POLICY COMMITTEE June 17, 2020 8:00 A.M. 1 AGENDA I. CALL TO - - PowerPoint PPT Presentation

Regional Service Through Unity… Meeting our Region’s Needs Today and Tomorrow

POLICY COMMITTEE

June 17, 2020 8:00 A.M.

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AGENDA

I. CALL TO ORDER II. PUBLIC COMMENTS (FOR TELECONFERENCE COMMITTEE MEETINGS ONLY) III. OPENING REMARKS A. Chairman/Executive Director/Committee Champion Status Report concerning legislation and regulatory matters, budgets, current projects and ongoing programs of the District IV. ACTION ITEMS A. Review and possible action on approval of Policy Committee meeting minutes – May 19, 2020 B. Review and possible action on amending Board Policy Manual, Section VII, Board of Directors Committee Policy V. DISCUSSION ITEMS A. Discuss Executive Director search process B. Discuss issues and legal ramifications identified by Committee members that should be taken up by Policy Committee over the coming year C. Discussion of a potential retirement incentive program D. Opportunity for Committee Members to Provide Feedback on the Policy Committee Meeting E. Opportunity for Committee Members to Request Potential Future Agenda Items (No substantive discussion of items will take place at this time) VI. ADJOURNMENT

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AGENDA

I. CALL TO ORDER II. PUBLIC COMMENTS (FOR TELECONFERENCE COMMITTEE MEETINGS ONLY) III. OPENING REMARKS

• A. Chairman/Executive Director/Committee Champion Status Report concerning legislation and

regulatory matters, budgets, current projects and ongoing programs of the District

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AGENDA

IV. ACTION ITEMS

A. Review and possible action on approval of Policy Committee meeting minutes – May 19, 2020 Recommend Approval of Policy Committee Minutes – May 19, 2020

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AGENDA

B. Review and possible action on amending Board Policy Manual, Section VII, Board of Directors Committee Policy

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REDLINE VERSION – BOARD POLICIES MANUAL

SECTION VII. BOARD OF DIRECTORS COMMITTEE POLICY SECTION 7.1, E AND G

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• E. FINANCE/AUDIT/INSURANCE/RISK MANAGEMENT COMMITTEE

The Finance/Audit/Insurance/Risk Management Committee shall review financial, insurance and risk management matters that need additional consideration prior to submission to the Board, and shall coordinate and review the annual budget and the annual audit as submitted by the appointed outside auditors. The Committee shall be composed of seven Directors including the Chairman. The Finance/Audit/Insurance/Risk Management Committee shall meet in June and July to review the upcoming annual operating budget, and in January to review the annual audit. In addition, the Committee should generally meet every six months or as needed. G. INSURANCE COMMITTEE The Insurance Committee shall review NTMWD Insurance Program periodically with the minutes of the meeting to serve as a report to the

• Board. The Committee may advise NTMWD staff on insurance matters with any major changes presented to the Board for final
• consideration. The Committee shall be composed of seven Directors including the Chairman. The Insurance Committee generally meets

every six months or as needed. G. REAL ESTATE COMMITTEE The Real Estate Committee shall review NTMWD real estate matters and make recommendations to the Board as needed. The Committee shall be composed of seven Directors including the Chairman. The Real Estate Committee generally meets every six months

• r as needed.

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RECOMMENDATION

The Executive Director and NTMWD staff recommend approving the amending of Board Policy Manual, Section VII, Board of Directors Committee Policy

AGENDA

V. DISCUSSION ITEMS

• A. Discuss Executive Director search process

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AGENDA

V. DISCUSSION ITEMS

B. Discuss issues and legal ramifications identified by Committee members that should be taken up by Policy Committee over the coming year

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AGENDA

V. DISCUSSION ITEMS

C. Discussion of a potential retirement incentive program

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A voluntary program offering additional incentives to employees who are currently eligible, or will be eligible by December 31, 2020, for retirement. In order to qualify for this program, employees must be eligible to retire, either based on Age 65 or satisfying the Rule of 80 (age plus prior years of service), and have five years of pensionable earnings with NTMWD. Seventy-eight employees fit the eligibility criteria.

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RETIREMENT INCENTIVE PROGRAM

In an effort to address increases in the operational budget, staff was tasked with finding creative options and alternatives to reduce expenses, currently and long term. This program is designed to meet the following goals:

• Create immediate opportunities for realignment and reorganization
• Reduce personnel costs
• Reduce operational budgets (long term)
• Provide a positive outcome for our employees and organizational

relationships by offering incentives to retirement eligible employees creating opportunities for advancements within the organization.

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RETIREMENT INCENTIVE PROGRAM - PURPOSE

The program is made up of two elements:

• Three months’ salary payable upon retirement date.
• Aging retirement accounts by five years. This would allow a retiree’s

pension to be based on (total retirement earning, plus 5 additional years of earnings at their current rate).

• Eligible employees must opt for the incentive program by December 1,

2020.

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RETIREMENT INCENTIVE PROGRAM - INCENTIVES

Potential Financial Impact:

• Assuming 50 percent of all eligible employees will opt to retire, the estimated

impact of the retirement incentive program will be $600,000.

• Additional retirees will increase retirement payouts.
• Savings over the next 12 months are estimated to be $2.3 million dollars:

– Differential salary savings: $847,000 – Position Elimination: $428,000 – Position Freezes (6 months): $1,070,800

• New employees will contribute 5% of salary as opposed to currently eligible

who are not require to contribute to retirement fund.

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RETIREMENT INCENTIVE PROGRAM - IMPACT

RETIREMENT INCENTIVE PROGRAM – NEXT STEPS

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Assuming Positive Response from the Board

1) Meet with Assistant Deputy Directors to put together an implementation plan in June 2) Present findings to Board of Directors 3) Meet with eligible employees 4) Start implementation plan

AGENDA

V. DISCUSSION ITEMS

D. Opportunity for Committee Members to Provide Feedback on the Personnel Committee Meeting E. Opportunity for Committee Members to Request Potential Future Agenda Items (No substantive discussion of items will take place at this time)

• VI. ADJOURNMENT

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