HomeMy WebLinkAboutDocumentation_Regular_Tab 03A_09/13/2007VILLAGE OF TEQUESTA
MEETING AGENDA ROUTING SHEET
MEETING DATE: 9/13/07
REQUESTED ACTION/SUMMARY:
The Public Safety Pension Board requests the Village Council approve an amendment to
reduce the firefighters' contribution of 6.1 % back to 5.1 % in accordance with the desires
of the firefighters.
RESOLUTION OR ORDINANCE NUMBER: Ordinance 619-06/07
ORIGINATING DEPARTMENT: Village Clerk
FUNDING SOURCE: 2006/2007 Budget
ACCOUNT NUMBER: N/A
CURRENT BUDGETED AMOUNT AVAILABLE: N/A
AMOUNT OF THIS ITEM: $ Determined by Council approval
AMOUNT REMAINING AFTER THIS ITEM: $
BUDGET TRANSFER REQUIRED: ^ Yes X No
APPROPRIATE FUND BALANCE: ^ Yes X No
Piggyback Contract Name and #:
Or
Competitive Bid #
APPROVALS:
DEPARTMENT HEAD: ~1C)/1.~ 1'Yl CI~~U~-~~- ~'~-..
FINANCE DIRECTOR:
VILLAGE MANAGER: ~ T--d '
VILLAGE MANAGER RECOMMENDATION:
APPROVE ITEM: ^
DENY ITEM: ^
VILLAGE ATTORNEY: APPROVED FOR LEGAL SUFFICIENCY
^ Yes ^ No
^ Not Applicable (n/a)
MEMORANDUM
Village of Tequesta
Clerk's Office
TO: Mr. Michael R. Couzzo, Jr., Village Manager
Honorable Mayor and Village Council Members
FROM: Lori McWilliams, Village Clerk
DATE: August 28, 2007
SUBJECT: Ordinance 619-06/07 -Public Safety Pension Board -Firefighters'
Contribution
In August 2004, Chief Weinand advised the Public Safety Pension Board that some employees
were willing to contribute more money to have less insurance premium to pay after retirement,
and therefore, Mr. Palmquist was asked to run the numbers.
In November 2004, Mr. Palmquist presented his findings to the Pension Board and Chief
Weinand, Pension Board Chair, explained this was an employee decision and would be informed
of their vote.
In February 2005, Chief Weinand explained all scenarios had been presented to the firefighters
and they voted unanimously to increase their personal contributions to 6.1 % from 5%, to include
extra benefits, which included changing the plan multipliers to 3% for years 16 through 21 and
changing the multiplier for 25 years and over to 3% and increasing the supplemental health
insurance subsidy.
On May 12, 2005, Ordinance 598 was brought before Council and adopted on First Reading and
on June 9, 2005 it was adopted on Second Reading.
In August 2007, at the request of the firefighters, Mr. Palmquist made a presentation to the
Pension Board regarding the possibility of reducing their contributions back to 5%.
The following is included in the packet for your information:
• Proposed Ordinance 619-06/07
• GRS Actuarial Study (dated August 3, 2007)
• PSO Board Minutes (8/10/04, 11/9/04, 2/18/05, 2/18/05, 8/6/07)
• Ordinance 598 as approved by Council on 5/12/05 and 6/9/05
ORDINANCE NO. 619-06/07
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AMENDING EXHIBIT
EXHIBIT "B" OF SECTION 2-30 OF THE CODE OF ORDINANCES,
VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE EMPLOYEES'
PENSION TRUST FUNDS; AMENDING EXHIBIT "B" PROVIDING FOR
DECREASE IN THE EMPLOYEE CONTRIBUTION OF FIREFIGHTERS;
PROVIDING FOR REPEAL OF ORDINANCES IN CONFLICT;
PROVIDING FOR CODIFICATION; PROVIDING FOR AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. Section 6 of Exhibit "B" to Section 2-30, Code of Ordinances, Village of
Tequesta, Palm Beach County, Florida, is hereby amended as follows:
Section 6. Contributions.
1. Member Contributions
A. Amount. Effective the first full payroll period after the effective date
of this Ordinance, ~elise-O#iseFMembers of the Retirement System
shall be required to make regular contributions to the Fund in the
amount of five percent (5%) of his/her salary. ~~°^*~~~° +h° fr^+ f, rll
AA h of Q~r~°n~4°m ~h.~ll h° r°nr iir°r• +n milt
meF~}veFS--vr- r ccrrr~rrarr-
. ° .Member contributions withheld by
the Village on behalf of the Member shall be deposited with the
Board of Trustees immediately after the withholding of such
contributions. The contributions made by each Member to the
Fund shall be designed as employer contributions pursuant to
Section 414(h) of the Code. Such designation is contingent upon
the contributions being excluded from the Members' gross income
for Federal Income Tax purposes. For all other purposes of the
Plan, such contributions shall be considered to be Member
contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions
Any monies received or receivable by reason of laws of the State of Florida,
for the express purpose of funding and paying for retirement benefits for Police Officers or
Firefighters shall be deposited with the applicable segregated account in the Trust Fund
comprising part of this System immediately and under no circumstances more than five
(5) days after receipt by the Village.
