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HomeMy WebLinkAbout05.a. Conduct a review of the following Board Policies: BP 003, BP 013, BP 021, BP 029, BP 035, BP 036, BP 044Page 1 of 30 Item 5.a. F__1_448�411C_S0 November 2, 2021 TO: ADMINISTRATION COMMITTEE FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT REVIEWED BY: KENTON L. ALM, DISTRICT COUNSEL ROGER S. BAILEY, GENERAL MANAGER SUBJECT: (AMENDED) CONDUCT REVIEW OF THE FOLLOWING BOARD POLICIES: • BP 003 - HIRING OF DISTRICT RETIREES • BP 013 - BOARD COMMITTEES • BP 021 - SOCIAL MEDIA COMMUNICATION • BP 029 - DEBT MANAGEMENTAND CONTINUING DISCLOSURE • BP 035 - PURCHASING • BP 036 - INFORMAL BIDDING • BP 044 - BOARD LEADERSHIPAND COMMUNITY REPRESENTATION The following Board Policies (BP) are being presented to the Committee for biennial review: BP 003, BP 021, B P 029, B P 035 and B P 036, as described above. At the October 5, 2021 Administration Committee meeting, a review of the process and procedures related to Board Member representation appointments in BP 013 - Board Committees and BP 044 - Board Leadership and Community Representation was requested in order to ensure the process is thoroughly defined in the two policies, which are also attached. Staff has no recommended changes to these existing policies. If the Committee concurs, the policies will remain as -is and will be reviewed again in two years. However, if the Committee recommends changes, the policy will be brought to the full Board for consideration of any proposed revisions. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1— Deliver high -quality customer service, Strategy 2 — Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 72 of 106 (Amended) Page 2 of 30 GOAL THREE: Fiscal Responsibility Strategy 2 — Ensure integrity and transparency in financial management GOAL FOUR: Workforce Development Strategy 1— Proactively plan for future operational staffing needs, Strategy 3 — Inspire employee engagement ATTACHMENTS: 1. BP 003 - Hiring of District Retirees 2. BP 013 - Board Committees 3. BP 021 - Social Media Communications 4. BP 029 - Debt Management and Continuing Disclosure 5. BP 035 - Purchasing 6. BP 036 - Informal Bidding 7. BP 044 - Board Leadership and Community Representation November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 73 of 106 (Amended) Page 3 of 30 Number: BP 003 Authority: Board of Directors, CCCERA Effective: May 18, 2006 Revised: 9/3/15, 11/7/19 Reviewed: 08/21/17, 10/15/19 Initiating Dept./Div.: Human Resources BOARD POLICY HIRING OF DISTRICT RETIREES PURPOSE To establish a policy for the hiring of District retirees. POLICY S The District occasionally may have the need to hire a retired employee for business reasons. The District may hire, without reinstatement to the retirement system, a former District employee if the retiree is needed due to an emergency situation that has the potential to halt critical public services or if they possess a skill set needed to perform specialized work of a limited duration. The intent of the District in hiring any District retiree is to address a short-term need. The Contra Costa County Employees' Retirement Association (CCCERA) and Section 7522.56 of the California Government Code dictate many of the rules governing the hiring of District retirees. The District may hire District retirees subject to the following conditions: The retiree cannot work more than 960 hours per fiscal year. The 960-hour limit is inclusive for any service(s) performed by the retiree for any employer that is governed by the County Employees' Retirement Law (CERL). The retiree's hourly rate of pay cannot be less than the minimum or exceed the maximum of the published salary range for the job classification for which they are hired. The retiree will receive no service credit or retirement rights for the temporary assignment. If the retiree received any unemployment insurance compensation in the 12 months preceding the appointment, he or she is ineligible to be reemployed by the District. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 74 of 106 (Amended) Page 4 of 30 Number: BP 003 HIRING OF DISTRICT RETIREES Page 2of2 The retiree must wait 180 days following the effective date of retirement in order to be reemployed at the District UNLESS the District certifies that the appointment is necessary prior to conclusion of the 180-day waiting period and the action is approved in a public meeting by the Board of Directors. If the retiree received any retirement incentive from the District, he or she is ineligible to be hired prior to the 180 days. [Original Retained by the Secretary of the District] November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 75 of 106 (Amended) Page 5 of 30 Number: BP 013 Authority: Board of Directors Adopted: March 6, 2014 Last Revised: October 21, 2021 Reviewed: April 6, 2021 Initiating Dept./Div.: Administration BOARD POLICY BOARD COMMITTEES PURPOSE To establish Board committees, adopt general committee guidelines, and adopt charters for each standing committee. POLICY In accordance with Section 2.04.020 of the District Code, when the Board considers it necessary for the efficient transaction of business, it may approve the creation of a committee for the purpose of reviewing, investigating and recommending with reference to a particular matter. This may include standing committees and ad hoc committees. Standing Committees The Board has determined that Central San's current Standing Committees are as follows: Administration Finance Engineering & Operations Real Estate, Environmental & Planning These Standing Committees shall operate within the General Committee Guidelines set forth below, which define the role of and provide a framework within which Committee Members and staff must operate. Each Standing Committee shall operate under a Charter approved by the Board as part of this Policy. The Charters set forth below define the mission, policy areas, and scope of each Committee with an emphasis on policy rather than operational matters. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 76 of 106 (Amended) Page 6 of 30 Number: BP 013 BOARD COMMITTEES Page 2of8 2. Ad Hoc Committees Where expediency is required, the Board President shall recommend and the Board has the authority to appoint an Ad Hoc Committee. GENERAL COMMITTEE GUIDELINES Members Each Standing Committee and Ad Hoc Committee shall be comprised of two Board Members, including a Chair. Members of Standing Committees are appointed annually by the Board President and approved by the Board. 2. Role The role of the Committees is advisory to the Board. They may make recommendations to the full Board but cannot direct staff outside of their respective policy areas or expend public resources. 3. Agendas The General Manager and staff generate the agendas. The General Manager will determine to which Committee items are assigned as they arise. In cases where certain topics may span two Committees, he/she may confer with the Board President for guidance. 