12/11/2012 Minutes CITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
December 11, 2012
Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand
Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on
December 11, 2012. Notice of the meeting was given in the Grand Island Independent on
December 5, 2012.
Mayor Jay Vavricek called the meeting to order at 7:00 p.m. The following Councilmembers
were present: Vaughn Minton, Mike Paulick, John Gericke, Peg Gilbert, Mitch Nickerson, Julie
Hehnke, Chuck Haase, and Bob Niemann. Councilmembers Scott Dugan and Linna Dee
Donaldson were absent. The following City Officials were present: City Administrator Mary Lou
Brown, City Clerk RaNae Edwards, City Attorney Robert Sivick, Interim Public Works Director
Terry Brown and Finance Director Jaye Monter.
INVOCATION was given by Community Youth Council member Miranda Wieczorek followed
by the PLEDGE OF ALLEGIANCE.
SPECIAL ITEMS:
Update on Metropolitan Planning Organization (MPO). Regional Planning Director Chad Nabity
introduced Joe Warner, Division Administrator and Randy Peters, Director from the Nebraska
Department of Roads who congratulated the City on becoming an MPO and commented on the
opportunities of reaching an MPO designation.
Mr. Nabity introduced Brad Zumwalt, Highway Planning Manager with the Nebraska
Department of Roads who gave a PowerPoint presentation to provide guidance regarding what
needed to be completed and a timeframe.
Explained was that an MPO was "The forum for cooperative transportation decision making for
the metropolitan planning area". Five core functions of an MPO were: 1) establish a setting; 2)
evaluate alternatives; 3) maintain a Long Range Transportation Plan (LRTP); 4) develop a
Transportation Improvement Program(TIP); and 5) involve the public.
He stated that an MPO was required to have a decision-making "policy board", but beyond that,
there was no required structure for an MPO. Most MPOs were made up of a Policy Board,
Technical Advisory Committee and MPO staff.
Mentioned was that small MPOs had an average policy board of 9 members. 81% had County
Commissioners represented and 65% included State DOTs, FHWA/FTA which were usually
non-voting members. Small MPOs had an average of 2.9 employees (1 employee per 48,000
people).
Explained were the following Federal and State Planning Programs/Documents:
Page 2,City Council Study Session,December 11,2012
Unified Planning Work Program (UPWP)—developed annually by MPO in cooperation with the
state and transit operators. The UPWP documents planning activities, discusses planning
priorities facing the area, and describes all metropolitan transportation planning activities.
Long Range Transportation Plan (LRTP) — 20+ years planning horizon — predicts travel growth
based on future land use and plans for future transportation programs and projects based upon
the forecasts and is completed/updated every 5 years. Fiscally constrained, can only include
projects where there is a reasonable chance of funding and other needed projects can be listed in
the plan as unfunded ("illustrative").
Transportation Improvement Program (TIP) — The TIP should include only projects which are
consistent with the long-range transportation plan. The TIP must include all regionally
significant transportation projects which involve FHWA or FTA funding or approval. The TIP
must be developed with public involvement, and the TIP must be approved by the MPO and the
Governor.
Public Participation Plan — Outlines MPO goals, activities and process pertaining to the public
outreach activities. These include public comment periods, outreach efforts and advertising
methods and time periods for new documents or amendments.
MPO Planning Funding—FHWA Statewide Planning and Research (SPR) (Start-up) funding this
year ($50,000 Federal). Estimated FY 2014 federal funding available for Grand Island MPO
was: $84,000 for standard planning activities from FHWA PL; and an additional $19,200 in FTA
Section 5303 planning funds. These funds require a 20%match.
Planning funds are spent on eligible planning activities as defined by 23CFR 420 and 450.
Typical tasks were: traffic volume counts, street system changes, transit system data, mapping,
travel time studies, parking inventory, bicycle & pedestrian facilities inventory, travel model
updates, and staff time to prepare the required documents mentioned earlier.
Presented were the following first year tasks:
• Designate a recipient for FTA Section 5307 Funds (approval of eligible public agency by
the Governor)by October 2012
• Agreement for SPR startup funds (Council and NDOR)
• Set up MPO Organizational Structure (establish MPO Housing/lead agency/support staff
and foiin policy board) (Approved by Council)
• Determine Metropolitan Planning Area (Approved by Council)
• Draft articles of agreement between GI and State of NE (Approved by Council)
• Secure resolutions of adoption from local government (Approved by Council)
• Submit articles of agreement, map, and letter requesting designation to Governor's office
after February Council Meeting and submit to Governor no later than March 4
• Begin UPWP Development in February 2013 (Staff with NDOR and FHWA)
• New MPO designated by the Governor by no later than March 26, 2013
• Policy board establishes TAC. After Creation by Governor
• Draft bylaws (Done by MPO Policy Board)
Page 3,City Council Study Session,December 11,2012
• Submit UPWP to State (Done by MPO Policy Board)
• Write Job Descriptions, Advertise and Hire MPO Staff (City of GI with MPO Policy
Board and impacted Department Director)
• Develop a plan, Method and Methodology to Transition from Rural Transportation
Services to Urban Transportation Services (TBD)
Joni Roeseler, Planning/Program Development Team Leader with the Federal Transit
Administration commented on working with Grand Island with regards to the Public
Transportation for the MPO.
