BOROUGH OF FOUNTAIN HILL COUNCIL MEETING MINUTES  June 20, 2018 6:301 P.M.  Council members present were: Mr. Rapp, Ms. Jordan, Mr. Blatt, Ms. Halleman, Mr. Atkinson, and Mr. Trabel. Also in attendance were Mayor Gifford, Anthony Branco (Executive Administrator), Cordula Voges (Finance Officer), Chief Bachert, ai representative oft the  Bethlehem Press, and guests.  Council President Rapp called the meeting to order and asked for everyone to rise for the Pledge SPECIAL DISCUSSION - Pension Plans Non-Uniform Employees - Defined Contribution VS. Ini its review of an mployer-sponsored retirement benefit plan, the Finance Committee members have weighed the both the Borough' 's intent to assist employees in preparing for retirement and compensate them for their years inj public service and its need to be consistent with the available resources. To avoid the Borough bearing most oft the risk that the current Defined Benefit Plan carries, the Finance Committee members reviewed the characteristics ofa Cash Balance and a Under a CASH BALANCE PLAN, the cash balance account is funded with mandatory employer contributions, mandatory employee contributions, optional employee contributions and any interest earned thereon. The interest credited to an employee's cash balance account is generally less volatile than the interest earned in Defined Contribution plans. When an employee retires, the cash balance account gets converted to a monthly annuity payable for the rest of that In a DEFINED CONTRIBUTION PLAN, all employees have their own accounts set up within the plan to which contributions - from both employer and employees - are recorded. Typically, the employer selects a plan trustee - such as Nationwide or possibly PSAB. And in turn, the plan trustee offers investment options to the employees. The account balances at retirement depend on ac combination ofinvestment rate ofr return, contribution levels and the period ofinvestment. The employer obligations are fulfilled annually as contributions are made; there will not be an  to the Flag.  Cash Balance Plans  Defined Contribution Plan.  member's life.  unfunded liability.  Borough of Fountain Hill Council Meeting Minutes 6/20/2018    After discussion, Council decided on a Cash Balance Plan including the criteria outlined in the  table below:  Eligibility Full-time Employees subject/not subjecttoa  collective bargaining agreement scheduled to perform at least 40 hours of service/week and having completed the 6-month probationary a) Employer contribution 5 %ofc compensation b) Employee Contribution 3.5% of Compensation  period.  Matching  Vesting Schedule 100 % vested after 5y years of vesting service Distribution Option a) Life Annuity at retirement  b) Lump-sum withdrawal subject to Plan & IRS c)P Periodical annuity withdrawal (not life)  provisions 2nd  Motion X  Yes x x x X x X  No  Abstain Absent  Philip Trabel Leo. Atkinson Hellen Halleman Annamarie Jordan Norman Blatt Doug Trotter Larry Rapp Mayor Gifford  X  X  PRESENTATIONS)  Mr. Branco reported that Mr. Smaley from Republic Services, the contractor providing the recyclable collection in the Borough, asked to raise remuneration from currently $67.54/ton by $1.47/month per resident contrary to the recently renewed contractual agreement. Mr. Branco informed Council that he had denied the request and Council confirmed his decision. PRIVILEGE OF THE FLOOR - Discussion on Agenda Items none-  Borough of Fountain Hill Council Meeting Minutes 6/20/2018    ORDINANCES Second Reading  ORDINANCE NO. 842  AN ORDINANCE OF FOUNTAIN HILL BOROUGH, LEHIGH COUNTY, COMMONWEALTH OF PENNSYLVANIA, ELECTINGTO. AMEND ITS MUNICIPAL PENSION PLAN ADMINISTERED BY THE PENNSYLVANIA MUNICIPAL RETIREMENT SYSTEM PURSUANT7 TO ARTICLE IV OF THE PENNSYLVANIA MUNICIPAL RETIREMENT LAW; AGREEINGTOBE BOUND BY ALL PROVISIONS OF THE PENNSYLVANIA MUNICIPAL RETIREMENT LAW. AS AMENDED AND AS APPLICABLE TO MEMBER MUNICIPALITIES. IT IS HEREBY ORDAINED BY FOUNTAIN HILL  BOROUGH, LEHIGH COUNTY, AS FOLLOWS:  SECTIONI. Fountain Hill Borough (the Borough), having established aj pension plan administered by the Pennsylvania Municipal Retirement System (the System), hereby elects to amend its Municipal Pension Plan administered by the System in accordance with Article IV of the Pennsylvania Municipal Retirement Law, 53 P.S. $881.101 et seq. (Retirement Law), and does hereby agree to be bound by all the requirements and provisions oft the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act, 53 P.S. $895.101 et seq., and to assume all obligations, financial and otherwise, placed upon member municipalities.  