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HomeMy WebLinkAbout_2000 05 15 City Commission Workshop Minutes CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP MAY 15,2000 I. CALL TO ORDER The Workshop of May 15, 2000 of the City Commission was called to order by Mayor Paul P. Partyka at 6:30 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). ROLL CALL: Mayor Paul P. Partyka, present Deputy Mayor Cindy Gennell, absent Commissioner Robert S. Miller, present Commissioner Michael S. Blake, present Commissioner Edward Martinez, Jr., present Commissioner David W. McLeod, present City Manager Ronald W. McLemore, present City Attorney Anthony A. Garganese, absent Deputy City Clerk Tania Haas, present II. WORKSHOP AGENDA .:. .:. AGENDA NOTE: THE FOLLOWING AGENDA ITEMS WERE HEARD IN THE ORDER AS DOCUMENTED. .:. .:. B. Discussion Of Possible Changes To The Employee Pension Plan. Mayor Partyka welcomed everyone in attendance and stated "This hopefully will be pretty straight forward here - talk about the Pension and the Salary Compensation Program." Mayor Partyka noted that he would have to depart from the meeting by 8:00 p.m. and requested Commissioner McLeod chair the remainder of the Workshop. City Manager, Ronald W. McLemore stated "We have two issues to deal with tonight. One deals with the Retirement Plan, and the other deals with salary information relative to our bi-annual review of salaries." In regards to the Pension Plan Manager McLemore discussed obtaining "significant direction" from the Commission, and the principal purpose of the salary information was to make the Commission aware of the information that has been received. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15,2000 PAGE 2 OF 8 Manager McLemore further discussed the budget process; the Pension Plan as it was four years ago; the Floor Offset Plan and the Floor Offset Plan "Moving us forward"; interest in the Pension Plan; rebidding Investment Services; studying the current plan; and employee input. Discussion ensued on the spreadsheet entitled "City of Winter Springs Defined Benefit Pension Plan Costs of Benefit Increase". Specific items discussed included: Option "A"; the Enhancement Option; funding the enhancement; obtaining a decision; and Commission direction. Mr. Gene DeMarie, General Services Director, introduced for the Members of the Commission, Ms. Sandra R. Turner, CPC QP A from the firm Retirement Plan Specialists, Inc. Ms. Turner is the City's Actuary, was thanked for her efforts, and was the creator of the spreadsheet used in the presentation. Mr. DeMarie continued discussion on the increase of the benefit level per year of service issue; Option "B" and maintaining both the Defined Contribution and the Defined Benefit Plan; the Initial Unfunded Liability; the 2.3% increase in the percentage of payroll; 3% to begin on October 1, 2000; and continuance of the two sides of the plan. Regarding Option "C" Mr. DeMarie discussed the 3% benefit going backwards and forwards; continuance of the two sides of the plan; the Initial Unfunded Liability; the 6.1 % increase in the percentage of payroll; and additional costs. There was brief discussion on the amount calculated for the Initial Unfunded Liability in Option "C". Regarding Option "D" Mr. DeMarie discussed this plan being a complete departure of the current plan; the discontinuance of the Defined Contribution Plan; the increase in the benefit level; there being no Initial Unfunded Liability; and the 1.0% increase in the percentage of payroll. Regarding Option "E" Mr. DeMarie discussed the differences between Option "C" and Option "E"; going backwards and forwards; and the 4.9% increase in the percentage of payroll. Mr. DeMarie pointed out although the figures are "approximate figures", they are fairly close. Items also addressed included: possible considerations; the May 8, 2000 Pension Board Meeting; the recommendation from the Pension Board; and the recommendation from Staff of Option "D". Further details related to Option "D" were also discussed. Ms. Turner further discussed the 2% employee contribution; the employee frozen accrued benefit on date of conversion; program enhancements; and the "cash out" feature. Discussion ensued regarding overfunding and underfunding between the time of conversion and the time of retirement. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15, 2000 PAGE 3 OF 8 Mr. Vernon Rozelle, Vice Chairperson of the Board of Trustees Pension Board spoke on the Board's recommendation of Option "D"; and recommended Option "D-3" after recent discussions with Ms. Turner. Mr. DeMarie clarified for everyone that Option "D" was located on the spreadsheet entitled "City of Winter Springs Defined Benefit Pension Plan Costs of Benefit Increase" and Item "3" was included in the April 20, 2000 letter from the firm Retirement Plan Specialist, Inc (page 2). Mr. DeMarie then discussed what the impact of Option "D" - Item "3" would have on employees. Discussion ensued regarding the increase in the percentage of payroll; how the percentage was calculated; contribution responsibility; retroactivity; the Initial Unfunded Liability; the dollar value of the Initial Unfunded Liability; paying the debt down; Money Purchase Plan; and actuarial and cost methods. Manager McLemore spoke on the differences between Options "A", "B", "C", "D", and "E"; contribution responsibility; recruitment and retention of employees; what should a public employer do; the burden on taxpayers; retirement; Social Security; averages on what other communities pay in; competition; reasonable obligations; and employee preferences. Additional items discussed included: retirement options; the "457 Plan"; funding; employee contribution; the decision making process; comments from employees; meetings with Staff and employees; direction for the City Manager; the election; and ballots. Mayor Partyka opened the floor to anyone wishing to speak on this Agenda Item. Cory Green, Firefighter, Fire Department: spoke on "Going backwards is the way to go with this"; the current plan; funding for the plan; employee contribution; employer contributions; what surrounding municipalities offer employees; doing away with the Defined Contribution end; his recommendation of Option "C"; and employees being polled. Manager McLemore spoke briefly on State Plans; and Local Law Plans. Mr. Green corrected his recommendation from Option "C" to Option "E". Mr. Daniel J. Kerr, Police Chief, Police Department: spoke on his discussions with Police Department employees; how the current plan has improved; and his appreciation of the Commission for reviewing the current plan. Chief Kerr stated "We support both "D" and "E" - but particularly "D" would be most beneficial since the majority of our employees here in the City are fairly young and have the opportunity to build that retirement up over the years at a very minimal additional cost to them." Additional items CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15, 2000 PAGE 4 OF 8 discussed included: competition with other jurisdictions; the 3% benefit; and how this would benefit all City employees. Tape 1/Side B Staff and Members of the Commission discussed the average service in terms of years; that age was a consideration; statistics; and seniority figures. Mr. Tim Lallathin, Fire Chief, Fire Department: thanked the Mayor and Commission for the opportunity to speak. Chief Lallathin further spoke on the current plan; this being a serious issue; possibilities that would benefit employees; respecting employee rights; employee opinions; long tenured employees; listening to employees; and enticing employees to stay with the City. Discussion ensued regarding the differences between Option "D" and "E"; past liabilities; going backwards; younger employees; the early years; years of service; the 4.9% increase in percentage of payroll in Option "E"; and retroactivity. Ms. Valerie Mendelson, Investigator, Police Department: spoke on the proposed ballots; election; and the Commission's decision. Discussion ensued on the Commission's direction; real choices; voting down choices; fiscal responsibilities; the Pay Study; taking care of employees; being fair and equitable; what choices are palatable; the impact of Option "E" on employees; possible changes to work staff; and needing additional information. Discussion continued regarding the preference of Manager McLemore; limited funds; a limited tax base; residential taxes; the tax base of surrounding municipalities; a meeting with employees; turning the City into a viable municipality; and "flex" benefits. Mr. Jerry Sturdevant, Facilities Maintenance Technician, Public Works Department: spoke on the Commission's willingness to fund the plan; merit increases; burden on employees; and fully advising employees of all of the details. Commissioner Michael S. Blake suggested the following: "Mayor I would like to suggest that we table this discussion at the moment, and move on to the Pay Study, and then come up at the end and try to put everything together." Following a brief discussion Mayor Partyka stated "I think the consensus is that we need some additional information, and really more detail the better, by department, so we understand the