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C ENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-4392
REGULAR MEETING OF THE BOARD FDIRE TR
0 o cos.
CENTRAL CONTRA COSTA JAMES A.NEJEDLY
SANITARY DISTRICT President
ADMINISTRATION COMMITTEE
DAR, WILLIAMS
President Pro Tern
PAUL H.CA USEY
M INUTES MICHAEL R.MCGILL
TAD J.PILECKI
Tuesday, Nb20 2018 PHONE.: (925)228-9500
ovemer FAX (925)372-0192
8:3 0 a.m. www.centralsan.org
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Mike McGill
Member David Williams
Guest:
John D. Bakker, Principal — Meyers Nave
Staff.-
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Kenton L. Alm, District Counsel (left after Item 4.a.)
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Emily Barnett, Communications and Intergovernmental Relations Manager (arrived
during Item 4.b.)
Danea Gemmell, Planning and Development Services Division Manager (left after Item 3.c.
and returned during Item 4.a.)
Teji O'Malley, Human Resources Manager (left after Item 4.a.)
Dan Frost, Senior Engineer (left after Item 3.c.)
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair McGill called the meeting to order at 8:35 a.m.
2. Public Comments
None.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 182 of 202
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Administration Committee Minutes
November 20, 2018
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3. Items for Committee Recommendation to Board
a. Review draft Position Paper to authorize the General Manager to execute
a two-year professional services contract with Kenton L. Alm, Esq., to
provide Counsel for the District services effective January 1, 2019 through
December 31, 2020, with an option to extend the contract for two
additional one-year terms
Mr. Bailey introduced this item and stated that it is related to Item 3.b. He
explained that he would like more time to sort out some of the unresolved
issues related to retainer hours, specifically the allocation of retainer hours
between Mr. Alm and Meyers Nave, and to address succession planning.
Therefore, he proposed that the current contract with Meyers Nave be
extended for three months with the stipulation that as of December 31,
2018, Meyers Nave would no longer be providing District Counsel
services, but instead would provide adjunct services to Mr. Alm, who
would continue serving as District Counsel under a new contract as a sole
practitioner.
Mr. Bakker said Mr. Bailey's proposal was acceptable to Meyers Nave.
Mr. Alm said he fully agreed with the proposal, stating that the retainer
hours in the existing contract with Meyers Nave are based on the fact that
he covers most of them. However, under the new arrangement, he would
be open to adjusting his number of hours. In order for this new proposed
arrangement to work at the best level, he said it is important for Meyers
Nave to have a regular presence at Central San. That means adjusting
Mr. Alm's retainer hours down, with the difference made up under a new
arrangement with Meyers Nave.
Member Williams asked what occurs when the 74 retainer hours under the
current contract with Meyers Nave are exceeded. Mr. Alm said in that
case the firm does not receive any additional revenue. Some months the
hours have exceeded 74 hours. On balance, it has come out slightly more
than 74 hours per month.
Mr. Alm explained that Meyers Nave spends three half days per week at
Central San under the current contract. He covers two-thirds of those
hours and his associate, Thomas L. Smith, covers the remainder. He said
he would expect similar retainer hours to continue under the new
proposed arrangement, but a three-month period would allow time to work
out the details of how much time Meyers Nave would be on site.
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Administration Committee Minutes
November 20, 2018
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Chair McGill recapped his understanding of what staff is trying to
accomplish with the proposed arrangement: 1) staff wishes to retain
Mr. Alm's expertise and historical knowledge of the District by locking in a
certain commitment as he heads into retirement; and 2) Central San
needs to consider succession planning for continuity of legal services. In
his opinion, there may not be enough substance in the proposed contract
with Meyers Nave to achieve the second goal.
Mr. Bakker said he provided some mark-ups on the existing contract with
Meyers Nave, which constitutes Meyers Nave's initial proposal.
In the current proposal, it is unclear how often Meyers Nave would have
staff on site. Mr. Bailey said a three-month extension to review the
agreements would allow time to sort out the arrangement and clarify the
issues that have not yet been clearly addressed.
In response to a question from Chair McGill, Mr. Alm said he is partially
responsible for the ambiguity with regard to the proposed arrangement.
The initial proposal was too simple, especially given the fact that
succession planning is important to the Board. while he can be available
as much as needed, he and Mr. Bailey concluded that may not serve the
long-term needs of Central San.
Chair McGill inquired as to who has paid for Mr. Alm's attendance at
California Association of Sanitation Agencies (CASA) conferences.
Mr. Alm said his CASA expenses have always been paid by Meyers Nave
and he has never billed Central San for his time in that regard. However,
under the proposed arrangement, his expenses would be covered by
Central San. Mr. Bailey noted that the District benefits from Mr. Alm's
attendance and participation in the CASA conferences.
