Minutes of the Meeting Template

Document Sample
Minutes of the Meeting Template Powered By Docstoc
					                   Name of team: Employee Benefits Review Task Force
                   Meeting Notes – Thursday, February 8, 2007

Date of Meeting:                       Thursday, February 8, 2007 – Convention & Visitors Bureau Board Room
Notes Prepared By:                     Angela Gainer

Attendance at Meeting
Name                                                                 Name
Paulette Braithwaite -Vice Chair   City Employee – General           Kerry Jordan            Subject matter expert -
Bill DeSteph – not present         Virginia Beach City Council       Paul Lanteigne          City Employee – Public Safety

Harry Diezel                       Virginia Beach City Council       Bill Lechler            Business owner

Norrie Hoff– not present           Business owner                    Bob Schleh - Chairman   Subject matter expert -
Glenn Huff– not present            Business owner                    Susie Walston           City Employee – Subject
                                                                                             matter expert

Staff Support Attendance at Meeting
Name                                                                 Name
Mary Hancock                       Media & Communications            Patti Phillips          Director of Finance
Angela Gainer                      Recorder – City Manager’s         Betty Wade Perry        Facilitator – Organization
                                   Office                                                    Development Office

       1. Housekeeping items:
          • Review and approve agenda
          • Review and approve meeting minutes
          • Introduce meeting facilitator (Betty Wade Perry) and discuss role

       2. Current Business
          • Communication Support
                  o Web status – Mary Hancock
                  o Other materials to add or for review – Mary Hancock
                  o We contact selection
          • Active Benefits
                  o Review BLR 2007 Employee Benefits Survey – Bob Schleh
                  o Determine elements to be compared
          • Retiree Benefits
                  o Identify items that the Task Force will consider for recommendation
                  o Present schedule of net asset depletion due to GASB liability – Patti Phillips
                  o Topical discussions to determine recommendations
                            Funding method (pay-go, minimum funding, other)
                            Eligibility for benefits (<25, dependents)
                  o Next Steps

       3. New Business

       4. Close Meeting

          Name of team: Employee Benefits Review Task Force
          Meeting Notes – Thursday, February 8, 2007

Meeting Notes, Decisions, Issues

Housekeeping Items
Bob Schleh opened the meeting and reviewed the day’s agenda. An item regarding
meeting recordation was added to the agenda under Housekeeping Items.

The notes from the February 1st meeting were reviewed. There were some
adjustments/edits to the meeting notes. With the corrections, the notes from February
1st were approved. Susie will provide the changes to Mary Hancock to update the
electronic version and to Millicent Gallagher for the permanent record. Handouts from
the last meeting will be sent to members who were absent.

Bob introduced Betty Wade Perry as the meeting facilitator and explained that the role
of a facilitator was to help keep the discussion rolling.

Bill Lechler explained his position regarding recording the task force meetings. After
having time to think about the impact of recording these meetings, Bill made a motion
that the Task Force consider the issue again and take a second vote. Paul Lanteigne
seconded the motion. Members expressed their views: If recording the meetings will
inhibit someone from speaking freely, then we need to discontinue recording the
meeting. Things can be taken out of context and it is better to have a record that
captures the essence of the meeting. The Task Force unanimously agreed not to
record the meetings.

Communications Support
Mary Hancock distributed hard copies of the updated website prototype and walked
Task Force members through the site. Members of the Task Force that have accounts have access to the mailbox that accepts public comment to the
Task Force. Susie Clark, Communications and Information Technology (ComIT) sent
instructions. This is a public site on the City’s Internet. Notification will go out tomorrow
(February 9th) notifying all staff. Kerry Jordan suggested that ComIT put an automatic
forwarding capability so that messages sent to the Task Force will be sent to the
members who do not have an account. Mary is working with ComIT and will report on
the status at next week’s meeting.

Is there anywhere that says that these meetings are open to the public? The Press
Release on meeting times and locations indicates that the meetings are open to the

Active Benefits
Bob Schleh distributed copies of the BLR 2007 Employee Benefits Survey and asked
how members would like to have a comparison done. Susie suggested that instead of
recreating the survey, to insert data applicable to Virginia Beach on the hardcopy. Task
Force members agreed.

