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HomeMy WebLinkAbout2011-10-12Tentative BOARD OF SUPERVISORS T E N T A T I V E OCTOBER 12, 2011 2:00 P.M. – ROOM 241 1. Call to Order. 2. Recognition of Virginia Wine Month. 3. Albemarle County Debt Financing – 2011 - Adoption of Resolution. 4. Brief Update on Board Attendance at Upcoming Meetings. 5. 2:15 p.m. - Work Session: Departmental Budget Reviews: a. Department of Social Services. b. Information Technology. 6. Recess. 7. 3:30 p.m. - Joint Meeting with School Board a. Total Compensation Report. b. Employee Benefits Cost Analysis c. From the Boards: Matters Not Listed on the Agenda. 8. 5:00 p.m. - VDoT Revenue Sharing Program, Request for Participation and Recommended Projects for Funding. (Deferred from October 5, 2011) 9. Adoption of Resolution: Northern Terminus of Route 29 Western Bypass. 10. Adjourn. Return to Board of Supervisors Home Page Return to County Home Page file:////coba-webapp01/BOSForms/Agenda/2011Files/Migration/20111012/00_Agenda.htm [10/7/2020 5:26:11 PM] COUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: Albemarle County Debt Financing - 2011 SUBJECT/PROPOSAL/REQUEST: Resolution approving a plan to finance and refinance certain public facilities projects through the issuance of revenue and refunding bonds by the Economic Development Authority of the County of Albemarle STAFF CONTACT(S): Messrs. Foley; Letteri; and Davis, and Ms. Burrell LEGAL REVIEW: Yes AGENDA DATE: October 12, 2011 ACTION: X INFORMATION: CONSENT AGENDA: ACTION: INFORMATION: ATTACHMENTS: Yes REVIEWED BY: BACKGROUND: On April 7, 2010, the Board of Supervisors adopted the County’s FY 11 Operating and Capital Improvement Program (CIP) budgets. The FY11 CIP budget, after amendments, included financing of $11,372,366 as a source of funding. On April 6, 2011, the Board of Supervisors adopted the County’s FY 12 Operating and CIP budgets. The adopted FY 12 CIP included financing of $10,549,920 as a source of funding. The County did not execute any financing during FY11. FY11 projects were funded using $11,372,366 of the capital fund balance anticipating that proceeds from this financing would be used to reimburse the fund balance. In addition, $19,225,778 of existing County debt has been identified that can be refinanced. DISCUSSION: The County’s Financial Advisors, Davenport and Company, presented a funding strategy overview to the Board on June 2, 2011. On September 14, 2011, Davenport followed-up with specific recommendations to the Board. Davenport proposed a lease financing through the Economic Development Authority of Albemarle County, Virginia (EDA), which is enabled to assist the County in financing local government facilities and equipment. Under the proposed strategy, the County would issue debt via a Public Sale using the EDA as the financing conduit in an amount not to exceed $39.6 million. Based on the County’s excellent credit rating, it is expected that the debt would be issued with credit ratings near AAA levels (in the high AA category). The financing structure contemplates that the EDA will issue lease revenue bonds (the “EDA Bonds”) in a public offering and loan the proceeds to the County for use in refunding the 2003 and 2009 lease financings as well as pay the costs of the new projects. The EDA Bonds will be secured by the lease structure described in Attachment A. To support the marketability of the Bonds, the County Executive, in consultation with the Financial Advisor, may include one or more of the following County-owned properties in the proposed Ground Lease and the Financing Lease: (a) the 5th Street County Office Building, (b) the 401 McIntire Road County Office Building, and (c) the County’s Monticello Fire Station property. The County will make lease payments to the EDA to enable it to make debt service payments associated with this debt issuance, subject to appropriation. The County’s bond counsel, Hunton and Williams, has prepared a summary of the County’s proposal to finance the FY11 and FY12 CIP financed projects, as well as refinancing and restructuring certain outstanding debt (Attachment A). The resolution necessary to advance this borrowing plan is also attached (Attachment B). Other documents incorporated by reference in the resolution will be circulated prior to the Board meeting. BUDGET IMPACT: Interest rates today are near 40-year lows, and thus very favorable for the County. The County may realize debt service savings via a strategic refunding of approximately $16 million if interest rates remain favorable. Restructuring of $2 million and strategic structuring of the new money could produce additional debt service savings. RECOMMENDATIONS: Staff recommends that the Board adopt the attached Resolution (Attachment B) authorizing the proposed plan of lease financing through the EDA. ATTACHMENTS A - Lease Finance Summary B - Board of Supervisors Resolution Return to agenda Overview of Financing Structure for the Proposed Lease Revenue Bond Financing through the Economic Development Authority 1. The County has determined to (a) refund its 2003 lease financing (that financed costs related to the County’s Fifth Street public safety building and the County’s capital contribution toward costs of a new juvenile and domestic relations court complex), (b) refund its 2009 lease financing (that financed costs related to the new Hollymead fire station and related equipment as well as replacement costs of certain fire and EMS apparatus) and (c) finance portions of its 2011 and 2012 capital improvement plan expenditures. Based on the recommendation of the County’s financial advisor and after consultation with counsel, the County has determined to undertake these objectives through a bond issuance with the Economic Development Authority of Albemarle County, Virginia (the “EDA”). The EDA is authorized under provisions of the Industrial Development Authority and Revenue Bond Act to assist the County in financing and refinancing local government facilities and equipment. 2. The financing structure contemplates that the EDA will issue lease revenue bonds (the “EDA Bonds”) in a public offering and loan the proceeds to the County for use in refunding the 2003 and 2009 lease financings as well as pay the costs of the new money projects. The EDA Bonds will be secured by the lease structure described below. 3. Under the lease structure, the County will lease to the EDA one or more of the following County properties pursuant to the terms of a prime (or ground) lease -- the main County Office Building (401 McIntire Road), the Fifth Street public safety building (1600 Fifth Street) or the Monticello fire station property. As such, the County will never give up fee simple title to the leased property. The prime lease will end upon the earlier of (a) a date usually five years after the final maturity of the EDA Bonds and (b) the date on which final payment is made on the EDA Bonds. Based on feedback from the rating agencies as to the desired loan to value ratio (i.e. the value of the leased collateral compared to the principal amount of the EDA Bonds), the County Executive will decide how much leased collateral will be necessary to achieve favorable ratings. 4. The EDA will lease the leased property back to the County for its use pursuant to the terms of a Financing Lease Agreement. The County will then undertake to make lease payments to the EDA in amounts and at times sufficient to enable the EDA to pay debt service on the EDA Bonds. The County’s payment obligations under the Financing Lease Agreement will be subject to appropriation from time to time by the Board of Supervisors of sufficient monies for such purpose. In the unlikely event of non-appropriation or default, the Trustee for the EDA Bonds will be allowed to evict the County from the leased property and re-lease it to other parties, but only through the term of the prime lease. 