3. Village Contributions
So long as this System is in effect, the Village shall make contributions at
least quarterly to the Trust Fund in an amount equal to the normal cost and the amount
required to fund any actuarial deficiency shown by an actuarial valuation as provided in
Part VII of Chapter 112, Florida Statutes.
4. Other
Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be kept separately and kept on a segregated bookkeeping basis.
Funds arising from these sources may be used only for additional benefits for Members,
as determined by the Board of Trustees, and may not be used to reduce what would have
otherwise been required by Village contributions.
Section 2. Severability. If any provision of this Ordinance or the application thereof
is held invalid, such invalidity shall not affect the other provisions or applications of this
Ordinance which can be given effect without the invalid provisions or applications, and to
this end, the provisions of the Ordinance are hereby declared severable.
Section 3. Repeal of Ordinances in Conflict. All other Ordinances of the Village of
Tequesta, Florida, or parts thereof which conflict with this or any part of this Ordinance are
hereby repealed.
Section 4. Codification. This Ordinance shall be codified and made a part of the
official Code of Ordinances of the Village of Tequesta.
Section 5. Effective Date. This Ordinance shall take effect upon passage.
Upon First Reading this day of
Ordinance was offered by
The motion was seconded by
to a vote, the vote was as follows:
_, 2007, the foregoing
who moved its adoption.
_, and upon being put
For Adoption Against Adoption
Mayor Jim Humpage
Vice-Mayor Pat Watkins
Council Member Dan Amero
Council Member Tom Paterno
Council Member Calvin Turnquest
Upon Second Reading this day of
Ordinance was offered by
The motion was seconded by
to a vote, the vote was as follows:
2007, the foregoing
who moved its adoption.
and upon being put
For Adoption Against Adoption
Mayor Jim Humpage
Vice-Mayor Pat Watkins
Council Member Dan Amero
Council Member Tom Paterno
Council Member Calvin Turnquest
The Mayor thereupon declared the Ordinance duly passed and adopted this
day of , 2007.
MAYOR OF TEQUESTA
Jim Humpage
ATTEST:
Lori McWilliams, CMC
Village Clerk
No Text
1 ~ Gabriel Roeder Smith & Company 301 Ease Las Olas Bh~d. 954.527.1616 phone
Consultants & Actuaries Suite 200 954.525.0083 fax
Ft Lauderdale, FL. 3330]-2254 www.gabrielroeder.com
August 3, 2007
Ms. Betty t_aur
Village of Tequesta
345 Tequesta Drive
Tequesta, Florida 33469
Re: Proposed ci~anges to Public Safety Officers' Pension Trust Fund
Dear Betty:
Enclosed is the Supplemental Actuarial Valuation Report which shows the financial effect of the
following changes in benefit provisions for Tequesta Public Safety Officers' Pension Trust Fund:
• Member Contribution Rate from 6.1 % to 5.0% of base pay for firefighters only.
Our calculations show that this change in contributions can be funded by the full Chapter 175
reserV@ of $48,938 and a portion of the additional annual Chapter 175 revenue in the amount of
$7,0''6.
This report is intended to describe the financial effect of the proposed plan changes. No
statement in this report is intended to be interpreted as a recommendation in favor of the
changes, or in opposition to them.
The calculations are based upon assumptions regarding future events, which may or may not
materialize. They are also based upon present and proposed plan provisions that are outlined in
the report. If you have reason to believe that the assumptions that were used are
unreasonable, that the plan provisions are incorrectly described, that important plan provisions
relevant to this proposal are not described, or that conditions have changed since the
calculations were made, you should contact the author of this report prior to relying on
information in the report.
If you have reason to believe that the information provided in this report is inaccurate, or is in
any way inccrnplete, or if you need further information iri order to make an informed decision on
±he subject matter of this report, please contact the author of the report prior to making such
decision.
In thz event that more than orre plan change is being considerec, it is very important to
remember that the results of separate ac-iUarial valuations cannot generally be added together
to produce a correci estimate of the combined effect of all of the changes. The total can be
considerably treater than the s:~rn of the paris due to the interaction of various plan provisions
with each other, and with the assu~nptior„~ ~i gat must be used.
Ms. Betty Laur
Page 2
We welcome your questions and comments.
