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HomeMy WebLinkAbout20.b. (Continued) Hold discussion to review Board Policy BP 045 regarding Board-related expenses Page 1 of 13 Item 20.b. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT November 18, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: HOLD DISCUSSION TO REVIEW BOARD POLICY BP 045 - BOARD COMPENSATION, BENEFITS AND NON-TRAVEL EXPENSE REIMBURSEMENT, AS REQUESTED AT THE OCTOBER 21, 2021 BOARD MEETING (CONTINUED FROM NOVEMBER 4, 20211 At the October 21, 2021 Board meeting, Member McGill requested BP 045 - Board Compensation, Benefits and Non-Travel Expense Reimbursement be further reviewed regarding Board-related expenses. Therefore, staff has agendized this item to provide the Board with an opportunity to discuss any changes that may be needed and provide direction to staff as applicable. The current policy is attached for reference. ATTACHMENTS: 1. Board Policy BP 045 2. Supplemental Reference Material November 18, 2021 Regular Board Meeting Agenda Packet- Page 95 of 112 Page 2 of 13 Number: BP 045 Related Admin. Procedure: None Authority: Board of Directors Effective: October 21, 2021 zlgi6 Revised: Reviewed: CENTRALSAN Initiating Dept./Div.: SOD BOARD POLICY BOARD COMPENSATION, BENEFITS, AND NON-TRAVEL EXPENSE REIMBURSEMENT PURPOSE The purpose of this policy is to set forth compensation, benefits, and expense reimbursements for Central San Board Members, including when they should be compensated in the form of a meeting stipend and/or non-travel expense reimbursement (as stated in Section 4 below). BACKGROUND Section 6489 of the California Health and Safety Code and California Water Code sections 20200 et sec.. provide that compensation shall be paid to Board Members for each day's attendance at meetings of the Board or for each day's service rendered as a Board Member at the request of the Board, so long as that compensation does not exceed more than one meeting per day and six meetings per calendar month. In accordance with Assembly Bill (AB) 1234 (California Government Code Section 53232 et sec.), and to encourage participation and attendance at conferences and organizations which serve the interests of and provide benefit to Central San, the Board has determined that Board Members may be compensated and reimbursed expenses for each day's attendance at certain events and meetings. POLICY 1. Annual Review of Board Member Compensation and Benefits a. In accordance with the recommendation in Contra Costa Grand Jury Report No. 1104 ("Elected Board Membership") that all cities and special districts should conduct an annual public review of compensation and benefits provided to their respective elected councils and boards, Central San will conduct an annual public review of Board Member compensation and benefits. Such review will be held during the first quarter of each calendar year at a properly noticed public hearing. November 18, 2021 Regular Board Meeting Agenda Packet- Page 96 of 112 Page 3 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS,AND EXPENSE REIMBURSEMENT Page 2 of 7 2. Compensation (Meeting Stipend) In accordance with the Health and Safety Code and the California Water Code, the Board periodically adopts ordinances amending District Code Section 2.04.030, which provides for the "Compensation of Board Members" (hereinafter "meeting stipend"). The current meeting stipend is set by ordinance and is subject to change based on the Board's annual review. a. Activities Eligible for Meeting Stipend. Board Members may receive meeting stipends for the following: 1) Board and Committee Meetings. Each Central San Board meeting, including workshops attended, and each Standing Committee meeting or Ad Hoc Committee meeting attended either as a Committee Member or alternate (see Board Policy No. BP 013 — Board Committees). 2) Service as Board Liaison, Representative, or Alternate. Each day of service when appointed and serving as a Central San liaison, representative, or alternate, to the entities specified in BP 044 — Board Leadership and Community Representation, provided District business is conducted. 3) Executive Team Performance Evaluations. Meetings between the President and/or President Pro Tern with the General Manager, Secretary of the District, and District Counsel to convey closed session performance evaluations. 4) Meetings with Liaison City Mayors and/or Managers. Board liaison meetings with mayors and/or city managers, including meetings with staff to prepare for such meetings. 5) Presentations at Liaison City Council Meetings. Presentations at liaison city council meetings concerning District business. 6) Mandatory Training. Participation in mandatory two-hour ethics training and harassment prevention training as evidenced by a certificate of completion. Participation may be via training at a conference where expenses are reimbursed, online training, or in- house training offered to Central San employees. 