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HomeMy WebLinkAbout2011 08 09 Consent 200 Requesting Approval of the Board Of Trustees Regular Meeting Minutes of May 10, 2011CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING MAY 10, 2011 CALL TO ORDER The Regular Meeting of Tuesday, May 10, 2011, of the Board of Trustees was called to Order by Chairperson Maria Fair at 5:35 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 Ben McMahan, absent Board Member Vernon Rozelle, Jr., arrived at 5:38 p.m. Board Member Max Swaim, present Board Member Barbara Watkins, present A moment of silence was followed by the Pledge of Allegiance. Chairperson Fair asked if there were any Agenda changes and Mr. Shawn Boyle, Director, Finance And Administrative Services Department stated, "We have the Investment Managers from DGHM (Dalton, Greiner, Hartman, Maher & Co., LLC)." Chairperson Fair commented, "Can we place them at the beginning of the meeting and pick up the Regular Agenda from there ?" Mr. Boyle replied, "Yes." Board Member Vernon Rozelle, Jr. arrived at 5:38 p.m. Mr. Joshua A. Waltuch, Vice President Portfolio Manager, Dalton, Greiner, Hartman, Maher & Co., LLC, 565 Fifth Avenue, Suite 2101, Nell York, Nell York: addressed the Board Members and distributed the "A11Cap Value" booklet dated May 10, 2011. Continuing with a presentation on Portfolio Performance, Mr. Waltuch referred to the performance on page 3 and stated, "Your Portfolio Year -to -Date is up ten point four percent (10.4 %)." Discussion ensued on Performance Statistics. Mr. Michael ,S. Dunn, Vice President Director of ,Sales and Marketing, Dalton, Greiner, Hartman, Maher & Co., LLC, 565 Fifth Avenue, Suite 2101, Neir York, Neir York: briefly addressed the Board on International projections. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 2 OF 1 Mr. Dave West, Bogdahn Consulting LLC, 4901 Tlineland Road, Suite 600, Orlando, Florida: presented an overview of the "Winter Springs General Employees General Plan and Trust" for 1 st Quarter 2011 and remarked, "All seven (7) of the Manager strategies employed by this program outperformed their relative benchmarks for this period." Mr. West continued his presentation and stated, "We had no issues from a rebalancing standpoint and again the custodian direction has taken care of that. We see no reason to make any changes with that — we had no Manager issues on the table and as directed and discussed, we continue to monitor Lateef (Investment Management Group) — they had a good quarter, but we will continue to keep you apprised should there be any changes of opinion." Discussion. Next, Mr. West pointed out that the annual review of the Investment Policy is upcoming and suggested that this be discussed at the next meeting. Mr. West stated, "Consider the possibilities of any potential changes that we might want to consider making." Chairperson Fair remarked, "Maybe report back to us on that and Bogdahn's Investment Policy reviewing those guidelines and give us a Report at our next meeting." Mr. West responded, "I would be happy to do that." REGULAR AGENDA - PART I REGULAR 600. Office Of The City Clerk Requesting An Election Of Chairperson Be Held For 2011. "I NOMINATE MARIA FAIR." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. DEPUTY CITY CLERK JOAN BROWN ASKED, "DO YOU ACCEPT THE CHAIR POSITION?" CHAIRPERSON FAIR STATED, "YES." VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING — MAY 10, 2011 PAGE 3 OF 1 REGULAR 601. Office Of The City Clerk Requesting An Election Of Vice Chairperson Be Held For 2011. "I NOMINATE BEN McMAHAN." MOTION BY BOARD MEMBER SWAIM. SECONDED BY CHAIRPERSON FAIR. DISCUSSION. VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. INFORMATIONAL AGENDA INFORMATIONAL 100. Finance And Administrative Services Department Providing A Summary Of The Pension - Related Expenditures For The Second Quarter Of Fiscal Year 2011. Mr. Boyle presented this Agenda Item and stated, "Some of the Fund Managers are a little slow in invoicing us and we are looking to try to improve that process." With further discussion on invoicing, Mr. Boyle stated, "Larry Wilson (Gabriel, Roeder, Smith & Company) has contractually agreed to bill us quarterly and so he is working on the last invoice — and we should have it within the next thirty (30) days." Next, discussion ensued on fees invoiced from Lewis Longman & Walker, P.A. Tape 1 /Side B CONSENT AGENDA CONSENT 200. Office Of The City Clerk Requesting Approval Of The February 8, 2011 Board Of Trustees Regular Meeting Minutes. No discussion. