Loading...
HomeMy WebLinkAbout_2006 11 16 City Commission Workshop Minutes EXEMPTION CITY OF WINTER SPRINGS, FLORIDA OFFICIAL MINUTES CITY COMMISSION WORKSHOP NOVEMBER 16,2006 CALL TO ORDER The Workshop of Thursday, November 16, 2006 of the City Commission was called to Order by Mayor John F. Bush at 7:35 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Mayor John F. Bush, present Deputy Mayor Michael S. Blake, present Commissioner Robert S. Miller, arrived at 7:36 p.m. Commissioner Donald A. Gilmore, present Commissioner Sally McGinnis, present Commissioner Joanne M. Krebs, present City Manager Ronald W. McLemore, present City Attorney Anthony A. Garganese, present A moment of silence was held. The Pledge of Allegiance was then recited. Commissioner Robert S. Miller arrived at 7:36 p.m. REGULAR AGENDA REGULAR 300. Office Of The City Manager Requesting The City Commission Review And Consider Information Regarding Potential Changes To The City's Pension Plan. Ms. Valarie Mendelson, Detective, Police Department: commented on retirement options; and made some suggestions as to what could be incorporated into the City's Pension Plans and related Meetings. Mr. Steve Molnar, : representing the City of Winter Springs Professional Firefighters, Mr. Molnar thanked the City Commission for their assistance thus far; and commented on 175/185 Plans. City Manager Ronald W. McLemore introduced this Agenda Item for discussion. CITY OF WINTER SPRINGS, FLORIDA OFFICIAL MINUTES CITY COMMISSION WORKSHOP - NOVEMBER 16, 2006 PAGE20F5 Discussion. Mr. Jim Linn, Esquire, Lewis, Longman & Walker, P.A., 125 South Gadsden Street, Suite 300, Tallahassee, Florida: as the City's Pension Attorney, Mr. Linn addressed the City Commission on whether the City should establish 175/185 Pension Plans and stated, "This is not in your materials and as I have looked at this, and I work with a number of cities that have 175 and 185 Plans and have gone away from those as well - I think that there are four (4) key questions that need to be asked as you look at all of the information that you have. The first one is, 'How much would the City have to pay in order to get the premium tax revenues?' Second, 'How much authority will the City Commission have to give up?' Third, 'How much premium tax revenue can the City expect to get?' and four (4), 'Once the City gets the premiums taxes, how can they be used?' And all of those questions I think are critical to your - ultimate decision on how to proceed here." Discussion. Mr. Linn commented on disabilities and stated, "Right now, you provide Disability coverage for your employees through the Insurance Policy, not in the Pension Plan; and very clearly under 175/185, you'would have to have a Disability Pension benefit which is very specifically set forth in the law and the Pension Board which you would set up to administer this new Plan or Plans; would have the final say in determining who is disabled and also whether they were disabled on the job or not on the job." Further discussion. Tape IISide B With further discussion, Mr. Linn noted that there were some problems with some of the Plans around the state. Commissioner Joanne M. Krebs asked, "To your knowledge are there cities that aren't having any problems; that these Plans run smoothly and are very happy with them?" Commissioner Krebs added, "Any information you could provide would be appreciated." Mr. Linn remarked, "Okay." Discussion followed on premium tax money. Mr. Linn explained, "You can't use the premium tax money for anything other than extra benefits for Police and Fire. You can't use it at all for General Employees." Continuing, Mr. Linn noted, "The City is going to pay the full cost of meeting the 175/185 minimums and cannot use premium taxes for this purpose; and this conflict between the statutory definition of extra benefits and the Division of Retirement interpretation means that you are going to have to look at both methods in assessing the economic costs of adopting a 175/185 Plan." CITY OF WINTER SPRINGS, FLORIDA OFFICIAL MINUTES CITY COMMISSION WORKSHOP - NOVEMBER 16,2006 PAGE 3 OF 5 With further discussion, Commissioner Krebs said to Mr. Linn, "Are you the City's Pension Attorney, or are you the Plan's Attorney? Do you represent the Plan? And, do you have fiduciary responsibility to the beneficiaries and the participants?" Mr. Linn remarked, "I believe I've been engaged by the City to act as Pension Counsel to the City - and including the Pension Board. And so yes, the answer to that question is, I do have a fiduciary responsibility to the Pension Plan." Discussion ensued. Mr. Kevin Smith, Director, General Services Department addressed the City Commission on what the proposed costs to implement such Plans would be. Discussion. Tape 2/Side A With continued discussion, Mr. Linn commented on some decisions and interpretations made by some Pension Boards. Manager McLemore next spoke on the merits of saving and incremental controls. Deputy Mayor Michael S. Blake said, "The question of compensation should