Fort Walton Beach Council minutes — 05-29-07 special minutes — reading text

comments are very biased and does not understand why any disagreements would have culminated in the final two of days employment. He stated charter officers need a span of control and the way the Charter is written they do not have that control. Mr. Garvie mentioned the difficult environment that Ms. Absher walked into as her role as Finance Director in that she did not have guidance as to her authority or who she answered to. He also commended the actions of Ms. Absher in the way she handled the former employee, as she was only protecting the financial information of the City and had the best interest of the in mind. City  7 Special Council 5- 29- 07 TERMINATION OF FINANCE DIRECTOR (CONT) Mr. Minich strongly disagreed with the labeling of the former employee as ' stating she disgruntled,' was an excellent employee who served the City well as Chief Accountant as well as fulfilling some of the duties of finance director, that gave many hours of service to the City, and that she left as a result of a better job opportunity. Mr. Garvie I""'" countered he was not accusing the employee of any wrongdoing, as he didn' t even know her; he was merely commending what he felt was a good management policy by Ms. Absher. Mr. Minich again voiced his disagreement with Mr. Garvie' s comments. Mr. Miller discussed at length the backup information requested by Mr. Holmes which included employment information and the exit interview of the former employee. He noted dates and times, and questioned why an investigation into the accusations against Ms. Absher by the employee was done a week after the employee left. Mr. Miller voiced his opinion that the events depicted in the backup information by the former employee were in fact a conspiracy to force the resignation of Ms. Absher. Mr. Holmes stressed that he feels this was not a disgruntled employee; he believes she left on her own accord,stating she worked an extra 'four weeks, outlined her job for her successor, and noted her many accomplishments that IJI.ere mentioned by Mr. Miller from the backup material. The Mayor called for a vote on the motion. Dr. Pullen asked that the motion be repeated and asked for clarification on the vote. Clarification was given that a vote of ' yes' is in favor of terminating the employment of the Finance Director, Lisa Absher. Mr. Holmes repeated the motion to terminate the Finance Director, Lisa Absher, tonight at 12: 00 am and include the severance agreement outlined in her resignation letter dated May 18, 2007, The Mayor noted that Mr. Minich seconded the motion. The Mayor again called for the vote on the motion and it failed by a vote of 2 to 5 with Holmes and Minich in favor and Miller, Reeves, Garvie, Pullen, and Hartwell opposed. DISCUSSION OF CITY/ POLICE AND FIRE PENSION FUNDS The Mayor advised the following are the combined Items 5 and 7, requested by Mr. Hartwell and Mr. Miller respectively: Item 5: Consideration of the need to procure an independent agency to study and report on the different legally acceptable methods for executing the General Employee' s Retirement fund, and the Police and Fire Pension Funds/ Plans. This study must also examine the City' s execution of those Funds/ Plans for the past 10 years. Item 7: To review participation and contribution to the three pension funds: FWB Employees, Fire, and Police. The Mayor announced that Roberts Rules of Order was waived only for the last agenda item. Mr. Hartwell expressed concern over reports from the Finance Director and from a citizen that questionable practices were occurring regarding the General Employees Retirement Fund and the Police/ Fire Pension Funds, and he felt it was an important enough issue to discuss to make clear as to whether or not any wrongdoing has occurred. Mr. Hartwell advised he wanted to procure an independent agency to study and report on the different legally acceptable methods for executing the General Employees' Retirement Fund, the Police and Fire Pension Funds/ Plans, and that the study must also examine the City's execution of those funds/ plans for the past 10 years. Mr. Miller expressed his concern regarding the participation in and contributions to the City's three pension funds, and advised he wanted to see reports from the professional pension managers detailing payments from the City and details of the complete tracking of City funding and reporting. 8 Special Council 5- 29- 07 PENSION FUNDS ( CONTI The City Manager advised the City receives quarterly reports from professional fund managers for the General Employees' Pension Fund, with the next report occurring in June, and that Council can ask any questions of them at that time. Mr. Miller feels that an independent agency is not needed; that the Finance Director be directed to do a full investigation and give a report to Council at their June 12 and then the decision meeting, can be made whether or not to hire someone to o investigate it further. Mr. Minich called for a point of order, stating that if Council wants to debate and move forward with the issue, a motion is needed. The City Manager provided a detailed explanation regarding the three pension funds, explaining that Council serves as the Board of Trustees for the General Employee' s Pension Fund, with an advisory committee comprised of participants of the funds as dictated by the ordinance establishing the pension plan. She advised the Fire and Police Pension funds are separate and governed by State Statute, and they have their own Board of Trustees confirmed by the Council. The City Manager discussed the contributions of the funds, noting that the Police and Fire Pension contributions are determined each year by the actuary, who dictates how much is contributed to the plans. Regarding the Employees Pension Plan, the City engages an actuary who advises how much the City should contribute to the Plan. The City Manager stated that in her review of the actuarial required contribution to the General Employee' s Pension Plan and what the City contributed shows no irregularities whatsoever; the City deposited into the plans exactly what it said would be deposited. She further explained the City does not make a determination regarding the percentage of a contribution each year, that is determined by the actuary during the budget cycle and the percentage is estimated by the City, with any remaining funds placed in fund balance. The City Manager went on record to advise she does not believe there are any irregularities with regard to the contributions to these plans, and that the City is looking at selecting a new investment advisor. In light of the explanation given by the City Manager, Mr. Hartwell withdrew his request to procure an independent agency to study and report on the different legally acceptable methods for executing the General Employee' s Retirement fund, and the Police and Fire Pension Funds/ Plans. The Mayor asked for public input. There was none. Mr. Miller moved to empower the Finance Director to do an independent analysis of the Pension Funds, most particularly the Employee Pension Funds in regards to contributions, and return to Council with her findings. Mr. Minich questioned of the Chair whether the Finance Director already has this power, and if so, Mr. Miller' s motion is improper as she would not be doing an independent but an analysis, analysis. The Mayor stated he believed the Finance Director did have that power; she can be tasked to do an analysis as she is an employee of the City. The City Attorney informed that the Finance Director has the power and authority as a fiduciary duty to the Council, and if she feels there is an issue or something to review or to study or to commit an inquiry to, she has the power to do that vested in the Charter. The City Attorney continued that Council can direct her to do it in a certain amount of time, but she already has the power and duties to investigate and to carry out and even more so since she is a member of at least one of the boards.  9 Special Council 5- 29- 07 PENSION FUNDS { CONTI Mr. Miller asked the Finance Director how long it would take her to complete the analysis. She advised the analysis has already been done and the City Manager has had it for at least a month. Mr. Miller rephrased his motion to direct the Finance Director to present a report on the status of the General Employees and Police and Fire Pension Funds at the June 12, 2007 t""'- Council meeting. Mr. Minich seconded motion. Mr. Holmes advised this is the first he has heard of concerns regarding the pension funds, and questioned if any of the other members of Council besides Mr. Hartwell were aware of this situation. The Finance Director clarified for Mr. Holmes that in a conversation