26222.000010 EMF_US 37144300v3 RESOLUTION APPROVING A PLAN TO FINANCE AND REFINANCE CERTAIN PUBLIC FACILITIES PROJECTS THROUGH THE ISSUANCE OF REVENUE AND REFUNDING BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE COUNTY OF ALBEMARLE WHEREAS, the Industrial Development Authority of Albemarle County, Virginia (now the Economic Development Authority of Albemarle County, Virginia) (the “Authority”), pursuant to the Industrial Development and Revenue Bond Act (the “Act”) under which it is created, is authorized to exercise all the powers set forth in the Act, which include, among other things, the power to make loans to, among others, a county in furtherance of the Act, to finance or refinance and lease facilities for use by, among others, a county, to issue its revenue bonds, notes and other obligations from time to time for such purposes and to pledge all or any part of its revenues and receipts derived from payments received by the Authority in connection with its loans or from the leasing by the Authority of such facilities or from any source, as security for the payment of principal of and interest on any such obligations; and WHEREAS, the Authority has previously issued its $18,535,000 Public Facility Revenue Bonds (Albemarle County Project), Series 2003 (the “2003 Bonds”), the proceeds of which were loaned to Albemarle County, Virginia (the “County”) pursuant to a Financing Agreement (as defined below), to finance (a) the acquisition, renovation and equipping of new administrative facilities for the County located at 1600 5th Street, Charlottesville, Virginia (the “5th Street Building”), and (b) the County’s capital contribution to the costs of acquiring, constructing and equipping, in conjunction with the City of Charlottesville, a juvenile courts facility and related improvements; WHEREAS, the Authority has previously issued its $6,841,021 Public Facility Revenue Note (Albemarle County Fire Station), Series of 2009 (the “2009 Note”), the proceeds of which were loaned to the County pursuant to a Note Purchase Agreement and Lease Agreement dated as of June 1, 2009, among the Board of Supervisors of Albemarle County, Virginia (the “Board of Supervisors”), the Authority and SunTrust Bank, as purchaser of the 2009 Note, to finance and refinance the costs of acquiring, constructing and equipping a fire station known as the Hollymead Fire Station and replacing certain fire and EMS apparatus; WHEREAS, the Board of Supervisors desires to undertake, in conjunction with the Authority, the financing of certain projects from the County’s Capital Improvement Plan for Fiscal Years 2011 and 2012 (collectively, the “CIP Project”); and WHEREAS, the County desires to finance the CIP Project and realize interest rate savings by requesting the Authority to issue its Public Facility Revenue and Refunding Bonds (Albemarle County Project), Series 2011 (the “Bonds”), and use the proceeds to (a) finance the CIP Project, (b) refund the 2003 Bonds and the 2009 Note (together, the “Refunded Bonds”) and (c) pay the related costs of issuing the Bonds and refunding the Refunded Bonds; and WHEREAS, the Bonds will be secured in part by payments appropriated from time to time by the Board of Supervisors and payable to the Authority in accordance with the terms of the Financing Agreement; and 2 WHEREAS, to improve the marketing of the Bonds at attractive interest rates, Davenport & Company LLC, the County’s financial advisor (the “Financial Advisor”) has recommended that the County consider providing additional security for the Bonds by undertaking a lease/lease-back financing arrangement with the Authority of certain County property (the “Property”); and WHEREAS, there have been circulated prior to this meeting drafts of the following documents (collectively, the “Documents”), proposed in connection with the issuance and sale of the Bonds and the refunding of the Refunded Bonds: (a) Second Supplemental Agreement of Trust, supplementing the Agreement of Trust dated as of March 1, 2003, between the Authority and U.S. Bank, as successor trustee, (the “Trustee”) as previously supplem ented (collectively, the “Trust Agreement”), all between the Authority and the Trustee, including the form of the Bonds, pursuant to which the Bonds are to be issued and which is to be acknowledged and consented to by the County; (b) First Supplemental Financing Agreement (the “Supplemental Financing Agreement”), supplementing a Financing Agreement dated as of March 1, 2003 (collectively, the “Financing Agreement”), both between the Authority and the County, pursuant to which the Authority will loan the pro ceeds of the Bonds to the County and the County will undertake, subject to appropriation, to make payments to the Authority in amounts sufficient to pay the principal of and premium, if any, and interest on the Bonds and certain other related costs; (c) Preliminary Official Statement of the Authority relating to the public offering of the Bonds (the “Preliminary Official Statement”); (d) Notice of Sale (attached as Appendix G to the Preliminary Official Statement) (the “Notice of Sale”) (applicable only if the Bonds are sold through a competitive sale); (e) Continuing Disclosure Agreement (attached as Appendix F to the Preliminary Official Statement), pursuant to which the County agrees to undertake certain continuing disclosure obligations with respect to the Bonds; (f) Deed and Agreement of Ground Lease (the “Ground Lease”), between the Authority and the County, conveying to the Authority a leasehold interest in certain County real property as hereinafter described (the “Property”); (g) Deed and Agreement of Financing Lease, between the Authority and the County (the “Financing Lease”), conveying to the County a subleasehold interest in the Property; (h) Assignment Agreement (the “Assignment Agreement”), between the Authority and the Trustee, assigning to the Trustee certain rights of the Authority under the Ground Lease and the Financing Lease; and 3 (i) Bond Purchase Agreement (the “Bond Purchase Agreement”), between the Authority and an underwriter (to be selected by the Authority and the County), and which is to be acknowledged by the County (applicable only if the Bonds are sold through a negotiated sale); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF ALBEMARLE COUNTY, VIRGINIA: 1. The following plan for financing the CIP Project and refunding the Refunded Bonds is hereby approved. The Authority will issue the Bonds in an aggregate principal amount not to exceed $39,600,000. The Authority will use the proceeds of the Bonds to finance the CIP Project, refund the Refunded Bonds, and pay the costs of issuing the Bonds and refunding the Refunded Bonds. Pursuant to the Financing Agreement, the County will undertake to make certain Basic Payments and Additional Payments (each as defined in the Financing Agreement) to the Authority in amounts sufficient to amortize the Bonds, to pay the fees or expenses of the Authority and the Trustee and to pay certain other related costs. The obligation of the Authority to pay principal of and premium, if any, and interest on the Bonds will be limited to Basic Payments and Additional Payments received from the County. The Bonds will be secured in part by an assignment of the Basic Payments and certain Additional Payments due under the Financing Agreement, all for the benefit of the holders of the Bonds. The undertaking by the County to make Basic Payments and Additional Payments will be subject to the appropriation by the Board of Supervisors from time to time of sufficient amounts for such purposes. As additional security for the Bonds, the County will grant to the Authority a leasehold interest in the Property pursuant to the terms of the Ground Lease. The Authority will sublease the Property to the County pursuant to the terms of the Financing Lease. The County Executive is authorized to determine, in consultation with the Financial Advisor as to what would improve the marketing of the Bonds at attractive interest rates, which one or more of the following County- owned properties shall constitute the “Property” for purposes of the Ground Lease and the Financing Lease: (a) the 5th Street Building, (b) the County’s administrative facilities located at 401 McIntire Road, Charlottesville, Virginia, and (c) the County’s Monticello Fire Station property (and for which the County’s Hollymead Fire Station property may subsequently be substituted when the County acquires title). Payments due under the Financing Lease will be credited in an amount and time to the extent the County makes all Basic Payments and Additional Payments due under the Financing Agreement with respect to the Bonds. The plan of financing the CIP Project and refunding the Refunded Bonds shall contain such additional requirements and provisions as may be approved by the County Executive and the Chairman of the Authority. 