OFFICE OF THE CITY COUNCIL
CHERYL L. BROWN 117 WEST
DUVAL STREET, SUITE 425
DIRECTOR 4TH FLOOR, CITY
HALL
OFFICE (904) 630-1452 JACKSONVILLE, FLORIDA 32202
FAX (904) 630-2906
E-MAIL: CLBROWN@coj.net
Joint Rules and Finance Committee
Meeting Minutes – Ordinance 2014-386
November 25, 2014
3:00 p.m.
Location: City Council Chamber, 1st floor, City Hall –
St. James Building; 117 West Duval Street,
Finance Committee: Council Members Richard Clark (Chair),
Matt Schellenberg, Lori Boyer, Reggie Brown (arr. 3:07), John Crescimbeni (arr.
3:06), Kimberly Daniels, Bill Gulliford, Ray Holt and Council President Clay Yarborough Excused: Doyle Carter
Rules Committee: Council Members Bill Gulliford (Chair), Warren Jones (arr. 3:09), Johnny
Gaffney, Stephen Joost, Robin Lumb, Don Redman, Matt Schellenberg and Council
President Clay Yarborough
Also: Council
Members Greg Anderson and Jim Love; Kirk Sherman, Kyle Billy, Phillip Peterson
and Brian Parks – Council Auditor’s Office; Juliette Williams – Legislative
Services Division; Jason Gabriel, Peggy Sidman, Paige Johnston, Steve Durden –
Office of General Counsel; Jeff Clements – Council Research Division; Chris
Hand, Teresa Eichner and Margo Klosterman – Mayor’s Office; Jim Linn – Lewis,
Longman and Walker (special pension counsel); Ronnie Belton, Glenn Hansen and
Joey Greive – Finance Department
Meeting Convened: 3:00 p.m.
2014-386 (amending
the Police and Fire Pension Fund benefits)
Council Member Schellenberg
withdrew his proposed amendments # 1, 2 and 5.
Schellenberg amendment #3: Mr. Schellenberg explained that the intent of his
amendment is to close the DROP program to any new participants as of January 1,
2015, or the date on which the new agreement becomes effective. Committee
members discussed the value of the DROP plan to retirees and its cost to the
City. Ms. Boyer pointed out that the committees yesterday took action that
changed the rate of return on DROP investments and felt that action dealt
sufficiently with DROP issues.
Schellenberg #3: Finance – failed 1-9 Rules
– failed 1-7
Schellenberg amendment #4: COLA increases begin after 5 years of retirement
Schellenberg #4: Finance – failed 3-6 Rules
– approved 5-3
John Keane/PFPF amendment #1: amend the Ordinance Code in Sec. 121.107 to provide
that a person may purchase time service credit in the PFPF from service earned
in another governmental retirement system provided that the service being
connected was not used for entitlement to pension benefits in the other
jurisdiction.
Mr. Keane explained that a
conflict exists between the provisions of the Florida Statutes and the General
Employees’ Pension Plan, which allow the connection of pension time service
from another jurisdiction if not used for retirement entitlement, and the PFPF
ordinance, which prohibits such connection if the employee was vested in the
previous employer’s plan, even if a full refund of contributions was taken and
no retirement benefit existed. He described several recent instances where
police officers who were members of the Jacksonville
Beach and Atlantic Beach police departments and vested in those plans, albeit
very briefly before a full refund of employee contributions, could not connect
their time service to the Jacksonville Sheriff’s Office. Several committee
members expressed general agreement with the intention of the amendment but
expressed reservations about injecting new and unstudied issues into the
discussion of 2014-386 at the last minute.
John Keane/PFPF #1: Finance – failed 3-6 Rules – approved 5-3
John Keane/PFPF amendment #2: Amend Sec. 121.209 (DROP) to clarify the time at
which a member is considered to be eligible to choose participation in the DROP
plan by changing the word “election” to “commencement” and changing the timing
of forfeiture of DROP eligibility for failure to make an election to join from
32 years of service to 31 years.
Committee members reiterated
their earlier reservations about taking up new issues at the last minute
without any background information or assurances from the Council Auditor and
the Office of General Counsel that the proposal does not have any unforeseen
financial consequences. Several suggested that since the amendment involves an
Ordinance Code amendment, it can be considered in separate legislation that
does not impact on the agreement contemplated in 2014-386.
John Keane/PFPF #2: Finance – failed 4-6 Rules – failed 4-4
Council Member Crescimbeni
stated that the minutes of the November 24th joint committee meeting
appear to incorrectly reflect the committees’ action with regard to Gulliford
amendment #2 and suggested a comparison of the minutes with the full text of the
amendments produced by Deputy General Counsel Peggy Sidman and correction of
the minutes if necessary.
The committees discussed how
best to proceed with forwarding their recommendations to the full council for
consideration, including whether to roll all of the amendments into a
substitute bill to report to the council at this evening’s meeting for
re-referral to the committees, or whether to keep the bill in the committees
until all the changes can be reviewed and digested and take a vote to transmit
to the council at the next regular committee meetings.
Motion: recommend
approval of 2014-386 as amended to date
Finance –
failed 4-6 Rules – failed 2-7
The bill remains in both committees
for a vote on recommendation at the next regular meetings.
Meeting Adjourned: 3:54 p.m.
Minutes: Jeff Clements, Council Research Division
11.26.14 Posted 12:00 p.m.
Tapes: Special CIP Committee – LSD
11.25.14
Materials: Special CIP Committee handouts
11.25.14