BIBB COUNTY BOARD OF COMMISSIONERS WORK SESSION FEBRUARY 20, :00 A.M. BOARDROOM

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1 BIBB COUNTY BOARD OF COMMISSIONERS WORK SESSION FEBRUARY 20, :00 A.M. BOARDROOM A Work Session of the Bibb County Board of Commissioners was held on Monday, February 20, 2012 at 9:00 a.m. in the Commissioners Boardroom for the purpose of discussing the benefits package for City employees moving to the County as of July 1, Commissioners in attendance were: Chairman Samuel F. Hart, Sr., Vice Chairman Elmo A. Richardson, Jr., Bert Bivins, III, and Lonzy Edwards. Commissioner Joe O. Allen was absent. Staff in attendance was: Steve Layson, Chief Administrative Officer; Dawn Lewis, County Attorney s Office; Deborah Martin, Finance Director; Ken Sheets, County Engineer; Sam Kitchens, Director of Buildings & Properties; Grant Faulkner, Assistant IT Director; Marty Marberry, IT.; Bel Wall, Assistant Human Resources Director; Doug Furney, Director of Lake Tobesofkee; Shelia Thurmond, Clerk of the Board; Janice Ross, Administrative Assistant- BOC; and Amanda McKenzie, Temporary Assistant to CAO. Others in attendance include: Ed Koebel, Ed McDonald and Ben Mobley of Cavanaugh McDonald Consulting; Patti Keesler of Benefits Law Group; Laura Mathis and Daniel Cummings of the Middle Georgia Regional Commission; and Tom Wagner. News Media in attendance included: Mike Stucka of The Telegraph; Candace Adorka of 13 WMAZ TV; Perry Smith of FOX 24, and Melissa Lee of 41 WMGT. Chairman Sam Hart called the Work Session to order and stated that the purpose was to discuss the benefits package for City employees moving to the County as of July 1, Chairman Hart recognized Ms. Laura Mathis of the Middle Georgia Region Commission for her presentation. Ms. Mathis stated, this morning, there were seven (7) Topics of Discussion: - Pension - OPEB - Annual Leave - Sick Leave - Health Insurance - Hiring - Equipment Ms. Mathis stated that throughout the discussion there will be things that are underlined where they need some indication or action by the Commission, whether it s today or tomorrow, or in the very near term. She said there are some other things that the City is doing that she just wants the Commission to be aware of.

2 She stated, with regard to Pension Benefits, the City s plan and the County s plan (the County s plan as it was amended in May) are different in terms of the benefits. She stated: City of Macon Plan Bibb County Plan Pension Multiplier 1.52% Pension Multiplier 1.5% (up to first $1,250 avg. used in retirement monthly compensation) calculation formula then 1.9% used in retirement calculation formula Normal retirement age Normal Retirement Age 60 with 5 years of service 65 Sliding scale vesting 10-year vesting starting at Year 5 (100% At 15) Ms. Mathis stated that it was important to keep the differences in mind as they look at what the options are as to how they handle pension benefits for the affected employees. She stated that the County s actuaries and Patti Keesler were present and that they have done a lot of work in evaluating and comparing the two plans. She stated their team was joined by the City s actuaries and pension attorney to also look at options and they are present to answer any questions the Commission may have about the analysis that was done. Ms. Mathis stated that, basically, they looked at taking the two different pension benefit plans and looked at various options including what happens to an employee if their retirement with the City is simply frozen and they stop adding years of service and adding salaries to that calculation and they start day 1 as a new hire with Bibb County, what that would do in terms of pension benefits for the employee. She stated, with regard to Pension Options: Bibb County team and City of Macon team evaluated numerous options: Employees enroll in Bibb County without credit for years of service. Employees enroll in Bibb County with eligibility service. Employees enroll in Bibb County with eligibility and benefit service. Employees enroll in Bibb County with eligibility and benefit service with the adoption of a 3 rd tier pension plan that mirrors City plan. Next, Ms. Mathis did a Recap of Full-time Employees as follows: Normal Retirement 19 Early Retirement 17 Fully Vested 14 Partially Vested 19 Not Vested (Less than 5 years of service) 27 Total 96

