Fort Walton Beach Council agenda — 06-09-09 regular — reading text

of goods is nearly unchanged from a year ago; that an anniversary date increase is intended to reward longevity for support staff and performance for professionals and managers, a flat dollar amount would acknowledge employees' service a permanent increase subject to future wage adjustments and pension without pay contributions; a $ 300 payment would cost about $ 78, 000. 00 ( excluding Charter Officers, Department Directors, union members, and seasonal employees); and adjustments affecting union members would have to be negotiated. Staff recommendation is to endorse a lump sum payment of $ 300. 00 ( grossed up to offset taxes) to each employee ( excluding Charter Officers, Department Directors, union members, and seasonal employees) on his /her anniversary date during FY 2009 -10 in lieu of a cost of living and /or step /merit wage adjustment. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to endorse a lump sum payment of $ 300. 00 ( grossed up to offset taxes) to each employee ( excluding Charter Officers, Department Directors, union members, and seasonal employees) on his /her anniversary date during FY 2009 -10 in lieu of a cost of living and /or step /merit wage adjustment. Mr. Patterson seconded motion and it failed by a vote of 2 to 5 with Miller and Patterson in favor and Holmes, Reeves, Garvie, Nabors, and Rynearson opposed. Medical Insurance Contribution Decision: Should the City's contribution to medical insurance premiums be Policy modified? The presentation included information that the City pays 75% of employee and dependent medical premiums, but reduced its contribution to 50% of the dependent premium for new hires after October 1, 2008; a recent survey of local jurisdictions reveals that 78% pay 100% of the employee medical insurance premium, the remaining 22% either pay 90% or 92% of the employee portion, on average they pay 61% of the premium for dependent costs; and reducing the City's portion of medical premiums ( consequently increasing the employee contribution) would reduce take -home compensation, especially since this shift would not be offset by a wage increase in FY 2009 -10. 14- Special Council meeting 5 -19 -09 BUDGET POLICY ISSUES cont. Medical Insurance Contribution cont. Staff recommendation is to reduce the City' s medical insurance dependent premium contribution from 75% to 50% and increase the City' s employee premium contribution from 75% to 90% for employees who elect family coverage as a last resort to balancing the budget effective October 1, 2009. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to reduce the City's medical insurance dependent premium contribution from 75% to 50% and increase the City's employee premium contribution from 75% to 90% for employees who elect family coverage as a last resort to balancing the budget effective October 1, 2009. Mr. Garvie seconded motion and it failed by a vote of 1 to 6 with Miller in favor and Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson opposed. Salary Reductions Policy Decision: Should employees' salaries be reduced? The presentation included information that furlough — a reduction in the number of paid hours, may result in longer times to complete construction projects and service reductions e. g. less park maintenance, reduced library hours); that fewer paid holidays — Friday after Thanksgiving, employees required to work would see their pay reduced to100% instead of 250% but City operations would be more productive with the additional work day; that wage reduction — a reduction in hourly wages, it is preferable that all employees be impacted in some part by wage reductions to maintain fairness and minimize morale issues; and adjustments affecting union members would have to be negotiated. Staff recommendation is to endorse considering tiered salary reductions as a last resort to balancing the budget effective October 1, 2009. The Mayor opened the floor for public input. As no one wished to speak public input was closed. Mr. Miller moved to endorse considering tiered salary reductions as a last resort to balancing the budget effective October 1, 2009. Motion failed for lack of a second. Conclusion The City Manager expressed that Council' s input will go a long way with developing a budget. Mr. Garvie commented on a recent newspaper article and reflected back that last year staff was reduced and stated they have looked at staffing year after year. Mr. Miller expressed the hope that the City will recognize the contributions made by the employees terminated. Mr. Nabors expressed disappointment that he did not see anything from the Police Department and Fire Department to help reduce the budget. 