2009-08-10_Minutes--Procès-verbalAugust 10, 2009
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Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
Monday, August 10, 2009, 5:00 p.m.
8th Floor Boardroom, City Hall
Present:
Mayor Court, Deputy Mayor Chase and Councillors Court, Farren, Mott, Snook.
- and -
F. Beaulieu, City Solicitor; A. Beckett, Deputy City Manager; C. Graham, Comptroller; J.
Taylor, Assistant Common Clerk and K. Tibbits, Administrative Assistant.
1. Meetina Called To Order
The Mayor called the Committee of the Whole meeting to order.
2. Discussion of Confidential Matters
On motion of Councillor Mott
Seconded by Councillor Snook
RESOLVED that the public be excluded from the meeting for the duration
of the discussion on the following matter(s): 1.1 Employment Matter 10.2(4)0)
Question being taken, the motion was carried.
Assistant Common Clerk
Record Pursuant to Section 10.2(4)
The meeting of the Committee of the Whole of Common Council held on August 10,
2009 was closed to the public pursuant to Section 10.2(4) of the Municipalities Act during the
Committee's discussion of the following matter(s): 1.1 Employment Matter 10.2(4)0);
Assistant Common Clerk
August 10, 2009
54-2009
Minutes of the Portion of the Committee of the Whole Meeting Open to the Public
Monday, August 10, 2009, 6:00 p.m.
Council Chamber, City Hall
Present:
Mayor Court, Deputy Mayor Chase and Councillors Court, Farren, Mott, Snook.
- and -
F. Beaulieu, City Solicitor; A. Beckett, Deputy City Manager; C. Graham, Comptroller; J.
Taylor, Assistant Common Clerk and K. Tibbits, Administrative Assistant.
1. Meetina Called To Order
The Mayor called the Committee of the Whole meeting to order.
Councillor Snook offered the opening prayer.
1.1 Morneau Sobeco Presentation: Financial Advisory Services to the Employee
Pension Plan (Meeting #5)
Referring to a submitted report, Mr. Mel Bartlett stated that the objective for this meeting was to
provide direction in order to move forward in the process of addressing funding issues related to
the pension plan.
Mr. Bartlett advised Council that it would be beneficial to establish a target with respect to the
maximum level of financial contribution towards the city's pension plan with which Council is
comfortable. He noted that the goal of the consultative process is for Morneau Sobeco to work
within this framework and to provide recommendations to meet the objective.
Mr. Barlett stated that it would not be prudent to depend on investment gains alone to make up
for the shortfall in the unfunded liability. He indicated that under the current terms of the plan,
the City of Saint John holds the final responsibility in funding the pension plan. He advised
against making significant changes to the plan in an effort to avoid benefit cliffs which would
entice plan members to retire early. He stated that if members were to retire earlier than
anticipated due to significant plan changes, then this would significantly increase the unfunded
liability of the plan in the short-term.
Mr. Bartlett indicated that changes to the pension plan would require various levels of approval
and that the suspension of indexing for retirees would likely be a significant issue. He stated
that this has not been done unilaterally in the past by the plan sponsor but it has been done in
consultation with employees. He suggested that indexing may be a component of the plan that
could be modified to provide better indexing to retirees in times of high inflation and during
periods of modest inflation, retirees would receive less inflation protection.
Mr. Bartlett stated that it would be difficult to identity a method that would not cost the City of
Saint John less than 20% of its payroll in dealing with the unfunded liability issue.
On motion of Councillor Court
August 10, 2009
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Seconded by Councillor Snook
RESOLVED that the Commissioner of Finance be directed to provide a report to Council
with respect to the specific amount of funding that the City could afford to contribute towards the
pension plan; and further, that this report be provided to Council prior to the next meeting with
Morneau Sobeco.
It was noted that Mr. Yeomans had indicated at a previous meeting that he was not able to
make a recommendation to Council on this matter until such time that the funding commitment
to the City of Saint John was announced by the Province and the various City department's
budget projections were submitted.
On motion of Councillor Court
Seconded by Councillor Snook
RESOLVED that 16% of payroll be the starting point for the analysis by Morneau
Sobeco with respect to the funding amount that the City is able to contribute towards the
pension plan, and further, that the Commissioner of Finance be directed to provide a report to
Council with respect to the impact that this amount of funding would have on the City's finances.
Question being taken, the motion was carried.
Mr. Bartlett indicated that in order to perform more detailed analysis to Council that Morneau
Sobeco requires information from the Pension Board of Trustees which includes updated asset
information as at June 30, 2009, valuation data, and a Governance report which was presented
to Council in an annual report.
On motion of Councillor Farren
Seconded by Deputy Mayor Chase
RESOLVED that Morneau Sobeco provide a letter detailing the requested information to
the Common Clerk and that this information be forwarded to the Pension Board of Trustees
seeking its consent to release the requested information to Morneau Sobeco.
Question being taken, the motion was carried.
On motion of Councillor Court
Seconded by Councillor Snook
RESOLVED that the meeting scheduled with Morneau Sobeco on August 241h, 2009 be
rescheduled to allow sufficient time for the Commissioner of Finance to prepare the requested
report and to allow the Common Clerk to contact the Pension Board of Trustees with Morneau
Sobeco's request for information.
Question being taken, the motion was carried.
The Common Clerk's office was directed to poll members of the Pension Board asking for its
permission to provide the information to Morneau Sobeco as requested.
Discussion ensued regarding whether the meeting with the stakeholders should be held in an
open or closed meeting of Council. It was noted that a motion was made at a previous meeting
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recommending that the consultation process begin in an open meeting of Council and, if
appropriate, would move into closed session. It was noted that this question would be brought
before the moderator to determine the best way to proceed.
2. Adiournment
The Mayor declared the meeting adjourned at 7:45 p.m.
Assistant Common Clerk