Number
110875
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. MURPHY
Title
Substitute resolution authorizing the hiring of outside counsel for the purpose of reviewing legal issues concerning pension benefits and appropriating funds for this purpose.
Analysis:
This resolution appropriates up to $25,000 within the City Attorney's Outside Counsel/Expert Witness Special Purpose Account for the purpose of hiring outside counsel to review legal issues relating to the implementation of 2011 Wisconsin Act 10 as it affects employee contributions to the Employes' Retirement System.
Body:
Whereas, 2011 Wisconsin Act 10 required employees of cities of the first class, with certain exceptions, to pay all required employee contributions for the funding of their pension benefits and further prohibits their employers from making these contributions; and
Whereas, Common Council File Number (CCFN) 110740, a substitute charter ordinance relating to member pension contributions for certain city employes, in its current version (substitute 1), would require all general city employees to contribute 5.5% of their earnable compensation for the funding of their pension benefits; and
Whereas, The office of the City Attorney, in an opinion dated February 28, 2011, opined that a provision like that included in CCFN 110740 would not be legal and enforceable; and
Whereas, In a separate opinion, issued on May 17, 2011, the law firm of White, Hirschboeck, Dudek, S.C., opined to the Annuity and Pension Board of the Employes' Retirement System that the provisions of 2011 Act 10 that bear on the benefits of plan members should be interpreted in a manner consistent with the terms and conditions of the benefit contracts of these same members; and
Whereas, The potential liability to the taxpayers of the City of Milwaukee should CCFN 110740 be passed into law, challenged, and overturned might be substantial; and
Whereas, An independent opinion would assist in addressing the absence of an adequate response from the state of Wisconsin relating to the legal reasoning it applied to section 167 of 2011 Wisconsin Act 10; and
Whereas, The Common Council has determined to retain outside experts and legal counsel to provide a review of all germane legal issues; and
Whereas, The Outside Counsel/Expert Witness Fund Special Purpose Account is to be used by the City Attorney's Office for the purpose of retaining experts and outside legal counsel; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the City Attorney is directed to retain the services of Reinhart, Boerner, Van Deuren, S.C.,
subject to terms and conditions established by the City Attorney, to review the above-referenced information and other relevant material and to provide its opinion of the legality and enforceability of CCFN 110740; and, be it
Further Resolved, That the sum of up to $25,000 shall be reserved, appropriated and expended within the 2011 Special Purpose Account - Outside Counsel/Expert Witness Fund (006300-0001-1490-S157-2011).
Requestor
Drafter
CC-CC
jro
10/14/11