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HomeMy WebLinkAbout04.a. Public hearing re Board Member compensation and benefitsCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS . Q. POSITION PAPER Board Meeting Date: March 1, 2012 subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER ESTABLISHMENT OF ANNUAL PUBLIC REVIEW Submitted By: Elaine R. Boehme Initiating Dept. /Div.: Secretary of the District Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: r, A 4�, [,j-r - %a— a�e� E. Boehme K. Alm Ann E. Farrell James M. K y, Secretary of the District Counsel Deputy General General Ma gager District Manager /Director of Engineering ISSUE: Grand Jury Report 1104 recommended that all Cities and Special Districts conduct an annual public review of Board Member compensation and benefits. The District responded that it would comply with this recommendation. RECOMMENDATION: Conduct a review of Board Member compensation and benefits and (1) consider adopting an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members," if a change in stipend is desired; (2) consider directing staff to amend other compensation and benefits; and (3) consider adopting a resolution establishing a formal annual public review. FINANCIAL IMPACTS: This will depend on whether the Board chooses to increase, decrease or leave unchanged their compensation and benefits. (The maximum stipend increase permissible under Health and Safety Code Section 6489 and Water Code Section 20202 would be an additional 20% (5% for each year of 2008, 2009, 2010 and 2011 calendar years), bringing the total compensation per day of service to $265 rather than the current $221.) ALTERNATIVES /CONSIDERATIONS: The Board may choose not to change their compensation and benefits or adopt a resolution formalizing the method for annual public review. BACKGROUND: In April, 2011, the Contra Costa Grand Jury Report No. 1104 contained Recommendations #1 and #3 that all Cities and Special Districts conduct an annual public review of compensation and benefits provided to their respective Councils and Boards, and whether changes are warranted. The District responded that the Recommendations will be implemented (ATTACHMENT A). POSITION PAPER Board Meeting Date: February 2, 2012 subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER ESTABLISHMENT OF ANNUAL PUBLIC REVIEW Staff conducted a survey of other local agencies requesting information contained in the Grand Jury Recommendation, i.e. meeting fees, health care insurance costs, pension, deferred compensation, life insurance, cell phone and internet (ATTACHMENT B). Also attached is a chart comparing the Board's meeting stipend with that of various other Northern California sanitation and water districts (ATTACHMENT C). At its meeting on January 9, 2012, the Budget and Finance Committee reviewed options for addressing the annual public review and recommended that the Board set a public hearing to discuss Board Member compensation and benefits and consider adoption of a resolution establishing an annual public review. At its meeting on February 2, 2012, the Board directed staff to set a public hearing to consider whether to amend District Code Title 2, Administration, Section 2.04.030, "Compensation of Board Members," and to consider establishing a formal annual public review of Board compensation and benefits. Several Board Members expressed the view that the matter was important enough to be considered on its own, not as part of the budget process, and directed staff to set a public hearing for the soonest possible date. The Board last amended its meeting stipend in 2007, when it was increased from $170 to $221 per meeting. Other benefits have remained unchanged, except in June 2011 the Board approved a Cafeteria Plan option for Board Members in lieu of participating in the District's health care plans. Any increase or decrease in meeting stipend amount would require a majority vote, and the ordinance would not be effective until 60 days after adoption. The Board may wish to consider one or more of the following options: 1) Leave the Board compensation unchanged; 2) Adopt an ordinance changing the meeting stipend amount; 3) Direct staff to make some other change(s) to Board Member benefits; 4) Adopt a resolution establishing annual review of Board Member compensation at a public hearing. N: WDMINSUPIADMINIDIST- SECIBOARDICOMPENSATION- STIPENDIPP - 2012 Board Compensation Public Hearing 02 -22 420PM.doc POSITION PAPER Board Meeting Date: February 2, 2012 subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER ESTABLISHMENT OF ANNUAL PUBLIC REVIEW RECOMMENDED BOARD ACTION: Conduct a review of Board Member compensation and benefits and (1) consider adopting an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members," if a change in stipend is desired; (2) consider directing staff to amend other compensation