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Home My WebLink About17.a. Committee minutes-ADMIN 11-02-21 Page 1 of 8 Item 17.a. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT November 18, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: NOVEMBER 2, 2021 -ADMINISTRATION COMMITTEE - PRESIDENT PILECKI AND MEMBER HOCKETT (ALTERNATE) Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Minutes of 11-02-21 meeting November 18, 2021 Regular Board Meeting Agenda Packet- Page 67 of 112 Page 2 of 8 _- I CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-A392 BOARD OF DIRECTORS: REGULAR MEETING OF THE TAD✓.PILEcxI President CENTRAL CONTRA COSTA DAVIDR. WILLIAMS SANITARY DISTRICT President Pro Tem ADMINISTRATION COMMITTEE MARSH DA RITZEN MICHAEL R.MCGILL MINUTES PHONE: (925)228-9500 FAX' (925)372-0192 Tuesday, November 2, 2021 www.centralsan.org 9:00 a.m. (All attendees participated via videoconference) Committee: Acting Chair Tad Pilecki Member Barbara Hockett (alternate for Chair Williams) Staff. Roger S. Bailey, General Manager Kent Alm, District Counsel Katie Young, Secretary of the District Philip Leiber, Director of Finance and Administration Jean-Marc Petit, Director of Engineering and Technical Services (left during Item 5.a.) Ben Johnson, Internal Auditor Danea Gemmell, Planning and Development Services Division Manager (left after Item 4.c.) Kevin Mizuno, Finance Manager Teji O'Malley, Human Resources and Organizational Development Manager Christina Gee, Management Analyst Amelia Berumen, Assistant to the Secretary of the District (joined during Item 4.a.) Dee Dee Barrett, Administrative Services Assistant 1. Public Notice Regarding COVID-19 This meeting was held in-person with a virtual/hybrid meeting participation option in accordance with the Brown Act provisions stipulated in Assembly Bill (AB) 361 and adopted by the Central San Board of Directors on October 21, 2021 via Resolution 2021-078, effective for November 2021. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Acting Chair Pilecki called the meeting to order at 9.00 a.m. November 18, 2021 Regular Board Meeting Agenda Packet- Page 68 of 112 Page 3 of 8 Administration Committee Minutes November 2, 2021 Page 2 3. Public Comments None. 4. Items for Committee Recommendation to Board a. Review draft Position Paper to consider replacing a vacant Engineering Assistant 1/11 Position (G-60 to G-65, $3,270 - 4,462 Bi-Weekly) with a Lead Engineering Assistant Position (G-72, $4,356 - 5,273 Bi-Weekly) Ms. Gemmell reviewed the draft Position Paper included in the agenda materials. Acting Chair Pilecki requested clarifying verbiage be included in the background portion of the final Position Paper regarding consultants who assist Permit Counter staff with plan reviews. There was a discussion regarding the reclassification of the Engineering Assistant III position and Acting Chair Pilecki requested the organizational chart be updated on the Board Member's DropBox files. COMMITTEE ACTION: Recommended Board approval. b. Review draft Position Paper to adopt proposed revisions to Board Policy No. BP 017 - Fiscal Reserves, including an increase in the Catastrophic Loss Emergency Reserve of the Self-Insurance fund from $5 million to $6 million Mr. Leiber reviewed the changes proposed to BP 017, described in the draft Position Paper included with the agenda materials, noting there were a couple of minor clean-up changes and one substantive change proposed. Discussion was held on the substantive change to increase the Catastrophic Loss Emergency Reserve of the Self-Insurance fund from $5 million to $6 million. He noted that since the establishment of the fund about six years ago, keeping the same purchasing power would require an increase to at least $5.8 million. Funds are available to add such funds without an impact to rates, through a transfer from the rate stabilization account. In response to a question posed by Acting Chair Pilecki regarding flexibility of use of funds whether in the Operations & Maintenance (O&M) stabilization account or the proposed use of the Catastrophic Loss Emergency Reserve, Mr. Leiber advised that once the funds are transferred, they are dedicated to the emergency reserve fund and pledged for that purpose only. November 18, 2021 Regular Board Meeting Agenda Packet- Page 69 of 112 Page 4 of 8 Administration Committee Minutes November 2, 2021 Page 3 Acting Chair Pilecki suggested increasing the amount to $7.5 million due to the size of the capital program and uncertainty of the economy and supply chain. Member Hockett agreed with Acting Chair Pilecki and stated that a more aggressive approach is better and most prudent than risking the chance of not