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 4 OF 1 CONSENT 201. Office Of The City Clerk Requesting Approval Of The February 22, 2011 Board Of Trustees Special Meeting Minutes. This Agenda Item was not discussed. CONSENT 202. Office Of The City Clerk Requesting Approval Of The March 31, 2011 Board Of Trustees Special Meeting Minutes. No discussion was heard on this Agenda Item. "I MAKE A MOTION WE APPROVE ALL THREE - FEBRUARY 8 TH , ( 2011), FEBRUARY 22 ND , ( 2011) AND MARCH 31 sT , ( 2011)." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 300. Not Used. 400. REPORTS No Reports were given. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 5 OF 1 PUBLIC INPUT Mr. Brian Fields, 185 Nandina Terrance, Winter ,Springs, Florida: as an Employee of the City of Winter Springs, Mr. Fields spoke of the private sector versus public sector; the current Pension Plan and suggested the Board of Trustees review the Employees overall compensation package, the current Defined Benefit Plan; and consider an Early Retirement option. Mr. Fields then asked the Board to consider Proposal 1 in the Phase III Report. Ms. Kelly Balagia, 508 Mark Run, Winter Springs, Florida: as a City of Winter Springs Employee, Ms. Balagia thanked the Board for their work; and commented on the General Employee's Pension Plan and suggested the Board consider Plan revision options for a fair solution for all. Next, Ms. Balagia recommended that the Board of Trustees consider options such as cost shifting to the Employee, increasing the retirement age, and reducing the benefit multiplier. Mr. Marc Banmgart, Seminole County Fire Department: displayed a PowerPoint presentation and spoke on behalf of other Fire Department participants currently in the City's Pension Plan about the proposed changes. Ms. Eloise Sahlstroiv, 531 Crimson Lane, Winter Springs, Florida: as a City of Winter Springs Employee, Ms. Sahlstrom commented about revision proposals to the current Pension Plan; suggested the Board of Trustees give consideration to a fair and balanced approach and the long term needs of General Employees. Detective Tlalarie Mendelson, Winter Springs Police Department: addressed the Board Members on the current Pension Plan; suggested sick and vacation time should not be included in retirement calculations, but that base pay and overtime should be included. Mr. IeffPostle, 2071 Lorene Lane, Deltona, Florida: as a current City of Winter Springs Employee, Mr. Postle spoke of economic shortfalls and suggested a postponement of the decision of Pension Plan revisions. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 6 OF 1 REGULAR AGENDA - PART II REGULAR 602. Finance And Administrative Services Department Requesting Review And Discussion Of The Current Winter Springs Pension Plan With Possible Recommendations For Modification, Changes And /Or Clarification To That Plan. Mr. Boyle introduced this Agenda Item and commented on Senate Bill 2100. Continuing, Mr. Boyle stated, "One (1) detail that - will affect us, mandated from the State down - Winter Springs Pension Plan did in the past include sick and vacation payouts in the final calculation for compensation." Mr. Boyle noted, "That has been changed from the State and that will no longer be in anyone's calculation. The only other significant impact is the cap of 300 hours of overtime pay - whether it is high risk or regular Employee's compensation calculation for the final five (5) years which is what the State uses." Next, Mr. Boyle mentioned the May 2, 2011 Joint Meeting of the City Commission and the Board of Trustees and remarked, "It was recommended at that point — to offer a tweaked Defined Benefit Plan for hi�uh risk — that final decision has not been made — but it has been Tabled until the May 18 (2011) meeting