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HomeMy WebLinkAbout06/13/1994 Work Session t' cily of Springfield Work Session Council Meeting . MINUTES OF THE MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, JUNE 13, 1994 The City of Springfield Council met in Springfield City Hall, Meeting Room 2, 225.Fifth Street, Springfield, Oregon, on Monday, June 13, 1994, at 6:05 p.m. with Council President Burge presiding. Present were Mayor Morrisette, Councilors Burge, Shaver, Schanz, Beyer and Maine. Councilor Walters was absent (excused). Also present were City Manager Mike Kelly, Assistant City Manager Gino Grimaldi, City Attorney Tim Harold, City Recorder Eileen Stein, Community and Economic Development Manager John Tamulonis, Human Resources Director Frank Hotchkiss, Communications Manager Mike Moskovitz and members of staff. 1. Southern Willamette Private Industry Council (SWPIC) Appointment Community and Economic Development Manager John Tamulonis explained that Roy Orr resigned from the Southern Willamette Private Industry Council (SWPIC) as a representative from McKenzie-Willamette Hospital, and Marianne Dunn has applied for the position. Mr. Tamulonis explained how the council is federally chartered and detailed the process for appointing members through nomination by the Chamber of Commerce and ratification by the City Council. Mr. Tamulonis stated this appointment will fill the unexpired term of Mr. Orr and will be ratified on June 20, 1994. . 2. Bicycle Committee Appointment Traffic Technician Dean Bishop thanked Council for their support of the first ride your bike to work day. He told the Council the event was a success and spoke of the high level of participation from the City. Mr. Bishop explained the Bicycle Committee currently has four vacancies. He said during the application period only one application from Randy Rawson was received. Mr. Bishop explained the City has re-advertised for the remaining three vacant positions and asked the Council to ratify the appointment of Mr. Rawson on June 20, 1994. 3. Amendment to City's Retirement Plan Human Resources Director Frank Hotchkiss presented the staff report. He explained elements of the Pacific Mutual retirement plan and the differences between (emergency) public safety and general services employees in the plan. Mr. Hotchkiss reviewed the guaranteed interest earnings which apply to public safety employees. He gave background information on interest earnings and how, in the past two years, the City has fallen behind on the nine percent guarantee. . Mr. Hotchkiss stated staff recommends using current reserves through January 1995 with an eight percent guarantee, then moving to a pass-through plan with no interest guarantees after January 1995. He spoke of other possible changes to the plan, including options for employees to choose (self-direct) how their money is invested and the City developing a more assertive investment strategy. Ci~y of Springfield Work Session Council Meeting Page two . Mr. Hotchkiss explained amendments as presented and reviewed by the City's retirement attorneys, Attachment C of the staff report. Benefits Analyst Judy Goldstein explained the reduction to eight percent through January 1995, is for general service employees only and public safety employees would still earn nine percent. Mr. Kelly explained the equal to or better than PERS provision for public safety employees. He reaffirmed public safety personnel will still receive a nine percent guarantee after January 1995, to meet the equal-to-or-better provision. Councilor Shaver clarified public safety employees who retain their nine percent guarantee will not be able to choose (self-direct) investments. He asked who receives earnings if the percentage is over the guarantee, if an employee has chosen to self-direct. Mr. Hotchkiss replied, the employee would receive whatever is earned. Councilor Maine asked who currently pays the administative costs, the City or the employees. Mr. Hotchkiss replied, by State Law, the City is required to pay for all administrative fees. . Council discussed the administrative fees. Councilor Burge asked staff to provide the Council with information regarding how much the administrative fees are currently, and what fees are expected with the addition of self-directing funds. Council discussed in detail the equal-to-or-better than PERS provision as mandated by State Law. Councilor Burge asked why the City must guarantee a minimum percentage to employees, but does not provide a maximum cap. Mr. Hotchkiss explained the current reserve fund status and how plan reserves must be used to subsidize the current money and percentage guarantees and can not be placed into the General Fund. Councilor Burge stated he felt it preposterous that employees make no contribution to their retirement plan and the City contributes an average of 16% per employee. Mr. Kelly again mentioned the PERS equal-to-or-better provision and said the City has a good investment manager and a healthy reserve to draw from until the pass-through program begins. Councilor Burge asked for a projected profile for public safety and general service employees of a typical length of employment with an average salary and what the benefits