Guests were provided an opportunity to introduce themselves.

Transcription

1 7/1/15 Minutes of the PSA 2 Area Agency on Aging EXECUTIVE BOARD Meeting Burney, CA June 22, Call to Order Executive Board Chairman, Kay White, called the meeting to order at 10:31 a.m. 2. Roll Call Executive Board Members Present: Kay White (Chairman); Supervisor Jeff Hemphill (alt.); Supervisor Pat Cullins; Roberta Hohman; Supervisor Les Baugh (Vice-Chairman); Richard Kuhns, Psy.D; Supervisor Ed Valenzuela; Marie Ingram; Sandy Bechtold and Supervisor John Fenley. A quorum was established. Executive Board Members Absent: Supervisor Jim Chapman (EX); Supervisor David Allan (alt.); Supervisor Pam Giacomini (alt.); Supervisor Grace Bennett (alt.) and Supervisor Judy Morris (alt.). Guests Present: PSA 2 AAA staff - Teri Gabriel, Executive Director and Trina Hale, Fiscal Manager; Vince Johnson, PSA 2 Advisory Council Chairman; Dave Saavedra, CERBT Program Outreach representative for CalPERS; Matt Goss, CalPERS representative. Guests were provided an opportunity to introduce themselves. 3. Approval of Agenda Director Gabriel noted that the Advisory Council and Executive Director s Report have been moved down on the agenda in consideration of the presenters time. Supervisor Baugh motioned for the approval of the agenda, seconded by Sandy Bechtold, all aye, motion carried.

2 8/25/ Approval of Consent Agenda (Topics in this category may be voted on in a block as one item) The Fiscal Manager addressed inquiries from the Board related to the financial package. Supervisor Baugh motioned for the approval of the consent agenda, seconded by Supervisor Fenley, all aye, motion carried. Abstentions: Executive Board members not present at the 05/18/15 meeting are acknowledged as abstaining from the approval of these minutes Supervisor David Allan; Supervisor Les Baugh; Richard Kuhns Psy.D; Supervisor Grace Bennett and Supervisor Judy Morris. 5. Open Session No comments. 6. Executive Board Report No report. 7. Presentation by CERBT Program analysts, Matt Goss and Dave Saavedra from CalPERS Special Programs Division Director Gabriel provided a brief introduction to the California Employers Retiree Benefit Trust Program (CERBT) presentation. Matt Goss began the presentation by explaining that he and Mr. Saavedra will not profit in any way if the Board agrees to contract with CalPERS for the CERBT. He reviewed the advantages of prefunding, which include higher yield investment returns and reduction of liabilities in the actuarial. Supervisor Baugh inquired how Mr. Goss would define prefunding. Mr. Goss replied that it is setting aside money today and in an ongoing basis, above and beyond the pay-as-you-go costs, in an effort to build up the pool of assets to pay those benefits in the future. Mr. Goss then explained some of the benefits of working with CalPERS. These include the delegation of investment fiduciary responsibilities, which keeps the reporting responsibilities of Agency staff very simple; responsive customer service; and a low service cost, which is about seven to eight times lower than the private sector competitors, being that CalPERS is a not-for-profit organization. Mr. Goss then explained the differences between prefunding pension funds and prefunding the Other Post Employment Benefits (OPEB). He explained that the customer controls the funding policy, deciding if and when to add money, deciding what investment vehicle types to use, and has greater flexibility with reimbursements. Mr. Goss discussed the various investment strategy choices and why companies

3 7/1/15 choose them. He shared some of CalPERS investment results. He further explained how fees are calculated. He discussed OPEB accounting standards and how CalPERS complies. He then addressed inquiries from the Board. He explained that PSA 2 is eligible to participate in the CERBT because an actuarial has determined we have an OPEB liability because we are required to offer postemployment health insurance coverage. Supervisor Baugh inquired where in our current budget this liability was indicated. The Fiscal Manager pointed out the item and noted that it is for prefunding this trust. Supervisor Baugh further inquired what our current benefit amount is. The Fiscal Manager explained that PSA 2 has not previously funded this benefit as there have been no retirees to provide the benefit to. However, PSA 2 has approved this benefit by contracting with CalPERS. The PSA 2 contract with CalPERS states that PSA 2 will pay the minimum amount of one hundred twentytwo dollars per month for a retired employee who qualifies to receive it and this amount increases several dollars each year. To qualify, the employee must have five years of service with CalPERS and be fifty years of age. The Fiscal Manager and Mr. Goss continued to address inquiries related to the requirements of the OPEB. Supervisor Baugh inquired as to the amount budgeted to prefund the OPEB for FY 15/16. The Fiscal Manager stated that it is four thousand eight hundred. Director Gabriel noted that this is about twenty-five percent of the actuarial and that is an average funding amount among other employers in the CERBT program. Additional inquiries related to the contribution amount were addressed by Mr. Goss and PSA 2 staff. 8. Approval of the Implementation Plan for the California Employers Retiree Benefit Trust (CERBT) Fund Director Gabriel briefly recapped the contents of the Implementation plan. Supervisor Baugh motioned for the approval of the Implementation Plan for the California Employers Retiree Benefit Trust (CERBT), seconded by Supervisor Valenzuela, all aye, motion carried. 9. Approval of CERBT Contract Agreement Supervisor Baugh motioned for the approval of the CERBT Contract Agreement, seconded by Sandy Bechtold, all aye, motion carried. 10. Approval of Delegation of Authority to Request Disbursements Supervisor Baugh motioned for the approval of the Delegation of Authority to Request Disbursements, seconded by Supervisor Valenzuela, all aye, motion carried.