between BOT (Board of Trustees) and the Commission. I feel that we came to Consensus on new Employees. The new Employees on the General Employee side would be offered a Defined Contribution Plan and the details will be added as we move forward. On the new Employees on the high risk Police and Fire, would also be on a Defined Benefit Plan, that would be tweaked." Continuing, Mr. Boyle stated, "What we would like to see come out of this meeting, is a Consensus among the Board of Trustees that we could move forward to the Commission." Chairperson Fair remarked, "What I would like to do is to make it a little easier — I would first like to talk - among the Board and come to a Consensus on Police and Fire and break it down into two (2) segments." Chairperson Fair asked, "Do you have a recommendation for what you see being the most viable plan going forward for Police and Fire ?" City Manager Kevin L. Smith stated, "Defined Benefit Pension Plan continue for high risk, current Employees; and all future new hired Employees unless something changes with our Agreement with the Fire Department, we would not have any new Fire hires. That Pension Plan would be adjusted for the overtime issue that we discussed earlier. The highest five (5) years rather than the highest three (3) years average compensation, Cliff Vesting, and an additional increase in the Employee contribution from the three percent (3 %) that it currently is." Discussion ensued on the State mandated decision with regards to overtime. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING — MAY 10, 2011 PAGE 7 OF 15 Chairperson Fair said, "We are going to be subject to whatever the State Legislature tells us we are going to be subject to, so hopefully we will be able to fine tune that next week." Continuing, Chairperson Fair remarked, "Let me just reiterate that the function of this Board is not to make decisions about your Pension Plan per se of how we are going to change it; the function of this Board is to simply make recommendations to the Commission based on our knowledge and expertise and the amount of — professional life experiences that we all have in the financial area." Discussion. Tape 2 Side A Chairperson Fair stated, "Do we want a recommendation to maintain the Police and Fire current DB (Defined Benefit) Plan for both current and new Employees ?" Discussion. "I WOULD LIKE TO MAKE A MOTION TO CONTINUE THE DEFINED BENEFIT PROGRAM FOR SPECIAL RISK EMPLOYEES." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER ROZELLE. DISCUSSION. VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. Next, Chairperson Fair stated, "Let's start with the Vesting schedule." Discussion ensued on Cliff Vesting. "I WOULD LIKE TO PROPOSE THAT WE CONSIDER THE SEVEN (7) YEAR CLIFF VESTING." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE MOTION CARRIED. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 8 OF 15 For clarification, Manager Smith remarked, "I believe the Board is talking about tweaks to the high risk plan. If it helps the Board at all — the recommendation that I will be making will be the same that I would recommend for the General Employees too." Next, discussion ensued on an Increase for Employee Contributions. Manager Smith stated, "The number that I had been working with was a two percent (2 %) increase from three percent (3 %) to five percent (5 %). That would mean that there is two percent (2 %) less the City would have to pay and two percent (2 %) more for the Employees. Mr. Boyle mentioned for the Record, "The average for General Employee contributions are the median — five percent (5 %) and for high risk the median is six to seven percent (6- 7%)." Chairperson Fair remarked, "And that is the median based on plans that Larry's (Wilson) Study comparable to our Plan ?" Mr. Boyle stated, "Correct." Chairperson Fair then added, "So, asking them to go from three to five percent (3 -5 %) would still be within the median." Mr. Boyle added, "Well within." "I FEEL COMFORTABLE MAKING A MOTION THAT WE DO ASK FOR AN INCREASE IN EMPLOYEE CONTRIBUTIONS FROM THE THREE PERCENT (3 %) TO FIVE PERCENT (5 %)." MOTION BY CHAIRPERSON