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Home My WebLink AboutBOARD MINUTES 11-04-19 (Special) CENTRALSAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 94553-A392 MINUTES BOARD OF DIRECTORS: DAVID R. WILLIAMS President SPECIAL BOARD MEETING MI Monday, November 4, 2019 President ntProTem Collection Systems Operations Building PAUL CAUSEY Conference Room, 1250 Springbrook Road 'AMT�;PEJED Y Walnut Creek 11:00 a.m. Open Session (Not video recorded) ROLL CALL A special meeting of the Board of Directors was called to order by President Williams at 11:02 a.m. in the Conference Room of the Collection Systems Operations Building in Walnut Creek. Secretary of the District Katie Young called roll. PRESENT. Members: Causey, McGill, Nejedly, Pilecki and Williams ABSENT.• Members: None PUBLIC COMMENTS None. ANNOUNCE CLOSED SESSION {pursuant to Government Code Section 54957.7) District Counsel Kent Alm announced that a closed session would be held for Item 9. RECESS TO CLOSED SESSION The Board recessed at 99:03 p.m. to reconvene in closed session in the Conference Room. Closed Session CLOSED SESSION 1. Personnel matters pursuant to Government Code Section 54957(b)(1)— PerFormance Evaluations for following Member of Executive Management Team: General Manager and Secretary of the District Book 67— Page 167 CENTRAL CONTRA COSTA SANITARY DISTRICT November 4, 2019 Special Board Workshop Minutes-Book 67-Page 168 RECESS TO OPEN SESSION The Board recessed at 1:56 p.m. to reconvene in open session in the Conference Room. Open Session REPORT OUT OF CLOSED SESSION Item 1. — District Counsel Kent Alm reported that there was no action taken. BOARD WORKSHOP (Aaprox. 12:30 p.m.] 2. The workshop, covering the topics listed below, was facilitated by Larry Bienati, Ph.D., Senior Principal of Bienati Consulting Group, Inc.: a. Annual Operations and Maintenance (O&M} Budget— Future Expectation General Manager Roger S. Bailey reviewed the presentation included in the agenda materials. There was a lengthy discussion regarding the District maintaining a flat O&M budget going forward, and if it would be feasible. Member Causey suggested more support in capital and discussed different options for keeping the O&M budget flat. Member Pilecki opined that with 74 percent of the budget being salaries and benefits, he believes it is unrealistic to expect a flat budget and keep the same level of staff. Member Nejedly stated that with the amount of capital improvements the District has planned, some of the work should be distributed amongst staff rather than consultants. Mr. Bailey advised the Board that from the meetings with one of the District's bargaining units, Local One, there has been concern about staffing levels and the need to add staff for the upcoming capital program. Member Causey stated that cross training would be very beneficial to the District. President Williams asked if that was a possibility with the current memorandum of understanding. Human Resources Manager Teji O'Malley stated that a broad program of that nature would likely require meet-and- confer meetings with the unions, potential salary adjustments and market data would need to be reviewed prior to implementation of any such formalized program. There was a consensus that an O&M budget kept at or below the levels specified in the four-year rate action plan would be appropriate. The budgeted CENTRAL CONTRA COSTA SANITARY DISTRICT November 4, 2019 Special Board Workshop Minutes-Book 67-Page 169 levels for the next three years provide for the same level of service as budgeted in FY 2019-20, with anticipated adjustments for salaries as specified in the memoranda of understanding and inflation for other cost items. b. The Board's Role— Labor Relations There was a lengthy discussion on the labor relations following the most recent labor negotiation process and the concerns expressed by employees. Mr. Bailey stated that he believes the Board Members'individual meetings with representatives for Local One have been moving matters in the right direction and that it is important to maintain harmony in the workplace and to motivate employees. Member Pilecki expressed his concerns regarding future negotiations and the lack of communication between employees and the Board. Discussion ensued regarding the role of the outside representative in these communications. President Williams indicated that he believes the Board received the necessary information to make an informed decision on the contracts. Member Causey stated that the communication needs to improve with the messaging to all staff from the union representatives. Ms. O'Malley advised the Board that union representatives are provided training prior to the start of negotiations. Immediately following this item, the Board proceeded to Item 2.f. C. Succession Planninq at the Senior Level This item was tabled for a future meeting due to time constraint. d. Central San 2030 This item was tabled for a future meeting due to time constraint. e. Business Case Evaluations (BCE) Model This item was tabled for a future meeting due to time constraint. f. Board Policy on Pension Funding Level This item was heard immediately following Item 2.b. Mr. Bailey reviewed the presentation included in the agenda material. He stated that the Board should discuss what the optimum pension and Other Post-Employment Benefits (OPEB) funding levels should be for the District CENTRAL CONTRA COSTA SANITARY DISTRICT November 4, 2019 Special Board Workshop Minutes-Book 67-Page 170 and suggested the Board consider developing a policy specifying what level of commitment would be most desirable. Member Pilecki stated that the District needs to look at the unfunded liability including the trust funds and there should be no super funding. Member Nejedly believes Central San has done an amazing job on reducing its unfunded liabilities and inquired as to what number is attainable. He suggested that the Board receive a number from staff and try to maintain that level. There was a discussion regarding trust funds and usable money towards pension obligations of Contra Costa County Employees'Retirement Association (CCCERA). Members McGill and Nejedly suggested that a base threshold for pension funding should be 95% or above. Mr. Leiber reviewed the proposal that would specify the period over which funding shortfalls would be made up through additional deposits to either CCCERA or the trusts. Mr. Bailey stated that staff would prepare a draft Board Policy on this matter with staffs recommendation for consideration and discussion by the Administration Committee. Member McGill left the meeting at 3:02 p.m. 9. Strategic Plan Development— Fiscal Years 2020-22 Management Analyst Christina Gee reviewed the presentation included in the agenda material. There was a discussion on Central San's Vision, Mission and Values. The Board also was provided some of the culture statements created by management. Member Causey said he believed that learning from mistakes and tolerating failure are very important and need to be included in any culture statement. Member Nejedly stated that a culture statement should be developed by staff and should make all employees feel like part of a team. ANNOUNCEMENTS Secretary of the District Katie Young announced the following upcoming meetings: Administration — Tuesday, November 5th at 8:30 a.m. CENTRAL CONTRA COSTA SANITARY DISTRICT November 4, 2019 Special Board Workshop Minutes-Book 67-Page 171 Regular Board Meeting— Thursday, November 7th at 1:30 p.m. ADJOURNMENT The meeting was adjourned at 3:22 p.m. _17)aa�e P �4) David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie-Youngp -:Secretary of the District 'Central Contra Costa Sanitary District County of Contra Costa, State of California