Fort Walton Beach Council agenda — 04-08-08 regular agenda — reading text

to have more control over those areas.  67 Council Workshop 3 -25 -08 APOk PENSION PLANS cont. Mr. Dehner addressed the concern regarding a reduction in member contributions in the Police Officers Plan and the reason. He noted the police officers have a 75% cap on the amount of benefit they can receive; the firefighters ' had that cap but it was eliminated several years ago. He said the vast majority of the Plans in the State for General Employees, Police Officers, and Firefighters have 100% of average final compensation cap, which is provided for in Florida Statutes Chapter 112. He explained when the cap was put into the Plan the member contribution was eliminated then Chapter 185 was amended in 1999 to provide that there had to be at least a '/ 2 of 1 % member contribution to the Plan; so the member contribution rate decreases to '/ 2 of 1 % once the accrued benefit reaches the cap. He noted it is important to know that they cannot accrue for additional years of credited service;the benefit formula is determined by years of credited service times the average final compensation times the benefit rate and once they hit that cap, since it' s based on average final compensation, the only additional benefit they accrue would be derived from salary increases. Mr. Miller expressed his further concern that it seems like the City was encouraging people to stay on the job when they were eligible to retire and then people wanted the City to issue an early out and pay them to retire. Mr. Dehner expressed the Police Officers' would like to see the cap removed and continue to make the higher contribution and be able to accrue a greater benefit based on additional years of service. He expressed, on behalf of the Police Pension Board, they would appreciate it if Council would revisit that issue. Mr. Dehner addressed the COLA in the Police Pension Plan and explained there is a cost of living adjustment tied into the index with a maximum adjustment of 3 %. He said a proposal will come forward for Council' s consideration to just provide a 3% COLA and not tie it into an index. He explained one reason is because the Florida Retirement System enjoys a 3 % COLA; and second, the current structure with tying it into an index with a maximum of 3 %, that the actuary has to fund it as though it is going to be the maximum for each year for conservatism. Mr. Heinrichs added when they develop the funding requirements for the fund they have to make an assumption what the increase will be each year and they assume a 3% cost of living adjustment. He said instead of asking them to make the adjustments each year based on CPI, the Board is interested in making it a flat 3% because that is what they are funding. Mr. Linn mentioned both proposals, eliminating the maximum cap on benefits and a flat 3% COLA, are benefit increases which would result in increased costs to the Plan. He said with Police and Fire premium tax funding source and because of the way the State interprets Chapters 175 and 185 it is applied in a flat dollar amount, and they get premium tax revenues that the City is able to use in funding the Plan. He said if they were to increase benefits and even though they could use the additional premium tax monies not being used to pay for them, over time an increasing portion of the cost gets shifted to the City. Discussion ensued regarding a " fully funded plan," with Mr. Heinrichs explaining if the City were to shut down entirely or no longer exist, funds would be available for everyone who is retired or for those participating in the police/fire plans at that time, until the end of their lives. C:0:? Council Workshop 3 -25 -08 PENSION PLANS cont. The Mayor asked for public input. Officer Eric Boyd, Fort Walton Beach Police Department, expressed his concern that it appears that something is being taken away from him. He said the police and firefighters have an inherent hazard with their duty, and it appeared to him Council is under the impression they get a little more than a regular employee. He said the police officers and firefighters do not think they are better than any employee and do not under value any employee that works for the City, but he thought what they do is pretty important and when he signed on, his pension is what he fully expects to have when he retires. He said the current administration has done the Police Department good and Ms. Shanahan enjoys their unwavering support and loyalty because of that; but previous to this administration there was always a little chirp in the background, union, and that died. He said he looks at the budget and the expenditures and they have been done fair, so the chirp has not been around for a number of years. He said at this point in time, if they want to raise the City employees up to what they have that they are not getting, they are welcome to do so; but if they are talking about taking away from them, that Union talk probably