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Home My WebLink About2006 11 16 EXEMPTION Consent 401 Approval of the August 16, 2006 Special Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING AUGUST 16,2006 CALL TO ORDER The Board of Trustees Special Meeting was called to Order by Chairman Robert Nippes on Tuesday, August 16, 2006 at 7:30 p.m. in the City Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairman Robert Nippes, present Vice Chairman A. Mark Sardo, present Board Member Guy DeMaio, present Board Member Byron Giltz, present Board Member Vernon Rozelle, Jr., arrived at 7 :31 p.m. Chairman Robert Nippes led the Pledge of Allegiance. Advisory Board Member Vernon Rozelle, Jr., arrived at 7:31 p.m. PUBLIC INPUT No one spoke. REGULAR AGENDA REGULAR 300. Office Of The City Manager Requesting The Board Of Trustees (Pension Board) To Review The Actuarial Evaluation Report Of The City Actuary, And To Consider Approval Of The Actuary's Recommendations Mr. Sandra R. Turner, CPC, QP A, President Retirement Specialists, Inc., 815 Eyrie Drive, Suite 4, Oviedo, Florida: presented this Agenda Item. Mr. Donald D. Chapman, E.A., MA.A.A., MS.P.A. Consulting Actuary, Retirement Plan Specialists, Inc. Post Office Box 622857, Oviedo, Florida: commented on past service liability and adding new employees. ,.--, r-, :::- Ir ......:J~ ~ CL..ti ,.... . d :,....-; ; 1II CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 16, 2006 PAGE20F5 Discussion. Mr. Ronald W. McLemore, City Manager spoke regarding the Retirement Plan. Advisory Board Member Byron Giltz commented on the penalty for early retirement. Ms. Valerie Mendleson, Investigator, City of Winter Springs Police Department, 102 North Moss Road, Winter Springs, Florida: commented on the early retirement benefit. Next, Advisory Board Member Guy DeMaio asked questions regarding a spouse benefit. Discussion. Regarding an increase to the Pension Plan, Manager McLemore stated, "I have made these issues known to the City Commission. It is budgeted and 1 will take it up on Wednesday (August 23,2006) night." Discussion on early retirement and its benefits continued. Manager McLemore commented further on the Pension Plan. Board Member Giltz asked, "How are the Participants communicated with? Do they get something like an annual leave that they have to sign for receiving it?" Ms. Turner stated, "I have mandatory employee meetings - where there are signing for their receipt." Board Member Giltz asked, "When is that usually done?" Ms. Turner stated, "Around March, April. " Tape l/Side B Continuing, Board Member Giltz suggested that the Board of Trustees Members need to be at maybe the Board of Trustees need to be at the "Mandatory employee meeting". Ms. Turner stated, "Your name is on there." Ms. Turner stated, "Absolutely." Discussion. Mr. Corey Green, City of Winter Springs, Fire Department, 102 North Moss Road, Winter Springs, Florida: commented on a "Worksheet table" which breaks down the reduction percentage for early retirement. Board Member Rozelle asked, "Where did you get the analysis?" Mr. Green stated, "From the General Services Director." Discussion. ~ ~ <:::> Pc: ~. ,.-... ~ :-; CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 16, 2006 PAGE30F5 "RECOMMEND THAT THE CITY INCREASE ITS CONTRIBUTIONS TO THE PENSION PLAN BY ONE (1) PERCENT TO ENSURE THAT THE PLAN MEETS ITS TEN (10), THIRTY (30) YEAR FUNDING TARGET UNDER THE 'WORSE CASE RETIREMENT' SCENARIO UTILIZING THE 'AVM' (ASSET VALUATION METHOD)." MOTION BY VICE CHAIRMAN SARDO. SECONDED BY ADVISORY BOARD MEMBER GIL TZ. DISCUSSION. WITH CONSENSUS OF THE ADVISORY BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. "ADOPT THE PLAN RECOMMENDATION NUMBER '2.', WHICH IS, 'RECOMMENDED AN ADDITIONAL REVIEW AND ANALYSIS FOF THE FISCAL CONDITION OF THE PLAN TO BE PERFORMED IN 2009 TO DETERMINE WHAT IF ANY CHANGES ARE - [INDICATED] RELATIVE TO DESIRED CHANGES IN THE CONTRIBUTION RATES AND [OR] PLAN ASSUMPTIONS'. THIS REVIEW TO BE PERFORMED - EARLY INTO THE BEGINNING OF 2009, AS SOON AS POSSIBLE." MOTION BY ADVISORY BOARD MEMBER ROZELLE. SECONDED BY ADVISORY BOARD MEMBER DeMAIO. DISCUSSION. WITH CONSENSUS OF THE ADVISORY BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. Discussion ensued regarding the "Financial statements" for the Pension Plan. Board Member Giltz asked, "When do we get a copy of them?" Manager McLemore stated, "The Earnings Reports are quarterly. Annual, there is a couple different Reports have to be made relative to the fiscal status of the plan. As far as bank statements, we get those monthly. Which are available, if you want to see those?" Ms. Turner added, "We get in our office, when we do our annual Evaluation Report - a financial statement at that time as well. But, that is going to be a wrap up of the whole year. Besides looking at it in pieces, which is what you would be given in a transaction statement, you will have an opportunity to look at it." Board Member Giltz asked, "When is this?" Ms. Turner answered, "I think we are planning on getting it ready next week." Board Member Giltz asked, "When it is all finished, can we - each get a copy of it?" Ms. Turner answered, "They usually provide a copy to everyone." Regarding the City Commission Agenda Item on "Fiduciary Responsibilities", Board Member Giltz asked, "If there are Items on the Agenda that have to do with the Pension Plan, I would like all the Board Members, or Advisory Members - notified so they are aware of it." Manager McLemore stated, "I have no problem with making sure you are sent an Agenda Item." Then, "All of our Agenda Items are on the Website", added Manager McLemore. Furthermore, Manager McLemore added, "If anything relative to Pension comes up, that I am aware of, I will make sure you have a copy of it." ~ ~ -- -- ~ ,-.. I ,... I .r: ~ CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 16,2006 PAGE 4 OF 5 Discussion ensued regarding "Educational Workshops" for the Board of Trustees Advisory Board Members. A Special Meeting with the Consultant was discussed. Manager McLemore commented, "The Commission - said to come back with them in thirty (30) days with some type of Training outline, which we will do." Manager McLemore explained, "Until this Plan update is done we are not going to know who the defined Fiduciary's are." "I do not see that Training session being done in October [2006]. I do not think we are going to be ready and prepared for that. I think that is something we will be implementing over the next year. Because our focus is going to be on our Plan. We have to update the Plan and as part of that update, the Training program is part of that Plan. That is what we will actually be concentrating on. If there is something out there, you take advantage of right away, and that is fine", stated Manager McLemore. Additionally, Manager McLemore stated, "In thirty (30) days I have to bring back to the Board, which means bring it back to you, a structure for that Training program and how we will approach it." With discussion on the recommendations from the Advisory Board to the City Commission, Manager McLemore commented on having another Special Meeting with Attorney Jim Linn regarding "Fiduciary" responsibilities. Additional discussion ensued regarding a Special Meeting with the Consultant. Mr. Joseph Bogdahn, Principal, Bogdahn Consulting, LLC, 340 West Central Avenue, Suite 300, Winter Haven, Florida: commented that his firm is prepared to meet with the Advisory Board Members at their request and will bring a Criteria of alternatives; interview some firms. Mr. Bogdahn stated, "We will coordinate with the City Manager on a date." Board Member Giltz commented on the Consultant bringing the Investment policy. Board Member Giltz stated, "I still don't have a copy of the (Consultant) Agreement back." Manager McLemore stated, "The City Attorney has it." -===a ~ -=-- ...- ~ ~ ~ r'" . d ~ ~ :11 CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 16, 2006 PAGE50F5 ADJOURNMENT "MAKE A MOTION TO ADJOURN." MOTION BY VICE CHAIRMAN SARDO. SECONDED BY ADVISORY BOARD MEMBER DeMAIO. DISCUSSION. WITH CONSENSUS OF THE ADVISORY BOARD, THE MOTION WAS APPROVED. MOTION CARRIED. Chairman Nippes adjourned the Special Meeting at 9:00 p.m. RESPECTFULLY SUBMITTED: DEBBIE FRANKLIN DEPUTY CITY CLERK NOTE: These Minutes were approved at the ,2006 Board of Trustees Special Meeting. == r_"",:. ...-.e ~ -= ~ ~ ,.... lit ~ ~ ~