8 responses to findings and recommendations
F2
Ballot language that is overly general in identifying specific projects, and fails to indicate priorities and at least a realistic estimate of project costs, impedes meaningful and effective oversight and accountability. Response 2 The District disagrees. The Measure E ballot language included the Governing Board approved master plan of July 21, 2008, which detailed each of the projects. The Measure E Citizens' Oversight Committee was provided with a copy of master plan, which includes cost esti...
Response: Unknown
Score: 0
f 2%@ at 55 is the second lowest formula PERS offers. The current formula also includes use of the single highest year for calculating the highest salary. The second tier for employees hired on or after March 2, 2012 is 2%@ 60, using the three-year average for calculating the highest salary. As with the Safety employees' second tier, the city will save additional dollars because the cost to the City of adding the 7% Employer Paid Member Contribution (EPMC) to the highest salary, as noted on page 3 of the report, is eliminated. Page 4 Grand Jury Response - Report #1209 - City Retirement Plans I...
F3
Bond proceeds are sometimes used to provide General Fund relief in various ways, which even if lawful, may not have always been fully disclosed to voters in the ballot language. Response 3 The District disagrees. The ballot language included the Governing Board approved master plan of July 12, 2008, which did not include providing General Fund relief. The Measure E Citizens' Oversight Committee was provided with a copy of the master plan and uses it to verify expenditures that do not include Gen...
Response: Disagree Partially
Score: 0
f 3 Recommendations 1. Those cities that have not adopted a second tier with reduced pension benefits for their Safety employees should consider doing so. Response: This recommendation has been implemented in that the City of Concord and the Concord Police Association (POA) have agreed that under certain conditions the existing POA Memorandum of Understanding can be reopened to address the establishment of a second tier retirement formula. The current memorandum lasts two more years, so further consideration of this recommendation cannot occur until then. 3. In order to control unpredictable f...
F4
District boards have an inherent conflict of interest in selecting, and in some cases, having the power to remove with or without cause, the members of the oversight committee who are required to oversee the district's spending of bond funds. Response 4 The District disagrees. The Governing Board is very open and transparent to the selection process of the oversight committee and has never removed a member.
Response: Unknown
Score: 0
f 4 The recommendation requires further analysis. In July 1998 the City of Clayton elected to participate in the CalPERS' Public Employees' Medical and Hospital Care Act (PEMHCA) for the provision of health care for its active employees. At the time, PEMHCA (Government Code section 22857) required a contracting agency to also make available enrollment in the offered health care plans by its retirees (annuitants) at the retiree's sole cost except for an initial maximum one dollar ($1.00) per month contribution by the City. Pursuant to PEMCHA law (section 22892 of the California Public Employees...
F6
There does not always appear to be a consistent and transparent process for interested persons to be nominated, apply for, and be appointed to membership on oversight committees, or disclosure of any previous employment by, or other prior involvement or business relationship with, the district. Response 6 The District disagrees. Once the application is circulated and has been responded to by interested candidates, a sub- committee of the Governing Board reviews the applications and works hard to...
Response: Agree
Score: +1
Finding 6 - Retiree health care may represent a significant future cost for those cities that pay for all or a portion of those benefits. City of Hercules Response: The City agrees with this finding. Currently the City of Hercules Miscellaneous employees contribute 4.5% of the 7% employee portion of CalPers retirement and Safety employees contribute the full 7% of the employee portion of CalPers retirement.
F7
Districts do not consistently provide timely, adequate and independent training or resource materials for members of their bond oversight committees that explain their role, duties and functions, or provide training in the skills needed to analyze the kinds of financial data that bond oversight committee members are asked to review. Response 7 The District partially disagrees. All committee members are provided a binder with materials related to the bond measure including but not limited to the ...
Response: Agree
Score: +1
Finding 7: Defined contribution retirement plans can be an effective way to limit both current and future retirement costs. City response: Agree. The need for cost control is one reason why Lafayette eschews defined benefit plans and instead opts to enroll employees in a defined contribution program.
R7
A district should ensure that websites for their oversight committees are prominently displayed on their homepages, are easily navigable, and include current and complete postings of all required items. Response 7 Prior to the Grand Jury report the District moved its Measure E Website postings to the Governing Board's web-based program BoardDocs, which is easily navigable, in January 2012. The District will continue to post its Measure E materials on BoardDocs.
Response: Unknown
Score: 0
r 7 • "Defined contribution retirement plans can be an effective way to limit both current and future retirement costs". The City of Pinole partially agrees with this finding. Response: Based on actuarial data we have reviewed, although defined contribution plans do provide the City with a way to limit some exposure to increasing retirement costs, they are not necessarily the best retirement plans to offer employees. As has been seen in the private sector, employees who do not have a defined benefit retirement plan usually face significant challenges to effectively manage their retirement port...
F8
Although all oversight committees have bylaws, they do not appear to include or take into account "best practices" recommended by independent groups. Response 8 The District disagrees. Although the bylaws do not explicitly account for "best practices," nor are they required to, the members of the committee bring a lot professional experience to their quarterly meetings that translate into best practices while they contemplate the Measure E projects and expenditures. Furthermore, the District emp...
Response: Disagree Partially
Score: 0
finding 8. The Governor's Pension Reform Plan offers a good strategic model for limiting future retirement costs for local governments. City of Pittsburg Response - (3) Partially disagree with the finding. We feel uncomfortable commenting on proposed legislation without analyzing its impact. However, reviewing the bullets listed in the report it appears to reduce future retirement costs. <u>List of Recommendations</u> 2. In order to control unpredictable future expenses, cities should consider reducing or eliminating their financial obligation for retiree health care for future employees. City...
R8
A district should provide oversight committees with complete, detailed and comprehensive financial data relating to the expenditure of bond revenues, showing the amount of funds originally budgeted and allocated for each project, amounts expended to date and amount committed to each project, percentage completion of each project, and all approved or anticipated change orders. Response 8 Prior to the Grand Jury report the District has always provided the Measure E Citizens' Oversight Committee de...
Response: Unknown
Score: 0
r 8 • "The Governor's Pension Reform Plan offers a good strategic model for limiting future retirement costs for local governments". The City of Pinole partially agrees with this finding. Response: While there are some good amendments to the current retirement system, such as eliminating retroactive benefit enhancements, the "air time" purchase, and spiking provisions, there are some drawbacks as well. Given the type of work performed by the majority of our employees, we have a concern with raising the normal retirement ages to those proposed by the Governor. We think that there is a legitimat...