Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

AGENDA BUDGET/PERSONNEL COMMITTEE (BPC)

Rudy Fischer, Chair

Dennis Allion, Gloria De La Rosa, Peter Le [Alternate – Linda Grier]

DATE: Friday, June 12, 2015

TIME: 12:30 p.m.

LOCATION: Admin Conference Room 5 Harris Court, Building D

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS Anyone wishing to address the Committee on matters not appearing on the Agenda may do so now. Comments on any other matter listed on the Agenda are welcome at the time the matter is being considered by the Committee.

4. APPROVE MAY 8, 2015 BPC MINUTES

5. UPDATE ON ASSISTANT GENERAL MANAGER RECRUITMENT

6. FOLLOW UP REPORT FROM JUNE 8, 2015 BUDGET WORKSHOP

7. CONSIDER APPROVAL OF PAID SICK LEAVE POLICY PURSUANT TO AB 1522 FOR PART-TIME EMPLOYEES

8. UPDATE ON OCCUPATIONAL SAFETY & HEALTH ADMINISTRATION (Cal/OSHA) INSPECTIONS

9. STAFF MEMBER COMMENTS

10. COMMITTEE MEMBER COMMENTS Committee Members may ask a question for clarification, make a brief announcement or make a brief comment or report on his or her own activities within the jurisdiction of the committee. No discussion or action is appropriate other than referral to staff for consideration or setting a matter as a future agenda item.

11. ADJOURNMENT

* * * * * * * * *

This Committee Meeting Notice and Agenda was hereby posted at the MRWPCA Administrative offices, 5 Harris Court, Building D, Monterey, California 93940.

POSTED: Tuesday, June 9, 2015 BY: /s/ Chayito Ibarra

Executive Assistant/Clerk to the Board

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

C O M M I T T E E M I N U T E S / R E P O R T

BUDGET/PERSONNEL COMMITTEE

Friday, May 8, 2015 11:00 am to 12:24 pm

5 Harris Court, Building D

Monterey, California

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS

4. APPROVE APRIL 10, 2015 BPC MINUTES

5. UPDATE ON FY 15/16 BUDGET

6. CONSIDER AWARD OF CONSTRUCTION CONTRACT FOR THE GRIT PIPING REPLACEMENT PROJECT

7. CONSIDER APPROVAL OF RESOLUTION FOR EXCEPTION TO THE 180-DAY WAIT PERIOD FOR HIRING A RETIREE (ISRAEL)

8. CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND CAREER INCENTIVE PROGRAMS

9. CONSIDER APPROVAL OF CONTRACT FOR AUDITING SERVICES FOR FY 14/15

10. STAFF MEMBER COMMENTS

11. COMMITTEE MEMBER COMMENTS

12. ADJOURNMENT

PRESENT: Budget/Personnel Committee

Rudy Fischer, Chair Dennis Allion

DRAFT

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 2 of 8 Peter Le

ABSENT:

Gloria De La Rosa

PRESENT: MRWPCA Staff:

Keith Israel Rob Wellington Paul A. Sciuto

General Manager Legal Counsel Director of O&M/Deputy GM

Tori Hannah Chief Financial Officer

Cheryl Rogers Administrative Support Specialist

Leara Sampson HR Administrator

Jerry Valladao Associate Engineer

Chayito Ibarra Executive Assistant

OTHERS PRESENT:

3. PUBLIC COMMENTS At 11:02 am, Chair Fischer called for Public Comments; none received.

4. APPROVE APRIL 10, 2015 BPC MINUTES

Chair Fischer stated that the April 10, 2015 draft BPC minutes were presented to the BPC for their approval.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Mr. Le, the Budget/Personnel Committee unanimously approved the April 10, 2015 BPC Minutes. [Yes: Fischer, Allion, Le] [Absent: De La Rosa] 5. UPDATE ON FY 15/16 BUDGET

