The URL can be used to link to this page

Home My WebLink About2006-10-26Minutes of the Special Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting October 26, 2006 Page2 (7) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin did not give a report. (8) CONSENT CALENDAR ITEMS There were no items to consider (9) ACTION ITEMS There were no action items to consider. (10) INFORMATIONAL JTEMS a. -FAHR06-75 Retirement and benefits program review. Mr. John Bartel presented to the committee the benefits platform the Sanitation District is currently under contract obligation to provide its employees, as well as industry and public office benefits statistics. The Committee members had questions answered during this time with various scenarios and its financial impacts, as a way to compare and consider possible changes to the current benefits program. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY . There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETING DATES The next regular FAHR Committee meeting is scheduled for November 8, 2006, at 5 p.m. I ( " Minutes of the Special Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting October 26, 2006 Page 3 (15) ADJOURNMENT The Chair declared the meeting adjourned at 8:35 p.m. Submitted by: ~ ~ Lilia Kovac Committee Secretary H:\dept\agenda\FAHR\FAHR2006\102606 Benefits Meeting\102606 FAHR Minutes.doc BENEFIT SUMMARY Retiree Medical Hired < 7 /1/88 Hired> 7/1/88 • Basic Benefit ,.. Benefit • 2.5 months of medical premium • None for each year of District service ,., Contribution • 2006/07 Contribution:::::$ 450 thousand ,-Actuarial • 2006/07 ARC :::::$ 0.7 Million Report • Unfunded Actuarial Liability :::::$ 8.7 Million • May be understated • ARBA ,.. Benefit • $10 per month for each year of • $10 per month for each year of service service • Capped at $250 • Capped at $250 • Commences • When Basic Benefit Stops • At Retirement :, Contribution • Contribution Rate= 0.5% payroll Contribution Payments • 2006/07 :::::$ 230 thousand :::::$ 300 thousand :, Actuarial • 2006/07 ARC :::::$ 0.8 Million Report • Unfunded Actuarial Liability :::::$ 9.6 Million • May be understated ~ October 26, 2006 3 BENEFIT SUMMARY Retiree Medical • Medicare • Employees Hired< 4/1/86 Do Not Participate • Employees Hired > 4/1/86 Participate • Participation • Participating retirees pay pooled (active & retiree) rate vs. actual cost $7,IIOO Sf1,IIOO / l SS,000 / $4,11011 ........... /.. .......... ., .......... _.~ SJ,000 ~ -------S2,flO() Sl,000 ,. 25 JO 15 40 45 50 55 ~I ,,, ~I 75 "° Xl •JO ,,; 1no I·-•A~~r,,.,~c~ -cu,;11',y/\r:11.I • District • 2006/07 Contribution :::::$ 0.1 million (estimated) Contribution :, Actuarial • 2006/07 ARC :::::$ 0.2 Million Report • Unfunded Actuarial Liability :::::$ 1.4 Million • May be understated ~ October 26, 2006 4 ----------------------- MEDICAL PLAN DESIGN ALTERNATIVES Medical • Plans • Continue with Current Design • Modify Current Design • Ca!PERS Healthcare (PEMHCA): -Assumes District % of premium remains unchanged • Cash Flow Current with 50/50 Projections Share of Future Fiscal Year Current Increases PEMHCA 2006/07 $ 4.1 $ 4.1 $ 5.2 2007/08 4.5 4.3 5.5 2008/09 5.0 4.5 6.1 2009/10 5.5 4.8 6.6 2010/11 6.0 5.1 7.2 2011/12 6.4 5.3 7.7 2012/13 6.8 5.5 8.2 2013/14 7.2 5.7 8.7 2014/15 7.6 5.9 9.1 2015/16 7.9 6.1 9.6 ~ Oaobor26, 2006 13 ---------------------------------------I RETIREE HEALTHCARE PLAN DESIGN ALTERNATIVES Retiree Medical Hired < 7/1/88 > 7/1/88 • Basic Benefit • Benefit • District pays 2.5 months of • None medical premium for each year of District service • Changes? • Vested Rights? • ARBA ,. Benefit • $10 per month for each year of • $10 per month for each year of service service • Capped at $250 • Capped at $250 ;, Commences • When Basic Benefit Stops • At Retirement • Changes to • Eliminate entirely? current • Modify Existing Grant: program -Change amount? -Decrease/increase (e.g. 5%) for each year retirement precedes target age ( e.g. 60)? -Decrease at Medicare eligibility (e.g. 50%)? (ij:q) October 26, 2006 14 ROLL CALL SPECIAL MEETING JOINT FINANCE, ADMINISTRATION AND HUMAN RESOURCES AND STEERING COMMITTEES Meeting Date: October 26, 2006 COMMITTEE MEMBERS Time: 7:00 p.m. Adjourn: ___ _ Darryl Miller (Chair) Mike Duvall (Vice Chair) Bill Dalton Richard Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman Jim Ferryman (Board Chair) Doug Davert (Board Vice Chair) OTHERS I Brad Hogin, General Counsel STAFF Jim Ruth, Interim General Manager Bob Ghirelli, Acting Assistant General Manager Lorenzo Tyner, Director of Finance and --Administrative Services David Ludwin, Director of Engineering Jim Herberg, Director of Operations & Mgmt. Patrick Miles, Director of Information Technology Nick Arhontes, Director of Regional Assets --and Services Ed Torres, Acting Director of Technical Services Bret Colson, Public Information