[Council Communication]  [ Proposed Resolution ]

Council Communication

Title:	A Resolution Authorizing the City to Participate in PERS Appeal
Dept:	Legal Department
Date:	March 4, 2003
Submitted By:	Lee Tuneberg and Paul Nolte
Approved By: ...........................	Gino Grimaldi, City Administrator

Synopsis:	This resolution authorizes an appeal of the PERS Board (PERB) order imposing new rates on municipal employers. The new rates are based on the current practices of PERS which led to the PERS crisis in Oregon.
Recommendation:	Adopt the resolution to authorize an appeal of the newly adopted PERS rates.
Fiscal Impact:	The fiscal impact of the increased PERS rates on the city is substantial. The impact of the appeal, however, is minimal as the city's obligation for attorney fees is $150.
Background:	On February 11, 2003, PERS adopted new employer rates effective July 1, 2003. The League of Oregon Cities (LOC) is encouraging all cities to file an appeals of the rate order as soon as possible. The city has 60 days from the date of the rate adoption to file a formal appeal. LOC has retained the services of attorneys John W. Osburn and Peter W. Mersereau of Portland for any LOC member city that elects to participate. The cost to participate is a flat-fee rate of $150. The fee covers the following services: Filing a timely notice of appeal in Marion County Circuit Court; Prosecution of the appeal to judgment in circuit court; and In the event of legislative action materially affecting the litigation, consultation with the League and individual participants regarding any subsequent legal action.

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RESOLUTION NO. 2003 _____________

A RESOLUTION AUTHORIZING THE CITY TO PARTICIPATE IN PERS APPEAL

RECITALS:

A. Eight public employers brought suit against the Oregon Public Employee Retirement System in Marion County Circuit Court, claiming they were being overcharged in the calculation of employer contribution rates; and

B. Judge Paul Lipscomb has returned the case to the Oregon Public Employee Retirement System Board with instructions to update employee mortality tables, issue new employer rate orders for 1998 and 2000 and make a new earnings allocation order for the 1999 investment year; and

C. The Oregon Public Employee Retirement System Board has yet to comply with these instructions and has adopted proposed employer rate increase at its February 2003 regular meeting; and

D. The rate increases would be less if the Board had complied with Judge Lipscomb's instructions.

THE CITY OF ASHLAND RESOLVES AS FOLLOWS:

SECTION 1. The League of Oregon Cities is authorized to coordinate the filing of an appeal on the city's behalf, through outside counsel, from the rate increase received from PERS.

SECTION 2. This resolution takes effect upon signing by the Mayor.

This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090 duly PASSED and ADOPTED this 4th day of March, 2003.
Barbara Christensen, City Recorder

SIGNED and APPROVED this _______day of March, 2003.
Alan DeBoer, Mayor

Reviewed as to form:
Paul Nolte, City Attorney

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