number and types of
lawsuits active at specific times, we have isolated litigation costs to allow cost
comparison among years for the other services provided by Meyers Nave. With
litigation costs excluded, the cost of other Meyers Nave legal services is more
consistent over time.
District Legal Expenses
2005 to 2011
Fiscal
Year
Le al Ex
enses
Hanson Bridgett
$72,609.68
Meyers Nave
$592,257.44
05/06
06/07
$64,069.39
$388,286.36
07/08
$122,676.24
$424,336.89
08/09
$202,524.20
$537,076.69
09/10
$100,579.10
$157,410.86
$290,504.46
$502,781.98
10/11
Calendar
Year
Le al Ex
enses
Hanson Bridgett
$42,687.17
$73,653.90
$85,241.90
Meyers Nave
$433,553.74
$480,400.56
$419,442.41
2005
2006_
2007
2008
$157,424.37
$515,170.06
2009
$157,631.28
$381,592.00
_ 2010
2011
$104,178.57
$178,491.29
$345,641.05
$565,298.75
Meyers Nave
Litigation
Legal Services
$202,138.80
$390,118.64
$30,809.17
$357,477.19
$1,692.81
$422,644.08
$173,069.20
$364,007.49
$31,162.75
$259,341.71
$164,627.98
$338,154.00
Meyers Nave
Litigation
Legal Services
$112,857.35
$320,696.39
$133,910.49
$346,490.07
$52,217.37
$367,225.04
$190,593.57 _
$324,576.49
$46,976.56_
$334,615.44
$43,514.93
$302,126.12
$242,818.04
$322,480.71
Hanson Bridgett expenses for labor negotiations in 2009 totalled $68,825.21.
Monthly Legal Expenses by Firm, 2010 and 2011
2010
Hanson Bridgett
Meyers Nave
2011
Hanson Bridgett
Meyers Nave
Jan
Feb
$
$
10,704.40
6,060.25
$
$
19,183.55
16,395.67
Jan
Feb
$
$
31,206.70
14,863.07
$
$
36,899.51
34,299.04
Mar
$
$
$
7,984.55
7,606.62
7,240.95
$
$
$
38,165.96
21,759.34
19,136.52
Mar
$
12,533.23
$
49,229.64
Apr
Apr
$ 13,238.75
$
54,714.93
May
May
$ 11,944.63
$
91,682.36
Jun
$
13,349.77
$
24,685.42
Jun
$
22,392.45
$
29,641.91
Jul
$
5,788.13
$
25,029.26
Jul
$
13,737.71
$
47,765.83
Aug
$
3,529.40
$
24,697.51
Aug
$
14,103.26
$
43,492.49
Sep
$
6,638.73
$
37,732.62
Sep
$
6,886.55
$
41,767.75
Oct
$
4,054.20
$
26,521.89
Oct
$
13,117.77
$
44,752.02
Nov
$
4,278.07
$
33,497.70
Nov
$
12,415.09
$
46,248.04
Dec
Total
$
$
26,943.50
104,178.57
_$
$
58,835.61
345,641.05
Dec `
Total
$
$
12,052.08
178,491.29
$
$
44,805.23
565,298.75
• Dec 2011 legal expenses are projected. Invoices have not been received.
N
d
U)
C
d
a
x
W
d
J
0 0 0 0 0 0 0
6s Q � �
pied junuub
T
T
O
T
0
T
_o
00
0
00
0
0
r
0
0
0
0
i
0
L
to
d
LL
N
4.0
N
O
V
C
O
r.
m
C1
ra
J
C
O
AIA
W
L
J
d
m
Z
V1
L
d
O
O
O
O
O
O
O
L
0
as
J
O O O O O O O
O O O O O O
O O O O O O
609 O 6 6 N(f?- KJ
pied lenuub
r
T
O
T
0
rn
0
rn
0
00
O
O
O
izz
O
O
O
(O
O
O
L
m
V
N
LL
i�
O
Q.