not be looked at in a vacuum. The question of compensation should be looked at across the board, meaning all employees and should be looked down at the job description level." Continuing, Deputy Mayor Blake commented on minimum benefits, and additional costs and said to Mr. Smith, "In order to see the real cost differential of doing this, that we need to look at it from the three percent (3%) level, two (2) years out which will give us a different delta today, to at least look at. Because frankly, even if we decided today, okay we want to do something here, the process which is government has been around a while, takes awhile - it may take us until October 15t of next year or more likely, January 15t [20]'08 before we implement - so I am really curious to know what those numbers would look like, because I think it would tell from that aspect alone, a somewhat different story." Deputy Mayor Blake added, "If you could get us them, I would be real interested in seeing them." Commissioner Sally McGinnis said, "I would too." Commissioner Krebs remarked, "I would be interested in those numbers also." Commissioner Krebs then said to Manager McLemore, "Is there anything in here about fiduciary responsibilities?" Manager McLemore said "We could give that some special treatment if you would like that." CITY OF WINTER SPRINGS, FLORIDA OFFICIAL MINUTES CITY COMMISSION WORKSHOP - NOVEMBER 16, 2006 PAGE40F5 Furthermore, Commissioner Krebs said to Mr. Linn, "Me as a Commissioner, working for the City, answering to the citizens and then me as a Commissioner acting as fiduciary, strictly for the Plan which is only those who benefit and those that benefit employees and their beneficiaries - and making the switch." Mr. Linn answered by saying, "It's changing the hat. And so, when you are acting as City Commissioner you're setting the Policy; and when you are acting as Pension Board Member, you're carrying out the Policy that you set as Commissioner." Next, Commissioner Krebs said, "I just would have liked to have heard from some City that it was working well, so that we could compare that comment and maybe look closer at why." Discussion. Mayor Bush stated, "Commissioners, put this on the Agenda - this coming Monday?" With further comments, Commissioner McGinnis commented that, "I would be interested in - coming back with - some ideas on - you might have on amending, adding whatever. 1 am sure you have thought about it. We all have some more figures coming back to us from the Actuary." Further discussion ensued. Mr. Mark Sardo, 997 Sequoia Court, Winter Springs, Florida: as a Member of the Board of Trustees, Mr. Sardo spoke of the presentation, other City's plans that must be working, balance, and facts. Mr. Don Farnum, Maintenance Mechanic, Utility Department: agreed with some of Manager McLemore's comments. Mr. Bryon Glitz, 1001 Troon Trace, Winter Springs, Florida: as a Member of the Board of Trustees, Mr. Giltz commented on a document he had just distributed to the City Commission related to Plan documents and administration of the Pension Plan. Tape 2/Side B Mr. Giltz continued with his comments. Commissioner McGinnis stated, "Monday, they could come up with a Plan - if we do have a City come in, 1 would like that and 1 agree - 1 would like to hear from other cities, but 1 would like to hear from a - City involved in a range of experience, a City that started this Plan a long time ago and somebody who just started." CITY OF WINTER SPRINGS, FLORIDA OFFICIAL MINUTES CITY COMMISSION WORKSHOP - NOVEMBER 16,2006 PAGE 5 OF 5 Mayor Bush mentioned, "I don't think you could get that by Monday night." Commissioner McGinnis noted, "I know - but those are the kind of things." Mayor Bush mentioned, "So, it will be on the Agenda to discuss." Commissioner McGinnis noted, "Yes." Mayor Bush added, "Okay." Deputy Mayor Blake remarked, "Correct." Mr. Corey Green, : commented on collective bargaining; retirement being an important issue; firefighters; benefits; and the Florida Retirement System. Ms. Valarie Mendelson, Detective, Police Department: spoke on retirement; employees being involved; and stated, "Retirement - can we make ours better, if we choose to put in more?" Mayor Bush said, "That is a good question - maybe have an answer to, at some point?" Ms. Mendelson then spoke of a thirty (30) year-and-out option. Manager McLemore said to the City Commission, "My understanding is, you want this on your Agenda - Monday night?" Manager McLemore then stated, "It is going to be very difficult to get people from other cities to come out in a public forum and explain to you, their problems with their Plan." Commissioner McGinnis stated, "We can try?" Furthermore, Manager McLemore said, "I will place it on your Agenda then, for next Meeting, and then you will decide what you want to do." ADJOURNMENT Mayor Bush adjourned the Workshop at 10:12 p.m. RESPECTFULLY SUBMITTED: A LORENZO-LUACES, CMC CLERK - L,//1, I -::~-+/~ . - NOTE: These Minutes were approved at the February 12,2007 Regular City Commission Meeting.