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_- I CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-A392
BOARD OF DIRECTORS:
SPECIAL MEETING OF THE TAD✓.PILEcxI
President
CENTRAL CONTRA COSTA DAVID R. WILLIAMS
SANITARY DISTRICT President Pro Tem
ADMINISTRATION COMMITTEE MARSH DA RITZEN
MICHAEL R.MCGILL
MINUTES
PHONE: (925)228-9500
FAX- (925)372-0192
Monday, September 20, 2021 www.centralsan.org=
9:00 a.m.
(All attendees participated via videoconference)
Committee:
Chair David Williams
Member Tad Pilecki
Guest:
Andrew Brown, HighMark Capital (left after Item 4.a.)
Staff.
Katie Young, Secretary of the District
Philip Leiber, Director of Finance and Administration
Steve McDonald, Director of Engineeging (joined during Item 4.a.)
Danea Gemmell, Planning and Development Services Division Manager
Teji O'Malley, Human Resources and Organizational Development Manager
Kevin Muzino, Finance Manager
Benjamin Johnson, Internal Auditor
Christina Gee, Management Analyst
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 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.
October 7, 2021 Regular Board Meeting Agenda Packet- Page 156 of 200
Page 3 of 5
Special Administration Committee Minutes
September 20, 2021
Page 2
2. Call Meeting to Order
Member Pilecki called the meeting to order at 9:00 a.m.
3. Public Comments
None.
4. Items for Committee Recommendation to Board
a. Review draft Position Paper to approve proposed revisions to:
1. Board Policy No. BP 005 - Statement of Investment Policy, and
2. Investment Guidelines Documents (IGD) related to the Public Agencies
Post-Retirement Health Care Plan Trust, which includes both of the
following:
• IGD for the existing Government Accounting Standards Board 45
Other Post-Employment Benefits Trust (GASB 45 OPEB
Trust), and
• IGD for the Pension Prefunding Trust
Mr. Mizuno reviewed the draft Position Paper included in the agenda materials.
He provided a summary of the proposed changes to BP 005 which included the
following:
• Eliminate references to "GASB 45"in title of OPEB trust, as this is an old
accounting pronouncement that was superseded by the subsequent
issuance of GASB 75.
• Re-title the "Collateralized Certificates of Deposit"section to more clearly
distinguish it from 'Non-negotiable Certificates of Deposit'; which are also
permitted under the Investment Policy.
• Establish a 20% cap on the proportion of portfolio that may be invested in
Collateralized Non-Negotiable Certificates of Deposit. Adding a
proportional cap reduces investment risk and is consistent with other
investment policies of California municipalities. It is also consistent with
the fact that a proportional investment limit is also placed on the amount of
monies that may be invested in Negotiable Certificates of Deposit.
• Waive the requirement for Negotiable Certificates of Deposit to be rated
AA or higher if they are FDIC insured ($250,000 limit), consistent with
other California municipal investment policies.
• Increase the proportion of the portfolio that may be invested in
Commercial Paper as well as Medium Term Notes with a single issuer
from 5% to 10% to reflect changes to California Government Code section
53601, effectuated by Senate Bill 998.
October 7, 2021 Regular Board Meeting Agenda Packet- Page 157 of 200
Page 4 of 5
Special Administration Committee Minutes
September 20, 2021
Page 3
• Add "California Asset Management Program"and "CalTrust"in description
of "Government Pools"section to clarify that these are common pools
used by other California government agencies.
• Disclose the current investment cap ($75 million) in the LAIF (Local
Agency Investment Fund) section to improve transparency of the
document.
Member Pilecki questioned whether it was necessary to conform the policy to all
changes in the State law if the existing policy is more conservative. Mr. Mizuno
stated that conforming the policy to the new language per the State code
provides for more consistency (especially in light of the County managing the
funds), but the District would not be required to do so.
Mr. Mizuno reviewed the Investment Guidelines Document changes provided in
draft Position Paper, specifically the updated target return percentages to reflect
updated return projections by the investment manager, for the OPEB and
Pension Trusts.
In response to a question posed by Member Pilecki, Mr. Mizuno and Mr. Brown
provided a brief description of risk assumptions. The risk remained as moderate,
but the expected return percentage decreased, as future returns appear less
favorable. Member Pilecki stated that the return expectations change should be
highlighted and clarified in the final Position Paper and provided minor
typographical error corrections.
There was a discussion regarding emergent markets and diversification.
COMMITTEE ACTION: Recommended Board approval.
5. Other Items
a. Receive update on employee benefits for calendar year 2022
Ms. O'Malley provided a recap of the new health benefit adjustments
going into effect January 2022. Open enrollment began today until
October 15, 2021. She noted that Ca1PERS did eliminate three medical
plans effecting the majority of Central San's retirees. It was estimated that
with comparable plans offered to retirees, a decrease of 1.9% was
expected. For the first time in six years, the dental plan will increase by
4%.
Member Pilecki asked if there was any reaction from retirees regarding the
lost plans. Ms. O'Malley stated that Ca1PERS notified the retirees and staff
had not heard of any concerns at this time.
COMMITTEE ACTION: Received update.
October 7, 2021 Regular Board Meeting Agenda Packet- Page 158 of 200
Page 5 of 5
Special Administration Committee Minutes
September 20, 2021
Page 4
b. 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
Ms. O'Malley stated the Gantt charts had been revised and reflect less
tasks, namely with the ratification of tentative agreements signed with
Local One, which went to Board last week, and with the Management
Support/Confidential Group (MS/CG), which will go before the Board on
October 7. A provision of a few months was given to incorporate the new
terms and minor clean-up. Once fully incorporated and reviewed the new
Memoranda of Understanding for both bargaining units will be brought to
the Board for final adoption. At this time, the Management Group has not
formally ratified the tentative agreement. She anticipated an update by the
next Committee meeting.
Member Pilecki asked if some of the proposed future special closed
session meetings would be able to be canceled. Ms. O'Malley responded
that the closed sessions are being kept on schedule for potential issues
that may arise during the meet and confer process about vaccination
requirements.
COMMITTEE ACTION: Reviewed the information and received
update.
6. Announcements
None.
7. Suggestions for Future Agenda Items
a. Receive list of upcoming agenda items and provide suggestions for any
other future agenda items
Member Pilecki requested Board Policy BP 013 - Standing Committees be
revisited to discuss the process of selecting Committee Members and the
potential creation of a new Legislative Committee.
COMMITTEE ACTION: Received the list and provided input to staff.
8. Future Scheduled Meetings
Tuesday, October 5, 2021 at 9:00 a.m.
Tuesday, November 2, 2021 at 9:00 a.m.
Tuesday, December 7, 2021 at 9:00 a.m.
9. Adjournment — at 9:41 a.m.
October 7, 2021 Regular Board Meeting Agenda Packet- Page 159 of 200