HomeMy WebLinkAboutDocumentation_Regular_Tab 08D_11/18/1993 t
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; _ ; VILLAGE OF TEQUESTA
Post OfCce Box 3273 • 357 Tequesta Drive
`' Tequesta, Florida 33469-0273 • (407) 575-6200
' - � � Fax:(407)575-6203
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MEMORANDUM:
TO: Village Council
FROM Thomas G. Bradford, Village Manager �
DATE: November 10, 1993
SUBJECT: Cost Agreement to Research "Opt for New
Employees" of Florida Retirement System (FRS);
Aqenda Item
The City of Casselberry has created an account for the
establishment of a legal fund to research and defray administrative
expenses (legal) associated with research and possible litigation
on the issue of how cities may opt-out new employees from the FRS.
The initial contribution is $5000.
I have mixed feelings on this subject. I know from my own r.esearch
that this issue will be time consuming, costly and without any
guarantee of a satisfactory outcome. On the other hand, if we do
not do something, i.e. put our money where our mouth is, the
Legislature may continue to snub the cities on this long-standing
issue.
I have contacted the City of Casselberry and appearing below are
the cities which have joined the Cost-Sharing Agreement to date.
1) City of Casselberry
2) City of South Daytona Beach
3) City of Sanford
The law firm anticipated to head this legal research will not be
selected until seven cities have committed to join.
I have concluded that my recommendation is to not participate and,
therefore, disapprove the Cost-Sharing Agreement.
My forecast of the condition of Tequesta finances is such that I do
not feel comfortable engaging in an effort which could turn out to
be endless and much more than the initial $5,000.
TGB/krb
Attachment
Recucled Patier
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JONES, FOSTER, JOHNSTON & STUBBS, P. A .
ATTORNEYS AND COUNSELOR8 -�
FLAOLER CENTER TOWER �'''
606 80UTH FLAOLER DRIVE (�. ~ ti
ELEVENTH FLOOFi
LARHY 8. ALE%ANDER JOMN BWR MoCHACKEN - P• O. BOX $47b � I. + HENiiY I. UUENTHAL
STEVHEN J. AUCAMP 8C0TT l. MoMULLEN WEST PALM BEACH, FLORIDA 334 6 '� � ��'
TMCY 81A610TT1 JOHN C. NANOOIPM 407 86�-3000 `' p ., MARRY ALLIBON JOHN9TON
JOYCE A. CONWAY JONN C. RAU � � •. �`�a
MARCiARET L. COOPER ANOfiEW HOBB FAX: (407)832 •f� ����
EDwANO DI�Z 9TEVEN J. tqTHMAN � R. BRUCE JONES
REBECCA O. DOANE PETEN A. SACH8 � OV O��h^� 2 1YW.19E�
CHRI$TOPHER S. DUKE 0. CUIVER 9MI1H m r ,y
9COtt O. HAWKIN9 91DNEY A. STU888, JN. y ^ oAUL C. WOLFE
THOqNTON M. HENPY ALLEN R. TOMLIN80N ��� �}f »'�OO�
PETEN S. HOITON JOHN 9. TipMVEP /'• /�rn� � REnREO
MARK 8. KLEINFELO MICMAEL V. WALBN WRITER'3 OIRECT UNE: � ��tT J WILUAM A. F08TER
MICHAEL T. KRJW2 N. ADAMS WEAVER �_— OF�/1r
VG OF COUNSEL
i -� L. MAHTIH FlANAOAN
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November 1, 1993
Mr. Thomas G. Bradford
Village Manager
Village of Tequesta
Post Office Box 3273
Tequesta, Florida 33469
RE: Village of Tequesta
Florida Retirement System; Cost-Sharing Agreement
with Casselberry
Our File No. 13153.1
Dear Tom:
I have reviewed the above referenced Cost-Sharing Agreement with
the City of Casselberry. It appears this agreement requires a
$5,000.00 initial contribution. Any additional contributions shall
be subject to future agreements. Therefore, if the Village Council
is inclined to approve this arrangement, I approve the agreement as
to legal form and sufficiency.
Sincer
�
ohn . Randolph
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INCORPORATED 1940 �' � ✓�
95 TR(PLET LAKE DRIVE � jE ��'EOf �-�
CASSELBERRY, FLORIDA 3270 8 ��� pU FSTq
QTYGOMMISSION 0 �J n ONE 2638D04
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October 5, 1993
Thomas G. Bradford
City Manager
VILLAGE OF TEQUESTA
P.O. Box 3273
Tequesta, FL 33469-3273
Dear Mr. Bradford:
As indicated in my previous communication to you, attached is a Cost Sharing Agreement to
form a consortium of cities to research the "Opt Out for new Employees". Casselberry acted
to approve Monday, September 27, 1993. As soon as we receive agreements and checks from
six other cities we will activate the procedures as set out in the agreement. On a related matter,
the Florida Division of Retirement recently sent out a survey to cities involved in the State
Retirement System. It is probably in our best interest to present a united, uniform response to
them before the 7anuary deadline. This may also need extra coordination which will likely be
discussed at the League meeting in November and in League communications.