2. The Board of Supervisors, while recognizing that it is not empowered to make any binding commitment to make appropriations beyond the current fiscal year, hereby states its intent to make appropriations in future fiscal years in amounts sufficient to make all payments due under the Financing Agreement, which payments, as applicable, shall be credited toward the payment of amounts due under the Financing Lease, and hereby recommends that future Board of Supervisors do likewise during the term of the Financing Agreement and, if applicable, the Financing Lease. The Board of Supervisors hereby confirms that the CIP Project is essential to the efficient operation of the County and the Board of Supervisors anticipates that the CIP 4 Project will continue to be essential to the operation of the County during the term of the Financing Agreement and the Financing Lease. 3. The Chairman of the Board of Supervisors and the County Executive, either of whom may act, are hereby authorized and directed to execute the Documents to which the County is a signatory, which shall be in substantially the forms circulated prior to this meeting, which are hereby approved, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the officer signing such Documents, the execution and delivery thereof to constitute conclusive evidence of the officer’s approval of any such completions, omissions, insertions and changes. The County Attorney is hereby authorized to cause the Ground Lease, the Financing Lease, the Assignment Agreement and other documents as are necessary to be recorded in the Clerk’s Office of the Circuit Court of Albemarle County. 4. In making completions to the Supplemental Financing Agreement and the Financing Lease, the County Executive, in collaboration with Financial Advisor and the Authority, shall provide for Annual Payments (under the Financing Agreement) and Basic Payments (under the Financing Lease) in amounts equivalent to the payments on the Bonds, which shall be sold to the purchaser thereof on terms as shall be satisfactory to the County Executive; provided that the Annual Payments/Basic Payments shall be equivalent to the Bonds (a) maturing in installments or subject to mandatory sinking fund redemption ending not later than December 31, 2032; (b) having a true or “Canadian” interest cost not exceeding 5.00% (taking into account any original issue discount or premium); (c) being subject to optional redemption, if at all, at a premium not to exceed 2.00% of their principal amount; and (d) being sold to the purchaser thereof at a price not less than 98% of the aggregate principal amount thereof (without taking into account any original issue discount or premium). The County Executive is also authorized to approve a lesser principal amount for the Bonds, a maturity schedule (including serial maturities and term maturities for the Bonds ) and the redemptions provisions of the Bonds, all as the County Executive shall determine to be in the best interest of the County. 5. (a) The Board of Supervisors approves the following terms of the sale of the Bonds. The Bonds shall be sold through a competitive sale or a negotiated sale, as the County Executive, in collaboration with the Financial Advisor and the Authority, determines to be in the best interests of the County. (b) If the County Executive determines that the Bonds shall be sold by competitive sale, the County Executive is authorized to receive bids for such Bonds and award such Bonds to the bidder providing the lowest “true” or “Canadian” interest cost, subject to the limitations set forth in Section 4. Following a competitive sale, the County Executive shall file a certificate with the Authority and the Board of Supervisors setting forth the final terms of the Bonds. The actions of the County Executive in selling the Bonds by competitive sale shall be conclusive, and no further action with respect to the sale and issuance of the Bonds shall be necessary on the part of the Board of Supervisors. (c) If the Bonds are sold by competitive bid, the County Executive, in collaboration with the Financial Advisor, is authorized and directed to take all proper steps to advertise the 5 Bonds for sale substantially in accordance with the form of Notice of Sale, which is hereby approved; provided that the County Executive, in collaboration with the Financial Advisor, may make such changes in the Notice of Sale not inconsistent with this Resolution as he may consider to be in the best interest of the County. (d) If the County Executive determines that the Bonds shall be sold by negotiated sale, the County Executive is authorized, in collaboration with the Financial Advisor and the Authority, to choose an investment bank or firm to serve as underwriter for the Bonds and to execute and deliver to the underwriter a bond purchase agreement (the “Bond Purchase Agreement”) substantially in the form circulated to the Board prior to this meeting, which is hereby approved, with such completions, omissions, insertions and changes as approved by the County Executive and necessary to reflect final terms of the Bonds. The execution thereof by the County Executive shall constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. Following a negotiated sale, the County Executive shall file a copy of the Bond Purchase Agreement with the records of the Board. The actions of the County Executive in selling the Bonds by negotiated sale to the underwriter shall be conclusive, and no further action with respect to the sale and issuance of the Bonds shall be necessary on the part of the Board of Supervisors. 6. The Preliminary Official Statement in the form circulated prior to this meeting is approved with respect to the information contained therein (excluding information pertaining to the Authority). The County authorizes distribution of the Preliminary Official Statement to prospective purchasers of the Bonds in a form deemed to be “near final,” within the meaning of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”), with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the County Executive. Such distribution shall constitute conclusive evidence that the County has deemed the Preliminary Official Statement to be final as of its date within the meaning of the Rule, with respect to the information therein pertaining to the County. The County Executive is authorized and directed to approve such completions, omissions, insertions and other chan ges to the Preliminary Official Statement that are necessary to reflect the terms of the sale of the Bonds, determined as set forth in paragraph 4, and the details thereof and that are appropriate to complete it as an official statement in final form (the “Official Statement”) and distribution thereof to the purchaser of the Bonds shall constitute conclusive evidence that the County has deemed the Official Statement final as of its date within the meaning of the Rule. 7. The County covenants that it shall not take or omit to take any action the taking or omission of which shall cause the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations thereunder, or otherwise cause interest on the Bonds to be includable in the gross income for Federal income tax purposes of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the County shall comply with any provision of law that may r equire the County at any time to rebate to the United States of America any part of the earnings derived from the investment of the gross proceeds of the Bonds. The County shall pay from its legally available general funds any amount required to be rebated to the United States of America pursuant to the Code. 6 8. All costs and expenses in connection with the financing of the CIP Project, the refunding of the Refunded Bonds and the issuance of the Bonds, including the Authority’s fees and expenses and the fees and expenses of bond counsel, counsel for the Authority, and the Financial Advisor for the sale of the Bonds shall be paid from the proceeds of the Bonds or other legally available funds of the County. If for any reason the Bonds are not issued, it is understood that all such expenses shall be paid by the County from its legally available funds and that the Authority shall have no responsibility therefor. 