d
0
O
fA
O
J
N
r
i
r
r
0
N
C
U
c
c cis
CD c
co
U
'C � ML _U �
_
3 rn `o c
z0aa
Im
H
z
W
W
cn
m
W
0
z
cm
G
J
a
0
z
Q
N
O
J
LL
cc
W
O
d
Y �
N CU U LL
N
0
�
T T C
U 2 O J m J y
C13 CIS a 0
O U
d O 01
Na� 5 d
�2 ° O C
rn U _ m � >
W C O O E N Q
ti
L 2 a LL cc T CD
Q CO coo C)
O C
CD
U
7 ti
ca •-
a m cn CIS W
m j y co U
*.- cY E_ rn`0
O-j U� �9� >cnl
Jo oT oo
Q�N N N N N
I� CO CD O CU
a C—a ;5
JIU) U)O dada
cli CO Ul to 00 CM
Q o o� S g$
T
N N N N N N N
Yk Q m r N CO V• Ln
w N N y y N N
O O O O O O
U U U U U U
EY
W
O
m
a
J
J
a
w
z
W
O
0
-a
a
0 C
a� cn
0 ca
m
cc m p
v $$ g $ " O
Ctp (� p W3. CCD y
m ccco N
c0 GSA
ca
a
C) °o $
CI
6% C) °ems to ail tow
d
N
U m IL)Ni
C E ca
ca 41 cc
�ImIJI2
m U
> m O C
ca
0
�L, 00o
a
(Q i N N 0
♦Z .O W w C
L O
a) cr c =�
= co C • , :s
O U m Y
r r c
_T
OI N N CN
T
D CO � O r=
�rC)o
�T
W J J J J
JI0 0 00
N cf r- r-
US$$o
�I C%J N N T
O O O O
N N N N
Sal r N co CL
N N y d
f%O d O �-
U�U0
J
w
H
z
W
G
z
W
CL
O
cc
CL
ftI
pal
B
cc
N
al
O.
O
CL`
w
H
z
W
U
z
O
Oct
Via.
N
O
N
O
a
a I N
ea c
o
Mn
O d
N
cn
cr Q
Lq � � O � N
N a0 CO c0 N ! . w
�EN9��EH6�� 04
CL
4D 0 55��� ggg
�= Lri 916
25 S
i
p 0
� Q
i � ft :CwIj
C > N CU N N
�. % ca y
Jny cc cc cu CO
J �
a
a� C-
U O-
7
c` cn rn
t' C 7 C C N
pcc E t CS o
Nj.- C N N
cD
O�x¢ ¢
J *'
N O O O O
O
0 y9 Q;
O CD
U1
JaQaa aaa
NN N CO CAM O .-
QIO C) N N N N
T
N N N N N N
CO eh
pal cA0C N -0-0
7 N
cc O O O O C O
U U 000
cu
CA
7
N
°
°°°°°°
� �
�,4 u
L
o �
y Q y
�a
m �
U -
'> ny
O U_
•� N .�'�
U
� t
cna
�cn
w LO O
p�� pN
r 0 0 L°C'J. O N
M
CO
00 �
co co
co COO N M
d9 b4 69
N
6Q,
I
en,
I
I
EA
I
61)
�
d
Y �
N CU U LL
N
0
�
T T C
U 2 O J m J y
C13 CIS a 0
O U
d O 01
Na� 5 d
�2 ° O C
rn U _ m � >
W C O O E N Q
ti
L 2 a LL cc T CD
Q CO coo C)
O C
CD
U
7 ti
ca •-
a m cn CIS W
m j y co U
*.- cY E_ rn`0
O-j U� �9� >cnl
Jo oT oo
Q�N N N N N
I� CO CD O CU
a C—a ;5
JIU) U)O dada
cli CO Ul to 00 CM
Q o o� S g$
T
N N N N N N N
Yk Q m r N CO V• Ln
w N N y y N N
O O O O O O
U U U U U U
EY
W
O
m
a
J
J
a
w
z
W
O
0
-a
a
0 C
a� cn
0 ca
m
cc m p
v $$ g $ " O
Ctp (� p W3. CCD y
m ccco N
c0 GSA
ca
a
C) °o $
CI
6% C) °ems to ail tow
d
N
U m IL)Ni
C E ca
ca 41 cc
�ImIJI2
m U
> m O C
ca
0
�L, 00o
a
(Q i N N 0
♦Z .O W w C
L O
a) cr c =�
= co C • , :s
O U m Y
r r c
_T
OI N N CN
T
D CO � O r=
�rC)o
�T
W J J J J
JI0 0 00
N cf r- r-
US$$o
�I C%J N N T
O O O O
N N N N
Sal r N co CL
N N y d
f%O d O �-
U�U0
J
w
H
z
W
G
z
W
CL
O
cc
CL
ftI
pal
B
cc
N
al
O.
