Owosso Employee's Retirement System Minutes

October 14, 2004 - 8:00am

City Clerk Gail L. Schultz administered the oath of office to Wilfred A. Farrell as a new board member.

PRESENT:       TRUSTEES WILLIAM BLANCHETT, JOHN C.M. DAVIS, WILFRED A. FARRELL, FRANCES KUKULIS, MARK MITCHELL, LINDA ROBERTSON, AND JAMES TREADWAY.

ABSENT:         NONE.

CALL TO ORDER

The Board asked the City Clerk to chair the meeting until the chairperson is elected.

APPROVAL OF AGENDA

Motion by Trustee Robertson to approve the agenda as amended.  Motion supported by Trustee Mitchell and concurred in by unanimous vote.

ELECTION OF CHAIRPERSON

Motion by Trustee Davis to nominate Trustee Robertson for Chairperson.

Motion concurred in by unanimous vote.

ADMINISTRATION OF OATH OF OFFICE

City Clerk Gail L. Schultz administered the oath of office to Trustee Robertson for Chairperson.  Chairperson Robertson assumed the chair of the meeting.

ELECTION OF VICE-CHAIRPERSON

Motion by Trustee Mitchell to nominate Trustee Kukulis for Vice-Chairperson.

Motion by Trustee Davis to nominate Trustee Treadway for Vice-Chairperson.

Roll Call Vote:

Vote total:          Kukulis – 4                    Treadway – 3

ADMINISTRATION OF OATH OF OFFICE

City Clerk Gail L. Schultz administered the oath of office to Trustee Kukulis for Vice-Chairperson.

CONSIDERATION OF A CHANGE IN THE DAY OR TIME OF BOARD MEETINGS

Trustee Kukulis proposed to add two meetings a year.  She said the current schedule would be March 17, 2005, June 16, 2005, September 15, 2005 and December 15, 2005.  Her proposed schedule would be February 17, 2005, April 21, 2005, June 16, 2005, August 18, 2005, October 10, 2005 and December 15, 2005.

There was general discussion regarding the need to require two more meetings, types of business that would need addressing between regular meetings, having the time to hear presentations by money managers, authorizing City Treasurer to pay bills and address employee issues that arise between meetings.

Motion by Trustee Kukulis to adopt a meeting schedule of six meetings a year in 2005 as follows: 8 a.m. on February 17, 2005, April 21, 2005, June 16, 2005, August 18, 2005, October 10, 2005 and December 15, 2005 with a yearly review at the organizational meeting.

Motion supported by Trustee Blanchett and concurred in by unanimous vote.

City Clerk Schultz announced that Finance Director Richard Williams had scheduled Michael VanOverbeek to speak at the December board meeting.

CONSIDERATION OF RULES OF PROCEDURE

Trustee Kukulis introduced proposed Rules of Procedure.  There was general board discussion regarding the proposed rules.  City Treasurer Ronald Tobey will draft a resolution to address the types of payments that he can make without prior board approval.  City Attorney Brown will assist in the preparation of this resolution.  The resolution will be reviewed annually at the organizational meeting of the Board.  The proposed resolution will be presented to the Board for their consideration at the December 16^th Board meeting.

Motion by Trustee Kukulis to adopt the following rules of procedure:

CITY OF OWOSSO

MUNICIPAL EMPLOYEES RETIREMENT SYSTEM BOARD

RULES OF PROCEDURE

1. These rules are adopted pursuant to Section 2-406 of the City of Owosso Municipal Employees Retirement System Ordinance.

2. The purpose of these rules is to establish procedures to be followed by the Board in its organization and conduct of its business.

3. These rules shall be reviewed, amended, and adopted annually at the organizational meeting of this board.

4. Pursuant to Section 2-406 such rules shall become effective when a copy thereof is filed with the Clerk. A copy of such rules shall also be placed in the Owosso Public Library.

