HomeMy WebLinkAbout04.d. Review draft Position Paper to consider adopting proposed revisions to Section 11. Contracts for Goods and Services of Board Policy No. BP 037 - General Manager Delegation of AuthorityItem 4.d.
BOARD OF DI RECTORS
POSIT ION PA PER
DRAFT
M E E T ING D AT E:MAY 4, 2021
S UB J E C T: R E V I E W D R A F T TO A D O P T NE W B O A R D P O L I C Y B P 047 - DEF ERRED
COMPENSAT ION PL AN
S UB M I T T E D B Y:
K E V I N MI Z UNO, F I NA NC E MA NA G E R
I NI T I AT I NG D E PART M E NT:
A D MI NI S T R AT I O N-F I NA NC E
RE V IE WE D B Y:T E J I O'MA L L E Y, HUMA N R E S O UR C E S & O R G A NI Z AT I O NA L
D E V E L O P ME NT MA NA G E R
P HI L I P L E I B E R , D I R E C TO R O F F I NA NC E & A D MI NI S T R AT I O N
K E NTO N L . A L M, C O UNS E L F O R T HE D I S T R I C T
IS S UE
Adoption of new B oard policies requires approval f rom the Board of Directors. F ollowing recommendation
for approval by the Def erred Compensation A dvisory C ommittee, it is recommended that the Board adopt
the attached D eferred C ompensation P lan Board P olicy (B P 047) to provide greater guidance on the
Board and Advisory Committee's role with respect to D eferred C ompensation P lan matters.
B AC K G RO UND
D uring 2020, one of the goals undertaken by District staff and the D eferred C ompensation Advisory
C ommittee (A dvisory C ommittee) was to review and revise existing administrative procedures to more
accurately ref lect C entral San's current organizational structure and to solidif y the scope of A dvisory
C ommittee member responsibilities. D uring this review process, staff identified that the Advisory
C ommittee's administrative procedures were last reviewed in 2012. A t that time, this document was
presented to and approved by the B oard, which is no longer required f or internal administrative procedures
documents. As a result of turnover of several core staff members involved in the administration of the
D eferred C ompensation P lan since then, this document required signif icant revisions to bring it up to date.
After reviewing the document with and receiving f eedback f rom the A dvisory C ommittee at its quarterly
meetings during 2020, the f inal draf t of the A dministrative P rocedures document was reviewed and
approved by the Advisory Committee at its F ebruary 3, 2021 meeting.
F ollowing approval by the Advisory Committee, the A dministrative P rocedures document was presented
to and discussed with the F inance C ommittee at its March 23, 2021 meeting given its historical
involvement in the Def erred Compensation Plan and as its predecessor document was approved by the
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Board in 2012. F ollowing the implementation of f eedback f rom the F inance Committee, the revised and
final Administrative Procedures document was executed General Manager on April 5, 2021.
Prospectively, this document will be reviewed at least every two years by staff and the A dvisory C ommittee
and presented to the General Manager f or approval, which is the normal practice f or Central S an's
Administrative Procedures.
C entral San generally develops an overarching B oard Policy f or each Administrative Procedures
document. W hile the goal of B oard Policies is to summarize the significant policy-level matters which
must be approved by the governing body, Administrative Procedures outline more granular process details
and are maintained by the General Manager. Accordingly, since no such document currently exists in the
usual f orm, staf f has developed the attached D eferred C ompensation P lan Board P olicy (B P 047) to steer
the policy objectives of the Def erred Compensation Plan and its Advisory Committee as an umbrella and
authoritative source document f or the newly revised Administrative Procedures document. W hile the
attached B oard Policy was reviewed and approved by the Advisory Committee at their F ebruary 3, 2021
meeting, it was not presented to the F inance Committee on March 23, 2021 as the A dministration
C ommittee is the normal body charged with reviewing and recommending new or revisions to existing
Board P olicies.
By implementing this new B oard Policy, the D eferred C ompensation P lan will become more formalized in
accordance with current D istrict standards. F urthermore, staff is conf ident these documents will provide
improved guidance and transparency to all stakeholders, including: staff involved in administration of the
Plan, the P lan's third-party administrator, the A dvisory C ommittee members, as well as current and
prospective Plan participants.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
T he B oard may elect not to adopt the attached B oard Policy (B P ), which is not recommended. W hile there
is an A P in place, there is currently no B P over the D eferred C ompensation P lan. C onsequently, this may
result in staf f ref erring back to a 1982 position paper that was approved by the B oard via minute motion.
T his position paper contains outdated language, and also deviates from C entral San's modern protocol f or
governance and administration using the B P and A P f ormat.
F I NANC IAL I M PAC T S
T here are no financial impacts to the D istrict associated with the adoption of the attached B oard Policy.
C O M M I T T E E RE C O M M E ND AT IO N
T he Administration Committee reviewed the proposed policy at it meeting on May 4, 2021 and
recommended _____.
