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HomeMy WebLinkAboutAdministration MINUTES 05-14-19 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, May 14, 2019 www.centralsan.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 Katie Young, Secretary of the District (present for all but the closed session) Kenton L. Alm, District Counsel Ann Sasaki, Deputy General Manager Jean-Marc Petit, Director of Engineering and Technical Services (arrived during Item 7.c.) Phil Leiber, Director of Finance and Administration (present for all but the closed session) John Huie, Information Technology Manager (present for Item 6.a. only) Teji O'Malley, Human Resources Manager Dennis Chebotarev, Information Technology Supervisor (present for Item 6.a. only) Khang Nguyen, Assistant Engineer (arrived during Item 7.c.) Donna Anderson, Assistant to the Secretary of the District (present for all but the closed session) 1. Call Meeting to Order Chair Williams called the meeting to order at 8:37 a.m. 2. Public Comments None. June 6, 2019 Regular Board Meeting Agenda Packet- Page 436 of 463 Page 3 of 7 Administration Committee Minutes May 14, 2019 Page 2 3. Announce Closed Session (pursuant to Government Code Section 54956.9 (d)(2) and(e)(4) and(5)) District Counsel Kent Alm announced that a closed session would be held for Item 4.a. 4. Closed Session a. Anticipated Litigation — Exposure to Litigation pursuant to Government Code Section 54956.9 (D)(2) and (E)(4) and (5) The closed session was attended by both Committee Members, Mr. Alm, Mr. Bailey, Ms. Sasaki, and Ms. O'Malley. 5. Report out of Closed Session Mr. Alm said no reportable action was taken. Upon conclusion of the closed session at 9:15 a.m., the Committee proceeded to Item 7.c., which was heard out of order. 6. Items for Committee Recommendation to Board a.* Review draft Position Paper to authorize the General Manager to execute: (1) a professional consulting services agreement with Emtec Consulting Services LLC with a cost ceiling of $2,300,000 for implementation of a new Oracle Cloud Enterprise Resource Planning (ERP) system, District Project 8250; and (2) a contract with DLT Solutions, Inc. as a reseller of Oracle software for Oracle Cloud ERP software for a five-year term at cost of $300,000 annually, for a total of $1,500,000 This item was heard upon conclusion of Item 7.c. Mr. Huie reviewed the attached presentation summarizing the information contained in the draft Position Paper. Chair Williams asked if a process is in place for deciding when software customization is warranted. Mr. Huie said both an ERP governance group and the IT Steering Committee, headed by Mr. Chebotarev, have been and will continue to meet regularly as the system is implemented to discuss such matters. He said that customizations are expected to be kept to a minimum with the new system because experience with extensive software customizations under the SunGard system have been problematic for future system upgrades. He noted, however, that keeping the number of customizations to a minimum may necessitate changing some of Central San's current practices, which staff is prepared to do. Mr. Huie added that staff is going into this process expecting issues to arise that will need to be addressed. Despite these challenges, staff is June 6, 2019 Regular Board Meeting Agenda Packet- Page 437 of 463 Page 4 of 7 Administration Committee Minutes May 14, 2019 Page 3 very excited for the new system and expects it will be of great benefit to the District. Member McGill asked if a Gantt chart has been developed with respect to the steps for implementation. Mr. Huie said the GFOA prepared one initially, but a more detailed, updated version can be developed. Mr. Leiber said the information on Slide 10 is based on staff's current understanding of the rules for which expenditures can and cannot be capitalized with an ERP system. Mr. Huie said that Oracle has just developed a new Community Development component for permits, inspections, etc. and has offered it at a great discount if Central San will be one of the first agencies to test it. Initial viewing of the software by permit counter staff was very positive and staff has expressed interest in participating in the testing phase. The cost of that component is not included in the recommended Board action under discussion at this meeting; staff will return at a future meeting once the testing period has been completed and the costs clarified. Both Committee Members concurred that the draft Position Paper was very informative and thorough. Chair Williams inquired about the concept of using open-source software (OSS) rather than a system from a single company, noting that some agencies are moving in that direction. Mr. Huie said he used to be an advocate of OSS, but he has since changed his views because an OSS requires specialized skill sets and is much more difficult to support. Purchasing an integrated system that is already configured is preferred. COMMITTEE ACTION: Recommended Board approval. b. Review draft Position Paper to authorize the General Manager to enter into a professional consulting services agreement with Bienati Consulting Group, Inc. to facilitate Executive Management Team annual performance evaluations in an amount not to exceed $42,500 for a three-year period commencing June 6, 2019, and include an option to extend for two additional years subject to Board approval