HomeMy WebLinkAboutSeptember 11Meeting Minutes
Los Altos Hills Finance and Investment Committee
Monday, September 11, 2006
Town Hall
1) Roll call
Members present: Wilf Corrigan, Jean Mordo, Karl Kneip, Jim Lai, Frank Lloyd,
Stan Mok, Doug Norby, Lalla Stark
Members absent: None
In attendance: Carl Cahill, Cindy Higby, Sarah Ragsdale
Chairperson Mordo called the meeting to order at 6:07
2) Meeting minutes
The minutes of the July 24, 2006 were reviewed and approved
3) Retiree health benefits.
Doug Pryor of Bartel Associates, presented an update of his analysis of the post
retirement costs based on the following assumptions: No changes for current
retirees, switch current town employees to a cafeteria plan for health benefits and
evaluate 3 different retirement benefits upgrades from the present 2% @55:
• 2.5% @ 55
• 2.7% @ 55 and
• 3.0% @ 60 using final PERSable wages.
Doug is using preliminary estimates from CalPERS and will need to wait for the
final numbers from CalPERS in late November. Also Doug assumed that we
would switch from the average of the 3 highest years to the highest 12 months.
The preliminary results show that savings from switching to a cafeteria
plan to control retiree health costs could pay for an improvement in the
pension plan to at least 2.5%, and perhaps 3% if we maintain the 3-year
averaging.
Sarah Ragsdale had a conversation with Robert Blum, tax attorney with Hanson,
Bridget Vlahos Rudy, LLP in regards to the town switching the benefits package
offered to its employees. Robert stated that there is no clear case law on
enforceability of promise / past practice to employees and town could be a
forerunner on this issue and might risk litigation.
Sarah surveyed comparable sized communities for healthcare and retirements
benefits. All but one use CalPERS for healthcare and it varies on the healthcare
offered for each city. The CalPERS retirement benefit varied from 2% @ 55 to
3% @ 60. Additionally, Sarah pointed out that a future employee would evaluate
salary combined with the healthcare and retirement benefits.
Follow up items for next meeting:
1. Doug will provide results of his calculation using the current 3
highest year averaging of earnings as opposed to the highest 12
months.
2. Carl Cahill will contact the town attorney for a recommendation for
an attorney specializing in municipal healthcare case law.
3. Carl Cahill, Jean Mordo and Sarah Ragsdale will arrange a meeting
with either Robert Blum or another attorney specializing in municipal
case law.
4. Carl will informally survey the town employees on possible changes
to the town’s benefit’s package.
4) Presentations from the floor – None
5) Next meeting will either be on October 2 or November 6, depending of
progress on the above. Final actuarial data will not be available until end of
November, so we might not get the information from CalPERS until January.
6) Adjournment – The meeting was adjourned at 7:35 p.m.