having enough in the fund. An additional suggestion was presented by Acting Chair Pilecki to have an automatic inflation adjuster every year. Mr. Leiber agreed language of this nature could be provided in the policy. COMMITTEE ACTION: Recommended Board approval. C. Review draft Position Paper to execute a new professional services agreement, effective November 18, 2021 through December 31, 2022 and rescind the current professional services agreement with Kenton L. Alm, Esq., for Counsel for the District services Ms. O'Malley reviewed the draft Position Paper included in the agenda material. She advised that pending Board approval the proposed new contract would go into effect November 18, 2021 through December 2022. The new agreement includes an increase to the hourly rate from $230 to $240 per hour and to the retainer hours from 72 hours to 76 hours. Additional services will increase from $235 to $245 per hour. Mr. Bailey stated how critical Mr. Alm continued service has been in the past two years and how supportive of the District he continues to be. He noted that Mr. Alm has continued to remain flexible and will help provide guidance during a succession transition period. Member Hockett believes it a great idea to have Mr. Alm continue as a mentor and help through the transition since he has an incredible amount of District history and knowledge to share. Acting Chair Pilecki requested verbiage be added to the Position Paper regarding the agreement covering the transition period and that the Board has completed the annual review of Mr. Alm's performance. Mr. Alm thanked the Committee Members. Acting Chair Pilecki provided Mr. Alm with constructive input from the entire Board on how to improve - "stay longer" COMMITTEE ACTION: Recommended Board approval. November 18, 2021 Regular Board Meeting Agenda Packet- Page 70 of 112 Page 5 of 8 Administration Committee Minutes November 2, 2021 Page 4 d. Review draft Fiscal Year 2020-21 Strategic Plan Annual Report Ms. Gee reviewed the presentation included in the agenda materials. Member Hockett stated that the District has so many reasons to be proud and congratulated staff on an incredible job. Acting Chair Pilecki was amazed with everything the District has accomplished and all of the hard work being done. He had minor corrections to Goal 7 and the footnotes that Ms. Gee will incorporate. COMMITTEE ACTION: Reviewed, provided input to staff, and recommended Board receipt. 5. Other Items a. 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 Management and Continuing Disclosure • BP 035 - Purchasing • BP 036 - Informal Bidding • BP 044 — Board Leadership and Community Representation BP 003— Hiring of District Retirees The Committee Members had no comments. BP 013— Board Committees Acting Chair Pilecki provided some suggestions as to how Committee Members are nominated annually. Under `General Committee Guidelines". he suggested the following sub-paragraph additions under Section 1. Additionally, it was suggested to replace the term "appointed annually" with "nominated annually"in the same section. a) Goal is to annually rotate Board Members on the Committees to ensure all Board Members serve on all Standing Committees. b) A Board Member shall not serve more than two years on any Standing Committee (one as a Member and one as a Chair). c) The Board, by a simple majority, can make exceptions in special circumstances. d) To promote fairness in assignments, given five Board Members and four Standing Committees and moving to a Division-based system, the following structure would apply: November 18, 2021 Regular Board Meeting Agenda Packet- Page 71 of 112 Page 6 of 8 Administration Committee Minutes November 2, 2021 Page 5 Calendar Year 2022 Members Pilecki and McGill will serve on one Committee Calendar Year 2023 Members in Divisions 2 and 4 will serve on one Committee Calendar Year 2024 Members Lauritzen and Pilecki[Division 1] will serve on one Committee Calendar Year 2025 Members in Divisions 3 and 5 will serve on one Committee Calendar Year 2026 Rotation by Division continuing the above sequence and beyond e) In the event a Board Member declines to serve on two Standing Committees for a calendar year, then the above schedule would be amended accordingly for succeeding calendar year assignments. Member Hockett appreciated the fact that the rotation of Committee Members makes a Board stronger. She stated that the Board needs to figure out how to best protect members of the Board of being voted off the Committee because of politics, bias or power. BP 021 — Social Media Communication The Committee Members had no comments. BP 029 — Debt Management and Continuing Disclosure In response to a question