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HomeMy WebLinkAbout2009 08 10 Consent 205 Medical Transport Special Revenue FundCOMMISSION AGENDA Consent X ITEM 205 Informational Public Hearin Regular August 10, 2009 Regular Meeting /D REQUEST: City Manager requesting the Commission to modify its previous action to utilize remaining funds in the City's Medical Transport Special Revenue Fund for transfer to the City's Pension Fund, and suspend this transfer until further direction of the Commission is obtained. PURPOSE: This agenda item is needed to request the Commission to modify its previous action to utilize remaining funds in the City's Medical Transport Special Revenue Fund for transfer to the City's Pension Fund, and suspend this transfer until such time as further direction of the Commission is obtained. CONSIDERATIONS: On October 13, 2008, the Commission voted 5-0 to approve the utilization of the remaining funds in the City's Medical Transport Fund (i.e., those funds remaining after consolidation of the City Fire Department with the County) to accelerate the payment of the portion of the required FY 2009 normal pension costs and past service liability related specifically to firefighters. This action was to be accomplished by transfer of those remaining Medical Transport funds to the City's Pension Fund. As of the current date, those funds have not been transferred for said purpose. In light of previous discussions with the Commission regarding the City's Pension Plan and its on-going viability, it is the recommendation of the City Manager that this transfer not occur at this time and be suspended pending a comprehensive examination of the City's Pension Plan. At the completion of this forthcoming study, a recommendation will be brought back to the Commission regarding the utilization of these remaining Medical Transport Funds. FUNDING: At the time of the submission of the October 13, 2008 Agenda Item regarding this issue, it was communicated to the Commission that $683,225 remained in the Medical Transport Fund and was available for transfer to the Pension Plan. However, upon a current financial evaluation of this Fund, it is noted that only $571,922 is available for transfer as of July 31, 2009. The difference results principally from write-offs of uncollectable receivables. The $571,922 represents current true available cash dollars. RECOMMENDATION: The City Manager recommends that the City Commission modify its previous action of October 13, 2008 to utilize remaining funds in the City's Medical Transport Special Revenue Fund to accelerate the payment of the portion of the required FY 2009 normal pension costs and past service liability related specifically to firefighters, and suspend this transfer and utilization of these Medical Transport Funds for Pension funding purposes until a comprehensive analysis of the on-going viability of the City Pension Plan can be completed. ATTACHMENTS: Agenda Item 601, October 13, 2008. Excerpt from Minutes of October 13, 2008. COMMISSION ACTION: COMMISSION AGENDA ITEM 601 Consent Informational Public Hearin Re ular X October 13, 2008 Regular Meeting MGR. •~~ / /DEPT. Authorization REQUEST: City Manager requesting Commission consider recommendations from the Board of Trustees regarding investment of idle City funds. PURPOSE: This agenda item is needed for the City Commission to consider recommendations from the Board of Trustees regarding investment of idle City funds. CONSIDERATIONS: On August 13, 2008 the City Commission heard presentations from representatives of the State Board of Administration Local Government Investment Pool (SBA-LGIP) and the Florida League of Cities Florida Municipal Investment Trust (FMIvT). These presentations were made in order to assist the Commission in deciding whether or not to return to the SBA-LGIP for investment of surplus City funds, to utilize an alternative investment vehicle such as the FMIvT for this purpose, or to maintain its current investment portfolio. At the conckusion of that meeting, the Commission directed the City Manager to ask the Board of Trustees to hear the same presentations and provide an advisory opinion on the matter. NOTE: The City's current investment portfolio consists of the following: The Reserve Fund $17.9 M SBA-LGIP "A" $5.7 M SBA-LGIP "B" $1.3 M Total $24.9 M On September 17, 2008, the Board of Trustees heard presentations from representatives of the SBA- LGIP and the FMIvT. The Board of Trustees voted unanimously to recommend the following to the Commission: 1. That the City move up to 25% of the funds currently invested in The Reserve Fund to the FMIvT High Quality Government Fund. 2. That as additional funds are liquidated in the future from the SBA-LGIP, that up to 25% of that liquidated amount be moved to the FMIvT High Quality Government Fund 3. That the Board of Trustees revisit this issue in 6 months. 4. That the City NOT reinvest in the SBA-LGIP at this point in time. The Board of Trustees met again on October 1, 2008 and voted (4-1 on items 1 & 2; 5-0 on items 3 & 4) in favor of recommending the following additional items to the Commission: 1. That the City engage Bogdahn Consulting for aone-time engagement for purposes of providing the City a professional evaluation and recommendation regarding investment alternatives for idle City funds. 2. That the City engage Bogdahn Consulting on an on-going basis for purposes of providing Third Party Investment Advisory services to the City regarding its idle City funds. 3. That the City utilize remaining funds in the City's Medical Transport Special Revenue Fund ($683,225) to accelerate the payment of (to the extent these funds will allow) the portion of the required FY 2009 normal pension costs and the past service liability related specifically to firefighters. 