Loading...
HomeMy WebLinkAbout2009 01 27 Board Of Trustees Regular MinutesCITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING JANUARY 27, 2009 CALL TO ORDER The Boazd of Trustees Regular Meeting was called to Order by Chairperson Maria Fair on Tuesday, January 27, 2009 at 6:43 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Maria Fair, present Vice Chairman Vernon Rozelle, Jr., present Board Member Been McMahan, present Boazd Member Max Swaim, present Boazd Member Bazbaza Watkins, present A moment of silence was followed by the Pledge of Allegiance. INFORMATIONAL AGENDA INFORMATIONAL 100. .Not Used. CONSENT AGENDA CONSENT 200. Office Of The City Clerk Approval Of The October 28, 2008 Regular Meeting Minutes. Chairperson Fair opened the discussion up to the Board regarding the Agenda Item. City Manager Kevin L. Smith explained to the Boazd that he hoped to provide an expense report to the Board each Quarter. Discussion continued. Chairperson Fair said, "We need a Motion for Approval of the Minutes of October 28~' [2008]." "I MAKE A MOTION TO APPROVE [OCTOBER 28, 2009 REGULAR MEETING MINUTES]." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER McMAHAN. DISCUSSION. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 2 OF 13 VOTE: CHAIRPERSON FAIR: AYE VICE CHAIRMAN ROZELLE: AYE BOARD MEMBER McMAHAN: AYE BOARD MEMBER WATIGNS: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. CONSENT 201. Office Of The City Clerk Approval Of The January 21, 2009 Special Meeting Minutes. "MOTION TO APPROVE [THE JANUARY 21, 2009 SPECIAL MEETING MINUTES]:' MOTION BY BOARD MEMBER SWAIM. SECONDED BY VICE CHAIRMAN ROZELLE. DISCUSSION. VOTE: VICE CHAIRMAN ROZELLE: AYE BOARD MEMBER McMAHAN: AYE BOARD MEMBER WATHINS: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 300. Not Used. 400. REPORTS No Reports. PUBLIC INPUT No one spoke. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 3 OF 13 REGULAR AGENDA REGULAR 600. General Services Department Presentation Of The Plan Actuarial Report For The Plan Year Ended 9/30/08 By City Actuary Retirement Plan Specialists, Inc. Manager Smith briefly introduced this Agenda Item to the Board. Ms. Sandra R. Turner, CPA, QPA, President, Retirement Plans Specialists, Inc., 81 S Eyrie Drive, Suite 4, Oviedo, Florida: introduced herself to the Board and said, "We're willing to do a Workshop in our office - to go over in detail the mechanics; not only in Defined Benefit Plans in general, but your Plan specific and the history of it. So, if you'd like to have that, we'd like to make that available to you." Much discussion. Ms. Turner continued, "If at some point, if that smoothing technique brings the average investment return below eight percent (8%), then we're going to have to come back in again and -it's not really -working right now. But so faz, we're absorbing the negative year, because we've only had one (1), with the positive years before it. So, we're okay at this point." Discussion. Regarding any Reports that Ms. Turner does for the City, Manager Smith told the Boazd that if they would like, he would also forward these Reports to the Boazd as well. Much discussion. Regarding the GASB Report, Ms. Turner commented, "Ninety-five point six percent (95.6%) is phenomenal; you just don't get those kind of numbers. This is a very healthy plan." Discussion continued. Tape 1/Side B Further discussion ensued in which Ms. Turner said, "So, up to this point in time, this was an extremely healthy plan and probably still is compared to everybody else." Next, Ms. Turner handed out the following documents called "CITY OF WINTER SPRINGS RETIREMENT PLAN ACTUARIAL ASSET VALUE VS. MARKET VALUE AS OF SEPTEMBER 30"; "CITY OF WINTER SPRINGS RETIREMENT PLAN CURRENT FUNDING METHOD OF FROZEN INITIAL LIABILITY as of October 1, 2008"; "CITY OF WINTER SPRINGS RETIREMENT PLAN Illustration of Fresh Start Frozen Entry Age Normal Funding Method as of October 1, 2008"; "CITY OF WINTER SPRINGS RETIREMENT PLAN AS OF OCTOBER 1, 2008 PRESENT FUNDING METHOD OF FROZEN INITIAL LIABILITY"; and "CITY OF WINTER SPRINGS RETIREMENT PLAN Mazket Value of Assets vs. Present Value of Accrued Benefits as of October 1,". CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 4 OF 13 The handout entitled "CITY OF WINTER SPRINGS RETIREMENT PLAN ACTUARIAL ASSET VALUE VS. MARKET VALUE AS OF SEPTEMBER 30" was referenced and discussed. Ms. Turner then referenced the "CITY OF WINTER SPRINGS RETIREMENT PLAN CURRENT FUNDING METHOD OF FROZEN INITIAL LIABILITY as of October 1, 2008" document that she had distributed earlier. Discussion ensued on this