Loading...
HomeMy WebLinkAbout03.a.3) Approve minutes of January 20, 2015 meetingMINUTES OF THE SPECIAL MEETING 3 OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON JANUARY 20, 2015 The Board of Directors of the Central Contra Costa Sanitary District convened in a special meeting in the McHale Room at the Pleasant Hill Community Center, 320 Civic Drive, Pleasant Hill, County of Contra Costa, State of California, at 8:00 a.m. on Tuesday, January 20, 2015. President McGill called the meeting to order and requested that the Secretary call roll. PRESENT: Members: ABSENT: Members: None. 1. ROLL CALL Causey, Nejedly, Pilecki, Williams, McGill None 2. PUBLIC COMMENTS 3. BOARD COST OF SERVICE STUDY WORKSHOP a. OPENING REMARKS General Manager Roger Bailey made opening remarks and introduced Doug Bean of Raftelis Financial Consultants, Inc. who served as facilitator for the workshop. b. RESERVE POLICY • Review discussions from November 17, 2014 Workshop • Review draft Fiscal Reserve Policy. Reviewed by Administration Committee. Director of Administration David Heath recapped the straw man reserve levels tentatively set by the Board at the prior workshop on November 17, 2014. He said staff and Raftelis recommended a 6 -month operating reserve and a 12 -month working capital reserve (as opposed to 5 -month and 6 -month reserves, respectively, under the straw man levels), with a five -year time span for reaching the target reserve levels. CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 20, 2015 C. UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) ASSUMPTIONS Finance Manager Thea Vassallo gave a presentation on UAAL assumptions and UAAL valuation as of December 31, 2013, noting that the District is currently 63 percent funded with regard to the UAAL. She presented information on various UAAL paydown options and their effects on the UAAL balance, noting that the American Academy of Actuaries recommends target minimum funding of 80 percent. Member Pilecki asked that a column indicating funding percentages be added to the table illustrating the effect of various levels of UAAL paydown options. d. UPDATED CAPITAL IMPROVEMENT BUDGET (CIB) /CAPITAL IMPROVEMENT PLAN (CIP) PRESENTATION • Historical CIP Investments • Fiscal Year (FY) 2015 -16 CIB • Ten -Year CIP Director of Engineering Jean -Marc Petit gave a presentation on past CIP investments over the past 10 years, the proposed CIB for the coming year, the projected CIP over the next 20 years broken down by the four main drivers that impact the CIP, and a breakdown of capital expenditures by program in the draft 10 -year CIP. Member Pilecki asked staff to provide information as to the absolute minimum funding that would be required for the capital program, taking into consideration regulatory and safety requirements and the recent settlement with California River Watch. e. STAFFING NEEDS ASSESSMENT • Results of Staffing Needs Assessment • New Organizational Chart • Proposed organization and staffing enhancements Mr. Tom Am of Raftelis presented a proposed organizational chart which in essence moves people and functions within the District to achieve balance between efficiency and effectiveness, with a focus on becoming a learning organization, with no change in the overall number of full -time employees. He said the current three - department model, each managed by a Department Director, works well under the new organizational structure. Mr. Am presented excerpts from the draft Organization and Staffing Plan included with the agenda packet and briefly summarized the major changes envisioned under the plan. He noted that the District's organizational structure is highly focused on customer service, which comes at a cost in terms of labor. The proposed staffing plan supports baseline staffing needed to maintain the high quality customer service 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 20, 2015 the District expects, the general concept being that when needs exceed the baseline, outside contractors may be needed. Member Causey suggested that an item be added to the parking lot to evaluate whether there is value added from a customer service standpoint to utilizing full - time employees for inspection services versus outside contractors. Member Causey also suggested adding an item to the parking lot to clarify the distinction between the various clerical /administrative support positions within the District. COST MODEL SCENARIOS • Assumptions • Variables • Presentation of model with several scenarios Mr. Sudhir Pardiwala of Raftelis gave a presentation illustrating sewer service charge rate increases associated with various financial scenarios developed using key assumptions which he explained. He also presented information on the pros and cons of creating a separate enterprise fund for recycled water. Member Causey suggested that a report item be added to the parking lot regarding the amount of time staff anticipates it will take for the various fiscal reserve targets to be met, including the underlying assumptions. Member Causey also suggested that staff prepare a report on the total cost of the recycled water program, including both operation and capital costs. g. SUMMARY OF EMPLOYEE SURVEY RESULTS Mr. Am explained responses to Questions 8, 9 and 10 of the employee survey circulated in conjunction with the Staffing Needs Assessment. h. CONCLUSIONS /NEXT STEPS • Reserves • UAAL • FY 2015 -16 CIB • Staffing Plan • Rate Structure Mr. Bailey polled the Board Members with regard to the above topics in order to provide direction to staff in advance of the Financial Planning Workshop scheduled for March 5, 2015. With regard to fiscal reserves, it was generally agreed that a policy should be established and that future scenarios should be run using the staff/Raftel is-recom mended target levels. Several Board Members were 3 CENTRAL CONTRA COSTA SANITARY DISTRICT Board Minutes of January 20, 2015 amenable to the first two years of Scenario 1a, but with a $2.5 million annual payment for the next two years toward the UAAL. With regard to the CIB, it was the general consensus that it needs to be reduced. The feedback regarding the proposed Staffing Plan was for the General Manager to move forward based on feedback received from the Board Members. There were no announcements. 4. ANNOUNCEMENTS 5. ADJOURNMENT There being no further business to come before the Board, President McGill adjourned the meeting at 2:00 p.m. Michael R. McGill President 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 4