12/07/1987 (2)
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CITY COHKISSION SPECIAL MEETING
December 7, 1987
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The City Commission of the City of Clearwater
the City Hall, Monday, December 7, 1987, at 5:04
members present: t
met in special session at
p.m., with the following
Rita Garvey
James L. Berfield
Lee Regulski
Don Winner
William Nunamaker
Mayor/Commissioner
Vice-Mayor/Commissioner
Commissioner
Commissioner
Commissioner
Also present were:
Joseph R. McFate II
Gerald Weimer
M. A. Galbraith, Jr.
Michael Laursen
Daniel Deignan
Miles Lance
Shirley A. Corum
Interim Clty Manager
Assistant City Manager
City Attorney
Personnel Director
Finance Director
Assistant City Attorney
Assistant City Clerk
The Mayor called the meeting to order and the fOllowing item was
discussed:
Ordinance 4510-87, Pension Plan
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Section 26.30 (d) and (e) (page 3) (d) Any person who has been an
employee of the City and who has contributed to the Pension Plan under the
provisions of this article, but whose service has terminated, may be
reinstated into the pension plan upon being reemployed by the City, and
passing the required physical examination, provided the contributions paid
during the employee's previous employment have not been wi thdrawn. Such
person shall not be given any credit for service for any time during which
they have not actually been employed by the City. (e) Any person whose
previous employment with the City was terminated for any reason except
discharge, and who withdrew his or her contributions under the pension plan
shall not be eligible for readmission into the pension plan upon reemployment
with the City of Clearwater, unless he or she meets all the requirements for
membership in the pension plan which apply to new employees.
Discussion ensued regarding including a provision for reinstatement into
the pension plan. The Finance Director stated the cost of a buy back
provision will impact the plan. For example, the impact of the Lois Maroon
reinstatement into the pension plan would be a cost to the City of $60,000.
Total cost includes the additional cost to the plan plus the elimination of
gain which accrues when an employee leaves City employment.
The Personnel Director stated under Civil Service rules,
returns to City employment within six months, all sick leave,
are restored to the employee.
if an employee
seniority, etc.
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(Book 40)
309.
12/7 /87
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Commission consensus was to allow a six month period from an employee's
resignation to either withdraw pension contributions, withdraw resignation, or
be rehired by the City. If an employee withdraws contributions during the six
month period fOllowing resignation, they will be eligible for reentry into the
pension plan only as a new hire should they withdraw the resignation or be
rehired by the City.
Section 26.31 (b) (page 4) Current employees on the date of adoption of
this ordinance who are not plan participants may apply for participation, and
shall be admitted upon passing the required medical examination as determined
by the Pension Adivsory Committee.
Commission consensus was to add as new participants after "admitted".
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A question was raised regarding Section 26.32, Subsection (b) (page 5)
... .. not to exceed an additional two percent of their current salaries. It
was suggested that rather than providing for a six percent employee con-
tribution with an additional two percent, the ordinance should state "a
maximum of eight percent". The Personnel Director stated there is the hope
that employee contributions could be dropped back to six percent in the
future.
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Mayor Garvey stated she felt the employees should share equally in the
cost of the pension plan. The Assistant City Manager stated from 1945 to
1973, there was never an actuarial evaluation of the pension plan. The
contributions, therefore, were not as much as they should have been and the
City is having to pay back the unfunded liability over a 40 year period.
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Section 26.33 (2) (page 6) - The Board of Trustees shall have the authority
to overrule any decision of the Pension Advisory Committee on the granting,
denial, or modification of any disability pension upon the concurrence of not
less than four-fifths of the trustees, and shall have the authority to
overrule all other decisions by a simple majority vote.
The Finance Director requested that this section be amended to add of
the Pension Advisory Committee before "by a simple majority vote".
The meeting recessed from 6:32 to 6:43 p.m.
Commissioner Regulski left the meeting.
Section 26.335 (b) (page 9) - The term of office of each advisory committee
member shall be two years. Members of the pension advisory committee existing
on the date of adoption of this ordinance shall continue to serve the full
term to which they have been elected.
The Finance Direc tor stated the Rewrite Committee requests that
existing be deleted from this section.
Mayor Garvey expressed Steve Zimmerman's concerns regarding more than one
Pension Advisory Committee member per department. Discussion ensued regarding
the method of election to the Advisory Committee.
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Commission consensus was to leave the ordinance as it is with the
membership not restricted by department.
(Book 40)
310.
1217/87
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Section 26.34 (a) (page 11) Regular retirement benefits and vested
retirement benefits shall be computed at 2-1/2% of the employee's average
annual salary of the last five years of plan participation, mu:tiplied by the
number of years of plan participation. It was suggested the section regarding
benefit cap, Section 2h.38(b), be referenced in this section.
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Section 26.34 (b) (page 11) Salary shall be defined to include regular
pay, bonuses, overtime pay, sick leave (except \oJhen paid in lump sum as a
retirement bene fi t), vacation pay, special acting pay, Fair Labor Standards
Act overtime pay, incentive pay (basic, career, and education), and leave pay
(funeral, military, union, and jury), but shall not include clothing, car or
meal allowances, tuition refunds, gas sales commissions, or fringe benefits
provided by the City.
Discussion ensued regarding overtime being included in definition of
salary. Mike Stuart, of the Pension Rewrite Committee, stated Florida
Statutes does not prohibit overtime from being included. He stated, if the
City determines that overtime not be included, previous contributions withheld
for pension should be paid back.
The Finance Director stated the Internal Revenue Service requires that,
if a police officer acts on behalf of the City, compensation must go through
the Payroll Division.
