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Home My WebLink About06.a. Hold public hearing to conduct annual review of Board Member compensation and benefits(9-Q. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 20, 2014 Subject: PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS Submitted By. Initiating Dept. /Div.: Elaine R. Boehme Administration /Secretary of the District Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION. 1 i vLJ vv K. Alm Roger S. Bailey Counsel for the Distri General Manager ISSUE: In accordance with Resolution 2012 -018, the Board must conduct an annual review of Board Member compensation and benefits at a public meeting held during the first quarter of each calendar year. RECOMMENDATION: Conduct the annual public hearing to review Board Member compensation and benefits. If changes are desired, consider (1) adopting an ordinance amending Title 2, Administration, of District Code Section 2.04.030, "Compensation of Board Members;" or (2) 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% per year since the last increase in 2012, bringing the total compensation per day of service to $203.50 rather than the current $185.) ALTERNATIVES /CONSIDERATIONS: The Board may choose not to change its compensation or benefits. BACKGROUND: 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 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. In March 2013, the Board held the annual public hearing and made no changes to its compensation. POSITION PAPER Board Meeting Date: March 20, 2014 subject. PUBLIC HEARING TO REVIEW BOARD MEMBER COMPENSATION AND BENEFITS Staff has updated its annual survey of other local agencies with the information recommended by the Grand Jury, i.e. meeting fees, health care insurance costs, pension, deferred compensation, life insurance, cell phone and internet (ATTACHMENT A). Staff has also updated the chart showing where Central San's meeting stipends fall in comparison other agencies (ATTACHMENT B). At the public hearing, 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 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. COMMITTEE RECOMMENDATION: The Administration Committee reviewed the information at its meeting on Tuesday, March 11, 2014. The Committee recommended no change at this time to Board compensation or benefits. 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; 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. Attached Supporting Documents: A. Survey of Board Member Compensation and Benefits, January 2014 B. Comparison of Other Agencies' Board Meeting Stipends C. Draft Ordinance (if change in meeting stipend is desired) N. IADMINSUPIADMINID IST- SECIBOARDICOMPENSATION- STIPENDIANNUAL REVIEW OF BOARD COMPENSATION120141PP -Hold PH re Bd Compensation.doc Page 2 of 2 Board of Directors Compensation and Benefits Survey 2014 ATTACHMENT A N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Medical Dental Life Insurance Stipend /Max. Agency Provides Deferred Cell Computers/ Agency Compensable Board Member / � Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation Directors District contribute 6.83% provides iPads of their salary on for Directors a pre -tax basis District pays for premium for up to that want and the District Kaiser Family. District pays for them East Bay Municipal $1,154 per month HealthNet and Anthem BC for the District pays premium contributes No District (currently 3). and 2 meetings for Director and eligible No 37.74% (as of No Yes Utilit y District per month Director only and requires 15% dependents July 2011). contribution For those that premium contribution for double and use their family coverage. Directors are personal eligible to retire Wads, the at age 54 with minimum of five District pays a $50 stipend. years of service. CaIPERS retirement (for District pays Directors elected West Count y $265.35 per premium for before 7 -1 -94 District meeting /6 District pays flat rate of up to $1500 month for family medical, $85,000 policy for No District Wastewater meetings per ° ° dental premium is shared 90 %District /10 %director. Board Member only). District contribution No provides iPads Yes District month only. (Age reduction pays 5% of to directors schedule applies.) participating directors' 8% contribution. N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Board of Directors Compensation and Benefits Survey 2014 N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Medical Dental Life Insurance Stipend /Max, Agency Provides Deferred Cell Computers/ Agency Compensable Board Member/ Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation District pays Yes, but one Member CaIPERS serves on East Bay contribution Dischargers $260 per (Board Authority (EBDA), Oro Loma Sanitary meeting /6 District pays premium for up to two- District pays