Loading...
HomeMy WebLinkAbout2006 09 25 Regular 300 Resolution 2006-52 Defined Benefit Pension Plan COMMISSION AGENDA ITEM 300 Regular September 25, 2006 Regular Meeting MGR. /DEPT. Authorization REQUEST: City Manager requesting the City Commission to approve Resolution 2006-52 providing a study methodology related to possible changes the Commission may desire to make to the City's Defined Benefit Pension Plan. PURPOSE: This agenda item is needed for the Commission to establish an orderly process for providing the Commission with the information it will need to make an informed and intelligent decision regarding the feasibility and desirability of making changes to the City's unified citywide Defined Benefit Pension Plan. CONSIDERATIONS: On September 7,2006, the Commission agreed to go forward with exploration of possible changes to the City's current unified citywide Defined Benefit Pension Plan. Consistent with the City's established practice of adopting study methodologies by Resolution related to complex and potentially expensive policy decisions and in order to provide for an orderly and reliable process of study consistent with agreed upon common expectations, Resolution Number 2006-52 has been attached for Commission approval. FUNDING: The amount of funds required for this study is estimated to be between $35,000 and $55,000 depending upon the progressive steps taken by the Commission in the proposed study methodologies. The source of funds could be General Fund Reserves or Pension Fund Revenues. RECOMMENDATION: It is recommended that the Commission adopt Resolution 2006-52 with any changes it deems appropriate. ATTACHMENTS: 1. Resolution 2006-52. 2. September 7, 2006 Agenda Item 311. (Authority to Prepare Study Methodology) 3. February 28, 2005 Agenda Item 501.e and Resolution Number 2005-09. (Previous Study Methodology Example) COMMISSION ACTION: ATTACHMENT "A" RESOLUTION NUMBER 2006-52 RESOLUTION NUMBER 2006-52 A RESOLUTION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA PROVIDING FOR A STUDY METHODOLOGY FOR THE CITY COMMISSION TO DETERMINE THE FEASIBILITY AND DESIRABILITY OF APPROVING CHANGES TO THE CITY'S CURRENT UNIFIED CITYWIDE DEFINED BENEFIT PENSION PLAN. WHEREAS, On November 10, 2003 the City Commission adopted a unified citywide Defined Benefit Pension Plan for its employees; and WHEREAS, Members of the current Pension Board, and the City Commission desire to explore the feasibility and desirability of making changes to the current plan; and WHEREAS, The City Commission desires to establish a study methodology to provide for an orderly and detailed analysis of information required to provide the City Commission with sufficient information to make an informed and intelligent decision regarding the feasibility and desirability of making changes to the current unified city wide Defined Benefit Pension Plan. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, adopts the study methodology provided herein for the purpose of performing its study of potential changes to the City's current unified city wide Defined Benefit Pension Plan. Section I: Purpose The purpose of this study methodology is to develop the information needed for the City Commission to make an informed and intelligent decision regarding the feasibility and desirability of making changes to the City's unified city wide Defined Benefit Pension Plan. Section II: Task Phase A Orientation - Seotember 27. 2006 Goal: The goal of this phase of the study is to overview the evolution of the City's Defined Benefit Plan, the current provisions of the City Plan, and to review other optional retirement plans that are available to the City. Expectation: It is expected that the participants will become knowledgeable enough of the various retirement plans available to the City, and to be able at a conceptual level to compare the City's current plan with other alternative retirement plans. Resolution 2006-52 Page 1 of 4 Outline: 1. Review of the City's Current Defined Benefit Plan. 2. Review of other Retirement Plan Options. a. Types of Plans i. Defined Contribution Plans ii. Defined Benefit Plans iii. Hybrid Plans b. Types of Defined Benefit Plans i. City Wide Plans ii. General Governmental Plans c. Local Law Plans 1. Unified Police and Fire Plans 11. Police Only Plans 111. Fire Only Plans d. Chapter Plans i. Unified Police and Fire Plans 11. Police Only Plans 111. Fire Only Plans Decision: Policy makers will decide if they desire to go to Phase B, and which plan alternatives are to be studied in Phase B, or to maintain the status quo. Cost: It is estimated that Phase A will cost between $5,000 and $10,000 Phase B. Preliminarv Feasibilitv and Desirabilitv Studv- November 8. 