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HomeMy WebLinkAbout03.a. Approve minutes of Board meeting held November 7, 2013T MINUTES OF THE REGULAR MEETING 3.a. OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 7, 2013 The Board of Directors of the Central Contra Costa Sanitary District convened in a regular meeting in the Board Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2:00 p.m. on Thursday, November 7, 2013. President Pro Tern Williams called the meeting to order and requested that the Secretary call roll. 1. ROLL CALL PRESENT: Members: Causey, McGill, Pilecki, Williams ABSENT:. Members: Nejedly a. PLEDGE OF ALLEGIANCE TO THE FLAG The Board and staff joined in the Pledge of Allegiance. 2. PUBLIC COMMENTS Mr. Carter Stack requested on behalf of Mr. Caesar Rashoff that unpaid fees associated with Mr. Rashoff's property at 545 El Pintado in Danville be spread over five years on his property tax bill. He stated that, seven and a half years ago, Mr. Rashoff constructed an in- law unit through the Town of Danville. He then received a letter from the District, notifying him that his fees were not paid. Mr. Stack stated that Mr. Rashoff was unsuccessful in his attempt to contact his bookkeeper from the time of the construction, and he was surprised to see the charges on his property tax bill. District Counsel Kent Alm suggested that Mr. Rashoff immediately provide the District with general information related to the construction and why the fee was not paid. The request will be considered by the Board at the November 21 Board meeting. 3. CONSENT CALENDAR a. Approve minutes of October 3, 2013 Board meeting. b. Approve expenditures dated November 7, 2013. Reviewed by Budget and Finance Committee. C. Receive September 2013 Financial Statements and Investment Reports. Reviewed by Budget and Finance Committee. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 d. Approve the Statement of Investment Policy No. BP 005 for District assets and the Investment Guidelines Document for the Government Accounting Standards Board (GASB) 45 Trust. Reviewed by Budget and Finance Committee. e. Accept the 2013 Wastewater Utility Service Capacity /Demand Report and adopt Resolution 2013 -036 updating the policy (adopted by Resolution 2006 -027 and updated by Resolution 2008 -114) regarding the provision of wastewater collection, treatment, and disposal services to residential developments with affordable housing units. f. Adopt Resolution 2013 -037 approving a grant of easement to Pacific Gas and Electric Company (PG &E) across the A -Line right of way south of Burnett Avenue in Concord (APN 126- 323 -018), District Job 1541, Parcel 7; and authorizing staff to record the document with the Contra Costa County Recorder. Member Causey requested that Item 3.d. be considered separately from the rest of the Consent Calendar. It was moved by Member McGill and seconded by Member Causey to adopt the Consent Calendar except Item 3.d., with the corrections made to Item 3.a., the October 3, 2013 minutes, which were distributed to the Board. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: None ABSENT: Members: Nejedly Member Causey asked, in relation to Item 3.d., if there were options for Investment Officers other than the County Treasurer, investments with the potential to yield a greater return, or use of an outside investor. He asked that the Budget and Finance Committee consider these alternatives if they exist. He noted that, while he realized the District has cash flow needs, he believed that the District is currently funded well above those needs, and there might be money that could be invested outside. He asked that the Budget and Finance Committee evaluate what could be done in order to enhance the District's financial return, and that a report be brought to the Board. The Board concurred with this request. It was moved by Member McGill and seconded by Member Pilecki to adopt Consent Calendar Item 3.d. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: None ABSENT: Members: Nejedly N CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 4. CALL FOR REQUESTS TO CONSIDER ITEMS OUT OF ORDER None. 5. REPORTS a. GENERAL MANAGER 1) Update on next steps following Board Priorities Workshop held on October 22, 2013 General Manager Roger Bailey reported that the Board discussed several major topics at its Board Priorities Workshop, which now stand as action items to be developed by staff. The District's managers will hold a retreat on November 19 to discuss these goals and will return to the Board with an action plan at a later date. At the workshop, the Board discussed reworking the District's mission, vision, and values to reflect the future and the expansion of the District's interests beyond collecting and treating wastewater. Regarding its Committees, the Board decided to consolidate seven into four, develop charters, and ask staff to provide Action Summaries in advance when possible. The Board also discussed the