Respectfully submitted,
J. Stephen Palmquis , ASA
Senior Consultant and Actuary
JSP/tb
Enclosures
Gabriel Roeder Smith & Company
SUPPLEMENTAL ACTUARIAL VALUATION REPORT
Plan
Village of Tequesta Public Safety Officers Pension Trust Fund
Valuation Date
October 1, 2005
Date of Report
August 3, 2007
Report Requested by
Pension Board
Prepared by
J. Stephen Palmquist
Group Valued
All active firefighters
Plan Provisions Being Considered for Change
Present Provision Before Change
Employee Contributions - 6.1 % of Compensation for Firefighters
Proposed Changes
Employee Contributions - 5.0% of Compensation for Firefighters
Participants Affected
All active firefighters
Actuarial Assumptions and Methods
Same as October 1, 2005 Actuarial Valuation Report with no exceptions.
Some of the key assumptions/methods are:
Investment return - 8.0% per year
Salary increase - 6.0% per year
Cost Method -Aggregate
Amortization Period for Any Increase in Actuarial Accrued Liability
NA
Summary of Data Used in Report
NA
Actuarial Impact of Proposal(s)
See attached page(s).
Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously
None
Other Cost Considerations
None
Possible Conflicts With IRS Qualification Rules
None
J teph n Palmquist, ASA, AAA, FCA
Enrolled Actuary 05-1560
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of October 1
2005 2005 Change
COVERED GROUP Valuation 5.o%MemberContribution
A. Number Included in the Valuation
1. Active Members 16 16 0
2. Inactive Members 1 1 0
B. Covered Annual Payroll $ 1,008,358 1,008,358 $ 0
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits $ 4,387,282 $ 4,386,535 $ (747)
D. Actuarial Value of Assets 2,205,075 2,254,013 48,938
E. Actuarial Present Value of Future Contrib.
1. Total C - D 2,182,207 2,132,522 (49,685)
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 0 0 -
3. Portion Assigned to Future Normal Costs 2,182,207 2,132,522 (49,685)
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 0 0 0
As % of B --- --- ---
G. Annual Employer Normal Cost $ 158,758 $ 165,212 $ 6,454
As % of B 15.74 % 16.38 % 0.64
H. Required Employer/State Contribution for Fiscal
Year Ending 9/30/07 171,986 179,012 7,026
As % of'06-'07 Payroll 16.40 % 17.07 % 0.67
I. Estimated State Premium Tax Refund 68,050 75,076 7,026
As % of '06-'07 Payroll 6.49 % 7.16 % 0.67
J. Required Employer Contribution for Fiscal
Year Ending 9/30/07 103,936 103,936 0
As % of '06-'07 Payroll 9.91 % 9.91 % 0.00
FIREFIGHTERS
DERIVATION OF EMPLOYER NORMAL COST
As of October 1
2005 2005 Change
Valuation 5.0% Member Contribution
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 3,631,654 $ 3,631,654 $ 0
b. Vesting Benefits 264,618 264,497 (121)
c. Disability Benefits 326,643 326,643 0
d. Preretirement Death Benefits 103,458 103,458 0
e. Return of Member Contributions 6,755 6,129 (626)
f. Other - -
g. Total 4,333,128 4,332,381 (747)
2. Inactive Members
a. Service Retirees & Benefits - - -
b. Disability Retirees - - -
c. Terminated Vested Members 54,154 54,154 -
d. Total 54,154 54,154 -
3. Total for All Members 4,387,282 4,386,535 (747)
B. Actuarial Value of Assets 2,205,075 2,254,013 48,938
C. Unfunded Frozen Actuarial Accrued
Liaiblity (UFAAL) - - -
D. Actuarial Present Value of Projected
Member Contributions - 650,888 533,515 - - (117,373)...
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 1,531,319 1,599,007 67,688
F. Actuarial Present Value of Projected
Covered Payroll 10,670,299 10,670,299 0
G. Employer Normal Cost Rate: 100 x E/F 14.35 % 14.99 % 0.64
H. Annual Payroll of Active Members 1,008,358 1,008,358 0
I. Assumed Amount of Administrative
Expenses 14,059 14,059 0
J. Employer Normal Cost: (G x H) + I 158,758 165,212 6,454
No Text
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
August io, 2004
PAGE io
in attending. Boardmember Lucia was also interested in attending the State school
depending on the dates he had available. Vice Chair Genco indicated she might
attend the state school. Attorney Jensen advised the dates were on the Internet. Vice
Chair Genco commented this item should be in the budget. It was decided that Mr.
Petrick should attend if possible, since he was a new trustee. One person who
attended could provide an update to the rest of the board.
MOTION:
Vice Chair Genco made a motion to approve one attendee for the trustee school
in October. Boardmember Sabin seconded the motion, which carried by
unanimous 5-0 vote.
e) Actuarial Study considerations in regard to Supplemental Funds
Chair Weinand provided a preliminary report with vesting changed to six years and
the multiplier changed. The multiplier being changed had an adverse effect on
firefighters where their benefits were actually reduced. Chair Weinand commented
these people were young and would have more than 25 years before they could retire;
and proposed to take years 16-20 and increase the multiplier to 3%. No one could
retire until age 55-one had to work 32 years to retire at 55. This only affected
people working over 25 years. An employee who worked 25 years was not affected.