difference." Mayor Partyka called a ten minute break at 8:00 p.m. (As Mayor Partyka had to depart from the Workshop, he requested that Commissioner McLeod chair the remainder of the meeting). CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15, 2000 PAGE 5 OF 8 The meeting was called back to order by Commissioner David W. McLeod at 8:10 p.m. Commissioner McLeod thanked everyone for their positive comments received during the break. A. Discussion Of The Proposed Salary Survey. Manager McLemore gave a brief introduction on this item. Topics discussed included: evaluations; entry pay; internal equity issue; market value of the ranges; and the 2% increase based upon "Years of service." Mr. DeMarie reviewed for the Members of the Commission the following points of the Compensation Study conducted by Cody and Associates, Inc.: the comprehensiveness of the study; comparative analysis; surveying municipalities; the study being "More than just a representative sample"; salary ranges encompassing every position in the City; the recommended salary ranges; and raising salary ranges to minimums. Mr. DeMarie reviewed the following points of the Internal Equity Analysis conducted by Cody and Associates, Inc.: compensation comparisons; this study being more complicated; employee longevity; internal inequities; the cost to implement the plan; merit increases; the average 4% increase in merit evaluations; turnover problems; salary ranges being lower than average; turnover rates; Police and Fire Department turnover rates; Public Works/Utility Department turnover rates; Administrative Department turnover rates; correlation between turnover rates and salary levels; needed improvements; combination of salary structure and compensation plan; this being a complicated issue; and that the Commission may possibly require additional information. Discussion ensued regarding turnover rates by department; vacancy rates; and the difficulty in retaining and recruiting employees. Mr. DeMarie stated that turnover and vacancy rates would be forwarded to the Members of the Commission for review. Manager McLemore spoke on zero percent turnover rates; turnover in general; percentages in turnover rates; the labor market; employees monitoring what the City will do; and the danger in losing good employees. Commissioner Blake spoke on the Internal Equity formula that was used; if it was calculated employee by employee; implementation of the three (3) different objectives outlined in the "Internal Equity Analysis"; benefits to employees; internal adjustments; range adjustments; and comparative compensation schedules. Commissioner Edward Martinez, Jr. continued the discussion on turnover rates; the inability to reduce turnover rates completely; the time span for minimum and maximum salary ranges; merit evaluations; longevity increases; factors; and absenteeism. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15,2000 PAGE 6 OF 8 Discussion ensued regarding step plans; annual merit increases; the performance driver; market value; the salary compression issue; pay system problems; the maximum range on the current plan; bonuses; base pay; cost of living increases; inflation; rebalancing the system; budgeting; familiarization of the Options; this Item being "purely presentational"; effective date of increase; and studies conducted for other municipalities by Cody & Associates, Inc. Tape 2/Side A Discussion continued on comparative costs; this study being a five (5) year comparison; reorganization; the current workforce percentage; and the City's growth factor. Commissioner McLeod thanked Manager McLemore for his efforts and stated that employees are a great asset to the City. Manager McLemore stated the main issue requiring a decision was the pension issue and inquired whether additional information was needed. Commissioner Robert S. Miller spoke on his preference of Option "D" of the Pension Plan; future possibilities; commercial tax base growth; the current commercial tax base; and requested additional information from Staff, specifically the number of employees by department, and years of service. .:..:. AGENDA NOTE: AS DISCUSSION INCLUDED TOPICS RELATED TO BOTH AGENDA ITEMS, COMMISSIONER McLEOD CLARIFIED THAT THE ONLY TOPIC REQUIRING DISCUSSION AT THIS TIME WAS ITEM "A" - DISCUSSION OF THE PROPOSED SALARY SURVEY. .:..:. Commissioner McLeod opened the floor to anyone wishing to speak on this Agenda Item. Mr. Daniel J. Kerr, Police Chief, Police Department: spoke on the recommended salary ranges; concerns with retaining and recruiting employees; the impact the compression issue has on employees; employees