5. The Board shall hold meetings regularly, at least once in each quarter of each year and shall designate the date, time and place thereof annually at their organizational meeting.

6. The Board shall notify the Clerk of the schedule of meetings.  This schedule shall be posted along with the Schedule of Regular Meetings of all Boards of the City of Owosso.

7. The Board shall meet in the established Council chambers.  If any time set for the holding of a regular meeting of the Board shall be a legal holiday, then such regular meeting shall be held at the same time and place on the next day, which is not a legal holiday.

8. The Board will hold its organizational meeting at the first regular meeting following the installation of new trustees each year.

9. Pursuant to Section 2-408 (a), the Board shall elect from its membership a Chair and Vice-Chair, and will do so each year at its organizational meeting.

10. The Chair shall preside at all meetings of the Board and shall have an equal voice and vote upon all matters of the Board.

11. In the absence or disability of the Chair the Vice-Chair shall act in their place.

12. In the absence of both the Chair and Vice-Chair the trustees present at any meeting shall appoint one of their number to act as Chair during such absence.

13. The Chair and persons acting in his place shall not possess veto power.

14. The Vice-Chair shall succeed to the office of Chair when a vacancy occurs in that office and the Board shall than elect from its membership a new Vice-Chair.

15. Vacancies on the Board will be filled pursuant to Section 2-405 of the City of Owosso Retirement System Ordinance. 

16. By order of these rules, an office of trustee shall become vacant upon the occurrence of any of the following events: (1) Expiration of the term of office; (2) Death of the trustee; (3) Resignation of the trustee; (4) Removal from office; (5) Ceasing to possess the qualifications or eligibility required for election or appointment to office; (6) Failure to take the oath for the office within ten days from the date of election or appointment; or (7) Any other event which by law, creates a vacancy. 

17. Resignations of trustees who are not members of the City Council or appointed by the City Council shall be made in writing and filed with the Clerk.  The Clerk shall notify the Board, forthwith of all resignations and shall read the same to the Board at its next meeting. All such resignations shall be effective when filed with the Clerk, unless a later time of taking effect is specifically stated therein.

18. Absences from more than fifty percent of all meetings in any calendar year shall require notice by the City Clerk to the appropriate appointing or electing entity.

19. Special meetings of the Board, upon notification to the Clerk, shall be held at the regular meeting place of the Board, and shall be called on the written request of the Chair, or any two members of the Board, designating the time and purpose of such meeting.  The Clerk shall serve a copy of such meeting notice on each member of the Board, and post such meeting notice in a conspicuous place as notice to the membership and general public.

20. No business shall be transacted at any special meeting of the Board except that stated in the notice of the meeting.

21. All regular and special meetings of the Board shall be public meetings and the public shall have a reasonable opportunity to be heard.

22. Pursuant to section 2-408 (b), of the City of Owosso Retirement System Ordinance the city clerk shall serve as secretary to the board, and shall be the administrative officer of the retirement system.  By order of these rules and as required of section 2-403 (b) of this ordinance, the Clerk shall conduct an election of trustees each May.  Elections will be administered in accordance with Attachment A, Procedure For Electing Trustees To The Employees Retirement System Board Of Trustees. 

23. Pursuant to section 2-408 (d), of the City of Owosso Retirement System Ordinance the Board shall appoint an actuary who shall be the technical advisor to the board on matters regarding the operation of the retirement system.  By order of these rules the Board shall review and appoint an actuary annually at its organizational meeting each year.

24. Pursuant to Section 2-409, the board shall from time to time adopt such mortality, service, and other tables of experience, and a rate or rates of regular interest, as are necessary to maintain the operation of the retirement system on an actuarial basis.  By order of these rules and as recommended by generally accepted practice, an experience review of assumptions and methods used in the actuarial valuations should be accomplished by the actuary every five to ten years, as ordered by this board.  (Editor’s Note:  Date of last experience review 2004)

25. Pursuant to section 2-408 (e), of the City of Owosso Retirement System Ordinance, the Board shall appoint a medical director to hold office at the pleasure of the Board.  By order of these rules the Board shall review and appoint a medical director annually at its organizational meeting each year.