O
CL`
w
H
z
W
U
z
O
Oct
Via.
N
O
N
O
a
a I N
ea c
o
Mn
O d
N
cn
cr Q
Lq � � O � N
N a0 CO c0 N ! . w
�EN9��EH6�� 04
CL
4D 0 55��� ggg
�= Lri 916
25 S
i
p 0
� Q
i � ft :CwIj
C > N CU N N
�. % ca y
Jny cc cc cu CO
J �
a
a� C-
U O-
7
c` cn rn
t' C 7 C C N
pcc E t CS o
Nj.- C N N
cD
O�x¢ ¢
J *'
N O O O O
O
0 y9 Q;
O CD
U1
JaQaa aaa
NN N CO CAM O .-
QIO C) N N N N
T
N N N N N N
CO eh
pal cA0C N -0-0
7 N
cc O O O O C O
U U 000
N
°
°°°°°°
� �
�,4 u
u3. N
EY
W
O
m
a
J
J
a
w
z
W
O
0
-a
a
0 C
a� cn
0 ca
m
cc m p
v $$ g $ " O
Ctp (� p W3. CCD y
m ccco N
c0 GSA
ca
a
C) °o $
CI
6% C) °ems to ail tow
d
N
U m IL)Ni
C E ca
ca 41 cc
�ImIJI2
m U
> m O C
ca
0
�L, 00o
a
(Q i N N 0
♦Z .O W w C
L O
a) cr c =�
= co C • , :s
O U m Y
r r c
_T
OI N N CN
T
D CO � O r=
�rC)o
�T
W J J J J
JI0 0 00
N cf r- r-
US$$o
�I C%J N N T
O O O O
N N N N
Sal r N co CL
N N y d
f%O d O �-
U�U0
J
w
H
z
W
G
z
W
CL
O
cc
CL
ftI
pal
B
cc
N
al
O.
O
CL`
w
H
z
W
U
z
O
Oct
Via.
N
O
N
O
a
a I N
ea c
o
Mn
O d
N
cn
cr Q
Lq � � O � N
N a0 CO c0 N ! . w
�EN9��EH6�� 04
CL
4D 0 55��� ggg
�= Lri 916
25 S
i
p 0
� Q
i � ft :CwIj
C > N CU N N
�. % ca y
Jny cc cc cu CO
J �
a
a� C-
U O-
7
c` cn rn
t' C 7 C C N
pcc E t CS o
Nj.- C N N
cD
O�x¢ ¢
J *'
N O O O O
O
0 y9 Q;
O CD
U1
JaQaa aaa
NN N CO CAM O .-
QIO C) N N N N
T
N N N N N N
CO eh
pal cA0C N -0-0
7 N
cc O O O O C O
U U 000
d
N
U m IL)Ni
C E ca
ca 41 cc
�ImIJI2
m U
> m O C
ca
0
�L, 00o
a
(Q i N N 0
♦Z .O W w C
L O
a) cr c =�
= co C • , :s
O U m Y
r r c
_T
OI N N CN
T
D CO � O r=
�rC)o
�T
W J J J J
JI0 0 00
N cf r- r-
US$$o
�I C%J N N T
O O O O
N N N N
Sal r N co CL
N N y d
f%O d O �-
U�U0
J
w
H
z
W
G
z
W
CL
O
cc
CL
ftI
pal
B
cc
N
al
O.
O
CL`
w
H
z
W
U
z
O
Oct
Via.