that have been left behind; the turnover rate; adjustments to employees; and internal equity adjustments being a priority for consideration. Commissioner Miller requested from Staff a list of employees that would and would not be affected by the internal equity adjustments. Discussion continued on the internal equity adjustment issue; retaining employees; internal equity being the most important issue; and moving everyone to the correct range. Mr. Tim Lallathin, Fire Chief, Fire Department: resignations; the salary and pension issue; the importance of these issues; merit increments; and that "internal equity" was the main issue and salary ranges secondary. CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15,2000 PAGE 7 OF 8 Mr. Cory Green, Firefighter, Fire Department: concurred with Police Chief Kerr and Fire Chief Lallathin with respect to the "internal equity" issue. He further spoke on negotiations with the Firefighter's Union; salary ranges; past Cody and Associates, Inc. studies; and "across the board ranges." Discussion ensued regarding the present pay grade; the internal equity issue; merit at different rates; combination of three issues being a dilemma; a pure range study; moving within the range; promotions; rebalancing; that three different components were being considered; average merit increases; moving of the ranges; and past Cody and Associates, Inc. studies. Mr. Robert Beck, Training Officer, Fire Department: spoke on what is fundamentally fair to employees; the pension plan and salary increase issue; merit increases; and Police and Fire Department rank structure comparisons. Further discussion ensued regarding Police and Fire Department rank structures; and the only relationship being in the "rank name". Mr. Alan Hill, Superintendent, Public Works Department: spoke on the personnel evaluation system; scores; and employee morale. Manager McLemore discussed the evaluation system; and that improvement was needed in the criteria used to describe duties. Mr. Ed Forrest, Battalion Chief, Fire Department: thanked the Members of the Commission for allowing employees to address their concerns with them. Following a brief discussion, Members of the Commission noted that the time to address the salary issue was during the budgeting process; that the Item addressed tonight was strictly for informational purposes only; that Manager McLemore should return to the Commission with information that can be decided on; to continue with merit increases; budget numbers for merit increases; and to review range adjustments and equity issues. Tape 2/Side B .:..:. AGENDA NOTE: THE FOLLOWING TABLED AGENDA. ITEM WAS AGAIN DISCUSSED IN THE ORDER AS DOCUMENTED. .:..:. B. Discussion Of Possible Changes To The Employee Pension Plan. Discussion ensued regarding Manager McLemore explaining Option "D" and "E" thoroughly to employees; employees indicating a preference; ballots; needing to know a budgetary number; determining some kind ofa dollar amount; Option "D" 1,2,3; Option "E" 1, 2, 3: allowing the employees to choose; concentrating on the salary issue; future improvements; the impact to the budget; unavailable budget information; different CITY OF WINTER SPRINGS MINUTES CITY COMMISSION WORKSHOP - MAY 15,2000 PAGE 8 OF 8 alternatives; formulating additional plans; special recognition for long term employees; . handling the pension and salary issues separately; employee contribution; going back to employees with Options "D" and "E"; employees paying it all; and availability of funds. Following a brief discussion regarding the Commission's direction, the consensus from the Commission was to present Options "D" and "E", ("Employees paying it all"), on the ballots for a vote from all employees. Mr. Stephen Keefer, Apparatus Operator/EMT, Fire Department: spoke on the Initial Unfunded Liability; Options "D" and "E"; and noted his preference of Option "E". Mr. Donald James, Superintendent, Parks and Recreation Department: spoke in reference to the Commission obtaining a quantitative number of employees per department prior to holding the vote. Ms. Valerie Mendelson, Investigator, Police Department: spoke on her preference of Option "D"; that the serious issue is the salary issue; and addressing the retirement plan agam m one year. Mr. Doug Seely, Investigator, Police Department: spoke on addressing the pension issue at a later date; and that the salary issue was a "key issue." III. ADJOURNMENT Commissioner McLeod thanked everyone for their attendance and adjourned the Workshop at 10:30 p.m. . . Respectfulll Submitted By'~ 0;:..'7 d Tania Haas Deputy City Clerk "..