HomeMy WebLinkAbout13.a. Minutes Administration Committee 10-16-17Page 1 of 5
Item 13.a.
Central Contra Costa Sanitary District
November 2, 2017
TO: HONORABLE BOARD OF DIRECTORS
FROM: ELAINE BOEHME, SECRETARY OF THE DISTRICT
SUBJECT: OCTOBER 16, 2017 -ADMINISTRATION COMMITTEE - MEMBER MCGILL
AND MEMBER WILLIAMS
Attached are minutes of the above Committee meeting.
Strategic Plan Tie -In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
ATTACHMENTS:
1. Minutes of 10-16-17 Administration Committee Meeting
November 2, 2017 Regular Board Meeting Agenda Packet - Page 274 of 303
Page 2 of 5
Jl Central Contra Costa Sanitary District
REGULAR MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
ADMINISTRATION COMMITTEE
MINUTES
Thursday, October 16, 2017
8:30 a.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
('nmmittaa
Chair Mike McGill
Member David Williams
BOARD OF DIRECTORS:
PAUL H CA USEY
President
JAMES A. NEJEDLY
President Pro Tent
MICHAEL R. MCGILL
TAD J PILECKI
DAVID R. WILLIAMS
PHONE: (925) 228-9500
FAX- (925) 676-7211
www.centralsan.org
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
Jean -Marc Petit, Director of Engineering and Technical Services (left during Item 3.a.)
Emily Barnett, Communication Services and Intergovernmental Relations Manager
(arrived during Item 3.a. and left after Item 3.b.)
Teji O'Malley, Human Resources Manager
Todd Smithey, Finance Administrator
Chris Thomas, Finance Administrator (left after Item 3.a.)
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair McGill called the meeting to order at 8:38 a.m.
2. Public Comments
None.
3. Items for Committee Recommendation to Board
a. Review draft Position Paper recommending Board approval of (1) updated
Board Policy No. BP 017 - Fiscal Reserves, and (2) authorizing the
November 2, 2017 Regular Board Meeting Agenda Packet - Page 275 of 303
Page 3 of 5
Administration Committee Minutes
October 16, 2017
Page 2
General Manager to establish with Contra Costa County a separate
investment sub -account for the Operations and Maintenance (O&M) Sub -
Fund
Mr. Leiber summarized the rationale for the proposed revisions to BP 017,
noting that they primarily relate to (1) adding language to clarify how
reserve funds may be used, (2) increasing the Operations & Maintenance
(O&M) reserve from 5 months to 6 months (to be phased in over a five-
year period), and (3) adding language that recognizes creation of the
Section 115 Pension Prefunding Trust and addresses several other
miscellaneous issues.
A lengthy discussion took place during which it was noted that a 1112th
increase in the O&M reserve would minimize the periodic transfer of funds
from the Capital Improvement reserve to the O&M reserve to cover
shortfalls when the timing of deposits of Sewer Service Charge (SSC)
revenue from the County (April and December) does not coincide with
payment of expenditures. Staff believes an additional month's cushion
would reduce or eliminate the need for such transfers.
Mr. Leiber noted that the proposed additional language in the policy
speaks to when reserves may be used and when they are replenished and
essentially memorializes current practices.
Chair McGill stated that he is not averse to having a cash reserve in the
event of a major disaster where the District would have to maintain
operations if its cash flow were interrupted. Noting that earnings on cash
accounts are very low in this economic climate, he raised for discussion
purposes the idea of having a bank line of credit available to address
short-term cash flow needs.
Member Williams stated that it appeared to him that the self-insurance
fund reserve functions more as a true reserve fund, whereas the O&M and
Capital reserve funds function more as working capital/cash flow funds.
He stated a preference for calling them what they are, noting that working
capitallcash flow funds should be for planned events, and reserve funds
should be for unplanned events.
Mr. Bailey commented that staff essentially considers both the O&M
reserves and the Capital reserves as working capital. He stated that most
agencies that bill monthly and receive steady revenue have true reserve
funds beyond working capitallcash flow funds. In his opinion, the District
should, in the long-term, be working toward establishing true reserve
funds.
November 2, 2017 Regular Board Meeting Agenda Packet - Page 276 of 303
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Administration Committee Minutes
October 16, 2017
Page 3
Chair McGill commented that the only true reserve is for self-insurance.
He also questioned why the debt service and other reserves language
was included in the policy. Mr. Leiber said he believed it was of value to
mention all reserve -like funds in the policy, and that was how the 2015
policy was approached.
Based on the discussion, Mr. Bailey said it appeared that the Committee
would prefer less restriction on staff's ability to pay expenses from either
of the two existing reserve funds (O&M and Capital) and that a statement
to that effect could be included in the policy. He will ask staff to research
the past usage (over a 5 to 10 -year period) on the two funds to get a clear
picture of past cash flow needs.
Mr. Bailey concluded that there is no need for urgent action on the existing
policy. Given the discussion at this meeting, he will work with staff over
the coming months to consider proposed changes to the policy that could
take into consideration the concept of separating cash flow reserves from
true reserves, and also provide various approaches for funding the
reserves. He suggested this may be a good topic for discussion at the
March 8, 2018 Financial Planning Workshop.
COMMITTEE ACTION: Provided input to staff.
b. Conduct biennial review of Board Policy No. BP 021 — Social Media
Communication
COMMITTEE ACTION: Concurred with staff recommendation of no
changes to the policy.
4. Other Items
a. Receive report on employee turnover rates for Fiscal Year 2016-17 and
benchmarking studies of other agencies' turnover rates
COMMITTEE ACTION: Due to time constraints, this item was
continued to a future meeting.
b. Review additional options to bring the District to the next most cost-
effective level of compliance with the Bay Area Commuter Benefits
Program (BACBP)
Ms. O'Malley explained the available options for moving beyond the
current level of compliance with the BACBP.
November 2, 2017 Regular Board Meeting Agenda Packet - Page 277 of 303
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Administration Committee Minutes
October 16, 2017
Page 4
COMMITTEE ACTION: Recommended Board approval of adding
Option 1 (allowing employees to exclude their transit or vanpool
costs from taxable income to the maximum extent permitted by
Internal Revenue Service regulations (currently $255 per month)) to
those options already provided.
C. Receive information on Contra Costa County Employees' Retirement
Association (CCCERA) formulas for calculating employer and employee
contribution rates
COMMITTEE ACTION: Due to time constraints, this item was
continued to a future meeting.
5. Announcements — None.
6. Future Scheduled Meetings
a. Tuesday, October 24, 2017 at 8:30 a.m.
Tuesday, November 21, 2017 at 8:30 a.m.
Tuesday, December 12, 2017 at 8:30 a.m.
7. Suggestions for future agenda items
None.
8. Adjournment — at 10:02 a.m.
November 2, 2017 Regular Board Meeting Agenda Packet - Page 278 of 303