HomeMy WebLinkAboutOrdinance 7330 ORDINANCE NO, / moo
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO
ENTER INTO ALL NECESSARY AGREEMENTS WITH THE
EMPLOYEES RETIREMENT SYSTEM OF TEXAS TO
SECURE FEDERAL OLD-AGE AND SURVIVORS INSUR-
ANCE BENEFITS UNDER APPLICABLE STATE AND
FEDERAL LAWS TO AND FOR EMPLOYEES OF D/FW
SURTRAN SYSTEM; DIRECTING THE EXECUTIVE MANA-
GER OF D/FW SURTRAN SYSTEM TO MAKE ASSESSMENTS,
COLLECTIONS, AND REPORTS; ORDERING THE ALLOCA-
TION OF SUFFICIENT AMOUNTS FROM AVAILABLE D/FW
SURTRAN SYSTEM FUNDS TO PAY THE CONTRACT AD-
MINISTRATION COSTS; AND PROVIDING AN EFFECTIVE
DATE,
WHEREAS, the D/FW SURTRAN System was established
by contract and agreement between the Cities of Fort Worth and
Dallas dated February 14, 1972; and
WHEREAS, D/FW SURTRAN System was covenanted and agreed
to operate as a separate division of the Dallas Transit System,
the contractually designated single operator of the D/FW SURTRAN
System; and
WHEREAS, D/FW SURTRAN System employees were at all
times contemplated as covered by the Federal Old-Age and Sur-
vivor's Insurance program through the Social Security Adminis-
tration in the same manner and to the same extent as Dallas Tran-
sit System employees; and
WHEREAS, administrative decisions of the Internal
Revenue Service and the Social Security Administration have
specified Federal Old-Age and Survivors Insurance program
benefits for D/FW SURTRAN System employees can be acquired
and maintained only thzough a contract for that purpose be-
tween the Cities of Fort Worth and Dallas on the one hand and
the Employees Retirement System of Texas on the other hand;
and
WHEREAS, the Dallas Public Transit Board has recom-
mended by resolution of March 17, 1976, that the City Councils
of the Cities of Fort Worth and Dallas take the necessary steps
to acquire and maintain social security coverage for the D/FW
SURTRAN System employees through the appropriate State agency
as determined by administrative rulings of the relevant Federal
agencies; and
WHEREAS, under the provisions of House Bill 603, Acts
52nd Leg. , R.S. 1951, as amended (Art. 6958, V.T.C.S.) and
1950 amendments to the Social Security Act, Public Law 734,
81st Congress, ch. 809, 2d Session [H.R. 6000] (particularly
those portions thereof presently identifiable as 42 USC 410
and 418) , incorporated cities of this state may enter into
agreements with the Employees Retirement System of Texas and
secure the benefits of Federal Old-Age and Survivors Insurance
as outlined in said laws; and
WHEREAS, it is the desire of this City Council to
authorize the making of any and all necessary agreements in
order to secure the benefits of said acts for D/FW SURTRAN
System employees only; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH:
SECTION 1
That pursuant to the recommendation of the Dallas
Public Transit Board, the City Manager of the City pf Fort
Worth be and is hereby authorized to execute a contract on
behalf of the City of Fort Worth and the D/FW SURTRAN System
with the Employees Retirement System of Texas for the purpose
of securing continuing coverage under and the benefits of the
-2-
Federal old-age and Survivors Insurance program for D/FW
SURTRAN System employees only, in accordance with the pro-
visions of state and federal law and the administrative
rules, regulations and determinations thereunder.
Section 2
That the Executive Manager of the D/FW SURTRAN
System be and is hereby designated the person responsible
for making assessments, collections, payments and reports as
required by the Employees Retirement System of Texas sub-
sequent to the execution of the contract authorized herein.
Section 3
That administrative costs, if any, due to the Texas
State Employees Retirement System for the administration of
such contract, be paid from available D/FW SURTRAN System funds.
