For City Council Meeting [December 14, 2021]
TO: Honorable Mayor and City Council
FROM: Marcus Fuller, City Manager
Eric S. Vail, City Attorney
Title
Request City Council to Receive and File a Report from the City Attorney regarding Payment of Deferred Compensation to 401(a) Money Purchase Pension and Trust Accounts Due to Eligible Elected City officials serving between July 1, 2014, and the Current Date.
Body
SUMMARY OF CONCLUSIONS
It was brought to the attention of the City Manager and City Attorney that elected City officials, Mayor, Mayor Pro Tem, Council Members, City Clerk and City Treasurer ("Elected Officials") were not receiving City paid contributions to 401A deferred compensation accounts previously established for Elected Officials and approved by the City Council. It has also been asserted that these payments should have commenced at some time between 2001 and 2014. This Report only addresses paid contributions to a City-established 401A account for Elected Officials and does not address any other retirement or health and welfare benefits.
The Offices of the City Manager and City Attorney undertook an investigation into this matter and having reviewed the relevant City records have reached the following conclusions:
1. There is no evidence (e.g. resolutions, minutes, agreements etc.,) documenting that the City Council authorized Elected Officials to receive the same City-paid contribution to a 401A account as was provided by the City to the City Administrator between June of 2001 and January 2003.
2. In December of 2003, the City Council adopted Resolution 5058 authorizing Elected Officials to receive the same health, welfare and cost reimbursement benefits as received by members of the City Government Management Employee Association ("CGMA") commencing January 1, 2003.
3. Between January 1, 2003 and July 1, 2014, Elected Officials were not entitled to City-paid contributions to a 401A account because Elected Officials where only ent...
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