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Home My WebLink About05.b. Public Hearing re Board compensation and benefits5.640 PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS SUGGESTED AGENDA March 21, 2013 1. Public Hearing a. Open public hearing b. Receive public comments, if any C. Close public hearing 2. Board deliberation on matter 3. Recommended Action - Take one of the following actions: a. Leave Board Member compensation and benefits unchanged; or b. Adopt an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members," if a change in meeting stipend is desired; or C. Direct staff to amend other compensation or benefits. N: IADMI NSUPIADMI NIDI ST- SECIBOARDICOMPENSATION- STIPENDIANNUAL REVIEW OF BOARD COMPENSATION120131PP -Mini PH Agenda Cover Sheet for PP. doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 21, 2013 Subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS Submitted By: Initiating Dept. /Div.: Elaine R. Boehme Administration Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION: �, V( K. Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: The Board adopted Resolution 2012 -018 (ATTACHMENT A) establishing a formal annual public review of Board Member compensation and benefits. RECOMMENDATION: Conduct the annual public hearing to review Board Member compensation and benefits and, if changes are desired, consider adopting an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members," if a change in meeting stipend is desired; or (2) consider directing staff to amend other compensation or benefits. 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 5 %, bringing the total compensation per day of service to $194 rather than the current $185.) ALTERNATIVES /CONSIDERATIONS: The Board may choose not to change their compensation or benefits. 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 (ATTACHMENT B). The District responded that it would implement the recommendations. In March, 2012, the Board held a public hearing and reviewed its compensation and benefits compared to other agencies. The Board reduced its meeting stipend from $221 per meeting to $185 per meeting. The Board deferred consideration of other compensation and benefits until the conclusion of the ongoing labor negotiations. The POSITION PAPER Board Meeting Date: March 21, 2013 Subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS Board also adopted Resolution 2012 -018 formally establishing the annual public review, and chose to do so at a properly noticed public hearing in the interests of transparency. Staff has updated the survey of other local agencies listing information to be reviewed as recommended by the Grand Jury Recommendation, i.e. meeting fees, health care insurance costs, pension, deferred compensation, life insurance, cell phone and internet (ATTACHMENT C). The Budget and Finance Committee reviewed the information at its meeting on Tuesday, February 19, 2013. The Committee requested that the comparison chart be amended to identify which other agencies have Board Members who receive primary benefits through another agency, for example by serving as Council Members or on the Board of Supervisors. The Board may wish to consider one or more of the following options: 1) Leave the Board compensation and benefits unchanged; 2) Adopt an ordinance changing the meeting stipend amount; 3) Direct staff to make some other change(s) to Board Member compensation or benefits. 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. RECOMMENDED BOARD ACTION: Conduct the public review of Board Member compensation and benefits and take one of the following actions: (1) Leave Board Member compensation and benefits unchanged; or (2) Adopt an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members," if a change in meeting stipend is desired; or (3) Direct staff to amend other compensation or benefits. N: I4DMI NSUPL4DMI NIDIST- SECIBOARDICOMPENSATION- STIPENDIANNUAL REVIEW OF BOARD COMPENSATION120131PP -Hold PH re Bd Compensation. doc POSITION PAPER Board Meeting Date: March 21, 2013 subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS ATTACHMENT A: Resolution 2012 -018 ATTACHMENT B: District's response to Recommendations 1 and 3, Contra Costa Grand Jury Report No. 1104 ATTACHMENT C: Survey of Board Member Compensation and Benefits, January 2013 ATTACHMENT D: Draft Ordinance (if change in meeting stipend is desired) N: IADMI NSUPIADMI NIDIST- SECIBOARDICOMPENSATION- STIPENDIANNUAL REVIEW OF BOARD COMPENSATION120131PP -Hold PH re Bd Compensation. doc ATTACHMENT A 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 during the first quarter of each calendar year at a properly noticed public hearing. 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 JarrKA. Nejedly'' President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California 00UNTERSIGNED: Secretary of the District 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 Approved as to form: 4, Z-W, (7 Kenton L. Alm, Esq. Counsel for the District CENTRAL CONTRA COSTA SANITARY DISTRICT Contra Costa County Grand Jury Requests /Responses Report No. and Topic Grand Jury Request CCC "; ;. rose Recommended Action /Comments April 2011: 7/10/11: Staff is recommending an Recommendation # 1: All cities This recommendation will be implemented. The District will annual review of Board No. 1104 and special districts should conduct an annual public review of compensation and compensation in February conduct an annual public review of benefits provided to Board members. of each year, in open Elected Board compensation provided to their session. Membership respective elected Councils and (Compensation) 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. Recommendation # 3: These 7/10/11: The appropriateness of special districts, as part of the This recommendation will be implemented. The District will Board compensation will annual review in Recommendation consider whether it would be appropriate to implement a be part of the February # 1, should consider whether it reduction of salary or meeting fee expenditures for Board annual review (see above). would be appropriate to implement members, while recognizing the amount of time spent by a reduction of salary and meeting Board members in service to the District community (an fee expenditures to bring them in average of 24 scheduled Board meetings and as many as line with other special districts. 