N
O
N
O
a
a I N
ea c
o
Mn
O d
N
cn
cr Q
Lq � � O � N
N a0 CO c0 N ! . w
�EN9��EH6�� 04
CL
4D 0 55��� ggg
�= Lri 916
25 S
i
p 0
� Q
i � ft :CwIj
C > N CU N N
�. % ca y
Jny cc cc cu CO
J �
a
a� C-
U O-
7
c` cn rn
t' C 7 C C N
pcc E t CS o
Nj.- C N N
cD
O�x¢ ¢
J *'
N O O O O
O
0 y9 Q;
O CD
U1
JaQaa aaa
NN N CO CAM O .-
QIO C) N N N N
T
N N N N N N
CO eh
pal cA0C N -0-0
7 N
cc O O O O C O
U U 000
C > N CU N N
�. % ca y
Jny cc cc cu CO
J �
a
a� C-
U O-
7
c` cn rn
t' C 7 C C N
pcc E t CS o
Nj.- C N N
cD
O�x¢ ¢
J *'
N O O O O
O
0 y9 Q;
O CD
U1
JaQaa aaa
NN N CO CAM O .-
QIO C) N N N N
T
N N N N N N
CO eh
pal cA0C N -0-0
7 N
cc O O O O C O
U U 000
b-
Central Contra Costa Sanitary District
February 9, 2012
TO: BUDGET AND FINANCE COMMITTEE
VIA: JAMES KELLY, GENERAL MANAGER
FROM: DEBBIE RATCLIFF, CONTROLLER
SUBJECT: DEFERRED COMPENSATION EMERGENCY WITHDRAWALS
In 1982, new procedures regarding the processing of emergency withdrawals were
approved by the Board (see attached). The procedures stated that the Deferred
Compensation Advisory Committee (DCAC) made a recommendation to the Board, the
Board reviewed the application in closed session and advised the DCAC of its
decision. In 2000, this procedure changed to including the Position Paper on the
Consent Calendar. In 2007, staff recommended to the Board that emergency
withdrawals remain on the Consent Calendar with a Closed Session scheduled on the
agenda should the Board wish to discuss the matter in more detail due to
confidentiality concerns.
Staff discussed the necessity of Board approval with the compliance officer and
Regional Vice President of ICMA, one of the District's Deferred Compensation
providers. Their opinion is that Board approval is unnecessary and recommended
approval at the DCAC level. There are no Internal Revenue Service (IRS)
requirements for Board approval of emergency withdrawals. Board approval is strictly
an internal administrative policy and other agencies handle emergency withdrawals at
the DCAC level.
The IRS has very strict rules and requirements regarding emergency withdrawals, and
the DCAC adheres to those regulations. If the Board were to deny a withdrawal that
met the requirements of the IRS, the District could be subject to a discrimination
lawsuit. Also, if the Board overturned a recommendation to deny a withdrawal, again
the District could be at risk for a possible discrimination lawsuit.
It is therefore recommended that the DCAC be given the authority to approve or deny
requests for all emergency withdrawals effective immediately, and that no Board
approval be required.
CADocuments and Settings \dratclif local Settings \Temporary Internet Files \Content.Outlook\2RNKKJX6 \Emergency Withdrawal
Finance Committee.doc
/Xy-�
ADMINISTRATIVE PROCEDURES
FOR
CENTRAL CONTRA COSTA SANITARY DISTRICT
DEFERRED COMPENSATION PLAN
1. INTRODUCTION
1.1 Purpose
The purpose of the Deferred Compensation Plan (Plan) is to offer an
attractive employee benefit under which tax - deferred contributions, in lieu
of current income, will provide future payments upon death, disability,
retirement, or other termination of employment with the District.
1.2 Origin
In January 1976, the District voluntarily withdrew from participation in the
Federal Social Security System and established a Deferred Compensation
Plan. The District's withdrawal from Social Security, however, caused an
increase in the District's contribution to the County Retirement System in
the amount of $10.90 per month at Plan inception. To keep the District's
total contribution to the two plans (Deferred Compensation and County
Retirement) from exceeding the combined cost of Social Security and County
Retirement, the District's contribution to the Deferred Compensation Plan
was set at an amount equal to the Social Security contribution less $10.90 per
month for each participant.
Therefore, the District's present monthly contribution to each participant's
account is an amount equal to the Social Security tax rate times the
employee's monthly salary less $10.90. If an employee's annual salary
exceeds the maximum taxable amount under Social Security, the District's
annual contribution is currently equal to the Social Security tax rate times
the maximum taxable amount less $10.90 times the number of months
required for the employee to earn the maximum taxable amount.
To participate in the Plan and be eligible for the District's contribution, an
employee must contribute a minimum of $5 per month. The maximum
contribution during any tax year shall not exceed the limit established by law.
Both the District's contribution and the amount contributed by the employee
to the Plan are not taxable until withdrawn.
1.3 Administration
The District has entered into an agreement with
Life Insurance Company (Hartford) to act as Plan
sales and service agent is Dean Witter Reynolds,
District has the sole authority to enforce the Plan
operation of the Plan in accordance with its terms.
