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.
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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.
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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
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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).
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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.
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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.
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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
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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
"..