FAIR. SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. Manager Smith stated, "My recommendation is the highest consecutive five (5) years. There are two (2) purposes behind that recommendation — one (1) it is a cost savings and number two (2), it is more in line with the Phase I study and the benchmarks that Larry (Wilson) provided to us." Discussion ensued on the Cap of overtime pay and the State Legislature. Continuing, Manager Smith added, "To further clarify the recommendation, the way that Larry (Wilson) has it structured and as part of my recommendation is that — this would not affect anybody currently employed." "I WOULD LIKE TO MAKE A MOTION THAT WE ACCEPT THE FIVE (5) YEAR PLAN." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 9 OF 15 CHAIRPERSON FAIR CLARIFIED THE MOTION AND STATED, "MOVING FROM THREE (3) YEARS TO FIVE (5) YEARS ON THE BENEFIT CALCULATION FOR THE AVERAGE PAY." VOTE: BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: NAY BOARD MEMBER WATKINS: AYE MOTION CARRIED. With further discussion on retirement age for special risk class, Manager Smith remarked, "We considered many options — currently it is age fifty -five (55) with ten (10) years of service. A minor tweak that we had discussed was a change to fifty -five (55) with fifteen (15) years of service." Manager Smith added, "I think we discussed that that would be applied to new Employees only." Chief of Police Kevin Brunelle, Winter Springs Police Department: spoke about the Pension Plan and noted he concurred with the proposed fifteen (15) years of service. Manager Smith remarked, "Currently we are at age fifty -five (55) and ten (10) years of service. My recommendation is for age fifty -five (55) and fifteen (15) years of service, applicable to new Public Safety Employees only." "I WOULD LIKE TO MAKE A MOTION THAT WE ACCEPT THE RECOMMENDATION OF FIFTY -FIVE (55) AND FIFTEEN (15)." MOTION BY BOARD MEMBER SWAIM. MOTION DIED FOR LACK OF A SECOND. "I WOULD LIKE TO MAKE A MOTION THAT WE MAKE NO CHANGES TO THE UNREDUCED RETIREMENT BENEFIT FOR SPECIAL RISK CLASS AND TO KEEP IT AT FIFTY -FIVE (55) AND TEN (10)." MOTION BY CHAIRPERSON FAIR. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: NAY CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE MOTION CARRIED. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING — MAY 10, 2011 PAGE 10 OF 15 Chairperson Fair stated, "Let's move on to General Service Employees. I think the very first issue that we have is to — keep the DB (Defined Benefit) Plan or make a change." Manager Smith then added, "What will we do for current Employees and what will we do for future Employees. My recommendation for future General Service Employees is that we go to a DC (Defined Compensation) Plan — details to be decided later." With further discussion, Manager Smith said, "Under my recommendation of the freeze, those Employees that are currently employed would maintain and stay in the Plan as long as they stay here, they will reach seven (7) years. So, they will become Vested when they reach seven (7) years." Manager Smith then added, "My further recommendation would be to give the Employees the option and current Employees could chose to stay on the DB (Defined Benefit) plan or chose to go to the Defined Compensation Plan similar to what FRS (Florida Retirement System) does." Manager Smith remarked, "I would also recommend a one (1) time election." Tape 2 /Side B MOTION TO "ACCEPT THE MANAGER'S RECOMMENDATION THAT WE ALLOW — WE RECOMMEND TO THE COMMISSION A FREEZE FOR THE EXISTING GENERAL EMPLOYEES ON THE DEFINED BENEFIT PLAN THAT WE CURRENTLY HAVE, AND OFFER A NEW DEFINED CONTRIBUTION PLAN TO ALL NEW EMPLOYEES, GENERAL EMPLOYEES AT A DATE TO BE DETERMINED BY THE COMMISSION." MOTION BY BOARD MEMBER ROZELLE. SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. CHAIRPERSON FAIR CLARIFIED, "A PLAN FREEZE MEANS THAT CURRENT EMPLOYEES CONTINUE TO ACCRUE BENEFITS, BUT NO NEW EMPLOYEES CAN COME INTO THE PLAN." BOARD MEMBER ROZELLE STATED, "AN EXISTING EMPLOYEE, BUT YOU ARE NOT VESTED YET, YOU ARE IN THE DB (DEFINED BENEFIT) PLAN AT THE POINT YOU BECOME VESTED, YOU CAN CHOSE TO STAY IN THE DB (DEFINED BENEFIT) PLAN BASED UPON MY