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HomeMy WebLinkAboutAdministration MINUTES 03-12-19 Page 2 of 7 ol&)i Cwil ENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9AS53-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: DAVID R, WILLIAMS CENTRAL CONTRA COSTA President SANITARY DISTRICT MICHAEL R.MCGILL President Pro Tem ADMINISTRATION COMMITTEE PAUL CASEY JAMES A.NEJEDLY TAD J PHECKI MINUTES PHONE: (925)228-9500 FAX.- (925)372-0192 Tuesday, March 12, 2019 www.centralsan.org 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair David Williams Member Mike McGill Guests: John D. Bakker, Esq. — Meyers Nave (present for Item 6.a.) Daniel Clinton, Esq. — Hanson Bridgett (left after Item 4.a.) Staff.- Roger S. Bailey, General Manager Katie Young, Secretary of the District Kenton L. Alm, District Counsel (left after Item 6.a.) Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Teji O'Malley, Human Resources Manager Timothy Potter, Environmental Compliance Superintendent (arrived during Item 6.a. and left after Item 8.a.) Todd Smithey, Finance Administrator (arrived during Item 6.b. and left after Item 6.c.) Donna Anderson, Assistant to the Secretary of the District 1. Call Meeting to Order Chair Williams called the meeting to order at 8:31 a.m. 2. Public Comments None. March 21, 2019 Regular Board Meeting Agenda Packet- Page 199 of 204 Page 3 of 7 Administration Committee Minutes March 12, 2019 Page 2 3. Announce Closed Session (pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 4.a. 4. Closed Session a. Personnel matters pursuant to Government Code Section 54957: Public Employee Discipline/dismissal/Release 5. Report out of Closed Session The closed session ended at 9:05 a.m. There was nothing to report. 6. Items for Committee Recommendation to Board a. Review draft Position Paper to authorize the General Manager to amend and extend the contract with Meyers Nave for legal services effective April 1, 2019 through December 31, 2019 Ms. Sasaki briefly reviewed the updated information included with the agenda materials. The Committee discussed the proposed Meyers Nave rates with Mr. Bakker who noted that the Senior Principal rate had not been increased in the last few years most likely because that rate category was rarely, if ever, used. Mr. Alm confirmed that was the reason no change was made to that rate when he received his last rate increase in 2016. In response to a question from Member McGill, Mr. Alm explained that Tivonna Stern, a Meyers Nave Senior Associate, has begun to fulfill the half-day-per-week office hours as part of the Meyers Nave retainer. Any unused retainer hours will be used for follow-up work on matters begun during the half-day-per-week office hours, which he believes will probably be sufficient. Mr. Alm explained how the retainer will be billed for those instances when he is unavailable. The retainer can be broken down into daily, weekly or monthly rates depending on the amount of time he is absent. His retainer billings will be proportionately decreased for those times when Meyers Nave assumes District Counsel duties. Chair Williams pointed out a typo on the strike-out version of the proposed contract. Mr. Bakker said he will correct it on the final version that is presented to the Board. COMMITTEE ACTION: Recommended Board approval. March 21, 2019 Regular Board Meeting Agenda Packet- Page 200 of 204 Page 4 of 7 Administration Committee Minutes March 12, 2019 Page 3 b. Review material in advance of March 21, 2019 public hearing for annual review of Board Member compensation and benefits Ms. Young presented the material in the agenda packet. Member McGill asked to have survey include information for the County Board of Supervisors. Chair Williams requested that the surveyed cities be incorporated into Attachment 3 (the meeting stipend list in ranked order). Ms. Young said that information would be included for the upcoming public hearing. Mr. Potter asked why medical and other benefits were not included in Attachment 3, stating it would be helpful to have a relative ranking of total compensation. Mr. Bailey said that would be a much more complex process, given the differences in benefits among the surveyed entities. He said Human Resources will need to become involved if total compensation data is desired. COMMITTEE ACTION: Provided input to staff. C. Review draft Position Paper to adopt resolutions to contract with CalPERS for the District's health plans Ms. O'Malley said preparations for the transition to Ca/PERS for healthcare benefits is in the home stretch. One of the requirements is to adopt 15 resolutions, three for each of the five bargaining units/employee groups specifying: 1) Employer contributions; 2) Survivor benefits for deceased employees; and 3) Survivor benefits for deceased retirees. Member McGill said the most important thing in his opinion is to keep the employees and retirees whole, so if the proposed resolutions do that, he was supportive. Ms. O'Malley assured him that the proposed resolutions are consistent with the memoranda of understanding (MOUs), other than a few minor items that are specific to plan design but do not affect coverage. Ms. Sasaki pointed out that there is an added benefit to the PEMHCA minimum in that only five years of service (or reciprocal service with another Ca1PERS agency) instead of the current ten years are