4 8/25/ Discussion and Approval of Phase 2 COLAs for AAA Staff Director Gabriel gave a brief explanation of the request for phase 2 of AAA staff COLAs. She then addressed inquiries from the Board related to current positions and the discussion from the previous year related to COLAs. Director Gabriel noted that due to the Agency not providing any increases since 2007, pay rates needed to go up to keep up with the increase in minimum wage. Supervisor Baugh stated that he was not in favor of increasing the entire pay rate scale for minimum wage increases. Discussion ensued. Supervisor Baugh inquired as to the current pay rate schedule, noting that he did not have enough information to make a decision. Director Gabriel stated that it would be provided in the next Board meeting packet along with minutes from the previous years meeting when COLA s were discussed. Supervisor Valenzuela requested an Executive summary on the matter. The Board agreed to table this item until the next meeting. 12. Approval of FY 2015/2016 County Match The Board briefly discussed the small increase to county match dollars. Supervisor Baugh was in favor of the increase, noting that should the COLAs not be approved, the extra dollars might be added to the FY 15/16 OPEB contribution. Supervisor Valenzuela motioned for the approval of the FY 2015/2016 County Match, seconded by Supervisor Baugh, all aye, motion carried. 13. Approval of FY 2015/2016 Staff Benefits Director Gabriel recapped staff benefits noting the changes that occurred last year. Supervisor Baugh motioned for the approval of the FY 2015/2016 Staff Benefits, seconded by Supervisor Valenzuela, all aye, motion carried. 14. Approval of FY 2015/2016 Proposed HICAP & Ombudsman Budget and Budget Narrative Director Gabriel addressed inquiries from the Board related to oversight of the programs budgets. She replied that she was confident in the budgeted numbers and in the information shared by the Program Managers which was used to develop the budget. Supervisor Baugh commented on the minimal amount of administrative cost taken from the programs, being five percent and inquired whether the Agency needed to take more. He suggested that at a future meeting, a report and possible analysis of costs be provided to support the amount of administrative fees being charged.

5 7/1/15 Supervisor Baugh also inquired whether the programs would be viable if key personnel were to leave the programs. Director Gabriel responded that she was very confident in the knowledge level and abilities of current staff under the Program Managers. They have been with the programs for many years and work closely with the Program Managers. Supervisor Valenzuela motioned for the approval of the FY 2015/2016 Proposed HICAP and Ombudsman Budget and Budget Narrative, seconded by Supervisor Fenley, all aye, motion carried. 15. Approval of FY 2015/2016 Proposed Administrative Budget and Budget Narrative PSA 2 staff discussed approval of the proposed budget with the exception of the six percent increase to the salary schedule, noting that the additional county match dollars allocated to the salaries could be added to the fund balance and might possibly be contributed to the OPEB fund as suggested earlier in the meeting. The Board agreed. Supervisor Baugh motioned for the approval of the FY 2015/2016 Proposed Administrative Budget and Budget Narrative, with the stipulation that the additional county match dollars would not yet be applied to salaries, seconded by Supervisor Valenzuela, all aye, motion carried. 16. Advisory Council Report Advisory Council Chairman, Vincent Johnson, shared his report, noting that he would like to see a more active Council. Discussion ensued regarding member activity and how the Council could be more effective. Supervisor Baugh asked for a report on attendance and activity for each member to be brought to the next Board meeting. 17. Executive Director s Report Executive Director, Teri Gabriel a. Status of FY 15/16 Funding Director Gabriel reported that the California Department of Aging (CDA) contract had arrived at the PSA 2 office and provider contracts would be released soon. b. Provider Monitoring Update Director Gabriel shared that provider monitoring would be concluded soon. She shared that there was some concern about the Modoc Senior Citizens Association (MSCA) after visiting with them. Following the hiring of a new Director and retirement of the Fiscal Consultant, it was discovered that the Director did not have the expertise to properly address the fiscal requirements of the job. The former Fiscal Consultant was brought back in to review the financial standing of the MSCA and found that there was some outstanding debt. PSA 2 staff has been working closely with the MSCA board to reduce

6 8/25/2015 costs and increase oversight of finances and grant activities. She further shared that PSA 2 will be watching closely to see that the MSCA remains viable before contracting with them for FY 15/16. Director Gabriel addressed inquiries from the Board and discussion ensued regarding MSCA board meetings. c. Needs Assessment Survey Process Director Gabriel reported that surveys are still being distributed. The mailed surveys had just been sent out and a couple of volunteers would be relied upon to initiate the data entry process. d. Response from CDA Regarding Delayed Funding Director Gabriel shared the response from CDA regarding delayed funding and the hardship it creates for some of the PSA 2 providers. CDA stated that they would monitor their payment process to ensure the timely release of funds. e. Additional Training to Contracted Providers Director Gabriel noted that PSA 2 staff will be looking at additional training which could be offered to contracted providers and gave a brief overview of the current training procedures. f. Other Director Gabriel reported on the activities of PSA 2 for World Elder Abuse Awareness Day. 18. New Business: None. 19. Old Business: None. 20. Correspondence: Incoming None Outgoing None 21. Adjournment The PSA 2 Area Agency on Aging Executive Board Meeting was adjourned at 12:50p.m. Respectfully submitted, Teri Gabriel, Executive Director H:\ALL\Executive Board\Executive Board Agendas & Minutes\Board Packets\1516 Packets\ \EB Meeting Minutes doc