paper. Ms. Turner said, "Something that we really want to see moving forward is now that we've finalized and we've done the last three (3) -the last increment and we're kind of set on all service being at three percent (3%), taking the time to consolidate all the pieces that we've added on and aze trying to pay on a current pay basis; put them all together and create a new past service liability." Further discussion. Next, Ms. Turner referenced the "CITY OF WINTER SPRINGS RETIREMENT PLAN Illustration of Fresh Start Frozen Entry Age Normal Funding Method as of October 1, 2008" document and discussion continued. Continuing, Ms. Turner said, "I don't think that anything on the horizon that I know of that's going to be impacting any significant higher expenses at this point in time as far as my expectations are concerned." Further discussion. Ms. Turner then referenced the document called "CITY OF WINTER SPRINGS RETIREMENT PLAN AS OF OCTOBER 1, 2008 PRESENT FUNDING METHOD OF FROZEN INITIAL LIABILITY" and discussion continued on this document. Discussion ensued on the "CITY OF WINTER SPRINGS RETIREMENT PLAN Mazket Value of Assets vs. Present Value of Accrued Benefits as of October l," handout that Ms. Turner had distributed eazlier. Next, Ms. Turner said, "So, for the most part, yes, we have a one (1) yeaz drop, but historically speaking for this plan, that's a good number of ten years of it now, it's done very well as faz as keeping pace. But we have to keep an eye on it - I would like to make sure we kind of pay what we have and not worry about adding any more to it for awhile." Discussion. Chairperson Fair referenced a document that was passed out to the Boazd Member prior to the Meeting called, "Funding Public Pension Plans" and mentioned that it would be something that she would like to speak about in the future. Discussion continued. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 5 OF 13 Regazding how many times the Plan is valued, Ms. Turner commented, "I think it would be a great idea to take a look at it more frequently. I'd love to come in, like, o~i a six (6) month basis" Ms. Turner spoke of the Reports she ran for the City Manager and said, "So, we do have a lot of numbers that were running interim that could be presented to you guys, if you'd to see them." Chairperson Fair said, "Yes, I think so. I think that it would be good for us..." Boazd Member Swaim said, "...Sure do..." Chairperson Fair added that the information that City Staff send out periodically would be helpful Further discussion. Regazding the Investment Managers being able to reach eight percent (8%) in the future, Ms. Turner said, "That's going to be a problem going forwazd if we can't get eight percent (8%) -futuristically speaking. And that's something that really has to be addressed. Can we get back to that level or is the day of eight percent (8%) and ten percent (10%) averages gone? Do we really need to say we're not going to make this up; we're going to have to make it up in deposits, not make it up - as interest." Discussion. Regazding the issue of the "Fresh Start", Manager Smith said, "No, ma'am, it hasn't gone before the Commission. I was adamant that this Boazd needed to review that -before any decision was made fora `Fresh Start' that a recommendation would first come from this Boazd and then to City Commission for Approval. So, no, we have not done that." Discussion continued. Boazd Member Watkins asked Ms. Turner if she thought it was time to change the interest rate? Ms. Turner replied, "It depends on what you can afford -that might be not a bad idea." Chairperson Fair said, "I think that one of the things that I would like to see is that number, if you would actually use a lower rate of interest, run the `Fresh Start' with that new rate of interest and let us look at that before I would be comfortable making any kind of recommendation to the Commission that is some numbers that I would want to see." Ms. Turner said, "Excellent." No objections were noted. Discussion continued. Board Member McMahan departed the Meeting at 8:10 p. m. Further discussion. "I WOULD LII~ TO MAKE A MOTION THAT WE SET ALL COSTS THAT ARE CURRENTLY BEING PAID OUT OF THE GENERAL FUND TO KNOCK UP AGAINST THE PENSION FUND AND THEY - BE REFLECTED AS COST TO THE PENSION PLAN." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. BOARD MEMBER ROZELLE SAID, "I THINK THE MOTION MIGHT NEED TO BE AMENDED TO THAT YOU ARE ACTUALLY -YOUR RECOMMENDING TT. I AM NOT SURE IF YOU WANT TO INCLUDE THE LANGUAGE, IT'S A RECOMMENDATION TO THE COMMISSION." DISCUSSION CONTINUED. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 6 OF 13 CHAIItPERSON FAIR CLARIFIED THE MOTION, "I WANT TO MAKE SURE THAT WE -UNDERSTAND WHAT MAX'S (SWAIlVI) MOTION WAS AND TO MAID SURE THAT WE UNDERSTAND - I AM ASSUMING MAX (SWAIlVI) THAT YOU ARE WANTING TO -RECOMMEND TO THE COMMISSION TO GO AHEAD AND JUST REGARDLESS OF WHAT ANY STUDY WOULD BE, TO TAKE THE -FEES. DO YOU WANT -FOR HER TO DO A STUDY? DO YOU WANT TO RECOMMEND FOR HER TO DO A STUDY OR DO YOU JUST WANT TO SEND A RECOMMENDATION TO THE COMMISSION..." BOARD MEMBER SWAIM STATED, "...SEND A RECOMMENDATION TO THE COMMISSION THAT ALL COSTS ASSOCIATED WITH THE PLAN BE CHARGED TO THE PLAN." VOTE: BOARD MEMBER WATHINS: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE VICE CE[~~IRMAN ROZELLE: AYE MOTION CARRIED. Discussion continued. Tape 2/Side A Regarding Ms. Turner running a report with the lower interest rate, Chairperson Fair asked, "What is it going to cost the City for you to do that?" Ms. Turner replied, "I'm not going to charge you for that. I can get that tomorrow." Brief discussion. Chairperson Fair asked, "So, you can run that?" Ms. Turner replied, "I can get you that tomorrow." Chairperson Fair asked, "And what point can we look at this because I think timing is pretty important? Could that be something we could look at when we have..." Manager Smith said, "...The interviews..." Chairperson Fair continued, "...Yes." Brief discussion. Manager Smith asked Ms. Turner, "If you email them to me, I'll simply -ask Danielle (Harker) to be so kind as to forward them to the Board Members, if that meets with your Approval?" Chairperson Fair said, "Absolutely. And then that way that would give us that information so that we convene again, whatever that date is, we can hopefully have that on the Agenda at that time." Manager Smith clarified, "She's going to look at rewriting the `Fresh Start' numbers; trying to determine what that percentage rate would be to match our eighteen percent (18%) current funding..." Ms. Turner said, "...On the fifteen (15) year level." Discussion. CITY OF WINTER SPRINGS, FLORIDA bIINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 7 OF 13 Next, Manager Smith asked Ms. Turner, "I'd also be interested in knowing and it maybe similar, what the quarter percent reduction would result in as faz as funding; looking at it the original way we talked about. I don't know that the eighteen percent (18%) is guaranteed going forwazd - I don't know where we're going to end up as faz as whether or not we'll continue to fund at eighteen percent (18%)." Ms. Turner said, "I'm just going to be conning right off of this; what it does to this." Chairperson Fair commented, "Yes." Ms. Turner continued, "And then I'll give you what the quarter percent looks like as a percent." Mr. Smith said, "I would appreciate that, if that's okay with the Board." Chairperson Fair said, "That sound good. Yes, I would like to see that as well." No objections were noted. Further discussion. REGULAR 601. General Services Department Presentation From Galliard Capital Management, Inc. Ms. Carrie A. Callahan, Principal, Galliard Capital Management, 800 LaSalle Avenue, Suite 1100, Minneapolis, Minnesota: spoke on Galliazd Capital Management; how the company runs; and reviewed the "Galliard Capital Management" portfolio. Next, Ms. Callahan explained, "You have a yield on this Portfolio right now at six point eighty-eight percent (6.88%)." Ms. Callahan continued, "That is unlike yield we've ever seen before in this Portfolio: ' Ms. Callahan added, "So, if nothing else happens, who knows what that means; if no additional sectors completely, the bottom fell out, you would earn six point eighty-eight percent (6.88%) on this money. If values come up, anything positive adds to that, the duration contribution adds to the positives, that kind of thing, it could be something more." Continuing, Ms. Callahan said, "We have no significant concerns of any credits in this Portfolio right now. We're not holding a bunch any one (1) particular position that we're concerned about." Much discussion. Regarding how many Bonds that have gone to default status in the history of Galliazd Capital Management, Ms. Callahan said, "And in the history of the firm, across all Portfolios, there were six (6)." Ms. Callahan continued, "Three (3) of them came back; two (2) of them didn't; and one (1) was Enron [Creditors Recovery Corporation], which was nothing we ever bought; it was a piece we inherited." Discussion. Ms. Callahan stated, "We don't have anything in this -Portfolio that we're currently concerned about." Further