HomeMy WebLinkAboutRes2006-040
I
I
I
Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE PARTICIPATION AGREEMENT WITH THE
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS), TO EXCLUDE
SEASONAL EMPLOYEES AND THE CHIEF OF POLICE FROM
PARTICIPATION
WHEREAS, the City of Seward ("City") and the State of Alaska entered into an agreement
("Agreement") relating to participation by the City in the Public Employees' Retirement System of
Alaska ("PERS"), beginning January 1,1979; and
WHEREAS, the Seward City Council has amended the Agreement eight times since the
original agreement was approved, for the purpose of including or excluding specific classes of
employees from participation in PERS; and
WHEREAS, PERS audits have resulted in recommendations that the City specifically amend
the Agreement with PERS to exclude from participation the City's seasonal employees as defined in
Seward City Code 3.01.035(R), in order to clarify that the City has not and does not cover seasonal
employees under the PERS program; and
WHEREAS, the City further desires to exclude the position of Chief of Police from
participation in PERS, based on the sunset provision of HB242 passed by the Alaska State
Legislature in 2005; and
WHEREAS, an amendment to the PERS Agreement requires a Resolution by Council,
requesting specific modifications to the Agreement, and this Amendment represents the ninth
Amendment to the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council of the City of Seward (182) hereby excludes seasonal
employees (as defined by SCC 3.01.035(R)) from participation in the Public Employees' Retirement
System.
Section 2. The City Council of the City of Seward (182) hereby excludes the position of
Chief of Police from participation in the Public Employees' Retirement System.
Section 3. The city manager ofthe City of Seward is authorized and directed to take any and
all steps necessary to execute Participation Agreement Amendment No. 9 between the City of
Seward, and the State of Alaska, Department of Administration.
CITY OF SEWARD, ALASKA
RESOLUTION 2006-40
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th
day of April, 2006.
AYES:
NOES:
ABSENT:
ABSTAIN:
THE CITY OF SEWARD, ALASKA
~~ Ajw:c~ ~
Vanta Shafer, Mayor I
Dunham, Valdatta, Lorenz, Schafer, Thomas, Bardarson, Shafer
None
None
None
ATTEST:
. , Joh4 VI na [), I/trh/d-t.
City Clerk I Ach ~
~~,utl",,,
,'~.Q~<S't~~".#'"
,ttt ~ ........ p~ ;...
,:; (.j P'" i\PO";~', ~ ...
.... ,.' .""l)o,.'.,,=>~
1IItt. ~...
~.~ ,~.-
:: --.... '-of .. ..
-.' SE ...
:: i\T =.=
_ ~ ~"1..l.I:...
':~ --:::
~ d\'.~ .'.....
'# :;..:,.!=,~. ^,'l:," .... .~t
'" .-....',... 1 ~"., '"'To
~1'1'"<: .....J.... c:":""'~?
"::1, OF AV'-:,,'
"":& 1 Hi''''
I
I
I
COUNCIL AGENDA STATEMENT
Meeting Date:
April 24, 2006
Clark Corbridge, City Manager O?.vl 4-IQ - Of,
Kristin Erchinger, Finance Director iflIv
Through:
From:
Subject:
Elimination of PERS coverage for seasonal
employees and the Chief of Police position
BACKGROUND & JUSTIFICA nON
The City of Seward entered into an agreement with the State of Alaska to cover eligible municipal
employees in the Public Employees Retirement System, beginning January 1, 1979. Since that time,
the Agreement has been amended nine times, to include or exclude specific classes of participants.
The administration proposes to exclude two classes of employees from PERS coverage, seasonal
employees and the position of Chief of Police. The City has never covered seasonal employees
under PERS, but because the City's definition of seasonal employees is slightly different than the
State's definition, we propose an amendment to explicitly state that seasonal employees as defined
by Seward City Code, are explicitly excluded from coverage under PERS.
We further recommend excluding the position of Chief of Police from PERS. The current Chief was
hired under the State's rehired retiree program, approved in 2001 by House Bill 242 ("HB242"). The
provisions of HB242 are slated to sunset at the end of 2006. HB242 authorized an employment
waiver for PERS retirees to re-enter the workforce without accruing additional PERS benefits,
resulting in a cost savings to the City of not having to pay PERS contributions for this position. By
excluding this position from participation in PERS, the City will not pay PERS contributions for this
position, and the Chief will continue his employment unaffected by the sunset provision ofHB242.
CONSISTENCY CHECKLIST:
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable
Yes
No
--.X
FISCAL NOTE:
This resolution will result in a savings to the Cityof$11,700 from the 2006 Budget. The City does
not currently pay PERS contributions on behalf of seasonal employees or the Chief of Police
position, However, if the City does not exclude the Chief of Police position from coverage, the City
will pay PERS contributions on beh f of this position, of approximately $11,700 per year.
Approved by Finance Department -'-
RECOMMENDATION:
Council approve Resolution 2006-~excluding seasonal employees and the Chief of Police from
participation in the Public Employees Retirement System, and execute PERS Amendment 9.
l' ./'!
.1.\",1
- ,