2006 Goal: The goal of this phase is to prepare and review a preliminary report of the feasibility and desirability of implementing alternative plans the Commission may choose to explore. Expectation: It is expected that policy makers will have sufficient information to determine if they desire to go to Phase C. Resolution No. 1284-06 Page 2 Outline: 1. Feasibility: a. Legal Analysis b. Economic Analysis (Cost of current and alternative plans) i. Plan Design ii. Plan Assumptions iii. Benefits iv. Funding Goals v. Participation Rates 2. Desirability Policy Analysis Decision: It is anticipated that the Commission will have sufficient information available to determine if they desire to go to Phase C, or to maintain the status quo. Cost: It is estimated that Phase B will cost between $10,000 and $15,000. Phase C. Detailed Feasibility and Desirability Study - February 14.2007 Goal: The goal of this plan is to develop the final cost and plan documents that are needed for the Commission to decide if they desire to implement a plan option. Expectation: It is expected that City Commission and administrators will have sufficient policy, plan, and contractor documents in place to provide for an orderly transition to the chosen alternative. Outline: a. Final Legal Analysis b. Final Detailed Actuarial Studies and Cost. c. Final Policy Analysis. Decision: The City Commission will decide if they desire to implement an alternative plan option and go to Phase D, or to maintain the status quo. Cost: It is estimated that Phase C will cost between $10,000 and $15,000. Resolution No. 1284-06 Page 3 Phase D. Imolementation - Aorilll. 2007 Goal: The goal of this phase is to implement the chosen alternative plan. Expectation: It is expected that implementation will be made in an orderly and timely manner. Outline: 1. Prepare and adopt final plan design and plan document by Ordinance. 2. Prepare and adopt final amendments to existing plan documents by Ordinance. 3. Appoint Board Members 4. Prepare and adopt amendments to existing contracts with servIce providers. 5. Select, prepare, and adopt contracts with new service providers. 6. Establish appropriate accounting entities and procedures. 7. File appropriate documents with the State Division of Retirement. Cost: It is estimated that Phase D will cost between $10,000 to $15,000, dependent upon the alternative plan design chosen, if any. PASSED AND ADOPTED THIS the 25th day of September, 2006 by the Commission of Winter Springs, Seminole County, Florida, duly assembled. John F. Bush, Mayor ATTEST: Andrea Lorenzo-Luaces, City Clerk Resolution No. 1284-06 Page 4 STUDY STRUCTURE ATTACHMENT "B" SEPTEMBER 7, 2006 AGENDA ITEM 311 City of Winter Springs Special Meeting - September 7,2006 Add-On Agenda Item 311 City Pension Plan COMMISSION AGENDA ADD-ON ITEM 311 Consent Informational Public Hearin Re ular x September 7, 2006 Special Meeting MGR. /DEPT. Authorization REQUEST: City Manager requesting 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. CONSIDERATIONS: On August 14,2006 it appeared that the City Commission indicated its intent to explore the feasibility and desirability of potential enhancements to the City Pension Plan after completion of the budget, investment manager selection process, and update 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 is focused on local law plans to the exclusion 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 desirability 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 City's study model. 2. Determine if the Commission desires to have a work shop with the Commission as requested by Mr. Giltz, and if so determine a satisfactory date with the Commission. ATTACHMENTS: Byron Giltz Letter of August 30, 2006 COMMISSION ACTION: ATTACHMENT "C" FEBRUARY 28, 2005 AGENDA ITEM 501.C And RESOLUTION NUMBER 2005-09 022805_ COMM _Regular _501.1_ Rural_Lands _Resolution _2005-09 COMMISSION AGENDA ITEM 501.1 Regular February 28, 2005 Regular Meeting Mgr. / Dept. Authorization REQUEST: City Manager requesting the City Commission to adopt Resolution Number 2005-09 authorizing the East Rural Transitional Area Development Code project. PURPOSE: This agenda item is needed for the Commission to decide if it desires to go forward with a development plan and related code section for the East Rural Area. CONSIDERATIONS: On February 8, 2005 the Commission held a workshop on alternative development patterns with W.R.T. and Randall Arendt. The consensus of the Commission was to move forward with a program to implement the concepts discussed in the workshop. FUNDING: A supplemental appropriation will be needed in the amount of $50,000 from the General Fund. Funding authortty is discussed in Agenda Item 500.2 022805_ COMM _Regular_50 1.1_ Rural _Lands_Resolution _2005-09 RECOMMENDATION: It is recommended that the Commission do the following. 1. Determine if it desires to go forward with a Rural Area Development program. 