Loading...
HomeMy WebLinkAbout092609S CC Min0 The City of West University Place A Neighborhood City CITY COUNCIL Bob Kelly, Mayor Bob Fry, Councilmember George Boehme, Councilmember Steven Segal, Councilmember Chuck Guffey, Councilmember STAFF Michael Ross, City Manager Alan Petrov, City Attorney Thelma Lenz, City Secretary CITY COUNCIL SPECIAL WORKSHOP MINUTES City Council of the City of West University Place, Texas, met in a special workshop meeting on Saturday, September 26, 2009, in the Municipal Building, 3800 University Boulevard, West University Place, Texas beginning at 9:00 a.m. Council and staff in attendance: Mayor Kelly, Mayor Pro Tem Fry, Councilmembers Boehme, Segal and Guffey, City Manager Ross, City Secretary Lenz, City Manager/Public Works Director Peifer, Police Chief Walker, Fire Chief Falls, Finance Director Daugherty, Parks and Recreation Director O'Connor, Human Resources Director Standorf, and IT Director McFarland. Others present were: T.L. Cox with Waters Consulting Group and Mr. Anthony Mills, Regional Manager of the Texas Municipal Retirement System CALL TO ORDER Mayor Kelly called the special workshop meeting to order at 9:05 a.m. Agenda items were as follows. City Secretary Lenz confirmed that the Notice of the regular meeting was duly posted in accordance with the Texas Government Code, Chapter 551. City Finances, Facilities. Programs, 2009 Tax Rate and the 2010 Budget Matters related to city finances, facilities, programs, 2009 tax rate and the 2010 Budget including revenues and expenditures for current and future years for all funds, and capital improvements, priorities and related programs and expenditures, including, but not limited to, recreation facilities, parkland and other park projects, city facilities, drainage and flood control, traffic and parking and other public improvements, and employee benefits. City Manager Ross and Finance Director Daugherty presented the City's 2010 Budget. Regarding an inquiry about the decrease in costs for health benefits, Finance Director Daugherty explained that the decreased was mainly because of the significant decrease in the health insurance premiums. Councilmember Guffey had questions regarding the increase in personnel costs. Mr. Ross explained that the fund includes the compensation plan adopted by Council in 2008, which includes a 3 percent salary increase for employees on their anniversary dates. Councilmember Guffey said things have changed a lot since the compensation plan was approved and doesn't think the 3 percent is still justified. City Council Minutes, September 26, 2009 Mayor Kelly pointed out to Councilmember Guffey that some of the cost is to get caught up because we were so far behind in salaries. Councilmember Boehme said when all is said it done we have to realize we are in a market place and said unless we pay competitive wages, we won't have access to the top employees. Mr. T.L. Cox with Waters Consulting Group said from the data his firm collected, West University Place's salaries for exempt positions are 2.5 percent below and non-exempt positions are 4.1 percent below, and executive positions are .8 percent below. He said as for structures (ranges), the midpoint for exempt positions is 1.2 percent below, non-exempt 2.0 percent above, and executive positions 2.1 percent below. He said since the last study from approximately a year ago, the salary for some groups and the structures for some groups have fallen behind once you consider the projected aging process. Human Resources Director Standorf stated that the 3 percent aging keeps us more competitive with the market. She said we could have taken a conservative approach and given 2 percent only but we might have had to play catch up again next year. Councilmember Boehme said we need to take a look at the big picture and not make staffing decisions by looking at a spreadsheet. Discussions then turned to benefits and the Texas Municipal Retirement System (TMRS). Anthony Mills with TMRS was present. Mayor Kelly began by saying that out of our seventeen benchmark cities, only 5 of those cities have the gold standard package and so he wonders if our having the gold standard package is appropriate in this day and time and, if not, how can it be adjusted it to make it more reasonable. He said he thinks the biggest impact to the City costs are the 2 to 1 match ratio and the Cost of Living Adjustment (COLA). Councilmember Boehme said he believes he was operating under the wrong premises regarding the 5 percent guarantee discussed in previous sessions. He confirmed with Mr. Mills that the 5 percent is on the employee's portion and not the City's portion. Further discussion ensued and after discussions, Councilmember Guffey said he is okay with the budget, but as for TMRS, he agrees with the mayor and thinks that we need to make adjustments. Mayor Pro Tern Fry said he is good with the budget. Regarding TMRS, he said we inherited this rich program and we may not like it, but it is what it is. He said a contract was made with employees when they were hired and he is not prepared to go against it. Councilmember Boehme said he agrees with Mayor Pro Tern Fry and said we should leave the TMRS benefits as they are. He said we are messing with something that is.working incredible well and said the cost of replacing key employees is phenomenally high. He said we all have the same objective, which is getting the most for taxpayer money. Mayor Kelly said his purpose of having discussions on TMRS was fulfilling an ongoing promise to West U taxpayers to spend money wisely. He said he personally believes that the City's retirement plan is not reasonable and though changing the COLA will be a small change, it will be showing TMRS that there are some cities standing up. He said the danger of doing nothing is far greater than what he proposes to do, which is to consider lowering the 2 to 1 match and decreasing the COLA to 50 percent. City Council Minutes, September 26, 2009 Councilmember Segal said it is reasonable and important to review the program and understand it. He said the mayor's proposal would save the City $35,000 and he thinks the $35,000 being spent is a good investment. He said it is more effective to support our employees and follow up with TMRS on their structure when they go to the Legislature. Regarding Mayor Kelly's concerns about the "unknown actuarial assumptions" and "the unknown rate of return" that could/will affect the city's rate, Mr. Mills explained that TMRS is continuing to try and put policies in place that will at least mitigate the volatility of the market and its effect on rates. He said they are working towards developing guidelines that would be more in line with TMRS' new diversified investment portfolio and establishing an asset smoothing policy that will help mitigate market fluctuations. Mr. Mills also stated that TMRS worked in good faith with stakeholders on the TMRS Advisory Committee prior to and during the Legislature to maintain a neutral position on bills that may directly or indirectly affect TMRS. He said the goal was to maintain the best chance for passage of HB 360 which contained the most important priorities that the System needed to pass and enact. One of the bills on the table during the Session was a COLA bill that would have offered cities additional flexibility in the way that COLAs are calculated. He said the bill failed and he speculates that the Advisory Committee will likely explore the provisions again, as well as several other provisions. With no further discussion, Councilmember Boehme moved to adjourn the Special Workshop Session at 12:25 p.m. Councilmember Guffey seconded the motion. MOTION PASSED. Ayes: Kelly, Fry, Segal, Boehme, and Guffey Noes: None Absent: None Special Workshop Meeting Prepared By: A. Lenz, City Date Approved: 9f iv I h V a \rfXAS