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HomeMy WebLinkAboutOrdinance No. 2674-2013MA Sponsored by: Council Member Bookey Council Member Marquis CITY OF KENAI FANCE NO. 2674 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE SECTION 23.40.080 RETIREMENT, TO REFLECT CURRENT RETIREMENT OPTIONS FOR CITY EMPLOYEES AND REMOVING THE FIVE YEAR WORKING LIMITATION FOR EMPLOYEES EXEMPTED FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM. WHEREAS, Kenai Municipal Code 23.40.080 Retirement, currently requires City employees to participate in the State Public Employees Retirement System (PERS) unless the employee participates in the opt -out provision of AS 39.35.150(b); and, WHEREAS, AS 39.35.150(b) has been repealed by the State Legislature; and, WHEREAS, current practices require the City to amend its PERS participation agreement with the State to allow for a category or class of employees to be exempted from participating in PERS; and, WHEREAS, since its execution in 1969, the City's participation agreement has been amended four times to exclude and include both the City Manager's position and the City Council from PERS; and, WHEREAS, in order to continue to provide the option for certain categories or classes of City employees to be excluded from PERS, KMC 23.40.080 must be amended to reflect the current process; and WHEREAS, KMC 23.40.080(b) imposed a five year limitation on employees who opted out of PERS under AS 39.35.150(b) to limit the disparity in treatment between employees eligible for retirement before and after June 30, 2005, when the opt -out provision was set to expire; and WHEREAS, eliminating the five year limitation on employees working after exemption from PERS will allow the City greater flexibility in its employment opportunities for current and future employees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a Code ordinance. Section 2. Amendment of Section 23.40.080 of the Kenai Municipal Code: that Kenai Municipal Code, Section 23.40.080 Retirement, is hereby amended as follows: New Text Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2674 -2013 Page 2 of 2 23.40.080 Retirement. (a) Eligible [E] employees are required to participate in the State Public Employees Retirement System (PERS) unless [THE EMPLOYEE PARTICIPATES IN THE OPT -OUT PROVISION OF AS 39.35.150(B). SEE PERS HANDBOOK FOR DETAILS] the employee's category or class of employment has been exempted by amendment to the City's PERS Participation Agreement. Amendment to the City's PERS Participation Agreement for the purpose of exempting a class or category of employees must be authorized by Resolution of the City Council. [(B) AN EMPLOYEE WHO PARTICIPATES IN THE OPT -OUT PROVISIONS OF AS 39.35.150(B)SHALL WORK NO MORE THAN FIVE YEARS IN ANY CAPACITY AFTER THE DATE OF HIS /HER REEMPLOYMENT WITH THE CITY, UNLESS THAT PERSON TERMINATES EMPLOYMENT WITH THE CITY AND IS REEMPLOYED AS AN EMPLOYEE WITHIN THE PERS SYSTEM. THIS SECTION DOES NOT PROHIBIT A FORMER EMPLOYEE FROM SERVING AS A COUNCIL, COMMISSION OR COMMITTEE MEMBER.] Section 3. Severability: If any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: Pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of February, 2013.E PAT PORTER, MAYOR ATTEST: S a Wc�dighOCity Clerk Introduced: January 16, 2013 Adopted: February 6, 2013 Effective: March 6, 2013 New Text Underlined; [DELETED TEXT BRACKETED] M "Villaye with a Past, C# with a Future /I MEMORANDUM 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / Fax: 907 - 283 -3014 www.ci.kenai.ak.us TO: Mayor Porter and Council Members Boyle, Gabriel, Molloy, and Navarre FROM: Council Members Terry Bookey and Ryan Marquis Vk DATE: January 11, 2013 RE: Ordinance No. 2674 -2013 Recently, the City Manager approached City Council to discuss opting his position out of the Alaska Public Employee Retirement System (PERS). During subsequent review of Kenai Municipal Code as it relates to employee participation in PERS, it was brought to our attention that certain sections of that code reference Alaska statutes that have been repealed. The purpose of this ordinance is to correct outdated code language and make appropriate changes that would continue to allow the City to have certain flexibility with its employees' PERS participation. These corrections also recognize the City's historical practice of opting certain positions in and out of PERS, at the needs and discretion of the City Council. Worth noting, the City's PERS agreement has been amended four times previously: the City Manager position was removed in 1997; in 2000, the Kenai City Council was added to PERS; in 2006, the Kenai City Council removed themselves from PERS; and in 2007, the City Manager position was placed back into PERS. We respectfully request your support of this ordinance.