48 Committee meetings in the course of a year), the size of the District, and in comparison with other agencies. N:\ADMINSUPWDMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND\ANNUAL REVIEW OF BOARD COMPENSATION\2013 \PP -Hold PH Attachment B.doc - 1 - D D 0 2 E M Z ...1 Li Board of Directors Compensation and Benefits Survey ATTACHMENT C 1 C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Stipend /Max. Medical Dental - - Life Insurance ruvTO Agency Compensable Board Member / Board Member/ Pension Deferred Cell Computers/ imary Benefits, Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse ., Compensation Directors contribute 6.83% District of their salary on provides iPads a pre -tax basis for Directors $560.00 per District pays for premium for up to and the District that want meeting ($1,120 Kaiser Family. District pays for District pays premium contributes them East Bay Municipal Utility District y p y per month and 2 HealthNet and Anthem BC for the for Director and eligible No o 37.74/ (as of No District No (currently 3). Yes meetings per Director only and requires 15% dependents July 2011). contribution For those that month) premium contribution for double and use their family coverage. Directors are personal eligible to retire at age 54 with iPads, the minimum of five District pays a $50 stipend. years of service. CalPERS District pays retirement (for $265.35 per premium for Directors elected meeting /6 District pays flat rate of up to $1500 month for family medical, $85, 000 policy for before 7 -1 -94 No District District West County Wastewater District meetings per dental premium is shared 90% District /10 %director. Board Member . only) District contribution No provides iPads Yes month only. (Age pays 5% of to directors reduction schedule participating applies.) directors' 8% contribution. 1 C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Board of Directors Compensation and Benefits Survey C:\ Users \digi user. 000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \07YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Stipend /Max. M. Medical Dental Life Insurance Agency Provides Agency Compensable Board Member/ Board Member/ Pension Deferred Cell Computers/ Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation District pays Yes, but one CaIPERS Member serves on contribution East Bay Dischargers $260 per District pays premium for up to two- (Board Authority (EBDA), Oro Loma Sanitary District meeting /6 party PERSCare ($2,166.22 per District pays premium for up to family No Member +District o 6.32/0 of salary District No No and another serves meetings per month); all Board Members are coverage -Delta Dental portion) for contribution on the Alameda month enrolled in less- expensive plans eligible Board County Waste members Management elected before Authority (Stop 1995 Waste Board). Yes, but one District pays for Member serves on $212.10 per District pays up to $827 per month for Board Member only; EBDA, another meeting/6 g/ $1628 per month for Board Member +1• $2002 per month for p p coverage of $10,000 District serves on CCSDA, Union Sanitary District y meetings per Family for medical dental vision; allocated as follows: 100% for Board Member; No $50 /month No provides iPads and another serves month dental, 100% vision and balance to medical plans ' p $5,000 for spouse to directors on the Geographic and dependents Information Systems Committee. $205.07 per District pays up to $1,281.21 for meeting /6 Board Member & family. Coverage is No District Mt. View Sanitary District through PERS. (PERS requires No No No No No Yes meetings per participation in a District - ponsored contribution month retirement plan. See Deferred Comp) $195 per Agency pays premium Inland Empire Utilities Agency meetin g/ 10 Agency pays premium for up to for u p to family Agency p a s District (2012 information) meetings per family coverage for the CalPERS coverage for Delta premium for No on con tribution No Yes unknown month health plan of their choice Dental PPO or Western $30,000 policy Dental C:\ Users \digi user. 000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \07YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Board of Directors Compensation and Benefits Survey C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Stipend /Max. Medical q" Dental Life Insurance Agency Provides Agency Compensable Board Member/ Board Member/ Pension Deferred Cell Computers/ Primary Benefits or �° Board Member/ Spouse /Family Comp Phone iPads Mtgs � . Spouse /Family Spouse Compensation $185 per District pays premium for up to District pays premium District pays Central Contra Costa Sanitary meeting /6 family coverage for Kaiser, Health for up to family premium for No District District meetings per Net HMO, or Health Net PPO ** coverage for Delta $50,000/$1,500 