HomeMy WebLinkAbout06/13/1994 Work Session
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cily of Springfield
Work Session Council Meeting
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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.
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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
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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.
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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.
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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.
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Work Session Council Meeting
Page three
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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.
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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.
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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.
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Work Session Council Meeting
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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.
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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
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