4. Staff Recommendations Staff will specify on Committee agendas what is needed from the Committee for each agenda item (e.g. Committee recommendation for Board approval; receive the report/update, provide input to staff, etc.). 5. Committee Action For those items for which a Committee recommendation to the Board is requested, staff will proceed as follows, depending on the Committee vote: a. Committee recommendation of Board approval: • Routine items will generally be put on the Board Consent Calendar. • Non -routine items will be agendized for a presentation and Board discussion. b. Split Committee vote: The item will proceed to the full Board (not on Consent Calendar), and the reason for the split vote will be reflected in both the Committee minutes and the position paper. For purposes of efficiency within the November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 77 of 106 (Amended) Page 7 of 30 Number: BP 013 BOARD COMMITTEES Page 3 of 8 Committee process, should the two Committee Members find themselves at early impasse regarding their position on any committee matter, it is the policy of this Board to bring that matter to the full Board as early in the process as possible. C. Committee votes against approval: The item will generally proceed to the full Board (not on Consent Calendar), and the Committee's position will be reflected in both the Committee minutes and the Position Paper. 6. Committee Requests for Information When a Committee Member requests information, the Committee must vote on whether to proceed with the request. If the request does not receive Committee approval, staff generally will not proceed with the request. 7. Staff Responses to Committee Requests for Information If the response is in writing, it will generally be made part of the next Committee packet. If the response is provided by staff verbally or via email to Committee Members outside of a convened meeting, staff will provide that information at the next Committee meeting. 8. Informational Reports The General Manager will determine which informational reports (e.g. NPDES annual report, HHW annual report, Sanitary Sewer Overflow annual report, mentorship presentations, etc.) that do not require Committee recommendation or input will go directly to the Board, and which will be scheduled for Committee review first. 9. Standing Items The use of standing items on Committee agendas is generally discouraged due to potential Brown Act issues. 10. Scheduling, Rescheduling and Cancelling Committee Meetings Committee meetings may be scheduled, rescheduled or cancelled at the request of a Committee Member or staff. The Committee Chair will be consulted prior to the cancellation of any Committee meeting. 11. Appointment of Alternates Use of alternates for Committee meetings is generally discouraged due to potential Brown Act issues; however, when necessary, the Board President may appoint an alternate based on Board Member availability. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 78 of 106 (Amended) Page 8 of 30 Number: BP 013 BOARD COMMITTEES Page 4 of 8 12. Review of Internal Audit Reports Individual Internal Audit Reports will be initially reviewed by the Committee having the most relevant jurisdiction over the subject matter of the audit, as determined by the General Manager. However, all Internal Audit reports, after review by the relevant committee, will be provided to the full Board. The Internal Audit work plan adoption, and any intra-year changes to that plan, will not be reviewed by a Committee as those matters shall be directly reviewed and adopted by the full Board. 13. Compensation/Meeting Stipend Board Members attending Standing Committee meetings and Ad Hoc Committee meetings shall be eligible to receive the meeting stipend in accordance with District Code Section 2.04.030 and Board Policy No. BP 045 — Board Compensation, Benefits, and Expense Reimbursement. Committee Charters appear on the following pages. [Original Retained by the Secretary of the District] November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 79 of 106 (Amended) Page 9 of 30 Number: BP 013 BOARD COMMITTEES Page 5 of 8 CHARTER ADMINISTRATION COMMITTEE Members Chair, Member Meeting Schedule Monthly, or as needed (subject to rescheduling or cancellation) Mission Provide input and recommendations to the Board regarding the Policy Areas listed below that support the District's Mission, Vision and Values and Strategic Plan. Policy Areas Policy development and review • Strategic Plan • Safety and security matters • Public outreach • Human Resources • Information Technology • Legislative matters as may be requested by Board Scope Review and address staff recommendations. May direct the General Manager to conduct additional research within the Committee's Policy Areas. The Committee is tasked to: • Develop new, or review and revise existing, District policies for Board consideration • Review and monitor compliance with Strategic Plan • Review and make recommendations on policy -related safety and security matters • Ensure adequate public outreach of policy -related District services and programs (outreach for specific programs may be referred to the appropriate Committee by the General Manager) • Review and make recommendations on relevant Human Resources matters • Review Information Technology policy matters • Review specific legislation if requested to do so by the Board Revised by Board 3/6/14, 4/26/15, 2/18/16, 7/6/17, 4/26/18, 8/6/20 November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 80 of 106 (Amended) Page 10 of 30 Number: BP 013 BOARD COMMITTEES Page 6of8 CHARTER ENGINEERING & OPERATIONS COMMITTEE Members Chair, Member Meeting Schedule Monthly, or as needed (subject to rescheduling or cancellation) Mission Provide input and recommendations to the Board regarding the Policy Areas listed below that support the District's Mission, Vision and Values and Strategic Plan. Policy Areas • Reliable infrastructure • Bidding for construction contracts • Consultant selection process for capital improvement program • Capital Improvement Budget (CIB) • Ten -Year Capital Improvement Plan (CIP) • Operational effectiveness Scope Review and address staff recommendations. May direct the General Manager to conduct additional research within the Committee's Policy Areas. The Committee is tasked to: • Review the CIB for planning, design and construction of projects, including funding • Review construction project awards • Review the CIP for future projects, regulatory compliance, and long- range financial planning • Review Engineering, Plant Operations, Maintenance and Collection Systems and Recycled Water as determined by the General Manager • Review Asset Management Program • Ensure adequate public outreach of certain program -related matters within the scope of the Committee, as referred by the General Manager • Review energy contracts required for operations Revised by Board 3/6/14, 