discussion. Ms. Callahan said, "Galliard [Capital Management] has become one (1) of the top twenty-five (25) buyers on Wall Street in the last now five (5) or six (6) months because no one else has cash." Much discussion. CITY OF WINTER SPRINGS, FLARIDA MINiTI'ES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 8 OF 13 REGULAR 602. General Services Department Presentation Of Investment Review Report For The Quarter Ended December 31, 2008. Mr. West handed out an updated "Defined Benefit Plan & Trust for Employees of The City of Winter Springs 4~' Quarter 2008" and discussed the document with the Board. Next, Mr. West said, "Page 10 [of 39] is an addition to what you had previously received in our mail out." Mr. West continued, "What we always will do for you is put in an executive summary." Further discussion. Tape 2/Side B Regarding page 15 of 39, Mr. West said, "I must apologize, the net and gross labels on this have been reversed, so when we submit the Final Report, with -the updated data, we'll - be sure that this is corrected." Discussion. Regarding the International Equity Portfolio on page 29 of 39, Mr. West said, "With this quarter and the last Quarter - we have three (3) Quarters actually of under performance. And again, I just wanted to make the point because - that's a fair level of under performance from that group. We haven't had the four (4) successive Quarters in a row, but I just want to alert you, that it is an element of the Policy and we are flagging it." Mr. West continued, "We've been in constant contact with Mike Spencer [Michael M. Spencer, CFA, Principal & CIO, Freedom Capital Management, LLC] and have been up - to the shop with Bernie [Bernard] Horn, the lead behind the Polaris [Capital Management] group that's sub-advising up there in Boston and we remain confident in - that strategy." Much discussion. Regarding reviewing the Investment Policy Statement prior to rebalancing the Portfolio, Mr. West said, "Our recommendation is, it's - been a year, we'd like to review annually and we do have some -changes we'd like to propose to the Policy and I think, absolutely, it probably, given that this also is a new Board, it would - it would be appropriate, very appropriate to thoroughly go through the Investment Policy Statement before doing that." Chairperson Fair clarified, "Prior to rebalancing?" Mr. West responded, "Prior to rebalancing." Further discussion. Regarding Voyager Asset Management, Inc., Chairperson Fair asked, "Given the current environment, given -what we do know -what is your advice on considering that a little sooner than just four (4) consecutive Quarters?" Mr. West replied, "On the Voyager [Asset Management, Inc.]?" Chairperson Fair replied, "Yes." Mr. West continued, "Our position on Voyager [Asset Management, Inc.] is to stand in -we're completely comfortable with the methodology; the strategy that's being employed there." CTrY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 9 OF 13 With further discussion, Manager Smith said, "On the four (4) recommendations -that the first one is underway, as you all know, the replacement of Snow [Capital Management, LC]. I think Dave (West) and his group are going to monitor Galliard [Capital Management] and Voyager [Asset Management], per their -policies. I think I'm hearing a consensus of the Board to -look at the Investment Policy (Statement) before we consider rebalancing, and if that it is accurate, then I think it is appropriate for a Motion from the -dais - to direct Dave (West) and his group to review, update the Policy, bring it back to you for your review; and once you all are all comfortable, then we'll take it to the Commission for recommended Approval." "I WOULD BE GLAD TO MAKE A MOTION THAT WE ASK THE BOGDAHN GROUP TO REVIEW OUR CURRENT INVESTMENT POLTCY STATEMENT, TO MAKE RECOMMENDATIONS AND TO BRING IT BACK TO US AT A MEETING UPCOMING." MOTION BY CHAIRPERSON FAIR. SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. VOTE: BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE VICE CHAIRMAN ROZELLE: AYE BOARD MEMBER WATKINS: AYE MOTION CARRIED. REGULAR 602. General Services Department Discussion With Joe Bogdahn Of The Bogdahn Group On 185 Pension Plans. Discussion ensued on the Sunshine Law. Manager Smith said, "Joe (Bogdahn) is the principal with the Bogdahn Group and it's a privilege to have him here tonight and we appreciate him being here." Mr. Joseph Bogdahn, Principal, The Bogdahn Group, 340 West Central Avenue, Suite 300, Winter Haven, Florida: distributed a document called `Participating Police and Fire Pension Funds as of August 22, 2008'. Further discussion. Tape 3/Side A With fi~rther discussion, Mr. Bogdahn said, "Your Plan may not meet the minimum provisions of the Chapter, but that doesn't mean that just because you now start taking those monies that you have to now fund to bring those up." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 10 OF 13 Mr. Bogdahn continued, "All it says is that - if you receive those monies, that money has to be used for benefit improvements for the Plan; it can't be used to offset City cost. But those benefit improvements can include bringing -you up to the Chapter minimums." Continuing the discussion on 185 Pension Plans, Boazd Member Swaim asked Mr. Bogdahn, "Are you familiar enough with our Pension Plan to know how it stacks up against the State minimum requirement to understand what our additional cost would be?" Mr. Bogdahn replied, "With regazd to what the cost would be, no; that would be something your actuary would calculate in." Further discussion. Mr. Bogdahn said, "I would recommend that you would engage a -Pension Attorney that has specific experience in this area to help you with that." Next, Mr. Bogdahn said to Deputy City Clerk Hazker, "I'll get your email address and before I leave, I'll email you the link for the Division of Retirement's website and then you could forward it out to everybody." Brief discussion. Mr. Bogdahn continued, "The first step would be to get an idea of -cost, of what - it would cost you to have that done." Mr. Bogdahn continued, "Get an Attorney to give you an idea of what would it cost to -walk through this process with us and get then from the actuary, what would it cost to cost out the differences; to provide that cost study." With further discussion, Mr. Bogdahn said, "There are some Plans out there that did something a little different. And it -maybe that they had to meet, and this is a legal question and I'm not an Attorney, but it maybe that -the general plan they're in met the provisions, but some of them have taken the State monies and they've used that just to create a shaze plan for the Police Officers, which would be a supplemental plan for it; and that maybe an option and an alternative as well." Discussion continued. Chairperson Fair asked Mr. Bogdahn, "What would be your recommendation as our Pension Advisor as to how to address this 185 option?" Mr. Bogdahn replied, "We'd be pleased to put together and have a number of different Pension Attorneys provide you quotes on -roughly what that would cost." Next, Mr. Bogdahn continued, "And the other part would be just to touch base with Sandy (Turner) -here are the minimum provisions of the State Statutes. If for the Police officers, we provided this -what would that cost be? And ask her what it would cost for her to determine what that cost would be. That would give you an idea of what kind of your -understanding cost would - be to get going." Brief discussion. Manager Smith said, "It's important to know that we do have a Pension Attorney already - hired - I do agree with Joe (Bogdahn) that it may be better to heaz an approach from someone like Scott Christianson, I'm assuming you're referring to." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 11 OF 13 Next, Manager Smith said, "At that time the benefit levels that we're currently at, the cost to get up to minimum benefits of the State Plan was prohibitive when compared to the projected amount of tax dollazs, premium dollazs, we were going to receive. It far out- weighed the amount of funds that we had." Manager Smith continued, "There were several things that we don't have in our Plan that we were going to have to pay for." Continuing, Manager Smith said, "I'm concerned about the viability of our current Plan, as it is. I'm concerned because of the losses for our ability to fund with taxpayer's dollazs this specific Plan." Mr. Smith continued, "This has caused me to be in a position to be extremely concerned about our Plan, so I would be also concerned about potentially adding additional benefits through a -185 Plan -even with the premium dollars. I think maybe holistically we need to back up -and take a -global approach and say -number one (1), can we even continue our Plan as it stands? Should we look at alternatives such as a 185 Plan?" Chairperson Fair asked, "What about a Defined Contribution Plan?" Manager Smith suggested, "Let's look at 185; let's do the study that Joe (Bogdahn) said." Further discussion. Manager Smith said, "Let's look back at potential for 185 Plans and take a look at the premium dollars and -how it would work out; even though we