The URL can be used to link to this page

Home My WebLink AboutBOARD MINUTES 08-17-23110ENTRAL SAN MINUTES* REGULAR BOARD MEETING Board Room Thursday, August 17, 2023 2:30 p.m. Open Session - Board Room (Video recorded) 7e7■orNi\■■ BOARD OFDIRECTORS.- BARBARA D. HOCKETT President MARIAHN. LAVRITZEN President Pro Tem MICHAEL R. MCGILL TAD J. PILECKI FLORENCET. WEDINGTON A regular meeting of the Board of Directors was called to order by President Hockett at 2:30 p.m. Secretary of the District Katie Young called roll: PRtSENT. Members: Lauritzen, McGill, Pilecki, Wedington, Hockett ABSENT. • Members: None PLEDGE OF ALLEGIANCE The Board, staff and audience joined in the Pledge of Allegiance. INTRODUCTIONS 1. Introduce Fall 2023 Intern Students It was announced that the fall interns would be introduced at a future meeting. PUBLIC COMMENT PERIOD No comments. REQUESTS TO CONSIDER MATTERS OUT OF ORDER None. These summary minutes are supplemented by a corresponding video recording available on the District's website at centralsan.org. Book 71- Page 151 CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 152 CONSENT CALENDAR 2. Approve the following: a. August 3, 2023 Board meeting minutes 3. Adopt the side letters between the District and the Management Group; Management Support/Confidential Group; and AFSCME, Public Employees' Union, Local #1 regarding the change in "core" medical plans for all employees BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to adopt the Consent Calendar as recommended. Motion passed by unanimous roll call vote. PUBLIC HEARINGS 4. Conduct a public hearing to consider approving Central San membership in the California Municipal Finance Authority (CMFA) and participation in the Bond Opportunities for Land Development (BOLD) program. Consider adopting Resolution 2023-024 authorizing Central San to join CMFA and Resolution 2023-025 authorizing the General Manager to participate in the BOLD funding program. Senior Engineer Thomas Brightbill reviewed the presentation included in the agenda materials. There was a question regarding the situation of a potential bankruptcy of the landowner and the capacity fees being returned. It was reiterated that the capacity fees stay with the land and should the developer declare bankruptcy, the Joint Powers Authority (JPA) becomes owners of the land. President Hockett opened the public hearing, hearing no comments, she immediately closed the hearing. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Lauritzen to conduct the public hearing and adopt Resolution No. 2023-024 and Resolution No. 2023-025, as presented. Motion passed by unanimous roll call vote. ER BOARD ACTION ITEMS 5. Approve proposed salary increase of eight- and three-quarters percent for Secretary of the District Katherine Young, effective August 18, 2023. Member McGill stated that he is very supportive of the proposed salary increase as Ms. Young has done a tremendous job this past year and is well deserving of the increase. BOARD ACTION: Motion was made by Member McGill and seconded by Member Pilecki to approve proposed salary increase of eight- and three- CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 153 quarter percent for Secretary of the District Katherine Young, as set forth in the Seventh Amendment to her February 11, 2019 Employment Agreement, effective August 18, 2023. Motion passed by unanimous roll call vote. 6. Approve a salary increase of five- and one-half percent (5.5%), an increase in Paid Time Off (PTO) from 30 to 33 days annually, and an increase in his PTO accumulation cap from 60 to 66 days which would be equivalent to twice his annual limit, effective August 18, 2023 BOARD ACTION: Motion was made by Member Pilecki and seconded by Member McGill to approve proposed salary increase of five- and one-half percent (5.5%), an increase in Paid Time Off (PTO) from 30 to 33 days annually and an increase in his PTO accumulation cap from 60 to 66 days which be equivalent to twice his annual limit, effective August 18, 2023. Motion passed by unanimous roll call vote. Member McGill stated that Mr. Bailey has done a wonderful job managing Central San and he is deserving of the increase. 