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Board Packet Page 1 of 162 BOARD OF DIRECTORS Sofia Pereira, City of Arcata, Elaine Hogan, City of Blue Lake Leslie Castellano, City of Eureka Michael Sweeney, City of Ferndale, Chair Rex Bohn, County of Humboldt Frank Wilson, City of Rio Dell, Vice Chair Agenda Thursday, March 12, 2020 at 5:30 PM Eureka City Council Chambers 531 K Street, Eureka, CA Copies Available: Copies of the agenda materials are available electronically via the internet at www.hwma.net, through individual HWMA member agencies or by calling HWMA at 707-268-8680. There may be a charge for copies. Accessibility: Accommodations and access to HWMA meetings for people with special needs must be requested in advance of the meeting at 707 268-8680. (The Eureka City Council Chamber room is ADA accessible.) This agenda and other materials are available in alternative formats upon request. 1. Call to Order and Roll Call at 5:30 PM 2. Consent Calendar All matters listed under the Consent Calendar are considered to be routine by the HWMA Board and will be enacted upon by one motion, unless a specific request for review is made by a Board Member or a member of the public. The Consent Calendar will not be read. There will be no separate discussion of these items unless pulled for discussion. a. Approve Minutes from the January 9, 2020 HWMA Board of Directors Meeting b. Approve December 2019 Financial Report c. Approve January 2020 Financial Report d. Approve Amendment Number 1 Between HWMA and Eel River Recology for Loading Services Agreement e. Approve Change of Merchant Services Provider for HWMA Credit Card Transactions f. Approve Resolution 2020-06 and Authorize the Executive Director to Execute an Agreement with Voya Financial to Implement the CalPERS Supplemental Income Deferred Compensation 457 Plan. 3. Oral and Written Communications This time is provided for people to address the Board or to submit written communications concerning matters not on this agenda. Board Members may respond to statements, but any request that requires Board action will be referred to staff for review. Reasonable time limits may be imposed on both the total amount of time allocated for this item, and on the time permitted to each individual speaker. Such time allotment or portion thereof shall not be transferred to other speakers. 4. Receive Presentation on North Coast Recycling Market Development Zone Activities for FY 2019-20 5. Receive and Approve the Classification and Compensation Study Results 6. Board Member Reports 7. Executive Director’s Report 8. Adjourn March 12, 2020 Printed on Recycled Paper Page 2 of 162 March 12, 2020 Printed on Recycled Paper Page 3 of 162 BOARD OF DIRECTORS Sofia Pereira, City of Arcata Frank Wilson, City of Rio Dell, Vice-Chair Leslie Castellano, City of Eureka HUMBOLDT WASTE Elaine Hogan, City of Blue Lake MANAGEMENT AUTHORITY Michael Sweeney, City of Ferndale, Chair Rex Bohn, County of Humboldt Minutes Thursday, January 9, 2020 at 5:30 PM Eureka City Council Chambers 531 K Street, Eureka, CA Present: Michael Sweeney, Sofia Pereira, Frank Wilson, Rex Bohn, Elaine Hogan Absent: Leslie Castellano Staff: Jill Duffy, Tyler Egerer, Eric Keller-Heckman Legal Counsel: Nancy Diamond 1. Call to Order and Roll Call at 5:30 PM Chairman Sweeney called the meeting to order at 5:30 p.m. A quorum was present and acting. 2. Consent Calendar a. Approve Minutes from the November 14, 2019 HWMA Board of Directors Meeting b. Financial Reports for First Quarter FY 2019-20 c. Financial Reports for October 2019 d. Financial Reports for November 2019 e. Approve Amendment No. 3 to Agreement between HWMA and Executive Director Jill Duffy Chairman Sweeney opened the floor to public comment regarding the Consent Calendar. No comment was received. Chairman Sweeney closed the floor to public comment. Motion: Director Pereira moved and Director Wilson seconded the motion to approve the Consent Calendar. Action: Approve the Motion as made by Director Pereira and seconded by Director Wilson by the following vote: Ayes: Sweeney, Pereira, Wilson, Hogan, Bohn Nays: None Absent: Castellano 3. Oral and Written Communications Chairman Sweeney opened the floor to public comment regarding items not on the Agenda. No comment was received. Chairman Sweeney closed the floor to public comment. 4. Receive Presentation Outlining Independent Auditor’s Report for Fiscal Year 2018- 2019 to be Filed with Authority Archives, State Comptroller, and required Financial Institutions Executive Directory Duffy presented the Independent Auditor’s Report with commentary from Director of Finance and Administrative Services Egerer. Chairman Sweeney opened the floor to public comment regarding the Independent Auditor’s Report. No comment was received. Chairman Sweeney closed the floor to public comment. March 12, 2020 Printed on Recycled Paper Page 4 of 162 5. Fiscal Year 2019-20 Mid-Year Review; Receive Report and Approve Recommended Adjustments. Chairman Sweeney opened the floor to public comment regarding the Mid-Year Review. No comment was received. Chairman Sweeney closed the floor to public comment. Motion: Director Pereira moved and Director Hogan seconded the motion to approve the Consent Calendar. Action: Approve the Motion as made by Director Pereira and seconded by Director Hogan by the following vote: Ayes: Sweeney, Pereira, Wilson, Hogan, Bohn Nays: None Absent: Castellano 6. Receive Curbside Recycling Presentation by Linda Wise, Recology- Humboldt General Manager Chairman Sweeney opened the floor to public comment regarding the presentation by Linda Wise. Comment was received by the following members of the public: Maggie Gainer, of Zero Waste Humboldt, requested clarification on slide 13 of the presentation materials, regarding plastic; the purpose of the slide was to highlight problems of material distribution, not problems with management of the material itself. Chairman Sweeney closed the floor to public comment. 7. Board Member Reports There were no board member reports. 8. Executive Director’s Report Director of Operations Keller-Heckman provided information on the new materials reuse policy in effect at the Hazardous Waste facility. 9. Adjourn Chairman Sweeney adjourned the meeting at 6:43 p.m. Next Meeting: March 12, 2020 at 5:30 p.m. at Eureka City Hall Council Chambers March 12, 2020 Printed on Recycled Paper Page 5 of 162 HUMBOLDT WASTE MANAGEMENT AUTHORITY Staff Report DATE: March 12, 2020 FROM: Tyler Egerer, Director of Finance and Administrative Services SUBJECT: Item 2b) Receive December 2019 Financial Reports RECOMMENDED ACTION: Review and Approve Review and Approve December 2019 Financial Reports. DISCUSSION: Each month, staff presents an update on the Authority’s financials based on activity to-date for the period two months prior to the current month. This enables staff to provide a complete presentation of the full financial activity for that period, as financial data will have been recorded and finalized for the reporting period at that point. Each year, pending the finalization of the Authority’s financial audit, these financial reports are presented as preliminary financial reports. Once the audit is finalized and staff closes out the prior year, information presented will represent accurate to-date financial activity and will be marked as such. Attachment B, Statement of Operations for Period Ending 12/31/2019 is presented in summary format; detailed analysis of each division of the Authority is available by request for those interested in division performance. Highlights of Fiscal Year 2019-20 activity to date include: a) Consistently strong activity through all divisions is resulting in increased revenue and expenses over initial budget estimates, as additional tonnage produces not only more revenue, but more disposal expenses. b) The Authority’s net deficit continues to decline thanks mostly to efforts by Authority staff to reduce day-to-day costs and continue to improve efficiency throughout all divisions. New employee time tracking software and other digitization efforts are reducing Authority-wide general expenses and increasing reporting accuracy to customers and vendors alike. The Authority’s cash position is comprised of two accounts; 1) the Authority’s checking account, which handles the day-to-day expenses; and 2) the savings account. The combined value of these accounts equals the total cash available for Authority reserves and operating cash. The current value of the Authority operating fund and combined reserve funds are as follows: March 12, 2020 Printed on Recycled Paper Page 6 of 162 HWMA Operating Fund: $1,883,152.25 HWMA Undesignated, Capital, Personnel, and Stabilization Funds: $2,061,670.00 Authority Financials: Attachments A and B contain detailed balance sheet and income statement (Statement of Operations) information for the December financial report, for Board review and discussion. An analysis of that information as it relates to revenues and expenses, and current month disbursements to vendors and employees, is provided herein. Revenues for December are performing Revenues through 12/31/19 approximately 14% over projections of budgeted estimates for Fiscal Year 2019-20. These estimates encapsulate all activity throughout the Tip Fees Authority, although finances will be influenced by future payouts for fees passed through to Diversion Member Agencies, revenue shares for salvaged materials sales, and the delayed receipt of grant CWP & Base revenues for grant-based projects. Rates Staff continue to monitor diversion programs in Other terms of not only cost, but self-sustaining viability. At present, all divisions are operating above budgeted estimates, and are fully funded from self-sustaining revenues or fees passed-through from Self-Haul, Franchise, and Satellite Facility tipping fees. Based on the above factors, and to facilitate long-term planning – relative to the Fiscal Year – for the Board and staff in decision making, the following estimation of growth for total revenues is provided below. The following graph tracks current, aggregate, monthly revenue activity against an annual trend line, generated from the previous five years of financial information.
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