Section 4
That nothing herein shall be construed in any manner
to apply to any department, agency or subdivision of the City of
Fort Worth and that the contract authorized herein shall pertain
to employees of the D/FW SURTRAN System only.
Section 5
That this ordinance shall be effective from and after
its passage,
APPROVED AS TO FORM AND LEGALITY:
- -�- o re&ataJ_
S. G. Johndroe, Jr. , City Attorney
ADOPTED: '7
V
EFFECTIVE
-3-
City of Fort Worth, Texas
SAUJFF Mayor and Council Communication
DATE REFERENCE SUBJECT: Social Security Coverage for PAGE
4/12/76 NUMBER SURTRAN Employees 1of 2
C-3369
When the D/FW SURTRAN System was established by contract and agreement dated
February 14, 1972, between the Cities of Fort Worth and Dallas, the System
was conceived and agreed to be the basis for a single operator of ground
transportation services for the Dallas/Fort Worth Regional Airport. Execu-
tion of the concept was vested in the Dallas Transit System (DTS) with the
SURTRAN System's general policy matters being and remaining with the respec-
tive city councils. For bookkeeping purposes, the SURTRAN activities of
DTS were, by agreement, to be kept separate and employees devoting their
efforts to SURTRAN objectives were or became, in due course SURTRAN employees.
It was anticipated that SURTRAN employees were or would be covered by Federal
Social Security, specifically the Federal Old-Age and Survivor Insurance
Program, just as DTS employees were and are.
Thus, at the end of SURTRAN's first quarter of operations, FICA tax deductions
from employees' salaries and SURTRAN's contributions to this account were
forwarded to IRS under D/FW SURTRAN System's assigned Employer's Account
Number. Similar deductions and contributions have subsequently and consis-
tently been withheld and submitted in a timely fashion. However, on June 26,
1974, the IRS made a determination that SURTRAN employees were not properly
covered by Social Security and that only through a series of agreements between
the cities and the state and, in turn, the state and the Social Security
Administration, could the coverage everyone thought was being afforded be, in
fact, extended. Subsequent substantial effort by the Dallas City Attorney's
office has not resolved the impasse nor simplified the procedure.
The State requires City Council authorization and direction of an appropriate
official to contract with the state for Social Security coverage of the con-
templated category of employees, i.e. SURTRAN employees. The state will then,
in turn amend its agreement with the Social Security Administration to cover
this "separate coverage group."
It is anticipated that a nominal administrative fee not to exceed $200 per
year will be charged by the state to service the SURTRAN group account (cal-
culated at the rate of 25 cents per employee per quarter) . This cost will
become a part of SURTRAN's budget. No additional costs are known or contem-
plated.
The Dallas Public Transit Board passed a resolution at its meeting on
March 17, 1976, authorizing the Executive Manager of the D/FW SURTRAN System
to enter into the necessary contract in order to secure the benefits of the
Federal Social Security Act, Title 42, Section 418, U. S. Code, in accordance
with the provisions of Article 6958, V.A.C.S. , and has recommended to the
respective City Councils that the necessary steps be taken to secure social
security coverage for D/FW SURTRAN employees through the appropriate state
agency in accordance with rulings of the Federal Social Security Administra-
tion.
DATE REFERENCE SUBJECT: Social Security Coverage for PAGE
NUMBER
SURTRAN Employees 2 of 2
4/12/76 C-3369
Recommendation
It is recommended that the attached ordinance be adopted:
1) Authorizing the City Manager to execute a contract with the
State of Texas Employees Retirement System to obtain, through
that agency, the benefits of the Federal Old-Age and Survivors
Insurance for the employees of SURTRAN; and
2) Designating the Executive Manager of SURTRAN as the person
responsible for making the necessary assessments, collections,
payments and reports.
RNL:ms
Attachment
SUBMITTED BY: DISPOSITIO Y COUNCIL: PROG�SSED BY
/ APPROVED / ❑ OTHER (DESCRIBE)
eftSECRETARY
DATE
CITY MANAGER /