Ms. Hannah provided the BPC with an update on the FY 15/16 Budget which included a preliminary draft of the FY 15/16 operational revenues and expenditures. She explained that the estimated net operating difference of $3.5 million is planned to be allocated among significant maintenance projects, capital equipment, and capital projects. She noted that the General Fund reserve level is projected to be above the $2 million reserve policy requirement. With regards to operating revenues, Ms. Hannah explained that the FY 15/16 revenues are initially projected to be 5.7% or $1.27 million greater than the FY 14/15 approved budget. She noted that the Agency is in the second year of a three-year rate increase, with residential user rates increasing by 3.4%. Ms. Hannah noted that residential and commercial user fees account for over 86% of Agency revenues and provided a copy of the FY 15/16 user fees by category to the BPC. Mr. Fischer stated that the user fees by category handout had 33 categories, with 86% of the funds coming from two categories. He asked if staff

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 3 of 8

could reduce the number of categories listed. Mr. Israel stated that it was his understanding that the Customer Service Department has State information that supports each category and therefore they could not be reduced. Mr. Le asked if each unit of measure was per restaurant or per square foot. Mr. Sciuto stated that the “unit of measure” varies by category and should be listed for each such as per room for hotels, per seat for a restaurant, and per bed for a hospital. He stated that the form would be revised to include the unit of measure. Mr. Allion asked if the Board had the option of not implementing the approved residential user rate increase of 3.4%. Mr. Sciuto stated that the Board could vote to increase the rate by a lower amount up to the approved rate of 3.4%. With regards to operating expenditures, Ms. Hannah went over the key changes which include a negotiated 3.4% cost of living increase and an unplanned PERS rate increase. The PERS rate growth for classic Tier 1 employees includes a new fixed base and a percentage rate that results in a combined increase of greater than 4%. She noted that these two changes represent approximately a 5.7% or $540,000 increase in wages and benefits. Mr. Sciuto went over the minor modifications to staffing levels which include an addition of one summer intern in the Engineering and Safety Departments. He stated that the budget impact for FY 15/16 for the summer intern will be $6,500. He added that another staffing change includes making the Contract Recycled Water Program Assistant position a regular, full-time employee with a title change to Water Projects Coordinator. This position will have an emphasis on public outreach and grant coordination/legislative advocacy with an associated change in job description. The impact on the FY 15/16 budget will be an additional $25,000 for benefits and most costs will continue to be funded from UR502 and CP255. Mr. Sciuto also noted the proposed structural change to the organization to have the Chief Financial Officer and the Human Resources Administrator report directly to the General Manager. He explained that this change will allow more direct information transfer in these two areas to the General Manager. He added that the reduction of scope of employees for the new Assistant General Manager will promote more focus on Operations, Maintenance and Engineering. Mr. Le asked if additional solar facilities would be constructed. Mr. Sciuto answered that this would be evaluated as part of the energy management study. Ms. Hannah stated that preliminary estimates indicate that there will be approximately $3.5 million in operating transfers and $600,000 in Sewer Capacity Charges available for capital improvements and purchases. She explained that staff is in the process of reviewing major expenditure requests that could be

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 4 of 8

applicable to the Major Operation and Maintenance, Capital Equipment, Capital Projects, and Urban Reclamation Funds. Ms. Hannah stated that staff will continue to refine the preliminary estimates and based on the input received from the BPC, staff will prepare the full budget for the Budget Workshop on June 8.

Information Only – No action is required.

6. CONSIDER AWARD OF CONSTRUCTION CONTRACT FOR THE GRIT PIPING

REPLACEMENT PROJECT Mr. Valladao explained that grit removal from wastewater is essential to any treatment plant as a preliminary treatment process to protect the equipment. Grit removal reduces the likelihood of pipes clogging and preventing wear and tear to mechanical equipment from grit abrasion. Two aerated grit chambers are used to settle grit from wastewater at MRWPCA’s Regional Treatment Plant (RTP). He stated that the grit piping that discharges the grit slurry to the grit mitts is in need of repair and was not budgeted for FY 14/15. He noted that much of the piping is original piping that was installed when the RTP was constructed back in the 1980’s. The piping is in poor condition and has deteriorated to a point where a portion of the piping failed last year due to corrosion, resulting in flooding of the grit pump pit. Mr. Valladao provided the BPC with photos that showed the flooded grit pump. He added that the amount of wastewater that flowed into the grit pump overwhelmed the existing sump pumps. Staff determined that it was time to replace the piping with new glass lined ductile iron piping, change the alignment slightly to reduce the amount of bends, and install additional pipe supports. In response to questions from the Committee, staff outlined the advantages of glass lined piping for this application. Mr. Valladao stated that the project was put out to bid on March 5 and on March 26, five bids were received. The successful bid was received from Special Service Contractors, Inc. for a total of $107,114. Mr. Valladao noted that Special Service Contractors comes highly recommended by all of the agencies that were contacted during their reference check. Mr. Valladao stated that staff is recommending that project construction begin as soon as possible to prevent any future flooding and provide a safer environment for Maintenance and Operations personnel when working in the grit pump pit. He explained that if approval is granted to begin the project in early June, some submittal review will occur during this FY 14/15, estimated at approximately $3,000. The piping, fittings, and supports will be obtained and actual project construction will occur during FY 15/16.

