PREVIOUS ACTION. The City Council conducted a Pension Workshop on September 27, 2017. Policy direction was provided to establish a Section 115 Irrevocable Pension Trust, along with pension funding options and a policy on the use of one-time money. City staff has since requested proposals and three firms have responded. Staff Report - Council BACKGROUND: The Escondido City Council has established a financial policy to adopt a structurally balanced budget for the City each year. A budget is structurally balanced if it does not spend more on ongoing costs than it receives in ongoing revenues. This policy is a necessary component of good financial management and financial discipline and assures consistent delivery of services to Escondido residents. Maintaining a structurally balanced budget has become more challenging each year due to rising pension costs, which are increasing at a faster rate than growth in ongoing revenues. The increased pension costs are largely the result of rising pension unfunded accrued liabilities (UAL). The UAL is the gap between pension assets and pension liabilities. One of the most critical assumptions in attaining full pension funding is the rate of return on investments. Prior to Fiscal Year 2016-17, XxxXXXX assumed an annual investment rate of return on pension assets of 7.5 percent. Unfortunately, XxxXXXX did not always achieve this rate of return and the outlook from the investment community and actuaries for a 7.5 percent annual rate of return was increasingly pessimistic. In fact, CalPERS investment returns in the last six fiscal years have been: CalPERS History of Investment Returns Year Investment Return 2012 0.1% 2013 13.2% 2014 18.4% 2015 2.4% 2016 0.6% 2017 11.2% When lower investment earnings occur, future contributions must increase to make up the expected difference. As a consequence of this performance, a long, low-interest rate environment, and movement toward a more “risk averse” portfolio, the CalPERS Board approved a plan on December 21, 2016, to reduce the assumed rate of return from 7.5 percent to 7.0 percent with the impact being phased in over a three-year period. This phase in began in FY 2018-19 with required employer pension contributions being calculated using an assumed rate of return of 7.375 percent. The CalPERS gradual decrease in the assumed rate of return of 50 basis points over the next 3 years will result in much higher employer pension contributions for the City as seen in the chart on the next page. This chart...
PREVIOUS ACTION. What previous actions have been taken and what efforts have been made to solve this problem? What other funding sources exist for this project? Interfaith’s headquarters has been in a rented space in Laramie Plains Civic Center for more than thirty years. For the majority of those years, the bulk of Interfaith’s rented space has been a large classroom. A small room next to the classroom recently became available and Interfaith rented itfor an additional offices. As local demands increased, two more rooms were rented in other parts of the building. Interfaith, subsequently, was distributed throughout the old high school, over three floors. The latest room of 350 square feet has no light or heat and is used for the storage of dry goods. Although we are able to function, we are dependent on an aged elevator that regularly fails and leaves our handicapped clients and volunteeres unable to reach our client services room on the second floor. Over the years, the board of Interfaith has been thoughtful stewards of their finances. Accordingly, they have been able to accumulate a reserve of a little over $100,000. In December of 2018, a building that is just about the right size (50% more space overall), in the perfect neighborhood, with a sizeable parking lot, and on one floor became available. The savings Interfaith had accumulated over the years was mostly used for a down payment and upgrades. The mortgage on our new home costs just $74.00 more per month than rent in the Civic Center. Although many of our problems were solved with the acquisition of the new building, our ability to fully achieve our goals to address food insecurity in Albany County remains inhibited. Interfaiths’ leadership was fully aware and appreciative of the opportunity for expansion on the north side of the building. If funds were to not be available from CDBG, our team would likely pursue a capital campaign alternative.
PREVIOUS ACTION. At the August 1, 2011 Board meeting, staff was directed to prepare Requests for Proposals for Educational Outreach services.