MOTION IS WORDED?" MANAGER SMITH STATED, "YES." VOTE: CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 11 OF 15 Manager Smith then stated, "The Plan that the current Employees would stay on, the General Employees, I would like to recommend several adjustments to that Plan and Chair, would you like to go through one (1) by one (1) ?" Chairperson Fair answered, "Yes." Manager Smith then added, "First one would be Cliff Vesting. Same recommendation as Public Safety and I would recommend a seven (7) year Cliff Vesting for the General Employees." "I MAKE A MOTION THAT WE CHANGE TO CLIFF VESTING." MOTION BY BOARD MEMBER WATKINS. SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. BOARD MEMBER WATKINS CLARIFIED THE MOTION TO INCLUDE, "SEVEN (7) YEAR CLIFF VESTING." VOTE: CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. Manager Smith commented, "Employee contributions. Same recommendation as Public Safety to go from the current three percent (3 %) Employee contribution to a five percent (5 %) Employee contribution. Shawn (Boyle), I believe that is also consistent with Phase I of Larry's (Wilson) study for General Employees ?" Mr. Boyle replied, "Yes." "I MAKE A MOTION THAT THE FREEZE INCLUDE A FIVE PERCENT (5 %) CONTRIBUTION RATE." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER ROZELLE. DISCUSSION. CHAIRPERSON FAIR REITERATED THE MOTION AND STATED, "YOU MAKE A MOTION THAT THE PLAN FREEZE INCLUDE A CONTRIBUTION INCREASE. WELL, WHAT YOU REALLY NEEDED TO SAY, I THINK, IS THAT YOU MAKE A MOTION THAT THE PLAN ALLOWS BASICALLY FOR EMPLOYEES TO INCREASE THEIR CURRENT CONTRIBUTION RATE FROM THREE TO FIVE PERCENT (3 -5 %). BECAUSE IT REALLY DOES NOT HAVE ANYTHING TO DO WITH THE PLAN FREEZE. THE WORD PLAN FREEZE PROBABLY DOES NOT NEED TO BE INCLUDED IN THE MOTION." MANAGER SMITH REMARKED, "IF THE MAKER OF THE MOTION AGREES WITH THAT, THEN YOU CAN PROCEED CHAIR, IF YOU DON'T MIND." CHAIRPERSON FAIR ASKED BOARD MEMBER SWAIM IF HE AGREED ?" BOARD MEMBER SWAIM SAID, "YES." CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 12 OF 15 VOTE: CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. Next, Manager Smith remarked, "The overtime issue - we know that the State is mandating that upon us, but the next issue is my recommendation for — current General Employees, is to move average Final Compensation from the highest three (3) consecutive years to the highest five (5) consecutive years." "I WOULD BE HAPPY TO MAKE THE MOTION THAT WE GO FROM THE HIGHEST THREE (3) TO FIVE (5) YEARS IN THE BENEFIT CALCULATION FOR PAY." MOTION BY CHAIRPERSON FAIR. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE MOTION CARRIED. Manager Smith stated, "Next recommendation is the change from the retirement of age with fifty -five (55) with ten (10) years of service to fifty -five (55) with fifteen (15) years of service." Chairperson Fair reminded the Board Members that this was for the "Unreduced" retirement age. "I WOULD LIKE TO MAKE A MOTION FOR GENERAL EMPLOYEES THAT THE UNREDUCED RETIREMENT BE FIFTY -FIVE (55) YEARS OF AGE AND FIFTEEN (15) YEARS OF SERVICE." MOTION BY BOARD MEMBER SWAIM. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE MOTION CARRIED. Next, Manager Smith stated, "The final recommendation for the General Employees would be relative to the Multiplier. My recommendation is the current Multiplier is three [percent] (3 %) and the Board did not make any changes, nor did I make a recommendation for any changes on the Public Safety side. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 13 OF 15 On the General Employee side, my recommendation would be to lower that Multiplier for future years of service from three (3) to two point five [percent] (2.5 %)." Manager Smith added, "Two point five (2.5) [percent] without a COLA (Cost -of- Living Adjustment)." "MY MOTION IS THE CITY MANAGER'S RECOMMENDATION, TWO AND A HALF PERCENT (2.5 %) MULTIPLIER FOR ALL GENERAL SERVICE EMPLOYEES, NO COLA (COST -OF -LIVING ADJUSTMENT)." MOTION BY BOARD MEMBER ROZELLE. BOARD MEMBER ROZELLE ADDED, "I WILL JUST RESTATE IT AND REMOVE THE COLA (COST -OF- LIVING ADJUSTMENT) PORTION. EVERYTHING EXCEPT THE NO COLA (COST -OF- LIVING