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 5 of 8

At the request of the BPC, Mr. Valladao explained how the pump pit works.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Mr. Le, the Budget/Personnel Committee recommends that the Board approve a construction contract with Special Service Contractors in an amount of $107,114 with an additional $32,000 for in-house staff time and approval to begin the project in early June prior to approving the FY 15/16 budget at the June 29, 2015 Board meeting. The majority of the construction will occur during FY 15/16 and will have a project budget of $140,000. [Yes: Fischer, Le, Allion] [Absent: De La Rosa] 7. CONSIDER APPROVAL OF RESOLUTION FOR EXCEPTION TO THE 180-

DAY WAIT PERIOD FOR HIRING A RETIREE (ISRAEL) Mr. Sciuto stated that Mr. Israel’s last day of employment with the Agency will be June 20, 2015 and effective June 21, 2015 he will be considered a CalPERS retiree. He explained that in 2012, Assembly Bill No. 340 was signed by the Governor which added various sections to the California Government Code. These modifications are generally referred to as the Public Employee Pension Reform Act (PEPRA). One of the provisions prohibits a retiree from being employed for a period of 180 days following retirement. Mr. Sciuto stated that there are exceptions to the 180-day waiting period rule. One of those exceptions allows an employer to employ a recent retiree before the expiration of 180 days if the employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position. The appointment must also be approved by the governing body in a public meeting and may not be placed on the consent agenda. Mr. Sciuto stated that Mr. Israel possesses invaluable knowledge of the history of the Agency and the Groundwater Replenishment (GWR) Project that may be needed to assist with the completion of the project. Staff is proposing employment of Mr. Israel as a retired annuitant to assist in the critical issues of the GWR Project on a limited, part-time, hourly basis. Prior to any work being performed by Mr. Israel, it will be approved by the General Manager and the Chair of the Board of Directors. Mr. Sciuto stated that the Agency is proposing paying Mr. Israel $60 an hour, with no benefits, to fill the GWR Associate Project Coordinator position on an as needed basis through June 30, 2016. The workload is expected to be between 0 and 24 hours per month, depending upon specific needs. Mr. Le asked if a renewable clause could be added to allow extending Mr. Israel’s agreement past one year, if necessary. Mr. Sciuto answered that a

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 6 of 8

renewable clause would not be necessary because this provision only applies to the 180 days following retirement.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Mr. Le, the Budget/Personnel Committee unanimously recommends that the Board approve MRWPCA Resolution No. 2015-XX, for exception to the 180-day wait period hiring of a Retiree, Keith Israel. [Yes: Fischer, Allion, Le] [Absent: De La Rosa] 8. CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND CAREER

INCENTIVE PROGRAMS Mr. Sciuto stated that that BPC Committee received an update regarding the Employee Certification and Career Incentive Programs at the April meeting. He reminded the Committee that the Certification Incentive Program includes positions that require a certain level of certification and the Career Incentive Program includes those employees pursuing the educational track. In response to the question asked by Mr. Allion at the April BPC meeting, Mr. Sciuto stated that the cost of implementing the programs for FY 14/15 is approximately $27,500, and the cost for FY 15/16 is approximately $48,500.

At the request of Mr. Sciuto, Ms. Sampson provided the BPC with some of the concerns that the Employee Groups had regarding the proposed programs. She stated that one of the major concerns expressed by the GEA, Mid-Management, and Management Employee Groups was that a CWEA Certification at the Grade III and Grade IV level is only eligible to receive a 2% increase while an SWRCB certification at Grade IV receives a 2.5% increase and a Grade V receives a 3.5% increase. The Employee Groups were not happy that the SWRCB certifications for the Operators Group allowed for a higher increase. Staff was able to justify the higher increase because the SWRCB certification is a requirement of the State, while the CWEA certification is not.

