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HomeMy WebLinkAboutAdministration MINUTES 04-16-19 Page 2 of 8 Arlai CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9,4553-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: DAVID R, WILLIAMS CENTRAL CONTRA COSTA President SANITARY DISTRICT MICHAEL R.MCGHL President Pro Tem ADMINISTRATION COMMITTEE PAUL CASEY JAMES A.NEJEDLY TAD J PHECKI MINUTES PHONE: (925)228-9500 FAX.- (925)372-0192 Tuesday, April 16, 2019 www.centr-alvan.org 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair David Williams Member Mike McGill Staff.- Roger S. Bailey, General Manager Kenton L. Alm, District Counsel (arrived during Item 3.b.) Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration (arrived during Item 3.b.) Melody LaBella, Resource Recovery Program Manager (left after Item 3.a.) Teji O'Malley, Human Resources Manager Erica Brooks Peters, Senior Internal Auditor Donna Anderson, Assistant to the Secretary of the District 1. Call Meeting to Order Chair Williams called the meeting to order at 8:30 a.m. 2. Public Comments None. 3. Items for Committee Recommendation to Board a. Review draft Position Paper approving proposed revisions to Board Policy No. BP 027 - Energy, reflecting the Committee's input from the January 30 and February 19, 2019 meetings COMMITTEE ACTION: Recommended Board approval. May 2, 2019 Regular Board Meeting Agenda Packet- Page 164 of 194 Page 3 of 8 Administration Committee Minutes April 16, 2019 Page 2 b. Biennial review of the following Board Policies (BPs): • BP 007 - Teleconferencing Policy • BP 012 - Parliamentary Procedures • BP 028 - Cost Sharing of Candidate Statements BP 007— Teleconferencing Policy Ms. Anderson explained that the only Board policy for which revision is recommended is BP 007 - Teleconferencing; one small wording change is desired, as reflected on the strikeout version included in the agenda materials. Member McGill noted that, as written, the policy tends to discourage teleconferencing. Mr. Alm said it was meant to be somewhat restrictive, but not impossible. Mr. Bailey said teleconferencing is rarely used; it is generally done only when a supermajority vote is necessary. BP 012— Parliamentary Procedures Member McGill noted that "The Role of the Chair"section on p. 2 states that the meeting chair generally should refrain from making or seconding motions. Mr. Alm said his recollection is that Robert's Rules of Order prohibits the chair from making or seconding motions. However, the Board has adopted Rosenburg's Rules of Order(a modified version of Robert's Rules), which discourages but does not prohibit such actions by the meeting chair. Member McGill suggested that a brief training session on Rosenburg's Rules of Order be undertaken at the February 2020 Board Self-Evaluation Workshop. Chair Williams agreed. Chair Williams also requested that a laminated one-page summary of Rosenburg's Rules be provided on the dais for use by the meeting chair during future Board meetings. Ms. Anderson said staff would be glad to arrange that. Member McGill said it is unclear to him how absences and abstentions are counted toward the quorum and it would be helpful to have some examples to clarify this issue at the February 2020 training session. BP 028 - Cost Sharing of Candidate Statements The Committee had no comments. COMMITTEE ACTION: 1) Recommended Board approval of the proposed changes to BP 007 — Teleconferencing Policy; May 2, 2019 Regular Board Meeting Agenda Packet- Page 165 of 194 Page 4 of 8 Administration Committee Minutes April 16, 2019 Page 3 2) Concurred with staff's recommendation to continue with the current BP 012 — Parliamentary Procedures and BP 028 — Cost Sharing of Candidate Statements policies until the next biennial review; and 3) Recommended that a brief training session on Rosenburg's Rules of Order be added to the agenda for the February 2020 Board Self- Evaluation Workshop. C. Review draft Position Paper to consider adopting new Board Policy No. BP 039 - Internal Audit Function Ms. Brooks Peters introduced the item. Member McGill noted that the Authority section of the proposed policy includes a parenthetical stating that the Director of Finance and Administration will provide day-to-day guidance to the Internal Auditor as needed. Given that much of what the Internal Auditor will be auditing falls within the purview of the Director of Finance and Administration, he suggested that the parenthetical be removed. Mr. Bailey said staff has had extensive discussion on this topic. His original recommendation was for the auditor to report directly to the Board. Mr. Leiber said the parenthetical was meant to recognize that the Internal Auditor will, as a practical matter, be speaking with him but will administratively report to the General Manager and functionally report to the Board. It was the Committee's request that the parenthetical be stricken from the draft policy. Chair Williams asked what was meant by the second sentence of the Independence and Objectivity Section, which states, "Any impairment in fact or appearance will be disclosed to the Board." Ms. Brooks Peters said this sentence was meant to address situations where the Internal Auditor has been involved in a project and then is faced with auditing the project at some future date. The clause would, in effect, require her to recuse herself from the audit. For example, Mr. Leiber said the Internal Auditor's guidance will be sought during implementation of the new Enterprise Resource Planning (ERP) system. When the ERP system is audited in the future, it would be appropriate for the Internal Auditor to disclose that he/she was involved with its implementation. COMMITTEE ACTION: Recommended Board approval, with one suggested strikeout in the Authority section of the proposed policy. May 2, 2019 Regular Board Meeting Agenda Packet- Page 166 of 194 Page 5 of 8 Administration Committee Minutes April 16, 2019 Page 4 d. Review draft Position Paper to: (1) adopt amended and restated (a) Section 125 Cafeteria Plan, including the new Premium Conversion account language required for the transition to CalPERS Health Benefits Program, and (b) three associated Component Plans; and (2) adopt new plan documents for two new Health Reimbursement Arrangements (HRA), all effective July 1, 2019 Ms. O'Malley briefly recapped the information included with the agenda material, stating that the Cafeteria Plan has been administered jointly by the Finance Division and Human