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HomeMy WebLinkAbout1993 Ordinance No. 023• ORDINANCE NO~ SERIES OF 1993 BY AtrrHORJTY COUNCIL BILL NO. 17.2 INTRODUCED BY COUNCIL MBYBBR GULLEY AN ORDINANCE AUTHORIZING THE TRANSFER OF FUNDS FROM THE CrI'Y OF ENGLEWOOD VOLUNTEER FIREMEN'S PENSION FUND TO THE CITY OF SHERIDAN VOLUNTEER FIREMEN'S PENSION FUND. WHEREAS, on August 20, 1985 the City of Englewood entered into a Mutual And Automatic Aid Agreement with the City of Sheridan; and WHEREAS, said Agreement was for the benefit of both cities t,.✓ each party giving service to the other party in order to aid and assist in the purpose off!;:htinc fires or respondinc to other emergencies; and WHEREAS, a&id Agreement also set forth that members of the Englewood Volunteer Fire Department who al10 oerve a1 volunteers on th e Sheridan Fire Department would continue to be entitled to pension benefits paid by Englewood; and WHEREAS, the Volunteers who terminate their membership with Englewood and continue or transfer their membership to the Sheridan Fire Department co uld transfer their pension benefits to Sheridan only as permitted by the law, of the State of Colorado; and WHEREAS, auch trRnsferred pension benefits would be administered in accordance with the ordinances of the City of Sheridan, Colorado, the laws of the State of Colorado, and any policies then in effect or thereafter adopted; and WHEREAS, the transfer of$56,034.00 reflects benefits payable as set forth in the Eva luation by Mercer, Inc.; ..... NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO , AS FOLLOWS: ~-The Englewood City Council hereby approves the transfer of funds from the City of Englewood Volunteer Firemen's Pension Fund to the City of Sheridan Volunteer Firemen's Pension Fund in the sum of $56,034 .00. ~-The Englewood City Council hereby ap~rovea the attached relea se of claims settlement agree ment marked aa "Exhibit A" and an Agreem'ent To Transfer Funds marked as "Exhibit B". Introduced, r ead in full, and passed on first reading on the 19th day of April, 1993 . -1 - 10 a Published u a Bill for an Ordinanot on the 22nd ~ of April, 1993. Tabled on the 3rd ~,. of May, 1993. Read by tiU. and palMd on final reading on the 17th day of May, 1993. Published by title u Ordinance N~, Series or 1993, on the 22nd day of May, 1993. ATTEST: ~/~~~! Pairicia H. Crow , City Clerk I, Patricia H. Crow, City Clerk of the City or Englewood, Colorado, heroby certify that the above and forecou,g i1 a trw, copy of the Ordinance pa ned on fin&) roading and published by title as Ordinance No...23., Series or 1993. ~lU~LL.w Patricia H. Crow -2- • • • EXHIBIT A MUTUAL RELEASE AND IIETl'LllMENT KNOW ALL MEN BY THESE PRESENTS: ThaL thr· undersigned, THE CITY OF ENGLEWOOD, COLORADO, for sole con si deration of ____ and ___)100 DOLLARS ($____) to be paid to THE CITY OF SHERIDAN, COLORADO , do hereby and for our age 11ts, administrators, successors, volun teers and assigns, release, acquit and forever discharre the CITY OF ENGLEWOOD and/or its agents, servants, successors, hein, necutors and administrators of and fTom any and alJ claims , actions, causes of action, demands, rights , damages, costs, loss of' service , expenses and compen sation whatsoover, which the undersigned now has or which may hereafter accrue on account of or in any way growing ou t of any and an known and unknown, for esee n and unforeseen injury. injuries or damage and the con.sequences thdefor resulting or to result from the acts or events, including all damage or poten tial damage claimed by the City of Sheridan and its Volunteer Fire Department Generally the damage or potential damage arise~ from the Englewood Volunteer Fire fighting transferring to Sheridan Fire Department. Liability includes but is not limited to any injury to any person whether known or unknown; damage includes possible future injury or 101& as a rtault. It is undenU>Od and ail'ffd that this settl•ment is the compromise of a claim and that the payment made is not to be construed as an admission of liability on the part oltbe party or parties hereby released, and that said releases deny liability therefor and intend merely to avoid litigation . Furthermore, this Release is intended to operate as a rtleue of whatever claims the undersigned and the Volunteen.may have against the CITY OF ENGLEWOOD directly or indirectly. The City of Sheridan agrees to assume full liability to the Volunteen for payment of the Volunteers lawful pension . The undersigned hereby declare(s) and repruenUs) that the injuries/damages sustai ned are or may be permanent and proe,essive and that in making this Release, it is understood and agreed, that the undersigned rely(ies) wholly upon the undenigned's judgment, belief llnd knowledge of the nature, extent, effect and duration of said injuries and liability therefore and is made without reliance upon any statement or represantation of the party or parties hereby re leased. DR,I.Fl' 1 i,<;H!.)3 The under1icned farther dadare(1) or rapreMnt(1) that ao promiM, inducement or -,nement not hel'ein upre11ed bu been made to the undenicned, and that thi1 R.leaM contain■ the entire ai"ffment between tho parties hereto, and that the term, of this Relta1e are contractual and not mere recital. 