In response to Mr. Allion’s question, Ms. Sampson stated that she has compiled a spreadsheet that lists which employees currently have certifications and degrees. Mr. Allion suggested that staff include this baseline information as part of the presentation to the Board.

In answering Mr. Le’s question, Ms. Sampson stated that the Career Incentive Program only applies to employees who have exceeded the educational level required for their current position. As an example, she stated that if an employee has a BA/BS degree and their position requires a BA/BS degree the employee would not be eligible to receive the 2% increase for having that degree but would qualify for the 2% increase if they held a MA/MS degree.

Mr. Sciuto, in answering Mr. Le’s question, stated that employees could only choose one program to follow, either the Certification Incentive Program or the

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 7 of 8

Career Incentive Program. He noted that this information is outlined in the procedure policy for both programs.

Mr. Le suggested that a Doctor of Philosophy Degree (PhD) be included in the Career Incentive Program.

Mr. Sciuto reminded the BPC that if the proposed programs are approved by the Board, any monetary compensation would be retroactive to January 1, 2015, per the MOU.

Mr. Allion expressed support for approving the Employee Certification and Career Incentive Program as currently written. He stated that he was not eager to include a PHD in the career incentive program, but this could be revisited at a later date.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Mr. Le, the Budget/Personnel Committee recommends that the Board approve the Certification Incentive Program and Career Incentive Program [Yes: Fischer, Allion, Le] [Absent: De La Rosa]

9. CONSIDER APPROVAL OF CONTRACT FOR AUDITING SERVICES FOR FY 14/15 Ms. Hannah stated that on February 23, 2015, the Board approved issuing a Request for Proposal (RFP) for Auditing Services. Notices Inviting Proposals were published in the Salinas Californian newspaper and Request for Proposals (RFP) were mailed to several firms that were recommended as part of an Agency-initiated California Society of Municipal Finance Officer (CSMFO) survey. The deadline to submit proposals was April 6, 2015 and the Agency received proposals from 13 highly qualified firms, including a proposal from the Agency’s prior auditor, Charles Z. Fedak & Company. Ms. Hannah stated that based on experience, staffing, audit approach, CSMFO surveys, and distinguishing qualities, staff selected five firms for the final interview. One of the firms selected, Brown, Armstrong, CPA’s declined the interview and the following four firms participated in the final selection process: 1) Lance, Soll & Lunghard LLP 2) Maze & Associates 3) Mun CPA’s and 4) Vavrinek, Trine, Day & Company (VTD). Ms. Hannah stated that the firms were interviewed by a panel consisting of the Agency’s Chief Financial Officer, Accountant, Customer Service Supervisor, and Accounting Assistant II. The panel recommended the selection of Lance, Soll, & Lunghard (LSL), LLP. Ms. Hannah provided the BPC with LSL’s background which included over 80 years of experience providing auditing services to local governments. Staff also felt that LSL’s experience with working with the Orange

BUDGET/PERSONNEL COMMITTEE DRAFT May 8, 2015 Page 8 of 8

County Water District could be beneficial in assisting the Agency with implementation of any accounting system related to the GWR Project. Ms. Hannah stated that the proposed contract with LSL for FY 14/15 audit is $33,120, if the Agency chooses to renew for two additional years, the audit costs would be $33,785 and $34,450, respectively. These amounts reflect the cost of the financial audit, State Controller’s Report, and CAFR. In response to Mr. Le’s question, Ms. Hannah stated that if the firm exceeded the maximum 250 hours allowed in the contract we would not be responsible for paying the difference as this is a not to exceed contract. Mr. Israel stated that when he first started working for the Agency we paid $50K for an audit. He added that to see the cost of the audit decrease is incredible and shows that this business is very competitive.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Mr. Le, the Budget/Personnel Committee recommends that the Board contract with Lance, Soll, and Lunghard for FY 2014/15 Auditing Services at an initial cost of $33,120 with the understanding that with satisfactory performance, the engagement would be renewed annually for the subsequent two to four years.

