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HomeMy WebLinkAboutResolution No. 2020-46x Sponsored by: Administration Ki;NAI CITY OF KENAI RESOLUTION NO. 2020-46 A RESOLUTION OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER, TO PREPARE AND EXECUTE AN AMENDMENT TO THE CITY OF KENAl 'S PARTICIPATION AGREEMENT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) TO REMOVE THE RECREATION CENTER ASSISTANT CLASS OF EMPLOYEES FROM PARTICIPATION EFFECTIVE NOVEMBER 1, 2003. WHEREAS, City employees participate in the Alaska Public Employees Retirement System (PERS) unless specifically removed by plan amendment; and, WHEREAS, the City wishes to remove the Recreation Center Assistant class of employee from PERS ; and, WHEREAS, since entering into a contract for facility management with the Kenai Peninsula Boys & Girls Club in November 2003 the City has not employed Recreation Center Assistants . NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute the fifth amendment to the City of Kenai participation agreement with the Public Employees Retirement System (PERS) effective November 1, 2003 to read as follows : 2. The political subdivision agrees that all eligible employees except in the following designated categories will participate in the Retirement System: All Elected Officials Recreation Center Assistant Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of June, 2020 . Ef'RIAN GABRIEL, SR., MAYOR ATTEST:· City of Kenai I 210 l=id algo Ave, Kenai, AK 99611 -7794 1907.283.7535 I www.kenai .cily MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Paul Ostrander, City Manager Terry Eubank, Finance Director June 5, 2020 Resolution 2020-46 Authorizing the Fifth Amendment to the City of Kenai Public Employees Participation Agreement The purpose of this memo is to recommend adoption of Resolution 2020-46 that authorizes the fifth amendment to the City of Kena i's Public Employees Retirement System (PERS) participation agreement. The amendment will remove from participation Recreation Center Assistant. The City of Kenai eliminated Recreation Center Assistants in November 2003 when it contracted with the Kenai Peninsula Boys and Girls Club for facility management services of the Kenai Recreation Center. At the time the City eliminated all Recreation Center Assistants the State of Alaska Department of Administration Division of Ret irement and Benefits (ORB) was not requiring termination studies when an entire class of employees was eliminated by a participant. The ORB has agreed to allow this fifth amendment to the City's Participation agreement effective November 1, 2003 and will not be requiring a termination study. If this position is filled in the future they would not be eligible to participate in the PERS reducing the fringe benefits cost for the position by 22%. Your support is respectfully requested. PUBLIC EMPLOYEES' RETIREMENT SYSTEM Division of Retirement and Benefits PO Box 110203 Juneau, AK 99811-0203 Phone: (907) 465-4460 Fax: (907) 465-3086 PARTICIPATION AGREEMENT AMENDMENT NO. 5 The Public Employees ' Retirement System (PERS) Participation Agreement entered into between the State of Alaska (hereafter referred to as the State) and the City of Kenai on July 1, 1969, and approved by the State on July 1, 1969 is amended effective November I, 2003, by changing subparagraph 2 on page 2 to read as follows: The political subdivision agrees that all eligible employees except in the following designated categories will participate in the Retirement System: Approved: Administrator All Elected Officials Recreation Center Worker Authorized Representative Signature Authorized Representative Name (please type/print) Authorized Representative's Title Date