9. Any authorization herein to execute a document shall include authorization to deliver it to the other parties thereto and to record such document where appropriate. 10. All other acts of the County Executive and other officers of the County that are in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Bonds and the refunding of the Refunded Bonds are hereby approved and ratified. 11. This Resolution shall take effect immediately. 26222.000010 EMF_US 37137499v6 COUNTY OF ALBEMARLE EXECUTIVE SUMMARY AGENDA TITLE: Total Compensation Report SUBJECT/PROPOSAL/REQUEST: Acceptance of market data for use in budget development for FY12-13, subject to available revenues. STAFF CONTACT(S): Messers. Foley, Letteri and Davis, and Ms. Gerome LEGAL REVIEW: Yes AGENDA DATE: October 12, 2011 ACTION: X INFORMATION: CONSENT AGENDA: ACTION: INFORMATION: ATTACHMENTS: Yes REVIEWED BY: BACKGROUND: In November 2000, the Board of Supervisors and the School Board (Boards) approved a Total Compensation Strategy to target employee salaries at 100% of an adopted market median and benefits slightly above market levels. The adopted market approved by the Boards is shown in Attachment 1. The Boards have continued to recognize the importance of providing competitive salaries and benefits as an increasing number of employees reach eligibility for retirement benefits every year and staff has continued to adapt to the work of a changing environment. Because it is critical for Albemarle County to focus on retaining existing employees and recruiting skilled new employees, the County’s total compensation plan is designed and evaluated in light of those objectives. This report details the supporting analysis for the recommendations to achieve the adopted Total Compensation Strategy for last year and for the Boards to consider in giving budget guidance to the County Executive and Superintendent for next year. These projections are presented to the Boards for their information regarding the FY12- 13 budget process. It is noted that all final funding is subject to, and based upon, available revenues and the Boards’ direction. This report provides information on: 1) Compensation Strategies ( Attachments 2 and 3) 2) Benefits Strategies: Medical, Dental and VRS (Attachments 4 and 5 ) 3) Wellness Updates (Attachment 6 and 7) DISCUSSION: 1) Compensation Strategies The adopted Total Compensation Strategy, jointly adopted by the Boards, is detailed in attachments 2 and 3. Last year, the projections based on the adopted strategy presented in October were to increase the classified salary scale by 1%, fund a classified merit increase of 2.88% and fund teacher increases by 2.25%. However, due to revenue shortfalls and the prevailing market trend of limited increases, the Boards funded a 1% salary increase for classified employees and a 1.95% increase to be applied to the teachers scale. Additionally, the budgeted medical increase was funded from the Health Care Reserve fund, resulting in a cost savings. As a result of this savings, the Boards were able to provide a one-time bonus payment of $350 to employees. As the information in attachment 2 indicates, based on a review of our adopted market and the Worldatwork projection of 3%, the actions necessary to achieve the adopted strategy based on the adopted process include a 3.35% salary increase and a teacher scale and step increase of 3%. However, given the continuing state of the economy and the challenges faced by local governments and school divisions, for the last three years actual salary increases have been less than the Worldatwork projections. AGENDA TITLE: Total Compensation Report October 12, 2011 Page 2 2) Benefits Strategies The adopted Benefits Strategy, jointly adopted by the Boards, is to maintain a benefit program that is slightly above market. Medical insurance and the VRS benefit are the largest components of that benefit strategy. The information provided in the attached Benefits Strategies detail the analysis of those benefit programs and recommendations to remain consistent with the jointly adopted strategy. In order to comprehensively evaluate the medical plan, staff worked with Keiter, Slabaugh, Penny & Holme, LLC (KSPH) to develop a scoring model based on plan design features, premium costs to employees, and Board contribution amounts. This model indicates that we are slightly above our target, both in terms of employee/employer contribution amounts and in several plan design areas. Over the next several months, the Health Care Executive Committee (HCEC) will consider the feedback gained from employees via focus groups and an online survey while reviewing options to continue bringing the plan in line with our market strategy for the next plan year. The Virginia General Assembly adopted several VRS benefit plan changes for covered employees hired on or after July 1, 2010. One change stipulated that employees hired on or after July 1, 2010 with no prior service credit (VRS ‘Plan 2’ employees) must pay their VRS member contribution unless their employer elects to pick -up (in whole or in part) the five percent (5%) member contribution. Based on marked data indicating that most localities and school divisions in our adopted market and throughout the state covered their employees’ contribution, last year the Boards elected to pick-up the 5% member contribution amount. Market data indicates that this continues to be the prevailing trend. An update on wellness programs offered to employees is detailed in Attachment 6 for informational purposes. BUDGET IMPACT: These projections are presented to the Boards for consideration in providing direction for the FY12-13 budget preparation. It is noted that all final funding is subject to, and based upon, available revenues and Board direction. RECOMMENDATIONS: Staff recommends approval of the following: 1. Establish a budget target for providing a 1-2% salary increase for classified employees and teachers. Final recommendations by the County Executive and Superintendent will be based on additional market data and the availability of adequate funding. 2. Use a portion of the Heath Care Reserve Fund to offset any increase in employee premium and to reduce the employer premium costs. 3. Plan for a 7% increase in dental costs. 4. Continue to pick-up the five percent (5%) member contribution for VRS and for VRS Plan 2 employees. ATTACHMENTS 1-Adopted Competitive Market 2-Compensation Strategy 3-Teacher Scale Relative to Market 4-Benefits Strategy 5-Medical Premium and Cost Market Data 6-Wellness Updates 7-Final Report MSWLP Session 2 Return to agenda Attachment #1 Augusta County Hanover County City of Charlottesville James City County City of Chesapeake Loudoun County City of Danville Louisa County City of Harrisonburg Madison County City of Lynchburg Montgomery County City of Roanoke Nelson County City of Staunton Orange County City of Virginia Beach Prince William County City of Williamsburg Roanoke County Buckingham County Rockingham County Chesterfield County Spotsylvania County Fauquier County Albemarle County Service Authority Fluvanna County Martha Jefferson Hospital Greene County UVA Health Systems Albemarle County Adopted Competitive Market Attachment #2 Compensation Strategy To maintain competitive compensation based on the adopted strategy, two separate, but related actions are required: 1) Ensure a competitive salary scale so that the County/School Division is able to attract and recruit new employees. 