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Home My WebLink About06.d.1)b) Action Summary-Administration Committee 04-20-15Jl Central Contra Costa Sanitary District REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADMINISTRATION COMMITTEE ACTION SUMMARY Chair Williams Member McGill Monday, April 20, 2015 8:00 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California BOARD OF DIRECTORS: MICHAEL R. MCGILL President TAD J. PILECKI President Pro Tem PAUL H. CAUSEY JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228 -9500 FAX: (925) 372 -0192 www.centralsan.org PRESENT: Chair David Williams and Member Mike McGill, General Manager Roger Bailey, Deputy General Manager Ann Sasaki, Director of Administration David Heath, Director of Engineering and Technical Services Jean -Marc Petit, Human Resources Manager Teji O'Malley (not present for Item 4.), Secretary of the District Elaine Boehme, District Counsel Kent Alm, Purchasing & Materials Manager Stephanie King (not present for Item 4. and left after Item 8.), Risk Management Administrator Shari Deutsch, Finance Administrator Todd Smithey (not present for Item 4.), and Assistant to the Secretary of the District Donna Anderson (not present for Item 4.). 1. Call Meeting to Order Chair Williams called the meeting to order at 8:00 a.m. 2. Public Comments None. 3. Announce closed session (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held regarding Item 4.a. The closed session commenced at 8:01 a.m. COMMITTEE ACTION: Received the announcement. Administration Committee Action Summary April 20, 2015 Page 2 4. Closed Session a. Conference with Legal Counsel - Anticipated Litigation - significant exposure to litigation pursuant to Government Code Section 54956.9(b): • 69 La Espiral in Orinda. COMMITTEE ACTION: Held the closed session. 5. Report out of closed session The closed session concluded at 8:51 a.m. COMMITTEE ACTION: District Counsel reported that the Committee gave him instructions and directed staff to bring the issue of the District's self - insurance retention to the full Board for review. 6.* Receive update on contract for general legal services Mr. Alm referred to the draft rate sheet presented for discussion purposes that was included with the agenda material. He proposed for discussion purposes that the contract hourly rate be increased from the current rate of $315 to $360 for his services. Mr. Alm said that rate was substantiated when compared with the rates charged by other firms for similar services, including the District's current labor counsel, who currently bills out at $375 per hour, and will increase to $390 next year. Director of Administration David Heath distributed a spreadsheet, indicating legal services provided to the District by Meyers Nave in 2013 and 2014, broken down by level of service and department, in terms of both hours and fees, excluding retainers (copy attached). Member McGill said that while he did not dispute that other law firms may charge more, the Committee has not been presented with enough convincing data to support raising rates by the amount sought. He said further justification would be needed if he were to make such a recommendation. Chair Williams suggested that since the current contract does not expire until August 1, staff survey the rates paid by other agencies that utilize outside legal services similar to Central San so that an apples -to- apples comparison may be made. Member McGill supported this approach. COMMITTEE ACTION: Received update and requested additional data comparing rates paid by other agencies. Administration Committee Action Summary April 20, 2015 Page 3 7. Receive update on Strategic Plan Tracking General Manager Roger Bailey referred to the material contained in the agenda packet which was the initial tracking report of the Key Performance Indicators associated with the District's Strategic Plan during the first and second quarters of Fiscal Year 2014 -15. He said staff planned to present a report to the full Board at the end of the current fiscal year. COMMITTEE ACTION: Received the update. 8. Receive summary of the District's current, informal practices with regard to local vendor preference Mr. Bailey noted that the agenda packet contained an informational memorandum requested at the February 19, 2015 Board meeting regarding the informal practices employed by the District that help to encourage local vendor participation in District business. Member McGill said he was pleased that such a process exists and, while not a "policy" per se, he supported continuation of the practices described in the memorandum. Purchasing & Materials Manager Stephanie King responded to several questions from Chair Williams regarding several bullet points in the memorandum, after which he asked if the Committee needed to take any action. Mr. Bailey said no. COMMITTEE ACTION: Received the summary. 