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HomeMy WebLinkAbout13.a.Committee Minutes-Adminstration 10-01-2024Page 1 of 8 Item 13.a. 110ENTRAL SAN October 17, 2024 FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: OCTOBER 1, 2024 -ADMINISTRATION COMMITTEE - CHAIR MCGILLAND MEMBER HOCKETT Attached are minutes of the above Committee meeting. ATTACHMENTS: 1.Admin Committee minutes 10-01-24 October 17, 2024 Regular Board Meeting Agenda Packet - Page 197 of 209 Page 2 of 8 LCENTRAL SAN BOARD OF DIRECTORS: REGULAR MEETING OF THE MARIAHNLAURITZEN President CENTRAL CONTRA COSTA MICHAEL R. MCGILL SANITARY DISTRICT President Pro Tem ADMINISTRATION COMMITTEE BARBARAD. PILEC T TAD J ILECKI FLORENCE T WEDINGTON M I N U T E S PHONE: (925) 228-9500 FAX.- (925) 372-0192 Tuesday, October 1, 2024 www.cetitralsan.org 8:30 a.m. Cnmmittee Chair Mike McGill Member Barbara Hockett Guests: Andrew Brown, PFM Asset Management (left during Item 4.a.) Leslie Murphy, PFM Asset Management (/eft during item 4.a.) Staff. Katie Young, Secretary of the District Greg Norby, Deputy GM — Engineering & Operations (joined during Item 3.e.) Philip Leiber, Deputy GM - Administration Benjamin Johnson, Internal Auditor/Diversity, Equity, and Inclusion Officer (joined during Item 3.5.) Charles Mallory, Information Technology Manager Edgar Lopez, Capital Projects Division Manager (arrived during Item 3.e.) Emily Barnett, Communication and Governmental Relations Manager (joined during Item 4.a.) Kevin Mizuno, Finance Manager Teji O'Malley, Human Resources and Organizational Development Manager Christina Gee, Management Analyst (left after item 4.d.) Dennis Chebotarev, Project Manager/Business Analyst Heather Ramamurthy, Management Analyst (left during Item 4.c.) Karen DeLong, Administrative Services Assistant Call Meetina to Order Chair McGill called the meeting to order at 8:31 a.m. 2. Public Comments None. October 17, 2024 Regular Board Meeting Agenda Packet - Page 198 of 209 Page 3 of 8 Administration Committee Minutes October 1, 2024 Page 2 3. Items for Committee Recommendation to Board a. Review draft Position Paper and conduct biennial review of Board Policy BP 002 — Diversity Statement and consider request to retire this policy Mr. Leiber reviewed the draft Position Paper included in the agenda materials. He noted that because the concepts embedded in in BP 002 had been expanded upon and raised in stature through incorporation into Central San's values and strategic plan, that the stand-alone Board Policy was no longer necessary and could be retired. There were no public comments. COMMITTEE ACTION: Recommended Board approval. b. Review draft Position Paper to consider proposed revisions to (1) Board Policy BP 005 — Statement of Investment Policy; and (2) Investment Guidelines Document (IGD) related to the Other Post -Employment Benefits (OPEB) trust and the pension pre -funding trust Mr. Mizuno reviewed the draft Position Paper included in the agenda materials and introduced the guests from PFM Asset Management. In response to an inquiry from Chair McGill regarding references in subsection A, Ms. Murphy explained that the intent was to differentiate between asset-backed type securities issued by federal agencies and non-federal agencies. Mr. Leiber suggested editing the top of page 10, and Ms. Murphy stated she will correct the reference. There were no public comments. COMMITTEE ACTION: Recommended Board approval. C. Review draft Position Paper and conduct biennial review of Board Policy BP 017 — Fiscal Reserves Mr. Mizuno reviewed the draft Position Paper included in the agenda materials. Chair McGill requested clarification on page 11. Corrections will be made and the item returned to the Committee. There were no public comments. COMMITTEE ACTION: Recommended edits and Committee review. October 17, 2024 Regular Board Meeting Agenda Packet - Page 199 of 209 Page 4 of 8 Administration Committee Minutes October 1, 2024 Page 3 d. Review draft Position Paper and conduct biennial review of Board Policy BP 046 — Regulatory Accounting Mr. Mizuno reviewed the draft Position Paper included in the agenda materials, and shared that there were only minor clarifying edits recommended to the policy. Mr. Johnson opined that it is important, definitionally, to view Internal Audit as an independent resource, rather than part of management's responsibility for maintaining internal controls. There were no public comments. COMMITTEE ACTION: Recommended Board approval. e. Review draft Position Paper authorizing the General Manager to approve a one