posed by Acting Chair Pilecki, Mr. Leiber advised that the types of debt that the policy applies to are listed in Article 10 of the Board Policy. Acting Chair Pilecki requested a line be added to the first page, under Purpose, stating that Article 10 lists all types of debt for which this policy is applicable. There was a discussion regarding the difference the District's Facilities Financing Authority (FFA) responsibilities and District responsibility regarding various debt. Mr. Leiber advised that the FFA is necessary for the use of Certificates of Participation; whereas revenue bonds do not use the FFA, but are to be issued through a Joint Powers Authority (JPA), or if refinancing existing debt, are direct obligations of the District. BP 035— Purchasing Acting Chair Pilecki requested a footnote be added to Table A as to which budget it refers to- Operations & Maintenance or Capital. Clarification was provided on the procurement process whether informal or formal. Acting Chair Pilecki asked staff to further review this policy to clarify how the various programs apply. November 18, 2021 Regular Board Meeting Agenda Packet- Page 72 of 112 Page 7 of 8 Administration Committee Minutes November 2, 2021 Page 6 BP 036— Informal Bidding Mr. Bailey suggested combining BP 035— Purchasing and BP 036— Informal Bidding as they are both part of the procurement process. Both Committee Members agreed. Staff will review both policies and bring back a future agenda item to review proposed amendments. BP 044 — Board Leadership and Community Representation Member Hockett stated that the District is going to divisions and the liaison opportunities should be structured based on those divisions. Acting Chair Pilecki suggested the policy be amended to read as follows: Appointment of Board Liaisons a. Board Members will serve as a liaison to the cities or towns in their respective division. To the extent there is a split, or have more than one Member, the liaison for those areas will be nominated by the Board President and approved by the Board annually. Until the full transition to division-based Districts, Board Liaison appointments would apply until calendar year 2024: Contra Costa County* Lafayette (District 2) Pacheco** Alamo* Martinez** Pleasant Hill** Clayton** Moraga (District 2) San Ramon** Concord** Orinda (District 12 Walnut Creek (District 3) Danville* * Contra Costa County Member Hockett (including Alamo and Danville) ** Split amongst Members Member Lauritzen: Lauritzen and Pilecki Martinez, Pacheco and San Ramon Member Pilecki: Clayton, Concord, and Pleasant Hill b. Exceptions. In any given year, the Board may, by a simple majority vote, make exceptions to Board Liaison designations in special circumstances. Appointment of Board Representatives a. The Board has determined that Board Members should be appointed to serve as Board Representatives to various organizations for a two-year term limit for any particular agency representation. The Board President shall nominate, and the Board shall approve annually... There was a lengthy discussion regarding city representation. November 18, 2021 Regular Board Meeting Agenda Packet- Page 73 of 112 Page 8 of 8 Administration Committee Minutes November 2, 2021 Page 7 Ms. Young suggested adding a provision regarding a term length for liaison representation. Committee Members agreed to a two-year term length, with the exception of Member Williams to continue the liaison coordination efforts for the Recycled Water Exchange Project with Contra Costa Water District and Valley Water. COMMITTEE ACTION: Reviewed policies and provided direction to staff. 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 updated the Committee on the status of the Management Group tentative agreement. She noted that there were some questions posed to Contra Costa County Employees'Retirement Association (CCCERA) and she is hopeful to have this item to the Board for approval in December. It was noted that there would be a report out of the recent Closed Session at the November 4 Board meeting. COMMITTEE ACTION: Received the information. 6. Announcements Ms. Young reminded the Committee that Thursday's Board Meeting (November 4) would be completely virtual and commence at 2:30 p.m. as approved at the previous Board meeting. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items Acting Chair Pilecki requested BP 007— Teleconferencing be reviewed at the next Administration Committee meeting on December 7. COMMITTEE ACTION: Received the list and provided input to staff. 8. Future Scheduled Meetings Tuesday, December 7, 2021 at 9:00 a.m. 9. Adjournment — at 10:37 a.m. November 18, 2021 Regular Board Meeting Agenda Packet- Page 74 of 112