2. If so; Approve Resolution 2005-09 with any amendments the Commission deems necessary. ATTACHMENTS: Resolution Number 2005-09 COMMISSION ACTION: RESOLUTION NUMBER 2005-09 A RESOLUTION OF THE WINTER SPRINGS, FLORIDA CITY COMMISSION; INITIATING AN EAST RURAL TRANSITIONAL AREA DEVELOPMENT CODE STUDY PROJECT FOR AN AREA OF EXISITNG RURAL LAND GENERALLY LOCATED EAST OF THE CURRENT INCORPORATED LIMITS OF THE CITY OF WINTER SPRINGS; CREATING AN ADVISIORY COMMITTEE MADE UP OF PERSONS OWNING REAL PROPERTY WITHIN SAID RURAL AREA; AUTHORIZING THE APPOINTMENT OF STAFF AND CONSULTANTS TO SERVE AS TECHNICAL ADVISORS TO THE CITY AND THE ADVISORY COMMITTEE; ESTABLISHING A SCHEDULE OF TASKS TO COMPLETE THE PROJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, property owners located within an area of unincorporated Seminole County commonly referred to as the "East Rural Area" have expressed interest in annexing their property into the City of Winter Springs; and WHEREAS, property owners living within the "East Rural Area" have demonstrated a strong interest in retaining the rural character of the area; and WHEREAS, in the event that property owners within the "East Rural Area" choose to annex their property into the City of Winter Springs in the future, the City Commission of Winter Springs desires to adopt land development regulations ("Rural Transitional Development Code") that specifically guide the manner in which the "East Rural Area" located within the City of Winter Springs will be developed; and WHEREAS, the City Commission of Winter Springs desires that the Rural Transitional Development Code contain development standards that would result in predictable development patterns in the "East Rural Area" that balance the interest of property owners who desire to receive a reasonable return on the investment of their property through development, and those property owners who desire to preserve the rural character of the "East Rural Area; and WHEREAS, the City Commission of Winter Springs hereby finds that the property owners living and owning property within the "East Rural Area" have a significant stake in the "East Rural Area" and should be empowered to be directly involved, at the local level, to study and plan for the future development of the "East Rural Area," including the adoption of a Rural Transitional Development Code that balances a variety of local interests; and City of Winter Springs Resolution 2005-09 Page 1 of5 WHEREAS, the City Commission of Winter Springs also finds that providing a vehicle for local citizens to address local concerns is in the best interests of the public health, safety, and welfare of the community and those persons owning property within the East Rural Area. NOW THEREFORE, BE IT RESOLVED by the City Commission of the City of Winter Springs, as follows: Section I: Mission Statement. It shall be the mission of the City of Winter Springs to establish land development regulations ("East Rural Transitional Development Code") to guide the potential development of "East Rural Area" lands that may be annexed into the City in the future. Section II: Vision Statement. It is the vision of the City of Winter Springs that development patterns in those portions of the "East Rural Area" that may be annexed into the City of Winter Springs should be developed in such a manner that creates a sustainable quality of life; that accommodates population growth in a manner that conserves open spaces; that balances development potential and conservation of lands; that protects lakes, waterways, and potable water resources; that protects environmentally significant wetlands, animal and plant life; that preserves historically significant places and building artifacts; protects significant natural occurring landscape features; that balances the interest of property owners; and that minimizes the negative impacts of urban sprawl. Section III: Property Owner Advisory Committee (a) Establishment. A seven (7) person advisory committee shall be appointed by the City Commission. Each member of the advisory committee shall own property within the East Rural Area. The Mayor and each City Commissioner shall have one appointment to the advisory committee. One member shall appointed by majority vote of the City Commission. The list of committee members shall be attached to this Resolution as Exhibit "A." The advisory committee shall be known as the "East Rural Area Property Owners Committee (ERAPOC). " (b) Responsibilities. In accordance with the schedule of tasks set forth herein, the ERAPOC shall work with the technical advisory staff to develop a Rural Transitional Development Code to accomplish the mission and vision established by the City Commission for those portions of the "East Rural Area" that may be voluntarily annexed into the City of Winter Springs. The Committee may appoint a chairman for purposes of running the committee meetings. No other designated officers shall be permitted. City of Winter Springs Resolution 2005-09 Page 2 of5 Section IV: Technical Staff. The City Commission and the City Manager shall hire qualified professional consultants and assign City staff members to serve as technical staff to the ERAPOC. The City Attorney shall be the legal advisor to the ERAPOC and Technical Staff. It shall be the responsibility of the technical staff to provide technical assistance required by the City and the ERAPOC to accomplish the mission and vision established herein by the City Commission. Section V: East Rural Study Area The East Rural Study Area subject to this resolution contains approximately 1,000 acres of land in the East Rural Area as further depicted on Exhibit "B." Section VI: Study Methodology The Technical Staff shall develop four (4) land development scenarios that will predict and illustrate the potential build-out of each model as follows: 1. Land use patterns and potential development locations. 