2) Ensure current employees are rewarded for job performance by maintaining internal equity in their pay range and also maintaining market competitiveness for similar skills through granting competitive salary increases. To adhere to the Boards' adopted strategy, we implement the following processes each year: 1) Annually survey the adopted market to determine the salary scale adjustment implemented in those localities/schools for the current fiscal year. 2) Annually survey the adopted market to determine the average total salary increase granted employees in those localities/schools for the current fiscal year. 3) This market data is analyzed to ascertain where the salary scales and increases (both classified employee and teacher) for Albemarle County stand relative to the adopted market. 4) Obtain data on what other organizations are projecting for salary increases for the next fiscal year through a compensation database (WorldatWork, Eastern Region). This data is used to project the merit increase percentage and develop the teacher scale, including step increases. Step 1: FY11-12. Survey the market to determine if the scale adjustment implemented for classified/administrator and teacher pay scales achieved the strategy. Classified/Administrator Scale Adjustments - Target median of adopted market. A competitive scale is important in attracting new hires. For classified employees, the scale adjustment impacts new hires and any employees with pay rates that might fall below the new minimums. The Albemarle County scale has not been adjusted since FY08/09. The salary scale data from our adopted market for FY 10-11 indicates that other organizations did not increase their salary scales. Step 2:FY11-12. Survey the market to determine if the total salary increase implemented for classified pay achieved the strategy. Classified Total Salary Increases - Target median of adopted market The salary increase for FY11-12 was 1%. The median salary increase amount implemented by our adopted market in FY11-12 was also 1%. However, we were below the market by -0.35% from FY08-09, which results in our salaries remaining below market by -0.35%. Teacher Scale Adjustments - Target top quartile (75th percentile) of adopted market We applied a 1.95% increase to the teacher scale. Market data indicates that we are in the top quartile at minimum, 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. This is shown in Attachment # 3. Attachment #2 Step 3: Projections for FY12-13. Based on current market position and scale/salary projections, determine the changes necessary to achieve the Joint Board approved strategy using the WorldatWork, Eastern Region data. Classified/Administrator Scale Adjustments The scale adjustment impacts new hires and any employees with pay rates below the new minimums.  Adopted Market Salary Scale Median: 0%  FY12-13 scale adjustment: The scale adjustment is considered relative to the merit increase to minimize compression issues. Classified/Administrator Salary Increase (merit percentage)  Adopted Market Median increase: 1%  Albemarle Salary Increase Relative to Market: -0.35%  WorldatWork projection for Eastern Region (including Virginia): 3%  FY12-13 salary increase: 3.35% Teacher Scale and Teacher Average Salary Increase  Albemarle Teacher Scale Relative to Market-meet targets  Teacher scale - based on the projected total increase from WorldatWork: 3.00%  FY12-13 scale and step increase: 3%, increase would include the step increase. WorldatWork Projections Compared to Adopted Market As the information below illustrates, the WorldatWork projection generally has been a reasonable indicator to rely on for our market projections. However, given the continuing state of the economy and the challenges faced by local governments and school divisions, for the last three years this projection has not been as accurate. 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 WorldatWork Projection 3.7% 3.65% 3.65% 4% 3.3% 2.25% 1.95% Adopted Market Median Increase 4% 4% 4% 3.63% 0% 0% 1% Teacher Longevity Stipends The market does apply value to teachers that exceed the typical 30 year career teaching scale; however compensation for experience beyond the adopted scales is based upon a stipend. For Albemarle County Schools the stipend is $200 for each year beyond the end of the teacher scale. It appears that our stipend is consistent with our market strategy and within market ranges. Lump Sum Increases for Employees at or Near Pay Grade Maximum Prior to 2009, there were many years where there was a merit increase and the pay grade salary scale adjusted. Typically, these salary scale increases were not as great as the merit increase percent. For those employees with salaries at or very near maximum, the effect was Attachment #2 that their base salaries would be increased to the extent that the newly-adjusted salary scale would allow. Additionally, there was some consideration given to these employees that were ‘losing money’, and for a number of years they received one-time a lump sum payment equal to the amount of money that was not put into their base salaries but that they would have theoretically received over the course of the following year if they were not capped. In 2011, the scale was not increased. As a result, employees currently at maximum would receive no increase at all or very little if they are near maximum. Therefore, consistent with past practice, a lump-sum increase for those affected employees will be provided. Attachment #3 Locality Minimum 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years Maximum 1 Augusta County Schools $36,300 $36,811 $38,334 $40,694 $43,195 $46,185 $50,246 $56,371 2 Buckingham County Schools $36,958 $37,116 $38,563 $40,170 $43,276 $50,989 $53,560 $53,560 3 Charlottesville City Schools $41,546 $44,143 $47,718 $51,634 $55,488 $58,985 $62,875 $62,875 4 Chesapeake City Schools $38,616 $41,001 $44,936 $49,613 $54,319 $56,990 $60,478 $60,478 5 Chesterfield County Schools $38,954 $38,954 $41,698 $45,129 $48,558 $51,989 $55,418 $59,112 6 Danville City Schools $35,585 $37,364 $38,432 $40,923 $46,261 $49,819 $53,378 $56,936 7 Fauquier County Schools $40,000 $40,500 $43,461 $47,993 $49,968 $49,968 $49,968 $49,968 8 Fluvanna County Schools $40,047 $40,047 $44,332 $48,075 $54,943 $57,397 $59,853 $62,305 9 Greene County Schools $39,030 $40,401 $42,462 $44,628 $46,904 $49,297 $51,812 $51,812 10 Hanover County Schools $40,040 $40,999 $42,138 $44,287 $47,838 $52,521 $57,772 $64,760 11 Harrisonburg City Schools $39,214 $39,618 $41,641 $44,394 $47,377 $51,385 $56,507 $62,679 12 Wmsburg/James City County Schools $38,077 $39,029 $47,553 $49,961 $49,961 $49,961 $49,961 $49,961 13 Loudoun County Schools $43,715 $44,927 $50,052 $59,735 $69,925 $81,852 $86,162 $86,162 14 Louisa County Schools $40,370 $40,979 $43,267 $46,566 $50,957 $55,613 $60,091 $63,023 15 Lynchburg City Schools $32,811 $35,156 $38,342 $41,816 $45,606 $49,738 $59,710 $61,818 16 Madison County Schools $37,067 $37,825 $39,754 $41,782 $44,131 $46,958 $53,998 $53,998 17 Montgomery County Schools $34,570 $36,364 $39,562 $43,041 $46,826 $50,943 $55,424 $55,424 18 Nelson County Schools $39,643 $39,643 $41,029 $42,416 $43,802 $47,129 $54,891 $54,891 19 Orange County Schools $37,094 $38,284 $40,513 $42,582 $44,757 $49,635 $53,473 $58,779 20 Prince William County Schools $42,863 $45,808 $53,919 $63,320 $74,217 $86,851 $89,610 $89,610 21 Roanoke City Schools $36,602 $36,602 $37,494 $39,997 $52,197 $54,223 $56,624 $56,624 22 Roanoke County Schools $35,000 $37,730 $40,199 $42,902 $45,606 $53,481 $55,009 $57,125 23 Rockingham County Schools $38,000 $38,342 $39,231 $41,404 $43,765 $47,382 $52,297 $54,555 24 Spotsylvania County Schools $37,959 $39,583 $42,861 $48,493 $54,866 $62,075 $70,232 $77,523 25 Staunton City Schools $36,550 $37,074 $38,539 $40,810 $44,444 $48,386 $51,694 $51,694 26 Virginia Beach City Schools $38,596 $40,463 $45,007 $49,552 $54,097 $58,641 $63,187 $65,913 27 Albemarle County Schools $40,839 $43,943 $47,047 $50,958 $54,869 $58,596 $62,324 $63,069 Median:$38,337 $39,306 $41,670 $44,341 $47,608 $51,187 $55,421 $57,952 ACPS compared to median 6.5%11.8%12.9%14.9%15.3%14.5%12.5%8.8% Difference from median $2,503 $4,637 $5,378 $6,618 $7,262 $7,409 $6,903 $5,117 Compared to 7th highest $839 $3,443 $2,715 $2,465 $772 $1,606 $2,233 $194 Rank 0 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years Maximum 1 $43,715 $45,808 $53,919 $63,320 $74,217 $86,851 $89,610 $89,610 2 $42,863 $44,927 $50,052 $59,735 $69,925 $81,852 $86,162 $86,162 3 $41,546 $44,143 $47,718 $51,634 $55,488 $62,075 $70,232 $77,523 4 $40,370 $41,001 $47,553 $49,961 $54,943 $58,985 $63,187 $65,913 5 $40,047 $40,999 $45,007 $49,613 $54,866 $58,641 $62,875 $64,760 6 $40,040 $40,979 $44,936 $49,552 $54,319 $57,397 $60,478 $63,023 7 $40,000 $40,500 $44,332 $48,493 $54,097 $56,990 $60,091 $62,875 8 $39,643 $40,463 $43,461 $48,075 $52,197 $55,613 $59,853 $62,679 9 $39,214 $40,401 $43,267 $47,993 $50,957 $54,223 $59,710 $62,305 10 $39,030 $40,047 $42,861 $46,566 $49,968 $53,481 $57,772 $61,818 11 $38,954 $39,643 $42,462 $45,129 $49,961 $52,521 $56,624 $60,478 12 $38,616 $39,618 $42,138 $44,628 $48,558 $51,989 $56,507 $59,112 13 $38,596 $39,583 $41,698 $44,394 $47,838 $51,385 $55,424 $58,779 14 $38,077 $39,029 $41,641 $44,287 $47,377 $50,989 $55,418 $57,125 15 $38,000 $38,954 $41,029 $43,041 $46,904 $50,943 $55,009 $56,936 16 $37,959 $38,342 $40,513 $42,902 $46,826 $49,968 $54,891 $56,624 17 $37,094 $38,284 $40,199 $42,582 $46,261 $49,961 $53,998 $56,371 18 $37,067 $37,825 $39,754 $42,416 $45,606 $49,819 $53,560 $55,424 19 $36,958 $37,730 $39,562 $41,816 $45,606 $49,738 $53,473 $54,891 20 $36,602 $37,364 $39,231 $41,782 $44,757 $49,635 $53,378 $54,555 21 $36,550 $37,116 $38,563 $41,404 $44,444 $49,297 $52,297 $53,998 22 $36,300 $37,074 $38,539 $40,923 $44,131 $48,386 $51,812 $53,560 23 $35,585 $36,811 $38,432 $40,810 $43,802 $47,382 $51,694 $51,812 24 $35,000 $36,602 $38,342 $40,694 $43,765 $47,129 $50,246 $51,694 25 $34,570 $36,364 $38,334 $40,170 $43,276 $46,958 $49,968 $49,968 26 $32,811 $35,156 $37,494 $39,997 $43,195 $46,185 $49,961 $49,961 Albemarle $40,839 $43,943 $47,047 $50,958 $54,869 $58,596 $62,324 $63,069 Top Quartile $40,000 $40,463 $43,461 $48,075 $52,197 $55,613 $59,853 $62,875 Difference $839 $3,480 $3,586 $2,883 $2,672 $2,983 $2,471 $194 This Chart for graph building purposes only: 0 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years Maximum min $40,000 $40,500 $44,332 $48,493 $54,097 $56,990 $60,091 $62,875 Top Quartile $3,715 $5,308 $9,587 $14,827 $20,120 $29,861 $29,519 $26,735 Albemarle $40,839 $43,943 $47,047 $50,958 $54,869 $58,596 $62,324 $63,069 Min 5 years 10 years 15 years 20 years 25 years 30 years Maximum Difference from Top Quartile 2011-12 $839 $3,480 $3,586 $2,883 $2,672 $2,983 $2,471 $194 Difference from Top Quartile 2010-11 $1,197 $2,695 $2,724 $1,267 -$1,081 -$665 $250 N/A Teacher Salary Scales 2011-12 Rank Order Teacher Salary Scales 2011-12 Attachment #3 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 0 Years 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years Maximum Annual Salary Experience Teacher Salary Market Comparison 2011-2012 min Albemarle Attachment #3 -$1,200 -$200 $800 $1,800 $2,800 $3,800 $4,800 Min 5 years 10 years 15 years 20 years 25 years 30 years Maximum Experience Albemarle Teacher Salaries Compared to Top Quartile Difference from Top Quartile 2011-12 Difference from Top Quartile 2010-11 Attachment #4 Benefits Strategy Medical Insurance As the medical plan is a critical component of the benefits package, the plan design and employee premium levels are carefully reviewed every year. The Health Care Executive Committee (HCEC) works routinely with Mr. Tom Mackay, our benefits consultant wit h KSPH Employee Benefit Management, to review our health care plan, claims experience and reserve balance. The goals of the HCEC in developing our recommendations for the 2011-2012 medical plans were to:  continue to offer affordable and market competitive options  maintain reserves at approximately 25% of claims  ensure plans are in compliance with Health Care Reform  maintain our competitive position for benefits (slightly above market ) Medical Plan Design To provide options for employees designed to meet individual needs that also offer affordable health care choices, three plans with varying co-pays and premiums have been offered for several years. In order to maintain comparability with other health plans and for cost savings, the HCEC reviewed a number of plan design changes, particularly to the high plan. As our high plan has a rich plan design, we have made changes over the last two years to bring the plan closer to that of our market. The following plan changes were made effective October 1, 2011:  High/Middle plans: o ER co-pay increases to $200 (from $150) o Outpatient mental health services will have a $15 co-pay (equivalent to the PCP co-pay) o Rx co-pays at $7/30/50 (generic/preferred brand/non-preferred brand); this is a $5 increase on non-preferred brands only  Low option plan: o PCP/Specialists co-pays increase to $25/$40 (from $20/35) o Outpatient mental health services will have a $25 co-pay (equivalent to the PCP co-pay) Rx co-pays at $7/35/60 (from $7/30/50). Medical Scoring Analysis The adopted benefits strategy is to target benefits slightly above market (105 th percentile). The benefit package is reviewed comprehensively and the medical plan is the cornerstone of that strategy. In order to evaluate the plan design, premium costs to employees and Board contributions, staff worked with KSPH to develop a model quantifying those elements. Based on this model, we are slightly above our target, both in terms of employee/employer contribution amounts and in several plan design areas. Over the next several months, the HCEC will consider the feedback gained from employees via focus groups and an online survey while reviewing options to continue bringing the plan in line with our market strategy for the next plan year. In comparing total plan costs to market, it is important to note that many localities subsidize spouse and dependent coverage, although we do not. Therefore, the total cost of the individual plan relative to our market is high, yet the total cost of the family plan is somewhat lower than market. (Attachment 5). Attachment #4 Dental Insurance The dental insurance is self insured through a contract with United Concordia. For the 2010 plan year, benefits were enhanced by increasing the dependent age from 23 to 26, adding implant coverage under major services on the high plan and removing the $300 annual maximum on periodontal services. No changes were made to the plan design or premium for the FY11/12 plan year. Health Care Reserve Fund As our medical plan is self-insured, the County is responsible for all claims. If claims exceed our revenue collections, the difference is paid from our reserves; if revenue exceeds claims, the difference is added back to our reserves. Reserve funds serve to cover any difference between claims paid, but not covered by the revenues (employee premiums collected & Board contributions). To meet this goal, a reserve balance of at least 25% of total claims should be maintained. Projections are based on the best historical and trend analysis information at the time. As a result of our medical claims running below projections, the Health Care Reserve Fund had a larger balance than anticipated, which has allowed us for the past two years to use reserves to offset the increase. This year, again, claims are below projections. FY12-13 Plan Year Projections - Medical and Dental Based on claims data and reserve balance, along with trend information provided by our benefits consultant Tom Mackay with KSPH, our projected medical cost increase for FY12 -13 is 5%. Based on the current projected balance, staff recommends utilizing our strong reserve balance to offset not only the medical increase in the coming fiscal year, but to reduce the Board contribution for FY 12-13. This reduction in the board contribution would be funded from the Heath Care Reserve Fund and would result in a cost savings. The use of these reserve funds would also bring the reserve balance closer to our target balance of 25% of annual medical claims. Our dental insurance cost increase is estimated at 7%. As we have just started the new plan year, staff will continue to monitor claims experience and develop recommendations for both plan design and premiums as part of the County Executive's and Superintendent's budget proposals. Review of VRS The Virginia General Assembly adopted several VRS benefit plan changes for covered employees hired on or after July 1, 2010. One change stipulated that employees hired on or after July 1, 2010 with no prior service credit (VRS ‘Plan 2’ employees) must pay their VRS member contribution unless their employer elects to pick-up (in whole or in part) the five percent (5%) member contribution. Annually, localities and school divisions may now elect to pick-up, in whole or in part (in whole percent increments) the 5% member contribution for their new VRS Plan 2 employees. The employer’s decision remains in effect for a full fiscal year (July 1 – June 30). Any change becomes effective the beginning of the next fiscal year. Most localities and school divisions throughout the state have continued to cover their employees’ contribution as the following data obtained from VRS indicates: Attachment #4 Defined benefit plans such as VRS continue to remain the trend in public sector retirement plans at this time. Therefore, to remain consistent with the Joint Board approved Total Compensation target for benefits to be slightly above our adopted market, it is recommended that Albemarle County continue to fund the employee member contribution. 