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HomeMy WebLinkAboutAdministration MINUTES 04-06-21 Page 2 of 8 CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-A392 BOARD OF DIRECTORS: MEETING OF THE TA°IPILECK' President CENTRAL CONTRA COSTA DAVID R. WILLIAMS SANITARY DISTRICT President Pro Tem ADMINISTRATION COMMITTEE BARBARA°URITZEN MICHAEL R.MCGILL MINUTES PHONE: (925)228-9500 TAX- (925)372-0192 Tuesday, April 6, 2021 www.centralsan.org 9:00 a.m. (All attendees participated via videoconference) Committee: Chair David Williams Member Tad Pilecki Guest: Donna Anderson (left after Item 4.b.) Staff. Roger S. Bailey, General Manager Katie Young, Secretary of the District Philip Leiber, Director of Finance and Administration Steve McDonald, Director of Operations Danea Gemmell, Planning and Development Services Division Manager Benjamin Johnson, Internal Auditor (left after Item 4.b.) Emily Barnett, Communications & Government Relations Manager (arrived during Item 4.b.) Kevin Muzino, Finance Manager (left during Item 4.b.) Teji O'Malley, Human Resources and Organizational Development Manager Christina Gee, Management Analyst Amelia Berumen, Provisional 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. April 15, 2021 Regular Board Meeting Agenda Packet- Page 167 of 185 Page 3 of 8 Administration Committee Minutes April 6, 2021 Page 2 2. Call Meeting to Order Chair Williams called the meeting to order at 9:00 a.m. 3. Public Comments None. In response to an inquiry by Member Pilecki's of the content of the agenda and whether any items may need to be heard out of order due to time sensitivity, Mr. Bailey requested Item 4.c. be heard as the first order of business. 4. Items for Committee Recommendation to Board a. Review Draft Position Paper to Consider Adopting New Board Policy No. BP 043 - Buffer Property Management, Effective Immediately This item was heard immediately following Item 4.c. Member Pilecki commented that staff did a great job incorporating the Committee's comments and drafting the policy. Chair Williams agreed. COMMITTEE ACTION: Reviewed and recommended Board approval. b. Review Draft Position Paper to Consider Taking the Following Actions: • Amend and Retitle Board Policy (BP) No. BP 013 — Standing Committees, Protocols, Guidelines and Charters • Adopt New BP 044 — Board Leadership and Community Representation • Adopt New BP 045 — Board Compensation, Benefits, And Expense Reimbursement, And • Rescind Resolution Nos. 2012-018 and 2015-008 Ms. Young reviewed the draft Position Paper included in the agenda material and the Committee reviewed each policy in detail. BP 013 - Standing Committee, Protocols, Guidelines and Charters Member Pilecki suggested including a provision in the policy regarding the expected time length of the Committee meetings. Chair Williams and Mr. Bailey opined that including a meeting length schedule was unnecessary. In conjunction with a suggestion from Member Pilecki, there was a lengthy discussion regarding an addition of a fifth committee that would focus on regulatory and legislative issues. Chair Williams stated that he is not a proponent of extending staff's workload but agreed that such a committee April 15, 2021 Regular Board Meeting Agenda Packet- Page 168 of 185 Page 4 of 8 Administration Committee Minutes April 6, 2021 Page 3 would be beneficial as long as there was enough information for a meeting. Mr. Bailey stated that staff could arrange to conduct meetings during the "busy"legislative time of the year(January-August). It was concluded that staff would bring BP 013 back to the Committee at a future meeting for further discussion on possibly adding a Regulatory/Legislative Committee. Staff will be performing its due diligence and research to provide input to the Committee on this matter. Ms. Young advised the Committee that currently BP 013 does not include the process in which the Committee representatives are chosen; it was decided that topic would be brought back for further discussion at a future meeting. The Committee recommended Board approval with the recommended changes by staff and information provided by the Committee. BP 044— Board Leadership and Community Representation Member Pilecki suggested minor word corrections to the policy. Member Pilecki requested staff seek District Counsel advice on Item 1.c., Exceptions to Rotation Schedule, whether a simple or super majority vote is needed to deviate from the rotation schedule provided in the proposed Board Policy. In addition to the nine organizations already represented by the Board, Member Pilecki suggested that it would be beneficial for Central San to appoint Board representatives to the regional State Water Resources Control Board (SWRCB) and the Bay Area Air Quality Management District (BAAQMD). Chair Williams concurred. The Committee recommended Board approval with the corrections provided to staff. BP 045 - Board Compensation, Benefits and Expense Reimbursement Member Pilecki provided staff with minor wording changes to the policy, including adding the words "non-travel"to the title to make the document consistent. In discussion regarding stipendable events, Ms. Young reminded the Committee that at the Board Self-Evaluation Workshop in January 2020, the Board went through line-by-line and voted on events/meetings that they agreed qualified for a stipend. Member Pilecki requested that words "Board Workshops"be included in the Activities Eligible for Meeting Stipends. April 15, 2021 Regular Board Meeting Agenda Packet- Page 169 of 185 Page 5 of 8 Administration Committee Minutes April 6, 2021 Page 4 Under the benefits section, Member Pilecki asked whether the District paying the PEMHCA (Public Employees'Medical and Hospital Care Act) minimum for Board Members upon separation would violate a government code that prohibits an agency paying any amount towards post-service benefits for Board members. Ms. O'Malley stated that the State code, which governs Ca1PERS, does require that the PEMCHA minimum be paid on behalf of Board Members as a requirement for an agency to participate in the Ca1PERS Healthcare plan. She noted that although there seems to be a contradiction between the two code sections, she verified with the District's benefits counsel that District payment of the PEMHCA minimum is compliant with both code sections. Upon discussion of electronic devices, Member Pilecki suggested adding laptops to be included as an option for Board Members. Ms. Young advised that she would present the Committee with an updated BP 014 — District Owned Mobile Computing Devices for Board Members at a future meeting. In conclusion, the Committee recommended Board approval of the proposed BP 045 with minor changes provided by the members. In response to a question from Chair Williams, Ms. Young stated that the Board Handbook and the proposed BP 045 cross-reference information for the members. The handbook is provided for new Board Members as a general guideline. She further stated that the Board Policy will be reviewed biennially and easier to navigate than the Resolutions. To clarify, the Committee decided to move forward with all of the recommended Board Policies provided by staff. Direction was provided on BP 013— Standing Committees regarding a potential additional of a Board Committee on Regulatory/Legislative issues and the process in which Committee members are assigned to each committee, to be returned for further discussion at a future Administration Committee meeting. COMMITTEE ACTION: Reviewed and recommended Board approval of the three policies with revisions provided to staff. C. Review Draft Position Paper to Consider Adopting New Board Policy No. BP 046 — Regulatory Accounting This item was heard before Item 4.a. Mr. Leiber reviewed the draft Position Paper included in the agenda material addressing the adoption of a proposed policy on Regulatory Accounting. The policy would address situations for certain expenditures or revenues that would be normally be recognized in a single accounting period or treated as an Operations and Maintenance (O&M) item. April 15, 2021 Regular Board Meeting Agenda Packet- Page 170 of 185 Page 6 of 8 Administration Committee Minutes April 6, 2021 Page 5 Nonetheless, a significant rationale may exist for recognizing them over multiple years or treating them as capital expenditures. Governmental Accounting Standards Board (GASB) 62 provides that a regulator or governing board with ratemaking authority may elect to adopt regulatory accounting treatment for such items. Staff has developed the proposed Board Policy and associated Administrative Procedure (AP) to specify the situations in which this would be allowable, and the process for authorizing such items. Member Pilecki expressed awareness of several situations at Central San where O&M versus Capital expenditures treatment had been specified based on input from District Counsel and other factors and noted that the policy would provide for a significant change from past practice. The issue of the cost treatment for the Wastewater Master Plan and other studies was discussed. Mr. Leiber noted that the policy would be limited in its application, primarily to expenditures closely related to projects in the Capital budget, and that all items to be treated under regulatory accounting would be reviewed and approved by the Board. Member Pilecki requested that the policy be reviewed by the District's outside auditors