We look forward to your response and participation.
Sincerely,
Jo h "� . I3illebrandt
a or-Commissioner
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Atta.chment: Cost Sharing Agreement
RESOLUTYON 779
"A RESOLUTION OF TI-IE CiTY OF CASS�LBERRY, rLORTDA,
APPROVING CITY Or CASSELBERRY PARTICIPATION IN A COST
SHARING AGREElV1ENT RELATING TO "OP'I' OUT I�OR N��'V
EMPLOYEES" FROM THE FLORIDA RETIItEMENT SYSTEM;
PROVIDING FOR CONFLICTS, SEVERABILTTY, AND AN ErFECTIVE
DATE."
WHEREAS,it is in the best interest of cities in the FRS to "opt out" all new city
employees from the FRS which would allow cities to provide retirement benefits to new city
employees through better and less expensive private independent retirement programs.
NOW THEREFORE, B� IT RESOLVED BY THE CITY CONIMISSION OF
THE CITY OF CASSELB�RRY, FLORIDA AS FOLLOWS:
SECTION ONE. Cost Sharing Agreement, affixed as Attachment A, is hereby ap��roved
and Joseph M. Hillebrandt as Mayor-Commissioner is authorized to effect said agreement.
SECTION TWO. Casselberry Finance Department is authorized to establish and operate
an Escrow Account in accord with the agreement provisions.
SECTION THItEE. A transfer of funds in the amount of $5,000 is autl�orized from the
I.egal Department Budget to effect provisions of this agreement at such time as the City of
Casselberry receives agreements and checks from six other Florida cities, as stipulated in the
agreement. The City Manager shall report such transfer to the Commission upon its occurrence.
SECTION FOUR. nfli . All Resolutions or parts of Resolutions in conflict with
any of the provisions of this Resolution are hereby repealed.
SECTION FIVE. Severabilitv. If any Section or portion of a Section of this Resclution
proves to be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair
the validity, force, or effect of any other Section or part of this Resolution.
SECTIUN STY. Effective Dat�. This Rcsol�:tior, shalZ become effective immeciiately
upon its passage and adoption.
PASSED AND ADOPTED tliis 1aC.�� day of a , A.D. 1993.
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sepr� M. Hillebrandt
ATTFST: �Mayor/Commissioner
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Thelma McPherson � �
City Clerk
COST SHARING AGREEI[ENT
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THIS AGRBEMSNT, Made and entered into by and between the undersigned
parties, hereinafter referred to as the Initial Organizing Group ("IOG") •
` WITNESSBTH:
WHBRBAS, at the time cities joined the Florida ftetirement System, hereinafter
referred to as the "FRS," the FRS provided for established benefits to city
employees with a cost of four percent (4$) of salary to the local taxpayers and four
percent (4$) of salary to the regular city employee and a cost of six percent (6�) of
salary to the local taxpayers and six percent (6$) of salary to the special risk city
employee; and
WFIBRBAS, on January 1, 1975, the Florida Legislature amended the FftS from
a contributory plan to a noncontributory plan and mandated that local taxpayers pay
the total contribution to the FR.S at a cost of nine percent (9$) of regular city
• employees salary and thirteen percent (13$) of special risk r_ity employees salary;
and �
� WHEREAS, the Florida Legislature has since increased the lacal taxpayer's
total contribution to the F8S from four percent (4�) to a present contribution by
local taxpayers of seventeen and twenty-seven hundredths percent (17.2?$) of
regular city employees salary; and
WHSREAS,
the Florida Legislature has since increased the local taxpayer's
total contributian to the FRS from six percent (6�) to a present contri'bution by local
taxpayers of twenty-seven and fourteen hundredths percent (27.14$} of special risk
eity employees salary; and
WHEREAS, the Florida Legislature has also eliminated the employee waiting
period of four (4) months that allowed cities to avoid paying contributions to the FftS
on short-term employees; and
WHBRBAS, the Florida Legislature has also eliminated any return of local
taxpayer contributions for city employees who terminated their employment with the
city before becoming eligible for receiving benefits from the FRS with the State
keeping all local taxpayer contributions; and
WHEREAS, it is in the best interest of cities in the FRS to "opt out" all new
city employees from the FftS which would allow cities to provide retirement benefits
to new city employees through better and less eltpensive private independent
retirement programs; and
WHSRBAS, the parties to this Agreement desire to provide an arrangement for
and funding of legal research in an effort to evaluate the potential for local
governments to "opt out" new employees from the Florida Retirement System.