7) Central San Academy. Only the final session of any Central San Academy cycle is eligible for the meeting stipend. Because the final session includes a question-and-answer session with Board November 18, 2021 Regular Board Meeting Agenda Packet- Page 97 of 112 Page 4 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS,AND EXPENSE REIMBURSEMENT Page 3 of 7 Members, any participating Board Member will receive a meeting stipend. 8) Meeting Stipend for Items Not Listed Above: Board Members may receive the meeting stipend for attendance at a meeting, conference, or another event not listed above where the attendance is of significant benefit to the District, and if approved by the Board in advance at a Board meeting. b. Activities Not Eligible for Meeting Stipend. Board Members may not receive meeting stipends for participation in the following: 1) Management/Leadership Academies 2) Signature events hosted by Central San 3) Signature events hosted by other agencies and cities 4) State of the City events 5) Annual City Council reorganizations or ceremonial events 6) Mayor monthly breakfasts 7) Presentations by Central San staff of Household Hazardous Waste Annual Report at Mt. View Sanitary District Board meeting 8) Presentations of resolutions of commendation to officials of sister agencies or entities to which Central San has appointed a Board liaison or representative (see BP 044 — Board Leadership and Community Representation) 9) Attendance at city council meetings with no expectation of presenting 10) Teleconferenced meetings with outside organizations that would be compensable if attended in person 11) Meetings with bargaining units' 12) Participation in Delta Discovery Voyage activities 13) Attendance at Grand Jury-related matters related to Central San business 14) Events for which there is no nexus to District business C. Declination of Stipend. Board Members who may otherwise be eligible to receive a meeting stipend for serving as an appointed Board liaison or representative of Central San may decline to accept the meeting stipend by giving notice to the Secretary of the District. From time to time, particularly as related to labor negotiations, the District's bargaining units may request to meet with Board Members to discuss issues of mutual interest. Unless approved in advance by the Board at a meeting, such meetings are not eligible for the meeting stipend. November 18, 2021 Regular Board Meeting Agenda Packet- Page 98 of 112 Page 5 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS, AND EXPENSE REIMBURSEMENT Page 4 of 7 3. Benefits a. Election to Receive Group Insurance Benefits. The Board of Directors elects to receive the same group insurance benefits as are offered to Central San employees, as permitted under Government Code Section 53208.5, including medical, dental, vision, and life insurance. Central San will pay 100% of the medical premium cost up to the family rate of the "core" plans for Board Members and 100% of the premium cost for dental, vision, and life insurance. b. Dual Coverage — Health Flexible Spending Arrangement Option. Upon proof of outside medical coverage, Board Members may waive District medical coverage and participate in Central San's Section 125 Cafeteria Plan (Health Flexible Spending Arrangement). Participation is voluntary. Central San will contribute $41.66 per month into a Flexible Spending account for each participant (contributions are limited under the Affordable Care Act to $500 per year). Board Members may either receive health coverage or participate in Central San's Health Flexible Spending Arrangement option, but not both. C. Deferred Compensation. Board Members are required to make a minimum contribution of 7.5% of their compensation to Central San's 457 Deferred Compensation Plan. (This amount is roughly the equivalent of Social Security and Medicare taxes.) Board Members may elect to defer all or a portion of their compensation up to IRS limits and select from a range of investment options for their contributions. d. Benefits Upon Separation from Service. Upon separation from service, a former Central San Board Member will be eligible to enroll in CalPERS for District medical coverage, and the District will pay the PEMHCA (Public Employees Medical and Hospital Care Act) minimum for Board Members if the following conditions are met: 1) Board Members must contribute (no maximum threshold) to the District's Section 457 Deferred Compensation Plan as an active Board Member. 2) After separation from Central San, the Board Member must be eligible for and elect to receive those contributions as an annuity. The current Deferred Compensation Plan provider, ICMA, has an annuity option available for Board Members. 