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Home My WebLink AboutADMINISTRATION MINUTES 12-12-17Page 2 of 6 Jl Central Contra Costa Sanitary District MIN U T E S PHONE: (925) 228-9500 FAX- (925) 676-7211 www.centralsan.org Tuesday, December 12, 2017 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California (;nmmittPP Chair Mike McGill Member David Williams Staff. - Roger S. Bailey, General Manager Donna Anderson, Provisional Secretary of the District Ann Sasaki, Deputy General Manager (left after Item 4.c.) Phil Leiber, Director of Finance and Administration (left after Item 3.c.) Teji O'Malley, Human Resources Manager (left after Item 4.c.) Emily Barnett, Communications and Intergovernmental Relations Manager (left after Item 3.d.) Thea Vassallo, Finance Manager (left after Item 3.c.) Todd Smithey, Finance Administrator (left after Item 3.c.) 1. Call Meeting to Order Chair McGill called the meeting to order at 8:35 a.m. Chair McGill stated that the agenda items would be considered in the following order after any Public Comments are made: Items 4.a -c, 3.a -d, followed by any remaining items. 2. Public Comments None. December 21, 2017 Regular Board Meeting Agenda Packet - Page 110 of 130 BOARD OF DIRECTORS: PAUL H CA USEY REGULAR MEETING OF THE President CENTRAL CONTRA COSTA JAMES A.NEJEDLY President Pro Tent SANITARY DISTRICT MICHAEL R.MCGILL ADMINISTRATION COMMITTEE TAD JPILECKI DAVID R. WILLIAMS MIN U T E S PHONE: (925) 228-9500 FAX- (925) 676-7211 www.centralsan.org Tuesday, December 12, 2017 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California (;nmmittPP Chair Mike McGill Member David Williams Staff. - Roger S. Bailey, General Manager Donna Anderson, Provisional Secretary of the District Ann Sasaki, Deputy General Manager (left after Item 4.c.) Phil Leiber, Director of Finance and Administration (left after Item 3.c.) Teji O'Malley, Human Resources Manager (left after Item 4.c.) Emily Barnett, Communications and Intergovernmental Relations Manager (left after Item 3.d.) Thea Vassallo, Finance Manager (left after Item 3.c.) Todd Smithey, Finance Administrator (left after Item 3.c.) 1. Call Meeting to Order Chair McGill called the meeting to order at 8:35 a.m. Chair McGill stated that the agenda items would be considered in the following order after any Public Comments are made: Items 4.a -c, 3.a -d, followed by any remaining items. 2. Public Comments None. December 21, 2017 Regular Board Meeting Agenda Packet - Page 110 of 130 Page 3 of 6 Administration Committee Minutes December 12, 2017 Page 2 3. Items for Committee Recommendation to Board a. Approve a minor revision to the Investment Guidelines Document (IGD) for the GASB 45 Other Post -Employment Benefits (OPEB) Trust adopted September 7, 2017 COMMITTEE ACTION: Recommended Board approval. b. Follow-up discussion from September 12 and October 24, 2017 meetings on proposed new Board Policy No. BP 033 - Conducting District Business Using Personal Accounts and Devices COMMITTEE ACTION: Recommended Board approval. C. Follow-up discussion from October 16, 2017 meeting on draft Position Paper recommending Board approval of (1) updated Board Policy No. BP 017 — Fiscal Reserves, and (2) authorizing the General Manager to establish with Contra Costa County a separate investment sub -account for the Operations and Maintenance (O&M) Sub -Fund Mr. Leiber reviewed the material included with the agenda packet, stating that he strongly recommends adopting the proposed changes, which are noncontroversial and clarify current practices as to the handling of the funds and recognize some changes since the policy was first adopted, such as establishment of the Section 115 Pension Prefunding Trust. Mr. Leiber said the suggestion made by the Committee during the October 16 discussion to consider separating working capital from true reserves was incorporated in the draft Position Paper under the Alternatives section. Staff does not believe such a change is necessary at this time, and also noted that sufficient data is not available to assess and develop a sound recommendation on the separation of O&M and Sewer Construction working capital reserves. Establishment of a separate investment sub -account, which is part of the recommended action, will provide such data going forward, at which time this issue may be revisited in the future. Finally, Mr. Leiber stated that the recommendation presented by staff in October to increase the O&M reserve from 5/12 to 6/12 of annual budgeted operating expenditures has also been presented as an alternative rather than a staff recommendation in the draft Position Paper. Staff does not believe it to be a critical recommendation at this point because on those occasions when short-term borrowing