101689-Workshop Session MINUTES
City Commission, Sanford, Florida
October 16, 19 89
The City Commission of the City of Sanford, Florida, met in Workshop Session in ti
City Manager's Conference Room in the City Hall in the City of Sanford, Florida, at 4:00 P.
on October 16, 1989.
Present:
,e
Mayor-Commissioner Bettye D. Smith
Commissioner Whitey EckStein
Commisdioner Robert B. Thomas
CommisSioner Lon Howell
Commissioner A. A. McClanahan
City Manager Frank A. Faison
City Clerk Janet R. Donahoe
Absent: City Attorney William L. Colbert
The Meeting was called to order by the Chairman.
The first item of business was a briefing by the Finance Director, of Police a Ld
Fire Pension Boards' activities. She reported three ordinances would be needed to accompli;h
the boards' objectives as follows:
(1) PoliCe Pension - Ordinance to increase benefit rate to 2.75% --
second reading will be October 23,1989.
(2) Fire Pension - Ordinance to increase benefit rate to 2.1%, retroactive
April 1, 1989.
(3)Fire Pension - Ordinance to increase benefit rate from 2.1% to 2.2%, effecti;e
~ctober 1, 1989, to coincide with increase in contributions from 3.6%
4.6%
The Chairman asked if there were any questions. There were none.
The next item of consideration was a request from the Sanford Aero Modelers f)r
outlease of a portion of Site 10 for a proposed model flying site. Memorandum dated October
2, 1989 submitted fr.pm Director of Engineering and Planning follows:
October 2, 1989
MEMORANDUM
City Manage,~r/~/
Director of Engineering and Planning
Sanford Aero Modelers - Request for Outlease
TO:
FROM:
SUBJECT:
Mr. Faison:
Sanford Aero Modelers' letter of September 22, 1989 requests that
the City approve the concept of outleasing of a portion of Site 10
for a proposed model flying site. Although a specific site within
the property is addressed in the letter, and prior discussion, I
believe that this location is more of an example than a specific
site request. I believe it would be feasible to include planning
for such a model facility in the overall planning for Site 10, if
the City Commission chooses to do so. Although the issue has been
previously discussed by City Commission, I am not certain that
actual approval of the concept of collocation of the proposed model
facility with the utility function for which Site 10 was purchased,
was actually approved by City Commission.
In considering the request of the Sanford Aero Modelers Club, I
believe several factors need to be considered. First, the land was
purchased utilizing utility enterprise funds (bonds). The form of
lease and land utilization should be such that there is no
degradationQf "utility purpose" in terms of irrigation capacity.
Secondly, at/though this is the first request of its type we have
received for long term use of a portion of the site, I anticipate
that as time goes on we may receive other similar requests. Action
taken on this request may set something of a precedent for the
future.
MINUTES
Ci~ Commission, San~rd, Flofida Oc~obB~,
If th9 ~4~y o~mml~n ~ m~v~d ~ ~ppr~ve the coneep~ 9~ p~anninq
~w ~h~ ~,,n~nD nn ~n appropriate portion Q~ $~te 10, it is
recommended that the approval ~e given with the clear conditions
that at the appropriate time the Model Club will enter into an
appropriate lease for the specific parcel to be leased, be
responsible for making all site improvements necessary for this
operation, maintain the grounds appropriately, utilizing reclaimed
water for irrigation, and pay an appropriate rental for the use of
the property. (The Lake Jessup Hunt Club pays $8,000 per year
rent, in addition to performing significant conservation and fence
maintenance activities.)
401
Because of unknown added engineering costs inherent in planning for
this function, it is requested that City Commission direct Staff
to include this planning in the ongoing Site 10 final design.
Three members of the Sanford Aero Modelers were present to answer any questions
rom the Commission. The Chairman asked if the Commission was in favor of the concept, to
,hich the Commission answered they were. The Commission requested the City Manager, City
.ttorney, and Director of Engineering and Planning identify the engineering and lease
.etails, and submit a proposal to the Commission.
The 'next item of business was a request from Commissioner Howell to discuss two
ypes of regulatory ordinances: A. Convenience Store requirements and B. Sample Ordinance
n demolition of crack houses.
The City Manager reported that the City of Gainesville had found their Ordinances
elpful as a robbery deterrent, and that Sanford had three robberies the past month.
.fter discussion, the Commission requested that consideration of Convenience Store
.egulations be placed on the October 23, 1989 Late Agenda.