2. Dedicated conservation acreage and potential locations. 3. Square footage of new commercial development and potential locations. 4. Residential density and potential locations. 5. Recreation and open space areas and potential locations. 6. Assessed value. 7. Population. 8. General Fund Revenue per capita. 9. General Fund Cost per capita. 10. Impact on urban sprawl. The four development scenarios shall be as follows: 1. No further Development. 2. Current County Zoning. 3. Current City Zoning assuming current low density residential densities of 3 units per net buildable acres. 4. Rural Transitional Development Scenario assuming an average density of one unit per net buildable acre. Section VII: Recommendation Format: All recommendations made by the ERAPOC shall be made in writing by consensus as opposed to voting. Minority or opposition recommendations may be presented at the request of any Committee member or Technical Staff person. City of Winter Springs Resolution 2005-09 Page 3 of S Section VIII: Open Meetings and Public Records; Public Input: All meetings of the ERAPOC shall be conducted in accordance with the Florida Sunshine Law and all records shall be handled in accordance with the Florida Public Records Act. The ERAPOC shall entertain relevant public input from interested parties at appropriate times. Section IX. Schedule of Tasks: Task I. Task II. Task III. Task IV. Task V.A. Task V.B. Task VI.A. Task VI.B. Task VI.C. Task VII. Task VIII.A. Task VIII.B. Task IX.A. Task IX.B. Adoption of Resolution Number 2005-09 Appointment of Committee Members Appointment of Technical Staff Organizational Meeting of the ERAPOC a) Introduction of committee members b) Review of Resolution 2005-09. c) Approval of chairperson. d) Establishment of meeting dates and times. Data Collection and Presentation - Technical Staff Data evaluation and feedback - ERAPOC Creation of Four Development Scenarios - Technical Staff. Presentation of Development Scenarios to ERAPOC - Technical Staff. Evaluation of and feedback on Four Development Scenarios - ERAPOC. Refinement of the Rural Transitional Development Scenarios - ERAPOC and Technical Staff. Development of East Rural Transitional Area Design Standards - Technical Staff. Evaluation of and feedback on East Rural Transitional Area Design Standards - ERAPOC. Publication of East Rural Transitional Area Design Standards Recommendations - Technical Staff. Evaluation of and feedback on Design Standards by City Commission - ERAPOC and Technical Staff. City of Winter Springs Resolution 2005-09 Page 40fS Task X.A. Preparation of the East Rural Transitional Area Development Code- Technical Staff. Task X.B. Evaluation of and feedback on East Rural Transitional Area Development Code - ERAPOC. Task X.C. Publication of East Rural Transitional Area Development Code - Technical Staff. Task XI.A. Evaluation of and feedback on East Rural Transitional Area Development Code - City Commission. Task XI.B. Adoption of East Rural Transitional Area Development Code - City Commission. Adopted this the _ Day of City of Winter Springs, Florida. , 2005 by the City Commission of the John F. Bush, Mayor ATTEST: Andrea-Lorenzo-Luaces, City Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY FOR THE CITY OF WINTER SPRINGS ONLY: Anthony A. Garganese, City Attorney City of Winter Springs Resolution 2005-09 Page 5 of5 EXHIBIT "A" PROJECT STRUCTURE MAYOR & COMMISSION RESOLUTION NUMBER 2006-52 A RESOLUTION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA PROVIDING FOR A STUDY METHODOLOGY FOR THE CITY COMMISSION TO DETERMINE THE FEASIBILITY AND DESIRABILITY OF APPROVING CHANGES TO THE CITY'S CURRENT UNIFIED CITYWIDE DEFINED BENEFIT PENSION PLAN. WHEREAS, On November 10, 2003 the City Commission adopted a unified citywide Defined Benefit Pension Plan for its employees; and WHEREAS, Members of the current Pension Board, and the City Commission desire to explore the feasibility and desirability of making changes to the current plan; and WHEREAS, The City Commission desires to establish a study methodology to provide for an orderly and detailed analysis of information required to provide the City Commission with sufficient information to make an informed and intelligent decision regarding the feasibility and desirability of making changes to the current unified citywide Defined Benefit Pension Plan. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, adopts the study methodology provided herein for the purpose of performing its study of potential changes to the City's current unified citywide Defined Benefit Pension Plan. Section I: Purpose The purpose of this study methodology is to develop the information needed for the City Commission to make an informed and intelligent decision regarding the feasibility and desirability of making changes to the City's unified citywide Defined Benefit Pension Plan. Section II: Task Phase A Orientation - September 27. 2006 Goal: The goal of this phase of the study is to overview the evolution of the City's Defined Benefit Plan, the current provisions of the City Plan, and to review other optional retirement plans that are available to the City. Expectation: It is expected that the participants will become knowledgeable enough of the various retirement plans available to the City, and to be able at a conceptual level to compare the City's current plan with other alternative retirement plans. Resolution 2006-52 Page 1 of 5 Outline: 1. Review of the City's Current Defined Benefit Plan. 2. Review of other Retirement Plan Options. a. Types of Plans i. Defined Contribution Plans ii. Defined Benefit Plans lll. Hybrid Plans b. Types of Defined Benefit Plans i. Citywide Plans ii. General Governmental Plans c. Local Law Plans 1. Unified Police and Fire Plans 11. Police Only Plans 111. Fire Only Plans d. Chapter Plans i. Unified Police and Fire Plans ii. Police Only Plans 111. Fire Only Plans Decision: Policy makers will decide if they desire to go to Phase B, and which plan alternatives are to be studied in Phase B, or to maintain the status quo. Cost: It is estimated that Phase A will cost between $5,000 and $10,000 Phase B. Preliminary Feasibility and Desirability Studv- November 8. 2006 Goal: The goal of this phase is to prepare and review a preliminary report of the feasibility and desirability of implementing alternative plans the Commission may choose to explore. Expectation: It is expected that policy makers will have sufficient information to determine if they desire to go to Phase C. Resolution 2006-52 Page 2 of 5 Outline: 1. Feasibility: a. Legal Analysis b. Economic Analysis (Cost of current and alternative plans) i. Plan Design ii. Plan Assumptions 111. Benefits IV. Funding Goals v. Participation Rates 2. Desirability Policy Analysis Decision: It is anticipated that the Commission will have sufficient information available to determine if they desire to go to Phase C, or to maintain the status quo. Cost: It is estimated that Phase B will cost between $10,000 and $15,000. Phase C. Detailed Feasibility and Desirability Study - February 14.2007 Goal: The goal of this plan is to develop the final cost and plan documents that are needed for the Commission to decide if they desire to implement a plan option. Expectation: It is expected that City Commission and administrators will have sufficient policy, plan, and contractor documents in place to provide for an orderly transition to the chosen alternative. Outline: a. Final Legal Analysis b. Final Detailed Actuarial Studies and Cost. c. Final Policy Analysis. Decision: The City Commission will decide if they desire to implement an alternative plan option and go to Phase D, or to maintain the status quo. Cost: It is estimated that Phase C will cost between $10,000 and $15,000. Resolution 2006-52 Page 3 of 5 Phase D. Implementation - April 11. 2007 Goal: The goal of this phase is to implement the chosen alternative plan. Expectation: It is expected that implementation will be made in an orderly and timely manner. Outline: 1. Prepare and adopt final plan design and plan document by Ordinance. 2. Prepare and adopt final amendments to existing plan documents by Ordinance. 3. Appoint Board Members 4. Prepare and adopt amendments to existing contracts with servIce providers. 5. Select, prepare, and adopt contracts with new service providers. 6. Establish appropriate accounting entities and procedures. 7. File appropriate documents with the State Division of Retirement. Cost: It is estimated that Phase D will cost between $10,000 to $15,000, dependent upon the alternative plan design chosen, if any. PASSED AND ADOPTED THIS the 25th day of September, 2006 by the Commission of Winter Springs, Seminole County, Florida, duly assembled. Resolution 2006-52 Page 4 of 5 Study Structure City Commission Pension Board Project Manager Ron McLemore Project Coordinator Kevin Smith Other Resources Christianse & Dehner Law Firm Foster & Foster Actuarial Firm Staff Resources City Manager City Attorney General Services Director Finance Director City Actuary City Pension Attorney City Labor Attorney City Pension Trust Advisors Resolution 2006-52 Page 5 of5