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HomeMy WebLinkAbout1982-01-28 Council Packet - Work SessionKenai City Council Work Session January 28, 1982 Social Security Contributions Cost of Living Increase -s.h. .. 1. CITY OF KENAI %Oid da�� 4 4" P.O. BOX M KENAI, ALAEKA "Off VILE►NONE 285 •7d1I NOTICE OF WORK SESSION There will be a work session on January 28, 1982, at 7:00 P.N. at the City Administration Building. Subjects will be: 1. Disposition of City funds budgeted for social security contributions 2. Discussion of cost of living increase for next. fiscal year. P net Whelan, City Clerk Dated: January 22, 1982 1� s CITY OF KENAI 1 . I. O. WX AO NNW, AIASKA 99611 January 27, 1982 TOs Chairman and Members of the Planning and Zoning Commission PROMS Vincent O'Reilly. Mayor f fit The City and the Council need your recommendation on what should be the City's participation in -tire Silver Jubilee Celebration of Alaska Statehood.• The Council has dealt with this subject to-4001e-.. degree over a period of time but now due to a compressed time schedule has turned toward your Commission as.,a.source of recommendation as to what the City should .do. "As an organized Commission, you -may provide the Council the necessary input as to what;'if anything;7,hould be done and how it should be done. If your recommendation is to proceed and the.Council concurs, an Alaska 1984:Task Force would be appointed and the responsibility for cdntinuinq the effort would j be in their hands with`=ongoingimonitoring by Council. The following y �r general thougbts_are;o;0 red for your consideration this evenings 1. What we are looking at is a perceived "want" not a "need." The "want" is identified as a celebration to record our rapid growth since Statehood, what we are, what we offer to the Nation and world, etc. It is not a "need" _4 -- in the sense of Statewide or local transpor- tation, education, public safety functions. r TO: P&Z PROMS Mayor O'Reilly - 2 - Jan. 27, 1982 ii. The City of Kenai and the Kenai area were the focus point of the activity, petroleum dis- covery, which greatly moved Alaska from Territorial to Statehood status. III. Our participation can be of either or both a A) Project - a building or facility or, 8) Program - focus an activity in the year 1984 on the celebration of Statehood. IV. The State has established and appointed a Silver Anniversary Commission to develop an appropriate Statewide program. The Commission received $4,000,000 for planning and organization. Actual funding implementation monies are expected to come from A) additional State appropriations, 8) private company sources, and C) other governmental bodies, foreign, national and domestic. The Silver Jubilee Commission has contracted with a private non-profit group, Alaska 1984, to carry out the planning and organization function. Alaska 1984 has A) sent representa- tives to meet with this or any other designated group and 8) allocated 02,000 to the City of Kenai to fund the travel and organization ex- penses of the local designated group. V. In consideration of any future funding by the State of 1984 projects or programs, such funding should not interfere with City's already developed list of State funding requests but should dovetail as to source, size, timing and type. VI. Personal, media and unofficial public input indicate the concept of Alaska 1984 is not •meeting with universal approval. Such criticisms should be fully weighed and a recommendation made by the Planning 6 Zoning Commission to Council as to whether to participate, if in the affirmative what corrective actions should be recommended to the State Commission and the Alaska 1984 group to meet the criticisms already raised. i 4 T TO: P&Z - 3 - Jan. 27, 1982 FROMs Mayor O'Reilly VII. The Planning & Zoning Commission should also consider the followings A) There is some degree of momentum to the - 1984 effort and there will be pressure to obtain further State funding. We do have a responsibility to obtain a share of such j funding for our citizens if locally desired. B) For several groups of citizens, the old timers and the youth of the community, such celebrations are very unique experiences. C) The Planning & Zoning Commission and the Council must allow time during their meetings for full, ample public input when dealing with this subject. Excuse the length of the memo, the intent is to assist you in an unaccustomed task. I appreciate your effort and ` the Council looks forward to your recommendations. /I Thank you. VORs jw CITY OF KENAI %Od ea W of 4"" P. O. aX SU 901A MASKA 1 ,�..