Gary Winn, Building Official, appeared and reviewed the Dade County, (Miami)
rdinance 88-59, and Ordinance No. 88-29, which he reported was similar to Sanford's
ondemnation/demolition procedures. He recommended that language contained in Dade County
~rdinance 88-59, Section 17B-15, regarding uninhabitable structures, be incorporated in
;anford's Code.
The Commission authorized to place the matter on the October 23, 1989, Late Agenda.
The next item of business was an Insurance (Medicare) Committee Update from
)irector of Personnel, Tim McCauley.
OFFICE OF PERSONNEL
DCTOBER 12, 1989
MEMORANDUM
VIA:
FROM:
SUBJECT:
MAYOR AND CITY COMMISSION
PERSONNEL DIRECTOR~
INSURANCE COMMITTEE UPDATE
BACKGROUND:
Several months qgo, during budget work sessions, a question was raised b7
Commissioner McCl~nahan regarding possible duplicate coverage provided by the
City's health fnsurance compared to the coverage already provided to those
retirees who are medicare eligible. Specifically, is continuing to provide
regular City health insurance to medicare eligible retirees a cost-effective
proposition?
1989
402
MINUTES
City Commission, Sanford, Florida
October
19 89
Since this issue was one of a complex nature due to the existence of the
"Medicare Catastrophic Coverage Act" and since any change in this benefit would
impact fifty-one (51) retirees in this category, an insurance committee was
formed to provide a diversity of opinions and suggestions. The committee was
composed of a representative from each Department, two (2) representatives from
the retiree population, and Commissioner Eckstein.
PURPOSE:
It is the purpose of this memorandum to provide to the Commission as a whole,
information regarding the topics discussed at the last meeting (October 6, 1989)
a~d to obtain from the Commission direction in response to these topics:
The complex issues contained in the provisions of the "Medicare
Catastrophic Coverage Act" were synopsized by the Personnel Director
and were provided to each member. The Personnel Director informed the
members that recent legislative action appeared to effectively "kill"
the Act thus making this aspect of the situation moot.
Discussion ensued regarding the possibility of "replacing" the City's
"regular" health insurance currently provided to medicare eligible
retirees with a "medicare supplement". The consensus of opinion seemed
to consider this to be a viable option. However, there was some
concern noted in the discussion of coverage, deductibles, and
prescription riders.
Commissioner Eckstein proposed a "tier-system" of administering health
insurance benefits to retirees. The essence of this proposal was to
offer City-paid health insurance on a percentage basis based.on
attainit%g certain levels of longevity/service and age. For example, an
employee having attained 25 years of service, and having achieved
"Retirement Age" may be entitled to 100% of City-paid health benefits
while an employee with 10 years of service would be entitled to a
lesser percentage. The proposal also contained a "Grandfather"
provision for existing retirees providing for continued 100%
eligibility.
The Commissioner's concern seemed to focus on overall budget increases,
millage rate increases, etc., as the cost of doing business has
increased over time. It was noted that personnel-related cost
increases have been identified as being significant.
CONSIDERATIONS:
On the surface, replacing traditional health insurance with a medicare
supplemental insurance for medicare eligible retirees warrants
consideration. Since the number of supplements and associated cosns is
so diverse, specific recommendations regarding this issue cannot be
made at this time. Careful consideration should be given to type of
coverage, deductible and co-payments, prescription riders, and cost.
This can only be determined by soliciting requests for proposals
(R.F.P.'s) from vendors providing this service.
If the City Commission directs pursuit of this effort it should be
noted that the time necessary to accomplish this endeavor is
approximately 60-90 days. It should also be noted that changing the
current structure of insurance benefits will require formal City
Commission action and approval.
Consideration should be given to defining retirement criteria based
on the following:
-A.
A "general" employee is currently defined as retirement eligible
upon meeting one of the following criteria:
Completed ten (10) years of service with the City and
attained the age of 62 or over.
Meets the criteria of the existing provisions of the Florida
Retirement System (F.R.S.) and has completed ten (10) years
of service with the City.
A "public safety" employee is currently defined as retirement
eligible upon meeting the provisions as outlined in Chapters 175
or 185 F.S. The statutes contain two (2) different provisions:
Ten (10) years of creditable service and attainment of age 55
or older.
