ALAMEDA-CONTRA COSTA TRANSIT DISTRICT

STAFF REPORT

Staff Report No. 18-322MEETING DATE: 12/12/2018

TO: AC Transit Board of Directors

FROM: Michael A. Hursh, General Manager

SUBJECT: Recruitment for the AC Transit Retirement Board

ACTION ITEM

RECOMMENDED ACTION(S):

Consider options for filling two public member positions and one non-ATU member position on the AC TransitRetirement Board and provide direction to staff.

BUDGETARY/FISCAL IMPACT:

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

BACKGROUND/RATIONALE:

Ordinance 10 (Attachment 1) sets forth the parameters for making appointments to the five-member ACTransit Retirement Board. It specifies that two members 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 fromemployees who are not represented by ATU, Local 192. These members serve a two-year term. The tworemaining members of the Retirement Board are elected officers of ATU, Local 192.

On February 22, 2017, the Board adopted Resolution No. 17-009 appointing Jeffrey Lewis, Davis Riemer andSue Lee to fill two public member positions and one non-ATU member position on the Retirement Board. OnOctober 17, 2017, the Board adopted Resolution No. 17-043 appointing Claudia Allen, the District’s ChiefFinancial Officer, to the Retirement Board to fill the unexpired term of Sue Lee who resigned. The terms ofthese positions will expire on March 31, 2019. As such, the Board must decide if it would like to reappoint anyof the three existing members to a new term or proceed with a recruitment to fill these positions.

Should the Board wish to reappoint the three existing members, a resolution will be brought to the Board foraction at a later date. If the Board chooses to recruit for one or more of the positions, the District Secretarywill move forward with the recruitment process.

Recruitment Process (Public Member Positions and Non-ATU Position)

In order for the Board to assess qualifications, all candidates will be required to submit a letter of interest,application and resume.

The recruitment for the public member positions would be limited to the five-county Bay Area Region ofAlameda, Contra Costa, San Francisco, San Mateo and Santa Clara Counties as it has been in the past. Noticesand application forms will be distributed to the general public, local community colleges and universitiesALAMEDA-CONTRA COSTA TRANSIT DISTRICT Printed on 11/26/2018Page 1 of 2

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Staff Report No. 18-322MEETING DATE: 12/12/2018

and application forms will be distributed to the general public, local community colleges and universities

within the designated geographical area, and to riders via eNews. Information will be posted on the District’swebsite.

For the non-ATU position, notice will be sent via email to all non-ATU employees and will be posted at alldivisions and on the Board’s intranet page.

If the Board wishes to recruit candidates for the three positions, the District Secretary recommends that therecruitment begin on January 2, 2019, and close on February 1, 2019 at Noon. Staff recommends thatinterviews be held on either February 27 or March 13, 2019, since the new terms will commence on April 1,2019.

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. Ordinance No. 102. Draft Recruitment Flyer and Application Form

Reviewed by:

Michael A. Hursh, General Manager

Denise C. Standridge, General Counsel

Prepared by:Linda A. Nemeroff, District Secretary

ALAMEDA-CONTRA COSTA TRANSIT DISTRICT Printed on 11/26/2018Page 2 of 2

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ALAMEDA-CONTRA COSTA TRANSIT DISTRICT

ORDINANCE NO. 10

AN ORDINANCE ESTABLISHING THE ALAMEDA-CONTRA COSTA TRANSIT

DISTRICT RETIREMENT BOARD AND REPEALING ORDINANCE NO. 8(a)

WHEREAS, the Board of Directors of the Alameda-Contra Costa Transit District

is authorized by Public Utilities Code §§25301, et seq., to establish a retirement system

and create a Retirement Board responsible for the administration of that system; and

WHEREAS, the Public Utilities Code §25361 provides that:

The Board, upon establishing a retirement system pursuant to this

chapter, shall create a Retirement Board of not more than five

members, at least two members of which shall be the elected

representatives of the employees, to administer the retirement

system, and shall define its powers and duties and the tenure of the

members; and

WHEREAS, the Retirement Board and its composition was previously

established by a resolution, but the District Board of Directors determined to establish

the Retirement Board by ordinance and adopted Ordinance No. 8(a), effective February

3, 1993; and

WHEREAS, Ordinance No. 8 assigned the five seats on the Retirement Board as

follows:

Two selected from the membership of the District's Board of Directors;

Two selected by ATU from the elected officers of ATU, Local 192; and

One selected by the District's Board of Directors from the employees who

are not represented by ATU, Local 192; and

WHEREAS, the Board of Directors has decided to seek qualified individuals to fill

the two seats on the Retirement Board presently reserved for two members of the

Board of Directors; and

WHEREAS, pending the selection of the public members to the Retirement

Board, the representatives of the Board of Directors designated in Resolution No. 979

shall continue to sit on the Retirement Board.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE ALAMEDA-

CONTRA COSTA TRANSIT DISTRICT DOES ORDAIN A FOLLOWS:

SR 18-322 Attachment 1

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Section 1. Ordinance No. 10 is enacted to read:

Section 1. The Alameda-Contra Costa Transit District Retirement Board

(or Retirement Board) is created and established in accordance with the provisions of

Public Utilities Code §25361.