from the capital fund is needed to cover O&M expenses due to cash flow timing, staff tracks the funds and they are fully repaid once the next influx of cash has December 21, 2017 Regular Board Meeting Agenda Packet - Page 111 of 130 Page 4 of 6 Administration Committee Minutes December 12, 2017 Page 3 been received. This has been past practice, and is discussed in the draft policy. Any such short-term borrowing may have raised concerns as it could appear as though staff is using capital funds to pay O&M expenses; however, internally the account balances are separately maintained, and the borrowings are repaid in a matter of months. Mr. Smithey added that these short-term borrowings, which occur infrequently, do not affect the capital improvement program. Mr. Leiber added that if it is important to the Board that capital funds and O&M funds be kept fully separate, increasing the reserve by another 1/12 of annual budgeted spending would reduce the frequency of these short-term borrowings. Chair McGill said he liked the idea of having two investment accounts at the County for Capital and O&M, but he cautioned that careful consideration be given to naming them so as not to convey an unintended message. Member Williams concurred with the establishment of an additional account, but also said he has no concerns with the current practice of occasional short-term borrowings from the existing account. COMMITTEE ACTION: Reviewed and strongly recommended Board approval, suggesting that any fine tuning be sorted out when the item is presented to the full Board. d. Discuss potential naming of the treatment plant COMMITTEE ACTION: This item was tabled indefinitely. 4. Other Items a. First Quarter FY 2017-18 Strategic Plan Tracking Reports Ms. Sasaki briefly reviewed the report with the Committee Members. COMMITTEE ACTION: Received the reports and provided input to staff. b. Receive report on employee turnover rates for Fiscal Year 2016-17 and benchmarking studies of other agencies' turnover rates. Continued from October 16, 2017 meeting. Ms. O'Malley briefly reviewed the material included with the agenda material. COMMITTEE ACTION: Received the information. December 21, 2017 Regular Board Meeting Agenda Packet - Page 112 of 130 Page 5 of 6 Administration Committee Minutes December 12, 2017 Page 4 C. Receive information on Contra Costa County Employees' Retirement Association (CCCERA) formulas for calculating employer and employee contribution rates. Continued from October 16, 2017 meeting. Ms. O'Malley and Mr. Smithey responded to questions from the Committee Members. Chair McGill asked if it would be a lot of work for staff to gather the following additional information: a. Looking at just retirement costs for the employer, what percentage of payroll do employer retirement costs represent? b. If the above does not cover unfunded liabilities, what percentage of payroll does that represent? C. What percent of payroll is represented by other fringe benefits, including health care? d. How are Other Post -Employment Retirement (OPEB) benefits expressed? Member Williams said he too would be interested in the responses to these questions. Mr. Smithey said this information exists and he and Ms. O'Malley will be glad to provide responses. COMMITTEE ACTION: Requested that responses to the questions posed by the Committee be brought back at a future meeting. d. Risk Management - Loss Control Report; discuss outstanding claims and new claims, if any Ms. Deutsch was unable to attend the meeting so this item was tabled. COMMITTEE ACTION: This item was tabled to a future meeting. 5. Announcements None. 6. Future Scheduled Meetings a. Friday, January 12, 2018 at 8:30 a.m. (tentative, subject to change) 2018 Meeting Dates To Be Determined December 21, 2017 Regular Board Meeting Agenda Packet - Page 113 of 130 Page 6 of 6 Administration Committee Minutes December 12, 2017 Page 5 7. Suggestions for future agenda items a. Chair McGill requested further information on a workshop held at the recent California Public Employers Labor Relations Association (CALPELRA) Conference in Monterey regarding maintaining retiree healthcare benefits while reducing the contribution to Other Post - Employment Benefits (OPEB). b. Given the Brown Act implications associated with those occasions when matters that come before a Board Committee may straddle two calendar years and thus potentially risk a majority of the Board having reviewed an item prior to it being taken to the full Board, Chair McGill suggested that the Board may want to establish a policy where the Committee Members remain in place until any such matters are concluded. 8. Adjournment — at 10:07 a.m. December 21, 2017 Regular Board Meeting Agenda Packet - Page 114 of 130