HomeMy WebLinkAboutADMINISTRATION MINUTES 06-20-17 .�o
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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
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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.