3) Receipt of the annuity must begin within 120 days of separation. November 18, 2021 Regular Board Meeting Agenda Packet- Page 99 of 112 Page 6 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS, AND EXPENSE REIMBURSEMENT Page 5 of 7 The balance of the premium costs beyond the PEMHCA minimum must be borne by the former Board Member. Board Members may enroll in dental and vision coverage on a self-pay basis upon separation of service from Central San; however, they are ineligible to purchase group life insurance. e. Survivor Benefits Upon Separation from Service. The surviving spouse of a Board Member who has separated service from Central San is eligible for the PEMHCA minimum toward medical coverage and must pay any premium costs beyond the PEMHCA minimum. Dental and vision coverage is available on a self-pay basis. f. Survivor Benefits Upon Death in Office. A Board Member's surviving spouse and eligible dependent(s) will continue to receive the same level of medical, dental, and vision coverage as was in effect at the time of a Board Member's death while in office. A surviving spouse would receive coverage for life (including if he or she remarries), and any dependent children would receive coverage for as long as the plan allows. However, no new dependents may be added. g. Health and Wellness. Board Members may utilize Central San's employee gym during working hours and may participate in the Health and Wellness program activities offered to all employees. h. Electronic Devices. Pursuant to BP 014 — District-Owned Mobile Computing Devices for Board Members, computing devices equipped with a cellular data plan are offered at no cost to each Board Member to facilitate access to electronic agenda packets. 4. Expense Reimbursement a. Travel Expense Reimbursement. Central San pays registration, travel, and other expenses for Board Members to attend various conferences. Reimbursement for those expenses is covered in BP 008 — Travel Expense Reimbursement and the supporting Administrative Procedure No. AP 008. b. Non-Travel Expense Reimbursement. The Board has determined that public resources should be used to reimburse expenses incurred when attending meetings, local conferences, or events related to District business and are of interest and value to the District. These meetings, local conferences, or events include, but are not limited to: November 18, 2021 Regular Board Meeting Agenda Packet- Page 100 of 112 Page 7 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS,AND EXPENSE REIMBURSEMENT Page 6 of 7 1) Events or activities associated with serving as an appointed Board liaison or representative (see BP 044 — Board Leadership and Representation), unless specifically excluded below. 2) Regular monthly events hosted by the following industry associations: • Contra Costa County Mayors' Conference • Industrial Association of Contra Costa County (IACCC) 3) Events sponsored by organizations for which Central San is a dues-paying member, including the East Bay Leadership Council, provided the event has a clear nexus and benefit to the District. Where no clear nexus or benefit to the District is apparent, advance approval of the Board is required in accordance with section (c) below. 4) Local public official informational meetings or other meetings where the topic is of interest to the District or promotes inter-agency cooperation and partnerships. 5) Mandatory training for ethics and harassment prevention. C. Expense Reimbursement for Activities Not Listed Above: Board Members may receive expense reimbursement for meetings, events, or activities not listed above where the attendance is of significant benefit to the District, and if approved by the Board in advance at a Board meeting. d. Mileage Reimbursements. Board Members are eligible for mileage reimbursement for traveling to qualifying events, such as Board liaison and Board representative meetings; however, they are not eligible for mileage reimbursement for traveling to and from Board and Committee meetings. e. Activities Not Eligible for Expense Reimbursement. Board Members will not receive expense reimbursement for the following activities: 1) Attendance at staff presentations of Household Hazardous Waste Annual Report at Mt. View Sanitary District Board meetings 2) Presentations of resolutions of commendation to officials of sister agencies or entities to which Central San has appointed a Board liaison or representative (see BP 044 — Board Leadership and Representation) 3) Attendance at city council meetings with no expectation of presenting November 18, 2021 Regular Board Meeting Agenda Packet- Page 101 of 112 Page 8 of 13 Number: BP 045 BOARD COMPENSATION, BENEFITS, AND EXPENSE REIMBURSEMENT Page 7 of 7 4) Participation in Delta Discovery Voyage events 5) Events for which there is no nexus to District business 4. Compliance with Assembly Bill (AB) 1234 a. Reporting Requirements. AB 1234 requires Board Members to provide brief written or