year extension to the EMTEC Consulting Services LLC (EMTEC) agreement, and approve an amendment to the contract with EMTEC not to exceed $700,000 to enhance functionality supporting the Enterprise Resource Planning (ERP) system Mr. Mallory reviewed the draft Position Paper included in the agenda materials. He stated that Oracle has a major upgrade called Redwood coming in the next six to nine months. Extending the support contract an additional year will facilitate a smooth transition through the upgrade and retain support through the integration of the construction management system. Member Hockett expressed concern about Oracle, and the impact of the challenges on staff. She expressed hope for it to go smoothly, while pointing out that implementation has not been smooth so far. Mr. Mallory agreed that there have been challenges but opined that significant progress has been made and is optimistic that it will get better. Chair McGill reminded the Committee about the Oracle issues recently presented regarding Permitting. He inquired if there were any options other than what is currently being pursued. Mr. Johnson said that the perception of Oracle can vary greatly depending on the department and the implementation experience. Mr. Leiber described Oracle Permitting experience as a two-sided coin with the positive side as offering the opportunity for customization to Central San's needs, but with the downside being that the product had very significant gaps in functionality, and we have had to experience the growing pains of the product as it has been developed. He stated that October 17, 2024 Regular Board Meeting Agenda Packet - Page 200 of 209 Page 5 of 8 Administration Committee Minutes October 1, 2024 Page 4 there was a concession given by Oracle on licensing fees for the product given the extended time needed for implementation. Mr. Johnson expressed appreciation for Mr. Mallory and Mr. Chebotarev in navigating the process and implementation of the system. Mr. Mallory stated that Oracle Permitting and Licensing (OPAL) is separate from the ERP system. He added that in addition to the challenges of implementation, the ERP project began during the pandemic which increased the time required. Chair McGill expressed appreciation for Mr. Mallory and his team for managing the difficulty and challenges in implementing this system. There were no public comments. COMMITTEE ACTION: Recommended Board approval. 4. Other Items a. Receive updated Board Handbook In response to an inquiry from Member Hockett as to how the revisions were initiated, Ms. Young responded that her team reviewed and edited the document and then it was reviewed with the General Manager (GM). Discussion followed with suggestions for minor wording changes and edits to consider. There were no public comments. COMMITTEE ACTION: Reviewed handbook, provided input to staff, and recommended Board receipt. b. Receive Administrative Procedure (AP) 112 — Onboarding New Board Members Ms. Young reviewed the information included in the agenda materials. There were no public comments. COMMITTEE ACTION: Received procedure and provided input to staff. C. Receive recap of 2024 Externship Program Ms. Gee reviewed the presentation included in the agenda materials. October 17, 2024 Regular Board Meeting Agenda Packet - Page 201 of 209 Page 6 of 8 Administration Committee Minutes October 1, 2024 Page 5 Member Hockett expressed appreciation for the fabulous, inclusive program and for the staff presenters. In response to Chair McGill's inquiry about how to livestream a tour, Ms. Gee explained that interns carried iPads and microphones on the tour to share virtually. There were no public comments. COMMITTEE ACTION: Received the update and recommended Board receipt. d. Receive recap of the 2024 citizens' academy, Central San Academy Ms. Gee reviewed the presentation included in the agenda materials. In response to an inquiry from Member Hockett, Ms. Gee stated that staff had not yet considered the location for the next session, but it would likely be brought back to a different location within the central or northern part of the service area, versus holding it in San Ramon again. Chair McGill stated that the San Ramon location was useful for creating interest in the 2024 election and asked if the academy had ever been held at Collection System Operations (CSO) in Walnut Creek. Ms. Gee replied that it had been held at CSO at least once but had some logistical challenges. Member Hockett suggested considering Danville for future sessions. Chair McGill requested including