Resources in the past. Administration of the Cafeteria Plan has now been consolidated under Human Resources. She said it was time to update the plan document to incorporate multiple amendments approved by the Board over the years that had not yet been made part of the plan document, and to take a wholesale look at the document in terms of compliance with current laws and regulations. Central San's labor counsel, Hanson Bridgett, was asked to produce an updated plan document containing the previously approved amendments and the addition of their own boilerplate language for legal compliance. This resulted in a substantially redlined document, but she reiterated that there have been no substantive changes other than the new subsection [Article 3.2(b)]adding the Premium Conversion account language required for participation in the Ca1PERS Health Benefits Program. The Committee Members expressed that it was overwhelming to review all the redlined documents. Mr. Bailey said that when the item goes to the full Board, perhaps it would be best to just include the final documents. Mr. Alm said the Board could include in their motion that they were approving the documents in substantially the form presented, which would give Administrative staff the right to remedy any inadvertent minor errors. It was agreed that this was the better approach, particularly since all Board Members received this agenda packet and have access to the redlined versions, as does the public. Ms. O'Malley also explained the need for the two new HRAs for retirees and Tier 111 employees of both the Employees'Association, Public Employees Union, Local#1 and the Management Support/Confidential Group (MS/CG). Ms. O'Malley said staff intends to conduct an annual review of all these documents going forward. Mr. Bailey suggested that the plans be brought to the Committee annually. COMMITTEE ACTION: Recommended Board approval. May 2, 2019 Regular Board Meeting Agenda Packet- Page 167 of 194 Page 6 of 8 Administration Committee Minutes April 16, 2019 Page 5 4. Other Items a. Receive supplemental memorandum from District Counsel regarding reporting requirements for travel paid for by outside organizations, related policies and Fair Political Practices Commission (FPPC) forms Mr. Alm referenced his two memos included with the agenda material, the first of which was provided to the Committee at the January 30, 2019 meeting. The second memo, dated March 15, 2019, was provided to address questions asked by the Committee at the January meeting. He referenced page 3 of the second memo and explained that travel expenses are either considered income or a gift. If the former, then they must be reported as a part of income. If a gift, they also must be reported and are subject to the $500 gift limit, unless an exemption applies. He also spoke about gift policies (aka safe haven policies) and provided a sample policy in the agenda material from the City of Walnut Creek. Basically, the policy sets forth procedures for distributing tickets received by the City to various events (e.g. sporting events). Also included in the agenda material were two FPPC forms, one to report receipt of ceremonial tickeUpasses, and another for the agency to complete if they have a gift policy and have distributed tickets. Member McGill said he understood that, for example, if one of Central San's consulting firms wanted to fly him someplace to speak about the CoCo San Sustainable Farm and they wanted to cover the costs, Central San must have a policy to allow that sort of event to occur. Mr. Alm said he was not sure if a policy would be required but FPPC regulations treat travel as a gift, unless the reimbursement for travel is associated with the individual's business or profession. In that case the payments would be considered income from the entity that provided the travel benefits. However, these provisions do not apply to the profession or business of giving speeches. Honorariums are subject to a separate set of limitations. Chair Williams said his primary takeaway from the first memo is that the $500 gift limit can be exceeded if you attend a conference where your expenses are paid because you are giving a speech. However, it must be reported on Form 700— Statement of Economic Interest. Mr. Alm said that was correct. With respect to the second memo, Chair Williams asked what would happen if, for example, an industry association wanted one of its members to testify before a congressional committee and paid the expenses for that individual which exceeded$500, but the association was a 501(c)(6) organization as opposed to a 501(c)3 organization. May 2, 2019 Regular Board Meeting Agenda Packet- Page 168 of 194 Page 7 of 8 Administration Committee Minutes April 16, 2019 Page 6 Mr. Alm said the gift limitation would have been exceeded unless the individual may be able to legitimately treat it as income from his profession or business separate from his role as a public official. However, the regulations do not clearly address every factual scenario and Meyers Nave was unable to find any clarifying case law on this issue. COMMITTEE ACTION: Received the information. b. Receive Fiscal Year 2018-19 Strategic Plan Tracking Report - Third Quarter Member McGill asked if staff finds it useful to prepare the quarterly tracking reports. Ms. Sasaki said yes. Member McGill said he finds the key indicators helpful; however, it sometimes is tempting to get more into operations than is appropriate in his role as a Board Member. Chair Williams said he appreciates the report; it is a dashboard only. There is no need to delve deeper as a Board Member. COMMITTEE ACTION: Received the information. C. Receive update on transition to CalPERS Healthcare Ms. O'Malley said the transition is on schedule. Open enrollment is occurring now and will end May 10. In response to a question from Member McGill, Ms. O'Malley confirmed that staff will contact anyone who has not responded by the deadline. COMMITTEE ACTION: Received the update. d. Receive list of future agenda items COMMITTEE ACTION: Received the list. 5. Announcements None. 6. Future Scheduled Meetings Tuesday, May 14, 2019 at 8:30 a.m. Tuesday, June 4, 2019 at 8:30 a.m. Tuesday, June 18, 2019 at 8:30 a.m. May 2, 2019 Regular Board Meeting Agenda Packet- Page 169 of 194 Page 8 of 8 Administration Committee Minutes April 16, 2019 Page 7 7. Suggestions for Future Agenda Items None. 8. Adjournment— at 9:36 a.m. May 2, 2019 Regular Board Meeting Agenda Packet- Page 170 of 194