Boardmember Sabin commented if the issue was after 25 years, just change the
calculation after 25 years to go to 3%. Chair Weinand commented he did not know if
the fund could afford that. An incremental change would not make a big hit.
Boardmember Sabin asked if this could be grandfathered, to which the response was
yes. Attorney Jensen indicated just change the benefit now-it would be for every
retirement from this point forward. Chair Weinand commented it might be cheaper
to give 25 years and out Discussion ensued. Consensus was to have the actuary
look at this before making any decision; when engaging the actuarial services ask him
to look at this and give the cost. Boardmember Sabin cautioned to be sure no one
was giving up a benefit, and suggested there might be another way to look at this.
After further discussion, Chair Weinand reported some of the employees would be
willing to contribute more money to have less insurance premium to pay after
retirement, and this was the time of year to ask the actuary those types of questions.
Vice Chair Genco summarized that the board wanted the actuary to look at 25 years
and increasing insurance benefits for retired individuals, look at the multiplier, and
have Mr. Palmquist run those statements.
X. ANY OTHER MATTERS
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
November 9, 2004
PAGE 8
Palmquist clarified all were extra, coming out of the State extra money. Mr. Palmquist
directed attention back three pages to the first page of numbers where at the top it said,
Police Officers Annual Required Contribution. Line K was the City contribution, and
the numbers were projected for 2005. If the change was made to the 2S and out
provision, the annual required contribution would go from $58,493 to $59,730. The
next line down was State revenue. The amount for police was $67,000 and the base
line was only $25,000, so they had a huge amount of money they could spend. The
City contribution stayed at $33,000 if the retirement was changed to 2S and out, for
this benefit number one. Skipping back to look at the firefighters' page, they would go
from $145,000 to $156,000 to pay for 2S and out, and that would cost about $11,000
and there was enough State revenue to coverthat-it would go from $50,000 to
$61,000, and the City cost would be unaffected. It turned out for each of the items
individually-the 2S and out, or the 3% for 16 to 21 or 3% after 2S years-there was
enough State revenue to pay for any one of those. The right-hand column showed
some of those combined together. For example, for firefighters, benefits 1, 2, and 4-
the 2S and out provision, the 3% for years 16 to 21, and the $20 supplement the cost
went from $145,000 to $183,000, but there was not enough State revenue to cover all
that, and the City or the employees would have to pay for it. If employees decided they
wanted to pay for extra benefits, it would be mandatory that all employees pay. The
firefighters and police did not have to choose the same combinations. Chair Weinand
advised he thought the firefighters would want to increase their contribution 1-1 /2% to
have the extra later on to pay for their health insurance. Vice Chair Genco commented
they might want to let State funds accrue for another couple of years and then there
would be enough to fund that for both police and fire, and it would be simpler
administratively to do the same for both funds. Vice Chair Genco commented 2%
more out of someone's pay might be a hardship, and by waiting it would not have to
come out of their paycheck. During ensuing discussion, Mr. Palmquist expressed his
opinion police salaries would increase faster than State revenues, so in the future there
would probably be a cost to the 2S and out at some future date. Chair Weinand
commented the board did not need to make a decision on this today. Mr. Palmquist
reviewed other benefit combinations, and it was clarified that if the numbers on line K
were subtracted from the first amount, that would be the dollar amount for each
combination. Chair Weinand thanked Mr. Palmquist for coming, and commented
this was an employee decision and they would be informed to see if they wanted
to do anything..
d) DISCUSSION REGARDING PUBLIC SAFETY OFFICERS' PENSION
FUND ADMINISTRATOR
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
February i8, 2005
PAGE 11
and if they wanted something changed then would ask her to do it, and at the
following meeting would authorize the actual execution and transfer of
assets, so it was still two steps away from transferring the assets.
Boardmember Lucia seconded the motion, which carried by unanimous 3-0
vote.
c) Discussion and Consideration of Bill Paying Procedure if Custodian chosen
does not provide Check Writing Services.
Pension Board Coordinator Carlisle advised there was no backup for this item-it
was placed on the agenda in case the custodian chosen did not provide checking
account services. Vice Chair Genco commented the Finance Department would
set up a procedure with Salem Trust through a letter of authorization. Mr.
