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CITY OF SEWARD, ALASKA
RESOLUTION 2014-006
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
SEWARD COMMUNITY HEALTH CENTER EMPLOYEES 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 nine times since the
original agreement was approved, for the purpose of including or excluding specific classes of
employees from participation in PERS; and
WHEREAS, the City of Seward adopted Ordinance 2013-013 on December 16, 2013,
agreeing to become the employer of record for employees of the newly formed Seward Community
Health Center for a limited period of time and under the specific condition that those employees not
become members of the Public Employees Retirement System. There are currently no employees of
the Seward Community Health Center, but future such employees will be subject to the personnel
policies and procedures of the stand-alone 501(c)(3)entity,Seward Community Health Center; and
WHEREAS, an amendment to the PERS Agreement requires a Resolution by Council.
requesting specific modifications to the Agreement, and this Resolution represents the tenth
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 employees of the
Seward Community Health Center from participation in the Public Employees'Retirement System.
Section 2. The City Manager of the City of Seward is authorized and directed to take any
and all steps necessary to execute Participation Agreement Amendment No. 10 between the City of
Seward and the State of Alaska, Department of Administration.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13111
day of January, 2014.
CITY OF SEWARD, ALASKA
RESOLUTION 2014-006
THE CITY OF SEWARD, ALASKA
can Bardarson, Mayor
AYES: Keil, Terry, Squires, Butts, Bardarson
NOES: None
ABSENT: Casagranda, Shafer
ABSTAIN: None
ATTEST:
J
J a hanna Kinney MC
C.ty Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT %c'cstlt•
Meeting Date: January 13, 2014
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From: James Hunt, City Manager
Agenda Item: Amendment No. 10 to PERS Participation Agreement
BACKGROUND & JUSTIFICATION:
The City of Seward has been a participant in the public employee's retirement system (PERS)
managed by the State of Alaska, since January 1, 1979, and the City's participation in PERS is
governed by the Participation Agreement ("Agreement"). This agreement has been previously
amended nine times for the purpose of including or excluding specific classes of employees from
participation in PERS.
The City of Seward adopted Ordinance 2013-013 on December 16, 2013, agreeing to become the
employer of record for employees of the newly formed Seward Community Health Center
("SCHC") for a limited period of time and under the specific condition that employees of SCHC
not be eligible to participate in PERS. Therefore, the PERS Agreement must be amended to
explicitly exclude employees of the SCHC from participation. This will be the tenth amendment
to the Agreement.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan(document source here): X
2. Strategic Plan(document source here): X
3. Other(list): X
FISCAL NOTE:
There will be no cost to the City of Seward associated with excluding the employees of the
Seward Community Health Center from PERS. However, there are expected to be cost savings
to the SCHC from not having to contribute 22% of covered payroll toward the public employee's
retirement system. The SCHC will likely provide retirement benefits to some of its employees,
and the costs are expected to be significantly lower than 22% of covered payroll.
Approved by Finance Department jef 143,14..cia-rf?
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2014- amending the Participation Agreement with the Public
Employees Retirement System, to exclude Seward Community Health Center Employees from
participation.