HomeMy WebLinkAboutResolution No. 2022-23KENAI
CITY OF KENAI
RESOLUTION NO. 2022-23
Sponsored by: Administration
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE CITY
OF KENAI'S PARTICIPATION AGREEMENT WITH THE PUBLIC EMPLOYEES' RETIREMENT
SYSTEM (PERS) TO REMOVE THE "PROGRAM OR PROJECT EMPLOYEE" CATEGORY OF
EMPLOYEES FROM PARTICIPATION EFFECTIVE JULY 1, 2022.
WHEREAS, City employees participate in the Alaska Public Employees Retirement System (PERS)
unless specifically removed by plan amendment; and,
WHEREAS, the City has amended its participation agreement a total of six times to remove designated
categories of employees from participation in PERS, including All Elected Officials, Recreation Center
Worker, Visitor Center Worker, and Janitor; and,
WHEREAS, the City wishes to remove the "Program or Project Employee" category of employee from
PERS; and,
WHEREAS, because the City has never employed a "Program or Project Employee," removing this
category of employees from participation in PERS will ensure a termination study is not required should
a position under this category later be eliminated and creates no ongoing PERS liability to the City.
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 seventh amendment to the City of
Kenai participation agreement with the Public Employees Retirement System (PERS) effective July 1,
2022, to read as follows:
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
Visitor Center Assistant
Janitor
All Program or Project Employees
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 20T" DAY OF APRIL, 2022.
Brian Gabriel Sr., Mayor
ATTEST:
Michelle Sa MC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
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KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Christine Cunningham, Human Resources Director
DATE: April 8, 2022
SUBJECT: Resolution 2022-23 Authorizing an Amendment to the City of Kenai
Public Employees Retirement System (PERS) Participation Agreement
At its meeting on April 6, 2022, the City Council enacted Ordinance No. 3275-2022 to add a new
category of temporary employees titled "Program or Project Employee" and establish benefits for
this new employee category. The Ordinance included language that a resolution amending the
City of Kenai's Public Employees Retirement System (PERS) participation Agreement with the
State of Alaska would be necessary to allow the City to hire employees under this category.
If an employer participating in PERS wishes to exclude an eligible position or class of employees
from PERS, it is recommended by the State of Alaska Division of Retirement and Benefits that
the employer pass a resolution to exclude the position and amend its PERS participation
agreement prior to hiring the employee.
Resolution 2022-23 authorizes the seventh amendment to the City's PERS participation
agreement, removing the new "Program or Project Employee" category of employees from
participation by plan amendment. Previously excluded positions or classifications from
participation include All Elected Officials, Recreation Center Worker, Visitor Center Worker, and
Janitor.
Removing the "Program or Project Employee" category of employees from participation in PERS
will ensure a termination study is not required should a position hired under this category later be
eliminated and creates no ongoing PERS liability to the City.
If Council passes Resolution 2022-23, the first example of how this new category might be utilized
would be proposed by the Administration as part of the annual budget for the fiscal year 2023. It
would allow the City to hire a full-time Grant Writer to provide the necessary support to pursue
grants for the Bluff Stabilization Project and the funding opportunities available through the
Federal Infrastructure Bill for a pre -established period exceeding six months without creating a
permanent position and avoiding the cost of a termination study to later remove the position.
Your consideration is appreciated
f '
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. 7
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 July 1, 2022, 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:
All Elected Officials
Recreation Center Worker
Visitor Center Worker
Janitor
All Program or Project Employees
Approved:
Administrator
Authorized Representative Signature
Authorized Representative Name (please type/print)
Authorized Representative's Title
Date