�.4N - IM 9%11 i January 27, 1982 TOs Council, City Manager Brighton FROM: Janet Whelan City Clerk On Jan. 26, 1982 I spoke ,to Kathy, of.Alaska 1984 in Anchorage. Regarding funding for Alaska 1984, she stated they would like to have the City submit a budget for preliminary funding (paosr work, part time help, etc.). Jim Sharp told her•that-the verbal commitment for $2,000 is okay for the City.to work with,`.re°would like a budaet from us. 7 iw i' ---- . -- it --.L AGENDA WORK SESSION OF JANUARY 28, 1982 RES DISPOSITION OF CITY FUNDS BUDGETED FOR SOCIAL SECURITY CONTRIBUTIONS 1. Resolution A - A resolution directing Administration to prepare ordinances to provide for payment to employees of cash equal to the amount which would have been contributed to social Security by the City during the first half of 1982. 2, Ordinance B - An ordinance to provide for payment of funds budgeted for contribution by the City for social security to some supplemental employee benefit program. 3. Election to participate in the State of Alaska Supplemental Employee Benefit Program in lieu of social security. a. Ordinance C - providing for modification of ordinances to participate in the State supplemental benefit program by deducting from employee wages and with matching contributions by the City. b. Resolution D - A resolution requesting that the State accept the City of xenai as a participating employer in the State Supplemental Benefits Program (this should be passed QnU if Ordinance C is passed). 4. Ordinance E - An ordinance providing for additional benefits for employees (types of benefits to be decided later) by City's matching of employee deductions. 5. Discussion of cost of living increase for next fiscal year. A CITY OF KENAI RESOLUTION NO, 82- A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DIRECTING THE ADMINISTRATION TO PREPARE APPROPRIATE ORDINANCES TO PROVIDE FOR PAYMENT TO EMPLOYEES OF A LUMP SUM IN LIEU OF BUDGETED CITY CONTRIBUTIONS TO THE SOCIAL SECURITY SYSTEM THROUGH JUNE 30, 1982. WHEREAS, the City of Kenai has withdrawn from the Federal Social Security System effective December 31, 1981, and WHEREAS, the City of Kenai had budgeted for an established wage package for all City employees amounts including a City contribution to the Social Security System of 6,7% of employee's salaries up to a maximum of $29,700 for each employee, and WHEREAS, the benefit for employees budgeted by the City will not be paid due to said withdrawal from the Social Security System, and it is reasonable to pay to the employees the cash savings to the City caused by such withdrawal, and WHEREAS, an additional payment to employees would cause the City to incur additional expenses for contribution to the Alaska Public Employment Retirement System and to Workmen's Compensation and:to the health benefit program for the life insurance covered therein, which is estimated to be equivalent to approximately 9/10ths of one per cent of each employee's wages. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Administration be directed to prepare an appropriate ordinance or ordinances to provide for payment of 5.8% of gross salary up to a maximum of $29,700 for each employee of the City employed on or before December 310, 19810, during the period of employment from January 1, 1982, through termination of employment of such employee or June 30, 1982, whichever first occurs, with such sum to be payable in a lump sum at time of termination or on or about July 1, 1982. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this day of , 1982. VINCENT O'REILLY, MAYOR ATTESTS Janet Whelan, City Clerk B CITY OF KENAI ORDINANCE NO. -82 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 23.40 485 TO MAKE CITY CONTRIBUTIONS TO PROVIDE FOR BENEFITS TO EMPLOYSES'IN LIEU OF THE PREVIOUS CONTRIBUTIONS OF THE CITY TO THE FEDERAL SOCIAL SECURITY SYSTEM. WHEREAS, the City of Kenai has withdrawn from the Social Security System whereby coverage under Social Security for employees of the City of Kenai terminated on December 31, 1981, and WHEREAS, it appears to be desirable for the City to make contributions to provide for other benefits for employees in lieu of Social Security coverage, and WHEREAS, the Budget of the City of Kenai for the 2981-2902 fiscal year provides funding for contributions to the Social Security System in the amount of 6,650 of the salary of each employee. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows$ Section is XNC 23.40.085 is hereby enacted to read as follows $ 023.40*100 Contributions for Additional Benefits: In order to provide additional benefits for employees on withdrawal from the Social Security System, an amount equal to 6.658 of the wages of each employee, shall be paid by the City to provide supplemental employee benefits." Seetion_2s In order that the benefits to be secured by Section 1 above shall be effective immediately after withdrawal from the Social Security System, the funding provided for in Section 1 shall be made effective the first day of January, 1982" PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this day of , 2982. VINCENT O'REILLY, MAYOR ATTESTS Janet Whelan, City Clerk First Readings , 2982 Second Readings , 1982 Effective Dates , 1982 Approved by Finances y CITY OF KENAI ORDINANCE NO. -82 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 23,40.085 TO PROVIDE FOR THE CITY TO MATCH EMPLOYEES• CONTRIBUTIONS TO PARTICIPATE IN THE STATE OF ALASKA SUPPLEMENTAL EMPLOYEE BENEFIT PROGRAM IN LIEU OF THE FEDERAL SOCIAL SECURITY SYSTEM. WHEREAS, the City of Kenai has withdrawn from the Social Security System whereby coverage under Social Security for employees of the City of Kenai terminated on December 31, 2981, and WHEREAS, it appears to be desirable for the City to match contributions of employees to provide for participation in State of Alaska Supplemental Employee Benefit Program in lieu of Social Security coverage, and WHEREAS, the Budget of the City of Kenai for the 1981-1982 fiscal year provides funding for contributions to the Social Security System in the amount of 6.65% of the salary of each employee. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section is KMC 23,40.085 is hereby enacted to read as follows: 023*40.100 ribsktons for Additional ftnafitat In order to provide additional benefits for employees after withdrawal from the Social Security System, 6.23% of the wages of each employee, up to the taxable wage base then in effect in the Social Security System, shall be deducted from said wages and shall be matched by the City to provide supplemental employee benefits, and the City will file the necessary requests with the Commissioner of the Department of Administration, State of Alaska, to participate in the State of Alaska Supplemental Employee Benefit Program as provided under AS 39.30.150-180." 1 sects In order that the benefits to be secured by Section 1 above shall be effective as soon as possible, the payroll deductions provided for in Section 1 shall be made from wages of employees due on the last working day of the month in which the City of Kenai participation is approved by the State. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this �_ day of , 1982. VINCENT O'REILLY, MAYOR ATTESTS Janet Whelan, City Clerk First Readings , 2982 Second Readings , 1982 Effective Dates , 1982 Approved by Pinances U L Z CITY OF KENAI A RESOLUTION NO. 82- A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ELECTING TO BECOME A PARTICIPATING EMPLOYER IN THE EMPLOYEE ) BENEFITS PROGRAM UNDER AS 39.30,150 -- 39,30,180, WHEREAS, the City of Kenai participates as an employer in the Public Employees' Retirement System of the State of Alaska pursuant to AS 39.35, and WHEREAS, the City of Kenai is withdrawing from the Federal Social Security System effective January 31, 1982, and WHEREAS, the City of Kenai desires to become a participating employer in the employee benefits program under AS 39.30.150 39.30.280, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Mayor of the City of.Kenai is authorized, and is hereby directed, to request the Commissioner of the - - Department of Administration of the State of Alaska to approve the request of the City of Kenai for participation in said program to be effective on January 1, 1982. i PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this day of , 1982. * ,p VINCENT O'REILLY, MAYOR ATTESTs .P y Janet Wbelan, City Clerk E E CITY OF KENAI ORDINANCE NO. -82 