MEMORANDUM 05-119

TO: Mayor Hornaday and Homer City Council

THRU: Walt Wrede, City Manager

FROM: Sheri Hobbs, Personnel

DATE: June 27, 2005

RE: PERS Agreement Amendment

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Due to the recent decision of the legislature to eliminate the return to work program we are requesting to amend our agreement with PERS. We currently have five employees in the program and it would be a major impact to the department to lose these highly qualified and experienced officers. We will be developing a new job description for Police Officer IV’s. There will be no budget impact for the new job description. Police Officer IV’s will require more experience and will be a category specifically used for retired officers that have returned to work.

The amendment to our PERS agreement would exclude the Chief of Police and Police Officer IV’s. The City will receive a significant cost savings by excluding PERS and health insurance for these employees. The estimated annual savings for PERS and Health Insurance costs will be $91,690.00 per year.

STATE OF ALASKA

DEPARTMENT OF ADMINISTRATION

DIVISION OF RETIREMENT AND BENEFITS

P.O. Box 110203, Juneau, AK 99811-0203

PUBLIC EMPLOYEE’S RETIREMENT SYSTEM

PARTICIPATION AGREEMENT AMENDMENT No. 3

The Public Employee’s Retirement System Participation Agreement entered into between the State of Alaska (hereafter referred to as the State) and the City of Homer on May 1, 1986, and approved by the State on May 15, 1986, is amended effective July 1, 2005 by changing subparagraph A (2) on page 1 to read as follows:

A. (2)

The Political Subdivision agrees that (optional):

All permanent full-time employees (those whose positions normally require 30 or more hours of work each week) will participate in the PERS except for those employees in the following departments, groups or other classifications as designated by the Political Subdivision:

Excluding “seasonal employees as defined by AS 39.35.680 (37) and the Chief of Police and Police Officer IV employees”.

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Authorized Representative,

Walt Wrede, City Manager

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APPROVED:

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Administrator

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Date