Discussion was held regarding the 20% match. Staff time would count towards that match.
Federal funds for the first 6 months of FY 2013/2014 were in the amount of$328,000 for Grand
Island. Representation from Merrick County was mentioned. Mr. Nabity stated one of the most
important parts of the MPO was public participation.
Mr. Zumwalt mentioned planning funds were for administration activities to start the MPO.
Federal dollars would have a 20% match for projects, many of which were in the current One &
Six Year Plan. Ms. Roeseler explained that transit would involve public transportation such as
buses, trains, etc.
Comments were made regarding a nine member policy board. Mr. Nabity stated he didn't
anticipate the need to hire staff until the FY 2013/2014 budget. Mentioned was participation of
the Railroads with emphasis on freight. Recommendations would be brought before Council for
approval to move the MPO forward. Mr. Nabity stated the next step would be a Study Session on
January 15, 2013 to study the map and the policy board.
Council recessed at 8:20 p.m. and reconvened at 8:30 p.m.
Pre-84 Public Safety Pension Plan Discussion: Finance Director Jaye Monter reported that the
Nebraska State Legislature changed the public safety defined benefit retirement plan to a defined
contribution retirement plan effective January 1, 1984. State statutes outline for the City how to
fund public safety pension benefits for employees who retire today that were employed with the
City of Grand Island prior to January 1, 1984. Currently there were eight full-time employees (7
police, 1 fire) that were employed prior to January 1, 1984. A PowerPoint presentation was
given.
The Goals of the Study Session were: Council understanding of prior retiree payments;
discussion of Straight Life and Joint Life Annuity calculations to determine lump sum payment
option; budget timeline/funding options; and to determine financial needs of the Police and Fire
Reserve Funds.
The following terms were defined: Annuity — contract issued by a life insurance company in
order to provide periodic retirement benefits; Straight/Single Life Annuity — annuity paid to an
individual over their lifetime; and Joint/J&S (Joint & Survivor) Life Annuity — annuity would
transfer annuity income to a spouse in the event of the death of the annuity buyer.
Page 4,City Council Study Session,December 11,2012
Reviewed was the history of the Lump Sum payments to retiring Police Officers and Firefighters
which changed from a straight life annuity to joint life annuity in 2005.
Pension Plans:
• Defined Benefit Plans — type of pension plan in which employer promises a specified
monthly benefit on retirement based on the employee's earnings history, tenure of service
and age.
• Defined Contribution — type of pension plan in which an employee's benefits during
retirement depend on the contributions made to and the investment performance of the
assets in his or her account.
Explained were the three trust funds the city maintains:
• 800 Fund — Police and Fire Pension Fund — accounts for direct pension payments to
personnel who retired prior to 1984 under a defined benefit plan
• 805 Fund — Police Reserve Fund — accounts for administration of the pre-84 police
officers pension benefits under a defined benefit plan
• 810 Fund — Fire Reserve Fund — accounts for administration of the pre-84 firefighters
pension benefits under a defined benefit plan
Gregg Rueschhoff with Milliman, Inc. presented the Summary of Actuarial Projections of
Liability to the City for the remaining 7 Police Officers and 1 Firefighter. Discussion was held
regarding the volatility of the market. Mr. Rueschhoff stated the actuarial completed by his firm
in January 2011 was figured on the Straight Life Annuity.
Reviewed were the Trust Fund Cash Balances as of September 30, 2012.
Councilmember Haase explained his reasons for bringing this issue forward due to a large
payment to a Police Officer retiree at the November 13, 2012 meeting: to provide a fair pension
to the employee and fairness to the tax payer; straight life vs. joint life annuity; Pension
Committee actions; paying retiree claims before Council approval; and the request to pull the
claim from the November 13, 2012 meeting. Discussion was held regarding remedying the
claim.
Mentioned were the following future Council action decisions:
• Straight Life vs. Joint Life Annuities
• Review of Most Recent Police Claim
• Use of Public Safety Trust Funds
Human Resources Director Brenda Sutherland commented on an Administrative decision
regarding the change in Single Life Annuity to Joint Life Annuity for Police Officers in 2004.
The action was not brought forward to Council for approval.
Terry Galloway with Almquist Maltzahn Galloway & Luth CPAs answered questions regarding
the audits over the years relative to the retirement funds.
Page 5,City Council Study Session,December 11,2012
Ms. Monter gave a background of the Pension Committee and mentioned Public Safety Trust
Funds. Comments were made by several Councilmembers regarding going forward with a
Straight Life Annuity. City Attorney Robert Sivick commented on State Statutes.
Greg Anderson, Trust Officer with Wells Fargo commented on the employees' retirement
accounts.
A lengthy discussion was held regarding straight life annuity versus joint life annuity.
ADJOURNMENT: The meeting was adjourned at 10:25 p.m.
Qon t�
RaNae Edwards
City Clerk