HomeMy WebLinkAbout2006 09 01 Other Handout Given During Meeting
Date: September 1, 2006
The attached was distributed during this Lunch
Meeting held at the Tuscawilla Country Club on
September 1, 2006.
City of Winter Springs
Special Meeting - September 7, 2006
Add-On Agenda Item City Pension Plan
Add-On
Item 311
Regular
September 7, 2006
Special Meeting
Request: City Manager reguesting the City Commission to clarify its intent
relative to exploring alternative enhancements to the City pension plan.
Purpose: This agenda item is needed for the Commission to clarify its intent
relative to exploring alternative enhancements to the City Pension Plan.
Considersations: On August 14, 2006, it appeared that the City Commission
indicated its intent to explore the feasibility and desireability of potential enhancements
to the City Pension Plan after completion of the budget, investment manager
selection process, and ipdate to the pension plan documents.
Byron Giltz has filed a letter with the Pension Board, City Commission and my office
requesting a meeting with the Commission to discuss the Pension Plan. Based
upon my interpretation of Mr. Giltz's letter, it appears to me that he focueses on
local law plans to the exclustion of other alternatives.
Funding: N.A
Recommendation: It is recommended that the City Commission do the following:
1. Clarify if the Commission desires to move forward at this time with the
exploration of the feasibility and desireability of the alternative enhancements to the plan and,
if so, direct the City manager to develop a detailed study methodology
and cost estimate consistent with the Ciyty's study model.
2. Determine if the Commission desires to have a work shop with the Commission
as requested by Mr. Glitz, and if so determine a satisfactory date with the Commission.
Attachments:
Byron Glitz Letter of August 30, 2006
Commission Action:
City of Winter Springs
Special Meeting- September 7, 2006
Add-On Agenda Item - Communication with Consultants
Add-On
Item 312
Regular
September 7, 2006
Special Meeting
Request: City Manager requesting the City Commission to provide the City
Manager with directions regarding Pension Board communications with the
Pension Plan Consultants.
Purpose: This agenda item is needed for the Commission to determine if the
City Commission desires to amend current practices regarding Pension
Board Members communicating directly with Pension Plan Consultants.
Considerations: Currently, the City Manager serves in the capacity of the
Pension Plan Administrator relative to the day to day administration of the
Plan.
Currently, Pension Board Member's questions are directed to the City
Manager, who directs the question to the various consultants if he cannot
answer them, and then advises the Pension Board of such inquiries and
the answers so that all persons have the advantage of understanding the
questions and the answers.
This process is consistent with the City Charter, and with City budget and
procurement rules.
This process is necessary for the following reasons:
1. Under the City Charter no one is allowed to create a financial obligation
upon the City other than the City Manager. This is necessary in this form of
government in order to maintain financial checks and balanaces. The
legislative body appropriates; the executive body spends in accordance
with the appropration.
2. The Charter further stipulates that no one can direct the work task of persons
under the direction of the City Manager, and that all directives to the City
Manager are vested in the City Commission has a body. Pension Plan
Consultants work under the direction of the City Manager, who manages
them in accordance with the collective direction of the City Commission.
3. In order for the Pension consultants to be able to coordinate their services
with the City in a consistent manner, they desire to have a central authority
to work with.
4. The fiduciary literature I have reviewed seems quite clear regarding the
fiduciary's mandate to act according to established law and practices,
discourages trustees from action as individuals in the alternative to acting
as a collective authority, including giving advice and opinions to employees
and discourages individuals from acting as a spokesman for the Board
particularly in
giving advice or direction to employees of the Plan. This kind of language
tends to suggest that individual members of the Board contacting consultants
and plan employees regarding pension matters is to be discourages in favor
of official acts of the Board carried cut through the Plan Administator.
This Commission could approach this in several ways.
1. The Commission could authorize an appropriation to fund individual inquiries
with consultants that do not exceed a defined cost, and require that the full
board be given written copies of the consultant's response.
2. The Commission could require that all inquiries to consultants be in writing
and copies to the plan administrator and all board members, and that all
responses be copied to the plan administator and board members.
3. The Commission could direct that all inquiries and answered at open board
meetings.
4. Continue the current practive of all inquiries being directed to the City
Manager acting as the Plan Administrator.
5. Other appropriate directivies consistent with the City charter.
Funding: N.A.
Recommendation: It is recommended that the City Commission provide the City Manager with direction
it deems lawful and appropriate regarding individual pension board members
contacting pension plan consultation.
Attachments:
Commission Action:
Commission Agenda
Consent
Item 400
August 28, 2006
Regular Meeting
Request: City Manager Advising the City Commission of information regarding
the State of Florida 38th Annual Pension Trustees Conference and requesting
the City Commission authorize the payment of mileage and meals for persons
who desire to attend.
Purpose: This agenda item is needed to advise the City Commission of
information regarding the State of Florida 38th Annual Pension Trustees
Conference and to request authorization for the payment of mileage and meals
for those persons who desire to attend.
Considerations:
The State of Florida Division of Retirement's 38th Annual Police Officers and
Firefighters Pension Trustees Conference will be held as follows:
Dates: October 25-27, 2006
Location: radisson Barcello Hotel & Resort Orlando
8444 International Drive
Orlando, FL 32819
Cost: Registration is free and will be held-on site.
October 25th will be a pre-conference program designed for new trustees.
