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HomeMy WebLinkAbout1989-11-06 adjNovember 6, 1989 (Adjourned Meeting) (Page 1) 2 An adjourned meeting of the Board of Supervisors of Albemarle County, Virginia, was held jointly with the School Board on November 6, 1989, at 8:00 A.M., Meeting Rooms #5/6, County OfficeBuilding, 401 Mclntire Road, Charlottesville, Virginia. This meeting was adjourned from November 1, 1989. BOARD MEMBERS PRESENT: Mr. Edward H. Bain, jr. (arrived at 8:10 A.M.), Mr. F. R. Bowie (arrived at 8:02 A.M.), Mrs. Patricia H. Cooke, Mr. C. Tim~ Lindstrom (arrived at 8:22 A.M.) and Mr. Peter T. Way (arrived at 8:08 A.M.). BOARD MEMBERS ABSENT: Mr. Walter F. Perkins. OFFICERS PRESENT: Mr. Guy B. Agnor, Jr., County Executive; Mr. N. And~ Overstreet, School Superintendent; Dr. Carole A. Hastings, Director of Person- nel; and Mr. Robert Brandenburger, Benefits and Safety Coordinator. Agenda Item No. 1. Call to Order. The meeting was called to order at 8:11 A.M. by the Chairman, Mr. Way. Agenda Item No. 2. Joint Meeting withSchool Board. SCHOOL BOARD MEMBERS PRESENT: Messrs. Charles S. Armstrong, Clifford W. Haury, William W. Finley, Charles S. Martin, Charles R. Tolbert and Roger R. Ward. · SCHOOL BOARD MEMBER ABSENT: Mrs. Sharon Wood. Agenda Item No. 2a. Presentation of Flexible Benefits Plan. Dr. Hastings said the County's primar~i objective in considering a Flexi- ble Benefit Program was to more effectivel~manage benefit costs while recog~ nizing the needs of the County's changing workforce. The firm of Mercer, Meidinger, Hansen, Inc., (MMH) was commissi6ned by the County to perform a Flexible Benefit Feasibility Study and Mr. ~t{erbert E. Nichols of that firm is present today. Dr. Hastings said there were two parts..;of the study as follows: Phase I Planning A. Objectives Developed - established,' structure for long-term cost analysis. B. Demographic Analysis defined chaCacteristics of the group. C. Employee Input - survey and focus groups interviews. D. Current Benefit Analysis - existing plans. Phase II - Development A. Preliminary Plan Design - specific framework developed, B. Administration Assessment - alternatives explored. C. Cost Analysis forecast. Dr. Hastings explained the logic behind the program, and said that staff recommends that a flexible benefits program, be considered for implementation effective January 1, 1991. This target date will allow time to address any issues that arise and time to present the program to the employees. She then turned the meeting over to Mr. Bob Brandenburger. Mr. Brandenburger said there is a need!~for cost management of the long range structure and to let the employee buy the benefits that he/she actually needs. Under this plan, the employee receives core benefits of retirement, group life, accidental death and dismemberment insurance, and benfits for the totally and permanently disabled under the Virginia Supplemental Retirement System. Under "Optional Benefits", the employee would have a choice of three different medical insurance plans, a revised dental plan, the Beneplus plan, choice of selling five vacation days per year, and the choice of buying supplemental group life insurance coverage, 'and supplemental accidental and dismemberment insurance. It is also recommended that full-time school employees who are not eligible for vacation accrual be allowed to cash in one or two personal leave days each school year. November 6, 1989 (Adjourned Meeting) (Page 2) Under this plan, the employee receives a certain number of "flex" dollar with which to purchase these optional benefits. All money used to buy these benefits is tax free to the employee except for insurance coverage over $50,000. It is recommended that the credit be calculated as follows: A base credit of $100.00 per year, plus $900.00 per year for medical benefits, plus $56.00 per year for each year of service over five up to a maximum yearly allowance of $1,400.00. If an employee elected to not take the County's medical insurance coverage, he or she would be given a credit of $180.00 yearly which could be used to purchase other benefits or taken in cash. (Mr. Lindstrom arrived at 8:22 A.M.) Mr. Brandenburger then discussed the components of the proposed flex benefits plan, the different options available and how the plan is supposed to work; all of which is outlined in the study entitled County of Albemarle Flexible Benefit Study. He said this plan gives the employees the maximum choice as to what he/she can do with the dollars given in the benefit plan. If some change if not made, the County will be faced with costs over and above what can be lived with. Dr. Hastings said it is recommended that the actual