oral reports at Board meetings for those meetings or events for which they received the meeting stipend, and for meetings, conferences, or events they have attended for which the District has paid their expenses. As a courtesy, the Secretary of the District will track these events and incorporate appropriate wording into the agenda sufficient to comply with Board Member reporting requirements under AB 1234. [Original retained by the Secretary of the District] November 18, 2021 Regular Board Meeting Agenda Packet- Page 102 of 112 Attachment 2 Supplemental ACTIVITIES NOT ADDRESSED IN Reference BOARD COMPENSATION RESOLUTION NO. 2015-008 BOARD DIRECTION Board Member Stipend? Event/Activity Attendance Required? Comments/Considerations Yes/No TRAININGS: Ethics Yes,2 hours every 2 This is mandatory training required of all Board Members every two YES (includes Brown Act, Public years. years. It may be taken online,at a conference,or at Central San. 4-1 Records Act, and Political Expense reimbursement for attendance at a conference where this Pilecki No Reform Act) training is offered is allowed. "Stipend will be paid In the past,a stipend was paid if training was received during a Central whether training is San Board meeting(if a quorum was present);otherwise no. Expense online or at a reimbursement is paid for conference attendance at which training was conference as well. taken. Harassment Prevention Yes,2 hours every 2 This is mandatory training required of all Board Members every two YES years. years. It may be taken online,at a conference,or at Central San. 4-1 Expense reimbursement for attendance at a conference where this Pilecki No training is offered is allowed. No stipend has been paid in the past. ACADEMIES: Central San Academy Yes. The Board Kickoff Session: The Board President has given a presentation to Kickoff Session President presents at Academy attendees at each kickoff session since 2016. There is NO the first session. considerable preparation time involved. To date, no stipend has been 4-1 paid for this presentation. Should there be? Williams Yes The entire Board is invited to attend the Middle Sessions: Some Board Members like to attend as many of the Final Session final session because of Academy sessions as they can. No"middle"sessions have been noticed YES the Q&A segment. as Board meetings because, even if a quorum of the Board were 3-2 Attendance is not present, Board Members have no particular role in these sessions;they Causey, Nejedly No mandatory. attend as observers. Therefore, no stipends have been paid for Board Members attending these sessions. Final Session (Graduation): Because the Q&A segment could touch on topics that are within the subject matter jurisdiction of the Board,out of an abundance of caution these sessions have been noticed as special (March 2,2020 Special Board Meeting) Page 1 of 5 November 18, 2021 Regular Board Meeting Agenda Packet- Page 103 of 112 BOARD DIRECTION Board Member Stipend? Event/Activity Attendance Required? Comments/Considerations Yes/No Board meetings until it is known if a quorum will be present. If no quorum, no stipends are paid. If any of the sessions are noticed as special Board meetings and a quorum is present,all attending Board Members are eligible for stipends. Stipends were paid in both 2018 and 2019 for attendance at the final session because a quorum was present. Management/Leadership Yes, if requested by The Management/Leadership Academy is conducted every other year. NO 5-0 Academy consultant as part of Board Members may be invited by the facilitating consultant to be curriculum. interviewed in a Q&A session with Academy participants. These appearances involve preparation time with the consultant. No stipend has been paid in the past. SIGNATURE EVENTS: Hosted by Central San Not required but Board Member attendance at signature events hosted by Central San NO 5-0 encouraged. (e.g.,70t"Anniversary,and 20t"Anniversary of HHW). No stipend has been paid in the past. Signature Events Hosted by No. Mt.View Sanitary District(MVSD) held a grand opening for refurbished NO 5-0 Other Agencies/Cities wetlands which was attended by a Board Member(not the Board liaison to that agency). There was no cost to attend and no stipend was requested. UNIQUE TO CENTRAL SAN: Executive Team Yes. The President and/or President Pro Tern meet with the General YES 5-0 Performance Evaluations Manager,Secretary of the District and District Counsel to convey closed session performance evaluation results. In 2019 those meetings lasted several hours and, in some instances,there were multiple meetings. No stipend has been paid. (March 2,2020 Special Board Meeting) Page 2 of 5 November 18, 2021 Regular Board Meeting Agenda Packet- Page 104 of 112 BOARD DIRECTION Board Member Stipend? Event/Activity Attendance Required? Comments/Considerations Yes/No BOARD LIAISON/ REPRESENTATIVE: Annual City Council No. Should Board Members get a stipend for attendance at these events, NO 4-1 Reorganizations or which are largely social in nature and at which no official District McGill Yes Ceremonial Events business being conducted if it is in their liaison city? In 2016,one Board Member attended the reorgs for both of his liaison cities. No stipends were paid. In 2017, however,that same Board Member received a stipend for attending the reorg for one of his liaison cities because the sitting Secretary of the District considered such events to be stipendable if attended by the Board liaison. Stipends have been paid to Board Members attending city reorgs ever since. State of the City Events No. Board liaisons often attend these events and Central San has paid the NO 3-2 with Mayors expenses(usually a meal). No stipends have been paid. Nejedly& McGill Yes Mayor Monthly Breakfasts No. One Board Member attends these events in his liaison city whenever NO 5-0 available. There is no cost for these breakfasts and no stipend has been requested or paid to date. Presentation by Central San No. Member Pilecki has always attended these meetings as the liaison to NO 4-1 Staff of HHW Annual MVSD and to support staff,who presents the report. He has declined McGill yes Report at MVSD Board receiving stipends. Meeting Presentation of resolution Possibly. Stipends have been paid to Board Members who have presented NO 5-0 of commendation to official resolutions of commendation adopted by Central San's Board for local of sister agency or liaison agency officials. These presentations typically have been at the local city/County agency's Board/Council meeting. Attendance at City Council No. NO 5-0 Meeting(no expectation of presenting) (March 2,2020 Special Board Meeting) Page 3 of 5 November 18, 2021 Regular Board Meeting Agenda Packet- Page 105 of 112 BOARD DIRECTION Board Member Stipend? Event/Activity Attendance Required? Comments/Considerations Yes/No MISCELLANEOUS: Board Members—Requests Yes. This is fairly rare, but in 2019,for example: REMOVED FROM LIST from Outside Organizations • Member Nejedly was asked to speak at the Concord Rotary for Speaking Engagements regarding Central San. While not the Board liaison to that city,the event involved advance preparation working with staff on his presentation. A stipend was paid. • Member McGill was asked by the Round Hill Garden Club to speak about the Farm and recycled water. He worked with staff to prepare his presentation. Meeting with Liaison City Yes. ADDED TO LIST BY BOARD MEMBERS 3-2-2020 YES 5-0 Manager or Board Member to prepare for presentation Teleconferenced Meetings Probably. For example: NO 3-2 That Would be • If a CASA Executive Board Member attended a meeting of that body McGill & Pilecki Yes Compensable if Attended in via teleconference,should a stipend be paid? Person • As liaison to the CSDA Contra Costa Chapter, Member McGill has attended several CSDA Nominating Committee meetings via teleconference for which a stipend was paid. Should teleconferenced meetings that would otherwise be stipendable be addressed in the policy? If so,should there be a time limit? Reimbursement for Events N/A A Board Member sits on the Board of an industry association. NO 5-0 with No Nexus to District Sometimes Central San receives free tickets as part of its membership, Business but that may not always be the case. If that is not an option,and the item has no nexus to direct District business,should that be addressed? Delta Discovery Voyage Encouraged, at least A Board Member recently participated in this annual voyage which NO 5-0 once. takes place on a Saturday on the San Joaquin Delta. There was no cost to attend the event because it was covered by Central San's annual contribution. No stipend was paid. (March 2,2020 Special Board Meeting) Page 4 of 5 November 18, 2021 Regular Board Meeting Agenda Packet- Page 106 of 112 BOARD DIRECTION Board Member Stipend? Event/Activity Attendance Required? Comments/Considerations Yes/No Reimbursement for N/A The District has been paying one Board Member's annual membership NO 5-0 Membership in Outside fees in the California Water Environment Association (CWEA)for the last Industry Organizations several years. This is not specifically addressed in the current resolution;should it be? Meeting with attorney or Yes. Board Member Pilecki recently met with defense counsel in a litigated REMOVED FROM LIST appearance at a deposition matter involving Central San because of his familiarity with the matter or hearing on legal matter while he was a District employee. He neither asked for nor received a on behalf of Central San stipend. Attendance at Grand Jury Yes. ADDED TO LIST BY BOARD MEMBERS 3-2-2020 YES 5-0 related to Central San Business (March Z 2020 Special Board Meeting) Page 5 of 5 November 18, 2021 Regular Board Meeting Agenda Packet- Page 107 of 112