7. Appoint Central San representatives to the Northern California Sanitation Agencies Financing Authority, a Joint Powers Authority, and adopt Resolution No. 2023-026 Deputy General Manager -Administration Phil Leiber stated that participation in the Joint Powers Authority (JPA) was approved in January 2023, but that two (2) representatives and two (2) alternates were not chosen as required by participation in the JPA. BOARD ACTION: Motion was made by Member Pilecki and seconded by Member Wedington to adopt Resolution No. 2023-026 appointing regular and alternate members to serve on the Northern California Sanitation Agencies Financing Authority Joint Powers Authority. Motion passed by unanimous roll call vote. 8. Review risk assessment, draft policies and procedures, and a project implementation plan related to the proposed transition to an In-house Treasury Structure and provide direction to staff on the transition Mr. Leiber briefly introduced the presentation included in the agenda packet. He stated that staff has historically questioned if having the County as intermediary in banking and investment matters benefitted Central San. An internal audit conducted by Central San staff identified insufficiencies and the Board approved exploring the move of the treasury function In -House by securing the services of Certified Public Accountants Eide Bailly LLP. James Ramsey, Eide Bailly Partner, summarized identified insufficiencies, components of the risk assessment, and the process taken to gather information to inform their recommendations. Mr. Ramsey presented the proposed structures, risks, and solutions of the four identified insufficiencies and a summary of the overall recommendations to transition to in-house treasury functionality. Finance Manager Kevin Mizuno presented a summary of draft policies and procedures and a project implementation plan. He clarified that the Board is not being asked to CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 154 approve any draft policies, procedures or plans at this time and presented an implementation timeline with a target go -live date of April 1, 2024, for in-house banking services. Member Lauritzen thanked Mr. Mizuno and team for providing more detail as requested after their presentation to the Finance Committee. Member McGill opined that the team that is working on this transition has done great work and that he wants to be sure that Central San proceeds with continued caution. Member Pilecki commented that Deputy General Manager - Operations, Greg Norby, should be added to Exhibit A, to ensure succession planning. He also suggested that it might be prudent for Central San to have their funds in two banks to ensure liquidity and have a contingency plan in case of problems with the primary bank. President Hockett asked if banks which could operate within the proposed treasury functions have been identified. Mr. Mizuno indicated that those banks have not yet been identified. Mr. Leiber confirmed that most major banks offering services to government agencies would be able to provide all the services required by a new structure within Central San and working directly with them will provide Central San greater flexibility with banking matters. BOARD ACTION: Motion was made by Member Wedington and seconded by Member McGill directed staff to proceed with designing and implementing an In- house Treasury Function consistent with the draft banking and cash management policy and procedures and the project implementation plan presented by staff. Motion passed by unanimous roll call vote. 9. Review and consider adopting proposed guidelines for appointing a new Board member President Hockett questioned whether the Board wants to implement a 13 page guidelines document before corrections to grammar and style are undertaken. Member Pilecki stated that he wants the Board to remember that this document is a guideline, not a policy, to provide guidance on future Board appointments. Member Wedington opined that the document would be useful to guide the process in the future. Member McGill stated that he found the guideline document useful in that it captures all that is required in the event of a future Board appointment process. Member Lauritzen stated that she felt that the document spoke to the fact that Central San is a government entity and, to provide transparency and trust in government, specific guidelines are provided for. President Hockett believes that the document was too prescriptive and limited the participation of a large number of potential applicants. CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 155 Member Wedington opined that the document provides a good basis for the procedure in the future but does not prohibit or exclude any individuals. General Manager Roger Bailey stated that the confusion may stem from the sample questions in the draft document and suggested the Board may want to consider removing the questions or modifying them. Discussion was held on this matter and several example questions were specified for removal. Discussion was also held