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HomeMy WebLinkAboutADMINISTRATION MINUTES 06-20-17 .�o 9odol d) Central Contra Costa Sanitary District REGULAR MEETING OF THE. BOARD OFDIRECTORS: CENTRAL. CONTRA COSTA PAULt,.CAUSEY SANITARY DISTRICT President ADMINISTRATION COMMITTEE '.�MES,�.NE'E°LY President Pro Tem MICHAEL R MCCILL w w I N .0 I ^ TAD J.PILECK! IVI J DAVID R.WILLIAMS PHONE: (925)228-9500 Tuesday, June 20, 2017 Fax. (925)372-0192 8:30 a.m, www.centrnlsan.org Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Mike McGill Member David Williams Staff.' Roger S. Bailey, General Manager Elaine R. Boehme, Secretary of the District Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration (left during Item 7.) Jean-Marc Petit, Director of Engineering & Techical Services Emily Barnett, Communication Services & Intergovernmental Relations Manager (left after Item 3.) Danea Gemmell, Planning & Development Services Division Manager (left after Item. 7.) Teji O'Malley, Human Resources Manager Thea Vasallo, Finance Manager (left after Item 7.) Thomas Brightbill, Senior Engineer (left after Item 7.) Shari Deutsch, Risk Management Administrator Donna Anderson, Assistant to the Secretary of the District 1. Call Meeting to Order Chair McGill called the meeting to order at 8:32 a.m. 2. Public Comments None. Administration Committee Minutes June 20, 2017 Page 2 3.* Follow-up discussion from May 26, 2017 meeting to consider proposed new Central San logo designs Ms. Barnett presented historical information on the District's current logo (attached) and distributed samples of the same two proposed new logo options as presented at the May 26, 2017 meeting. Member Williams stated a preference for option A. Chair McGill said that if he had to pick'between the two new logo options, he too would choose.option A. However, he asked if there was a way to blend option A with the existing logo and somehow incorporate the name "central San." For example, he asked what it would look like,to place the option A logo into the end of the pipe in the existing logo. Mr. Bailey noted that two reasons for changing the logo are the lack of name recognition as to the services provided by Central San, and the difficulty in pronouncing the District's full legal name. The name recognition issue for Central San is exacerbated because sewer services charges are placed on property tax bills rather than direct monthly billings. Ms. Barnett said that a high visual logo will be more beneficial in terms of customer.engagement and frust. Member Williams said the majority of central Sari customers do not know who Central San.is by the current logo. While he was comfortable with option A. he said the matter is not time sensitive and he.would be willing to look at some modified version of the current logo. Ms. Barnett said her staff will develop several options for modernizing the existing logo, including incorporating logo Option A. COMMITTEE ACTION: Directed staff to develop several additional logo options, including blending the District's current logo with logo option A, for review at a future meeting. 4. Follow-up discussion on earthquake insurance, including: a. Updated earthquake scenarios b. Results of the 2014 probable maximum loss study performed by insurance broker C. Information as to whether sister agencies carry earthquake coverage Ms. Deutsch reviewed highlights from the report included with the agenda materials, explaining that the District does not currently have earthquake insurance. The quotes obtained Were based on earthquake coverage and, to a lesser extent, flood coverage. Administration Committee Minutes ,June 20, 2017 Page 3 Chair McGill said that he was most concerned about potential flood damage at the Martinez facility. Ms. Deutsch stated that the Martinez facility is located in a flood,zone and adding more flood coverage would alter the pricing. Ms. Deutsch went on to explain that.the 2014 probable maximum loss study performed by the insurance broker took the District's assets and ran them against their claims experience; the study was not risk-based. She said a more meaningful analysis should instead look at site-specifr"c/earthquake fault-specific risk in relation to individual asset value. Ms. Deutsch said that at present central San self-insures for catastrophic losses up to $5 million and performs upgrades to individual assets to mitigate the risk of earthquake damage. She noted Federal Emergency Management Agency (FEMA) should not be considered a funding strategy because it.is contingent upon a presidential declaration, for which there is noguarantee. Member Williams said the quoted earthquake coverage does not make sense for Central San because the deductible would exceed the cost of