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Home My WebLink About12.a. Committee Minutes-Administration 12-01-20 Page 1 of 6 Item 12.a. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT December 17, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: DECEMBER 1, 2020 -ADMINISTRATION COMMITTEE - CHAIR WILLIAMS AND PRESIDENT MCGILL Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Minutes of 12-01-20 meeting December 17, 2020 Regular Board Meeting Agenda Packet- Page 163 of 173 Page 2 of 6 ol&)i Cwil ENTRAL SAN CONTRACENTRAL • IMHOFF PLACE, MARTINEZ, CA 9AS53-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: MICHAEL R.MCGILL CENTRAL CONTRA COSTA President SANITARY DISTRICT TAD JPILECKI President Pro Tem ADMINISTRATION COMMITTEE PAUL H.CASEY JAMES A.NEJEDLY DAVID R, WILLIAMS MINUTES PHONE: (925)228-9500 FAX.- (925)372-0192 Tuesday, December 1, 2020 www.centralsan.org 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California (All attendees participated via videoconference) Committee: Chair David Williams Member Mike McGill Staff. Roger S. Bailey, General Manager Katie Young, Secretary of the District Kent Alm, District Counsel Phil Leiber, Director of Finance and Administration Jean-Marc Petit, Director of Engineering and Technical Services Teji O'Malley, Human Resources Manager Tim Potter, Environmental Compliance Superintendent, and MS/CG President Christina Gee, Management Analyst Donna Anderson, Assistant to the Secretary of the District 1. Public Notice Regarding COVID-19 This meeting was held in accordance with the Brown Act as in effect under the State Emergency Services Act, the Governor's Emergency Declaration related to COVID-19, and the Governor's Executive Order N-29-20 issued on March 17, 2020 that allowed Board Members, District staff, and the public to participate in and conduct the meeting by teleconference, videoconference, or both. The agenda included instructions for options in which the public could participate in the meeting. December 17, 2020 Regular Board Meeting Agenda Packet- Page 164 of 173 Page 3 of 6 Administration Committee Minutes December 1, 2020 Page 2 2. Call Meeting to Order Chair Williams called the meeting to order at 8:35 a.m. 3. Public Comments - None. 4. Announce Closed Session District Counsel Kent Alm announced the closed session for Item 5. Both Committee Members, Mr. Alm, Mr. Bailey and Ms. O'Malley recessed to closed session at 8:36 a.m. 5. Closed Session a. Conference with labor negotiators pursuant to Government Code Section 54957.6: District Negotiators: • Roger S. Bailey, General Manager • Teji O'Malley, Human Resources Manager Employee Organizations: • Employees' Association, Public Employees Union, • Local One Management • Support/Confidential Group (MS/CG) Management Group • Unrepresented At-Will Positions 6. Report Out of Closed Session — No report. 7. Agenda Items a. Review the draft Position Paper to adopt Resolution No. 2020- to update current accrued leave cash-out practices for unrepresented at-will positions so they are no longer subject to the constructive receipt doctrine pursuant to the Internal Revenue Code (IRC), and to rescind Resolution 2018-052 Ms. O'Malley briefly summarized how the District's current procedures are structured regarding accrued leave cash-out practices for employees. She said the IRC constructive receipt doctrine indicates that such cash- outs are subject to taxation in the year they are accrued versus when they are cashed out. Not complying with the IRC could result in tax implications and possible penalties for Central San and its employees. December 17, 2020 Regular Board Meeting Agenda Packet- Page 165 of 173 Page 4 of 6 Administration Committee Minutes December 1, 2020 Page 3 For that reason, Ms. O'Malley said she has been meeting with all three bargaining units and those employees holding unrepresented at-will positions to review options for complying with the IRC provisions. Ms. O'Malley said the unrepresented employees have elected to implement Option 1, as outlined in the draft Position Paper, which is an irrevocable election to cash out all or a portion of their accrued leave (not to exceed 160 hours per year) before the taxable year in which any leave that is subject to the cash-out is earned. Ms. O'Malley said the three bargaining units: Public Employees Union, Local#1, Management Support/Confidential Group (MS/CG), and Management Group, have not yet agreed to any of the options offered. Member McGill asked whether bringing forth Option 1 