Hartford Variable Annuity
Administrator. Hartford's
Inc. (Dean Witter). The
and is responsible for the
(CCSD Central Contra Costa Sanitary District
BOARD OF DIRECTORS
NO. VI. ADMINISTRATIVE
POSITION PAPER
vIA: ROGER J. DOU►N
DATE
General Manager —Chief Engineer
October 18 1982
SUBJECT
TYPE OF ACTION
DEFERRED COMPENSATION PLAN ADMINISTRATIVE PROCEDURES
APPROVE ADMINISTRATIVE
PROCEDURES
SUBMITTED BY
Walter N. Funasaki
INITIATING DEPT. /DIV.
Administrative /Accounting
ISSUE: The Deferred Compensation Plan Advisory Committee has prepared the
administrative procedures for the District's Deferred Compensation Plan.
BACKGROUND: A responsibility of the Deferred Compensation Plan Advisory
Committee is the development of the internal administrative procedures for
the Deferred Compensation Plan. A copy of the administrative procedures is
attached.
The administrative procedures will be incorporated in an employee
handbook which describes the Deferred Compensation Plan.
RECOMMENDATION: Approve the Deferred Compensation Plan administrative
procedures developed by the Deferred Compensation Plan Advisory Committee.
REVIEWED AND RECOMMENDED FOR BOARD ACTION
INITIATING DEPT. /DI
G CHIEF ENG.
���WNF
2. DEFERRED COMPENSATION PLAN ADVISORY COMMITTEE
To facilitate the internal administration of the Plan, a Deferred Compensation Plan
Advisory Committee (Committee), operating under the guidance of the District
Finance Officer, was established (Board Position Paper approved on January 28,
1982).
2.1 Committee Membership
One nonmanagement employee is selected from each department to serve on
the Committee. Selection of department representatives to the Committee
is the responsibility of the Department Managers. The Finance Officer is
responsible for notifying the Department Manager when a representative's
term has expired or when a replacement is needed for any other reason.
2.2 Term of Service
Committee members serve two -year terms beginning the first day of March
and ending the last day of February. The initial terms for the Plant
Operations and Engineering Departments were three -year and one -year
terms, respectively, to provide for overlapping terms.
Should a department representative resign, terminate employment, or
transfer to another department during the term, the Manager of the
department losing representation selects a replacement member to fill the
unexpired portion of the term. With the concurrence of the new Manager, a
transferred individual will be allowed to remain as an ex officio member in
order to complete an ongoing project.
2.3 Scope of Committee Activities
Included in the scope of activities are (1) establish internal administrative
procedures, (2) develop a document summarizing the Plan, (3) review
accountability by Plan Administrator (Hartford), (4) review requests for
emergency withdrawals, (S) review investment performance, (6) report to
District management and the Board of Directors.
2.4 Operation of the Committee
The Committee meets as often as it determines necessary, agrees upon rules
of-order, and keeps the records it deems appropriate.
3. CHANGES AFFECTING THE DEFERRED COMPENSATION PLAN
Any changes in the Social Security .regulations and laws which would affect the
contribution amount are communicated by the Finance Officer to the employees and
to the Committee for revisions to various written documents.
The Committee shall establish a review schedule for the Administrative Procedures
and the Plan Summary to ensure that these documents are current.
-2-
4. DOCUMENT PROCESSING
All forms required for enrollment, changes, emergency withdrawals, and termination
withdrawals, are available through the Accounting Office.
Hartford prepares a quarterly statement of earnings for each employee which is
distributed by the Accounting Office. Usually, statements distributed each quarter
are for the quarter ending the previous month.
4.1 Enrollment
The Personnel Office provides all new employees with an information packet
containing the Administrative Procedures for the Deferred Compensation
Plan and a copy of the Plan Summary.
Each new employee is advised by the Personnel Office that a representative
of Dean Witter will contact the employee to explain the Plan and, if the
employee so chooses, enroll him /her in the Plan. The Accounting Office
advises Dean Witter of each new hire.
A representative from Dean Witter then contacts the employee, meets with
him /her at his /her work location, explains the Plan (including the fees and
risks associated with various options), and gives him /her a copy of the
Hartford Plan prospectus. If the employee elects to participate, Dean Witter
has him /her sign enrollment forms ( "Joinder Agreement" and "Notification of
Change ") which are returned to the Accounting Office by Dean Witter for
processing. If the employee elects not to enroll within 30 days of hire and
signs a statement to that effect, he /she must wait until the next open
enrollment period (see Section 4.2 below).