15- Special Council meeting 5 -19 -09 ADJOURNMENT As there was no further business, the meeting adjourned at 9:30 pm. APPROVED: MAYOR: ATTEST: CITY CLERK ddm 16-  MINUTES OF THE COUNCIL WORKSHOP MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA MAY 269 2009 INTRODUCTION A workshop meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, May 26, 2009 at 5: 00 p.m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes; Virgil Miller; Bill Garvie, Bobby Nabors ( arrived at 5: 11 pm); Bill Patterson ( arrived at 5: 16 pm); and Dick Rynearson Absent: Dennis Reeves Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors. PURPOSE The purpose of this meeting is to familiarize Council with the complexities of the reports for the General Employees' Pension Plan. 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, and then state his or her name and address for the record. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Garvie moved to approve the agenda as presented. Mr. Holmes seconded motion and it carried unanimously with Holmes, Miller, Garvie, and Rynearson in favor (Reeves, Nabors, and Patterson absent). PRESENTATION Brandy Wunker, Finance Director, advised that in June 2008 the City engaged the Bogdahn Group to perform the services of Financial Advisor for the General Employees Pension Plan. As part of the agreement, the Bogdahn group will provide the training to the City Council, which serves as the Board of Trustees, for the Pension Plan. Joe Bogdahn with the Bogdahn Group conducted an in -depth view of the pension trust fund for the first quarter of 2009 and explained issues as the market environment and asset allocation by style and by manager. Discussion ensued regarding when to consider looking to select a new investment firm /manager and Mr. Bogdahn explained that if a firm is underperforming for at least four quarters it might be wise to consider changing managers. 17-  5 -26 -09 Workshop Council meeting PRESENTATION ( CONT) The Mayor asked for public input. Dean Covey, 270 Brooks Street, clarified that the 8% funding requirement has been used since 1993, when he was first on Council. There was no additional public input. Additional discussion included the possibility of a separate pension board -to oversee the general employees' pension fund as its sole focus, and that is something that could be discussed at a future workshop meeting if Council wanted to consider the idea. Council thanked Mr. Bogdahn for his presentation and that it was informative and clarified a lot of issues. ADJOURNMENT As there was no further business, the meeting adjourned at 5: 42 pm. APPROVED: MAYOR: ATTEST: CITY CLERK Ive 18-  MINUTES OF THE REGULAR COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA MAY 269 2009 INTRODUCTION A regular meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, May 26; 2009, at 6: 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, Bobby Nabors, Bill Patterson, and Dick Rynearson. Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; 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 Pastor Larry Carter, Fishers of Men, gave the Invocation. PLEDGE Councilman Bill Patterson led in the Pledge of Allegiance. PROCLAMATIONS --RETIREMENT The Mayor presented a proclamation to Donny Yeakos of the City's Police Department on the event of his retirement. The Mayor also read a proclamation for Edmond " Ed" Rossi, also from the Police Department. Captain Rose Berry accepted the proclamation for Ed Rossi. STUDENT ACE AWARD The Mayor presented the Student Ace Award to Levi Wiegand, a senior at Choctawhatchee High School. APPROVAL OF AGENDA Mr. Holmes moved to move Item 9. 1, Award of Bid for the Redevelopment of Chester Pruitt Park, and Item 9. 1. 1., Res. 2009 -16, amending the CRA budget to complete Chester Pruitt Park, to after approval of the Consent Agenda, as the business of the day. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. SPECIAL PRESENTATION— QUARTERLY PENSION REPORTS Presentation of Quarterly Pension Reports. Joe Bogdahn of the Bogdahn Group, the City's Financial Advisor for the General Employees' Pension Plan, reviewed the investment performance of the City's investment managers for the quarter ending March 31, 2009. AWARD OF INVESTMENT MANAGEMENT SERVICES Award of investment management services for the General Employees' Pension Plan. 19- Regular Council 05/ 26/ 09 INVESTMENT MANAGEMENT SERVICES ( CONT) The Finance Director explained the recommendation to change Alliance Bernstein as an investment manager was recommended by the Investment Manager and approved by City Council at their meeting of December 2, 2008. On February 4, 2009, the General Employees' Pension Advisory Committee held a meeting and recommended the firm of Anchor Capital to replace Alliance Bernstein as the Value Manager for the General Employees' Pension Plan. The Mayor asked for public input. There was none. Mr. Reeves moved to award the Investment Management Services for the General Employees' Pension Plan to Anchor