SECTION II. As part oft this Ordinance, Borough agrees that the System shall administer and provide the benefits set forth in the amended Municipal Pension Plan Contract entered into between the Pennsylvania Municipal Retirement Board and Borough effective June 1,2018 (the Contract). SECTION III. The Borough acknowledges that by passage and adoption oft this Ordinance, the Borough officially accepts the Contract and the financial obligations resulting from the  administration of the Contract.  SECTION IV. Payment for any obligation established by the adoption oft this Ordinance and the Contract shall be made by the Borough in accordance with the Retirement Law and the Municipal Pension Plan Funding Standard and Recovery Act. The Borough hereby assumes all liability for any  unfundedness created due to the benefit structure set forthi in the Contract.  SECTION V. The Borough intends this Ordinance to be the complete authorization oft the Contract and it shall become effective and specifically repeal any ordinance inconsistent with this Ordinance either immediately or on June 1, 2018, which is the effective date ofthe Contract,  whichever is later.  Borough of Fountain Hill Council Meeting Minutes 6/20/2018    SECTION VI. A duly certified copy of this Ordinance and an executed Contract shall be DULY ENACTED AND ORDAINED this 20th day of June, 2018, by the Council of the  filed with the System.  Borough of Fountain Hill, Lehigh County, Pennsylvania.  Motion  2nd x  Yes x X X X X X  No  Abstain Absent  Philip Trabel Leo. Atkinson Hellen Halleman Annamarie Jordan Norman Blatt Doug Trotter Larry Rapp Mayor Gifford  X  RESOLUTIONS -1 none- MOTIONS  Request ofTom Redding for use ofthe Stanley. Avenue Playground on August 4, 2018 from 9. AM to7P PM for the Annual Stickball Classic (all) Documents received) was granted.  Motion  2nd x  Yes x X X X X X  No  Abstain Absent  Philip Trabel Leo Atkinson Hellen Halleman Annamarie Jordan Norman Blatt Doug Trotter Larry Rapp Mayor Gifford OLD BUSINESS June 9, 2018.  x  X  Ms. Jordan commented everybody who had helped and participated in the Community Day on  Borough of Fountain Hill Council Meeting Minutes 6/20/2018    DISCUSSION ITEMS  Lechauweki Springs Park Phase 2 - Pond Dredging, Lining, & Gazebo Repairs  Mr. Branco asked Council to make ai motion to reject the 2nd set ofbids for the Phase 2. The scope  ofPhase 2 will be changed and announced for re-bidding.  Motion  2nd x  Yes x x X X x X  No  Abstain Absent  Philip Trabel Leo. Atkinson Hellen Halleman Annamarie Jordan Norman Blatt Doug Trotter Larry Rapp Mayor Gifford  x  COUNCIL ACTION  Mayor Gifford asked Council to accept Mr. Jose Vazquez tol be promoted from part-time to full- time employment as a Police Officer following the Police Chief's recommendation.  Motion  2nd x  Yes x X X x x X  No  Abstain Absent  Philip Trabel Leo Atkinson Hellen Halleman Annamarie Jordan Norman Blatt Doug' Trotter Larry Rapp Mayor Gifford  X  X  Mayor Gifford performed Mr. Vazquez'ss swearing-in ceremony.  PRIVILEGE OF THE FLOOR - Discussion on Non Agenda Items none-  EXECUTIVE SESSION - as needed  Borough of Fountain Hill Council Meeting Minutes 6/20/2018    ADJOURNMENT  Mr. Atkinson made the motion to adjourn at 7:30 PM. Mr. Trabel seconded the motion and it  was approved unanimously.  Respectfully Submitted,  Cordula Voges, Finance  BOROUGH OF FOUNTAIN HILL LEHIGH COUNTY, PENNSYLVANIA Lawrence Rapp - President of Council  By:  ATTEST: By:  Anthony Branco, Executive Administrator  Next Ordinance - 843 Next Resolution- -2018-30  Borough of Fountain Hill Council Meeting Minutes 6/20/2018