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HomeMy WebLinkAbout10-12-1998 Meeting I ADMINISTRATIVE SERVICES COMMITTEE COMMITTEE ROOM - October 12, 1998 1:30P.M. PRESENT: Hons. Larry Sconyers, Mayor; H Brigham, Chairman; Beard and Shepard, members; Jim Wall, Attorney; Randy Oliver, Administrator; Lori D' Alessio of the Attorney's Office; Keven Mack, HND Director; Lena Bonner, Clerk of Commission and Nancy Morawski, Deputy Clerk of Commission. ABSENT: Hon. Powell, Chairman. Also Present: Sylvia Cooper of The Augusta Chronicle, George Eskola ofWfflF Television, Stacey Eidson of The Metropolitan Spirit and Hons. 1. Brigham, Bridges, Mays, Commissioners and Colclough, Commissioner-Elect. The Clerk: We have a request for two addendum items as per our addendum agenda. Mr. Shepard: I move they be added. Mr. Beard: Second. Motion adopted unanimously. I A request to approve a resolution to exclude services of election workers who are paid less than $1000 in any calendar year from Social Security withholding, was read. Mr. Shepard: I so move. Mr. Beard: Second. Motion adopted unanimously. A request to approve $125,000 Recaptured Urban Development Action Grant Loan for Mr. Andrew Garnett d/b/a Bucks as recommended by the Augusta Richmond County Citizens Advisory Council on September 2, 1998, was read. Mr. Beard: I thought Housing & Neighborhood Development had cleared him for a $150,000 loan. Mr. Oliver: Mr. Mack had told me that it was done subject to an appraisal of the collateral. In your book the total was $138,692 and according to the guidelines that were established it was 90% of that and that would make a loan value of$124,823.24. I Mr. Shepard: Didn't we approve guidelines for these loans which addressed the collateral? Mr. Oliver: Yes, you did. I Mr. Shepard: I make a motion that we approve the amount of$125,000 as supported by the criteria. Mr. Beard: I'll second the motion. Motion adopted unanimously. A request to approve an Ordinance providing for the demolition of certain unsafe and uninhabitable properties in the Turpin HiD Neighborhood: 1121 Nellieville Road (District 2, Super District 9), 1002 Eighth Avenue (District 2, Super District 9), 1012 Sixth Avenue (District 2, Super District 9); South Augusta Neighborhood: 2526-28 Dover Street (District 2, Super District 9), 2530-32 Dover Street (District 2, Super District 9), was read. The Clerk: This would also waive the second reading. Mr. Shepard: I so move. Mr. Beard: Second. Motion adopted unanimously. I A request to approve utilizing services of the CSRA Business League to provide technical assistance to loan applicants applying for Housing & Neighborhood Development Loan Fund Programs not to exceed $7,471.87, was read. Mr. Mack: This will be through the end of this year and they will prepare business plans. Mr. Beard: I so move that we extend this through the end of this year. Mr. Shepard: 1 second the motion. Motion adopted unanimously. The Committee next discussed the restoration of City Pensioners' benefits to same prior to consolidation. Mr. Wall: The language of Section 12 of the consolidation bill states that the former employees would retain those pension rights that had accrued to them prior to January 1, 1996 under any pension plan adopted by law, ordinance or resolution by either the County or the City. It is clear in my mind that they are talking about pension plans and we have retained those pension rights under the various plans. The health insurance I I I I benefits paid to former City and County retirees were paid in addition to the pension rights and were not part of the pension plans that were provided to either the City or County employees. The health insurance premiums and costs were paid for out of the general funds and not out of the pension funds and so from a legal standpoint, I think we have complied with the consolidation charter. Mr. Howard indicated to me it was the intent that the City and County workers and retirees would not go backwards insofar as the benefits that were afforded to them. From the standpoint of what the charter provides, I think we are in compliance. I think then it becomes a policy decision for you to make as far as whether or not some additional benefits above and beyond what's currently being provided should be given to the retirees and/or the employees and retirees. Rep. Henry Howard: It was our intent with the bill that nothing would interrupt the pension plan that the employees or retirees had so that it would be fair for all employees. I would hope that you would be able to handle this on the local level rather than having to take this back to Atlanta. Mr. Jack Long: The former City employees had a no-deductible type of insurance available to them before consolidation. They made lower salaries than their County counterparts but their insurance was better. These retirees were led to believe that they would not have any changes in their health benefits after consolidation. A number of people, however, have had substantial claims that they have had to pay. I disagree with Jim as to his interpretation of this and I don't think that you can reduce benefits under this plan. Mr. Shepard: Did they pay a premium before? Mr. Oliver: They paid 10% of the cost. After further discussion, Mr. Oliver: Whatever you do for this group, I think that you can expect other groups to ask for the same benefits. Your active employees will not have these benefits as welL Mr. Beard: What would be the total cost for this? Mr. Oliver: The annual cost as provided by the actuary for this enhanced level of coverage is $691,783.00 for the '49 participants. For the non-'49 it would be about $1.1 or $1.2 million and for the actives, it would be $3.9 million and the grand total would be about $5.7 million. This assumes first dollar coverage on medical, prescriptions, etc. Mr. Long: How many employees are we talking about? I don't think we are talking about that many people. Mr. Beard: How do we stand from a budgetary standpoint with the $691,783? Mr. Oliver: If you want to consider it, I think you should consider it during the budgetary process so that we can see the ramifications of such an increase. After further discussion, Mr. Shepard: I would like to see the number of people who would be involved in this. I Mr. Long: We can get that. After further discussion, Mr. Beard: I would like to make a motion at this time that we pass this on to the full Commission without a recommendation. Do you think that's enough time? Mr. Oliver: I want to bring the actuary in. Mr. Long: We need to have some numbers as to the number of former City employees who participated in the pension plan as of the date of consolidation, retirees who were participating in the pension plan as of the date of consolidation. Mr. Beard: I'm suggesting that we bring this back at the next Commission meeting and if that isn't enough time, then we won't stipulate that. We're just saying we'll pass it on to the full Commission when you and Mr. Oliver feel that you have enough information to bring to us. Mr. Oliver: My suggestion is to bring it to the first meeting in November to give time for it to be done. I Mr. Long: I have no problem with that but I would like to have the numbers I asked for by the end of this week. Mr. Shepard: I second the motion. Mr. Mays: Mr. Beard, I think you need to add in the motion that a representative from the insurance company also be here to answer any questions about the plan itself Mr. Beard: I'll accept that to move it fOIWard. Mr. Etheridge: I'll be happy to have the people who helped design the plan here. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission I NWM