0 50 100 96 School Divisions 83 Local Governments Employee contributes Employer funds member contribution Medical Premium and Cost Market Data $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Employee Employer Total Cost Family 0 100 200 300 400 500 600 700 Employee Employer Total Cost Individual Average Albemarle Attachment #5 Attachment #6 Wellness Updates In October 2006, the Joint Boards approved a comprehensive wellness program for employees. The source of funding is the Health Care Reserve Fund. The wellness program is offered to CATEC, Albemarle County Regional Jail, Blue Ridge Detention Center and Albemarle County Service Authority, as those entities offer the Albemarle County health insurance coverage to their employees. To assist employees in leading healthier lifestyles, some of the programs implemented this year at various locations included:  Flu shots  Mobile Mammography  Weight Watchers at Work  Smoking Cessation Program sponsored by our local Health Department  FIT Extension sponsored by the Virginia Cooperative Extension Office Several departments/schools placed an increased emphasis on wellness this year. Initiatives include:  Police Department – started an internal wellness team;  Broadus Wood Elementary School – hosted a Biggest Loser Challenge and offered various physical activities such as Pilates and Zumba.  Fire & Rescue – conducted baseline physical assessments on all employees and enhanced their physical activity program. In FY 11/12, enhancements to the Medically Supervised Weight Loss Program were implemented. The Medically Supervised Weight Loss Program is a collaborative effort by Southern Health, ACAC, and Family Medicine of Albemarle and was designed as a pilot program to target individuals with a body mass index (BMI) greater than 35, or BMI greater than 30 with at least 1 co-morbid disease such as diabetes or hypertension. Participants in the pilot group achieved successful results (indicated in the table below). Based on feedback from those participants, the advisory team made several changes to the program and will continue to evaluate. A detailed final report on the second group is provided. (Attachment #7). A third session of thirty two employees started in September 2011. Medically Supervised Weight Loss Program Results Number of Participants Retention Rate Average Weight Loss Total Group Weight Loss Change In Physical Activity Group 1 58 92% 18 lbs 801 lbs. 30% increase Group 2 3 97% 16.4 lbs. 515 lbs. 32% increase Attachment #7 Report Submitted by Anne Wolf & Associates Charlottesville, Va 22901 anne@amwolf.com 434-977-2859 Final Report Winter 2011 Groups October 1, 2011 2 Final Report, MSWL Baseline Characteristics of Participants In February 2011, 33 employees of Albemarle County enrolled in the Medically Supervised Weight Loss (MSWL) program; 73% were Albemarle County School employees and 55% were teachers. Their baseline characteristics are as follows: Initial Body Mass Index (kg/m2): Percent in BMI Category Overweight, 25- 29.9 6% Obesity, Grade I (30-34.9) 30% Obesity, Grade II (35-39.9) 33% Obesity, Grade III (Morbid Obesity, > 40) 31% Health Conditions Top 5 Health Conditions of Participants Health Condition % Participants High Blood Pressure 50% High Cholesterol 47% Difficulty breathing while sleeping or Sleep Apnea 38% Pre-Diabetes or Diabetes 27% Asthma 12% Initial Anthropometric and Laboratory Values Antropometric/Lab Average Initial Value Commentor Normal Range Weight 234 lb Body Mass Index (kg/m2) 37.4 Grade II Obesity Waist Circumference 44 inches High Risk WC Neck Circumference 16 inches Percent Body Fat 45.8% of total body weight High risk Hemoglobin A1c 6.8% Nondiabetic: < 6.0 Goal for diabetic: < 7% Total Cholesterol 195 mg/dL Nl: 0-200 Fasting Triglyceride 149 mg/dL Nl: 0-150 LDL 112 mg/dL Above optimal HDL 53 mg/dL 40-60 3 Final Report, MSWL LDL/HDL Ratio 2.2 Initial Activity and Inactivity Level Initial Dietary Scores Scale 0 to 100 (100 indicating a healthy dietary score) Avg amount of time sitting: 8.5 hours/day Physical activity score: 23% (out of 100) 4 Final Report, MSWL 0 20 40 60 80 100 Healthy Diet Score Dietary Fat Fruit/Vegetable/Fiber Caloric Drink Eating Out Frequency Meal Regularity Behavioral Eating Comparison to Previous Year/Groups Weight: More participants in Grade I Obesity entered the program with a concomitant decrease in the morbid obesity group. The average weight was approximately 20 pounds lighter this year compared to last. Waist circumference, neck circumference and body fat content is accordingly lower than the previous year. Health Conditions: Compared to last year, hypertension and high cholesterol continue to be the most prevalent health conditions of MSWL participants. The prevalence of pre and overt diabetes among participants is relatively stable but more participants with sleep apnea and reports of difficulty breathing while sleeping enrolled in the program this year compared to last year (increased 9% this year, surpassing diabetes & pre- diabetes). Laboratory Measures: Baseline, average blood glucose and fasting lipid panels were within normal limits but individually, 33% had hypercholesterolemia, 33% hypertriglyceridemia, 45% high LDL and 30% with low HDL; 48.5% of participants had metabolic syndrome. The average HbA1c among participants with diabetes was 7.1%. Physical activity and Inactivity: Baseline physical activity was similar to previous years and was low. A new tool to measure physical inactivity was used this year which is more comprehensive than last year’s tool so no comparison can be made. Dietary Intake: Baseline dietary scores are similar to last year. Name: Patsy Reardon Workplace: Stone-Robinson Elementary School Years working with Albemarle County 35 Pounds lost on MSWL: 50 lbs and continuing to lose! PARTICIPANT SPOTLIGHT 5 Final Report, MSWL What did you gain from the MSWL program? Through the MSWL program, I learned how to make food work for my body so that I am in control of food and food is not in control of me. Having a nutritionist and a personal trainer helped me focus on what I haven’t done well, what I need to do well, and instilled a belief and confidence in me that I h ave never had before. How is this program different than what you have done in the past to lose weight ? This program is different because it’s not just about making healthier choices. It makes you really think about the choices you have made and questions why you made those choices. I got a much clearer understanding of my relationship with food and as a result, I have made lifestyle changes that are really working for the betterment of my overall health and well-being. I am much more accountable to myself now. How did you surprise yourself? My biggest surprise was how much I could do physically. My trainer Zach believed in me long before I believed in myself. He gave me challenges that were out of my comfort zone and I met the challenges. That has really boosted my self- confidence. Nutritionally, my biggest surprise was the power of protein and the reality of making good food that is good for me! The best surprise is that my target clothes are now too big!!! I am still continuing to lose weight and working out is now a habit I don’t want to quit. What