for just the unrepresented at-will employees would put Central San at greater risk with the Internal Revenue Service (IRS) if the three bargaining units did not also agree. Ms. O'Malley said there is always that risk, however, the District is doing its due diligence by actively working with the bargaining units to reach a solution. Chair Williams encouraged Ms. O'Malley to make clear to the bargaining units the individual liability the employees could face by not adhering to this IRC provision. It was his understanding that there could be a significant tax liability for employees if the situation is not remedied. Ms. O'Malley confirmed that it had been made clear to the bargaining units the possibility that employees could end up owing taxes on monies they have not yet received. Mr. Potter, President of MS/CG, said he had been an active participant in the discussions to date. He said the IRC rules regarding constructive receipt related to stock options and bonus payments are very clear, however, the legal opinions on the sections of the IRC governing leave cash-outs are not. He has found no instances where the IRS has taken legal action regarding leave cash-outs. Central San employees currently pay taxes in the year their accrued vacation is cashed out, so there has never been any tax liability evasion. On the other hand, he understood the need to move forward so as not to create exposure for either Central San or the employees, but he hopes the impact can be tempered. Mr. Potter said there is a fair amount of flexibility concerning cash-out options, and MS/CG is trying to find a way of balancing the impacts of the current flexibility with other options. December 17, 2020 Regular Board Meeting Agenda Packet- Page 166 of 173 Page 5 of 6 Administration Committee Minutes December 1, 2020 Page 4 Member McGill said he was willing to recommend Board approval provided attempts will be made to achieve resolution with the three bargaining units as soon as possible. Chair Williams agreed. COMMITTEE ACTION: Recommended Board approval. b. Receive information regarding Internal Revenue Code (IRC) limits that apply for pension contributions and pension benefits Ms. O'Malley recapped the information in the memo included with the agenda material, which clarified the IRC limits applicable to pension contributions and pension benefits based on the date an employee becomes a member of the Contra Costa County Employees'Retirement Association (CCCERA). She noted that updated information regarding the IRC limits will be provided to the Committee annually going forward. COMMITTEE ACTION: Received the information. C. Receive the updated COVID-19 Exposure Prevention Plan Ms. O'Malley said the initial COVID-19 Exposure Prevention Plan was created in March/April of this year. A second iteration was distributed to employees in July after meeting with the various bargaining units. More significant changes have occurred in recent months, including the definition of"close contact,"reporting requirements for employees who test positive, the matrix of symptoms for determining quarantine and mandatory testing, and protocols for use of Central San gyms. For these reasons, the plan was recently updated again and provided to all employees. She said her staff will be holding an online seminar later in the week for employees. In response to a question from Member McGill on staff's receptivity to the protocols, Ms. O'Malley said her group has regularly received feedback from employees since the pandemic began. All employee groups appear to be very engaged in terms of following the guidelines and reporting any perceived breaches. She also has received informational emails from employees of national and global studies related to the pandemic. COMMITTEE ACTION: Received the update. 8. Announcements a. Mr. Bailey announced that he and management staff prepared a Board Briefing Book for FY20-21 to benefit the two new Board Members elected in the November 2020 election. The Briefing Book is a compilation of various topics on which the Board will be making policy decisions in the December 17, 2020 Regular Board Meeting Agenda Packet- Page 167 of 173 Page 6 of 6 Administration Committee Minutes December 1, 2020 Page 5 future. It has been distributed to all Board Members and the management team. 9. Suggestions for Future Agenda Items None. 10. Future Scheduled Meetings Tuesday, December 15, 2020 at 8:30 a.m. 11. Adjournment— at 10:09 a.m. December 17, 2020 Regular Board Meeting Agenda Packet- Page 168 of 173