10. STAFF MEMBER COMMENTS (None)

11. COMMITTEE MEMBER COMMENTS (None) At the request of Mr. Allion, Mr. Sciuto gave a brief update to the BPC regarding the grants that staff is pursuing for the GWR Project. Mr. Allion suggested that it could be a good investment for staff to look into hiring a consultant to pursue grants. Mr. Le stated that he would not be attending the June 8 Budget Workshop and would ask his alternate to attend.

12. ADJOURNMENT At 12:24 pm, with no further business, Chair Fischer adjourned the

Budget/Personnel Committee meeting to the next regularly scheduled Budget/Personnel Committee meeting on Friday, June 12, 2015 at 12:30 pm.

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: PAUL SCIUTO, DEPUTY GENERAL MANAGER

(Via Keith Israel, General Manager) DATE: JUNE 12, 2015 SUBJECT: UPDATE ON ASSISTANT GENERAL MANAGER RECRUITMENT

BACKGROUND: On May 6th, the Assistant General Manager position was advertised on various websites. CPS HR staff began their outreach to potential candidates for the position as well. The position closed June 8th, at which time Pam Derby, Senior Consultant from CPS HR, began screening the applicants. Once the screening process has been completed, Ms. Derby will identify candidates that she feels are a fit for the position based on the position description. Ms. Derby will meet with staff to discuss the applicants and staff will decide which will move forward in the interview process. Attached is a tentative schedule (Attachment A) which lays out the next steps in the process.

Information only – no action needed Attachment A: MRWPCA Tentative Assistant General Manager Recruitment Schedule.

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY ASSISTANT GENERAL MANAGER

TENTATIVE RECRUITMENT SCHEDULE Anticipated Anticipated Task Completion Date 1. MARKETING: - Ads Appear 5/6 – 6/8 - Print brochure 5/8

- Distribute brochure / letters to potential candidates 5/13 and referral sources

- Follow-up contacts 5/18 – 6/8

2. Filing date 6/8 3. Candidate screening: - Resume review Ongoing - Screening interviews 6/15 5. Deliver report; GM selects finalists 6/19 6. Agency interviews finalists 6/26 7. Reference/Background checks conducted 5-7 days following

8. Follow-up interviews with top finalists Week of 7/6 9. Appointment Announced Week of 7/6

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: TORI HANNAH, CHIEF FINANCIAL OFFICER

(Via Keith Israel, General Manager) DATE: JUNE 12, 2015 SUBJECT: FOLLOW-UP REPORT FROM JUNE 8, 2015 BUDGET

WORKSHOP

BACKGROUND: The Proposed FY 15/16 Budget was presented at the Agency’s Budget Workshop on June 8, 2015. During that presentation, the Board was also provided with a financial update which included an overview of the Agency’s debt, investments, and reserves. The Agency’s combined General Fund and Capital Equipment Reserve levels were projected to be $2.6 million at the end of FY 15/16, which is within $100,000 of their minimum Policy level. Staff also discussed reevaluating the Agency’s investment strategy due to recent volatility in the intermediate government bond market. The Board concurred that we should have further discussions on these topics. Consequently, staff will prepare a detailed discussion of these topics for consideration at either the July or August Budget and Personnel Committee Meeting.

INVESTMENT UPDATE: On June 4, 2015, the Agency’s Investment portfolio with Union Bank was valued at $4.5 million. Due to recent and historical volatility associated with the Agency’s intermediate government bond market, staff requested the transfer of the invested funds to the Agency’s regular Union Bank Operating account. This will provide an opportunity to review different investment strategies, while also preserving the Agency’s funds. During this evaluation period, the funds will be placed in a low-risk interest bearing account with the Local Agency Investment

BUDGET/PERSONNEL COMMITTEE FOLLOW-UP REPORT FROM JUNE 8, 2015 BUDGET WORKSHOP June 12, 2015 Page 2 of 2 Fund; or in the Agency’s Union Bank Savings or Money Market account. Prospective strategies that will be reviewed with the BPC include retaining funds in the Local Agency Investment Fund (LAIF), issuing a Request for Proposal for investment management services, participating in the Monterey County Investment Pool; or the purchase of CD’s or other low risk instruments.

Information only – no action required.