required to be able to access the CaIPERS plans upon retirement, and the District would have to pay the PEMHCA minimum employer contribution. March 21, 2019 Regular Board Meeting Agenda Packet- Page 201 of 204 Page 5 of 7 Administration Committee Minutes March 12, 2019 Page 4 Mr. Potter inquired as to how the additional amount that must be paid for retirees will be handled. Ms. O'Malley said it will be handled administratively through a Health Reimbursement Account (HRA), which will be seamless to retirees. The HRA needs to be put in place to meet Internal Revenue Service (IRS) regulations. A brief discussion took place as to the efforts required to reach all retirees who must make elections during the upcoming open enrollment period. Ms. O'Malley said there may be some retirees who are unreachable through every available channel. While staff will make every attempt to reach all of them, to the extent some may not be locatable, they may be placed in a default/comparable plan to maintain their coverage and will have the opportunity to change plans at the next open enrollment period in October 2019. Mr. Smithey announced that the actuarial evaluation recently provided by Bartel Associates, LLC indicated that the Other Post-Employment Benefits (OPEB) Trust was funded at 77% as of January 31, 2019, as opposed to 50% at the previous evaluation. COMMITTEE ACTION: Recommended Board adoption of the 15 proposed resolutions. 7. Other Items a. Discuss premium rates for retired and former Board Members upon transition to CaIPERS Healthcare Ms. O'Malley recalled that at the last meeting it was noted that staff had received conflicting information from CalPERS about Board Member access to the new CalPERS group premium rates. She said annuitants (retirees, including Board Members) must meet two eligibility requirements before becoming eligible for the CalPERS health plans: 1) they must be an annuitant, and 2) they must begin drawing benefits within 120 days of separation from the District. At the present time, two former Board Members are covered by Central San's health plans: 1) Barbara Hockett, who is in Tier 2, is being reimbursed for 50% of the Kaiser premium rate. Ms. Hockett has elected to obtain coverage outside of the District's plan offerings but receives a monthly reimbursement for half the amount of the Kaiser monthly premium. She currently has the option of opting back in to the District's plans. March 21, 2019 Regular Board Meeting Agenda Packet- Page 202 of 204 Page 6 of 7 Administration Committee Minutes March 12, 2019 Page 5 2) Nels Carlson, who is in Tier 1, is receiving full coverage at District expense for a preferred provider option (PPO) plan. Ms. O'Malley said neither of these Board Members is considered "annuitants"for CaIPERS purposes because they never participated in the District's pension plans. She said going forward, however, all Board Members will meet this eligibility requirement if they elect to be an annuitant under the District's 457 deferred compensation plan. With the switch to Ca1PERS, Ms. Hockett will no longer have the option of opting back into the District's health care coverage, but she will continue to be eligible for 50% reimbursement of the Kaiser premium level. Mr. Carlson, however, through no fault of his own, must find new health coverage because of the District's decision to transition to Ca1PERS. Ms. O'Malley said she was seeking the Committee's input as to how best to address this situation. Mr. Potter said he believes that keeping people whole is an important concept, whether employees, Board Members or retirees. The Committee Members agreed. Mr. Bailey said the switch to Ca1PERS is based on a negotiated agreement. Everyone else is being made whole in this process and it is important that Mr. Carlson be treated fairly. Ms. O'Malley said Mr. Carlson, who is 91 years old, will have to find his own coverage and, without some special dispensation, he may not get fully reimbursed by the District. She suggested one option for keeping him whole was to allow Mr. Carlson to find an equivalent plan outside of Ca1PERS and reimburse him at the same level as at present. Ms. O'Malley said staff will be speaking with Mr. Carlson and provide a methodology going forward to determine what his premium will be. Chair Williams asked if Board approval will be required for a special dispensation with respect to Mr. Carlson. Mr. Bailey said staff will consult with District Counsel on that issue. COMMITTEE ACTION: Provided input to staff. b. Update on transition to CalPERS Healthcare Ms. O'Malley said everything is on track for the July 1, 2019 transition. COMMITTEE ACTION: Received the update. March 21, 2019 Regular Board Meeting Agenda Packet- Page 203 of 204 Page 7 of 7 Administration Committee Minutes March 12, 2019 Page 6 8. Announcements a. Mr. Bailey said he just received notice that the Consumer Price Index came in at 3.5%, which will be used for the April 18 salary adjustments under the MOUs. COMMITTEE ACTION: Received the announcement. 9. Future Scheduled Meetings Tuesday, April 16, 2019 at 8:30 a.m. Tuesday, May 14, 2019 at 8:30 a.m. Tuesday, June 4, 2019 at 8:30 a.m. 10. Suggestions for Future Agenda Items a. Receive list of future agenda items COMMITTEE ACTION: Received the list. 11. Adjournment— at 10:11 a.m. March 21, 2019 Regular Board Meeting Agenda Packet- Page 204 of 204