Chair McGill suggested that Items 3.a. and 3.b. be brought back at the
next meeting to allow time to clarify some of the ambiguities.
Mr. Bailey said staff could return at the next meeting with a proposed
contract with Mr. Alm and a letter from Meyers Nave clarifying an interim
arrangement, both of which could be presented to the full Board before
year end, when the current contract with Meyers Nave expires. This
interim arrangement would allow time to sort out how best to make the
proposed arrangement work for all parties.
COMMITTEE ACTION: Items 3.a. and 3.b. were continued to the next
meeting.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 184 of 202
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Administration Committee Minutes
November 20, 2018
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b. Review draft Position Paper authorizing the General Manager to amend
and extend the contract for legal services with Meyers Nave effective
January 1, 2019 through December 31, 2019
See above.
COMMITTEE ACTION: Continued to next meeting.
C. Review draft Position Paper to consider adopting new Board Policy No.
BP 038 - Climate Change
Ms. Gemmell stated that having a Board policy on climate change could
help achieve a higher score on the application for a loan from the
California State Water Resources Control Board (SWRCB) Clean Water
State Revolving Fund (SRF) related to the Solids Handling Facility
Improvements Project, District Project 7348. Staff is working toward
submitting an application for an SRF loan on the Project before year end.
Member Williams proposed a few wording changes, and Chair McGill
concurred.
Ms. Gemmell noted that, if adopted, the new policy would be reviewed
every two years.
Mr. Alm noted that Central San is involved in a number of creative projects
with respect to recycled water and wondered if they should be mentioned
in the proposed policy. Ms. Gemmell responded that staff refrained from
mentioning specific projects so as to avoid becoming a plan versus
a policy.
Chair McGill said that, from a policy perspective, he was comfortable with
the proposed policy in that it states that the Board wants the enumerated
items to be considered as projects are evaluated.
COMMITTEE ACTION: Recommended Board approval with minor
proposed wording changes.
Ms. Gemmell and Mr. Frost left the meeting.
4. Other Items
a. Update on transition to CaIPERS Healthcare
Mr. Bailey said the anticipated effective date of the transition is July 1,
2019, commensurate with the start of the next fiscal year.
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Administration Committee Minutes
November 20, 2018
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Ms. Sasaki said there are two parts to the transition: 1) the actual
transition to Ca1PERS Healthcare, and 2) setting up the Health
Reimbursement Accounts (HRAs). Informational meetings with
employees will take place next week regarding the transition, and HRA
meetings have been scheduled with each of the bargaining groups. Staff
is working on a draft scope of work on a Request for Proposal (RFP) for
an HRA administrator. The goal would be to issue an RFP in January.
Initially, the amount in the HRA will be approximately$300,000 annually.
Finding a vendor to administer that amount of money may prove
problematic. Staff is reaching out to other agencies to see how they are
addressing this issue.
Mr. Bailey said if an administrator cannot be engaged before the July 1
transition, he would recommend that the Board put the funds aside with
appropriate restrictions until such time as an administrator is engaged.
Chair McGill asked if the District's current plan administrator, 1 CMA, would
be willing to serve as interim administrator. Ms. O'Malley said that is not
an option because 1 CMA does not offer an HRA.
Chair McGill asked if setting up a reserve would work as an interim
measure. Mr. Alm said yes; short of setting up a trust, a reserve with a
defined purpose should suffice in the interim.
Chair McGill noted that in the absence of a trust, a reserve can be subject
to the Board's discretion. He supported the idea of making a strong
commitment to only use those funds for their intended purpose.
COMMITTEE ACTION: Received the update.
Ms. O'Malley and Mr. Alm left the meeting. Ms. Gemmell rejoined the meeting.
b. Discussion of Central San's practices regarding customer surveys, as
requested at the November 6, 2018 Administration Committee meeting
Ms. Barnett recapped the customer survey history over the last several
years, stating that Katz and Associates conducted stakeholder surveys as
early as 2015 in conjunction with development of the Comprehensive
Wastewater Master Plan (CLAMP) with a finalized report provided to the
Board in January 2016. Central San contracted with FM3 to conduct
customer research via telephone surveys and focus groups. The results
of both the stakeholder survey and telephone survey were presented to
the Board in January 2016.
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Administration Committee Minutes
November 20, 2018
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The Fiscal Years 2016-18 Strategic Plan included the following key
success measures:
• Conduct and track outreach for the CLAMP
• Survey customers and conduct research to assess customer
expectations (FY 2017-18)
• Develop a public outreach strategy associated with the rate study
and its recommendations
Given that the Board was looking at adopting rate increases in early 2017,
rates threshold testing was included as part of the surveys reported in
2016. In December 2017 customers were also surveyed by phone.
The Fiscal Years 2018-20 Strategic Plan includes the following key
success measure:
• Continue public outreach associated with the rate study and its
recommendations
• Perform research to assess customer awareness, satisfaction,
desire to learn more about the District, and methods of best
receiving information
In July 2018, a communications channel survey was done to assess how
customers best receive information. Rates threshold testing will take
place in early 2019 so the results can be shared with the Board prior to
considering any rate increases.
