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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.
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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
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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.
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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
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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.
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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.
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