the actual damage. For that reason, he said he was in favor of Ms. Deutsch's suggestion to conduct a sitelfa ult-specific evaluation and see how it may affect co veragelpremiums. chair McGill concurred with Member Williams that comprehensive earthquake coverage based on the quoted coverage is undesirable and, from a policy perspective, he agreed with the level.of analysis suggested by Ms. Deutsch as long as it can be done without a lot of extra staff time, Ms. Deutsch said that she sits on a steering committee that has assembled the updated hazardlloss scenario data needed to perform the analysis and that staff could prepare a high-le vel assessment looking at specific scena rids (e.g. various earthquake magnitudes) to assess the potential impact on certain assets for cost comparison. Mr. Bailey said the analysis will also take into consideration seismic improvements that have been made or are in progress. In order to be prudent in a valua ting this matter, the committee agreed to revisit the issue once the additional analysis has been conducted. COMMITTEE ACTION: Requested staff to conduct a targeted risk analysis to include flood and earthquake scenarios for presentation at a future meeting. Administration Committee Minutes June 207 2017 Page 4 5. Conduct biennial review of the following Board Policies: a. BP 018 -- Sick Leave for Temporary Employees b. BP 020 —.Minute Style and video Recording of Board Meetings COMMITTEE ACTION: Recommended no changes to either policy. 0. }review the following proposed new Board Policies: a. BP 029 — Debt Management and Continuing Disclosure (follow-up discussion from June 0, 2017 meeting) Member Williams.asked whether the issue of defining how much funding is provided by debt versus.rates should be part of the policy rather than the procedure. Mr. Bailey said he has seen the debtlrate split specified in other agencies'debt policies. Chair McGill asked about the origin of the 120% figure related to expected average useful life of an asset (p. 5 of 20 in the draft procedures), Mr. Leiber said it is an IRs requirement meant to avoid having debt longer than the useful life of the asset. He said for Central San that is not really an issue because its assets are so long lived. In response to a question from chair McGill as to whether the 120% figure could be more stringent, at say 100%, Mr. Bailey said if that were to be the case, it would be preferable to make that part of the policy rather than the procedure. COMMITTEE ACTION: Requested that staff bring back the draft policy with the following items incorporated into the policy rather than the procedure: 1) debt coverage ratio, and 2) funding ratio for debt versus-cash. Also, if it is desired to utilize a more stringent percentage than the lave requires with respect to the expected average useful life of an asset, it should be so stated in the policy. b. BP 030 — cost of service studies COMMITTEE ACTION: Reviewed and recommended Board approval. 7. Recap of Central San Academy Spring 2017 session Ms. Gee reviewed the presentation included with the agenda materials. Member Williams requested information on the number of hits the District's website gets. Administration Committee Minutes June 20, 2017 Page 5 It was noted.that the costs of putting on the Academy were substantially lower this year than last primarily due to the fact that the currr`culum was fairly well. established the prior year, and electronic distribution of agenda material to participants. Mr. Bailey said that, in general, the public is interested in how their government works. He believes that if the Academy were continued, there will continue to be interest. COMMITTEE ACTION: Recommended Board approval for continuing the Central San Academy on an ongoing basis once a year with annual status reports presented to the full Board. 8. Review Gantt chart of activities leading up to 2.017 Labor Negotiations COMMITTEE ACTION: Reviewed the Gantt chart. 9. Announcements a. Future scheduled meetings: Tuesday, July 11, 2017 at 8:30 a.m. Tuesday, August 1, 2017 at 8:30 a.m. Monday, August 21, 2017 at 8:30 a.m. b. Mr. Bailey reported that the repair work to the damaged sewer lines on Miner Road in orinda is now complete. 10. suggestions for futu re agenda items None. 11. Adjournment— at 10:27 a.m. * Attachment Item 3. (Committee Handout) Central San Logos 1960's There was the original logo, and one modification during the 60's (no specific years). Original Logo Version two added lines to create a pipe effect. 1970's The logo had a slight modification with a change in font (no specific year). Version three changed the font. 1980's The logo was modified for the last time in 1987. _-_ Version four was redesigned to include the outline of Mt. Diablo.