past locations with the years in the presentation. There were no public comments. COMMITTEE ACTION: Provided feedback, received the update and recommended Board receipt. e. Receive update on Enterprise Resource Planning (ERP) system project Mr. Mallory highlighted the accomplishment of implementing the ERP system amidst challenges, including the pandemic, and the long-term usability of the system. He also praised the departments utilizing the platform as well as Mr. Chebotarev for his leadership and contribution to the success of the project. Mr. Chebotarev reviewed the presentation included in the agenda materials. Mr. Mallory asserted that the Oracle October 17, 2024 Regular Board Meeting Agenda Packet - Page 202 of 209 Page 7 of 8 Administration Committee Minutes October 1, 2024 Page 6 support team has been attentive and helpful, adding resources to support the effort, and are making additions and fixes as necessary. Mr. Lopez shared that forms and contract templates in Oracle are simple and straightforward and can be useful. The construction contracts for large capital projects are more complicated and it has been recommended that they not be included in Oracle. He stated that Engineering will use the ERP system to the greatest extent possible. Mr. Mizuno added that internal transparency in reviewing and approving contracts can be complicated, and having one source is easier and more efficient. The procurement group in Finance has many contracts, and benefit from ERP streamlining. In response to Chair McGill's question about Oracle Celebrate, Ms. O'Malley explained that the recently completed "Kudos for Colleagues" program test run used the Oracle Celebrate platform successfully. Chair McGill questioned the layering of implementations for both ERP and the Cash Management Module for In -House Treasury. Mr. Leiber explained that Oracle ERP is already in place, configured initially to match Contra Costa County treasury practices. With the move away from the County to in-house treasury, the timing necessitates implementation of the new internal treasury practices with Oracle. Mr. Chebotarev added that implementation will ultimately allow for advances such as the more widespread use of electronic payments. Mr. Leiber expressed concern over the lack of availability and functionality of reports from Oracle. Mr. Chebotarev replied that subscriptions for other types of reporting are available that may be purchased in addition to Oracle. Mr. Mallory added that his department is looking into options for creating and developing reports. Mr. Leiber opined that with a ubiquitous cloud -based system it should be possible and accessible to share report creation between Sanitary Districts or similar entities, but that has not been the case. Chair McGill asked if Artificial Intelligence (Al) would supplant or supplement the system. Mr. Leiber shared that the advertising for Al is far from reality, and not really applicable for today. Mr. Mizuno added that Oracle Transactional Business Intelligence (OTBI) was used previously but was difficult and time-consuming to implement. Mr. Mallory shared that manipulation of data and creation of reports can be better utilized by pulling the data out of the system and using other tools to manipulate the data and generate reports. October 17, 2024 Regular Board Meeting Agenda Packet - Page 203 of 209 Page 8 of 8 Administration Committee Minutes October 1, 2024 Page 7 Member Hockett commended the report and the project's progress despite the difficulty of the process. There were no public comments. COMMITTEE ACTION: Received the update. 5. Announcements • Chair McGill acknowledged victims of the Hurricane Helene Disaster. • Member Hockett announced there would be a memorial service for Bette Boatmun, long-time member of the Contra Costa Water District. (CCWD) Board of Directors, on October 10 at 2:00 p.m. at the Pleasant Hill Senior Center. • Chair McGill suggested that the Thursday, October 3, 2024 Board of Directors meeting be adjourned in Ms. Boatmun's honor. 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items Mr. Mizuno stated that they would make the recommended corrections and return BP 017 to the next Committee meeting. COMMITTEE ACTION: Received the list and provided input to staff. 7. Future Scheduled Meetings Tuesday, November 5, 2024 at 8:30 a.m. Tuesday, December 3, 2024 at 8:30 a.m. 2025 Meetings - TBD 8. Adjournment — The Administration Committee adjourned at 10:24 a.m. in memory of Bette Boatmun. October 17, 2024 Regular Board Meeting Agenda Packet - Page 204 of 209