HomeMy WebLinkAbout12 Board Roles and Duties Agenda Item # lei
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To: Board of Directors
From: Peter Holzmeister
Date: January 30, 2006
Subject: Clarification of Board and staff roles and duties
Why this matter is before the Board: This matter involves adopting a policy defining an allocation of
duties between the Board and staff. Only the Board can adopt such a policy.
History: During a recent Board workshop facilitated by Bob Rauch the Board expressed an interest in
removing routine items from the Board agenda so the Board could focus its attention on mission, long-
term goals, policy and monitoring results.
1. The discussion included recognition that the Board agenda is frequently crowded with routine
matters that can, with the right controls in place, be handled by staff.
2. There was also recognition that the Board's focus is the short term such that it has not been able
to spend time defining District mission, setting objectives, reviewing policy and monitoring results.
3. A matter that the Board did not directly discuss, but which we think is crucial to monitoring results,
is setting some customer service standards. This would be a Board job. As examples, the
District needs to discuss standards dealing with water pressure, water quality, response to leaks,
investment of funds, redundancy in water production, redundancy in electrical substations,
electric system protection.
4. A key point in the Board's discussion involved the Board's role in budget review and adoption.
The Directors expressed concern that when the budget is adopted they may not fully understand
how the budget relates to performance of tasks and projects. The Directors stated that if they
understood more of the details of the budget at the time of its adoption, they would be more
comfortable with granting authority to staff to proceed with implementation without routine action
from the Board
5. There was also recognition that staff needs to provide the Board with more meaningful periodic
reports so the Board can monitor results and make changes as necessary.
New information: The District management team and I have been discussing among ourselves these
matters for the past several months. We would like to offer the following thoughts for your consideration.
A. The various tasks that staff District performs can be thought of as falling into one of two types:
1. The first type are tasks that are performed each year, year in and year out, that are fundamental
to providing service to our customers. For example, we read meters, send out bills, collect j
money, account for cash receipts, pay invoices, connect new homes to the water and electric }
systems, test water quality, repair leaks, maintain vehicles, replace old poles, clear rights-of-way
and so on.
2. The second type of tasks is more discretionary and is somewhat different each year. For
example, we may develop a well in one year but not in the next year. We may construct a tank or
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a transmission pipeline in one year but in another year. We may change our call center in one
year but this is not routinely done. There are other examples, but those mentioned illustrate the
point.
B. Staff could present to the Board annual departmental work plans in narrative form that conform to the
adopted budget, and distinguish between the type-1 and type-2 tasks.
C. The Board has never thought it necessary to grant annual authority to staff to perform the type-1
tasks, but it is important for staff to report to the Board on their performance.
D. The type-2 tasks are a different matter. As has been discussed at Board meetings, simply adopting a
budget with funding for these projects should not be considered blanket approval for staff to proceed with
them. They need additional consideration by the Board. However, even here the Board could delegate
certain decisions related to type-2 tasks to staff. There are key points in the process of these projects
that the Board needs to decide. There are other more routine points in the process that could be
delegated to staff. Again, staff should report to the Board periodically on the implementation of these
type-2 projects.
E. Each year there are several significant matters that only the Board can discuss and decide. There
needs to be room on the Board's agenda schedule to deal with these matters each year. As an example,
following is a list of matters the Board may want to discuss during 2006:
1. Mission statement
2. Broadband
3. Public outreach program
4. Power supply
5. Brockway Road pipeline project
6. Water meter project
7. Policies regarding financing of development
8. Low income water and electric rate
9. Pipeline replacement project
10. Corporation Yard
11. Organization issues —succession plan
12. In-law units
13. Answering service
14. Finance master plan
15. Close out of Glenshire finances
16. Closeout of Donner Lake finances
F. We can envision Board adoption of an annual budget implementation resolution that:
1. Incorporates the narrative work plan of each department for routine tasks (type-1)
2. Incorporates the special projects (type-2) budgeted for the year with a specific time table of
actions and a definition of which points in the process need to be submitted to the Board for
action.
3. A definition of the monthly reports staff needs to submit to the Board so the Board can monitor
performance of type-1 and type-2 tasks.
Recommendation: This is a workshop item, so not formal action is suggested. However, I suggest the
Board and staff discuss these issues and provide me with feedback and direction on how you wish to
proceed. I will have additional information at the workshop to help discuss these matters.
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