11IE UNDERSIGNED BAS BEAD 11IE FOREGOING RELEASE AND FULLY UNDERSTANDS IT: Signed , sealed and delivered thi1 ___ day of _____ 1993. CAUTION: BEAD BEFORE SIGNING CITY OF SHERIDAN" ~-------- ATTEST : Title: ,Citya.rit STATE OF COLORADO COUNTY OF ARAPAHOE On the __ day of ______ 1993, before me penonally appeared _______ to me known to be the person(s) named herein and who executed the foregoing Mutual Release and Settleaw,t and acknowledced to me that the ■ame was voluntarily executed. Notary Public My Commission Expires : -2- • • • DR.sn: l :lfJl,191 CITY OF ENGLEWOOD By. ______ _ TTEST : Clyde E. W-,aina, Mayor Patricia H. Crow, City Clerk STATE OF COLORADO ) ... COUNTY OF ARAPAHOE On the __ day of-----~ 1993, before me personally appeared _______ to me known to be the person(s) named herein and who executed the fortl')inc Mutual Releue and Settlement and acknowledpd to me that the same wu voluntarily executed. Notary Public My Commission Expires : -3 - EXHIBIT B AGREEMENT IQ TRANSFER FUNDS TIIIS AGREEMENT is made thi~ day of . , 1993, between the Trustees of th~ City of Sheridan Volunteer Fire Pens wn Board ("SVFPB ") and the City of Englewood ( "Englewood"). RECITALS A The City of Sheridan ("Sheridan") is a statutory city an d e.'Cists pursuant to Colorado laws and is located within Arapahoe County. The City of Englewood ("Englewood") is a municipal corporation organized and existing pursuant to Article XX of the Colorado Constitution and is located within Arapahoe County . B. Both cities established volunteer fire departments. Sheridan presently maintains a volunteer fire department ("Sheridan Volunteers"), and SVFPB is the truste e for the Sheridan Volunteers ' pension fund . However, Englewood bas discontinued its volunteer fire department ("Englewood Volunteers "). C. On August 20, 1985, Sheridan and Englewood entered into a Mutual and Automatic Aid Agreement ("Mutual Aid Agreement"). Pursuan t to the Mutual Aid Agreement members of the Englewood Volunteer Fire Department who also serve as volunteer.' on L~e Sheridan Fire Depanment may transfer their pension benefits to She ridan . 3uch tranSferred pension benefits shall be administered in accordance with the • ordinance of Sheridan, the laws of the State of Colorado, and any policies now in effect or hereafter adopted. NOW, lHEREFORE, in consideration of the promise of each party to the other as set forth in this Agreement, Plaintiffs and Defendant agree as follows : 1. Amount of Transfer . Englewood agrees to transfer Fifty-five Too~sand Three Hundred and Thirty-three Dollars ($55,333) to SVFPB on or before April 1, 1993 . 2. Purpose of Transfer. The parties agree that purpose of this transfer is to effectuate paragraph 4 of the Mutual Aid Agreement entered into between Sheridan and Englewood on August 20, 1985, which provides: Pension Benefits . Members of the Englewood Volunteer Fire Department who also serve as volunteers on the Sheridan Fire Department will continue to be entitled to pension benefits paid by Englewood . Volunteers who terminate the ir membership with Englewo od and continue or transfer their membership to tl-.e Sheridan Fire Department may transfer the ir pension ber.efits to Sheridan only as perntitted by the laws of the State of Colorado. Such transferred pension benefits shall be administered in accordance with the ordinance of M&rclr, J\, 1"1 • • Sheridan, the laws of the Smte of Colorado, and aoy policies now in effect or hereafter adopted 3. Transferrine Fjrefiehters. The parties a&ree that all the Englewood Volunteers transferred their membership to the SVFD and these Englewood Volunteers elected to transfer their pension benefits to the SVFD. As of the date of this Agreement, the parties have been able to verify that the following firefighters transferr:::d from Englewood and are entitled to pension benefits from Sheridan: ~ Carlson Fritz Junk Peterson Sovern EneJewood Seryjce liWII Io 3/24_/75 7/9/84 ~_,24 /75 7/9/84 3/15 /78 7/9/84 11/15 /79 7/9/84 9/1/68 7/9/84 Retirement Date 4/1/95 4/1/95 2/1/09 12 /1/99 4/1/94 4. Newiy Identified fjrefiehters. The parties agree that these individuals transferred from Englewood to Sheridan and are entitled to pension benefits from Sheridan. If other individuals are later identified and Sheridan can prove that they transferred from Englewood.;uid are entitled to pension benefits from Sileridan, then the Mutual Aid Agreement will control. 5. Tjnkey's Pensjon Benefits . Sheridan agr,:es that it is solely responsible for Edward Tin.key's pension benefits since be discontinued his service with Englewood in 1983 and thus was not governed by the Mutual Aid Agreement 6. Addjtiona) Documents. Plaintiffs and Defendant agree to pr11mptly execute any and all additional documents reasonably necessary to effect this Agreet'lent. By· Title: Cl1Y OF SHERIDA.