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HomeMy WebLinkAboutAdministration MINUTES 06-18-19 Page 2 of 6 Arlai CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICTilM 5019 IMHOFF PLACE, MARTINEZ, CA 9,4553-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA DAVID R, WILLIAMS President SANITARY DISTRICT MICHAEL R.MCGILL ADMINISTRATION COMMITTEE President Pro Tem PAUL H CAUSEY JAMES A.NEJEDLY M I N U T E S TAD J PHECKI PHONE: (925)228-9500 Tuesday, June 18, 2019 FAX.- (925)372-0192 8:30 a.m. www.centralsan.org 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 Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Emily Barnett, Communications and Intergovenmental Relations Manager Teji O'Malley, Human Resources Manager Christina Gee, Management Analyst (left after Item 3.a.) Donna Anderson, Assistant to the Secretary of the District Erica Brooks Peters, Senior Internal Auditor (left after Item 3.b.) 1. Call Meeting to Order Chair Williams called the meeting to order at 8:30 a.m. 2. Public Comments None. 3. Agenda Items a. Receive recap of Central San Academy Spring 2019 Session Ms. Gee reviewed the presentation included with the agenda material. July 11, 2019 Special Board Meeting Agenda Packet- Page 225 of 241 Page 3 of 6 Administration Committee Minutes June 18, 2019 Page 2 Chair Williams asked if the roughly$12,000 cost of putting on this year's Academy included staff time. Ms. Gee said it does not include management staff time but does include a small amount of overtime for non-management staff. Given that an extra hour was added to the length of the classes this year, Member McGill said it would be helpful to have the cost broken down per student per class hour. Chair Williams said the out-of-pocket costs of$12,000 to educate 39 people is not an outrageous amount toward efforts to keep the public informed about Central San. Overall, he said this year's program was extremely successful. Mr. Bailey added that the Academy also provides a wonderful opportunity to engage with customers directly. COMMITTEE ACTION: Received the information and provided input to staff. b. Receive introduction to internal audit process and audit plan for 2019 and 2020 Ms. Brooks Peters reviewed the presentation included with the agenda material. Chair Williams asked for further explanation regarding Ms. Brooks Peters' comment that the audit plan will be risk-based. She replied that the goal is to look at the audit plan annually; any risk areas not covered in a prior year will be reassessed and reprioritized as necessary. Mr. Leiber explained that the risk assessment compiled by management a year ago revealed approximately 70 areas of potential operational risk to Central San. This work is currently being supplemented with an evaluation of approximately 30 higher-level strategic risks. Mr. Bailey said he would like internal auditing to be a standard process at Central San and envisions a structured approach to the audit process that is risk based. Member McGill said he liked the idea of internal audit being a standard practice and asked about best practices in that regard. Mr. Bailey said that audits, if done properly, should be tied with potential risk areas, which is why staff is focused on developing the risk inventory. The audit plan will be developed based on the risk inventory and other input. He said he has engaged an outside consultant to help finalize the risk inventory. July 11, 2019 Special Board Meeting Agenda Packet- Page 226 of 241 Page 4 of 6 Administration Committee Minutes June 18, 2019 Page 3 In response to a question from Member McGill as to how the areas for audit will be selected, Ms. Brooks Peters said she will select them in consultation with the General Manager and Department Directors. Chair Williams said he also favored a structured audit approach and believed that one based on risk is reasonable. A brief discussion took place as to developing a clear staff understanding of the audit process, theoretical best practices, and the audit reporting structure. As to the latter, Mr. Bailey said Ms. Brooks Peters reports directly to him now, but it would be his goal to create a separate Board Audit Committee for this purpose, if not the full Board. COMMITTEE ACTION: Received the information and provided input to staff. C. Receive customer survey results and trending data Ms. Barnett reviewed the presentation included with the agenda material, except for the portion regarding flushable wipes beginning on Slide 32, which was not presented due to time constraints. Ms. Barnett noted that the trending data is based on three surveys conducted in 2015, 2017, and 2019. The data will become more meaningful as more surveys are conducted. In response to a question from Chair Williams as to how survey participants are selected, Ms. Barnett said they are selected from high propensity voters within Central San's service area, after which an algorithm is applied so as not to oversimple within any particular demographic. Every effort is made to reach those who pay the sewer service bill. She said this allows for a true 95% survey competency level. Chair Williams also asked why participants are questioned about IPR/DPR (indirect/direct potable reuse). Ms. Barnett said it is important to understand what customers think about recycled water. She also noted that when survey questions cross-correlate on topics that align with Central San's sister agencies, the responses are shared with them. In turn, they reciprocate when they have information that may be of interest to Central San. COMMITTEE ACTION: Received the information. July 11, 2019 Special Board Meeting Agenda Packet- Page 227 of 241 Page 5 of 6 Administration Committee Minutes June 18, 2019 Page 4 d. Receive update on employee benefits for the Fiscal Year 2019-20 plan year Ms. O'Malley highlighted the information contained in the memorandum included with the agenda material during which she noted the following: • Had the District not transitioned to CaIPERS effective July 1, the premium rates for the medical plans would have increased by approximately $1 million per year. • Staff has changed from Hartford to Voya for Life Insurance, AD&D, and Long-Term Disability coverage because Hartford's quoted increases were too high. Ms. O'Malley said CaIPERS approves its healthcare premium rates each June for the following calendar year. Their meeting is being held today, and she will inform the Committee of the 2020 rates as soon as they are known. In response to a question from Member McGill, Ms. O'Malley said the estimated cost savings at the time the decision was made to transition to CaIPERS healthcare benefits was based on CaIPERS'2017 rates. It remains to be seen how actual-versus-predicted cost savings will compare. More will be known once the 2020 rates are adopted. Additionally, due to the transition to CaIPERS, she said she negotiated a decrease in the fees charged by the District's benefits broker, Alliant Employee Benefits, from $115,000 to $30,000 per year. COMMITTEE ACTION: Received the update and requested that staff provide the Committee with the 2020 CaIPERS healthcare premium rates once they have been established. e. Receive list of future agenda items COMMITTEE ACTION: Received the list. 4. Announcements None. 5. Future Scheduled Meetings Tuesday, July 9, 2019 at 8:30 a.m. Tuesday, August 6, 2019 at 8:30 a.m. Tuesday, August 20, 2019 at 8:30 a.m. July 11, 2019 Special Board Meeting Agenda Packet- Page 228 of 241 Page 6 of 6 Administration Committee Minutes June 18, 2019 Page 5 6. Suggestions for Future Agenda Items None. 7. Adjournment— at 10:04 a.m. July 11, 2019 Special Board Meeting Agenda Packet- Page 229 of 241