premium Member +District 6.32% of salary and another serves party Blue Shield HMO ($1,673.18 per for up to family No District No No District meetings per month) coverage -Delta Dental portion) for contribution on the Alameda month eligible Board County Waste Members Management elected before Authority (Stop 1995 Waste Board). No. Two Members serve on the City $218 per Council, and one Napa Sanitation meeting /6 District pays No District $20 allowance serves on the Board No No premium for No N/A District meetings per $28,000 policy contribution for iPad fees of Supervisors. month Those entities provide primary benefits. Yes, but one member $212.10 per District pays up to $827 per month for Board Member only; District pays for serves on EBDA and Union Sanitary meeting /6 $1628 per month for Board Member +1; $2002 per month for coverage of $10,000 District is compensated by for Board Member; No $50 /month No provides iPads District meetings per Family for medical, dental, vision; allocated as follows: 100% $5,000 for spouse to directors the EBDA month ° dental, 100% vision, and balance to medical plans Commission for and dependents meetings attended. N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Board of Directors Compensation and Benefits Survey 2014 \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Stipend /Max. Medical Dental Life Insurance Agency Provides Deferred Cell Computers/ Agency Compensable _ Board Member/ Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation District pays up to $1,281.21 for $205.07 per Mt. View Sanitary meeting /6 Board Member &family. Coverage is No District through PERS. (PERS requires No No No No No Yes District meetings per participation in a District - sponsored contribution month retirement plan. See Deferred Comp) $195 per Agency pays premium Inland Empire meeting /10 Agency pays premium for up to famil y for up to famil y Agency pays No District for the CaIPERS health plan coverage for Delta premium for No No Yes yes Utilities Agency g y meetings per of their choice Dental PPO or Western $30,000 policy contribution month Dental Central Contra $185 per District pays premium for up to family District pays premium District pays meeting /6 coverage for Kaiser, Health Net HMO, for up to family premium for No District Costa Sanitary meetings per or Health Net PPO ** Cafeteria Plan coverage for Delta $50,000 /$1,500 No contribution No No Yes District month offered in lieu of medical coverage Dental PPO policy \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Board of Directors Compensation and Benefits Survey 2014 N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Stipend /Max. Medical Dental Life Insurance Agency Provides Deferred Cell Computers/ Agency Compensable Board Member/ Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation $176.34 per District pays premium for up to Yes, but one Member meeting /6 Director &Spouse, 1 participating serves on East Bay member, 3/1/12 Board member to meetings per share 50% cost of premium increase District pays premium Dischargers month (The Board for up to family Authority (EBDA), Castro Valley is in the process from 2012 to 2011 (The Board is in coverage for Delta No District and another serves the process of changing this to having No No No No Sanitary District y of increasing their Health Benefits available but at full Dental PPO (The same contribution on the Alameda stipend to cost to the Board Member; in change applies here as County Waste $200.00 meeting retirement, the District would pay the noted under Medical) Management but it is not Authority (Stop minimum ER contribution which is finalized as yet) $116 in 2014) Waste Board). Yes. By $170 per Administrative Policy meeting /approx. 4030, Board 20 meetings per District pays premium for CalPERS District pays premium District pays Members cannot year (1 Board collect benefits from Delta Diablo meeting per Medical (HMO or PPO) up to the for up to family premium for No No District No No another public greater of either the Blue Shield or coverage; $125,000/$2,000 contribution month +about 8 agency, and do not. Kaiser HMO. family rate Self- insured Plan policy Committee All Board Members meetings per elect to receive year) coverage only from the District. N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Board of Directors Compensation and Benefits Survey 2014 \ADMINSUP \ADMIN \DIST- SEC \BOARD\ COMPENSATION - STI PEN D \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Stipend /Max, Medical Dental Life Insurance Agency Provides Deferred Cell Computers/ Agency Compensable Board Member/ Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation Existing Board Members are frozen at 2012 rate of District paid premium for up to Kaiser Family; Board Member is Optional, if Ironhouse Sanitary $170 per