Section 2. The Retirement Board shall consist of five (5) members,

selected as follows:

A. Two members shall be selected by the District's Board of Directors

based on criteria established by the District Board of Directors, and

they shall serve for a period of two years.

B. Two members, constituting the two elected representatives of the

employees, shall be elected officers of ATU, Local 192. These

members shall serve until replaced by Local 192. The President of

Local 192 shall notify the District Board President, in writing, of its

representatives and of any change in the Local's representatives on

the Retirement Board.

C. One member shall be selected by the District Board of Directors

from employees who are not represented by ATU, Local 192. This

member shall serve for a period of two (2) years.

For the positions identified in subsections 2.A. and C, the District Board of Directors

shall adopt a resolution identifying the individuals selected and their term of office.

Section 3. The terms of the members of the Retirement Board shall be

staggered in order that no more than three members' terms expire at any one time.

Section 4. The initial selection of the Retirement members identified in

Section 2.A. shall be made by the District's Board of Directors as soon as possible

following the effective date of this ordinance. Until the selection of the Retirement

Board members identified in Section 2.A. occurs, the present Board of directors'

representatives to the Retirement Board shall retain their seats and continue to perform

their responsibilities as members of the Retirement Board. The Retirement Board

members identified in Section 2.A., once designated and appointed by resolution of the

District's Board of Directors, shall fulfill the unexpired terms of the members of the

Board of Directors they replace.

Section 5. If a vacancy occurs in any of the positions on the Retirement

Board identified in Section 2, they shall be replaced as soon as possible using the same

process identified in this Ordinance for their original selection. Except for Retirement

Board members selected by ATU, Local 192, the District Board of Directors may

designate a replacement on an interim basis pending a recruitment of a permanent

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replacement. In making an interim replacement, the District Board of Directors

whenever possible shall select individuals who meet the desired qualifications

\ established by regular members of the Retirement Board.

L. Section 6. A member of the Retirement Board may be removed from

office under the following circumstances:

A. Upon expiration of a member's term;

B. Upon resignation;

C. Due to death or an illness or injury which renders the member

incapable of performing his/her duties;

D. For any other cause which brings into question a member's ability

to perform his/her duties, including, but not limited to, misfeasance,

malfeasance, conflicts of interest, conduct which calls into question

the member's integrity, conviction of a serious crime or similar issues.

Section 7. The Retirement Board may establish rules and regulations

for the conduct of its meetings. However, at least three (3) members of the Retirement

, Board must be present to constitute a quorum for the transaction of any business. j

L» Section 8. Members of the Retirement Board shall serve without compensation for their services and shall not have a financial interest in any of its

decisions. Except as otherwise provided by law, nothing herein shall prevent a person

from serving as a member of the Retirement Board and voting on matters arising before the Retirement Board because he/she is a member of the retirement system.

Section 9. The Retirement Board shall comply with the requirements of

Article 16, Section 17 of the California Constitution, the District Law pertaining to the retirement system (as applicable) and the Plan Document in the performance of their duties.

Section 10. The Retirement Board shall have exclusive control of the

administration, investment and disbursement of the funds of the retirement system.

Section 11. The Retirement Board shall provide a report to the Board of

Directors at least twice per year regarding the activities of the Retirement Board and the status of the Retirement System's investments.

Section 2. This ordinance supersedes, replaces and repeals Ordinance No. 8

, and any prior ordinance(s) or resolution(s), which may conflict with it.

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Section 3. This ordinance shall become effective thirty (30) days after its

adoption, which shall be at least three days after its introduction. This ordinance shall

be published once a week for two consecutive weeks following its passage in a

newspaper of general publication within the District.

1997.

ORDINANCE NO. 10 WAS PASSED AND ADOPTED THIS 23rd day of April

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Get involved.

The AC Transit Board of Directors is seeking volunteers interested in serv-ing on the AC Transit District Re rement Board: two represen ng the public and one non-ATU employee representa ve.

About the Re rement Board.

The Re rement Board is composed of five members, three are appointed by the publicly-elected AC Transit Board of Directors and two are select-ed by the District’s largest union, ATU Local 192.

The Re rement Board oversees a non-contributory defined benefit plan with assets of approximately $—-. There are approximately ——- re r-ees or beneficiaries currently receiving benefits .

There is no compensa on for a endance at mee ngs or for me en-gaged in Re rement Board business. Related expenses for conferences or educa on may be reimbursed upon approval of the Re rement Board.