becomes a roar and right now he did not think it is necessary. He understood Council has to look at the whole picture and they have a hard job to do, but he is not too kosher about taking away from him what he signed up for. He understood the budget constraints but asked that they do not mess with the retirement. There was no further public input. It was noted that this was an educational briefing for Council to understand the pension funds better and was not intended to take anything away from anybody. CaptainRose Berry, member of the Police Pension Board, advised Council they are welcome to attend a pension meeting at any time and to contact her if they have questions or need clarification. ADJOURNMENT As there was no further business the meeting adjourned at 6: 30 pm. 14 - 041 o la" MAYOR: ATTEST: CITY CLERK Ive  MINUTES OF THE REGULAR COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA MARCH 25, 2008 INTRODUCTION A regular meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, March 25, 2008, at 7: 00 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Bill Garvie, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Finance Director position vacant); Toni Craig, City Attorney; Department Directors and Media. CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, then state his or her name and address for the record. INVOCATION Chaplain Buddy Duncan of Fort Walton Beach Medical Center gave the Invocation. PLEDGE The Mayor led in the Pledge of Allegiance. PROCLAMATION —AUTISM AWARENESS MONTH The Mayor presented a proclamation to Mrs. Marline Van Dyke, Principal of Silver Sands School, recognizing April as Autism Awareness Month. Steven Van Etten, a student at Silver Sands, and his mother, Laraine Van Etten, a City employee, were also present. STUDENT ACE AWARDS The Mayor presented the Student ACE Awards to Lynnlee Massarelli of Choctawhatchee High School and Emma Killingsworth of Fort Walton Beach High School. RETIREMENT —SALLY ASHWOOD The Mayor presented a proclamation to Sally Ashwood, the City's Data Processing Coordinator, on the event of her retirement after almost 29 years of service to the City. APPROVAL OF AGENDA The Mayor advised he is adding an item Consideration of Council appointment to serve on the Continuum of Care. Mr. Minich moved to approve the agenda as the order of the day, as amended, to include Consideration of Council appointment to the Continuum of Care. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. CONSENT AGENDA Mr. Miller requested Item 3, Custodial Services at the Police Department, be discussed separately.  Regular Council 3/ 25/ 08 CONSENT AGENDA Mr. Minich moved to approve the following Consent Agenda items. Mr. Holmes seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. APPROVAL OF MINUTES Approval of the minutes of the Special Council Meeting of March 11, 2008, and the Regular Meeting of March 11, 2008. BID 08 -111. AUDITORIM ROOF REPLACEMENT To award Bid # 08 -111, Auditorium Roof Replacement, to the lowest responsive, responsible, bidder, Bel -Mac Roofing Inc, Santa Rosa Beach, FL, in the amount of $41, 870.00. The following Consent Agenda was voted on separately. CUSTODIAL SERVICES AT POLICE DEPARTMENT Consideration of a Council request for the creation of two ( 2) part-time custodial worker authorizations in the Police Department, not to exceed 45 hours per week ( one at 35 hours per week and another at 10 hours per week); to replace the current contract custodial services. Mr. Miller questioned the difference in the Staff Report between the rate of $ 9.00 referenced by the Police Chief and the rate $ 9. 70 referenced by the Human Resources Director. Mark Wiltsie, Human Resource Director, advised the $ 9.70 rate included hourly taxes. Clarification was given by the City Manager that part-time City employees do not receive benefits, that the only thing being requested is the creation of the authorizations. Mr. Miller moved to create two part-time custodial worker authorizations in the Police Department and in doing so generate a savings for this year and ensuing fiscal years. Mr. Minich seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. SPECIAL PRESENTATION —ACCEPTANCE OF THE CAFR Consideration of accepting the Annual Audit and Comprehensive Financial Report for the City of Fort Walton Beach, Florida, for the fiscal year ended September 30, 2007. Angela Balent of O' Sullivan Creel LLP, presented the City's audit for 2007 and discussed topics including major capital expenditures, governmental funds, enterprise funds, and pension funds. Ms. Balent concluded by stating the City is financially strong and thanked everyone at the City for their patience during the audit process. Mr. Hartwell discussed an item in the report that referenced the City purchased the fairgrounds then sold a portion of it; he clarified that the fairgrounds encompassed only about 1/ 3 of the 42 acres purchased from the Forest Service. Ms. Balent stated that was correct; that the portion that was sold