No contribution No No Yes Cafeteria Plan offered in lieu of month medical coverage Dental PPO policy Yes, but one Member serves on District pays premium for up to East Bay Dischargers $176.34 per Director &Spouse, 1 participating District pays premium Authority (EBDA), Castro Valley Sanitary District meeting /6 member, 3/1/12 Board member to for up to family No No No District No No and another serves meetings per o cost of premium increase share 50 % coverage for Delta contribution on the Alameda month from 2012 to 2011 Dental PPO u Conty Waste Management Authority (Stop Waste Board). No. Two Members serve on the City $174 per District pays Council, and one Napa Sanitation District 6 meeting/6 g/ No No premium for No No District N/A $20 allowance serves on the Board meetings per $28,000 policy contribution for iPad fees of Supervisors. month Those entities provide primary benefits. C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Board of Directors Compensation and Benefits Survey C:\ Users \digi user. 000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Stipend /Max. Medical Dental Life Insurance Agency Provides Agency Compensable Board Member/ Spouse /Family Board Member/ Board Member/ Pension Deferred Comp Cell Phone Computers/ iPads Primary Benefits or Mtgs Spouse /Family Spouse Compensation Yes. By $170 per Administrative Policy meeting /approx. 4030, Board 20 meetings per year (1 Board District pays premium for CalPERS District pays premium District pays Members cannot Delta Diablo Sanitation District meeting per Medical (HMO or PPO) up to the for up to family premium for No No District No No collect benefits from another public month +about 8 greater of either the Blue Shield or coverage; Self- $125,000/$2,000 contribution Kaiser HMO family rate insured Plan policy agency, and do not. Committee All Board Members meetings per elect to receive year) coverage only from DDSD. Existing Board members are frozen at 2012 rate of District $170 per paid premium for up to Kaiser Family; board member is Optional, if meeting /6 responsible for an increase above that rate going forward for res p y g g chosen to Ironhouse Sanitary District medical, dental and vision. New Board members are covered No No enroll, cost to No No Yes meetings per for self only t Kaiser rate. An increase above the rate of Y y District month medical coverage, dental or vision during the first year of $10 /mo. service or family coverage shall be paid by the Director. The District District pays for premium up to $591 matches Board $146 per (Board Member only), $1,181 District pays premium District pays for up Member Dublin San Ramon Services meeting /4 (Member + 1 Dependent), $1,535 for up to Board to $50,000 basic life No contributions No No Yes District meetings per (Member + 2 Dependents); rates set Member and eligible insurance to 457 plan by month by resolution annually dependents 25 %, up to $10 per calendar month C:\ Users \digi user. 000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Board of Directors Compensation and Benefits Survey ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 5 C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls Stipend /Max. Medical Dental Life Insurance Board Member/ Board Member] Agency Compensable Deferred Cell Computers/ Agency Provides imary Benefits or Mtgs Board Member/ Spouse /Family Spouse /Family Spouse Comp Phone iPads Compensation $143.59 per meeting /6 meetings per District pays health expense month. No reimbursement of $5,628 (2013 #s) No. The City Fairfield- Suisun Sewer District automatic (increased every January by CPI -W see medical health No District provides primary increase, but can for SF- Oakland Metropolitan area 12 expense No No contribution No No benefits as the Board be increased up months ending in October of each reimbursement Members serve as to 5% in January year) the City Council. of any year by Board action. $100 per meeting /10 District pays premium for up to District pays premium District pays for No District Contra Costa Water District family coverage for Kaiser, Health for Delta Dental for No No No Yes meetings per Net HMO, or Anthem Blue Cross PPO family $10,000 policy contribution month $100 per meeting per month, except for the No. The City Vallejo Sanitation and Flood appointed County No District provides primary Control District Board of No No No No contribution No No benefits as the Board Supervisor who Members serve as receives $100 per the City Council. meeting per month ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 5 C:\ Users \digiuser.000SD \AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \O7YXHTEQ \Central San 2013 BOD Compensation and Benefits Survey.xls ATTACHMENT D ORDINANCE NO. 276 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 March, 2012, reducing it from $221 per meeting to $185 per meeting; and WHEREAS, any adjustment 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 21, 2013 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 or reduced) from the current $185 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. 276 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 21, 2013, 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 21St day of March 2013, by the following vote: AYES : Members: NOES: Members: ABSENT: Members: /s/ James A. Neiedlv James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Countersigned: /s/ Elaine R. Boehme Elaine R. Boehme, CMC Secretary of the Central Contra Costa Sanitary District, County of Contra Costa, State of California Approved as to Form: /s/ Kenton L. Alm Kenton L. Alm, Esq. District Counsel