looked at it before and the cost to implement those benefits were far above that. However, I need to qualify that, based on what Joe (Bogdahn) said tonight. The advice that we received at that point in time from our Attorney, was that those premium dollars could not be used to get up to the minimum benefits. That's a huge difference from what Joe (Bogdahn) is telling us tonight and could dramatically and perhaps did dramatically -effect that decision - again, the advice that we received was that we couldn't use those monies to reach the minimum of benefits." Mr. Bogdahn remarked, "Yes, you can." Discussion continued. Chairperson. Fair said, "So, I think that it is very timely -that in addition to the 185 - I think it is probably prudent at this point, given the data that we have and the information available, I think we should consider other alternatives." Mr. Smith said, "That would be my recommendation." Much discussion. Regarding using the monies from the State to bring the Plan up to the minimum standazds, Mr. Bogdahn said, "It's not an unfunded mandate and the State monies - would have to be used to bring your Plan up to the minimums first. So, those monies absolutely could be used to -get you from the disability from no disability to the minimum disability." Further discussion. Chairperson Fair asked Mr. Bogdahn, "If you could please send the information, the email to Danielle (Harker), so then, I think, she could probably send that website out to the members of the Boazd so that we can take a look at that, look at the [Florida] Statutes..." Mr. Bogdahn replied, "...Sure...." Chairperson Fair continued, "...And get a better idea of our understanding of it going forward." CTTY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 12 OF 13 Mr. Smith replied, "While I am -concerned about the on-going viability of this Plan - I have a different hat that makes me equally. concerned about my employees; the employees here at the City. Joe (Bogdahn) is absolutely right, it's going to be very difficult -recruit and retain employees -they can go to Oviedo for a DB (Defined Benefit) Plan and I'm just offering a DC (Defined Contribution) Plan. For that reason, a 185 might be viable. But again, I think we should look at all options; including a DC (Defined Contribution) Plan; including some type of hybrid; maybe the Florida Retirement System. All options -available to us to see -what's the best route to go to address this -very critical financial issue, but to also look at the equally critical human resource issue." Further discussion. Chairperson Fair asked Mr. Bogdahn if the City Commission asked him, would he be willing to speak to them about the 185 Pension Plans. Mr. Bogdahn replied, "Sure." "I WOULD LIKE TO MAKE A MOTION THAT WE REQUEST THAT THE COMMISSION CONSIDER REVISITING THE PERIMETERS OF A 185 PLAN." MOTION BY CHAIItPERSON FAIR. SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. CHAIRPERSON FAIR CLARIFIED, "MY MOTION IS JUST TO REALLY ASK THEM TO REVISIT THE CONSIDERATION OF THAT. IT WOULD REALLY BE UP TO THEM BASED ON MY MOTION FROM THEM TO DECIDE WHETHER OR NOT THEY WANT TO PURSUE IT OR NOT." DISCUSSION CONTINUED. VOTE: VICE CHAIRMAN ROZELLE: AYE CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. Discussion ensued on the next Special Meeting date. Tape 3/Side B With further discussion on the Special Meeting date, Chairperson Fair asked the Board, "Anybody have a conflict with the 17~' [February 2009]?" No objections were noted. Discussion continued. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -JANUARY 27, 2009 PAGE 13 OF t3 Mr. West said, "If it's acceptable to the Advisory Board, twenty (20) minutes for presentation and ten (10) is pretty standard. So, thirty (30) minutes for a Manager." Mr. Smith asked, "What time would you all like to start?" Chairperson Fair asked, "Is there anyway that we could start at 6:00 [p.m.]?" No objections were noted. Chairperson Fair continued, "So, why don't we say 6:00 on the 17th [February 2009] is that acceptable to everybody?" No objections were noted. Mr. West stated, "We will go ahead and get the invitation out tomorrow with a request that all presentation material be delivered and transmitted in advance of the Meeting and if one (1) week prior is sufficient for everyone, I'll put that in the direction." Chairperson Fair remarked, "Right, excellent." ADJOURNMENT Chairperson Fair adjourned the Regular Meeting at 10:37 p.m. RESPECTFULLY SUBMITTED: . D ISLE HARKER I~~I'UTY-CITY CLERK NOTE: These Minutes were approved at the April 28, 2009 Board of Trustees Regular Meeting.