Commission consensus was to leave subsection (b) as is.
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Section 26.36 (d) (page 15) All payments or any right to payment shall
cease immediately upon the death or remarriage of the widow or widower, death
or marriage of a child or of a dependent mother or father. All payments or
any right to payment shall cease immediately upon a child reaching age 18 or
22 years if the child is an eligible student.
A question was raised regarding the word eligible. Commission
consensus was to change the language in subsection (d) to conform to the
language in subsection (c) which states "the word child or children will mean
those children who are less than 18 years of age and dependent on the employee
at the time of the employee's death, or a child or children who are less than
22 years of age and dependent on the employee at the time of the employee's
death if the child or children are regular full time students in a university,
college, high school or trade school".
Section 26.36 (f) (page 15) At an employee's election, prior to
retirement, an optional benefit may be selected which would continue the one
hundred percent benefit after five years, instead of fifty percent. The
amount of the optional benefit shall be actuarily computed so that the cost to
the penSion plan is equal to the cost had the normal benefit been selected.
This option shall not be available to an employee after retirement.
John Nicholson, of the Pension Rewrite Committee, stated should an
employee elect to take a smaller pension so that the spouse benefit would not
decrease, there could be a problem determining the amount of the dollar
benefit due to the differentiation between male and female life spans. It was
pointed out this differentiation between male and female could be a violation
of unisex regulations which provide for neutral gender.
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(Book 40)
311.
1217/87
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The Finance Director stated the option provided in subsection (f) would
require an additional amount of work for the Finance Department.
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Commission consensus was to delete subsection (f).
Section 26.38 (a) (pages 16 & 17)
established as the minimum pension for an employee, and any employee or
employee's widow or widower or other family member entitled to a pension shall
be entitled to a pension of not less than $300 per month; provided, however,
that a widow or widower or other family member eligible to receive fifty
percent of an employee's pension under Section 26.36(b) shall receive not less
than $150 per month.
The
sum of $300
per month
is
hereby
Jack Marsh, of the Retiree's Association, stated he feels Ogle and
Waters' figures regarding the minimum benefit are incorrect. Mr. Marsh stated
the minimum benefit is a decreasing cost and he requested the City Commission
consider a $500 minimum rather than $300.
Addressing the ballot question, which the City Attorney suggested be one
question, the Retiree's Association is requesting at least two questions; the
first dealing with the cost of living increase by the Board of Trustees and
the second with approval of the rest of the ordinance.
Discussion ensued regarding raising the minimum pension. The Finance
Director suggested one alternative would be setting the alternative at $300
with an automatic cost of living adjustment not to exceed five percent added
yearly. The cost to the plan of this provision would be approximately $3,300
per year.
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The Personnel Dit'ectot' stated subsection (c), which states "the minimum
benefit shall be subject to review annually and may be increased by the
Trustees not to exceed a maximum increase of five percent in anyone year",
allows a certain amount of flexibility as the Trustees can grant up to a five
percent increase on minimum benefits each and every year.
Commission consensus was to leave the provisions as stated.
Section 26.43 Effect on other pension plans (page 18) - Nothing contained in
this article shall be construed so as to adversely affect the benefits paid to
any person who is receiving benefits or who has been approved for benefits by
the Pension Advisory Committee at the time of passage of this ordinance.
It was suggested the wot'ding in this section be clarified and the title
changed to read: Effect on existing benefits. It was pointed out this
section of the ordinance deals with benefits that have been approved prior to
the adoption of the ordinance.
Mike Stuart stated the Paternal Ot'der of Police opposes the ordinance and
will be requesting the pension plan be negotiated.
Van Horton stated the C.W.A. has already t'equested to bargain the pension
plan. The I.A.F.F. has not yet made a decision.
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The Interim City Manager stated that after an agreement is reached with
the unions, it will go tv referendum for voter approval.
(Book 40)
312.
1217/B7
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The Pension Rewrite
Decemb~r 10th to finalize
unions for bargaining.
Commit tee is
the draft of
scheduled to meet
the ordinance.
again on Thursday,
It will then go to the
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The following items were discussed earlier in the meeting when Commissioner
Regulski was present.
Substitution of complainant in the Kenton Ethics complaint
The Interim
ethics complaint
Shoemaker is no
substituted.
all expenses
City Manager
was former
longer employed by
The Interim City Manager requested
incurred in the prosecution of this
stated the
Ci ty Manager,
the City,
complainan t in the Michael
Anthony L. Shoemaker.
a complainant needs to be
the City CommIssion indemniry
ethics complaint.
Kenton
As Mr.
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Commissioner
City Manager as
indemnify the
authorize the substitution
in the Kenton ethics
Manager's expenses and the Interim
with this complaint. Motion
of the Interim
complain t and to
City Manager's
was duly seconded
Winner moved to
the complainant
rormer City
expenses in moving forward
and carried unanimously.
Authorization to hire independent counsel in the Fred Thomas case.
The Interim City Manager requested
hiring of independent counsel to defend
the Buildi~g Department in Fred Thomas's
the City Commission au thorize
Andy Onufer and Dave Christiansen
suit against them individually.
the
of
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Commissioner
Onufer
expenses.
Regulski moved to
and Dave Christiansen and to
Motion was duly seconded and
hire independent counsel to
pay reasonable attorneys
carried unanimously.
defend
fees
Andy
and
Commissioner Nunamaker left the meeting at 7:30 p.m.
The meeting adjourned at 7:37 p.m.
Attest:
~LC:
Ci Y Clerk
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(Book 40)
313.
1217 /87