Member Williams said he would prefer surveys that provide benchmarking
so staff can track trends. To do that, however, the questions must be
fairly uniform throughout the survey process.
Ms. Barnett said roughly 60% of the survey questions are the same
baseline questions covering such topics as name recognition, customer
satisfaction, and what they know about Central San. However
approximately 40% of the questions are customized depending on current
needs and wants. For example, in 2016 the non-baseline questions
focused on the CWMP. Those were followed by more rates threshold
testing and questions focusing on the Household Hazardous Waste
Facility because of its upcoming 20th Anniversary. In 2018 some of the
input gathered helped focus the website design in advance of the launch
of the new website. In 2019, the questions will again include baseline
questions with a focus again on rates threshold testing.
Ms. Barnett said trending data based on the baseline questions will be
shared with the Committee and Board in 2019.
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Administration Committee Minutes
November 20, 2018
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Ms. Barnett was asked to provide the Committee with the baseline
questions used for benchmarking.
Chair McGill commented that the wording of questions is very important.
He also noted that customers in Central San's service area care deeply
about environmental protection but there are many who still
misunderstand what Central San does.
Ms. Barnett noted that Central San is somewhat disadvantaged in that it
collects charges on the property tax roll as opposed to frequently billing
customers by mail. That can be problematic when trying to disseminate
information to the customer base. It takes many years to build name
recognition, which is achieved by very systematically repeating the same
message.
In response to a question from Chair McGill, Ms. Barnett explained the
difference between stakeholders and customers. Stakeholders are
leaders and elected officials in the community who tend to be more
informed about what Central San does. Therefore, when the Board speaks
and makes presentations to stakeholders, in-depth information is
provided. On the other hand, the average customer wants to know that
nothing is going to break and have confidence that the money they pay to
Central San will allow this to be so. Most customers have neither the time
nor inclination to receive in-depth information.
COMMITTEE ACTION: Discussed and provided input to staff.
C. Discussion of Central San's practices regarding the process in which staff
handles emails for Board Members, as requested at the November 6,
2018 Administration Committee meeting
Ms. Young noted that several emails were recently sent directly to Board
Members via a link on the new Central San website. This raised the
question of how best to handle emails to Board Members, especially when
the inquiries more appropriately should be handled by staff or to prevent
delayed responses when a Board Member may be unavailable. The
website has since been changed so that emails to Board Members are
first received by the Secretary of the District, who then forwards them to
the Board Members.
Mr. Bailey said that from a transparency standpoint he was not an
advocate of filtering emails to the Board Members.
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Administration Committee Minutes
November 20, 2018
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A discussion took place clarifying that only three emails have been
received up to this point. The Secretary of the District does not screen or
filter the emails, but acts to have customer inquiries or issues resolved by
staff quickly and then can inform the Board Member if the matter has been
handled by staff.
Chair McGill said he was fine with emails being routed through the
Secretary of the District, as long as every email is forwarded to the
respective Board Members.
Mr. Bailey asked if it was possible for emails to go directly to the Board
Members with a copy going to the Secretary of the District. Ms. Barnett
said that was a possibility.
Chair McGill suggested that staff continue with the present system and
consider providing the Board Members with options that are workable from
an IT/website perspective so they may select what works best for them.
COMMITTEE ACTION: Suggested that staff continue with the present
system for the time being and investigate possible options the Board
Members might have for selecting their preferred method of
receiving emails generated by the Central San website.
e. Receive list of future agenda items
COMMITTEE ACTION: Received the list.
5. Announcements
a. Biennial review of Board Policy No. BP 027 - Energy(to be delayed)
Ms. Gemmell explained that staff would like to delay biennial review of
BP 027 for approximately six months to allow staff time to complete its
review of the best overall use of the District's buffer properties. The
Committee Members agreed that the Energy policy should be sufficiently
high level that its biennial review would not be affected by the outcome of
the buffer properties'review.
b. Chair McGill stated that earmarks may occur if democrats are elected. In
that case, staff should prepare for pursuing earmarks that would benefit
Central San as it evaluates potential funding alternatives for the capital
program.
C. Chair McGill also announced that the CoCo San Sustainable Farm has
begun harvesting vegetables; he ate his first radish recently.
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Administration Committee Minutes
November 20, 2018
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COMMITTEE ACTION: Received the announcements.
6. Future Scheduled Meetings
a. Tuesday, December 11, 2018 at 8:30 a.m.
7. Suggestions for Future Agenda Items
None.
8. Adjournment— at 10:17 a.m.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 190 of 202