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HomeMy WebLinkAboutADMINISTRATION MINUTES 08-21-17Il Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4.392 REGULAR MEETING OF THE BOARD orDIRECTORS CENTRAL CONTRA COSTA PAUL CAUSEY President SANITARY DISTRICT JAMES A. NEJEDLY ADMINISTRATION COMMITTEE President Pro Tern MICHAEL R. MCGJLL MINTAD J PJLECKJ U T E S DA VJD R. WJLLJAMS PHONE: (925) 228-9500 8:3 0 a. m. FAX.- (925) 372-0192 www.centralsan.org Executive Conference Room 5019 Imhoff Place Martinez, California C':nmmittPP- Chair Mike McGill * Member David Williams* Invited Guest: Todd Anderson, CH2M* Staff. Roger S. Bailey, General Manager* Kenton L. Alm, District Counsel* (left after closed session) Elaine R. Boehme, Secretary of the District Ann Sasaki, Deputy General Manager* Phil Leiber, Director of Finance and Administration Jean -Marc Petit, Director of Engineering & Technical Services* (left after closed session) Danea Gemmell, Planning & Development Services Division Manager* (left after closed session) Teji O'Malley, Human Resources Manager Thea vassallo, Finance Manager Dan Frost, Senior Engineer* Shari Deutsch, Risk Management Administrator* Todd Smithey, Finance Administrator* Donna Anderson, Assistant to the Secretary of the District * Attended closed session 1. Call Meeting to Order Chair McGill called the meeting to order at 8:31 a.m. 2. Public Comments None. 3. Announce Closed Session District Counsel Kent Alm announced that there would be a closed session for Item 4.a., and the Committee entered into closed session at 8:32 a.m. 4. Closed Session a. Closed session pursuant to Government Code Section 54957(a) -Threat to public services orfacilities 5. Report Out of Closed Session The closed session ended at 9:55 a.m. and Mr. Alm reported that no reportable action was taken during closed session. 6. Items for Committee Recommendation to Board a. Review draft Position Paper to approve the following: 1) Proposed revisions to Board Policy No. BP 005 - Statement of Investment Policy- and 2) Revised and/or new Investment Guidelines Documents (IGD) related to the Public Agencies Post -Employment Benefits Trust, which includes both of the following: • Revised IGD for the existing GASB 45 Other Post -Employment Benefits Trust (OPEB Trust), and • New IGD for the recently created Pension Prefunding Trust Ms. Vassallo explained that the proposed revisions to BP 005, including a reference to the IGD for the new Pension Prefunding Trust, are consistent with the changes suggested by the Committee at the last meeting. She clarified that there remains a single trust managed by PARS, as in the past, but it now contains essentially two "buckets," one for the OPEB Trust, and the other for the Pension Prefunding Trust. Each "bucket" (aka sub fund) has its own IGD. The Committee suggested that it would be helpful to incorporate more clear wording in the position paper that goes to the full Board to explain this concept. Mr. Leiber explained that the Pension Prefunding Trust has a moderately conservative investment philosophy as approved by the Board on July 20, 2017. Staff recommended this philosophy because the investment horizon for the funds is potentially shorter than under the OPEB Trust. Mr. Leiber also explained that a noteworthy change in the OPEB Trust IGD is to allow for a separately managed debt account, which will result in lower fees on invested funds. COMMITTEE ACTION: Reviewed and recommended Board approval of the following, with clarifying wording to be added to the accompanying Position Paper: 1. BP 005 — Statement of Investment Policy, and 2. IGDs related to the Public Agencies Post -Employment Benefits Trust as follows: • Revised IGD for the OPEB Trust, and • New IGD for the Pension Prefunding Trust 7. Information Items a. Receive information on Contra Costa County Employee's Retirement Association's (CCCERA) valuation as of December 31, 2016 Mr. Smithey explained the memo included with the agenda materials. In response to a question from Chair McGill regarding what level of funding is desirable to avoid becoming "superfunded, " Mr. Smithey said the it varies from agency to agency, but generally ranges between 80% to 90%, with the latter being the norm. COMMITTEE ACTION: Received the information. 8. Other Items a. Risk Management — Loss Control Report; discuss any outstanding claims and new claims, if any Due to time constraints, this item was continued to the next meeting. COMMITTEE ACTION: Not applicable. b. Fiscal Year 2016-17 Risk Management Annual Report Member Williams said he had reviewed the report included with the agenda materials and thought it was excellent. Due to time constraints, however, the report was not discussed and it was determined that it should proceed directly to the Board. COMMITTEE ACTION: Due to time constraints, requested the item be presented to the full Board without Committee input. C. Conduct biennial review of Board Policy No. BP 003 - Hiring of District Retirees COMMITTEE ACTION: Concurred with staff that no changes are needed. d. Fiscal Year 2016-17 Strategic Plan Annual Report - Summary of Achievements COMMITTEE ACTION: Due to time constraints, requested the item be presented to the full Board without Committee input. 9. Announcements a. Ms. O'Malley announced that a summer student who recently returned to school was appropriately denied a claim for unemployment benefits by the California Employment Development Department (EDD), bringing to two the number of denials in the past year. She said is it encouraging that the EDD is now enforcing its own rules in this regard. 10. Future Scheduled Meetings a. Tuesday, September 12, 2017 at 8:30 a.m. Thursday, September 28, 2017 at 3:00 p.m. Tuesday, October 10, 2017 at 8:30 a.m. 11. Suggestions for Future Agenda Items None. 12. Adjournment — at 10:35 a.m.