meeting /6 responsible for any increase above that rate going forward for chosen to medical, dental and vision. New Board Members are covered No No enroll, cost to No No Yes District meetings per for self only at Kaiser rate. Any increase above the rate of 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 $586 matches Board Dublin San Ramon $146 per (Board Member only), $1172 District pays premium District pays for up Member meeting /4 (Member + 1 Dependent), $1,524 for up to Board to $50,000 basic life No contributions No No Yes Services District meetings per (Member + 2 Dependents); rates set Member and eligible insurance to 457 plan by month dependents 25 %, up to $10 by resolution annually per calendar month $143.59 per meeting /6 meetings per month. No Yes, if District pays health expense automatic reimbursement of $5,695 (2014 4s) participating No. The City Fairfield - Suisun increase, but can (increased every January by CPI -W for see medical health No District in the provides primary Sewer District be increased up to SF- Oakland Metropolitan area 12 expense No No contribution No paperless benefits as the Board 5% in January of reimbursement agenda and Members serve as any year by Board months ending in October of each request a the City Council. Year) action. Left at loaner iPad $143.59 at 1/27/14 Board mtg. \ADMINSUP \ADMIN \DIST- SEC \BOARD\ COMPENSATION - STI PEN D \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Board of Directors Compensation and Benefits Survey 2014 ** All Directors pay the difference between highest- costing HMO to PPO if PPO selected 6 N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final Stipend /Max. Medical Dental Life Insurance Agency Provides Deferred Cell Computers/ Agency Compensable Board Member/ Board Member/ Pension Primary Benefits or Board Member/ Spouse /Family Comp Phone iPads Mtgs Spouse /Family Spouse Compensation $100 per Contra Costa meeting /10 District pays premium for up to family District pays premium District pays for No District Water District meetings per coverage for Kaiser, Health Net HMO, for Delta Dental for $10,000 policy No contribution No No Yes or Anthem Blue Cross PPO family month $100 per meeting per month, except No. The City Vallejo Sanitation for the appointed provides primary and Flood Control County Board of No No No No No District No No benefits as the Board Supervisor who contribution District receives $100 per Members serve as the City Council. meeting per month ** All Directors pay the difference between highest- costing HMO to PPO if PPO selected 6 N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \SURVEYS \2014 \Central San 2014 BOD Compensation and Benefits Survey - Final ATTACHMENT B COMPARISON OF OTHER AGENCIES' BOARD MEETING STIPEND AGENCY MEETING STIPENDNEAR MAX NO. OF MTGS PER MONTH West County $265.35 1/5/14 6 Wastewater District $265.35 2013 $265.35 2012 Oro Loma Sanitary District $260 1/5/14 6 $260 2013 $260 2012 Napa Sanitation District $218 1/5/14 6 $174 2013 $174 2012 Union Sanitary District $212.10 1/5/14 6 $212.10 2013 $212.10 2012 Mt. View Sanitary District $205.07 1/5/14 6 $205.07 2013 $205.07 2012 Inland Empire Utilities Agency $195 1/5/14 10 $195 2013 $195 2012 Central Contra Costa Sanitary $185 1/5/14 6 District $185 2013 $185 2012 $221 2011 $221 2010 $221 2009 $221 2008 $221 2007 Castro Valley Sanitary District $176.34 1/5/14 6 $176.34 2013 $176.34 2012 Delta Diablo Sanitation District $170 1/5/14 6 $170 2013 $209 2012 N:\ADMINSUP\ADMIN \DIST -SEC\ BOARD \COMPENSATION- STIPEND\ANNUAL REVIEW OF BOARD COMPENSATION\2014\ATT. B -Board Compensation Comparison Survey 2014.doc Page 1 of 2 AGENCY :MEET 1I�C� 3TIPENDIYIIAR M/C NCC. OF MiGS IPR II;NTH Ironhouse Sanitary District $170 1/5/14 6 $170 2013 $170 2012 Dublin San Ramon Services $146 1/5/14 10 District $146 2013 $146 2012 Fairfield Suisun Sewer District $143.59 1/5/14 6 $143.59 2013 $143.59 2012 Vallejo Sanitation and Flood $100 1/5/14 $100 flat fee per Control District $100 2013 month, regardless of $100 2012 number of meetings EBMUD $1154 1/5/14 Monthly stipend $1120 2013 (governed by $1120 2012 different regulations) January 2014 N:\ADMINSUP\ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEN MAN NUAL REVIEW OF BOARD COMPENSATION\2014\ATT. B -Board Compensation Comparison Survey 2014.doc Page 2 of 2 ATTACHMENT C 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 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 20, 2014 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. 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 20, 2014, 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 20th day of March 2014, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Countersigned: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to Form: Kenton L. Alm, Esq. District Counsel