administration of plan be handled by a third party for the first year. The County does not the data processing resources in-house for that first year. During that time the County would be working with a consultant to develop software so the County could administer the plan the following year. Mr. Way asked if this plan is something that will be acceptable to the employees or something that will just "upset" them. Mr. Brandenburger said people like the idea of having a choice. He thinks that if this is handled correctly the employees will opt for it. Feedback from the Task Force was very receptive. He does not think there will be an adverse reaction. Dr. Hastings said each employee will receive an individualized plan. There is a lot of time involved and the staff will ne~d that time to discuss the plan with the employees. Mr. Herbert Nichols said when the conmultants did an in-house survey in June, the idea of having a choice and having a good acceptable lower cost was received with high enthusiasm. He sees this as being positive. This wil also increase the employees perception of ~nefits. - Dr. Hastings said the staff is lookin~ at alternatives for the January 1 1991, implementation date. If January is the ultimate target date, the plan will be presented to each Board for approval during the budget process. Mr. Nichols then discussed in some mora detail a graph (outlined in full in the study) showing the flex scenario as ~ompared to the non-flex. Mr. Bain said if the two Boards are serious about implementation of the plan, then it needs to be discussed again soon. Mr. Agnor suggested discuss- ing the plan in December. There was no further discussion at thi~ time. Agenda Item No. 2b. Discussion: Leasing of Computers to Employees. Mr. Overstreet said it has been discovered in the schools that the personnel use computer technology better with students if they have a at home. The staff had a notion to get computers to teachers for their instructional programs. It was felt that o~her employees would benefit from also having computers made available to them. School administration came up with the idea of buying computers in bulk, and amortizing the cost over an extended period of time. It was decided to ~make the computers available county-wide and allow the costs to be deducted automatically through a payrol deduction for those employees who expressed.an interest in this plan. Mr. John English said the schools have staff development and retraining of employees for the technology that is already in the classroom. Having the technology in the classroom alone does not provide the teachers enough time t~ become really familiar with the equipment. 'The school administration has studigd two or three school systems which have done this type of buy system and found that the training curve for students had increased. November 6, 1989 (Adjourned Meeting) (Page 3) Mr. Overstreet said staff had thought to put out to bid the equipment needed, and then lease the equipment from the supplier so that the county would hold the title to the equipment; then the computers could be lease/purchased to the employee. The County would hold the title until the cost of the computer was paid in full. The cost for maintenance would be shared in the lease payments. The computers ~ould still be available at a local price. Mr. Bowie asked what risks the program might present the County. Mr. Papenfuse said a purchaser might not pay for a computer he or she has ordered and taken home. Mrs. Cooke said this may all sound wonderful, but several years ago the University of Virginia tried to bypass the retailer in the sale of computers and received some bad publicity. The University no longer offers this type of program to its employees. Before the County enters into this arrangement, it should consider the serious problems encountered by the University. She can see the County getting into that same situation. Mr. Lindstrom asked if this purchase option would be available to every- body in the system or just teachers which could be the distinction. Mrs. Cooke said that was the same premise at the University. Mr. Overstreet said the program was originally for teachers. Mr. Papenfuse said the administra- tion encourages retailers to bid on supplying the computers. Mrs. Cooke said she thinks this item should be looked at Agenda Item No. 3. Other Matters not Listed on the Agenda. The next joint meeting of the Board of Supervisors and School Board was scheduled for December 6, 1989, at 8:00 A.M. Mr. Bowie commented that he would not be able to attend that meeting. Agenda Item No. 4. Adjourn. At 9:09 A.M., with no further business to come before the Boards, the meeting was adjourned. CHAIRMAN