7/23/15, 2/18/16, 7/6/17, 4/6/18, 8/6/20 November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 81 of 106 (Amended) Page 11 of 30 Number: BP 013 BOARD COMMITTEES Page 7 of 8 CHARTER FINANCE COMMITTEE Members Chair, Member Meeting Schedule Monthly, or as needed (subject to rescheduling or cancellation) Mission Provide input and recommendations to the Board regarding the Policy Areas listed below that support the District's Mission, Vision and Values and Strategic Plan. Policy Areas • Fiscal sustainability • Fiscal regulatory compliance • Appropriate levels of internal controls • Investment reserves • Financial reporting and budget documents • Risk Management Scope Review and address staff recommendations. May direct the General Manager to conduct additional research within the Committee's Policy Areas. The Committee is tasked to: • Oversee proper use of financial resources • Ensure regulatory compliance with federal, state and public financing requirements • Review financial reports for completeness, accuracy and clarity • Review development, implementation and oversight of investment policies and practices • Provide recommendations related to the annual budget, its implementation and future projections • Review expenditures (to the extent possible, Committee Members are encouraged to provide their questions on expenditures in advance of the meeting) • Ensure adequate public outreach of certain program -related matters within the scope of the Committee, as referred by the General Manager • Oversee Risk Management and associated legal matters Revised by Board 3/6/14, 7/23/1515, 2/18/16, 7/6/17, 4/26/18, 8/6/20, 10/21/21 November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 82 of 106 (Amended) Page 12 of 30 Number: BP 013 BOARD COMMITTEES Page 8of8 CHARTER REAL ESTATE, ENVIRONMENTAL & PLANNING COMMITTEE Members Chair, Member Meeting Schedule Monthly, or as needed (subject to cancellation or rescheduling) Mission Provide input and recommendations to the Board regarding the Policy Areas listed below that support the District's Mission, Vision and Values and Strategic Plan. Policy Areas Long-range planning • Environmental regulatory compliance • Cost-effective resource recovery and recycling • Use of District real property and facilities Scope Review and address staff recommendations. May direct the General Manager to conduct additional research on policy issues within the Committee's Policy Areas. The Committee is tasked to: • Review long-range planning documents including master plans • Oversee the District's environmental regulatory compliance • Oversee resource recovery programs and recycling • Oversee appropriate use of real property and facilities in accordance with District policies • Review year-end annual reports for Household Hazardous Waste, Pollution Prevention, and Recycled Water, as necessary • Ensure adequate public outreach of certain program -related matters within the scope of the Committee, as referred by the General Manager Revised by Board 3/6/14, 7/23/15, 2/18/16, 7/6/17, 4/26/18, 8/6/20 November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 83 of 106 (Amended) Page 13 of 30 Number: BP 021 Related Admin. Procedure AP 021 Authority: Board of Directors Effective: October 1, 2015 Revised: N/A Reviewed: 10/16/17, 10/15/19 Initiating Dept./Div.: Administration/Communications BOARD POLICY SOCIAL MEDIA COMMUNICATION PURPOSE S To establish a policy on the use of social media as a District communication tool. POLICY The Board of Directors supports the use of social media as one of many tools to further enhance communication between the District and its customers. [Original Retained by the Secretary of the District] November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 84 of 106 (Amended) Page 14 of 30 Number: BP 029 Related Admin. Procedure AP 029 Authority: Board of Directors Effective: September 7, 2017 Revised: April 16, 2020 Reviewed: October 15, 2019 Initiating Dept./Div.: Administration/Finance BOARD POLICY DEBT MANAGEMENT AND CONTINUING DISCLOSURE PURPOSE The Government Finance Officers Association (GFOA) recommends' as a best management practice that state and local governments adopt comprehensive written debt management policies to improve the quality of decisions, articulate policy goals, provide guidelines for the structure of debt issuance, and demonstrate a commitment to long-term capital financial planning. Additionally, California SB 1029 requires public agency issuers of debt to adopt comprehensive written debt management policies pursuant to the GFOA recommendation, and to provide reports on any issuance prior to and after the debt sale, and on an ongoing basis, to the California Debt and Investment Advisory Commission (CDIAC).2 The purpose of this Debt Management and Continuing Disclosure Policy (Debt Policy) is to organize and formalize debt issuance and management related policies and procedures for the Central Contra Costa Sanitary District. This Debt Policy is applicable to both the District and the Central Contra Costa Sanitary District Facilities Financing Authority, both hereinafter referred to as "the District". This Debt Policy is intended to comply with Government Code Section 8855(i). General Manager maintained procedures amplify and provide additional guidance to staff related to the Debt Policy. The debt policies and procedures of the District are subject to and limited by applicable provisions of State and Federal law. 11 1 In their publication "Best Practice Debt Management Policy' 2 https://Ieginfo.legislature.ca.gov/faces/bi11NavClient.xhtmI?bill_id=201520160SB1029 November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 85 of 106 (Amended) Page 15 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 2of9 II. POLICY OBJECTIVES The primary objectives of the District's debt and financing related activities are the following: • Maintain cost-effective access to the capital markets through prudent fiscal management policies and practices; • Specify parameters related to the prudent use of debt in the context of The District's rates and financial planning; 0 Ensure debt proceeds are expenditures for permissible uses as defined in this policy, and in accordance with bond covenants and other applicable requirements; • Minimize debt service commitments through effective planning and cash management; • Ensure the District is compliant with all applicable federal and state securities laws; • Protect the District's creditworthiness and achieve the highest practical credit ratings; and • Maintain the District's sound financial position. III. SCOPE AND DELEGATION OF AUTHORITY This Debt Policy will govern the issuance and management of all debt funded through the capital markets, including the selection and management of related financial and advisory services and products, and the investment of bond proceeds. Overall policy direction of this Debt Policy will be provided by the District's Board of Directors (Board). Responsibility for implementation of the Debt Policy and day-to-day responsibility for structuring, implementing, and managing the District's debt and finance program will lie with the General Manager or their designee (Director of Finance and Administration). The Board's adoption of the District's Annual Budget and Capital Improvement Program (CIP), or review of the financial plan, does not constitute authorization for debt issuance for any capital projects. This Debt Policy requires that the Board specifically authorize each debt financing. While adherence to this Debt Policy is required in applicable circumstances, the Board recognizes that changes in the capital markets, District programs, and other unforeseen circumstances may from time to time produce situations that are not covered by the Debt Policy and will require modifications or exceptions to achieve policy goals. In these cases, management flexibility is appropriate, provided specific authorization from the Board is obtained. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 86 of 106 (Amended) Page 16 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 3 of 9 IV. ROLES AND RESPONSIBILITIES • General Manager and/or Deputy General Manager — Provides oversight of debt program and recommendations on debt to the Board. • Executive Director of the Central Contra Costa Sanitary District Facilities Financing Authority — Provides oversight of debt program and recommendations on debt to the Board. • Director of Finance and Administration — Has primary responsibility for debt issuance recommendations, financing transaction execution, oversight of bond proceeds expenditures, and ongoing debt management. • Board of Directors — Sets debt policy and authorizes individual transactions. V. ETHICS AND CONFLICTS OF INTEREST Staff and Board involved in the debt management program will not engage in any personal business activities that could conflict with proper and lawful execution of securing capital financing and are to comply with the District's Conflict of Interest Code. VI. INTEGRATION WITH OTHER FINANCIAL POLICIES AND DOCUMENTS The District is committed to long-term capital and financial planning, maintaining appropriate reserve levels and employing prudent practices in governance, management and budget administration. Policies related to these topics are adopted separately but affect this Debt Policy in the context of the overall long-term financial plan. The Board shall be presented with the results of the long-term financial plan in contemplation of any proposed rate adjustment where the capital budget, financial policies, proposed debt issuances and resulting debt service are presented as elements contributing to the calculation of overall projected customer rates. VII. STANDARDS FOR USE OF DEBT FINANCING In financial planning, the District will evaluate the use of various alternatives including current year funding of capital projects through rates, various forms of debt financing, use of reserves, and inter -fund borrowing. The District will utilize the most advantageous financing alternative balancing the goals of long-term cost minimization, risk exposure, and compliance with generally accepted ratemaking principles. The District's debt management program will consider debt issuance where public policy, equity (including intergenerational equity), general ratemaking principles, economic efficiency and compliance with long-term financial planning parameters favor financing over cash funding. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 87 of 106 (Amended) Page 17 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 4 of 9 A. Use and Timina of Debt The District shall integrate its debt issuances with the goals of its Capital Improvement Program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the District's public purposes (as articulated in, inter alia, the District's mission, vision, and goals) and are consistent with the rate and financial planning parameters specified in the District's long-term financial plans. The Board shall be presented with a long-term financial plan in each instance Sewer Service Charge rates are to be adjusted. 1. The long-term financial plans will specify an expected debt issuance amount over a decade or more long-term planning horizon. a. The District shall target rate or tax revenue funding of, at a minimum, the value of the collection system replacement program (specifically, pipeline replacement) component of the CIP. b. Not more than 60% of the overall CIP shall be financed with debt. 2. All projects in the CIP are eligible to use debt financing, so long as the minimum rate or tax revenues are generated as described in A.1 of this section. This policy does not contemplate the use of debt financing to fund ongoing operating & maintenance expenditures; exceptions beyond a de-minimis amount would require approval of the Board. With respect to debt repayment and amortization, the debt repayment period should be structured so that the weighted average maturity of the debt does not exceed 100% of the expected average useful life of the project being financed. B. Credit Quality All District debt management activities for new debt issuances will be conducted in a manner conducive to receiving the highest credit ratings possible consistent with the District's debt management objectives. As debt service coverage is a key ratings consideration, the District shall target a debt service coverage level of at least 2.Ox or greater for financial planning and ratemaking purposes. C. Ongoing Debt Administration and Internal Controls The District will maintain all debt -related records according to the District's Retention Policy. The District will maintain internal controls to ensure compliance with the Debt Policy (including use of bond proceeds for purposes specified in the applicable Bond Official Statements and in compliance with this debt policy), all debt covenants and any applicable requirements of Federal and State law, including but not limited to the following: initial bond disclosure, continuing disclosure, tax -exemption, post -issuance compliance, investment of bond proceeds (including, for example, any continuing disclosure obligations under Securities and November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 88 of 106 (Amended) Page 18 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 5 of 9 Exchange Commission (SEC) Rule 15c2-12, and tax covenants, and related federal tax compliance requirements such as arbitrage restrictions and rebate requirements), and annual transparency reporting to CDIAC. These internal controls are further specified in the related Debt Management and Continuing Disclosure (AP 029). D. Rebate Policy and System The District will develop a system of reporting interest earnings that relates to and complies with Internal Revenue Code requirements relating to rebate, yield limits and arbitrage. The District will accurately account for all interest earnings in debt -related funds to ensure that the District is compliant with all debt covenants and with state and federal laws. The District will invest funds in accordance with the investment parameters set forth in each respective bond indenture, and as permitted by the District's Statement of Investment Policy (BP 005). VIII. FINANCING CRITERIA When District staff determines the use of debt is appropriate, staff shall provide a report to the Board that: describes the intended use of the financing proceeds (funding for new projects or to refund existing bonds); recommends a specific debt type to include duration, type, interest rate characteristics, call features, credit enhancement or financial derivatives to be used in the transaction; presents the impact of the bonds on the District's forecasted rates based on the anticipated maturity schedule. For refunding transactions, a comprehensive report on the debt to be redeemed, the replacement debt, and the anticipated benefits of the transaction shall be provided. IX. TERMS AND CONDITIONS OF DEBT The District will establish all terms and conditions relating to the issuance of debt, and will control, manage, and invest all debt proceeds. The District staff will specify to the Board proposed debt terms, coupon structure, debt service structure, redemption features, any use of capitalized interest, and lien structure. X. TYPES OF DEBT The following types of debt are allowable under this Debt Policy, subject to applicable law, and the District's statutory authority to issue debt: • General obligation bonds • Commercial paper November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 89 of 106 (Amended) Page 19 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 6of9 • Bond or grant anticipation notes • Lease revenue bonds, certificates of participation and lease -purchase transactions • Other revenue bonds, including private placement obligations • Tax and revenue anticipation notes • Land -secured financings, such as special tax revenue bonds issued under the Mello -Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes • Refunding Obligations • State Revolving Fund Loans • Lines of Credit • Letters of Credit • The Board may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy. The use of certain derivative products to hedge variable rate debt, such as interest rates swaps, may be considered to the extent the District has such debt outstanding or under consideration. The District shall exercise extreme caution in the use of derivative instruments for hedging purposes, and may consider their utilization only when sufficient understanding of the products and sufficient expertise for their appropriate use has been developed. A comprehensive derivative policy shall be adopted by the District prior to any utilization of such instruments. XI. CREDIT ENHANCEMENTS The District may consider the use of credit enhancement on a case -by -case basis, evaluating the economic benefit versus cost for each case. Only when a clearly demonstrable savings or other measurable advantages can be shown will enhancement be considered and authorized. XII. REFINANCING OUTSTANDING DEBT The District will periodically evaluate outstanding bond issues for refunding opportunities and will bring to the attention of the Board those opportunities that are in the District's interest. Reports to the Board on potential refunding shall describe anticipated savings and the structure of refunding and refunded debt, and any refunding transaction executed will be followed with a report on actual savings. XIII. METHODS OF ISSUANCE District bonds may be sold on a competitive or negotiated basis (including private placement). A recommendation regarding the proposed use of either method shall be November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 90 of 106 (Amended) Page 20 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 7 of 9 prepared by staff and provided to the Board prior to or concurrent with the proposed issuance. XIV. MARKET RELATIONSHIPS A. Ratina Aaencies and Investors The General Manager and designees (Deputy General Manager and Director of Finance and Administration) will be responsible for maintaining the District's relationships with rating agencies, which will typically include two or more of the nationally recognized statistical rating agencies. B. Board Communication The General Manager will make available to the Board any ratings report or other relevant feedback provided from rating agencies and/or investors regarding the District's financial strengths and weaknesses and recommendations for addressing any weaknesses. C. Continuing Disclosure The District will remain in compliance with SEC Rule 15c2-12 addressing continuing disclosure obligations. The District will also comply with state reporting requirements specified in SB 1029, which require initial and ongoing debt reporting requirements for California public agencies. D. Rebate Reporting The use and investment of bond proceeds shall be monitored to ensure compliance with arbitrage restrictions. E. Other Jurisdictions From time to time, the District may issue bonds to fund projects that provide a benefit to other public entities, (e.g. City of Concord). The District will conduct such analyses as deemed necessary to assure adequate cost recovery for such funding and to mitigate risks to the District (including consideration of the use of limited bonding capacity). The District may participate in a joint powers authority with one or more other eligible entities pursuant to Section 6500 of the California Government Code if deemed advantageous and appropriate and approved by the Board. XV. CONSULTANTS A. Selection of Financina Team Members The General Manager or designee will make recommendations for all financing team members, with the Board providing final approval. Financing team members may include a financial advisor, bond counsel, disclosure counsel (which may be the same firm as bond counsel), and November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 91 of 106 (Amended) Page 21 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 8 of 9 underwriter. Selection of those financing team members shall be in accordance with Professional Service and Consultant provisions of the District's procurement policies, and consistent with Chapter 2.36 "Purchasing and Materials Policy" of the District Code. In the event of a competitive bond sale, the District's debt will be offered to the underwriter providing the most cost advantageous proposal to the District. B. Financial Advisor The District may utilize a financial advisor to assist in its debt issuance and debt administration processes as is deemed prudent and necessary by management and in compliance with Municipal Securities Rulemaking Board (MSRB) regulations. C. Bond Counsel District debt will include a written opinion by legal counsel affirming that the District is authorized to issue the proposed debt and that the District has met all constitutional