Mr. Bailey said his purpose in bringing this item before the Committee was two-fold: 1) Does the Board wish to continue using a third-party to facilitate annual performance evaluations of the Executive Management Team, and, if so, 2) Does the Board wish to continue utilizing the services of Mr. Bienati? He noted that even though the amount of Mr. Bienati's contract is within his signature authority, Mr. Bienati's services are directly with the Board. June 6, 2019 Regular Board Meeting Agenda Packet- Page 438 of 463 Page 5 of 7 Administration Committee Minutes May 14, 2019 Page 4 Both Committee Members said they liked having third-party involvement in the process. Member McGill added that he likes the continuity of having the same consultant for several years, especially since the Board President changes each year. It also relieves staff from having to facilitate the evaluations. Chair Williams said having long-term consultant relationships raises the issue of if and when to go out for competitive bids. In response to a question from Chair Williams, Ms. Sasaki said approximately$389,000 was paid over the last five years to Mr. Bienati for consulting services related to the Management Leadership Academy and management coaching (both of which utilized sub-consultants), developing strategic planning goals and strategies, and Executive Management Team performance evaluations. Chair Williams said that consulting services such as these are needed, but there should be a system in place for periodic requests for proposal for the various components. Member McGill said he was not necessarily in favor of competitive bidding for these services. COMMITTEE ACTION: Recommended Board approval. 7. Other Items a.* Discuss Electronic Vehicle Charging Station grant application Due to time constraints, Mr. Petit quickly reviewed several slides from the attached presentation. He said there are currently six employees with electric cars and several others with hybrid vehicles. With increasing frequency, permit counter customers drive electric cars. For this reason, Program Manager for Resource Recovery Melody LaBella has been working with Mr. Nguyen to research ways Central San could address the need for electric vehicle charging. One proposal under consideration is to install three dual charging stations in the Plant Operations Division parking lot which could accommodate up to six vehicles at any given time. The cost of installation would be roughly $100,000. There are two ways to provide the electric vehicle charging stations: 1) electric vehicle charging as a service (meaning Central San would not own the equipment, it would be managed by a vendor for a monthly fee), or 2) the District would purchase, install, and maintain the equipment itself. If the latter, a grant may be available, the application for which is due by June 30. Ms. O'Malley stated that providing electric vehicle charging stations is one of the options under the state-mandated Bay Area Commuter Benefits Program (BACBP). Adding the charging stations would bring Central San June 6, 2019 Regular Board Meeting Agenda Packet- Page 439 of 463 Page 6 of 7 Administration Committee Minutes May 14, 2019 Page 5 one step higher on the BACBP list, which is a goal expressed by this Committee in the past. Chair Williams said he has some high-level concerns and would like more time to fully understand the proposal. He suggested moving forward with the grant application to meet the deadline, but also bringing the item back for further discussion at a future meeting. Member McGill concurred. COMMITTEE ACTION: Suggested proceeding with the grant application and bringing the item back for further discussion at a future meeting. b. Discuss continuing use of outside facilitator (BHI Consulting) for annual Board Self-Evaluation Workshops Due to time constraints, this item was postponed to a future meeting. COMMITTEE ACTION: None. C. Receive update on transition to CalPERS Healthcare This item was taken out of order, immediately upon conclusion of the Item 5. Upon completion of this item, the Chair resumed hearing the agenda items in order, beginning with Item 6.a. Ms. O'Malley updated the Committee concerning several out-of-the- ordinary situations that have arisen involving health coverage for a small number of retirees as a result of the open enrollment period, which closed last week in conjunction with the transition to CaIPERS. She said such situations are to be expected with a transition of this nature and staff is working diligently with Ca1PERS and labor counsel to resolve them. COMMITTEE ACTION: Received the update. d. Discuss staff proposal for support in fostering additional contributions for Central San's employee charitable giving program Due to time constraints, this item was postponed to a future meeting. COMMITTEE ACTION: None. e. Receive list of future agenda items Due to time constraints, this item was postponed to a future meeting. COMMITTEE ACTION: None. June 6, 2019 Regular Board Meeting Agenda Packet- Page 440 of 463 Page 7 of 7 Administration Committee Minutes May 14, 2019 Page 6 8. Announcements None. COMMITTEE ACTION: None. 9. Future Scheduled Meetings a. Tuesday, June 4, 2019 at 8:30 a.m. Tuesday, June 18, 2019 at 8:30 a.m. Tuesday, July 9, 2019 at 8:30 a.m. 10. Suggestions for Future Agenda Items None. 11. Adjournment— at 10:38 a.m. June 6, 2019 Regular Board Meeting Agenda Packet- Page 441 of 463