PREVIOUS ACTION. On December 6, 2010, the Board of Directors elected and appointed Director Xxxxxxxxxxx as President and Director Xxxxxx as Vice President for the 2011 Calendar Year. On June 6, 2011, President Xxxxxxxxxxx announced that he would be stepping down as the Board President at the end of the meeting. On June 27, 2011, the Board called for election at the July 11, 2011 Board of Directors meeting and fill both the President and Vice President for the remainder of the 2011 Calendar Year. On July 11, 2011, the Board Appointed Director Xxxxxx to the office of President of the Board of Directors for the remainder of the calendar year 2011 and left the Vice President position open for the remainder of the year. SUBJECT BACKGROUND President Xxxxxx will be unable to attend the October 3, 2011 Regular Board of Director’s meeting. At this time it is appropriate to request nominations and/or volunteers to serve as Chair for the October 3, 2011 meeting, and have the Board appoint a Chair for that day. Call For Service August 2011 Station Number Community Fires Medicals Other Calls Total Responses 2010 Calls Changes 52 Brentwood 15 78 25 118 135 37 54 Brentwood 19 98 43 160 126 34 59 Discovery Bay 6 57 14 77 72 5 93 Oakley 18 116 46 180 179 1 94 Knightsen 11 30 17 58 55 2 95 Bethel Island 3 15 4 22 33 -11 Sunshine Xxxxx Creek 3 5 2 10 7 3
PREVIOUS ACTION. XXXX has administered the delegated industrial pretreatment program for the metropolitan area since the early 1970’s, including establishing limits, permitting, monitoring and inspection of dischargers to the Metropolitan Disposal System (MDS). We received delegation for the program from the MPCA in 1983. MCES has over 800 different companies on permit throughout the metropolitan area, with 300 of those being significant industrial users (categorical dischargers) (2000). In addition to permitting industrial dischargers, MCES has permitted all area hospitals since the early 1980’s and requires each hospital to have a mercury reduction plan in place. Furthermore, pollution prevention and mercury reduction opportunities are regularly highlighted as part of the annual inspections of significant industrial users. From 1990 through 1994 MCES conducted a collection system evaluation of the interceptors tributary to the Metropolitan Wastewater Treatment Plant (Metro Plant). The evaluation consisted of sampling major lines to try to find “hotspots” of mercury, PCBs and pesticides. With one exception, the results of this comprehensive 4-year effort did not identify any additional sources of mercury to be permitted and controlled or any historic loading or hotspot. However, it did lead us to identify the University of Minnesota Hospitals as a source that needed additional control. As a result, MCES placed additional conditions in that hospital’s industrial discharge permit.
PREVIOUS ACTION. XXXX is a member of the Association of Metropolitan Sewerage Agencies (AMSA.) This national trade organization conducts much of its work through the use of committees, task forces and workgroups. Due to our concerns about mercury contributions to our facilities, MCES helped establish the AMSA Mercury Workgroup in July 1998. The initial task of the workgroup was to develop data and information about mercury discharges to publicly owned treatment works (POTWs) in order to develop effective control programs. Part of that work has resulted in the preparation of a report titled “Evaluation of Domestic Sources of Mercury for the AMSA Mercury Workgroup” (August 2000). The evaluation found significant contributions of mercury from domestic-only wastewater. In addition to quantifying the mercury concentrations in household products and estimating contributions to POTWs, the evaluation identifies that a significant portion (approximately 82%) of the total domestic mercury load is attributable to excreted dental amalgam mercury (due to in-place amalgam). XXXX participated in providing data for this report by conducting monitoring of part of its collection system known to receive only domestic wastewater.
PREVIOUS ACTION. By MPCA estimates, 1-2 percent of the mercury in surface waters statewide is from direct point source dischargers. The rest of the mercury comes from either direct atmospheric deposition to the surface water or from atmospheric deposition to land and subsequent runoff to the surface water. Results from a cooperative MPCA/MCES study indicates that as much as 90,000 grams per year makes its way into the Mississippi River from nonpoint source pollution (NPS) runoff and settles out in the sediment of Lake Xxxxx. That is one of the reasons MCES has committed $7.5 million over the five-year period to a grant program to reduce NPS runoff.
PREVIOUS ACTION. Infiltration and Inflow (I/I) has been identified as another potential source of mercury in sanitary sewer collection systems, because of the mercury found to be present in groundwater (infiltration) and stormwater inflow. The MCES has had an ongoing program to remove I/I from our own collection system for many years. In addition, MCES initiated a grant program for local communities to address I/I beginning in 1993. Under four separate offerings, the MCES has offered financial assistance to communities to identify, locate and remove sources of I/I within local sanitary sewer collection systems. Each of the four financial assistance programs required a matching dollar share to come from the recipient community. However, beginning with the 1996 offering, the program was expanded to offer matching dollar loans to communities to carry out capital improvements to physically remove targeted I/I from the system. Each loan had a provision in which, if the community could certify that the targeted I/I had not returned to the system, the annual repayment of the loan would be forgiven. The certification period for each loan project was 5 years in duration. Overall, the MCES has expended a total of $1.375 million to-date to target I/I removal from local collection systems. The total amount of I/I removed from the system is approximately 800 million gallons per year. This figure does not include those projects that local communities initiated without aid of MCES financial assistance. It is unlikely that the Council would conduct another offering after the one in 2000, since most local needs have been met.
PREVIOUS ACTION. XXXX has inventoried the mercury containing devices at our facilities and has prioritized replacement with non-mercury containing items as appropriate. Removed mercury switches and other mercury-containing devices have been recycled. Some staff also conduct demolition activities at our facilities. These staff have been informed that all mercury-containing devices must be removed and recycled prior to demolition.
PREVIOUS ACTION. XXXX has experimented with contract language in capital projects that restricts the use of mercury-containing devices. For example, the South Washington County Wastewater Treatment Plant Request for Proposals (RFP) contained a prohibition on mercury containing devices except with MCES approval. Types of devices that would be allowed include fluorescent and ultraviolet lamps because they can be recycled.