Bogdahn advised that Salem Trust representatives would come sit with the
Finance Department. Chair Weinand advised no action was necessary at this
time.
d) Report of Firefighters Vote for Increased Funding for Extra Benefits
Chair Weinand reported all the scenarios laid out by Mr. Palmquist had been
presented to the firefighters and they had voted unanimously to increase their
personal contributions to 6.1 % instead of 5%, to include extra benefits, which was
Mr. Palmquist's option 6, which included changing the plan multiplier to 3% for
years 16 through 21 and changing the multiplier for 25 years and over to 3%, and
increasing the supplemental health insurance subsidy. Copies of all the ballots
were included in the packets. They were going to use the supplemental monies
now in reserve but would fall short, so were contributing another 1.1 % out of their
paychecks. The Village contribution rate did not change. Chair Weinand reported
the police contribution rate did not change-it was sti115%. Vice Chair Genco
asked if there would be a point where the police department was benefiting from
or being discriminated against because the firefighters were doing these additional
benefits Chair Weinand advised they would get the benefit, too. Vice Chair
Genco commented because the police and fire funds were commingled, State
regulations required that one group could not receive a benefit that the other did
not and it had to be equal. Chair Weinand reported the last time this went to the
Village Council they had been adamant about keeping the benefits the same for
fire and police. The contribution rates could be different as long as benefits were
the same. Vice Chair Genco commented that was because State funds were
accepted. Mr. Bogdahn commented at some time down the road probably the
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
February i8, 2005
PAGE 12
police would ask to separate the fund. Finance Director Forsythe commented that
was being tracked. Chair Weinand commented there were enough state funds for
the police so that their contribution did not have to change, but there were not
enough state funds for the firefighters so their contribution rate had to be
increased to provide the benefits. Vice Chair Genco commented that this would
be an actuarial impact issue in the future and it might legally affect state funds.
Chair Weinand advised firefighters could not use police funds and police could
not use firefighters funds-they had to stay separate for extra benefits. Vice Chair
Genco commented one group might have to contribute more or less for the same
benefit and if something happened at the State one class could be at a
disadvantage, and as the assets got larger the board might want to think about
separating the funds-probably in two to three years. Ms. Forsythe reported there
were actually two sets ofbooks-actually two plans, which was why astand-alone
audit had not been required. They were presented to the State separated. Vice
Chair Genco asked if any changes were needed to the plan document for these
changes. Attorney Jensen advised the plan document would have to be amended
to incorporate the changes and be presented to the Village Council and to Steve
Palmquist for his actuarial cost statement. Chair Weinand advised that Mr.
MOTION:
Vice Chair Genco made a motion to have Steve Palmquist provide a copy of
the report which was authorized at the November meeting and for which an
invoice in the amount of $2,935.00 had been received, and that Attorney
Jensen make the changes to the plan documents, including boilerplate
language she would provide to Attorney Jensen so that there could be an
authorization resolution that could be presented to other entities whenever
there was a contract as to who had signing authority and what that authority
was. It was confirmed by Attorney Jensen that Mr. Palmquist would have
already done the work, and there were several changes and he would put into
the proper report format only those changes that applied to this.
Boardmember Lucia expressed concern there would be additional charges;
Chair Weinand commented he did not believe the extra charges would be
extensive. Boardmember Lucia seconded the motion. Chair Weinand stated
he would call Mr. Palmquist to get the cost for the accrual cost impact
statement. Chair Weinand summarized that the motion was to authorize
Attorney Jensen to amend the plan document, to include trustee
certifications, and for Mr. Palmquist to do an impact statement so that this
could be moved forward to the Village Council. Motion carried by
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
February ~8, 2005
PAGE ig
unanimous 3-0 vote.
e) Discussion of budget for 2005
Chair Weinand commented he and Finance Director Forsythe had discussed this
and she had indicated it would not be hard to put together. Chair Weinand asked
that Director Forsythe present this item at the March meeting just basically
income and expenses.
VI. STANDING REPORTS
a) Approval of new applicants for participation in Pension Plan- None.
b) Approval of Beneficiary Changes -None
c) Request for withdrawal of contributions -
MOTION:
Motion was made by Boardmember Lucia, seconded by Vice Chair
Genco and carried by unanimous 3-0 vote to approve the following
requests for withdrawal of funds:
Roberto B. Madera -firefighter. Date of Termination 8/16/02
Rollover - $2,587.55; and
Gregory Meehan -police officer. Date of Termination 1/23/05
Payout $3,005.67; withheld for tazes $751.42, total $3,757.09.
d) Ratification of withdrawals made since last meeting
MOTION:
Motion was made by Boardmember Lucia, seconded by Vice Chair
Genco and carried by unanimous 3-0 vote to approve the
reimbursement paid to Boardmember Joe Petrick for Trustee School
Expenses in the amount of $631.45.
