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HomeMy WebLinkAboutAdministration MINUTES 12-06-22Page 2 of 5 LCENTRAL SAN BOARD OF DIRECTORS REGULAR MEETING OF THE DAVIDR. WILLIAMS President CENTRAL CONTRA COSTA BARBARA D. HOCKETT SANITARY DISTRICT President Pro Tem ADMINISTRATION COMMITTEE MARIAHN.LR.MCG MICHAEL R. MCGILLLL TAD J. PILECKI MINUTES PHONE: (925) 228-9500 FAX- (925) 372-0192 Tuesday, December 6, 2022 www.centralsan.org 1:00 P.M. (All attendees participated via videoconference) ('.nmmittaa Chair Tad Pilecki Member Mariah Lauritzen Staff. - Kenton Alm, District Counsel (left after Item 4.a.) Katie Young, Secretary of the District Philip Leiber, Director of Finance and Administration (joined during Item 4.a.) Benjamin Johnson, Internal Auditor Emily Barnett, Communications and Government Relations Manager Teji O'Malley, Human Resources and Organizational Development Manager (joined during Item 4.a.) Amelia Berumen, Assistant to the Secretary of the District Stacey Durocher, Administrative Services Assistant 1. Notice This meeting was conducted virtually in accordance with the provisions stipulated in Assembly Bill 361 and adopted on December 1, 2022, by the Central San Board of Directors. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Chair Pilecki called the meeting to order at 1:00 p.m. 3. Public Comments None. December 15, 2022 Regular Board Meeting Agenda Packet - Page 137 of 145 Page 3 of 5 Administration Committee Minutes December 6, 2022 Page 2 4. Items for Committee Recommendation to Board a. Review and consider recommendation to approve proposed revisions to Board Policy BP 034 - Reporting Protocol for Ethics Hotline Ms. Berumen reviewed the proposed changes to BP 034 with the Committee. Member Lauritzen inquired what has been done to make employees aware that this hotline exists. Ms. Berumen responded that flyers (included in the agenda materials) are posted on most bulletin boards around the District and once this review is completed, she intends to include the flyer information as part of the Administrative Procedure distributed to all staff. In response to a question posed by Chair Pilecki regarding cost, Ms. Berumen advised there is no charge to the District for the hotline, the program is provided as part of the CSRMA membership. Mr. Alm expressed his concern about the hotline being advertised for criminal acts and suggested the Board hold a discussion regarding a broader hotline for the anonymous complaints. Chair Pilecki agreed. Member Lauritzen opined that there is room for improvement as the hotline has never been used. Chair Pilecki suggested adopting the proposed changes brought to the Committee today, but requested staff return to the Committee with additional hotline options for all complaints. There was a discussion regarding the creation of a webpage form that could be submitted on the intranet as well. In terms of the proposed policy, Chair Pilecki offered two corrections regarding the addition of Board Members to the policy, and the delegation of responsibility to both the General Manager and District Counsel. The Committee had no further changes and recommended Board approval. COMMITTEE ACTION: Recommended Board approval. b. Review draft Position Paper approving proposed revisions to Board Policy No. BP 042 - Other Post -Employment Benefits (OPEB) Funding During the biennial review of BP 042, staff found the need for only minimal changes as explained by Mr. Leiber to the Committee. December 15, 2022 Regular Board Meeting Agenda Packet - Page 138 of 145 Page 4 of 5 Administration Committee Minutes December 6, 2022 Page 3 The Committee had no questions or further changes and recommended Board approval. COMMITTEE ACTION: Recommended Board approval. 5. Other Items a. Receive information on the change to the organizational structure for the Purchasing and Materials Services management function Ms. O'Malley advised that staff recently reviewed the Purchasing Department functions and made some changes effective in October. Some of the changes noted were: The Purchasing function is overseen by the newly established position of Contracts and Procurement Administrator which has been filled by the former incumbent of the Purchasing and Materials Manager position, who now reports to the Finance Manager. The Materials Management (Warehouse) function began reporting directly to the Director of Finance and Administration. The Director will be assisting this group and the Plant Maintenance Division in aligning data between the Oracle Enterprise Resource Program (ERP) and the Asset Management system, as part of an effort to optimize inventory levels and ensure availability of needed parts. Ms. O'Malley stated that progress has been made in improving the Purchasing function over the past few years, including the implementation of the ERP system, updating policy and procedures, the addition of purchasing metrics specified in the Strategic Plan, increased communication with internal users, and new staff onboarded with an emphasis on customer service. She noted that with the Finance Manager's oversight, a new "set of eyes" will continue to look for and implement further improvements, while the Contracts and Procurement Administrator can now fully and more closely oversee the day-to-day operations and efforts to meet the new service metrics. Member Lauritzen inquired if there was a reason for this change. Ms. O'Malley responded that this change has been in review for several years and had the input of the effected individuals. The goal is to improve the function and extend the progress that has been made in recent years. Chair Pilecki expressed concern about having a single job classification overseeing the purchasing and finance portions of the District and inquired if the Internal Auditor has performed an audit on this function. December 15, 2022 Regular Board Meeting Agenda Packet - Page 139 of 145 Page 5 of 5 Administration Committee Minutes December 6, 2022 Page 4 Mr. Leiber provided the example of the benefit of having closer oversight of both functions by the Finance Manager, as with the implementation of the Oracle ERP system, encumbrance accounting was put in place, but it has required substantially more work and coordination for effective operation. He noted that segregation of duties as a key internal control remains in place, and that with this or even the previous arrangement, at some point in the organizational structure there is an individual providing oversight over both functions, but that other compensating controls are important to offset those concerns. Mr. Johnson advised that with his procurement audit occurring in the first quarter, internal controls related to purchasing will be reviewed, and he check on the issue of appropriate segregation of duties. COMMITTEE ACTION: Received the information and provided input to staff. 6. Announcements None. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items As mentioned in Item 4.a. the Committee requested staff review Board Policy BP 034 to incorporate more options. COMMITTEE ACTION: Received the list and provided input to staff. 8. Future Scheduled Meetings 2023 Committee Dates TBD 9. Adjournment — at 1:33 p.m. December 15, 2022 Regular Board Meeting Agenda Packet - Page 140 of 145