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HomeMy WebLinkAboutOrdinance 16968-05-2006Ordinance No. X6968-05-2006 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE RISK MANAGEMENT FUND IN THE AMOUNT OF $'I,Q00,000 AND DECREASING THE UNRESERVED, UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT', FOR THE PURPOSE OF FUNDING A SETTLEMENT BETWEEN THE CITY OF FORT WORTH AND THE EMPLOYEES' RETIREMENT FUND OF THE CITY OF FORT WORTH; PROVIDING FORA 5EVERABiL1TY CLAUSE; MAKING THIS ORDNANCE CUMULATIVE OF PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. 13E IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allaaated to the various City d~;partments for Fiscal Year 2005- 2006 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Risk Management Fund in the amount v# $1,000,000 and decreasing the unreserved, undesignated fund balance by the same amount, for the purpose of funding a settlement between the City of Fort Worth and the Employees' Retirement Fund of the City of Fort Worth.. SECT}ON 2. That should any portion, section yr part a# a sec#ion of this ordinance be declared invalid, inoperative or void far any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way irripair the remaining pariions, sections, or parts of sections of this ordinance, which said remaining provisions shat[ be and remain in full force and effec#. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 16582 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instanae said canflic#ing provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPRO ED A5 T FO ND LEGALITY: A~+statat,City Aftarney ~ep~~~ ADOPTED AND EFFECTIVE: May 30, 2006 C6~y ~a~ F®rt I/Vcarth, ~`ex~s fVla~®r and ~~u n~i I ~~rn ~ ~ icat~~n ~~_.. CO~~~C9L A.GTIG~N: Ai~~raved ct~ 5/30/2006 - Ordinance Na. `16968-05-200G CONTINUE® FROM A PREVIOUS WEEK ®ATE: Tuesday, May 23, 2006 LOC NAME: 12RET1RESETTLE REFERENCE N®.: G-15210 SUfr3JECT: Approve Settlement between the City of Fort Worth and the Employees' Retirement Fund Regarding a Dispute Over the Meaning and Intent of Section 604.051 of the Texas Labor Code, and Provide for the Payment of $2,800,000.00 REGOMMENI]ATION: It is recommended that the City Council: 1. Approve the settlement agreement between the City and the Employees' Retirement Fund of the City of Fort Worth {Fund}, 2. Adopt the attached ordinance increasing appropriations in the Risk Management Fund in the amount of $9,000,000.00 and decreasing fhe unreserved, undesignated fund balance by the same amount; and 3. Approve the payment of $2,800,000.00 to the Fund in three installments, without interest, as follows: {i) The first installment in fhe amount of $1,000,000.00 will be paid on or before the 60th day following the full execution of this Agreement; {ii} fhe second installment in the amount of $~ ,Oaa,ooo.©0 will be paid 12 months after the first installment is paid; and {iii) the third installment in the amount of $800,000.00 will be paid not later than 24 months after the first of these three installment payments are paid. DISCUSSION: The Fund and the City disagree regarding the intent, meaning and interpretation of Section 504.051 of the Texas Labor Code. The City has contended that it overpaid contributions to the Fund in the past and the Fund has contended that the City has failed to collect and pay pension contributions under Section 504.059 of the Texas Labor Cnde and its predecessor statutes. Having recognized the risks and expenses associated with litigating their respective claims, and desiring, instead, to resnive this dispute without admitting any wrongdoing or liability, the parties have decided to fully and finally settle and resolve their differences by executing an agreed upon settlement. The settlement provides for the City`s payment of $2,800,000.00 to the Fund in three payments as set out above. The City has also agreed to amend the existing Retirement Ordinance. Approval of this settlement should not be construed as an admission of liability by the City of Fort Worth, any liability being, in fact, denied. This settlement is entered into only to avoid further time consuming and costly litigation. FISCAL INFORMATI®NICERTIFICATIf)N: The Finance Director certifiies that upon approva! of the above recomendations and adoption of the attached apprapration ordinance funds will be avai{able in the current Operating Budget, as appropriated, Lognam~e: 12RETTRESETTLE Page t oft of the Risk Management Fund. TO FundlAccountlCenters ~E71~534030 0137110 $1 0~0 000.00 FROM FundlAccauntlC~nters FE71_53~€03a 0'337110 Submitted far_Cifiy Manager's Office by_ Richard Za~ala (Acting} {6222) Originating Departnne~t FieadW David Yett (7623) Additional lnformatian Contact: Gerald Pruitt {7616} ~, ~ ~ x $1 000 000.00 x Logzaame: 12RETIRESETTLE Page 2 of 2