and statutory requirements necessary for issuance and a determination of the proposed debt's federal income tax status. The approving opinion and other documents relating to the issuance of debt will be prepared by counsel with extensive experience in public finance and tax issues. D. Disclosure Counsel The District may utilize a separate firm to serve as disclosure counsel as it deems necessary. If cost effective, bond counsel may also serve as disclosure counsel. E. Underwriter The District will have the right to select a senior manager for a proposed negotiated sale, as well as co -managers and selling group members, as appropriate. F. Conflict of Interest Disclosure by Financina Team Members All financing team members will be required to provide full and complete disclosure, relative to agreements with other financing team members and outside parties. The extent of disclosure may vary depending on the nature of the transaction. However, in general terms, no agreements will be permitted which could compromise the firm's ability to provide independent advice that is solely in the District's interests (to the extent the firm's role involves a duty to do so) or which could reasonably be perceived as a conflict of interest. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 92 of 106 (Amended) Page 22 of 30 Number: BP 029 DEBT MANAGEMENT AND CONTINUING DISCLOSURE Page 9 of 9 XVI. INITIAL AND CONTINUING DISCLOSURE COMPLIANCE A. Disclosure Coordinator and Overall Requirements for Initial and Continuing Disclosure The Director of Finance and Administration (or as designated, the Finance Manager) for the District shall be the disclosure coordinator of the District (Disclosure Coordinator). The Disclosure Coordinator shall perform the following functions: • Ensure that any Official Statement meets appropriate standards and is approved by the Board as required. • Ensure that initial and continuing disclosure obligations undertaken by the District related to each debt issuance are met, including State of California requirements, and MSRB requirements that the District commits to undertake in the Continuing Disclosure Certificate or Agreement over the life of the bonds to investors. o Initial Disclosure requirements include preparation of the Bond Official statement and reports on the issuance to the CDIAC. o Ongoing disclosure requirements include annual reports with the MSRB Electronic Municipal Market Access (EMMA) system and the CDIAC. XVII. EXCEPTIONS In the event there are any deviations or exceptions from the Debt Policy when a certain bond issue is structured, those exceptions will be discussed in the staff reports when the bond proposal is agendized for Board consideration. XVIII. POLICY CONSIDERATION This policy shall be reviewed on a biennial basis. Any changes must be approved by the Board, as well as the individual(s) charged with maintaining internal controls. [Original retained by the Secretary of the District] November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 93 of 106 (Amended) Page 23 of 30 Number: BP 035 Related Admin. Procedure: Pending Authority: Board of Directors Adopted: August 16, 2018 Revised: 11 /07/19 Reviewed: Initiating Dept./Div.: Administration / Purchasing & Materials Services BOARD POLICY PURCHASING PURPOSE S� To receive the best value for materials, supplies, equipment, services and public works projects, and to promote free and open competition through a fair and equitable selection process that complies with applicable federal, state and local laws and regulations. POLICY Comply with applicable federal, state and local procurement laws and regulations; 2. Provide a fair and equitable bidding environment that fosters competition from responsive and responsible prospective contractors and vendors; 3. Be transparent; 4. Provide a timely, effective and consistent method of procurement of goods and services; 5. Provide best overall value for the supply of goods and services to support the needs of District departments and divisions; 6. Follow good business practices and adhere to all District policies and procedures; 7. Perform purchasing activities with the highest ethical standards; 8. Support the purchase of environmentally sustainable products and services that minimize environmental impacts to the extent practicable and cost effective; 9. Manage inventory in a fiscally responsible manner; and 10. Dispose of surplus, damaged, scrap, excess and obsolete material, equipment and supplies efficiently and economically. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 94 of 106 (Amended) Page 24 of 30 Number: BP 035 PURCHASING Page 2of3 PURCHASING AUTHORITY The Purchasing and Materials Services Division is the centralized procurement authority to contract for goods and services on behalf of the District in accordance with Chapter 2.36, Section 2.36.010 of the Central Contra Costa Sanitary District Code. Refer to Board Policy No. BP 037 — Delegation of Authority to General Manager for specific authority limits regarding contracts for goods and services. SOLICITATION REQUIREMENTS The minimum solicitation requirements for procurement of goods and services and professional consulting services are set forth in Exhibit A. RESPONSIBILITIES The General Manager and Purchasing and Materials Services Manager are authorized to establish and implement procedures to support this Policy. [Original retained by the Secretary of the District] November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 95 of 106 (Amended) Page 25 of 30 Number: BP 035 PURCHASING Page 3 of 3 EXHIBIT A Minimum Solicitation Requirements PROCUREMENT CATEGORY Goods Professional Value' and Services Consulting Services Competitive Quotes <_ $5,000 Not Required (best judgment purchase) > $5,000 and <_ $15,000 Minimum of Two Quotes (as possible) Informal Selection > $15,000 Minimum of Three Quotes' < $30,000 (as possible) > $30,000 and <_ $100,000 Informal Solicitation > $100,000 Formal Request for Proposals ' The value limits are reflective of the total anticipated amount for the entire term of the contract and apply to all procurement situations noted in the table above. The value thresholds and categories are further specified in the District's Purchasing Procedures. Projects may not be split into smaller projects for the purpose of circumventing any of the limits in the table above. 2 Informal Selection: The Project Manager in charge of the project shall recommend a consultant taking into account (a) the nature of the project, (b) the geographic proximity of the consultant to the project, (c) the capability of the consultant to produce the required service within a reasonable time, (d) past performance, and (e) ability to meet project budget requirements. Appropriate internal approvals of the recommendation will be obtained prior to award. Informal Solicitation: The Project Manager shall conduct an informal solicitation of telephone and letter proposals from a limited number of firms and recommend a consultant based on their qualifications in relation to factors (a)-(e) noted above. Appropriate internal approvals of the recommendation will be obtained prior to award. ' Purchasing may utilize a more formal solicitation process when considered beneficial to the District. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 96 of 106 (Amended) Page 26 of 30 Number: BP 036 Authority: Board of Directors Adopted: August 16, 2018 Revised: 11 /07/19 Reviewed: Initiating Dept./Div.: Engineering/ Capital Projects BOARD POLICY INFORMAL BIDDING PURPOSE To establish a Central Contra Costa Sanitary District (Central San) Board Policy on informal bidding pursuant to the Uniform Public Construction Cost Accounting Act (UPCCAA) (California Public Contract Code (PCC) §§22000-22045). POLICY District Projects, as defined by PCC §20801, may be let to contract by the informal procedures as set forth in the UPCCAA. 2. The Central San Board delegates the authority to award such informal bid contracts to the General Manager or his designee. 3. UPCCAA Bidding Thresholds for District Projects a. District Projects of $60,000* or less may be performed by the employees of the District by force account, negotiated contract, purchase order, or competitive quotes in accordance with the UPCCAA. b. District Projects of greater than $60,000 and less than $200,000* may be let to contract by informal bidding procedures as set forth in the UPCCAA. 1) If a District Project was let to contract by informal bidding under the UPCCAA procedures, then Board approval is required for a change order to the public project that would cause the total cost of the project to exceed $200,000*. C. District Projects of more than $200,000* must be let to contract by the formal bidding procedures set forth in the PCC. * These limits shall be raised concurrently with changes to the UPCCAA. November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 97 of 106 (Amended) Page 27 of 30 Number: BP 036 INFORMAL BIDDING Page 2of2 4. Notice to Contractors Inviting Informal Bids a. Central San will maintain a list of qualified contractors, identified by categories of work. Contractors on the list for the category of work being solicited will be emailed a notice inviting informal bids or quotes at least 10 calendar days before bids are due. b. Alternatively, Central San may elect to email a notice inviting informal bids or quotes to the applicable construction trade journals specified in PCC §22036 or Central San's electronic bid management system (i.e. PlanetBids). C. The notice inviting informal bids must describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids. 5. Rejection of Bids a. In its discretion, Central San may reject any bids by providing written notice pursuant to the terms of PCC §22038. b. If a contract is awarded, it must be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, Central San may accept the one it chooses. C. If no bids are received through the formal or informal procedure, the project may be performed by the employees of Central San by force account or negotiated contract without further complying with the UPCCAA. 6. Prohibition on Splitting Projects to Evade Bidding Thresholds District Projects shall not be split or separated into smaller work orders or projects for the purpose of evading the provisions of the UPCCAA requiring work to be done by contract after formal or informal competitive bidding. [Original retained by the Secretary of the District] November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 98 of 106 (Amended) Page 28 of 30 Number: BP 044 Related Admin. Procedure: None Authority: Board of Directors Adopted: October 21, 2021 Last Revised: Reviewed: Initiating Dept./Div.: SOD BOARD POLICY BOARD LEADERSHIP AND COMMUNITY REPRESENTATION PI IRPO.gF The Board of Directors has deemed it necessary for the efficient operation of Central San to establish a process for annual selection of Board Members to serve as: • Board President and President Pro Tem; • Board Liaisons to Contra Costa County and the cities and towns within its service area; and • Board Representatives to various governmental bodies and joint powers authorities. POLICY 1. Rotation of Board President and President Pro Tem a. The Board has established the following rotation schedule for the positions of Board President and President Pro Tem: Year President Pro Tem 2022 Member Williams Member Hockett or Lauritzen 2023 Member Hockett or Lauritzen Member Hockett or Lauritzen 2024 Member Hockett or Lauritzen Member, Division 2 2025 Member, Division 2 Member, Division 3 2026 Member, Division 3 Member, Division 4 2027 Member, Division 4 Member, Division 5 2028 Member, Division 5 Member, Division 1 2029 Member, Division 1 Member, Division 2 2030 and beyond Rotation by division continuing the above sequence Rotation by division continuing the above sequence November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 99 of 106 (Amended) Page 29 of 30 Number: BP 044 BOARD LEADERSHIP AND COMMUNITY REPRESENTATION Page 2 of 3 2 91 b. Annual Elections. Effective January 1 each calendar year, the Board shall take action at a meeting to elect the designated President or President Pro Tern in accordance with the above rotation schedule. C. Exceptions to Rotation Schedule. The Board may, by majority vote, deviate from the above rotation schedule in any given year. Appointment of Board Liaisons a. The Board has determined that Board Members should be appointed to serve as Board Liaisons to the county, cities, and towns in Central San's service area. The Board President shall recommend, and the Board shall approve annually, Board Liaison appointments for the following: Contra Costa County Lafayette Pacheco Alamo Martinez Pleasant Hill Clayton Moraga San Ramon Concord Orinda Walnut Creek Danville b. Exceptions. In any given year, the Board may, by majority vote, deviate from the above list of Board Liaison designations. Appointment of Board Representatives a. The Board has determined that Board Members should be appointed to serve as Board Representatives to various organizations. The Board President shall recommend, and the Board shall approve annually, appointments of Board Representatives to the following organizations: 1) California Special Districts Association — Contra Costa Chapter (CCSDA) 2) Contra Costa Local Agency Formation Commission (LAFCO) 3) Contra Costa Water District (CCWD) 4) Dublin San Ramon Services District (DSRSD) 5) East Bay Municipal Utility District (EBMUD) 6) East Bay Regional Parks District (EBRPD) 7) Mt. View Sanitary District (MVSD) 8) Pleasant Hill Recreation and Park District (PHR&PD)* 9) Valley Water (formerly Santa Clara Valley Water District) 10) State Water Resources Control Board 11) Bay Area Air Quality Management District *Same as Board Liaison to Pleasant Hill November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 100 of 106 (Amended) Page 30 of 30 Number: BP 044 BOARD LEADERSHIP AND COMMUNITY REPRESENTATION Page 3 of 3 b. List of Organizations. In any given year, the above list of organizations may be expanded or contracted by the Board President in accordance with Central San's needs. C. Voting Delegates. Both the representative and any alternate Board Representative to CCSDA shall serve as voting delegate or alternate voting delegate, respectively. d. Exceptions. In any given year, the Board may, by majority vote, deviate from the above list of representative designations. 