Twenty-five (25) years of creditable service and attainment
df age 52 or older.
iNUTES''¥:
City Commission, Sanford, Florida O_ctober
1989
Consideration should also be given in differentiating between a retiree
not eligible for medicare as opposed to a retiree that__is medicare-
eligible. Currently, all employees retiring from the City receive the
same health insurance as a "regular" employee (100% City-p~id). If the
Commission directs restructuring this benefit to repla¢~ the current
scenario with a medicare supplemental type policy for medicare-eligible
retirees, how would restructuring affect an employee retiring prior to
medicare-eligible age? It is assumed that once a tier-structure is
established, the percentages of City-paid contributions will be defined
and can be applied in either case.
Consideration should be given to providing a cash option alternative to
the retiree in cases where the retiree may not prefer to be covered
under the group plan. The City currently has retirees in this status.
POSSIBLE RECOMMENDATIONS:
The issue pertaining to replacing the current regular health insurance
with a medicare supplement for those retirees who are medicare-eligible
appears to have merit based on the assumption that the replacement
benefit is comparable and results in a more cost-effective plan. It is
recommended that requests for proposals be solicited and reviewed by a
panel consisting of three (3) retirees in this category, the Personnel
Director, and Commissioner Eckstein. Upon completion of this process,
further recommendation to the City Commission would be forthcoming.
Review of the existing definitions of retirement eligibility as
outlined previously in this memorandum indicates a minimum service
criteria of ten (10) years. It would stand to reason that this remain
the minimum service requirement since it is applicable to all
employees. Regarding "maximum" service or "full vesting" for benefit
eligibility, an arbitrary figure of twenty-five (25) years is
suggested.
A possible tier structure could be considered as follows:
COMPLETED SERVICE
PERCENT CITY-PAID
25 Years 100%
20 Years 75%
15 Years 50%
10 Years 25%
Less than 10 Years 0%
This is. of course, only an example of possible structuring.
In terms of establishing an age criteria it is recommended that no
specific age be identified since the City's employees are involved in
different retirement systems having different criteria. It would be
more prudent to simply tie the age requirement to the definition of
"retired" status as being eligible for receipt of benefits of whatever
plan the~employee is in at the time of retirement. No deferment would
be perniitted. In other words an employee that leaves the City
employment after ten (10) years service at age 40 would not be entitled
to receipt of paid health insurance benefits since they 8o not meet the
age criteria of the retirement plan they are in. Therefore, that same
employee Would not be entitled to any City-paid health insurance and
could not defer eligibility for health insurance benefit to such time
as they can receive the "pension" benefit.
In relation to the consideration of a cash option alternative it is
recommended that the City continue the practice currently in place.
That is; allowing the retiree to opt for the cash equivalent in lieu of
the coverage.
CONCLUSION:
The analysis and possible alternatives offered in this memorandum are merely
possible options. There is a potential for significant future cost reduction.
Depending on Commission direction, formal policies will need to be formulated
and incorporated into the Personnel Rules and Regulations. It should also be
explored as to whether or not any Ordinance would be required for Commission
adoption.
The Personnel Director reported the Insurance Committee had merely arrived at a
Iood starting point, and that there were several issues involved, such as the prescription
'ider supplement of the insurance plan which would have to go out to bid to see what it would
4 0 4 MINUTE S
City Commission, Sanford, Florida
October 16,
19¸
cost. Another issue was consideration of a tier system of retirement benefits, with benefits
determined by age and length of employment. Commissioner Eckstein reported that Sanford was
the only City in Seminole County that provided insurance to retirees.
The City Manager reported that Staff needs direction as to how to structure these
benefits, that there were a lot of options and new federal legislation pending.
The consensus of the Commission was to proceed with preparation of bid
specifications, and request bid proposals for a Medicare Supplement, with benefits close to
current benefits.
The next item of business was consideration of request from Scott Ferguson to build
a small shelter, as an Eagle Project, in Veterans Memorial Park so that Sanford citizens
could enjoy the view of the lake and the park.
The Commission commended the idea, and asked if Mr. Ferguson would consider another
location. The Commission requested Staff to explore the matter further with Mr. Ferguson and
prepare a workable idea concerning other sites, and types of design structures for the
shelter.
Commissioner McClanahan reported on recycling solid waste and how this would be
accomplished in Sanford. He discussed franchising out versus City pick-up of re-cyclable
material.
Attest:
ity Clerk
There being no further business, the meeting was adjourned.
,/~vI A Y 0 R