frequency of its Committee meetings and staggering the terms of service for its members. The Board concurred that it was responsible for policy and setting goals, while the General Manager was responsible for taking actions with staff to meet those goals. The Board deliberated on fiscal sustainability and the District's financial liabilities, culminating in a request for a comprehensive financial analysis and cost of service study. The Board also wished to re- establish the District as a leader in the industry and create leadership and learning opportunities to better prepare for succession planning. For operational resilience, the Board directed staff to implement a formal District -wide asset management program. Member Causey stated that he believed the Board needed to discuss further the role of the General Manager with regard to approval of revisions to job classifications. 2) Announcements The following written announcements were included with the agenda packet: a) Public Bidding for Non - Destructive Potholing Contract, District Project 041008ENG 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 b) Senior Engineer Sasha Mestetsky to attend the Underground Construction Technology (UCT) Conference in Houston, Texas — January 27 -31, 2014 C) Environmental Services Division Manager Danea Gemmell to attend the Water & Wastewater Leadership Center Class in Chapel Hill, North Carolina — March 9 -21, 2014 d) Opacity Excursions on October 10, 2013 e) Auxiliary Fuel Flow Exceedance on October 11, 2013 f) State Water Resources Control Board (SWRCB) Water Permit Fee Increase No additional written announcements were made at the meeting. b. COUNSEL FOR THE DISTRICT District Counsel Kent Alm announced that he would provide the Board a copy of the brief filed by the District on the AB 197 litigation. President Pro Tern Williams requested that the Board receive a thorough briefing upon formation of an outcome regarding the bill. C. SECRETARY OF THE DISTRICT Secretary of the District Elaine Boehme announced the upcoming meetings of the Capital Projects Committee on November 8, 2013 and Enterprise Committee on November 14, 2013. • G : � ur��1:3�:Z.9 1) Board Member reports on recent meetings for which they received the stipend; and meetings or conferences for which the District paid their expenses; future meetings or conferences for which they will receive the stipend or for which the District will pay their expenses Member Pilecki Member Pilecki reported that, on November 7, 2013, he would be attending the California Water Environment Association (CWEA) section meeting, where District staff was set to present on the District's award - winning collection system. 0 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 Member McGill Member McGill reported on the October 21, 2013 Contra Costa Special Districts Association (CCSDA) Chapter Meeting and the October 28, 2013 Business Meeting with General Manager Roger Bailey and the Mayor and City Manager of the City of Walnut Creek. Member McGill reported on the October 28, 2013 Enterprise Committee meeting, also attended by President Nejedly, and reported on the Action Summary. The Board received the report without comment. Member McGill reported on the November 4, 2013 Budget and Finance Committee meeting, also attended by President Nejedly, and reported on the Action Summary. The Board received the report without comment. President Pro Tern Williams President Pro Tern Williams and Member Pilecki reported on the November 5, 2013 Human Resources Committee meeting and reported on the Action Summary. Member Causey expressed concern with the Board's previous discussions to delegate authority to the General Manager to revise job classifications. He observed that the recent proposed changes to some job classifications seemed to. be substantial and believed that, at least for department heads, the Board should review and concur with any revisions. He stated his opinion that, since directors are engaged with the General Manager and the Board, the Board needs to understand their roles within the organization and be notified of any changes. Staff confirmed that the matter will return to the Board for discussion at a later date. 2) Consider (1) forming an ad hoc committee to review the proposed terms of an agreement with CoCo San Sustainable Farm for lease of a portion of the District's Kiewit property in Martinez, and (2) appointing two Board Members to serve on the committee President Pro Tern Williams stated that this item was a follow -up to the Board's consideration of forming an ad hoc committee on October 3, 2013 and District Counsel Kent Alm's report on October 17, 2013 announcing that the Board would formally be asked to consider the matter. President Pro Tern Williams called for volunteers to sit on the Committee. Members Causey and Pilecki responded. It was moved by Member McGill and seconded by President Pro Tern Williams to form an ad hoc committee for the purpose stated and