HomeMy WebLinkAbout2009 02 09 Regular 602 First Reading of Ordinance 2009-01 Board Of TrusteesCOMMISSION AGENDA
ITEM 602
I Consent I I
I Informational I I
I Public Hearing I I
X
February 9, 2009
Regular Meeting
MGR. ~'1~ /DEPT.
REQUEST: City Manager requesting the Commission to consider approval of first reading of
Ordinance 2009-01 to implement the recommendation of the Board of Trustees regarding the payment of
pension-related administrative expenses.
PURPOSE: This agenda item is needed for the Commission to consider approval of first reading of Ordinance
2009-01 to implement the recommendation of the Board of Trustees regarding the payment of pension-related
administrative expenses.
CONSIDERATIONS:
Per City Code Section 14-51 (c), all costs of the City's pension plan are to be "paid entirely by the City from the
General Fund." However, current and past practice has been that expenses related to investment manager fees
are paid from the Pension Fund, while administrative expenses such as actuarial services, legal services and
investment advisory services (Bogdahn Consulting) are paid from the General Fund.
At its January 27, 2009 regular meeting, the Board of Trustees discussed this issue and concluded that ALL costs
of the Pension Plan should be paid from the Pension Fund and that the City Code should be amended,
accordingly. Thus, the Board voted unanimously to recommend such to the Commission.
If the Commission desires to approve this recommendation, an ordinance will need to be adopted to amend the
current code and effect said change. That ordinance is attached and includes the following amendment:
Sec. 14-51. Adopted.
(c) The cost of the plan shall be paid entirely by the city from the general ep nsion fund.
Additionally, during the staff's review of this issue, it was discovered that Section 14-51 (a) included outdated
language that does not reflect the current plan status. Specifically, Section 14-51 (a) refers to the City providing a
"moneypurchase pension plan and trust" for its employees. While the City did in fact previously provide a
"money purchase" plan for its employees, this is no longer the case. Thus, the attached Ordinance 2009-01 also
includes language to properly update Section 14-51 (a) as follows:
Sec. 14-51. Adopted.
(a) The City does hereby elect to provide for its employees a m~ey-p~rsk-ase pension plan and
trust, such plan and trust to be known as the "Pension Plan for the Employees of the City of
Winter Springs, Florida" (hereafter referred to as "the plan"). The plan shall be administered by a
board of trustees as appointed in Section 14-52.
This amendment will provide consistency with the current plan type/status as well as provide flexibility for future
plan changes by simply referencing a "pension plan" as opposed to a specific type of plan (e.g., "money
purchase").
FUNDING:
Normal Plan administrative expenses (paid currently from the General Fund) total approximately $30,000
annually. In addition to normal Plan costs, expenses have been incurred in the past for various special studies.
For example, special studies added approximately $30,000 in costs in FY 2008.
RECOMMENDATION:
The City Manager recommends that the City Commission approve first reading of Ordinance 2009-01 to
incorporate the recommendation of the Board of Trustees regarding payment of pension related expenses and to
update Code language related to the plan type to properly reflect the current status.
ATTACHMENTS:
• Ordinance 2009-O1.
COMMISSION ACTION:
ORDINANCE N0.2009-01
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA, AMENDING
SECTION 14-51, OF THE CITY CODE, RELATED TO THE
CITY PENSION PLAN; PROVIDING FOR THE REPEAL
OF PRIOR INCONSISTENT ORDINANCES AND
RESOLUTIONS; INCORPORATION INTO THE CODE;
SEVERABILITY; AND AN EFFECTIVE DATE.
WHEREAS, the City is granted the authority, under § 2(b), Art. VIII of the State
Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
law; and
WHEREAS, the City Board of Trustees has recommended to the City Commission that
the costs associated with the pension plan be paid from the pension fund; and
WHEREAS, this Ordinance also repeals outdated language contained in section 14-
51(a), of the City Code; and
WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds
this ordinance to be in the best interests of the public health, safety, and welfare of the citizens of
Winter Springs.
NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER
SPRINGS HEREBY ORDAINS, AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by
reference as legislative findings of the City Commission of Winter Springs.
Section 2. Code Amendment. The City of Winter Springs Code, section 14-51 is
hereby amended as follows (underlined type indicates additions and ~ type indicates
deletions):
Sec. 14-51. Adopted.
(a) The city does hereby elect to provide for its employees a pension plan and
trust, such plan and trust to be known as the "Pension Plan for the Employees of the Ciry of
Winter Springs, Florida" (hereafter referred to as "the plan"). The plan shall be administered by a
board of trustees as appointed in section 14-52.
City of Winter Springs
Ordinance No. 2009-01
Page 1 of 3
(b) The city does hereby approve and adopt the plan, a copy of which is on file in the city clerk's
office and authorizes the mayor and city manager to execute the plan on behalf of the city. The
plan maybe amended from time to time by resolution of the city commission.
(c) The cost of the plan shall be paid entirely by the city from the gerter~l ep nsion fund.
(d) The city shall be bound by the terms and conditions of the plan.
***
Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior
inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior
ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict.
Section 4. Incorporation Into Code. This Ordinance shall be incorporated into the
Winter Springs City Code and any section or paragraph, number or letter, and any heading may
be changed or modified as necessary to effectuate the foregoing. Grammatical, typographical,
and like errors may be corrected and additions, alterations, and omissions, not affecting the
construction or meaning of this Ordinance and the City Code may be freely made.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or
provision of this ordinance is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, whether for substantive, procedural, or any other reason, such portion
shall be deemed a separate, distinct and independent provision, and such holding shall not affect
the validity of the remaining portions of this ordinance.
Section 6. Effective Date. This Ordinance shall become effective immediately
upon adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to
the City Charter.
ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular
meeting assembled on the day of , 2009.
[ADOPTION PAGE FOLLOWS]
City of Winter Springs
Ordinance No. 2009-01
Page 2 of 3
JOHN F. BUSH, Mayor
ATTEST:
ANDREA LORENZO-LUACES
City Clerk
APPROVED AS TO LEGAL FORM AND SUFFICIENCY
FOR THE CITY OF WINTER SPRINGS ONLY.
ANTHONY A. GARGANESE
City Attorney
First Reading:_
Second Reading:
Effective Date:
City of Winter Springs
Ordinance No. 2009-01
Page 3 of 3