3. Alternates Where desired, the Board President may recommend alternate Board Liaisons or Board Representatives, and the Board shall approve annually such alternates to serve as backup to the appointed Board Liaison or Representative. 4. Meeting Stipend/Expense Reimbursement Board Members serving as Board Liaisons to or Board Representatives of the above entities (including appointed alternates, if any) shall be eligible to receive the meeting stipend or expense reimbursement for participating in events and activities associated with these entities in accordance with District Code Section 2.04.030 and Board Policy No. BP 045 — Board Compensation, Benefits, and Expense Reimbursement. [Original retained by the Secretary of the District] November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 101 of 106 (Amended) Page 1 of 3 Item 5.b. F__1_448�411C_S0 November 2, 2021 TO: ADMINISTRATION COMMITTEE FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT MANAGER REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW TIMELINES (GANTT CHARTS) FORACTIVITIES RELATED TO UPCOMING LABOR NEGOTIATIONS WITH THE MANAGEMENT GROUP, MANAGEMENT SUPPORT/CONFIDENTIAL GROUP, AND PUBLIC EMPLOYEES UNION, LOCAL #1 The District's agreements with three recognized bargaining units, Management Group, Management Support/Confidential Group (MS/CG), and Public Employees Union, Local #1 (Local One), will be expiring. The Management Group's current Memorandum of Understanding (MOU) expires on December 17, 2021, and Local One and MS/CG MOUs are set to expire on April 17, 2022. Pursuant to Government Code 3500-3511 and Central San's Employer -Employee Relations Ordinance (Chapter 4.24 of the District Code), the District is required to negotiate all matters related to wages, hours, and other terms and conditions of employment. Attached is the Gantt chart reflecting the current status of activities related to labor negotiations with MS/CG and Local One. A verbal update will be provided at the meeting on labor negotiations with the Management Group. The Gantt charts will continue to be updated and will be presented to the Committee each meeting as a standing item until the Board's adoption of the successor MOUs. Below is a three-month look ahead at upcoming Board tasks and decisions related to negotiations with Local One and MS/CG: • December 2, 2021 - Approve MOUs which have the new terms codified and clean-up performed. Staff will be available at the Committee meeting to answer questions and provide a verbal update on negotiations with the Management Group. November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 102 of 106 (Amended) Page 2 of 3 Stratedc Plan Tie -In GOAL FOUR: Workforce Development Strategy 2 — Foster relationships across all levels of Central San ATTACHMENTS: 1. Timeline for Labor Negotiations with Local One and MS/CG November 2, 2021 Regular ADMIN Committee Meeting Agenda Packet - Page 103 of 106 (Amended) Local One and MSCG - Labor Negotiations 2021 Gantt Char[ ATTACHMENT 2 In Task Name OurMion Start nish ee br20� feb a �l n �l u e b 2 x berg 22 z z 221251281 4, 1 Board conducts a closed session meeting to recap 1 day Thu 1/7/21 Thu 1/7/21 "' 100% previous round of negotiations in 2017 2 Schedule one-on-one meetings between the Board 16 days Fri 1/8/21 Fri 1/29/21 100% Members and the bargaining unit representatives 3 Determine if negotiator is internal or external 1 day Thu 2/4/21 Thu 2/4/21 100% 4 If external, issue Request for Proposal (RFP) for a 19 days Fri 2/5/21 Wed 3/3/21 100% negotiator Board interviews and selects a negotiator 56 days Thu 2/18/21 Thu 5/6/21 100% 5 6 Conduct Total Compensation Survey 64 days Man 1/4/21 Thu 4/1/21 7 Procure Classification and Compensation (C&CI 6 days Mon 1/4/21 Mon 1/11/21 consultant 8 Conduct closed session with Board and C&C 1 day Rhu 1/21/21 Thu 1/21/21 100% consultant to establish scope and methodology related to total compensation survey which includes determining the comparable labor market, elements of compensation, and job classifications to be surveyed Present draft benchmarks of total compensation 9 days Fri 1/22/21 Wed 2/3/21 100% 9 survey to bargaining units for discussion and review Present bangs ining unit comments related to draft Iday Thu 2/4/21 Thu 2/4/21 100% 10 benchmarks to Board Finalize draft benchmarks and present to 1 day Fri 2/5/21 Fri 2/5/21 100% 11 bargainingun its Consultant completes draft total compensation 24 days Mon 2/8/21 Thu 3/11/21 12 study Present draft total compensation studyto Board I day Thu 3/18/21 Thu 3/18/21 10096 13 and discuss Present tota l compensation study to bargaining 1O days Fri 3/19/21 Thu 4/1/21 14 units and discuss Present bargaining unit feedback on and further 48 days Tue 4/13/21 Thu 6/17/21 100% 15 discussion on draft total compensation studyto Board Board conducts a closed session meeting with District 58 days Yhu 3/4/21 Mon 5/24/21 100% 16 negotiator to recap previous round of negotiations in 2017 17 Conduct internal surveyofall District Departmentsto 2O days Mon 1/25/21 Fri 2/19/21 100% identify work rules that need to be addressed in negotiations 18 Discuss and vet goals for negotiations in closed 15O days Mon 1/4/21 Fri 7/30/21 100% sessions (General Manager, Administration Committee, and Board) 19 Conduct studies, research and analysis related to 150 days Mon 1/4/21 Fri 7/30/21 100% District proposals and anticipated union proposals Pror cue nsultant(neutralthird partYl to conduct 15 days Mon 2/15/21 Fri 3/5/21 20 training of Board on roles and responsibilities during bargaining Train Board on roles and responsibilities during Iday Thu 4/15/21 Thu 4/15/21 100% 21 negotiations Management/Executive Team meets to discuss and 15 days Mon 2/22/21 Fri 3/12/21 100°b 22 prioritize work rules that need to be addressed in negotiations 100% 23 Select which District representatives will serve on 38 days Thu 3/18/21 Mon 5/10/21 District Bargaining Team 24 Tentative Agreements approved and ratified by 1 day Tue 9/14/21 Tue 9/14/21 memberships of Local One and MS/CG 25 Board ratification and approval of the signed Iday Thu 9/16/21 Thu 9/16/21--- Tentative Agreement with Local One Board ratification and approval of the signed 1 day 100% 26 Thu 10/7/21 Thu 10/7/21 Tentative Agreement with MS/CG Codify new terms and perform clean-up on MOUs for 40 days 0% 27 Fri 10/8/21 Thu 12/2/21 Board approval Ongina Staff nttiNry eoaN nc6Wry ! Page I November 2, 2021 Regular ADM IN Committee Meeting Agenda Packet - Page 104 of 106 (Amended)