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The Plainview City Council met on November 24, 2009 at 7:00 p.m. in the City Council
Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting
was posted in City Hall at 3:30 p.m. on November 20, 2009. Mayor John C. Anderson
presided. Councilmembers present were: Cathy Waggoner- District 2, Belinda Pena
District 3, John N. Bertsch- District 4, Ron Trusler- District 5, Wendell Dunlap- District 6
and Roland Nash District 7. Councilmember Kelvin Tipton- District 1 was absent.
Staff members present were: Greg Ingham -City Manager, Mike Gilliland- Director of
Public Works, Leslie Pearce -City Attorney, Rusty Powers -Fire Chief, Will Mull Police
Chief, Dale Simpson- Director of Civil Service, Eric Turner -Main Street /CVB Coordinator,
Jack Keller, Budget Manager, Pat Hernandez Municipal Court Judge and Belinda
Hinojosa -City Secretary.
News Media Representative: Hayley Cox Plainview Daily Herald
Councilmember Roland Nash delivered the invocation and led in the Pledge of
Allegiance.
Councilmember Dunlap moved to adopt the consent calendar. The motion was duly
seconded by Councilmember Trusler and carried by unanimous vote. Items approved
on the consent calendar included the approval of the minutes of November 10, 2009
and November 19, 2009 and the granting of an excused absence to Councilmember
Kelvin Tipton.
Greg Ingham, City Manager presented for consideration on first reading, Ordinance No.
09 -3523, an Ordinance Electing for the City to Make Current Service and Prior Service
Contributions to the City's Account in the Municipal Accumulation Fund of the Texas
Municipal Retirement System at the Actuarially Determined Rate of Total Employee
Compensation. Mr. Ingham introduced Judge Pat Hernandez who is on the board of
TMRS through 2011. The Texas Municipal Retirement System "TMRS was created
in 1948 by state legislation. It has 836 member cities and handles 139,488 employee
accounts and has 34,123 retirees. The total assets are over $16 billion. Each TMRS
participating city has its own retirement plan within the general framework of the
enabling legislation. The plans are essentially cash balance plans. The City of
Plainview's employee deposit rate is 7% with the City matching 2.0:1. This is the rate
for area cities also. The current city rate for Plainview is at 12.8% which is below the
rate of comparison cities of Lubbock, Amarillo, Canyon and Tulia.
In fall 2007, the TMRS Board began diversifying investments to improve returns and
reduce risks and it authorized the change of actuarial cost method from traditional unit
credit to projected unit credit to provide advance funding of repeating benefits. In 2008,
TMRS created a Legislative Stakeholder Group to devise recommending legislation
resulting in introduction of HB 360. Cities with contribution increases were allowed to
phase in rates beginning in 2009.
HB 360 by Kuempel, et al allows the crediting of interest to city accounts at a rate
different from member accounts and it allows the crediting of interest, including negative
interest, to city accounts at a variable rate. It also keeps contribution rates from
immediately rising further by supporting a higher investment income assumption,
City Council Minutes November 24, 2009 Page 1 of 3
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resulting from diversification; it establishes the basis for potential future gain- sharing
between cities and members after sufficient reserves have accumulated; it provides the
basis for stabilization of municipal contribution rates; and enables further diversification
of TMRS investments.
The TMRS Board will consider an asset smoothing policy between now and February
and the smoothing period is likely to be in the range of 5 to 10 years. Mr. Ingham
presented charts showing rates with and without smoothing.
GRS (Gabriel Roeder Smith Company Actuary for TMRS) is working with TMRS
Board and Advisory Committee to examine funding structure and pros and cons of
making changes. Combing Municipality Accumulation Fund (MAF) and Current Service
Annuity Reserve Fund (CSARF) would make TMRS fund structure similar to other
systems and would allow cities to fund benefits over a member's lifetime, not just over
the period of active employment. It would also reduce volatility of contribution rates.
These changes in structure would require legislation.
The potential impact on TMRS from redistributing the CSARF would be as follows: no
change to benefit procedures; higher probability of sustaining current benefit levels;
lower contribution for cities relieves burden on the current generation of taxpayers;
lower requirement for reserves higher earnings potential and shorter timeframe for
gain sharing; and more flexibility in smoothing techniques.
The current maximum contribution based on system plan is 13.50 There are two
options as follows: Option 1 increase 2% to 15.50 or Option 2 authorize city to
pay rate necessary to fund system as determined annually by TMRS system actuary
(current phase in rate is 14.52 He stated the logical option would be option 2.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Trusler moved to approve on first reading Ordinance No. 09 -3523. The
motion was duly seconded by Councilmember Nash.
Mayor Anderson asked for council comment. Councilmember Pena asked how this
would affect retirees. She was advised it would not affect retirees and would keep
current benefits in place.
Mayor Anderson asked for a vote on the matter. The motion carried unanimously.
Jack Keller, Budget Manager presented for consideration and to take necessary action
regarding City of Plainview Utility Identify Theft Prevention Program. He stated the
Federal Government passed the Fair Account Credit Transaction Act. He stated they
currently already do a lot of what is required in this Act. It would require access to a
credit bureau which has a particular service for utility companies. There would be an
initial $500 set up with a $100 minimum monthly charge. Based on current utility
account openings, it is projected that the monthly costs would be from $100 to $150 a
month.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Dunlap moved approval of the City of Plainview Utility Identify Theft
Prevention Program. The motion was duly seconded by Councilmember Pena and
City Council Minutes November 24, 2009 Page 2 of 3
carried by unanimous vote.
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Chief William Mull, Police Chief presented for consideration Resolution R09 -215, a
Resolution of the City Council of the City of Plainview, Texas, Approving the Request of
the Plainview Chamber of Commerce to Host the 2009 Annual Plainview Chamber of
Commerce Parade of Lights Christmas Parade; Authorizing the Filing of the Agreement
for the Temporary Closure of State Right -of -Way with the Texas Department of
Transportation for this Annual Parade; Declaring that the Event Serves a Public
Purpose; and Agreeing to Comply with Regulations. He stated this is for the annual
Christmas Parade of Lights on December 3 beginning at 6:30 p.m. It will use the
same parade route and the Police Department will use the same traffic control as in
years past. He estimates the intersection to be closed from 30 -45 minutes.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Pena moved to approve Resolution R09 -215. The motion was duly
seconded by Councilmember Trusler and carried by unanimous vote.
There being no further business, Mayor Anderson adjourned the meeting at 7:28 p.m.
Belinda Hinojosa
City Secretary
City Council Minutes November 24, 2009 Page 3 of 3