Finance Highlights 2008 0729 - Laserfiche WebLink

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Mayor Santos inquired about the distribution of funds for the Senior Center and Parking Structure and how contractors are paid. City Manager Jermanis stated that funds will be distributed over a 3-4 year period with contractors billing monthly. Engineering and Transportation will review the billing prior to submitting to Finance for payment. Mayor Santos asked if the City could ask for a set price on a contract with a not to exceed value. Jermanis stated that he will speak with the Uche Udemezue, Engineering & Transportation Department Head, for the Parking Structure project, as the Senior Center bid has already been awarded. The Finance Committee accepted the report. 2. Discussion Regarding the Medical Benefit for City Retirees Carter stated that in 2004 the Government Accounting Standard Board (GASB) issued Statement No. 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pension. The City must begin to recognize benefit liabilities and disclose on an actuarial basis, or pre-funding, rather than on a "pay as you go basis", which is currently being done. The City will be required to implement the provisions for the fiscal year ending June 30, 2009. The City will be establishing a trust, as required by GASB 45, and appoint a trustee to ensure compliance with applicable laws. The City has reviewed and evaluated services offered by five different providers and have identified both Ca1PERS and the Public Agency Retirement System (PARS) as the two top providers. Staff would like the opportunity to review the two providers to determine which would be best for the City. Councilmember Gregory stated that in the past the City has used $1 million to assist with balancing the budget. Jermanis agreed, however he stated that in the future the City will no longer be able to utilize the money that has been placed in the trust. Human Resources Director Caire noted that the Retirement Benefit is an obligation and GASB 45 states that we must now meet requirements like that of a private business. Councilmember Grant would like to see the criteria that will determine what provider will be selected and why that provider is the best. Mayor Santos stated he would like to see the medical saving account come back to Committee in September: Caire noted that more cities will require employees to participate in voluntary employees' beneficiary association (VEBA) or other similar account. Committee has agreed to provide staff more time in selecting a Trustee for the City's "Retiree Medical" post employment benefit plan as well as authorize the use of funds that have been set aside for the City's retiree medical plan to transition from a "pay as you go basis" to a pre-paid or actuarially determined annual contribution. 3. Discussion Regarding Alameda County (ALCO) Fire Department's 2007-08 Fourth Quarter Invoice and Year-End Expenditures Report Fire Chief Gilbert provided an overview of the 2007-08 Fourth Quarter and Year End Expenditures Report. The Fire Department showed that although the Salaries and Benefits were higher than then budgeted amount, there were also savings that would contribute to the end of the year credit of $62,775. The credit will be applied towards the City's 2008-09 first quarter billing. Mayor Santos inquired whether or not ALCO Fire was discussing other post employment benefits. Gilbert indicated that ALCO Fire is working with various agencies addressing the GASB 45 requirement as well. Councilmember Gregory inquired about fuel prices and whether 2