~ VOLUNTEE.t FIRE PENSION BOARD ATTEST: THE CfIY OF ENGLEWOOD By : TI tie : ______________ _ ATTEST: • 3 • Man:IIJl ,lfln • •• COUNCIL COMMUNICATION April 19, 1993 Agenda Item 11 -c Subject Volunteer Firefighters Pension Plan Agreement with Sheridan INillA TI:D BY Firefighters Pension Board STAFF SOURCE Lorraine Hayes, D; rector of Financial Services ISSUE/ ACTION PROPOSED J Staff recommends City C Juncil approval of an ordinance authorizing the transfer of funds from the City of Englewood Volunteer Firefighters' Pension Fund to the City of Sheridan olunteer Firefig hters' Pension Fund. PREVIOUS COUNaL ACTION lhis information was included on the agenda for the April 5, 1993 City Council meeting . At that meeting, Council tabled this item pending a final agreement with Sheridan. BA CKGROUND May 3, 1991 : The City of Sheridan's attorney sent a letter to the City of Englewood's Firefighter Pension Board ~rting that the City of Englewood should transfer its volunteer pension fund assets to the City of Sheridan. He interprded state statutes to support Sheridan's claim to Englewood's pension assets . He request.:d that the city's actuary deter• mine the amount to be sent to Sheridan, and tha.t Englewood transfer these assets lo Sheridan as soon as feasible . March 24,1992 : Al its board meeting, the Firefighter P"'nsion Board considered a recommen- dation developed by Lorraine Hayes as Pension Plan r. ministrator and Pension Board member. The materials reviewed by the board includeQ 1. A memo from Lorraine Hayes lo City Attorney ick DeWitt analyzing the state statutes. It concluded that the statutes do 1 ,1 support Sheridan's claim to Englewood's volunteer pension funds . 1 e slatulen instead serve to limit Englewood's liability for volunteer pensio1 payments only lo one of the volunteers who served both jurisdictions. P11 "l lld on Re cvcl1a P1pe1 ~ The memo recommended that L',e pension board pursue the following course of action : Apprise Sheridan of Englewood's arguments based on state statutes. Make clear that the board believes Englewood has a strong case against transferring any money to them and against assisting their volunteer pension fund in .my way. Offer to cooperate with Sherida., anyway for the best inter- ests of the volunteers who have served both muni--ipalities. Consider offering: a . to increase our monthly pension amount from $100 to $200 to matc11 Sheridan's rate . b . to enter in to a special agreement to co ntribute fund s from our ~-ension plan tci Sheridan's pension plan to compensate Sheridan for the pensionable yP.ars of ser- vice that their volunteers earnui with Englewood . 2. A memo from Rick DeWitt to Lorraine Hayes agreeing with her n . .!Illo and recommendations . 3. An issue paper defining the iss ue, discussing its background, analyzing the statutes, and outl ining recommendations . 4. A draft of a letter to send to Sheridan's attorney based on the recommenda- tions in 1umber 1 above . The board voted to proceed in accordance with these recommendations . Copies of these items are attached . Marm 26, 1992 : Ch ris Olson, Chairperson of the Fire Pension Board, sent the offer letter to Sheridan's attorney . April 10, 1992 : Sheridan's attorney requested actuarially calc ulated amounts that would correspond with Engl ewood 's offer . August 5, 1992: Our actuary sent u s the prepared calcul ati ons . October 8, 1992: Board reviewed actuarial calcul ations. They were in conformance with tl1e offer made in Marm. •• • October 9, 1992: Chris Olson wrote Sheridan 's attorney to relay amount of calculations, • whim was $5 1,289 . • • • February 23, 1993 : Sheridan's atto ey wrote Rick DeWitt stating t. , Sheridan had accept- ed our offer to transfer enough funds to cover our share of the pension benefits for Sheridan volunteers who also participated in Englewood 's pension plan. · STAFF ANALYSIS The settlement will amicably resol ve a longstanding issue with Sheridan. It will also greatly benefit En gle wood 's Firefighter Pension Plan. Per state statutes, cnce the obligations 0f the volunteer pension plan are satisfi ed, any surplus assets can be used to offset any unfunded liability of the old hire firefigh ters pension plan . By resolving the volunteer issue with Sherid an, all excess volunteer assets (about $400,000) will be transferred to the old hire plan . The actuary's calculation of the amount to be transferred to Sherida, is based on the present val ue of the future pension benefits due to the volunteers involved . TI,e present value amount changes slightly each day. If the ordinance approving this intergovernmental agree- ment is adopted on final reading on May 3, 1993, it would become effective June 5, 1993 . Therefore, 5i56,034 would be transferred to Sheridan on June 7, 1993, which is th e next busi- ness day. Any changes in the ti.meframe will vary thi s amount slightly. FINANCIAL IMPACT The infusion of cash to the Eng lewood Firefighters Pens ion Plan will substantially improve the fmandal position of the plan, an d significantly help to address the unfunded liability which has plagued the plan fo r years .