Maze &Associates. Mr. Leiber advised that he did reach out to GASB to discuss whether or not GASB 62 applied to the District and stated he would also discuss it with Maze &Associates. Member Pilecki requested Mr. Leiber add the information received from GASB to the Position Paper. Chair Williams believes that the situations for the use of the regulatory accounting treatment would be limited and expressed satisfaction that the Board would be reviewing the treatment on a case-by-case basis. Mr. Leiber advised the Committee that, normally, the Board does not review Administrative Procedures, but staff wanted to include the procedures in order for the Board to see the specific guidelines on the permissible situations. It was emphasized that the Board makes the ultimate decision in each case, and that this policy would provide opportunities for improved intergenerational equity, where the beneficiaries of the particular projects and initiatives are paying for them over their usage period. Mr. Bailey advised the time is of the essence in relations to the Information Technology (IT) Master Plan and its treatment in the upcoming draft budget, which is scheduled to be provided to the Board on May 6. He stated that considering time constraints, staff will obtain input from Maze & April 15, 2021 Regular Board Meeting Agenda Packet- Page 171 of 185 Page 7 of 8 Administration Committee Minutes April 6, 2021 Page 6 Associates and proceed to present the policy for Board review, with a report on any such feedback received from the auditors. Member Pilecki suggested that since the regulatory accounting treatment could impact proposed rate increases, the information about proposed expenditures to be treated under the policy should be provided to the Board in advance of the public hearings when rates are reviewed. Staff agreed that was the best situation and is the intent of the policy. Member Pilecki provided some minor changes to the Position Paper before presenting to the Board. It was determined that the Committee supported bringing the policy forward for Board consideration, with a report from staff of any feedback obtained from Maze &Associates. COMMITTEE ACTION: Reviewed and recommended Board approval, subject to staff providing a report of any comments from Maze & Associates on the policy. 5. Other Items a. Conduct Biennial Review of the Following Board Policies: A. BP 001 - Employee Computer Loan Program B. BP 002 - Diversity Statement C. BP 016 - Security Regarding BP 001 — Employee Computer Loan Program, Member Pilecki inquired about the interest rate set for the program. Mr. Leiber stated that it is based off on Local Agency Investment Fund (LAIF) rates. No changes were requested of the current policy. The Committee had no changes to BP 002. Regarding BP 016— Security, Member Pilecki suggested adding IT systems to the policy. Ms. Young stated the addition of the IT systems would be reviewed and returned to the Committee if changes were made. COMMITTEE ACTION: Reviewed the information and provided input to staff regarding revisiting review of BP 016. The Committee concurred with staff that no changes were needed for BP 001 and BP 002. April 15, 2021 Regular Board Meeting Agenda Packet- Page 172 of 185 Page 8 of 8 Administration Committee Minutes April 6, 2021 Page 7 b. Provide Direction on Recreational Vehicles (RV) Receiving Station, District Project (DP) 7375 Member Pilecki agreed with staff's recommendation regarding the self- service and the hours of operations but suggested to provide the RV Receiving Station at no charge to participants for the first couple of years in order to establish the program. Chair Williams agreed. COMMITTEE ACTION: Discussed and provided input to staff. C. Review Timelines (Gantt Charts) For Activities Related to Upcoming Labor Negotiations with the Management Group, Management Support/Confidential Group, and Public Employees Union, Local #1 The Committee reviewed the Gantt Charts and provided feedback to staff. Chair Williams stated that he strongly believes that in order to maintain good faith in the bargaining process, both the negotiators and the unions exchange proposals concurrently. COMMITTEE ACTION: Discussed and provided direction to staff. 6. Announcements Mr. Bailey announced that during the special Closed Session Board Meeting this Thursday, the Board will conduct consultant interviews for a District negotiator. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list and provided input to staff. 8. Future Scheduled Meetings Tuesday, May 4, 2021 at 9:00 a.m. Tuesday, June 8, 2021 at 9:00 a.m. Tuesday, July 6, 2021 at 9:00 a.m. 9. Adjournment— at 10:24 a.m. April 15, 2021 Regular Board Meeting Agenda Packet- Page 173 of 185