NOW THERSFORB, FOR AND IN CONSIDBRATION OF THB FORBGOING AND
THB 1[iITUAL COVI�NANTS AND PROMISSS CONTAINSD HBRBIN, the undersigned
parties hereby agree as follows:
1. Upon execution of this Agreement, IOG agrees to devise a plan that is
acceptable to each of them to determine whether and how cities may "opt out" new
employees from the FBS.
2, IOG hereby agrees to retain qualified legal counsel for the purpose of
' researching and possibly litigating the issue of whether and how cities may "opt out"
new employees from the FBS. Proposals for this work shall be solicited from
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qualified attorneys for receipt by IOG no later than November 1, 1993, and IOG shall
meet and by majority vote agree upon legal counsel no later than November 30, 1993.
3, To ensure adequate funding to retain legal counsel, to fund legal
research, and to defray necessary administrative expenses by no later than
November 1, 1993, each party shall deliver to Joseph M. Hillebrandt, Mayor of the
City of Casselberry, Florida, 95 Triplet Lake Drive,. Casselberry, Florida, 32707,
a check made payable to the City of Casselberry Escrow Account in the amount of
FIVE THOUSAND DOLLAftS (�5,000.00) . Thereafter, if additional work is required
and approved in writing by all parties, each party shall deliver to Joseph hi.
Hillebrandt, Mayor of the City of Casselberry, Florida, 95 Triplet Lake Drive,
Casselberry, Florida, 32707, checks made payable to the City of Casselberry Escrow
Account in such amounts as are consistent with that party's pro rata share of said
costs in accordance with the terms and conditions of the formal Agreement to be
entered into between the parties hereto and the legal counsel in a form acceptable to
all parties. Such funds shall then be used to defray necessary incidental
administrative expenses . e with the terms and conditions of IOG's formal Agreement
with legal counsel. The City of Casselberry will deliver to the parties a monthly
progress report on the legal counsel's progress, all transactions, and the status of
the Escrow Account with respect to this matter. The Ciiy of �asselberry will
promptly transmit to each party copies of all bills received from legal counsel and for
payment of necessary incidental adtninistrative expenses.
4, All drafts of any legal memoranda, reports, briefs, or any letters by
legal counsel and the IOG concerning this issue shall be submitted to each party for
review and return comments . Each party shall then provide all parties with their
Cost Sharing Jlgreement
Page 3
written return comments to said drafts within ten (10) days after the date such
documents are received .
5. All parties shall be provided with oral or written notice of all
communications, either oral or written, to be initiated by any party hereto with the
legal counsel retained by the pa'rties and IOG.
6. Upon termination of this Agreement, the City of Casselberry shall pay
all outstanding bills of legal counsel for work performed up to the time of the
termination of this Agreement, and the Agreement with legal counsel shall be
terminated. Any sums remaining in the City of Casselberry Escrow Account paid by
IOG pursuant to this Agreement shall then be refunded to the parties on a pro rata
basis in accordance with their contributions . Nothing in this Agreement shall
prevent any party from proceeding to utilize legal counsel for further work following
the termination of this Agreement as provided above.
?. All information generated by, and all of the written and oral
communications among or between the parties with res�ect to this AgTeement, or the
legal research conducted, are intended to be work product in anticipation of
litigation. Such information shall be confidential and privileged to the fullest extent
.permitted by law. The parties understand that at the conclusion of any litigation or
settlement, the information obtained as a result of this cooperative effort will become
public record and agree to protect the records in accordance with the requirements
of Chapter 119, Florida Statutes.
8. This Agreement supersedes any and all �oral or written agreements and
understanding heretofore made relating to the subject matter hereof and contains the
entire agreement of IOG relating to the� sub ject matter hereof . This Agreement may
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be amended or modified only by a writing executed by each party hereto. This
Agreement can be executed in any number of counterparts and by separate signature
pages, each of which shall be deemed to be an original as against any party whose
signature is affixed thereon, and which, when attached together and containing the
signatures of all of the parties of this Agreement, shall be deemed to be a duly
executed and finalized Agreement.
g. This Agreement shall terminate on November 1, 1994 .
IN WITNESS WHBREOF, the parties hereto have caused this Agreement to be
executed on their behalf by their respective representatives, each such
representative having been first duly authorized so to act, this �� day of
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CITY 4� .� , FLORIDA
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