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Report ID: 20-407   
Type: Regular - Board Administrative Matters
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 11/12/2020 Final action: 11/12/2020
Recommended Action: Consider adoption of Resolution No. 20-054 reappointing Jeffrey Lewis and Davis Reimer as the two public members to the AC Transit Retirement Board; and the interim appointment of Acting Deputy Chief Financial Officer Chris Andrichak to fill the unexpired term for the non-ATU member on the Retirement Board effective January 1, 2021 and until such time as a permanent appointment is made.
Attachments: 1. STAFF REPORT, 2. Att.1. Resolution 20-054, 3. Master Minute Order

TO:                                          AC Transit Board of Directors                                          

FROM:                                          Linda A. Nemeroff, District Secretary

SUBJECT:                     Recruitment for the AC Transit Retirement Board                     

 

ACTION ITEM


RECOMMENDED ACTION(S):

 

Title

Consider adoption of Resolution No. 20-054 reappointing Jeffrey Lewis and Davis Reimer as the two public members to the AC Transit Retirement Board; and the interim appointment of Acting Deputy Chief Financial Officer Chris Andrichak to fill the unexpired term for the non-ATU member on the Retirement Board effective January 1, 2021 and until such time as a permanent appointment is made.

Body

 

STRATEGIC IMPORTANCE:

 

There is no strategic importance associated with this report.

 

BUDGETARY/FISCAL IMPACT:

 

There is no impact to the District's budget resulting from the recruitment of Retirement Board members.

 

BACKGROUND/RATIONALE:

 

Ordinance 10 sets forth the parameters for making appointments to the five-member AC Transit Retirement Board. It specifies that two members from the public shall be selected by the District’s Board of Directors (Board) based on criteria established by the Board, and one member shall be selected by the Board from employees who are not represented by ATU, Local 192. These members serve a two-year term. The two remaining members of the Retirement Board are elected officers of ATU, Local 192.

 

On February 27, 2019, the Board adopted Resolution No. 19-003 reappointing Jeffrey Lewis and Davis Reimer to the public member positions on the Retirement Board and Chief Financial Officer Claudia Allen to the non-ATU employee position on the Retirement Board. On October 7, 2020, at the Joint Meeting of the Board of Directors and Retirement Board, the District Board was advised that the two ATU members and Ms. Allen would be leaving the Retirement Board by the end of the year. These changes to the Retirement Board would leave the two existing public members as the only members of the Retirement Board with any historical knowledge.

 

Even though, the terms of the two public members do not expire until March 31, 2021, staff recommends that the Board consider their reappointment to the Retirement Board at this time. Staff believes that it is in the best interest of both the Retirement Board and the District to make these reappointments now to ensure continuity on the Retirement Board.

 

In addition, with regard to the non-ATU employee position on the Retirement Board, it is with the support of the General Manager that staff recommends the interim appointment of the Acting Chief Deputy Financial Officer, Chris Andrichak, to fill the non-ATU position on the Retirement Board until such time there is a permanent Chief Financial Officer. Mr. Andrichak has served as a liaison between the District and Retirement Board for many years.  He regularly attends Retirement Board meetings and has worked closely with the Retirement Department for many years concerning the District’s pension contribution. To be clear, Mr. Andrichak’s appointment would begin on January 1, 2021, and may extend into the next term on the Retirement Board commencing on April 1, 2021.

 

In conclusion, staff recommends adoption of Resolution No. 20-054 as it would ensure continuity on the Retirement Board.

 

ADVANTAGES/DISADVANTAGES:

 

This report does not recommend a course of action with notable advantages or disadvantages.

 

ALTERNATIVES ANALYSIS:

 

There are no practical alternatives to the course of action recommended in this report.

 

PRIOR RELEVANT BOARD ACTION/POLICIES:

 

Ordinance 10, adopted April 23, 1997                     

ATTACHMENTS:

 

1.                     Resolution 20-054

 

Prepared by:

Jelena Harada, Assistant District Secretary

 

In Collaboration with:

Linda A. Nemeroff, District Secretary

 

Approved/Reviewed by:

Linda A. Nemeroff, District Secretary

Jill A. Sprague, General Counsel

Michael A. Hursh, General Manager