          Name of team: Employee Benefits Review Task Force
          Meeting Notes – Thursday, February 8, 2007

In considering the benefit comparison, the Task Force should determine and provide
recommended actions (decision points) to City Council for both the short-term and long-

Paul Lanteigne asked if the federal government was an entity in the survey and if so, can
we get the information? Bob will call the survey company BLR.

Retiree Benefits
What items should the task force make a recommendation on to be sure we are focusing
our discussions appropriately? Eligibility and Funding was identified at this time; other
items will be identified as the Task Force reviews the survey comparisons

Funding – fund or not fund the current GASB unfunded liability
Eligibility for access to retiree health care (employee and/or dependents) and eligibility for
the city contribution

Groups for eligibility consideration:
•    Retirees over 25 years of service
•    Retirees under 25 years of service
•    Dependents: spouse, children

Net Asset Depletion Due to GASB Liability
Patti Phillips presented the schedule of net asset depletion due to GASB liability.

  • Is the cost of sick leave reflected as an unfunded liability? Accrued sick and annual
      leave are in fact reflected as a liability on the City and Schools consolidated
      statement of net assets. The liability for sick leave is picked up after an employee
      reaches the age of 50 as a estimate of the costs that may be paid out for those that
      retire (although there are a few who retire before that age). The annual leave liability
      is calculated based on leave balances at the end of each year for each employee.
         The liability increases about $2 ½ million on the city side each year for annual and
      sick leave. These are lump sum payouts, which are different than the annual
      payouts of pensions and retiree health care
•      What is the percentage increase between an AAA Bond and an AA+ Bond? It may
       vary somewhere from ½% to 1%,depending on the interest rate environment. It’s
       not just what we are doing, but what we are doing in connection with all of the other
       governments. The strength of Virginia Beach’s ratings is financial management.
•      What about a dedicated funding stream to cover this? Concern is about the long
       term fiscal stability of the city to be able to sustain long term core services.
•      What is the city’s contractual arrangement with changing benefits? What are the
       limitations? Technically, we have no contract – most employers rely on clear
       communications to their employees that changes can occur to future benefits at any
       time. Harry will check with Les Lilley, City Attorney on whether or not there are any
       legal ramifications.
•      Can the unfunded liability be covered by issuing bonds? It is not recommended to
       fund the liability through issuing bonds. Bonds usually cover the cost of assets that

               Name of team: Employee Benefits Review Task Force
               Meeting Notes – Thursday, February 8, 2007

            continue to be used by the community in the future; whereas retirees no longer
            work and provide services to the City.

                                      Funding of GASB 45 Liability
                        PROS                                              CONS
    Viable solutions may be out there (Vacancy          There will be a huge increase in current
    Funding, Year-End Funding, Contributions by         contributions to cover the costs associated
    each city entity based on number of retirees)       with people retiring in the future
    Help maintain higher bond ratings                   The increased cost due to lower bond
                                                        ratings would initially be small compared to
                                                        the cost of funding
    Benefit to employees because it ensures
    that there will be money to fund their post-
    retirement benefits
    Prevent the depletion of net assets that is
    expected to occur in about five years due
    to GASB reporting requirements
    It’s a matter of fairness (Tax payers today
    fund the full cost of benefits that accrue today)

Action                                        Assigned To                Notes
Determine whether BLR has benefits            Bob Schleh
information for Federal Government
Follow up with City legal department          Harry Diezel
regarding contract obligations and
flexibility regarding retiree benefits
Develop pros and cons of funding              Staff
GASB 45 liability

6. Next Meeting
DATE                   TIME                LOCATION                                     RECORDER
February 15, 2007      3:00-5:00 p.m.      Economic Development Conference Room,        Millicent Gallagher
                                           10th Floor
   • Comparison to City of Virginia Beach Reports:
        o Kaiser Hewitt Survey
        o Hampton Roads Localities and State of Virginia Benefit Packages Comparison Data
   • Continue Discussion on Pros and Cons

Meeting adjourned: 5:05 p.m.


Shared By:
Description: Minutes of the Meeting Template document sample