26. The Board will refer to and follow by Roberts Rules of Order when not in conflict with the preceding rules of procedure.

ATTACHMENT A

Procedure for Electing Trustees to the

Employees Retirement System Board of Trustees

As required by City Code Section 2-403 (b), trustee elections are held each year in May as follows: 

Ø      The City Clerk notifies the appropriate current members (i.e. Police members for Police Representative) of the System in April of each year of the vacancies and the availability of nominating petitions.

Ø      Nominating petitions are signed by ten (10) employees who are appropriate current members of the System and filed with the City Clerk.

Ø      Upon receipt of the nominating petitions by the City Clerk, an election is scheduled during the month of May.

Ø      Ballots are distributed to all appropriate current members of the System.  This is a secret ballot and is placed in a sealed secrecy envelope and signed by the member.  The ballots are placed in a locked ballot box in the City Clerk’s office.

Ø      At the close of the voting period, the ballots are removed from the locked ballot box by the City Clerk in the presence of two (2) other current members of the System.  The three (3) persons act as the counting board for the election. 

Ø      The candidate who receives the highest number of votes is awarded the trustee position.

Motion supported by Trustee Treadway and concurred in by unanimous vote.

CONSIDERATION OF ORDINANCE AMENDMENT

     (Tabled from 09-16-04 meeting)

Trustee Kukulis introduced proposed language to be presented to the City Council for consideration of an ordinance amendment.

Trustee Davis left the meeting at 9 a.m.

Stanley Jelinek, employee and former Trustee, commented in support of the proposal. 

There was general Board discussion regarding the proposed language.

Motion by Trustee Kukulis to forward to the City Council for their consideration the Board’s recommendation for changes to Sections 2-403 and 2-404 of Chapter 2 of the City Code as follows:

Sec. 2-403. Board of trustees.

            (a)        There is hereby created a board of trustees in whom is vested the general administration, management, and responsibility for the proper operation of the retirement system and for making effective the provisions of this article. The board shall consist of seven (7) trustees as follows:

            (1)        The mayor;

            (2)        A councilman who is not eligible to participate in the retirement system as a member or retirant;

            (3)        A citizen who has the qualifications required by the charter for holding an elective city office and who is not eligible to participate in the retirement system as a member or retirant, to be appointed by the council;

            (4)        A policeman member to be chosen by the policemen members;

            (5)        A fireman member to be chosen by the firemen members, and

            (6)        Two (2) general city members:  One (1) general city member to be chosen by the non-unionized general city members and one (1) general city member to be chosen by the unionized general city members.

            (b)        The choosing of the trustees provided for in paragraphs (4), (5), and (6), above, shall be held in the month of May in each year under such rules and regulations as the board shall, from time to time, adopt.

Sec. 2-404. Trustees' terms of office--Oath.

The regular term of office of the trustees provided for in section 2-403 (a) sub-paragraphs  (3), (4), (5), and (6) shall be for four years. The term of office shall expire at the end of each four-year period subsequent to July 1, 1965, for the police department trustee; July 1, 1966, for a general city employee trustee; July 1, 1967, for the fire department trustee; and July 1, 1968 for the second general city employee trustee. The non-employee trustee shall serve at the pleasure of the council. Each trustee shall, within ten days after he has been appointed or chosen, as the case may be, take the oath of office which shall be administered by the clerk.

Motion supported by Trustee Treadway and concurred in by unanimous vote.

ADJOURNMENT

Motion by Trustee Mitchell to adjourn the meeting at 9:05 a.m.  Motion supported by Trustee Farrell and concurred in by unanimous vote.

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                                                            Gail L. Schultz, Owosso City Clerk