Finance Highlights 2008 0917 - Laserfiche WebLink

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Account program which allows employees to place pre -taxed dollars into an account to assist with health payments, e.g. prescriptions, eye glasses, contacts, as well as dependant care. The VEBA Trust plan is similar to the 125 Flexible Spending Account however unlike the 125 plan, accumulated assets in a VEBA Trust can be used to make premium payments and unspent monies are not lost at the end of the year. Another benefit is that vacation and sick leave hours may be placed into VEBA Trust. The VEBA Trust does not allow for dependent care, therefore the 125 plan will still be made available to employees as well. VEBA Trust must be voted on by all four bargaining groups and must pass with a 50+ 1 majority, as this is a benefit that will require 100% participation. Each group will vote and detennine whether they would like to participate and will be discussed in negotiations. There is an administration fee for each employee of $4.55, plus $0.50 per month. The idea is to have the plan in effect by January 1, 2009. Wells Fargo Bank will hold onto 30% of the monies for day to day expenses and 70% will be transferred to MetLife for investment. Monies will not be invested in stocks and the return is a guaranteed 3% interest. Currently there are six cities participating in the VEBA Trust plan. The first 10 people, of each city, that join have a seat on the Trust Committee. Typically, the Finance Director is the Primary seat holder and the Human Resources Director is the alternative. Councilmember Grant asked Caire what would be the direct benefits to the City, if any. Caire stated that the benefit would be to the employees as this is a tool to assist with planning for the future. Councilmember Grant also wanted to clarify if the plan was mandatory. Caire stated that it was. At this time, staff is asking for the Committee to approve taking the plan to Council for approval. Committee Recommendation The Finance Committee recommended forwarding to the Council for approval. 2. Discussion Regarding Fire Center Operations Complex Hollister introduced to the Committee the Alameda County Fire Department's plan to consolidate their headquarters with divisions of operations. Fire Chief Gilbert stated the Administration has outgrown the space at City Hall and presented a PowerPoint Presentation on the idea and need for consolidation. Gilberts plan is to educate the Committee and ultimately present to Council at the next Work Session. Currently the fire operations are spread throughout the county. The benefit to moving all operations to one complex would be to reduce redundancy and duplication, streamline administrative operations & support, and increase the efficiencies of chief officers, staff, and division functions, and will be able to build a training facility that can meet all requirements. Alameda County Fire has conducted a Request for Proposals and received several submittals. There are two locations that are being considered: 2020 Williams Street, San Leandro; and 6400 Sierra Court, Dublin, CA. At this time, the Dublin location appears to be the most feasible location. The lease is substantially lower, $9M less then the San Leandro location and it accommodates most prescribed functions. 2