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: PAUL SCIUTO, DEPUTY GENERAL MANAGER

(Via Keith Israel, General Manager) DATE: MAY 8, 2015 SUBJECT: CONSIDER APPROVAL OF PAID SICK LEAVE POLICY

PURSUANT TO AB 1522 FOR PART-TIME EMPLOYEES

BACKGROUND: On September 10, 2014, Governor Brown signed into law the Healthy Workplaces, Healthy Families Act of 2014 (AB 1522) that provides three (3) days of paid sick leave for eligible employees beginning July 1, 2015. Effective January 1, 2015 employers were required to post information about AB 1522, which the Agency has done, but the paid sick leave provisions do not go into effect until July 1, 2015. AB 1522 sets forth the conditions and purposes for which paid sick leave is to be paid and accrued. AB 1522 allows the employer to choose between two accrual methods and sets a minimum usage for paid sick leave that does not exceed two (2) hours. Agency part-time employees are not covered by any collective bargaining agreement or benefits policy. As such, these employees are subject to the provisions of AB 1522. All other employees of the Agency are covered under a collective bargaining agreement or benefits policy that exceeds the minimum requirements of AB 1522 paid sick leave and are, therefore, not subject to AB 1522. The law requires employers to provide paid sick leave to assist employees who miss work due to their own illness or medical appointments or an illness or medical appointment of a qualified family member during their employment. Under the proposed method of implementing this benefit, part-time employees

BUDGET/PERSONNEL COMMITTEE CONSIDER APPROVAL OF PAID SICK LEAVE POLICY PURSUANT TO AB 1522 FOR PART-TIME EMPLOYEES June 12, 2015 Page 2 of 2 will accrue one hour of paid sick leave for every 30 hours worked. Accrual begins on the first day of employment or after July 1, 2015, whichever is later. An employee is not eligible to begin using any accrued paid sick leave until after 90 days of employment with the Agency. An employee is only allowed to use up to a maximum of three (3) days or 24 hours, whichever is greater, of paid sick leave in a 12-month period. The employee can only accrue paid sick leave up to a cap of six (6) days or 48 hours, whichever is greater, ongoing. Sick leave does not accrue once the cap is reached, but accrual begins when the accrued sick leave drops below the cap. Any unused accrued paid sick leave carries over year to year while continuously employed. If an employee separates from employment and is re-hired within one year of the date of separation, previously accrued and unused paid sick leave hours shall be reinstated. However, if a re-hired employee had not yet worked the required 90 days of employment to use the paid sick leave at the time of separation, the employee must still satisfy the 90 days of employment requirement collectively over the periods of employment with the Agency before any paid sick leave can be used. The financial impact of implementing AB 1522 is unknown at this time, but because we have so few part-time employees, it will be minimal. RECOMMENDATION: Staff requests that the Budget and Personnel Committee recommend that the Board approve the Paid Sick Leave Policy (attached) pursuant to AB 1522 for part-time employees and establishing the accrual method and minimum paid sick leave usage increment. Attachment A: MRWPCA Policy/Procedure for Sick Leave for Part Time

Employees

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

SICK LEAVE- No. 611.1

PART-TIME EMPLOYEES Effective Date: July 1, 2015

Revision Date:

Page: 1 of 1

Part-time employees, including interns, will accrue one (1) hour of Paid Sick Leave (PSL) for

every 30 hours worked up to a maximum of 24 hours per anniversary year. Employees can

carryover a maximum of 48 hours of PSL per fiscal year. Employees will be entitled to use

accrued paid sick time after being employed for 90 business days. Paid sick leave has to be taken

in increments of not less than two (2) hours at a time.

Sick time benefits are available and payable only in the case of medical or doctor appointments,

your own actual illness or injury, or the actual illness or injury of your family member. “Family

member” means any of the following:

A child, which for purposes of this article means a biological, adopted, or foster child,

stepchild, legal ward, or a child to whom the employee stands in loco parentis. This

definition of a child is applicable regardless of age or dependency status.

A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or

the employee’s spouse or registered domestic partner, or a person who stood in loco

parentis when the employee was a minor child.

A spouse.

A registered domestic partner.

A grandparent.

A grandchild.

A sibling.

If an employee is the victim of domestic violence, sexual assault, or stalking, they are also

allowed to use PSL for their time away from work.