to confirm other changes throughout the document. Member McGill thanked Deputy General Manager Phil Leiber and Ms. Young for their hard work on producing and editing the document. The Board Members provided their comments/changes to staff to incorporate in the guidelines that were agreed upon by a majority of Board Members. There was a lengthy discussion regarding the ranking of candidates and need to provide reasoning for the ranking. BOARD ACTION: Motion was made by Member Pilecki, seconded by Member McGill to allow each Board Member to rank their candidates and not have to provide justification for the ranking. The motion passed by the following roll call vote: AYES: Members: McGill, Pilecki and Hockett NOES: Members: Lauritzen and Wedington Further corrections/suggestions were provided to staff on the language in the document. It was suggested that the guidelines should be returned to the full Board for another review once all of the modifications have been made. There was further discussion on this matter. BOARD ACTION: Motion was made by Member McGill, seconded by Member Pilecki to approve the guidelines with the modifications made. Motion failed by the following roll call vote: AYES: Members: McGill and Pilecki NOES: Members: Lauritzen, Wedington, Hockett BOARD ACTION: Motion was made by Member Lauritzen, seconded by Member Wedington to bring back the guidelines at the next Board meeting with the recommended changes for a second review. Motion passed by unanimous roll call vote. LEGISLATIVE MATTERS 10. Receive update on pending legislative matters CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 156 Communications and Intergovernmental Relations Manager Emily Barnett made a brief statement that no changes to positions on existing legislation is requested and there were no updates on Legislative action since the body has just reconvened. BOARD ACTION: Received the update. REPORTS AND ANNOUNCEMENTS 11. General Manager —Announcements a. Announcements —August 17, 2023 Other than written announcements included with the agenda materials, no further announcements were made. BOARD ACTION: Received the announcements. 12. Counsel for the District No report. 13. Secretary of the District Ms. Young announced the following upcoming Committee meetings: Engineering & Operations (Special) — Monday, August 21 at 9:30 a.m. Finance Committee — Tuesday, August 22 at 9:30 a.m. REEP Committee — Wednesday, August 23 at 9:00 a.m. Admin Committee — Tuesday, September 5 at 9:00 a.m. (changed from 9:30) BOARD ACTION: Received the announcements. 14. Board Members - Committee Minutes a. August 1, 2023 — Administration Committee — Chair Lauritzen and Member McGill BOARD ACTION: Received the Committee minutes. 15. Board Members - Reports and Announcements Board Member reports on recent meetings or conferences for which they received the stipend or for which the District paid their expenses. a. Member Lauritzen • August 3 — Contra Costa County Mayor's Conference, Lafayette Veterans Memorial Center, 3780 Mt. Diablo Blvd., Lafayette, CA CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 157 August 9-11 — California Association of Sanitation Agencies (CASA) conference, San Diego, CA Member McGill • August 3 — Contra Costa County Mayor's Conference, Lafayette Veterans Memorial Center, 3780 Mt. Diablo Blvd., Lafayette, CA • August 9-11 — California Association of Sanitation Agencies (CASA) conference, San Diego, CA Member McGill also provided a written report covering his announcements and other meetings. Member Pilecki No report. Member Wedington • August 3 — Contra Costa County Mayor's Conference, Lafayette Veterans Memorial Center, 3780 Mt. Diablo Blvd., Lafayette, CA • August 9-11 — California Association of Sanitation Agencies (CASA) conference, San Diego, CA President Hockett • August 9-11 — California Association of Sanitation Agencies (CASA) conference, San Diego, CA BOARD ACTION: Received the reports and announcements. 16. Board Members - Requests for Stipend/Reimbursement or Conference Attendance Authorization to receive a stipend for meeting attendance or expense reimbursement not specifically addressed in the current Board Compensation Policy, or authorization for conference attendance not previously approved by the Board. None. EMERGENCY SITUATIONS None. REQUESTS FOR FUTURE AGENDA ITEMS None. CENTRAL CONTRA COSTA SANITARY DISTRICT August 17, 2023 Board Meeting Minutes - Book 71— Page 158 ADJOURNMENT The meeting was adjourned at 5:32 p.m. y., 1 4 wfl#c Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie YC�N, WC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California