VII. FINANCIAL REPORTS
a) Statement of Accounts (October-December 2004)
Public Safety Officers' Pension Board Meeting Minutes
August 6, 2007
Page 2
IV. Administer Oaths Of Office
Village Clerk Lori McWilliams administered the oath of office to the following
members of the board:
Ray Giblin (ran unopposed for another term from July 15, 2007)
Ed Sabin (to be administratively approved by Village Council at their
August 2007 meeting)
Ken Nielson (to be re-appointed by Village Council August 9, 2007)
Ms. McWilliams expressed her feeling it was very important that pension board
members dealing with employee funds take an oath stating they would perform
their duties, and noted that the only remaining member of the board who needed
to take the oath was Kevin Pittman.
V. Approval of Minutes
Secretary Nielson questioned on page 2 that the figures as stated by Mr.
Holtgrieve did not add up to the total he had given of $218,000, since the total
was actually $216,000. During discussion, the conclusion was that this was an
error in rounding, and the Recording Secretary indicated she would make a
change to reflect this comment.
MOTION:
Boardmember Sabin made a motion to approve the minutes of the May 7,
2007 meeting of the Tequesta Public Safety Officers' Pension Trust Fund
Board Of Trustees subject to any changes on the comment. Boardmember
Cooper seconded the motion, which carried by unanimous 4-0 vote.
VI. Presentations
Steve Palmquist, Gabriel Roeder, Smith & Company, distributed copies of his
report and advised that his company had been asked to determine if there was
enough 175 revenue on behalf of the firefighters to reduce their contribution from
their current 6.1 % of pay, back down to 5%. Mr. Palmquist reviewed the figures
provided, which showed the net effect on the Village's contribution would be
zero, since there was enough annual State revenue to reduce member
contributions to 5%. The underlying assumption was that the State revenue,
which came from property insurance, would continue at least at the current level.
Attorney Jensen advised that although this subject was scheduled later on the
agenda, Jupiter Inlet Colony had passed their ordinance, so the Village would be
able to collect from them; therefore, there should be enough increase in 175
Public Safety Officers' Pension Board Meeting Minutes
August 6, 2007
Page 3
money just from the added funds from Jupiter Inlet Colony. The amount of those
funds would be calculated in the next actuarial evaluation report. Mr. Palmquist
advised that the next step would be to present this to the Village Council, then he
would add one page to the report called an actuarial impact statement, which had
to be sent to the State before second reading of the amending ordinance.
Attorney Jensen advised that she would have to prepare an ordinance reducing the
firefighters' contribution rate. It was clarified that the additional benefits were
approved approximately two years ago, and now the 175 money was sufficient to
cover those benefits. Mr. Palmquist advised that police officers received 185
money, which was provided primarily from automobile casualty insurance, and
the amounts for both 175 and 185 money should be available within the next
week or so. Attorney Jensen reported June 5, 2005 was the date the increase in
firefighter contributions had gone into effect.
The date of 2005 shown on Mr. Palmquist's report for the last actuarial evaluation
was questioned. Mr. Palmquist clarified that his company currently provided an
actuarial report every other year, and October 1, 2005 was the date of the last
report. Attorney Jensen advised that the General Employees' Pension Board was
considering having an actuarial report done every year, but had not yet made a
decision. Mr. Palmquist advised he had a vested interest in providing a report
each year, but that aside, it was a way to keep better track of the financial
condition of the fund more often, and it also allowed the board to be more
schooled on the actuarial terms and procedures, and more education was better
than less. Also, as Attorney Jensen had mentioned at a previous meeting, if bad
things were going on, such as a big contribution increase, it would be known
sooner rather than later. Attorney Jensen clarified that at the General Employees'
Pension Board meeting, Merlene Reid had asked what the advantages would be of
having the actuarial report done each year. Mr. Palmquist was asked to provide
the cost of providing the actuarial evaluation each year, so that the board could
evaluate this matter after they had received the next actuarial report.
Secretary Nielson asked what the next step would be, to which Attorney Jensen
responded she would need authority to draft an amendment. Pension Coordinator
McWilliams advised that she would like to proceed in the same manner as the
General Employees' Pension Board had used when presenting to the Village
Council, which was to have Mr. Palmquist come to the Village Council meeting
to make the presentation to the Council on the amendment, and the attorney could
go ahead and draft the amendment.
MOTION:
Secretary Nielson made a motion to ask Attorney Jensen to draft the
amendment to reduce the firefighters' contribution of 6.1% back to 5% in
accordance with the desires of the firefighters. Boardmember Sabin seconded
the motion, which carried by unanimous 4-0 vote.
Public Safety Officers' Pension Board Meeting Minutes
August 6, 2007
Page 4
MOTION:
Secretary Nielson made a motion to approve the fee to have Steve Palmquist
make a presentation to Village Council at their September 13, 2007 meeting
regarding reducing the firefighters' contribution of 6.1% back to 5%.
Boardmember Sabin seconded the motion, which carried by unanimous 4-0
vote.
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Minutes -Village Council Regular Meeting 05/12/05
Page 30
. west side of Old Dixie Highway. Consensus of Council agreed. Vice Mayor
Watkins indicated it should be simple to complement the west side.