would amount to over the employment period. Mr. Grimaldi stated the numbers would be out of proportion for the future versus the past. Mayor Morrisette suggested comparing Pacific Mutual and PERS also. Councilor Maine asked how much the City will save by reducing the retirement guarantee from nine percent to eight percent. Mr. Hotchkiss replied no savings will occur, the city will break even. . Mr. Grimaldi stated when the current reserve fund depletes itself, the City could move all employees to PERS to avoid increasing expenditures to the General Fund. He explained it is a union bargaining issue to switch to PERS, unless the City defaults on the equal to or better provision. Councilor Shaver suggested moving all employees to PERS if the City becomes close to subsidizing retirement out of the General Fund. .' ~i~y of Springfield Work Session Council Meeting Page three . Councilor Burge led a discussion regarding retirement benefits employees received prior to 1982. Mr. Kelly explained to the Council why the retirement benefit increased and Council discussed the contribution levels. Mr. Hotchkiss stated staff was seeking approval now for the change from nine percent to eight percent, effective until January 1995. He explained approval of this request will be on the Consent Calendar June 20, 1994. Mayor Morrisette left the meeting at 6:45 p.m. 4. Recoupinq Special Community Event Expenses Communications Manager Mike Moskovitz explained the proposed Special Events Fee policy. He explained a policy would provide consistency on how the City provides services for groups holding special events, would involve community groups in sharing in costs, while saving the City $15,000 over a three-year period, as part of Springfield Tomorrow Phase III. Mr. Moskovitz stated he created a process that is fair to all groups and referred the Council to Attachment B, regarding proposed fees for non-profit and profit groups. He also explained Attachment A, regarding actual event costs versus net costs. Mr. Moskovitz reviewed permit fees and explained how the additional charges would allow the City to recoup part of event costs. . Councilor Beyer asked if the City will be making money. Mr. Moskovitz replied the City will recoup costs incurred to support the events, but it will be new revenue for the General Fund. Councilor Schanz asked when this proposal would become effective. Mr. Moskovitz replied it is a Council decision, but staff would support a grace period. Councilor Maine supported the grace period for non-profit groups who have already adopted budgets for the current year events. The Council discussed the amount of funding and in-kind services agreed upon for the 1994 Filbert Festival. Mr. Moskovitz discussed variables to the proposal, and Council asked questions regarding specific community events. Councilor Burge asked why the City funds a portion of the Turkey Stuffer Road Race, sponsored by Willamalane Parks and Recreation District. Mr. Kelly explained informal agreements the City has with School District 19 and Willamalane Parks and Recreation District to assist at community events. Mayor Morrisette asked that a list be provided to the Council, of events the City assists the School District and Willamalane with. Councilor Shaver suggested implementation on or soon after January 1, 1994. Finance Director Bob Duey suggested implementation occur before the November General Election, due to the possible adoption of the Son of 5 ballot measure. . Councilor Shaver asked if the City owning their own barricades versus renting them would be financially beneficial. Staff discussed the storage and maintenance needs, but told Council they would research the issue. ,- , Ci'ty of Springfield Work Session Council Meeting Page four . By consensus, the Council agreed to adopt the Special Community Events Fee Policy, effective July 1, 1994, and waive all event fees until January 1, 1994. The ordinance will have a first reading on June 20, 1994. 5. CITY CHARTER REVIEW (CHAPTERS I - VII). City Recorder Eileen Stein handed out additional copies of the 1989 Springfield City Charter. Council discussed the process they would use for amending the proposed Charter. Changes were made to the following sections of the Charter: Chapter I, Names and Boundaries - NO CHANGES. Chapter II, Powers - Housekeeping changes to Section 4. Chapter III, Form of Government - Housekeeping changes to Sections 7 and 9. Chapter IV, Powers and Duties of Mayor and Council - Renumbering of Sections 14, 15 and 16. Questions regarding Section 15, subsections 6, 7 and 8. Housekeeping changes to Sections 18 and 19. . Chapter V, Powers and Duties of City Manager - Remove Section 20, subsection 10. Chapter VI, Powers and Duties of Municipal Judge - NO CHANGES Chapter VII, Elective Officers and Personnel - Housekeeping changes to Section 22, subsections 1 and 6. Ms. Stein reminded the Council they would be continuing with the City Charter review on July 11 and August 22. She stated in her absence for parental leave, Assistant City Manager Gino Grimaldi would be the Acting City Recorder and would be the lead staff person for the Charter review process. ADJOURNMENT The meeting adjourned at 9:00 p.m. Minutes Recorder - Shari Higgins ~dfh1~ .