and benefits; and (3) consider adopting a resolution establishing a formal annual public review. ATTACHMENT A: District's response to Recommendations 1 and 3, Contra Costa Grand Jury Report No. 1104 ATTACHMENT B: Survey of Board Member Compensation and Benefits, January 2012 ATTACHMENT C: Comparison of Board Member Meeting Stipends Draft Ordinance Draft Resolution 2012 -018 N:W DMINSUPIADMINIDIST- SECIBOARDICOMPENSATION- STIPENDIPP - 2012 Board Compensation Public Hearing 02 -22 420PM.doc C� Z 2 Q H Q r r 0 N L .0 � N U =' 0 H N � N aU) H 3 a a o� Cl) > L c .a U i Q U OC > O� U� J U i C V UIt cc 0 a � m y aai E E Ev u o CD — rQ D V � d a� c cc V c ea 0 Z 0 a d oc J a Q) E "= ,C i i S, o M a `o O O) Q Q) O �- Qv) O Q O C Q) cr- . � cu U ° cu ro c a�iv,a;�c»r i a3 a) oc .Qacom cn�c�i)�yoca�i i OC Q) 'i U co Q) C >+ "" �� CU C Q a3 °40c4�'Q= 00 E oE�� �. p. a� .c CO cn cu Ua')aiE — °cuccp :3 U°Q'A-: Q)oi!:-Q� C C as as a � ca -0 C c: m°ii o a) 4-- O E 0 •— C E 3 c 0 .� 0 CD i U) �+ U) (d (D U O Q �cEaa))u)) Cn Rf 0 O (n O Co C 3 N O U N U (b N "„ CUa) cu O c ca4 0 `° o•p U a) O O O O = u ~ C o ° , .c -o �— C a) •� o a) aci o O Q) i a�.c3 0�,E � Q p 'ca U RS S V CU V i N Q as OQ ° O_ c oUOU2 .0 O CU -0 cu C r �U� 0 C O ca)� ro O O O p co C p v 0 cn O �— O)roi) � C a) ,� •� C C cu ° co a) a o a) m •L C a) (� '� cES U > L O —a m.. v, -a Q) ac0) a) O O +�. 0 Q v °' c«scoi °Lcoi T 0 7 0 0 0 cn U .O , N ) ac, ) p U) °-: � o: as ) C r o-0 o C a 0 E � CL a) =o0U)C � �a L C C a —)) o o 8 cam. C as 0 U) U) °? - E 0 U) >~ O m N N VL 0)a °°,EQ0 o0a)c)0awi �'a °-a 0-'� m E m cz c L 0- ocoo(n000v)o�' Qm cn 0 0 0m.E E.E ' >ocn 0 3 v Q� C c -a o o 0 .- m r m W C C3 0 a) L d 0.0 0. Z d d 0 ui M m v ' m 0 CL m Q= U) 2 � @ 2 E E § Q � 2 =2 O U) Q U U � $ V Cc a) > 0 0 §k "a) k / L cn CL a/t "00 � 2\� _ f § @ [ ec£co � o 2 % - § k W § § m q g ƒ' \ Q) ol �; % / � k @k §§�0� E�k §�32« a a ® Q E §' § � k a w U a - % �/ @ k o o% a k o IOU X—, % 3 2 2 2 20 E a ®t%2 @ "t \ % @ R § % § so �2�g33?§k % % % Q @ §2Em�% a c § / �� �� k k / 0 E� 0 E o tE /oq C') cz o R ® cz # a o m £ @ @ m o- § q 3 a - CO +� Cl) a o E $ g S 2 § a) § �.% a co E @22. k § 7k v m c 75 @ § 2 as k k U) � � e _ d / -0 2-_ £ offƒ L) e � \ Board of Directors Compensation and Benefits Survey ATTACHMENT B 1 of 4 conducted January 2012 by CCCSD Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse District pays premium for up to Director & District pays premium $176.34 per meeting /6 Spouse, 1 participating member, 3/1/12 Board for up to family No District Castro Valley Sanitary District meetings per month member to share 50% cost of premium coverage for Delta No No contribution No No increase from 2012 to 2011 Dental PPO District pays premium for up to family District pays premium District pays Central Contra Costa Sanitary $221 per meeting /6 coverage for Kaiser, Health Net HMO, or for up to family premium for No District District meetings per month Health Net PPO ** Cafeteria[ Plan offered in coverage for Delta $50,000/$1,500 No contribution No No lieu of medical coverage Dental PPO policy $100 per meeting /10 District pays premium for family for any plan District pays premium District pays for No District Contra Costa Water District meetings per month offered for Delta Dental for $10,000 policy No contribution No No family Currently at $209 per meeting; Board District pays premium District pays District pays premium for CaIPERS Medical Delta Diablo Sanitation proposed to reduce to for up to family premium for No District District $170 (approx. 20 (HMO or PPO) up to the greater of either the coverage; Self- $125,000/$2,000 No contribution No No mtgs /yr: 1 Bd /mo + � 8 Blue Shield or Kaiser HMO family rate insured Plan policy Committee mtgs /yr) The District matches District pays for premium up to $555 (Board District pays premium Board Member Dublin San Ramon Services $146 per meeting /10 Member only), $1,111 (Member + 1 for up to Board District pays for up contributions to 457 District meetings per month Dependent), $1,444 (Member + 2 Member and eligible to $50,000 basic life No plan by 25 %, up to No No Dependents); rates set by resolution annually dependents insurance $10 per calendar month 1 of 4 conducted January 2012 by CCCSD Board of Directors Compensation and Benefits Survey 2 of 4 conducted January 2012 by CCCSD Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse Directors contribute 6.83% of their salary on a pre- tax basis and District pays for premium for up to Kaiser the District East Bay Municipal Utility $1,120 per month /2 Family. District pays for HealthNet and District pays premium contributes No District Anthem BC for the Director only and requires for Director and eligible No 37.74% (as of No No District meetings per month contribution 15% premium contribution for double and dependents July 2011). family coverage. Directors are eligible to retire at age 54 with minimum of five years of service. $143.59 per meeting /6 meetings District pays health expense reimbursement per month. 