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Home My WebLink AboutORDINANCE 1378-1990Suggested by: City Council CITY OF KENAI ORDII~IANCB 137$-90 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASINQ ESTIMATED REVENUES AND APPROPRIATIONS BY X50,008 IN THK ~ENERAI< FUND TO PROVIDE FOR THE ACCRUAL OF A LIABILITY TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) FOR THE RETIREMENT INCENTIVE PROGRAM (R.I.P.). WHEREAS, on November 21, 1989, the City Council adopted Resolution No. 89-76, which authorized participation in the R.I.P., and WHEREAS, subsequent to adoption of that resolution, the City entered into an agreement with PERS, which requires payment by the City to PERS for participation in the R.I.P. by eligible employees, and WHEREAS, three eligible employees have applied for the R.I.P., at the following costs to the City: Josephine Raats $ 7,111 Timothy Rogers 20,727 Janet Ruotsala 21,59. Administrative Fee (Paid) „~,„ 579' 550.E e WHEREAS, the Finance Director has determined that, although actual cash payment to PERS will not be made until a future fiscal year, a liability has been incurred at June 30, 1990 and generally accepted accounting principles require that the expenditure and liability be reflected in the FY89-90 financial statements. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance ~~0..r..Q~s Increase Appropriations: City Attorney - Miscellaneous $20,970 City Clerk - Miscellaneous 21,844 Library - Miscellaneous 7_ ~~ • .,{ _ .- • PASSED BY THE COUNCIL 4F THE CITY 4F KENAI,.ALASKA, th~:s 20th day of ~~ June, 1990. ti ATTEST: Ca•~ Carol Fre+~s, City Clerk Introduced: June 6, 199C Adopted: June 20, 1990 Effective: June 20, 1990 Approved by Finance: ~ ~ (5/16/90) kl ,; ..; _ _ , ..i ~.. f ~ ' _ t .... _ S - ..1 . . f _ ~..~.~_. .~'. _......:; .~... ., .. r a r c.r tl. '~t. ~~ ~ -. .. _. ,~. ,r. -. ir. ~ ... , Vii.. ..,. ,. • • r+~'~-° CJ Suggested by: City Council 0 City of Kenai • RESOLUTION NO. 89-7b A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ELECTING TO PARTICIPATE IN THE RETIREMENT INCENTIVE FROGRAM (PROGRAM), CHAPTER 89, SLA 1989, AND AUTHORIZING THE CITY OF KENAI TO ENTER INTO x1N AGREEMENT WITH THE ADMINISTRATOR OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) TO FUND THE COST OF PARTICIPATION IN THE PROGRAM. WHEREAS, the City of Kenai finds it necessary to reduce costs in this period of declining revenues; and, WHEREAS, the City of Kenai is seeking ways to reduce costs without having to lay off or terminate qualified employees; and, WHEREAS, the City of Kenai is an employer in the Public Employees' Retirement System and eligible to participate in the RETIREMENT INCENTIVE PROGRAM under Chapter 89, SLA 1989, which took effect on June 2, 1989. NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: 1. for the purposes of Chapter 89, SLA 1989, the RETIREMENT INCENTIVE PROGRAM, the City of Kenai, Organizational Unit, as shown on the attached List dated November 21, 1989, is designated as eligible 'to participate in the Program and all eligible employees in the Unit may participate in the Program if they so choose; 2. through its participation in the Program, there will be an overall personal services cost savings to the Employer sufficient to fund each eligible employee's participation in the Program; 3. it is understood that the total cost for designating the City of Kenai Organizational Unit as eligible to participate in the Program is $107,986 (prior to final adjustments) and must be paid to the PERS within three (3) years; 4. it is understood that an administrative fee of $756 (.7 percent of the total cost in Item 3, above) will be paid to the PERS within thirty days of the signing of the agreement; and, 5. the Finance Director of the City of Kenai is authorized to enter into a financial agreement with the PERS to implement the Program and to commit Employer funds for the costs of the Program. 1 :.:. .,,,.. ;, - - .~ anet' A. Loper, , eputy Gity~, Clerk . , .. Approved by Finance: ~~Y~ S~ ~, dal • . .. .. . -~ .. -. .. .~i. ,~, ~~:. is 3. • ~~ r~ • /1 l;I:TY OF KENAI , ALA$E~# RETIREMENT xNCENTIVE PROGRAI-i nESIGNATEA ORGANIZATIONAL UNIT 1.1/21/89 3-YEAP. CITY 2~ ESTIM. ACTUAL . SALARY & PYMT TO ADMIN LDST SAVTNG5 BENEFITS PERS FEE xNTEREST (LOSS) HACKNEY, H~IWARD 175 , 743 HACKNEY REPLACEMENT. 152,525 NET SAVINGS: 23,218 -16,355 -327 -1,x39 5,397 PARNELL, 5ANbRA 171.,889 PARNELL REPLACEMENT ],49,138 NET SAVINGS 22,751 -19,790 -396 -2,019 546 ~ RAATS, JOSEPHINE 95,249 . i RAATS REPLACEMENT 85,137 NET SAVINGS 10,112 -7,].11 -142 -493 '`4' 2, 366 REETZ, DAVE 1.68,422 REETZ REPLACEMENT 157,66Q `'' NET SAVINGS 10,762 -5,469 -1,09 --21 5,163 ROGERS, RAMON 152,148 RAGERS REPLACEMENT 192,645 NET SAVINGS 19,543 -16,943 -339 -1,722 54i? ROGERS, TIMOTHY 296,926 ROGERS REPLACEMENT 267,419 NET SAVINGS 29.507 -20,727 -415 -1,434 6,931 RtiOTSALA, JANET 176,271 RiJOTSAI.A REPLACEMENT 151, 322 NET SAVINGS 24,949 -21,591 -432 -2,1$8 738 TOTALS 140,842 -147,986 -2,160 -9.,(116 21,680 ESTIMATED T~IINING COSTS RELATIVE TO THESE EMPLOYEES -9,795 NET SAVINGS OVER 3-YEAR PERIOD 11,88$ +; y s ~ . t. ~ '_:____..