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HomeMy WebLinkAbout2004-12-15 Council Packet - Work Session with LegislatorsCouncil Present' Staff Present: Legislators Present' KENAI CITY COUNCIL WORK SESSION DECEMBER 15, 2004 6:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESIDING NOTES L. Swarner, P. Porter, C. Massie, R. Ross, B. Gilman C. Freas, L. Snow, C. Graves, S. Walden, J. La Shot, F. Macvie, L. Semmens, and K. Komelis Senator T. Wagoner, Representative M. Chenault, and Representative-Elect K. Olson. Mayor Porter opened the work session at approximately 6'00 p.m. and noted a copy of Resolution No. 2004-60, adopting the city's 2005-2006 capital improvement project list was before them. She noted, the list was developed during a recent work session. She requested guidance from the legislators as to how much money they believe will be available for funding capital projects due to the state's surplus funds from oil price increases. A general discussion followed in which comments included: · Wagoner stated he would like one-time funding items like PERS/TERS to be funded first and he wants to target education issues as well. · As funds become available, Wagoner believed they would probably focus on road projects. · The Agrium issue is market driven and additional gas will need to be committed. · Chenault requested back-up information on projects (one page for each project) be provided to them for a quick reference when funding availabilities are known (probably in April). · Wagoner stated he suggested Mayor Bagley make a request to the governor for Arctic Winter Games funding as he did not want to include it on his list of requests if the Governor will be cutting it out. He wants to include only projects that have a good chance of being funded. · The city's list should include smaller-cost projects as well as larger ones. The smaller costing projects may have a better chance of being funded. · Note if a project can be done in steps. Porter referred to a copy of a letter to Commissioner Matiashowski, Department of Administration, regarding HB 242, PERS Employment Waiver, written by six city employees who chose to participate in the PERS waiver program after the city received and employees received assurances the program would continue. Finance Director Semmens reviewed the letter with the legislators and council and discussed a proposed bonding remedy. Semmens noted, it is a big issue and there will be ramifications if the Legislature doesn't fix the problem. Semmens was requested to forward a copy of the letter the city received stated the assurances of the program's KENAI CITY COUNCIL WORK SESSION DECEMBER 15, 2004 PAGE 2 continuance to the legislators. Ross requested the Legislature review the issue and make it actuarially sound. Public Works Komelis reviewed the water quality and tank concerns, noting the city had submitted applications for DEC funding. Wagoner stated he would also be supporting and advocating the upgrading of the highway between Soldoma and Kenai be reviewed by DOT. Komelis requested consideration of upgrading Wildwood Road by the state as it is the ma/n access road to the prison, though it is used by residents living in the adjacent city subdivision. The work session adjourned at approximately 6:50 p.m. Notes prepared by: Carol L. Freas, City Clerk December 14, 2004 Ray Matiashowski, Commissioner State of Alaska, Dept. of Administration P.O. Box 110203 Juneau, AK 99811-0203 Subject: HB 242 Rehired Retiree- PERS Employment Waiver Dear Commissioner Matiashowski, The PERS employment waiver option allows a retiree to reemploy with a PERS employer and continue to receive PERS retirement benefits. Your letter of November 3, 2004 conveying the State Attorney General Office's opinion that employees enrolled under this PERS waiver program will not be allowed to continue with this program after June 30, 2005 has caused much distress for the six employees worldng for the City of Kenai that are participating in the program. The State of Alaska, Division of Retirement and Benefits assured the City of Kenai and its employees in writing that "Any member who is participating in the program and continues employment after 7/1/2005 will be allowed to continue participating in the plan." We expect to .continue working under the PERS waiver program as it was described to us by the state. · The July 1, 2005 date in HB 242 was the date set when employees could no longer enroll in the PERS waiver program. It doesn't make sense to allow employees to enroll in the PERS waiver program right up to the same date they would be required to rejoin the PERS on July 1, 2005. If the intent were to discontinue benefits to PERS waiver participants on June 30, 2005 the legislature would have stopped program enrollment long before July 1, 2005. · The stated intent of this legislation is to attract and retain a strong skilled work force. It has been very successful for the City of Kenai, and also saved the city money, and will save PERS money in the long mn. · The City of Kenai has 6 of the 308 statewide employees participating in this PERS waiver program. Two are Department Heads, three are Foreman, and one is a Fire Captain. A timely resolution to this problem is very important. The city is starting our budget process and this has an impact on the budget and possible hiring concerns of replacing very experienced supervisors. · Employees made PERS decisions based on Alaska Division of Retirement and Benefits' assurance that the current participants in the PERS waiver program would continue. Joint Survivor Option, Dental-Vision-Audio, and Long-Term Care Insurance decisions may have been different if employees had been advised they could no longer participate in the PERS waiver program after July 1, 2005. Many would have taken the 100% benefit instead of the Joint Survivor Option if they knew it was for only for a short period of time and not chosen to pay for the Dental-Vision-Audio option if they thought they might be returning to the city's insurance plan. * Employees have made financial, personal, and life-altering decisions based on the Alaska Division of Retirement and Benefits representing that the PERS waiver program would continue. Investments, contracts, loans, and retirement decisions have been based on the PERS waiver program continuing. Discontinuing the waiver program will significantly affect employee's futures. * If participating employees who elected the PERS waiver option were discontinued on July 1, 2005, the results would be confusing. The second time an employee retires do they get to make all new benefit decisions? When the employee goes offPERS medical insurance and back on the employers insurance will new deductibles start? Does the time in the waiver program count as time before the cost of living increase goes into affect? · On May 5, 2004 the City of Kenai passed a resolution limiting future opt-out PERS participants to 5 years in the PERS waiver option program. The city interpreted HB 242 and was told by Alaska Division of Retirement and Benefits that the PERS waiver option program would continue for enrolled participants beyond July 1, 2005. Keith Komelis, Public WOrks Manager 1-907-283-8232 S~o~tt W~lden, Fire Chief -907-283-7666 Mike Wichm~n, Shop Foreman Walt Williamson, Fire Captain Fred Macvie, STP Foreman