3 Ms. Mathis stated that the proposal is for the 27 Non Vested employees (with less than 5 years of service) to come over to the County and will be treated as a new hire as of July 1 and be enrolled in the County s current retirement plan (2 nd tier plan) with no credit for City service. She stated it was be as though the County hired them off of the street, from a pension standpoint. Ms. Mathis stated that under the Pension Proposal from the City: Approximately 25 Non-vested employees would enroll in the County Retirement Plan (as amended May 2011) with no credit for City service. 69 Vested Employees remain in the City of Macon Pension Plan receiving their retirement benefit from Macon based on the added years of service and salaries with Bibb County. She stated to fund that: County would pay 16.85% (current county ARC) for the duration of the period that these employees are in active full-time service. Macon Plan would be frozen if the City makes changes to the plan, these employees would not be affected unless required by law. Next, Ms. Mathis stated To Implement This Proposal: Bibb County would adopt the City of Macon Pension Plan as a participating employer. City of Macon Committee of the Pensions and Retirement Systems will continue to administer and have discretionary authority over the Macon Pension Plan. Bibb County will not participate in the administration or management of the Macon Pension Plan. Ms. Mathis stated that one thing she would point out is the proposal is to lock in that percentage contribution from the County at the current rate of 16.85%. She stated, today, the City s ARC (Annual Required Contribution) is 17.50%. She stated that difference will be made up by the City. She stated in the event that in the future the City s pension rate goes down, the County is still stuck at 16.85%. Next, Ms. Mathis stated the Pension and OPEB consists of the following: If a City employee retires before July 1, 2012, they: Will receive retirement benefits from the City. Will have retiree health insurance (if they are under 65). Will not have a guaranteed job with Bibb County. If a City employee is in active status, meaning he/she has not retired on 7/1/2012, they: Are hired by Bibb County 7/1/2012. Are not entitled to retiree health insurance (regardless of age). Would remain in the City s retirement plan until they retire. Ms. Mathis stated the next issue was the Annual Leave Proposal which states: City of Macon will pay out unused annual leave. Bibb County: During 6-month probationary period, employees do not have leave. At the end of the probationary period: Employees earn leave based on their combined years of service with the City and County. Employees do not receive a lump sum of 40 hours of leave.

4 Uncompensated absences liability accrues faster for these 96 employees but there is no automatic or carryover liability. Next, Ms. Mathis stated the Sick Leave Proposal is as follows: City of Macon is considering payment to employees for some percentage of unused sick leave. Bibb County employees would earn 1.85 hours per week (same as all other employees). Next, Ms. Mathis stated the Health Insurance Proposal is as follows: City withholds premiums in the month where coverage is provided. County withholds premiums the month in advance of coverage; new hires have insurance 30 days after employment. Employees to maintain health insurance coverage through the transition and not double up on premiums. City of Macon will withhold normal insurance premiums in June and pay the County the amount needed for premiums. Under Hiring Issues, Ms. Mathis stated as it relates to the Recreation Summer Program: 36 seasonal employees will work from May 29 to July 20. City will hire and retain the 36 seasonal employees. County will reimburse the City from the Recreation Fund the cost from July 1 to July 20. Also, as it relates to Hiring Issues, Ms. Mathis stated the following: Recreation Grounds: Division split between City/County 4 occupied positions will transfer, remaining 7 positions are/or will be vacant at 6/30 With the maintenance of 693 acres of land, 4 filled positions during active playing season appears to be inadequate. Hiring process takes 2 to 3 months (approximate). Staff requests authorization to begin recruitment for grounds positions in order to have staff on board 7/1/12. Other Departments that may have hiring needs: Properties Finance Engineering Human Resources * Information Technology * Purchasing * *There was a consensus to add these departments to the list. Finally, with regard to Equipment Issues, Ms. Mathis stated the following: No grounds equipment or vehicles are available to the County since the City is retaining parks. Means that July 1, 2012, there is no equipment to maintain grounds.

5 Staff requests authorization to solicit bids for the necessary vehicles and equipment for the grounds division, SPLOST Recreation Equipment. Properties might have additional equipment/vehicle needs. Commissioner Edwards asked that any action on the Proposals as presented be deferred until the Commissioners (Committee of the Whole) meeting tomorrow so that all commissioners will have an opportunity to participate in the decisions. There was no opposition to the request. Mr. Ed Koebel suggested that an Offer Letter be given to the employees transferring to the County which spells out what they can expect in the way of benefits. There was a consensus of the Board that the information be reduced to writing. ACTION TAKEN: On motion of Commissioner Edwards, seconded by Commissioner Richardson and carried (4-0) the Board authorized Staff to begin recruitment for grounds positions in order to have staff on board 7/1/2012. The motion was broadened to include any additional vacancies from City departments. There being no further business, the meeting was adjourned. Shelia M. Thurmond, CCC Clerk of the Board