Manager Jeff Reed, Human Resources Manager Mike White, Controller Lilia Kovac, Committee Secretary c: Lenora Crane AGENDA SPECIAL JOINT MEETING FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, OCTOBER 26, 2006, AT 7:00 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRQ TEM. IF NECESSARY (3) PUBLIC COMMENTS (4) REPORT OF COMM.ITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES (7) REPORT OF GENERAL COUNSEL (8) CONSENT CALENDAR ITEMS There are no items to consider (9) ACTION ITEMS There are no items to consider Book Page 1 October 26, 2006 Page2 (10) INFORMATIQNAL ITEMS a. FAHR06-75 Retirement and benefits program review. Book Page 4 (11) CLOSED SESSION l During the co1.i"rse of conducting the business set forth on this agenda as a regular meeting of .the Committee ] i the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, l i pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, \ l 54957 or 54957.6, as noted. f I Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) j i employee actions or negotiations with employee representatives; or which are exempt from public disclosure l i under the California Public Records Act, may be reviewed by the Committee during a permitted closed session l [ and are not available for public inspection. At such time as final actions are taken by the Committee on any of \ 1 .. these subjectsi.the. TT)inut~s.will reflect all. required .. disclosures _of information .. _ ............... ·-·----··"· .. -···-·····"···· ........... . ..................... l a. Convene in closed session. Conference with designated representatives Lorenzo Tyner, Director of Finance and Administrative Services; Jeff Reed, Human Resources Manager; and Paul Loehr, Human Resources Supervisor, re Meet and Confer Update re contract negotiations for employees represented by 1 ). Orange County Employees Association; 2). International Union of Operating Engineers, Local 501, and 3). Supervisors, Professional Management Team (part of Peace Officers Council of California) (Government Code Section 54957.6). b. Reconvene in regular session. c. Consideration of action, if any, on matters considered in closed session. (12) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (13) MATTERS.WHICH A DIRECTOR MAY WISH TO PLACE GN A FUTURE AGENDA FOR ACTION AND STAFF REPORT (14) FUTURE MEETING DATES The next regular FAHR Committee meeting is scheduled for November 8, 2006, at 5 p.m. (15) ADJOURNMENT H:\dept\agenda\FAHR\FAHR2006\102606 Benefits Meeting\03.102606 Special FAHR Agenda.doc Book Page 2 October 26, 2006 Page 3 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items· Nor Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Committee Secretary: Interim General Manager: Acting Assistant General Manager Director of Finance and Administrative Services Human Resources Manager: Darryl Miller Lilia Kovac Jim Ruth Bob Ghirelli Lorenzo Tyner Jeff Reed (949) 453-5300 (714) 593-7124 (714) 593-7110 (714) 593-7400 (714) 593-7550 (714) 593-7144 lkovac@ocsd.eom jruth@ocsd.com bghirelli@ocsd.com ltyner@ocsd.com jreed@ocsd.com H:\dept\agenda\FAHR\FAHR2006\102606 Benefits Meeting\03.102606 Special FAHR Agenda.doc Book Page 3 FA HR COMMITTEE Meeting Date To Bel. of Dir. 10/26/06 AGENDA RE PORT Item Number Item Number FAHR06-75 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance & Administrative Services Originator: Jeff Reed, Acting Human Resources & Employee Relations Manager SUBJECT: RETIREMENT AND BENEFITS PROGRAM REVIEW GENERAL MANAGER'S RECOMMENDATION Information only. SUMMARY In July 2006, Bartel Associates was engaged by the District to perform an evaluation of the following areas: Pension Plan, Active Employee Medical Plan, and Retiree Medical Plan. At the September 2006 FAHR Committee meeting, Bartel provided a preliminary report on his findings. At that meeting, the Committee directed staff to work with Bartel to develop an initial list of potential strategies to address the evaluation areas. These strategies will focus on pensions, and health and medical programs. An oral report from Bartel will be presented providing additional information and options. PRIOR COMMITTEE/BOARD ACTIONS The General Manager assigned the consulting contract according to the delegation of authority policy. It was approved at the July 12, 2006, FAHR Committee meeting. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. l:8:l Not applicable (information item) ADDITIONAL INFORMATION Form No. DW-102-4 Dept. 320 Page 1 Book Page 4 Agenda Report -FAHR Revised: 10/19/2006 N/A ALTERNATIVES N/A CEQA FINDINGS NIA ATTACHMENTS Bartel Associates, LLC Letter dated October 10, 2006 Form No. DW-102-4 Dept. 320 Page2 Book Page 5 Agenda Report -FAHR Revised: 10/19/2006 ORANGE COUNlY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 812 7 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain VaUey, California 92708-7018