October 26th and 17th will be the regular conference program for all trustees,
service providers, particpants and all other interested parties. A detailed
agenda is not currently available for this conference. we will provide it to
interested participants as soon as it becomes available. The agenda will
also be posted on the State Division of Retirement's website at:
http://dms.myflorida.com/human_resource_support/retirement/municipal_
police_and_fire.
Per the State Division of Retirement, this program is relevant to trustees of
general city plans, not just Police and Fire specific plans, as the information
provided will be general in nature and cover topics germane to all governmental
pension programs.
Funding:
Conference registration is free. It is anticipated that the cost of the conference
for mileage and meals would be less than $2,500.
Recommendation:
It is recommended that the Commission authorize the City to pay mileage and
meals for members of the Pension Board and City Commission and pertinent
staff who have fiduciary responsibilites who desire to attend the conference.
Attachments: None.
Commission Action:
Law Offices
Christiansen & Dehner, P.A
63 Sarasota Center Blvd.
Suite 107
Sarasota, Florida 34240
Scott R. Christiansen
H. Lee Dehner
Phone (941) 377-2200
Fax: (941) 377-4848
August 28, 2006
Byron Giltz
Winter Springs Defined Benefit
Plan and Trust
P.O. Box 195485
Winter Springs, Florida 32719
Re: Winter Springs Defined Benefit Plan and Trust
Dear Mr. Giltz,
We have represented municipal and district pension funds in the State of
Florida since 1979 and our firm currently represents funds for:
Anna Maria Apopka Arcadia Auburndale Avon Park Bartow Belleair
Belleair Bluffs Belleview Bonita Springs Bradenton Brooksville Bunnell
Cape Coral Casselberry Clearwater Cocoa Cocoa Beach Crestview
Dade City Daytona Beach Destin Dunedin East Lake Tarpon Englewood
Estero Ferdinanda Beach Ft. Myers Ft. Walton Beach Frostproof Gulfport
Haines City Holmes Beach Kissimmee Lady Lake Lake Alfred Lake Mary
Largo Leesburg Longboat Key Lynn Haven Melbourne Milton Mount Dora
Neptune Beach New Port Richey New Smyrna Beach North Bay North Port
North River Ocala Ocoee Okaloosa Island Orange Park Ormond Beach
Oviedo Palm Beach Gardens Palm Harbor Palmetto Panama City
Panama City Beach Perry Plant City Port Orange Port St. Lucie Punta Gorda
Sanford Sarasota Sebastian Sebring Seminole South Manatee South
Pasadena South Walton St. Augustine St. Cloud St. Pete Beach Sunrise
Tallahassee Tarpon Springs Titusville Venice Winter Garden Winter Haven
Winter Park
My partner, Lee Dehner, has been a regular speak in pension conferences
and trustee schools for many years. He has been active in legislative matters
concerning Florida municipal pension plans through commitee membership,
drafting of proposed statutory amendments and testimony before committees
of the State House of Representitives and Senate. He is an elected
member of Who's Who in Practicing Attorneys, a member of the National
Association of Public
Mr. Byron Glitz
August 28, 2006
Page 2
Pension Attorneys, the American Bar Association, the Florida Bar Association
and the Sarasota County Bar Association. Our firm is a member of the Florida
Public Pension Trustees' Association.
I have practiced in the area of governmental and administrative law for over
twenty fours years and have, int he last fourteen years, devoted the vast
majority of my practive to representing our municipal and district pension
clients, therefore, giving our firm the necessary depth to handle our pension
clients needs in an efficient and timely manner. I am also a member of the
National Association of Public Pension Attorneys, the American Bar Association,
and the Florida Bar Association and the Sarasota County Bar Association.
Our firm concentrates its practice in the comprehensive respresentation of
muicipal and district employee retirement plans in Florida and currently
represents over 165 public plans in over 90 cities and districts throughout
the State. Advice is provided in all areas of law applicable to retirement
plans such as fiduciary standards and liability administrative procedures,
tax, disability retirement, benefits, plan design, filing requirements and state
and federal compliance. We represent public funds on a time basis at the rate
of $250.00 an hour for legal services and one-half that rate for travel time plus
reimbursement for out-of-pocket expenses incurred in connection with
respresentation and travel.
If retained by the Board, we would begin our resprentation by reviewing the
administration of the plan and all documents including, but not limited to,
investment related policies, procedures, contracts, acturial valuation reports,
investment reports, summary plan descrptions, employee handbooks, audits,
codes, ordinances and trust agreements. We would then meeting with
the Board and report on our findings and make appropriate recommendations
with respect to federal and state compliance, existing plan documents and
the administration of the Fund. We frequently find that a new client requires
many of the documents specified above to be completley revised or provided
for the first time. In addition, we will discuss tax opportunites such as the
adoption of an Employer Pick-up Planm pursuant to Internal Revenue Code
Section 411(h)(2) and fiduciary liability protection. Among the areas of state
and federal compliance that would be discussed with the Board are public
meetings, public records, confidentiality, financial disclousre, conflicts of
interest, tax requirements, discrimincation, forfeirtures, participation
requirements and Chapters 112, 119, 175 and 185, Florida Statutes, among
others.
I trust that the information contained herein will be helpful. I will be happy to submit
additional information.
Yours very truly,
Scott R. Christiansen
SRC/ajb