9. Review salary and benefit data excluding the unfunded actuarial accrued liability (UAAL) component Mr. Bailey noted that at the January 27, 2015 meeting, when discussing the components of the 2014 Employee Total Compensation Template, the Committee instructed staff to separate the approximate UAAL component from the line item entitled "Pension Payments to CCCERA "because it overstates the amount attributable to any particular employee because approximately two - thirds of the Pension Payments to CCCERA is for the UAAL paid by the District on behalf of retirees as well as current employees. The information included with the agenda packet helps correct the impression that individual employees actually receive the entire amount reported as attributable to them. Mr. Bailey added that although the District has attempted to achieve efficiencies in terms of staffing, the unit cost per employee rises when the UAAL amount is lumped into the pension compensation figures. Separating the amount should help prevent this misrepresentation. Administration Committee Action Summary April 20, 2015 Page 4 Chair Williams noted that when inquiries are received by outside parties, the District should continue to be fully transparent, including explaining how the UAAL affects compensation reporting. COMMITTEE ACTION: Reviewed the information and requested that staff further break down the UAAL component by normal pension cost, voluntary UAAL prepayments, and health care costs. 10. Review Position Paper to consider adopting new resolution setting forth and delegating certain authorities to the General Manager and rescinding prior Resolution 2011 -065 Chair Williams said that upon further reflection, he was not supportive of including items 2 and 3 of Section 10 of the proposed resolution. He said that the creation of new job classifications and setting salary schedules typically fall within the purview of the Board at public agencies, and expressed concern about potential long -term ramifications of delegating such authority. Because there are very few occasions when new classifications are created and /or positions deleted, bringing them to the full Board for approval would not be burdensome on staff. Therefore, he suggested removing those two items from the proposed resolution. Member McGill said he was comfortable transferring authority for such actions to the General Manager under the proviso that they be within the approved budget and that they be reported to the Board. Mr. Bailey said he was comfortable either way, and had no problem continuing to bring such items to the full Board as they arise. COMMITTEE ACTION: Requested that items 2 and 3 of Section 10 of the proposed resolution be removed, after which Board approval was recommended. 11. Standing Items a. Risk Management (discuss outstanding claims and new claims, if any, and receive Loss Control Report) Risk Management Administrator Shari Deutsch reviewed the status of outstanding claims with the Committee and responded to questions. COMMITTEE ACTION: Received the report. Administration Committee Action Summary April 20, 2015 Page 5 b. Receive update on ongoing Contra Costa County Employees' Retirement Association (CCCERA) audit — No staff report None. C. Planning for 2017 Labor Negotiations 1) Review Gantt chart of activities leading up to 2017 Labor Negotiations Human Resources Manager Teji O'Malley reviewed the additions to the Gantt chart made at the Committee's request. Mr. Bailey said several Board Members had requested that the Gantt chart be agendized for open session discussion at a future Board meeting. COMMITTEE ACTION: Reviewed the chart. 2) Announce upcoming Closed Session on benchmarking issues at April 23, 2015 Board meeting COMMITTEE ACTION: Received the announcement. d. Receive update on pending litigation re AB 197 (Public Employers Pension Reform Act of 2013) (PEPRA) and CCCERA straddling issues - No staff report None. 12. Announcements a. Future scheduled meetings: Monday, May 11, 2015 at 8:00 a.m. Tuesday, May 26, 2015 at 8:00 a.m. Monday, June 8, 2015 at 8:00 a.m. b. Mr. Bailey announced that staff has been in discussion with Brent Ives about the scope and scheduling of the Board Governance Workshop desired by the Board Members. Mr. Ives will be attending the June 8 Administration Committee meeting, as well as meeting with Chair Williams and Member McGill separately the same day. COMMITTEE ACTION: Received the announcements. Administration Committee Action Summary April 20, 2015 Page 6 13. Suggestions for future agenda items None. 14. Adjournment — 10:07 a.m. Meyers Nave 66 (4and,w) Allocated Legal Hours (excluding retainers) Legal Fees (excluding Admin Env Svc Infrastructure CSO Plant Ops Negotiations Litigation TOTAL % Litigation Partner 25.9 16.5 34.0 4.5 3.0 0.0 143.9 227.8 63.2% Associate 37.6 42.6 8.3 11.1 0.0 0.0 301.8 401.4 75.2% Paralegal 0.6 0.0 0.0 0.0 0.0 0.0 47.0 47.6 98.7% 2014 ST 64.1 59.1 42.3 15.6 3.0 0.0 492.7 676.8 72.8% Partner 20.2 18.6 32.7 3.1 5.1 14.5 319.4 413.6 77.2% Associate 30 36.4 4 0 0 0 352.5 422.9 83.4% Paralegal 0 0 0 0 0 0 48.7 48.7 100.0% 2013 ST 50.2 55.0 36.7 3.1 5.1 14.5 720.6 885.2 81.4% Allocated Legal Fees (excluding retainers) Admin Env Svc Infrastructure CSO Plant Ops Negotiations Litigation TOTAL % Litigation Partner $ 8,474 $ 5,702 $ 11,734 $ 1,607 $ 945 $ - $ 44,622 $ 73,082 61.06% Associate $ 9,402 $ 10,937 $ 2,198 $ 2,940 $ - $ $ 73,132 $ 98,608 74.16% Paralegal $ 75 $ - $ - $ - $ - $ $ 8,457 $ 8,532 99.12% 2014 ST $ 17,951 $ 16,638 $ 13,932 $ 4,547 $ 945 $ - $ 126,210 $ 180,222 70.03% Partner $ 6,157 $ 5,624 $ 9,963 $ 946 $ 1,556 $ 4,423 $ 94,873 $ 123,540 76.8% Associate $ 7,050 $ 8,666 $ 940 $ - $ - $ - $ 81,577 $ 98,233 83.0% Paralegal $ - $ - $ - $ - $ - $ - $ 5,844 $ 5,844 100.0% 2013 ST $ 13,207 $ 14,290 $ 10,903 $ 946 $ 1,556 $ 4,423 $ 182,294 $ 227,617 80.1%