Council Member Genco commented she needed to leave the meeting, due to an eazly
morning trial. She noted she was trilled about moving forwazd with Constitution Pazk.
Council Member Genco left the Meeting at 1 D: SD P.M.
XI. NEW BUSINESS
25. ORDINANCE 598 -FIRST READING - AN ORDINANCE OF THE
VILLAGE COUNCII, OF THE VILLAGE OF TEQUESTA, PALM
BEACH COUNTY, FLORIDA, AMENDING EXHIBIT "A" AND
EXHIBIT "B" OF SECTION 2-61 OF THE CODE OF ORDINANCES,
VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE
EMPLOYEES' PENSION TRUST FUNDS; AMENDING EXHIBIT "A"
TO PROVIDE FOR 6 YEAR VESTING FOR ENTITLEMENT TO
DISABII,ITY BENEFIT; AMENDING EXHIBIT "B" TO PROVIDE
FOR BOARD OF TRUSTEES ADMINISTRATIVE DUTIES;
AMENDING EXI-IIBIT "B" TO PROVIDE FOR INCREASE IN
CONTRIBUTION OF FIREFIGHTERS; AMENDING EXI-IIBIT "B" TO
INCREASE THE NORMAL RETIltEMENT BENEFIT; AMENDING
EXEIIBTT "B" TO INCREASE THE MONTHLY SUPPLEMENTAL
• BENEFIT; PROVIDING FOR REPEAL OF ORDINANCES IN
CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING FOR
AN EFFECTIVE DATE.
Attorney Hawkins read far the record the title of Ordinance 598.
Mayor Humpage opened the public hearing.
MOTION: Yice Mayor Watkins moved to approve First Reading of Ordinance 598;
seconded by Council Member Resnik
Council Member Resnik noted in reading the memo it stated there would
be no impact on the contributions from the Village. He questioned whether
the contribution was increasing based on the changes. He noted there was
an increase on Actuarial table for Police Officers, Page 3, Employer
Normal Cost from $53,969.00 to $61,361.00. Chief James Weinand, Fire
Department explained the plan Normal Cost was increasing, but on Line
L, the supplement amount from the State revenue was also increasing. He
noted the payroll percentage was staying the same, but the plan costs
would go up, but they were paid for out of Chapter 175, & 185,
supplement money.
•
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Page 31
Mayor Humpage asked for public comments. Their being no comments,
• Mayor Humpage closed the public hearing.
Motion passed 4-0.
25.1 A) RESOLUTION N0.49-04/05 - A RESOLUTION OF THE VILLAGE
COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH
COUNTY, FLORIDA, TO RECOGNIZE GRANT REVENUE FROM
THE FLORIDA DEPARTMENT OF LAW ENFORCEMENT 1N 'THE
AMOUNT OF $19,950.00 AND TO APPROPRIATE $19,950.00 FOR
THE PURCHASE AND INSTALLATION OF A VIDEO
SURVEILLANCE SYSTEM AT THE WATER PLANT, THEREBY
INCREASING THE AMOUNT BUDGETED IN REVENUE ACCOUNT
#401-400-334.210 AND INCREASING THE AMOUNT BUDGETED IN
EXPENDITURE ACCOUNT #401-242-664.600.
Attorney Hawkins read for the record the title of Resolution 49-04/05.
MOTION: Vice Mayor Watkins moved to approve Resolution 49-04/OS; seconded by
Council Member Resnik
Mayor Humpage stated this was a Florida Department of Law
Enforcement (FDLE) grant. Mr. Robert Garlo, Assistant Village Manager
mentioned the Water Treatment,Plant was near the deadline for this grant.
He indicated he would review the specifics of the system under Item
25.1B.
Motion passed 4-0.
25.1 B) RESOLUTION 50-04/OS - A RESOLUTION OF THE VIIrLAGE
COUNCIL OF THE VII,LAGE OF TEQUESTA, PALM BEACH
COUNTY, FLORIDA, AWARDING A CONTRACT TO
INTERNATIONAL SECURITY NETWORKS, INC. OF SINGER
ISLAND, FLORIDA, IN THE AMOUNT OF $19,950.00, FOR THE
PURCHASE AND INSTALLATION OF A SURVEILLANCE
SECURITY SYSTEM AT THE WATER TREATMENT PLANT,
HAVING BUDGETED $19,950.00 IN THE WATER UTILITY FUND
#401-242-664.600 FROM GRANT REVENUE ACCOUNT #401-000-
334.210, AND AUTHORIZING THE VILLAGE MANAGER TO
EXECUTE THE APPLICABLE CONTRACT ON BEHALF OF THE
VILLAGE.
Attorney Hawkins read for the record the title of Resolution 50-04105.
MOTION: Council Member Resnik moved to approve Resolution SD-04/OS; seconded
• by Vice Mayor Watkins.