__._,_ . ,. r ,.. _,._._ _.... ..... , ..,. „ r ~,,,~w • his` ....,.. ~ , ~ ~ ~ . •~ PUBLIC EMPLOYEES' RETIREM T •" ~N SY EM M1"~ SM GIY: , a~rrr~~:A'r~ ~ s~ ~ ~r~ ~W1.n.- ~ Agreement between the Public Employees' Retirement System (hereinafter to as the System) and the .F referred (hereinafter referred to as e m o er re at ng to - art. c at on `o . opaoyer's employees in the Retirement incentive Program .{phereinafte e s the Program), r referred WHEREAS, the Employer has applied to exercise the 'provisions oi' Chapter 89, . SlA 1989 ~ designating 7- ' ~ .. r G1h • f .~~11 ere na er rererre ~ *.o as t e " n1 as an organ~zat~ona un t e g1 a to participate in the Program, and WHEREAS, the governing body by resolution has certified that participation in the Program by the Unit will result in a savings to the agency in personal services costs in accordance with Chapter 89, SI.A 1989; and WHEREAS, the Employer has attached to this agreement: 1. A listing of ail employees fn the Unit to include: a) each employee's Social Security Number; b) an indication next to each employee's name as to whether or that employee is eligible to participate in the Program; and~ot c) an indication next to each eligible employee's name whether or not that employee has irrevocably waived his or her right to participate in the Program; and d) the cost of participation in the Program for each employee who has not waived the right to participate in the Program. 2. Signed notifications of termination and app~iidation for retirement for those employees who have elected to participate in the Program. 3. Signed waivers for those employees who have waived their right to participate in the Program. THEREFORE, the Employer and System agree as follows: I. The System shall perform ail acts as required or authorized by the provisions of the Act to ~nciude the processing and appointment to retirement of all employees in the Unit who are eligible, who have not waived the right to participate, and who make timely application as required under the Act. . 6/6D2/062903~9/I ... :. .. .. ,; . Y ~, . . • • 2. The Employer is indebted to the System for the cost of the incentive.. for ail employees in the Unit who ~^etire under the Retirement Incentive Program. That amount may be as much as: $ The Employer is also indebted to the System far the costs.. of administration of the Program, a first installment of which is payable within thirty (30) days of signing this agreement. That first installment is equal to seven-tenths of one percent of the maximum cost of the RIP and is: $ Additional payments for costs of administration may be requ red, ut in no case will the . total exceed two percent of the maximum cost of the Program. 3. The Employer agrees to reimburse the System in the following manner: ~.,..._., . A. i~,..,~~ =~ i ~"~ ~ {*~ 0 w• 0 0 an initial payment of $ S (which is greater than or equal to the first insta ment of the administrative fee), before , / /~ -,9, o _ ,and, i f any indebtedness remains , I. a first installment payment equal to at least one-third of the indebtedness, including interest*, payable by August 1, 19~; a second installment equal to at least one-half of any rema Wing outstanding indebtedness, including interest*, payable by August 1, 19~, and a third installment equal to the remaining indebtedness, including interest*, payable by August 1, 19 °~, oQ B. a lump sum equal to the sum of the participant costs and the payment of administrative costs specified in number two above. It is agreed that any adjustments resulting in either addi- tional costs or refunds will be made after the close of the window period. * The interest, at the System rate, will be determined by the System based on the date of this agreement, the total outstanding indebtedness, and the dates of the payments. Payments must commence no later than August 1, 1991. • ~4. It is understood and agreed by both parties that payments to the System will be adjusted to reflect the actual costs incurred for the individuals retired, following the close of the incentive period. T.he Employer shall be notified of any further payment or refund due. 5. It is understood and agreed by both parties that amounts owed the System under thi s agreement take priority over other ob1 i ga ti ons of the Employer to the maximum extent permitted by law, and that any amounts due the Employer from the State may be attached by the System. 6/602/062903-9i2