ADJUSTMENT) AND AS IT IS NOW, I GUESS IS WHAT WE WANT; LOWER THE MULTIPLIER FROM THREE (3[ %]) TO TWO POINT FIVE PERCENT (2.5 %) FOR GENERAL EMPLOYEES." SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. VOTE: BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE MOTION CARRIED. "I WILL MAKE A MOTION THAT WE TAKE — THE CITY MANAGER'S RECOMMENDATION TO ALLOW CURRENT EMPLOYEES TO CHOOSE TO STAY IN THE DEFINED BENEFIT PLAN OR MOVE TO THE DEFINED CONTRIBUTION PLAN." MOTION BY CHAIRPERSON FAIR SECONDED BY BOARD MEMBER SWAIM. DISCUSSION. VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER ROZELLE: AYE BOARD MEMBER SWAIM: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. Board Member Barbara Watkins asked, "Do we say not to include sick, vacation, and overtime ?" Chairperson Fair replied, "That is something that will be addressed probably next week by the Legislature that we are just going to have to wait." Manager Smith added, "That was my recommendation also." Mr. Cory Green, Seminole County Fire Department: addressed the Board Members and inquired if the option to move over to a Defined Contribution was for General Employees or all Employees. CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING - MAY 10, 2011 PAGE 14 OF 1 Chairperson Fair stated, "General Employees." Mr. Green inquired, "So, Fire and Police would not be given that option ?" Manager Smith remarked, "Fine with me." Chairperson Fair then added, "I can't imagine why that would be a problem, I mean if that is what they wanted to do. I always think that Employees should be given that option. Kevin (Smith), do you think it is important that we would include that in there as well ?" Manager Smith replied, "Sure. I do not have an issue with that." Mr. Green asked, "Is that option moving forward or is it effective a certain date, a one (1) time option ?" Manager Smith replied, "My recommendation is going to be a one (1) time option." Further comments. The Florida Retirement System was briefly discussed. Referencing the Defined Contribution Plan, Manager Smith stated, "At this point — I would respectfully ask for a little latitude and reservation on the details and final decisions on that Plan. We still have some issues that we need to discuss with the Pension Attorney." Continuing, Manager Smith added, "Just in concept, we would recommend the ability for Employees to choose, but there may be restrictions placed on that after we look into that further and I don't know what those restrictions would look like, so a very general concept." Chairperson Fair remarked, "I don't think it would be too cost prohibitive, but it certainly could be an issue but I highly doubt it." Manager Smith stated, "And again, that is something we will have to look at and for some reason, if it is, we may have to Amend that or look at it differently. But in concept, that would be the recommendation." Further discussion ensued on the Defined Benefit Plan. Chairperson Fair remarked, "I think by way of Consensus that we would all agree — to allow the special risk class also to choose in theory — that they would be able to choose for current Employees to go into the Defined Contribution (Plan) from the Defined Benefit (Plan), if they so choose." Continuing, Chairperson Fair added, "So in theory, we think it is a good idea to explore that and if possible..." Manager Smith commented, "...Thank you Chair." Chairperson Fair then added, "If we are going to do that for the general service, we absolutely, no question, should do it for special risk class. There should be no variance there on that particular part of it." Mr. Boyle commented for the Record and thanked the Board for their time and input regarding the proposed changes to the City's Pension Plan. Manager Smith added, "And we look forward to seeing you on Saturday night (Board and Committee Appreciation Dinner)." CITE' OF WINTER SPRINGS, FLORIDA J\IINL?TES BOARD OF TRUSTEES REGULAR MEETING — MAY 10, 2011 PAGE 15 OF 15 ADJOURNMENT Chairperson Fair adjourned the Regular Meeting at 8:28 p.m. RESPECTFULLY, SUBMITTED: JOAN L. BROWN DEPUTY CITY CLERK NOTE: These Minutes were approved at the 2011 Board of Trustees Regular Meeting.