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HomeMy WebLinkAbout2009-01-26 Work Session Minutes Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, JANUARY 26, 2009 ___________________________ Present were Commissioners Dennis R. Luke, Tammy Baney and Alan Unger. Also present were Dave Kanner, County Administrator; Ronda Connor, Personnel; David Givans, Internal Auditor; Marty Wynne and Jeanine Faria, Finance; and guest Dennis Monaghan, a Consultant with HP Northwest Actuaries. No representatives of the media or other citizens were present. Chair Baney opened the meeting at 1:35 p.m. 1. Finance Update. This report was discussed at a recent Budget Committee meeting so it was felt it did not need to be reviewed again at this time. 2. Report on Retiree Health Plan Actuarial Liability Valuation. GASB (Government Accounting Standards Board) makes the rules and the County must follow them. GASB #45 states that certain information must be included in the reports. The process depends on the size of the organization, and the first year the County must comply is 2008-09. Mr. Monaghan has done the same type of work for several Oregon counties, cities and school districts. Other post employment benefits (OPEB) has to do with the fact that County employees can retire before age 65, and are eligible for health insurance. This is an explicit subsidy. An implicit subsidy has to do with what the County charges retirees as well as employees; however, older employees have higher dollar claims. Jeanine Faria added that the main OPEB is PERS. Minutes of Board of Commissioners’ Work Session Monday, January 26, 2009 Page 1 of 4 Pages Minutes of Board of Commissioners’ Work Session Monday, January 26, 2009 Page 2 of 4 Pages Mr. Monaghan said the explicit subsidy is when the County pays for it; and the implicit, where the cost of healthcare increases with age, where the County pays for it until the person is 65. He then gave an overview of how these subsidies work and how, if properly handled, could reduce the County’s liability. (See attached overview.) Mr. Wynne said that in some other parts of the County, government employees have health insurance coverage for life. Some of them offer this after five years of employment. At age 65, Medicare is the primary but the agencies pick up the difference. Commissioner Baney pointed out that there would be a large payout when employees retire, but not everyone going out has the same protection. This forces governments to look at long-term impacts. Ms. Faria stated that the County would know that these expenses are coming in the future and savings can be budgeted. Originally, it was in the $50,000 to $60,000 range, but this will go up. However, it seems to work under current budget situation. Health care is the only post-employment expense. A review is required about every two years unless something significant changes. David Givans asked if a self-insured plan is handled differently than one that is not. Mr. Monagham said it is not that much different except a self-insured plan actually tends to have better data and record-keeping. Ronda asked what kind of large change would require a review prior to two years; Mr. Monagham stated that if there are a lot of employees and there is a large layoff, a recalculation is needed. Ms. Faria indicated that they would follow up with Mr. Monagham if any significant changes occur. Mr. Monagham stated that many school districts have him do the actuarial work and compare against the prior year. 3. Property Auction Update. Susan Ross said that the Greenwood Avenue property value is much less than she hoped it would be. An estimated value of $210,000 was given six years ago and it is about the same now. It is $43.80 per square foot; other properties in the area are at $37.00 per square foot. Minutes of Board of Commissioners’ Work Session Monday, January 26, 2009 Page 3 of 4 Pages The building needs a lot of work and the real value is in the land. Due to the poor economy, an auction at this time would not make sense. 4. Economic Development Grant Requests. Commissioner Luke said that the Redmond Chamber is going to host a job fair at the Fair & Expo Center, and may request funding from the Board for this. 5. Update of Commissioners’ Meetings and Schedules. Commissioner Baney stated that two requests were recently regarding requests for road district assistance. Mr. Kanner stated that these can be discussed with Road Department Director Tom Blust later in the week. _______________________________ Regarding the request for COVA funding and Sunriver Chamber of Commerce’s request for direct funding, Mr. Kanner stated that he feels the funds should be given to the Chamber this year. The funds would be deducted from the money going to COVA. Mr. Kanner stated that Alana Audette agrees with this but she is not sure what the COVA Board will want to do. _______________________________ Commissioner Unger had a concern about events where food is featured, and how each of the participants has to pay for its own inspection fee. Commissioner Baney stated that the County cannot get around the inspection part, but perhaps can adjust the fee. Mr. Kanner stated that it may be possible to combine the participants under one application. _______________________________ Commissioner Baney said that the Economic Forecast breakfast is tomorrow and she will attend. Being no further items addressed, the meeting adjourned at 3:20 p.m.