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 23.40.085 TO PROVIDE FOR THE CITY TO MATCH EMPLOYEES' CONTRIBUTIONS FOR BENEFITS IN LIEU OF THE FEDERAL SOCIAL SECURITY SYSTEM. WHEREAS, the City of Kenai has withdrawn from the Social Security System whereby coverage under Social Security for employees of the City of Kenai terminated on December 31, 1981, and WHEREAS, it appears to be desirable for the City to match contributions of employees to provide for other benefits in lieu of Social Security coverage, and WHEREAS, the Budget of the City of Kenai for the 1981-1982 fiscal year provides funding for contributions to the Social Security System in the amount of 6.65% of the salary of each employee. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: 8ect�ion i KMC 23.40.085 is hereby enacted to read as follows s 023,40,100 Contributions for Additional Benefits: In order to provide additional benefits for employees after withdrawal from the Social Security System, 6,65% of the wages of each employee, up to a maximum of $29,700.00. shall be deducted from said wages and shall be matched by the City to provide supplemental employee benefits. anction?s In order that the benefits to be secured by Section 1 above shall be effective as soon as possible, the payroll deductions provided for in Section 1 shall be made from wages of employees due on the last working day of the month in which the City enters into such benefit program. 1 PASSED BY THE COUNCIL OF THE CITY OF KENAI, M ASSA, this day of , 1982. VINCENT O'REILLY, MAYOR ATTESTt Janet Whelan, City Clerk First Readings , 1982 Second Readings , 1982 Effective Dates , 1982 Approved by Finances 0 CITY OF KENAI "Od G'6,ja" a j 4"„ I.O. SM SW 1104M, ALASKA "611 m5plHONE 283 • lift MEMORANDUM TOs HONORABLE MAYOR & MEMBERS OP CITY COUNCIL PROMs BEN T, DELAHAY, CITY ATTORNEY 41715 REs WORK SESSION ON EMPLOYEE BENEPITS DATES JANUARY 25, 1982 On request for an agenda at the last Council meeting, I prepared a variety of Actions to be placed on the agenda for the work session of January 28, 1982, regarding supplemental benefits to employees, Since I did not know which option the Council might select, I have not placed numbers on these ordinances or resolutions, but I have designated them as Actions from "A" to "E". They are arranged in descending order beginning with the Action which I h@jloyA (from comments previously made by employees) would be most desired by the bulk of employees. Thus if the Council selects Action "A", the bulk of the employees would be most happy with the result, However, if Action "A" is not passed or is not brought before the body by both motion and second, then the Council should proceed to Action "B" and down the line until they find the Action most desired by employees which a majority of the Council could support, If NO action is taken, then the result would be that Ig= favored by employees the City would retain all funds previously budgeted for matching contributions for Social Security, I have set forth all of the options the City has that I could think of, and for a starting point I have set percentages and maximums that were the cost budgeted by the City before withdrawal from Social Security, With respect to Action "CO and Action "D", which would be required for entering into the State Supplemental Employee Benefit Program and is controlled by State law, no changes or modifications can be made, However, in all other actions, either the percentage of salary or the maximum salary to which such percentage shall be applied can be amended or varied as the Council may deem appropriate. Because of my rush in trying to get these out in time to get a packet to Council members as soon as possible, there are several 1 minor errors which can be corrected when the ordinance or resolution selected by the Council is brought before the Council in regular meeting. The section numbers of the new ordinances will vary depending upon the subject matter of the Action, but it will not be Section 100 (which was the section containing the old Social Security provision which has now been repealed). Also the amount budgeted for City contribution to Social Security was 6.7% rather than 6,65% since the City was required to pay the State .05% for administration of the Social Security program at the State level in addition to the 6.65% required by Federal law. BTD/md j.