would you like to tell Albemarle County (your employer) about the program ? I would like to say thank you from the bottom of my heart for offering this program. It has been a wonderful, life changing experience and I am a healthier, happier, more confident person for having had this experience. Results Retention: 97% completed the program. Participation was 100% the first three months. While there was only one official drop out, there were six participants that were not actively engages from months 4 to 6. The retention and participation rate remain high as compared to most weight management programs that have a 50% retention by program end. Participation Overall Retention 97% Active Participation mos 0-3 100% Active Participation mos 4-6 79% Attendance 6 Final Report, MSWL MSWL Component % Attendance One-on-One RD visits and follow-up 86% Group Classes 78% Participant Satisfaction MSWL Component Average Score (1-5 scale, 5 highest) Overall Rating of Program 4.4 RD Individual Sessions 4.9 Group Classes 3.9 MD Initial Evaluation 4.0 Personal Trainer 4.3 PREP 3.7 Overall ACAC Experience 4.5 Overall Anthropometric and Laboratory Changes Antropometric/Lab Avg Initial Value Avg Change Weight 234 lb -16.4 lb (7.0% loss from initial weight) Waist Circumference 44 inches -2.32 inches Neck Circumference 16 inches -0.5 inch Percent Body Fat 45.8% -4.3% Hemoglobin A1c 6.8% -0.54% Total Cholesterol 195 mg/dL -11 mg/dL Fasting Triglyceride 149 mg/dL -31.6 mg/dL LDL 112 mg/dL -20 mg/dL HDL 53 mg/dL +2.6 mg/dL LDL/HDL Ratio 2.2 -0.34 Pre-Diabetes and Diabetes- Glucose Control 7 Final Report, MSWL Family members lost an additional 100 lbs. Health Condition n Beginning HbA1C Ending HbA1C Change Diabetes 7 7.1% 6.6% -0.7% Pre-Diabetes 2 5.9% 5.7% -0.2% Group Weight Changes Individual Weight Changes of all Participants 41% 24% 35% 0 % Weight Change from Baseline Lost 0-4.9% of Initial Weight Lost 5-9.9% of Initial Weight Lost >=10% of Initial Weight Pounds 35% of participants lost > 10% of their initial body weight 8 Final Report, MSWL Name: Anna Snyder Workplace: Mary C Greer Elementary School Years working with Albemarle County: 4th year Results: 7.4% body fat loss and a 73% increase in physical activity What did you gain from the MSWL program? Confidence, sense of self worth. How is this program different than what you have done in the past to lo se weight? I felt supported the entire time I was in the program. When I lost weight, gained weight or plateaued…I was always supported. How did you surprise yourself? I pushed myself harder because this was something I wanted to do for me and for no one else. What would you like to tell Albemarle County about the program? It is the best gift that they could have given me. It is not really a tangible gift. It ’s one where I was able to identify what I really needed and wanted in terms of improving my health. It s ays a lot about an employer to give their employees the opportunity to improve and empower themselves. Albemarle County cares enough about the people representing them and they saw a need to help. I am a healthier person, both physically and mentally. I am a better teacher, colleague, friend and daughter. I am forever indebted and so appreciative of the chance to do something for me. -60 -50 -40 -30 -20 -10 0 10 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Pregnancy at 31 weeks PARTICIPANT SPOTLIGHT 9 Final Report, MSWL Inactivity and Physical Activity Changes uis mauris id sapien venenatis semper. Aenean est. Dietary Changes Physical Activity increased by 32% Physical Inactivity by 2.5 hours/day  17% improvement in Behavioral Eating  17% improv’t in fruit, vegetable & fiber intake  16% reduction in high fat foods  12% reduction in caloric drink intake  13% improvement in Overall Dietary Score 10 Final Report, MSWL Changes in Health Related Quality of Life SUMMARY Participants in the 2011 MSWL groups did equally as well as previous MSWL groups in regards to weight loss, waist circumference changes & dietary changes. The average loss of 7% is equal to the last round and better than the Diabetes Prevention Program, which was shown to reduce the incidence of type 2 diabetes by 58%. In this group, there were seven people with diabetes and two people with diagnosed pre-diabetes. The participants with diabetes lowered their HbA1c by 0.7% and participants with pre-diabetes lowered it by 0.2% and continued to prevent the onset of this condition. Participants in this group were much more engaged in physical activity and lost a larger percent of their body fat compared to our last session in 2010. In fact, there were 3 people who lost more body fat than weight indicating they built lean body mass while losing weight (very challenging to accomplish). Their health related quality of life was more improved than previous years in the Mental Health and Vitality domains, perhaps, in part, due to regular physical activity. We made some changes to the personal trainer aspect of the program and given the participant’s results, their satisfaction with ACAC and the personal trainers, the changes appear to have made a difference. 8 26 8 8 27 0 5 10 15 20 25 30 1 2 3 4 5 % Improvement from baseline Percent Improvement in Health Related Quality of Life from Baseline Physical HR QOL Mental HR QOL Bodily Pain General Health Vitality 11 Final Report, MSWL Participant satisfaction wwith different components of the program was similar to 2010 except their was increased satisfaction with their MD experience, Personal Trainers and the overall ACAC experience. PREP,which was added this year, had an average rating of 3.7, however, ACAC has identified the problems and we have met and anticipate a better experience in the Fall 2011 groups. Glynn Baker Baker-Butler Elementary 19 yrs with Albemarle Co. Lost 4 inches from his waist. Increased his HDL (good cholesterol) by 19 points How did you surprise yourself? The thing that surprised me the most is how I was able to eat more foods that were better for me, and cut way back on the bad stuff, without too much struggle. What did you gain from the MSWL program? You don’t have to starve to lose weight. I was given the proper tools help to eat healthy, and feel full. And with the proper amount of activity and exercise, the weight will come off. What would you like to tell Albemarle County (about the program? This is a great program. I have struggled with weight gain over the last few years, and my health was starting to really decline and was always feeling tired. Thanks to this program I am over 30lbs lighter and have noticed that I have more energy and able to do tasks much more easily now, and is great to here the comments when people have noticed that I have lost weight, and is pushing me to loose more. I have a family history of Heart disease and Diabetes and I saw myself heading that way, so hopefully with what I have learned I can keep myself free of these diseases I would like to thank you for offering this program and I hope you keep it going to help others who struggle with weight problem. PARTICIPANT SPOTLIGHT RESOLUTION WHEREAS, a task force of community members was convened by Ken Boyd, Board of Supervisor representative from the Rivanna District, to provide input to VDOT engineers on the design of the northern terminus interchange of the western bypass; and WHEREAS, the task force has concluded its study and discussion of design issues related to the northern terminus interchange; and WHEREAS, the task force has identified four recommendations that they consider to be critical to that design; and WHEREAS, those recommendations are outlined as followed:  The terminus interchange should be located south of the Ashwood Boulevard;  The terminus interchange should be constructed entirely on the west side of Route 29;  There will be no more traffic lights added (to Route 29?) as a result of the terminus interchange; and  There will be no u-turns as part of the interchange traffic pattern. NOW, THEREFORE, BE IT RESOLVED, that the Board of Supervisors understands and endorses the above recommendations and strongly encourages VDOT to accept these recommendations as part of the final design of the northern terminus interchange of the western bypass. Return to agenda