For questions regarding this policy, contact Human Resources.

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: JAMES COLEMAN, SAFETY OFFICER (Via Keith Israel, General Manager) DATE: JUNE 12, 2015 SUBJECT: UPDATE ON OCCUPATIONAL SAFETY & HEALTH

ADMINISTRATION (CAL-OSHA) INSPECTIONS ────────────────────────────────────────────────── BACKGROUND: Cal-OSHA was notified by an MRWPCA employee-driven phone complaint in August 2014 of process concerns, not safety issues, that resulted in a three-day site inspection of the Regional Treatment Plant. Specific documentation requested at that time included maintenance records, drawings, and safety documentation. Sixteen individual citations were received, as a result of the inspection with penalties totaling $7,810. Staff contested some of the citations in an Informal Conference by phone with the Cal-OSHA supervisor; and, four penalties totaling $2,145 were stricken from the original 16, bringing the total to $5,665 owed to Cal-OSHA. It should be noted that all of the citations received were in the category of “Non-serious”, “Regulatory”, or “General” with individual fines ranging from $0 to $975. Though any citation and penalty payment is taken very seriously by the Agency, the attached excerpt from the “Cal-OSHA User’s Guide” puts the types of citations and amount of penalties into perspective. When the Citations were delivered to Agency staff on March 3, 2015, the Cal-OSHA inspector stated that there had been another phone complaint received specifically for process concerns regarding the Chlorine Scrubber System and the Agency-owned Pump Stations. Follow-up inspections with the Cal-OSHA inspector were completed on May 21 and more documentation was requested

BUDGET/PERSONNEL COMMITTEE UPDATE ON OCCUPATIONAL SAFETY & HEALTH ADMINISTRATION (CAL-OSHA) INSPECTIONS June 12, 2015 Page 2 of 2 and provided. No Citations have been received as the result of the second phone complaint and inspections at this time. There will be another Cal-OSHA inspection on June 17, 2015.

Information only – no action required.

Attachment A: Excerpt from Cal-OSHA user guide for “Types of citations and

penalties” Attachment B: Cal-OSHA Inspection Information

Types of Citations & Penalties 10

During an inspection, the Cal/OSHA enforcement engineer or industrial hygienist may issue any of the following:

Notice – issued in lieu of a citation, when the violation does not directly or immediately affect the health and safety of employees, and is general or regulatory in nature.

Special Order - written to abate a hazard for which there is no existing standard. It is considered an order to correct and has the same effect as any standard, though it applies only to the place of employment described in the Special Order.

Order to Take Special Action - issued where a safety order exists, either stating that Cal/OSHA may require an employer to take certain action if circumstances warrant, or prescribing a specific manner in which the employer must comply with the safety order.

Information Memorandum - issued where a condition exists that has the potential to become hazardous in the future.

Citation - written for a violation which affects the safety or health of employees. Citations may be issued for: • A regulatory violation, cited when an employer fails

to comply with record keeping, posting or permit requirements.

• A general violation, cited when an accident or occupational illness resulting from violation of a standard would probably not cause death or serious physical harm, but would have a direct or immediate relationship to the safety or health of employees.

• A serious violation, cited where there is substantial probability that death or serious physical harm could result from a condition which exists—or from practices, operations or processes at the workplace.

• A willful violation, where evidence shows that the employer committed an intentional and knowing violation—as distinguished from inadvertent or accidental or ordinarily negligent—and the employer is conscious of the fact that what they are doing constitutes a violation, or is aware that a hazardous condition exists and no reasonable effort was made to eliminate the hazard.

• A repeat violation, when a recurrence of the previously cited standard, regulation, order, or condition is found within three years of the previous violation becoming a final order. Repeat violations differ from willful violations in that they may result from an inadvertent, accidental or ordinarily

negligent act. If a repeat violation is also willful, a citation for willful violation is issued.

Failure-to-Abate - issued when an employer has not abated a condition previously cited by Cal/OSHA. If an employer has not corrected an alleged violation for which a citation has been issued, the violation is classified as failure-to-abate serious or general.