appoint Member Causey and Member Pilecki to serve on the committee. Motion passed by the following vote of the Board: M CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: None ABSENT: Members: Nejedly 3) Announcements Member McGill provided a written report covering Announcements and other meetings. He also announced later in the meeting that he would be attending a November 15, 2013 reception hosted by the East Bay Leadership Council, in honor of the opening of the Caldecott Tunnel's fourth bore. 6. BUDGET AND FINANCE a. CONSIDER RECOMMENDATION OF THE DISTRICT'S DEFERRED COMPENSATION ADVISORY COMMITTEE TO CONSOLIDATE MANAGEMENT OF THE DISTRICT'S 457 AND 401(A) DEFERRED COMPENSATION PLAN ASSETS UNDER ONE CARRIER, ICMA -RC; APPROVE AN ADMINISTRATIVE SERVICES AGREEMENT BETWEEN THE DISTRICT AND ICMA -RC; AND AUTHORIZE STAFF TO EXECUTE THE APPROPRIATE DOCUMENTS. Finance Manager Thea Vassallo introduced the District's ICMA -RC representative and Retirement Plans Specialist Kim Hammond and Managing Director of New Business Development Laura Heese, of the proposed Transition Team. Ms. Vassallo stated that ICMA -RC had 742 active and inactive members in its 457 and 401(a) plans, compared to 166 at Nationwide 457 and PST (including temporary workers), and 32 at MassMutual. ICMA -RC also totaled $74,127,800 of the $85,296,425 balance of the three carriers' plans combined. Ms. Vassallo recalled that the Deferred Compensation Advisory Committee, consisting of herself as Chairperson and representatives from each of the District's four departments, met with ICMA -RC in June 2012 to discuss the carrier's proposed annual credit back to the participants of $90,000. At the time, the Committee voted unanimously that the District and its participants would be better served by consolidating the three carriers. After the Budget and Finance Committee reviewed the 457 and 401(a) Benchmark Study results by a consultant, Mr. Jon Chambers of Schultz Williams Lawson Chambers, the Budget and Finance Committee recommended that Mr. Chambers negotiate better fee pricing and fund lineup with ICMA -RC. In June 2013, an alternative with a significant fee reduction for all participants was chosen. The Budget and Finance Committee has since reviewed the consolidation as currently proposed by staff at its November 4, 2013 meeting and recommended it for Board approval. 9 None. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 Member McGill, Chair of the Budget and Finance Committee, noted that the Budget and Finance Committee reviewed the matter extensively, and noted that fiduciary responsibility remains with the Board at all times. He stated that he would be prepared to move the item, subject to the administrative services agreement being approved in form by District counsel. It was moved by Member McGill and seconded by Member Pilecki to consolidate management of the District's 457 and 401(a) Deferred Compensation Plan assets under one carrier, ICMA -RC; approve an Administrative Services Agreement between the District and ICMA -RC; and authorize staff to execute the appropriate documents, subject to final review by the District's legal counsel. Motion passed by the following vote of the Board: AYES: Members: Causey, McGill, Pilecki, Williams NOES: Members: None ABSENT: Members: Nejedly 7. EMERGENCY SITUATIONS REQUIRING BOARD ACTION 8. SUGGESTIONS FOR FUTURE AGENDA ITEMS Member McGill suggested that the Board may want to obtain more information and take a position regarding San Jose Mayor Chuck Reed's recent pension initiative to change the Constitutional ruling of when certain benefits become vested. Member McGill recalled that the Board previously voted to oppose State Water Bonds but, since the issue may re -arise in 2014, the Budget and Finance or Enterprise Committee may want to review it for the Board to possibly re- evaluate its position on the matter. Member Causey requested that the Board receive a report on the pros and cons of moving to a two -year budget process and that the reserve policy and cash flow reports return to the Board for further discussion. He suggested that the Board may want to consider adopting rates in January, to be effective July 1, and possibly hold the hearing in the evening to allow more members of the public to attend. General Manager Roger Bailey stated that staff will do a cost of service study and report the findings to the Board. Member McGill asked for a report regarding the Howard Jarvis Taxpayers Association's complaint about a water district's Proposition 218 notice. The court in that case ruled in the district's favor, stating that it could not be rolled back because the district needed the funds to operate. 7 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of November 7, 2013 9. ADJOURNMENT There being no further business to come before the Board, President Nejedly adjourned the meeting at 3:39 p.m. David R. Williams President Pro Tem of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Es3