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Minutes -Village Council Regular Meeting 06/09/05
Page 8
Marinelli for attending the meeting. He mentioned he attended the Police
• Academy in the eazly 1970's when Mr. Joe Macy was the Director.
5.1 Presentation -Display of new ambulance for the Village of Tequesta.
Fire Chief James Weinand mentioned .last October Council approved the
purchase of a new ambulance for the Village of Tequesta. He indicated the
vehicle was parked outside and if Council desired to take a recess they
could look at the vehicle. He mentioned Pastor Paul Beresford would like
to do a blessing of the vehicle before it was put into service.
Mayor Humpage recessed the Meeting at 8:00 P.M., and reconvened the Meeting at 8:1 S
P.M.
IV. APPROVAL OF. AGENDA
To speak before Council, all citizens are requested to submit their Comment
Cards to the Village Clerk at this time for any agenda or non-agenda items.
Comment Cards should include name, address, phone number, agenda item
number and brief summary of topic to be discussed Comment cards are available
from the Village ClerJk
MpTION_ Yice Mayor Watkins moved to approve the agenda, as amended; seconded
• by Council Member Genco.
Council Member Resnik removed Item 7 from the Consent Agenda.
Vice Mayor Watkins removed Item 8.1 from the Consent Agenda.
Council Member Genco removed Item 14 from the Consent Agenda.
Mayor Humpage removed Items 16A and 16B from the Consent Agenda.
Motion passed S-0.
V. UNFINISHED BUSINESS
5. ORDINANCE 598 - SECOND READING - AN ORDINANCE OF
THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM
BEACH COUNTY, FLORIDA, AMENDING EXHIBIT "A" AND
EXHIBIT "B" OF SECTION 2-61 OF THE CODE OF ORDINANCES,
VILLAGE OF TEQUESTA, FLORIDA, RELATING TO THE
EMPLOYEES' PENSION TRUST FUNDS; AMENDING EXHIBIT "A"
TO PROVIDE FOR 6 YEAR VESTING FOR ENTITLEMENT TO
DISABII,ITY BENEFIT; AMENDING EXHIBIT "B" TO PROVIDE
FOR BOARD OF TRUSTEES ADMINISTRATIVE DUTIES;
AMENDING EXHIBIT "B" TO PROVIDE FOR INCREASE 1N
CONTRIBUTION OF FIItEFIGHTERS; AMENDING EXI-IIBIT "B" TO
INCREASE THE NORMAL RETIREMENT BENEFIT; .AMENDING
EXHIBIT "B" TO INCREASE THE MONTHLY SUPPLEMENTAL
Minutes -Village Council Regular Meeting 06/09/05
Page 9
BENEFIT; PROVIDING FOR REPEAL OF ORDINANCES IN
CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING FOR
AN EFFECTIVE DATE.
Attorney Scott Hawkins read for the record the title of Ordinance 598.
Mayor Humpage opened the Public Hearing.
MOTION: Vice Mayor Watkins moved to approve Second Reading of Ordinance 598;
seconded by Council Member Resnik
. Council Member Genco indicated this was the first time she had seen a
copy of the actuarial report for the Public Safety Officers Board of
Trustees. She questioned whether there was an error on the last page of the
report "Firefighters Normal Cost Derivation" regarding the Valuation
Date, October 1, 2003 Valuation and the October 1, 2003 After Changes.
She felt this report did not go with the Ordinance. Chief Weinand
explained the actuarial statements also go prior to October 2003, and then
after October 1, 2003. He indicated the Public Safety Officers Board of
Trustees does atwo-year actuarial study, so the next report will be
October 2005. Council Member Genco pointed out this was report dated
October 2003, and was not an updated report with the wrong date. Chief
Weinand indicated Mr. Palmquist did an update, but he did it based upon
• the plan that was currently in effect today, based on the October 1, 2003
actuarial, and then the changes that was made to date for the current plan.
Chief Weinand commented Mr. Pahnquist did not update the entire report;
he only did an impact study on the benefits.
Their being no Citizen Comments, Mayor Humpage closed the public
hearing.
Motion passed S-0.
6. RESOLUTION 70-04/05 - A RESOLUTION OF THE VILLAGE
COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH
COUNTY, FLORIDA, APPROVING A CONTRACT WITH KQVILEY-
HORN -AND ASSOCIATES INC. FOR ENGINEERING DESIGN
SERVICES TO REPLACE THE TRAFFIC SIGNALS AT TEQUESTA
DRIVE AND OLD DIXIE HIGHWAY IN THE AMOUNT OF
$23,149.29 FROM ACCOUNT 3 303-399-663.675.
Attorney Hawkins read for the record the title of Resolution 70-04/05.
MOTION: Council Member Genco moved to approve Resolution 70-04/04; seconded
by Vice Mayor Watkins.
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