2009-05-27_Minutes--Procès-verbal
May 27, 2009
32-2009
Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
May 27, 2009, 4:00 p.m.
Council Chamber City Hall.
Present:
Mayor Court,
Deputy Mayor Chase and Councillors Court, Farren, Higgins, Killen, McGuire, Mott,
Snook, Sullivan, and Titus
- and -
T. Totten, City Manager; P. Woods, Deputy City Manager; A. Beckett, Deputy City
Manager of Programs and Priorities; J. Nugent, City Solicitor; C. Graham, Comptroller; J.
Taylor, Assistant Common Clerk and K. Tibbits, Administrative Assistant.
1. Meeting Called To Order
The Mayor called the Committee of The Whole meeting to order.
1.1 Morneau Sobeco Presentation: Financial Advisory Services to Common Council
Re: Employee Pension Plan
Referring to a submitted presentation, Mel Bartlett of Morneau Sobeco stated that the
goal of the meeting was to ensure a common understanding of the basic facts facing the
plan today and to determine the tentative direction that Council would like to undertake,
as well as to establish the format of meetings on a go forward basis. He stated that
Council holds the ultimate responsibility and ownership for any changes to the Pension
Plan, but noted that it would be necessary to have input from the stakeholders during
this process. He stated that this was in contrast to the view held by Council that the
pension has never been a negotiated item, nor is it intended to become a negotiated
item.
Jeff Penner of Morneau Sobeco addressed members of Council and stated that he
wanted to ensure an understanding of Morneau Sobeco’s role, which he indicated is to
act as facilitators in the process and to offer suggestions and guidance; however, he
noted that ultimately the final outcome is the responsibility of Council.
Mr. Penner and Mr. Bartlett stated that in order to make sustainable improvements to the
pension plan, a combination of changes would need to be considered, which include:
contributions made to the plan; benefits paid to plan members and investment returns.
(Councillor McGuire entered the meeting.)
(Councillor Sullivan entered the meeting.)
On motion of Councillor McGuire
Seconded by Councillor Snook
RESOLVED that Council limit its discussions to the material being
presented by Morneau Sobeco.
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Councillors Sullivan and Titus stated that if questions are not addressed, it gives the
perception of non-transparency.
Question being taken, the motion was carried with Councillors Sullivan and Titus voting
nay.
Mr. Penner and Mr. Bartlett informed Council that in their opinion, investment returns,
while possibly showing some short-term improvement, are unlikely to bring the plan back
to a full-funding position and that it is important for Council to accept and recognize this
fact. In addition, they stated that it would be not realistic to think that the funding gap
could be closed by simply increasing employer contributions, noting that a real deficit
solution includes a combination of all three components of the plan.
Council noted that there is a sensitive timeline involved with any changes to the plan,
stating that the plan is subject to a valuation at the end of this year, with a report to be
submitted by September 30, 2010 at the latest.
Mr. Penner and Mr. Bartlett stated that Council will be required to make decisions as a
body, based on financial determinations that need to be undertaken without outside
influence or discussion. They noted that once the final decision with respect to the
pension plan is made and the implementation level has been reached, it would be
beneficial to engage the stakeholders to provide their views on possible ways to reach
this outcome.
On motion of Councillor Snook
Seconded by Councillor McGuire
RESOLVED that decisions will be reached with Council’s
established format, specifically, that a vote is taken and that majority rule.
Question being taken, the motion is carried.
On motion of Councillor McGuire
Seconded by Councillor Court
RESOLVED that the format of the meetings with Morneau Sobeco
will be a formally structured meeting, in an open session of Committee of the Whole,
with informal discussion.
Question being taken, the motion is carried.
Mr. Penner and Mr. Bartlett referred to the presentation provided by the Union groups at
the meeting of April 27, 2009; they noted that while the input given at this meeting was
appreciated, and helpful recommendations were made, none of the proposals offered
any real solutions to the deficit problem, but rather only delayed recognition of the
problem. They noted that the proposals from the City’s unions reduced the cash flow
going into the plan, but did not change the cash flow going out, which does not meet the
criteria outlined in the “Real Deficit Solutions” as previously established.
A point of order was called by Councillor Sullivan regarding a question being posed by
Councillor Court, stating that it did not relate to the process of dealing with the pension
deficit. Mayor Court stated that it would be appropriate for Morneau Sobeco to answer
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Councillor Court’s question as it related to money going into, and subsequently being
paid out of the pension plan.
Mr. Penner and Mr. Bartlett indicated that their goal is to establish policies, procedures
and guidelines to deal with the fact that investments will move up and down
unpredictably and also to provide both the present and future Council with the tools to
deal with these circumstances. They noted the only way to do this is by looking at long-
term solutions and addressing the root of the problem. They stated that this would
include updating benefit and funding policies that would effectively deal with economic
uncertainty.
On motion of Councillor Killen
Seconded by Councillor McGuire
RESOLVED that Council formally adopt the goal of establishing
encompassing policies that, ideally, all stakeholders can endorse, or at least live with.
Question being taken, the motion was carried.
On motion of Councillor Titus
Seconded by Councillor McGuire
RESOLVED that the Common Clerk consult with Morneau Sobeco
on their availability and schedule the next meeting with Common Council.
Question being taken, the motion was carried.
2. Adjournment
The Mayor declared the meeting adjourned at 6:15 p.m.
Common Clerk