RE C O M M E ND E D B O ARD AC T I O N
Adopt B oard Policy B P 047 - Deferred Compensation Plan.
Strategic Plan Tie-I n
G O A L TH R EE: Fiscal R esponsibility
Strategy 2 – Ensure integrity and transparency in financial management
G O A L FO U R : Workforce Development
Strategy 3 – I nspire employee engagement
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AT TAC HM E NT S :
D escription
1. P roposed B P 047-D eferred C ompensation P lan
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Number: BP 047
Authority: Board of Directors
Effective: x/xx/2021
Revised: n/a
Reviewed: n/a
Initiating Dept/Div: Administration/Finance
BOARD POLICY
DEFERRED COMPENSATION PLAN
PURPOSE
Central Contra Costa Sanitary District’s (Central San’s) Deferred Compensation Plan (the Plan)
provides a valued employee benefit for its employees and the accumulated fund balance
represents a significant monetary value. Accordingly, this policy shall clarify the role, authority,
and responsibility of the Board of Directors (Board), the Deferred Compensation Plan Advisory
Committee (Advisory Committee) and the General Manager in overseeing and administering the
Plan.
SCOPE
This policy shall apply to the 457(b) deferred compensation, the 401(a) money purchase, and the
401(h) retiree health accounts plans, which collectively comprise Central San’s Deferred
Compensation Plan (the Plan).
BACKGROUND
Central San established the Plan in 1976 after voluntarily withdrawing from participation in the
Federal Social Security System. The Plan is administered by the District which has the sole
authority to enforce the Plan and is responsible for the operation of the Plan in accordance with
its terms. In 1982 the Board established a Deferred Compensation Plan Advisory Committee (the
Advisory Committee) to oversee the Plan and facilitate internal administrative matters.
POLICY
I. Role of the Board of Directors
As the governing body of Central San, the Board has the sole authority to adopt Plan
documents and execute an agreement(s) with third-party administrators (TPA) to administer
employee retirement benefits covered under the Plan. The Board shall receive an Annual
Report from the Advisory Committee highlighting plan performance and other relevant
matters demonstrating fiduciary oversight over the Plan.
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II. Role of the General Manager
As the chief executive officer, the General Manager has the administrative authority and
responsibility for the operation of Central San and enforcement of its rules and regulations.
This includes the development and execution of Administrative Procedures, as needed,
which provide direction to staff on internal protocols and expectations. While the Advisory
Committee is charged by the Board with developing, abiding by, and periodically re-
evaluating administrative procedures for the Deferred Compensation Plan and the Advisory
Committee itself, this document must be authorized by the General Manager prior to taking
effect.
III. Role of the Advisory Committee
The Advisory Committee, comprised of Plan participants,
1. Internal Administration of the Plan
The Committee shall be responsible for developing and maintaining administrative
procedures within the provisions of the Plan agreement with the selected third-party
administrator (TPA). The administrative procedures will outline protocols for the facilitation
of routine business and further clarify the roles and responsibilities of the Advisory
Committee, Plan Administrator, staff, and the TPA. Central San’s Finance Manager shall
act as the Plan Administrator, managing the day-to-day affairs of the Plan. The
Administrative Procedures and any subsequent revisions thereto must be authorized by
the General Manager.
2. Participant Education
The Advisory Committee shall develop information summarizing the Plan to be made
available to all employees. Information contained in this plan summary shall be
periodically reviewed by the Advisory Committee for accuracy and relevance. Beyond
overseeing the dissemination and availability plan summary information, the Advisory
Committee shall periodically review and assess educational and outreach efforts to ensure
employees are adequately informed of Plan benefits, provisions, changes, and other
significant matters.
3. Fiduciary Oversight
The Advisory Committee shall act in a fiduciary oversight capacity over the Plan
overseeing the activities of the TPA and working to obtain appropriate value for Plan
participants that is consistent with other governmental deferred compensation plans of like
size.
4. Emergency Withdrawals
Requests for unforeseen emergency withdrawals of funds from the Plan must be reviewed
by the Advisory Committee. Any such withdrawals must be authorized by the Advisory
Committee in advance.
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5. Investment Performance
The Advisory Committee shall monitor and assess the quarterly, annual, and inception-to-
date investment performance of the Plan and select and revise the investment design
features of the Plan as necessary. Design features may include the number of and types
of investment alternatives available to Plan participants.
6. Annual Report
The Advisory Committee will submit an Annual Report to the Board of Directors which will
summarize the Plan’s investment performance, education and outreach efforts, and
performance of the TPA. The report will also describe activities of the Advisory Committee
and, if applicable, provide recommendations for change to the Plan document.
BACKGROUND
This Board Policy shall be reviewed at least every two years and revised as needed to ensure it
accurately reflect changes in District operations, laws/regulations, personnel, and objectives.
Consistent with all Board Policies, any changes must be authorized by the Board.
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