5% of $5,430 (2012 #s) (increased every January see medical health No District Fairfield- Suisun Sewer District increase each by CPI -W for SF- Oakland Metropolitan area 12 expense No No contribution No No reimbursement January unless months ending in October of each year) waived (2012 #s) Agency pays premium per meeting/10 Agency pays premium for up to family for up to family Agency pays No District Inland Empire Utilities Agency coverage for the CaIPERS health plan of their coverage for Delta premium for No No Yes meetings per month h mee choice Dental PPO or Western $30,000 policy contribution Dental 2 of 4 conducted January 2012 by CCCSD Board of Directors Compensation and Benefits Survey 3 of 4 conducted January 2012 by CCCSD Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse District pays premium Optional, if chosen to $170 per meeting /6 for up to family Ironhouse Sanitary District District pays premium for up to Kaiser Family No No enroll, cost to District No No meetings per month coverage for Delta $10 /mo. Dental PPO District pays up to $1,281.21 for Board $205.07 per meeting /6 Member & family. Coverage is through PERS. No District Mt. View Sanitary District meetings per month (PERS requires participation in a District - No No No contribution No No ponsored retirement plan. See Deferred Comp) $174 per meeting /6 District pays No District $20 allowance Napa Sanitation District meetings per month No No premi um for No contribution N/A for iPad fees $28,000 policy District pays CalPERS contribution (Board $260 per meeting /6 District pays premium for up to two -party District pays premium Member +Distric 6.32% of salary - Oro Loma Sanitary District PERSCare ($2,058.46 per month); all Board for up to family No No No meetings per month t portion) for District contribution Members are enrolled in less- expensive plans coverage -Delta Dental eligible Board members elected before 1995 District pays up to $827 per month for Board Member only; $1628 per District pays for $212.10 per meeting /6 month for Board Member +1; $2002 per month for Family for medical, coverage of $10,000 Union Sanitary District meetings per month dental, vision; allocated as follows: 100% dental, 100% vision, and for Board Member; No $50 /month No No $5,000 for spouse balance to medical plans and dependents 3 of 4 conducted January 2012 by CCCSD Board of Directors Compensation and Benefits Survey ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 4 of 4 conducted January 2012 by CCCSD Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse $100 per meeting, except for the appointed Vallejo Sanitation and Flood County Board of No District Control District Supervisor who receives No No No No contribution No No $100 per meeting per month District pays CaIPERS premium for West County Wastewater $265.35 per meeting /6 District pays flat rate of up to $1500 month for family medical, and $85,000 policy for retirement No District District meetings per month entire premium for up to family dental and vision Board Member (for Directors contribution No No elected before only. (Age reduction 7 -1 -94 only) schedule applies.) ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 4 of 4 conducted January 2012 by CCCSD ATTACHMENT C COMPARISON OF OTHER AGENCIES' BOARD COMPENSATION West County $265.35 1/5/12 6 Wastewater District $265.35 2009 $212.10 2008 (510) 222 -6700 $265.35 2008 Mt. View Sanitary District $265.35 2007 (925) 228 -5635 x26 Oro Loma Sanitary District $260 1/5/12 6 (510) 276 -4700 $260 2009 10 Agency $250 2008 (909) 993 -1600 $207.40 2007 $240 2007 $176.34 1/5/12 ! Union Sanitary District $212.10 1/5112 6 (510) 477 -7500 $212.10 2009 $212.10 2008 $212.10 2007 Mt. View Sanitary District $205.07 1/5/12 6 (925) 228 -5635 x26 $200 2008 $170 Inland Empire Utilities $195 1/5/12 10 Agency $217.77 2008 (909) 993 -1600 $207.40 2007 Castro Valley Sanitary $176.34 1/5/12 6 District $176.34 2008 (510) 537 -0757 $170.87 Napa Sanitation District $174 1/5112 6 (707) 258 -6000 $174 2009 $174 2008 $174 2007 Delta Diablo Sanitation $170 3/11/12 6 District $209 1/5/12 (925) 756 -1900 $209 2009 $202 2008 $191 2007 NAADMINSUP\ADMIN \DIST- SEC\ BOARD \COMPENSATION- STI PEN D\2012 Survey of Compensation and Benefits \Board Compensation Survey- 2EB.doc Page 1 of 2 ATTACHMENT C AGENCY MEET1140 STIPEND MAX NO. OF MTGS PER MONTH Ironhouse Sanitary District $170 1/5/12 6 (925) 625 -2279 $170 2009 $170 2008 $170 2007 Dublin San Ramon $146 1/5/12 10 Services District $156 2009 (925) 828 -0515 $156 2008 $156 2007 Fairfield Suisun Sewer $143.59 1/5/12 6 District $123.76 2009 (707) 429 -8930 $118.13 2008 $100 2007 Vallejo Sanitation and $100 2009 $100 flat fee per month, Flood Control District $100 2008 regardless of number of (707) 644 -8949 $100 2007 meetings EBMUD $1120 1/5/12 Monthly stipend (governed by (510) 287 -0404 $1093 2009 different regulations) $1093 2008 $1025 per month January 2012 N:WDMINSUP\ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND\2012 Survey of Compensation and Benefits\Board Compensation Survey- 2EB.doc Page 2 of 2 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AMENDING DISTRICT CODE SECTION 2.04.030, COMPENSATION OF BOARD MEMBERS WHEREAS, California Health and Safety Code Section 6489 states that the Board of Directors may, by ordinance adopted pursuant to Water Code Section 20202, increase its compensation above the $100 per day permitted by the Health and Safety Code; and WHEREAS, the Water Code permits a compensation increase of up to five per cent once in each calendar year; WHEREAS, the Health and Safety Code limits Board Member compensation to no more than six days' service in a calendar month; and WHEREAS, the Board of Directors of the Central Contra Costa Sanitary District last adjusted its compensation in February, 2007, raising it to $221 per meeting; and WHEREAS, since no adjustments were made in subsequent years, the Board may approve an increase of up to five percent per year for each year an increase was not taken, to capture the permitted increases not taken in 2008 -2011; and WHEREAS, any such increase shall not be effective for at least sixty days from the date of final passage. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: Section 1. That Section 2.04.030 of the District Code is hereby repealed and that a new Section 2.04.030 is hereby adopted as follows. A. Beginning on May 3, 2012 and continuing until the ordinance codified in this section is modified or repealed, the compensation for Board Members of the Central Contra Costa Sanitary District is [increased /decreased] from the current two hundred and tweny -one dollar level approved on February 15, 2007 to $ per day of service, effective sixty days after adoption of this ordinance and as set forth by Section 6489 of the Health and Safety Code and Section 20202 of the California Water Code. Compensation shall not be for more than a total of six days of any calendar month. B. The Board of Directors' compensation shall be reviewed periodically at the discretion of the Board. Any adjustment shall be enacted by adoption of an ordinance after the opportunity for public discussion at a Board of Directors' meeting. Central Contra Costa Sanitary District Ordinance No. Page 2 of 2 Section 2. This ordinance shall be a general regulation of the District and shall be published in the Contra Costa Times and the San Ramon Valley Times, newspapers of general circulation, published and circulated within the Central Contra Costa Sanitary District. This ordinance shall be effective on May , 2012, not less than sixty days after its passage and adoption by the Board of Directors. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 1St day of March 2012, by the following vote: AYES : Members: NOES: Members: ABSENT: Members: Countersigned: Elaine R. Boehme, CMC Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: Kenton L. Alm District Counsel James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California RESOLUTION NO. 2012 -018 A RESOLUTION ESTABLISHING ANNUAL PUBLIC REVIEW OF BOARD MEMBER COMPENSATION AND BENEFITS WHEREAS, in April 2011, the Contra Costa Grand Jury Report No. 1104 contained recmmendations that all Cities and Special Districts conduct an annual public review of compensation and benefits provided to their respective Councils and Boards, and whether changes are warranted; and WHEREAS, on July 10, 2011, the Board of Directors of Central Contra Costa Sanitary District responded to the Grand Jury's recommendations that it would conduct an annual public review of compensation and benefits provided to Board Members; and WHEREAS, at a public hearing held March 1, 2012, the Board of Directors of Central Contral Costa Sanitary District considered whether to adopt a resolution mandating such annual review of Board Member compensation at a public hearing or in open session of a regular Board meeting. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does resolve as follows: THAT the the Board of Directors of Central Contra Costa Sanitary District shall conduct an annual public review of Board Member compensation and benefits. Such review shall be held at a properly noticed public hearing g during the open session of a regularly scheduled Board meeting. PASSED AND ADOPTED this 2nd day of February 2012, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: Hockett, McGill, Menesini, Williams, Nejedly NOES: Members: None ABSTAIN: Members: None James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Central Contra Costa Sanitary District Resolution No. 2012 -018 Page 2 of 2 COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District