—Penalties—

Civil penalties - issued for cited violations and failure to abate a violation. Effective January 1, 2000, government agencies are no longer exempt from civil penalties, including penalties for failure to abate. Penalties of up to $15,000 per day may be proposed for each failure to correct a violation by the abatement date shown on the citation. An employer who receives a citation for a serious violation may be assessed a civil penalty of up to $25,000 for that violation. Penalties for general and regulatory violations may be assessed up to $7,000 for each violation. A penalty of not less than $5,000 and not more than $70,000 may be assessed an employer who willfully violates any occupational safety and health standard or order. The maximum civil penalty that can be assessed for each repeat violation is $70,000. Criminal penalties - A willful violation that causes death or permanent or prolonged impairment of the body of any employee results, upon conviction, in a fine of up to $250,000 or imprisonment up to three years, or both— and if the employer is a corporation or limited liability company, the fine may not exceed $1.5 million. Anyone convicted of making a false statement or certification on records or other documents required under the Cal/OSHA program is subject to a fine of up to $70,000 or imprisonment up to six months, or both. The law also contains misdemeanor provisions relating to matters such as knowingly or negligently violating a workplace safety and health regulation, repeatedly violating a regulation, or refusing to comply with a regulation, and thereby creating an employee hazard. Criminal penalties are enforced by the local district attorney.

Cal-OSHA inspection Information

Citation Item #

Citation Description Action Completed

Proposed Penalty

Actual Penalty

1 Adding Process Safety Management (PSM) to the MRWPCA IIPP

Added PSM to the IIPP $0.00 $0.00

2 Missing Permit Required Confined Space Sign Added Sign to Tank $325.00 $325.00

3 Older style rebar caps on SVRP holding pond (Cal-OSHA withdrew penalty from informal conference)

Replaced with new $160.00 0.00

4 Shelving in Maint. Shop was too close to elec. panel (within 36 in.)

Removed shelving $365.00 $365.00

5 instance 1

No specific SOP for working on or around digesters SOP’s were updated to reflect using specific

procedures

$487.50 $487.50

5 Instance 2

No specific SOP for working on or around Cogen Areas with ARC Flash Hazards

Temp. Procedures were put into place

$487.50 $487.50

6 The roof access ladder in the lab did not have a safety chain or guard.

Installed Safety Chain $240.00 $240.00

7 Instance 1

No Safety Chain on Scrubber Installed Safety Chain $487.50 $487.50

7 Instance 2

No Safety Chain on Chemical Tank Installed Safety Chain

$487.50 $487.50

Cal-OSHA Inspection Information

Citation Item #

Citation Description Action Completed

Proposed Penalty

Actual Penalty

8 Drill Press not mounted to floor Mounted to floor

$240.00 $240.00

9 Life Rings not installed at storm pond Installed $485.00 $485.00

10 Grinder wheel guard was not spaced properly 1/8” (Cal-OSHA withdrew penalty from informal conference)

Adjusted $485.00 $0.00

11 Grinder wheel was not spaced properly between tongue and wheel

Adjusted

$485.00 $485.00

12

Metering Pump guard had too much open space (Cal-OSHA withdrew penalty from informal conference)

Adjusted $810.00 $0.00

13 Maint. Shop Welding cylinders both were permanently mounted to wall

Moved to rolling cart

$810.00 $810.00

14 4 instances of restrictive flows was noted with Emergency Eye units

Replaced or Flushed out

units

$810.00 $810.00

15 Cal-OSHA stated Documentation was not provided for changing out Chlorine Cylinders (Cal-OSHA withdrew penalty from informal conference)

Explained where

document was in the O&M

$485.00 $0.00

16 Flammable storage cabinet in the Lab failed to close properly

Replaced Cabinet

$160.00 $160.00

Cal-OSHA Inspection Information

Total amount for the Cal-OSHA Citations from the August 2014 phone complaint and Site Inspection

$7,810

Total amount saved after Informal phone conference

$2,145.00

Total amount due to Cal-OSHA $5,665.00

Cal-OSHA’s request for more documentation and facility inspections at the Chlorine Scrubber and Agency-Owned Pump Stations has resulted in a conference scheduled by the Cal-OSHA inspector for Wednesday June 17 at the RTP. The following employees are scheduled to attend:

Paul Sciuto MRWPCA DGM James Coleman MRWPCA Safety Officer Jennifer Gonzalez Engineering Manager Jason Sinkler Operations Supervisor Jarod Levine Operator