4. That, to the extent feasible and allowable, the City accelerate the payment of the past service liability and pass this cost on to the County in accordance with the Fire Consolidation Interlocal Agreement. FUNDING: September 17 Recommendation: Expenses: The FMIvT charges participants 18 basis points to administer the Fund. Revenues: Based on a 25% allocation to the FMIvT and a current interest spread (Reserve Fund return vs. FMIvT return) of 1.20%, an estimated additional $54,000 in annual earnings would be obtained. October 1 Recommendation: The cost for Bogdahn Consulting to provide aone-time evaluation and recommendation for investment of idle City funds and to provide on-going Investment Advisory services to the City would determined though appropriate vendor negotiations. RECOMMENDATION: It is recommended that the Commission approve the recommendations of the Board of Trustees regarding investment of idle City funds and utilization of remaining funds in the in the City's Medical Transport Special Revenue Fund. It is further recommended that the Commission authorize the City Manager to enter into negotiations with Bogdahn Consulting and bring back a fee proposal and contract for Commission approval. If the Commission approves the Board of Trustees recommendation regarding use of the FMIvT, the attached resolution will be required from the FMIvT for participation in the Fund. It is recommended the Commission approve this resolution and authorize the City Manager to execute any documents required for participation in the FMIvT High Quality Government Fund. ATTACHMENTS: ] . Resolution No. 2008-50. COMMISSION ACTION: CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -OCTOBER 13, 2008 PAGE 19 OF 26 VOTE: COMMISSIONER McGINNIS: AYE COMMISSIONER IfltEB5: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER BROWN: AYE COMMISSIONER MILLER: AYE MOTION CARRIED. REGULAR 601. Office Of The City Manager Requesting Commission Consider Recommendations From The Board Of Trustees Regarding Investment Of Idle City Funds. Manager McLemore introduced this Agenda Item. Discussion followed. Tape 2/Side B Further discussion followed. Ms. Maria Fair, Member of the Board of Trustees: addressed the City Commission on the Investment Policy; amending the Investment Policy as specified; lawsuits; custodial risk; and continuing education. Ms. Michelle Greco, Director, Finance Department spoke on continuing education. Discussion. Tape 3/Side A Manager McLemore said, "What they Amended has not been Amended in the Investment Policy but it is still a Policy of the City." Commissioner Miller said to Ms. Fair that this will be looked into. Manager McLemore stated, "We have done everything in accordance with the Policy, relative to those investments." Furthermore, Manager McLemore remarked, "We've done everything in accordance with the direction of this Commission who is charged by Charter to make Policy for the City." Discussion. Cn'Y OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -OCTOBER 13, 2008 PAGE 22 OF 26 VOTE: COMMISSIONER KREBS: AYE COMMISSIONER BROWN: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER MILLER: AYE COMMISSIONER McGINNIS: AYE MOTION CARRIED. Manager McLemore asked, "On the issue of when you go out to RFP (Request for Proposal), when do you want that to proceed? Now? After the first of the year? Wait a while? Give it three (3) months to bring it back to you?" Commissioner McGinnis stated, "Three (3) months." Commissioner Krebs remarked, "Yes." No objections were voiced. Manager McLemore explained, "As recommended and Approved unanimously by the Pension Board was to use the Transport Funds to accelerate the payment buy down of the past service liability of the Firemen." Mayor Bush noted, "That the City utilize remaining funds in the City's Medical Transport Special Revenue Fund; six hundred and eighty-three thousand -two hundred twenty-five dollars ($683,225.00) to accelerate the payment of (to the extent that this Fund will allow) the portion of the required Fiscal Year 2009 normal pension costs and the past service liability related specifically to the firefighters." `DSO MOVED." MOTION BY COMMISSIONER McGINNIS. COMMISSIONER McGINNIS ADDED, "I MOVE THAT WE ACCEPT THE RECOMMENDATION - THE THIRD PARTY UTILIZE REMAINING FUNDS IN THE CITY'S MEDICAL TRANSPORT SPECIAL REVENUE FUND - TO ACCELERATE THE PAYMENT OF THE PORTION OF THE REQUIRED FY [20]'09 NORMAL PENSION COSTS AND THE PAST SERVICE LIABILITY RELATED SPECIFICALLY TO FIREFIGHTERS." SECONDED BY COMMISSIONER MILLER. COMMISSIONER McGINNIS ADDED, "AND TO THE EXTENT FEASIBLE AND ALLOWABLE, THE CITY ACCELERATES THE PAYMENT OF THE PAST SERVICE LIABILITY AND PASS THIS COST ON TO THE COUNTY IN ACCORDANCE WITH THE FIRE CONSOLIDATION INTERLOCAL AGREEMENT." SECONDED BY COMMISSIONER MILLER. CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION REGULAR MEETING -OCTOBER 13, 2008 PAGE 23 OF 26 VOTE: COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE DEPUTY MAYOR GILMORE: AYE COMMISSIONER MILLER: AYE COMMISSIONER BROWN: AYE MOTION CARRIED. REGULAR 602. Community Development Department -Planning Division Requests That The City Commission Establish A Date And Time For A Workshop To Discuss The Current Codes, Processes, And Policies As They Relate To Development Approvals And Permit Issuance. Commissioner Miller departed the Regular Meeting at 9:45 p. m. With brief discussion, Mayor Bush said, "The prior discussion is to move this to after the first of the year." Commissioner McGinnis noted, "Yes." Mr. Stevenson asked, "As an Agenda Item?" Mayor Bush stated, "Yes, as an Agenda Item; it will establish the Workshop date." REGULAR 603. Information Services Department Wishes To Inform The Commission Of Its Options With The Use Of a-Alerts As An Additional Form Of Communication With Residents And Requests That The Commission Make Choices Based On The Information Received. Ms. Joanne Dalka, Director, Information Services Department spoke on this Agenda Item. Discussion. Commissioner Krebs said to Ms. Dalka, "You have done a great job -great research." "I MOVE THAT WE MAKE IT ~ecitizen'." MOTION BY COMMISSIONER BROWN. SECONDED BY COMMISSIONER McGINNIS. DISCUSSION. VOTE: COMMISSIONER BROWN: AYE COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE DEPUTY MAYOR GILMORE: AYE MOTION CARRIED.