The Accounting Office processes the enrollment application as follows:
a. Checks forms to see that they have been filled out completely and
correctly. Confers with the employee on any question.
b. Obtains authorized District signature (Clyde Hopkins, Paul Morsen, or
Roger Dolan).
c. Forwards the signed enrollment forms to Hartford via Dean Witter.
d. Sends a copy of the signed forms to the employee.
e. Starts payroll deductions and District payments.
4.2 Changes to a Participant's Account
The District has established enrollment periods during the months of August,
November, February, and May. By applying through the Accounting Office
during these months, an employee may make one or more of the following
changes to his /her account, effective the following pay period.
-3-
4.3.
a. An employee who elected not to participate when hired may enroll in the
Plan. (Requires "Joinder Agreement" and "Notification of Change. ")
b. An employee may change the amount of his /her personal contribution to
the Plan (increase or decrease). (Requires "Joinder Agreement" and
"Notification of Change. ")
c. An employee may change the account allocation of moneys previously
contributed (move money among fixed and variable accounts). (Requires
"Notification of Change. ")
d. An employee may change the allocation of future contributions.
(Requires "Notification of Change. ")
Forms are available in the Accounting Office and will be processed by the
Accounting staff in the some manner as described under Section 4.1.
Emergency Withdrawal
Only in the event of extreme financial hardship may an employee make a
cash withdrawal from the Plan. An unforeseeable emergency beyond the
employee's control must exist. Any amount withdrawn is subject to federal
and state taxes and Hartford's administrative fees.
Emergency Withdrawal Applications are available in the Accounting Office.
Although applications are processed as expeditiously as possible, the approval
procedure may take as long as 30 days. The procedure is as follows:
a. The employee receives the form and a copy of this procedure from the
Accounting Office and returns the completed form to the Finance
Officer.
b. The Finance Officer notifies Committee members of the application.
c. Based upon the apparent urgency of the request, the Committee either
calls a special meeting or confers on the matter at its next regular
meeting.
d. If appropriate, the applicant is invited to appear at the meeting to explain
his /her application.
e. The Committee advises the applicant, in writing, of its position on the
application.
f. The Committee makes a recommendation to the District Board of
Directors (Board) for action at the next regular Board Meeting.
g. The Board reviews the application in closed session, as a personnel
matter, and advises the Committee of its decision. At the Board's
discretion, the applicant and /or a Committee representative may attend
the Board Meeting to present additional information as needed.
h. The Committee notifies the applicant of the Board's action in writing.
-4-
i. If the Board allows the emergency withdrawal, the applicant must then
fill out and submit a "Withdrawal Request" form (available in the
Accounting Office) to the Accounting Office for processing as follows:
(1) The form is checked for accuracy and completeness.
(2) The form is checked to see that the withdrawal amount does not
exceed 90 percent of the account balance.
(3) "Emergency Withdrawal" is noted on the form.
(4) An authorized District signature (Clyde Hopkins, Paul Morsen, or
Roger Dolan) is obtained.
(5) The Finance Officer sends a cover letter and the withdrawal form to
Hartford via Dean Witter. A copy is sent to the employee.
(6) The employee receives a check from Hartford in approximately two
weeks.
j. If the application for emergency withdrawal is approved, the applicant
may also reduce his /her personal contribution to the minimum amount
($5), without waiting for the next enrollment period. (See Section 4.2 for
the procedure.)
4.4 Terminations (Includes Retirementl
Upon termination, a number of options are available to employees, as
described in the Plan Summary.
An employee leaving the District will be given a copy of this procedure and
will be asked by the Accounting Office to choose an option. If the employee
is undecided or selects an option other than full cash withdrawal, he /she will
be referred to Dean Witter for help in that decision.
If the employee elects to make a full cash withdrawal, he /she completes a
"Withdrawal Request" form and returns it to the Accounting Office where it
is processed as follows:
a. Form is checked for accuracy and completeness.
b. An authorized signature is obtained (Clyde Hopkins, Paul Morsen, or
Roger Dolan).
c. A copy is sent to the employee.
d. The completed form is sent to Hartford via Dean Witter.
e. The employee receives a check from Hartford in approximately two
weeks.
-5-
r
cc
E
E
ff�^
V/
L
CL
x
W
C
2
LL
LL
Cf.
2
u
4
u
C
2
d
co
E }
z N
o m
J to
E o
CO
U
4t '
U U-
N
E
CU
U
J
m
c
m
C�
J
co
E c„
E
U 'ca
CD- =
o
Q
a
CL Q
�b
N
r
O
N
co
N
N
C