The AC Transit Re rement Board has the following responsibili es: Administers the Re rement Plan for current and future beneficiaries; Selects legal counsel to provide guidance to the Re rement Board; Retains and monitors investment consultant(s) and advisors; Retains and monitors fund managers who manage the Plan assets; Retains an actuary to help determine how much money needs to be

contributed by the District annually to the Plan; Sets investment strategies, determines appropriate risk levels, and es-

tablishes asset alloca on policies for Plan assets; Authorizes payment of approved expenses; Oversees audi ng of the Plan funds; Contracts with a custodial bank(s) to hold the assets; Selects and evaluates staff to administer the Plan on a “day-to-day”

basis; Terminates contracts when appropriate; Determines if applicants are qualified to receive benefits, including

gran ng or denying applica ons for disability re rements; Reviews ongoing qualifica ons for re rees on disability status; and Advises the AC Transit District Board of Directors on issues rela ng to

the Plan.

Re rement Board

Alameda‐Contra Costa Transit District

Desirable Qualifica ons

Experience in some or all ofthe following areas:

Investments, accoun ng, fi-nance or actuarial study, pref-erably related to public re re-ment systems.

Public employee benefits ad-ministra on.

Disability benefits, administra-on, and evalua on of qualifi-

ca ons.

Understanding and inter-pre ng re rement plan docu-ments.

Knowledge of open mee ng laws (Brown Act).

Ability to maintain strict con-fiden ality.

Ability to a end a minimumof one Re rement Boardmee ng per month and occa-sional special mee ngs asnecessary.

Mee ngs

Mee ngs are generally held the second Thursday of the month, generally 9:00 a.m. to 2:00 p.m.

Terms

The term of service is two years beginning on April 1, 2019.

SR 18-322, Att. 2DRAFT

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AC Transit’s Re rement Board

It is the policy of the Alameda‐Contra Costa Transit District not to unlawfully discriminate on the basis of sex, sexual orienta on, gender, ethnic group iden fica on, race, ancestry, na onal origin, color, religion, marital status, age or mental or physical disability in the educa onal programs or ac vi es which it operates.

Essen al Qualifica ons

No conflict of interest in any investments or issues facing the Re rement Board. Re rement Board members areprecluded from selling or providing any investment product that would be considered an asset of the fund to anypublic re rement system in California (GC 7513.95). NOTE: the successful candidate will be required to file a State‐ment of Economic Interest (Form 700), within 30 days of assuming office, annually therea er, and upon leaving office).

Understanding of the fiduciary responsibili es of the Re rement Board. Ability to maintain strict confiden ality regarding certain ma ers brought before the Re rement Board, includ-

ing medical and/or personnel records.

Selec on Process and Term of Office

Completed and signed applica ons, including a resume and le er of interest, must be received no later than 5:00 p.m. on February 9, 2019. The deadline is firm; therefore, applica on materials that are incomplete or receiveda er the deadline will not be submi ed to the Board for considera on. Any informa on submi ed to the Board ofDirectors will be a ma er of public record. Applicants must live in the nine-county Bay Area Region.

Selec on of members shall be made by the District’s Board of Directors as soon as possible a er the close of the recruitment period. The Board may elect to interview applicants as part of the selec on process. Once designated and appointed by resolu on of the District’s Board of Directors, appointees shall serve for a two year period com-mencing on April 1, 2019 and ending on March 31, 2021.

Applica ons may be obtained from:

AC Transit District Secretary’s Office

1600 Franklin Street, 10th Floor Oakland, CA 94612

Phone: (510) 891-7209, Fax: (510) 891-4705 E-mail: districtsecretary@actransit.org

TDD for Hearing Impaired: Call 711 - California Relay Service and specify (510) 891-7201

Or on the web at: www.actransit.org/liaison-commi ee-mee ngs/ and

Click on AC Transit Re rement Board 

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Name: Day me Phone: ( )

Address: Apt. Evening Phone: ( )

City: Zip Email:

Re rement Board Applica on for Appointment

Please print in ink or type on this document. 

I understand that I am obligated to be complete and truthful in providing informa on on this applica on. I understand that all of the informa on provided by me on this applica on will be subject to public disclosure.

I am: A member of the public A non‐ATU AC Transit Employee

Responses to the following ques ons may be printed or typed in the space below or a ached on a separate sheet of paper. Please answer each ques on as completely as possible.

1) Please describe the insights, knowledge and experience and/or educa on you would bring to the Re rementBoard. Do you have any special area of exper se or experience you think would be beneficial to the Re re-ment Board?

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

2) Please list the specific areas of interest you would best represent on the Re rement Board and reasons why.

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

3) Please list other advisory, city or community commi ees you have been involved in and briefly describe yourrole.

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

Cer fica on: I cer fy that the informa on provided is true and complete to the best of my knowledge. I under-stand that if appointed to the Re rement Board, I will file a financial disclosure statement (Statement of Economic Interest, Form 700) as required by law upon assuming office, annually, and upon leaving office.

Signature: _________________________________________ Date: _______________________________

APPLICATIONS ARE DUE NO LATER THAN 5:00 P.M. on Friday, February 9, , 2019. Email to districtsecre-tary@actransit.org. Mail to District Secretary, AC Transit, 1600 Franklin St., Oakland, CA 94612, or fax to (510) 891-4705.

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