NUMB:
991758
VERS:
SUBSTITUTE 1
REF:
XXBY:
THE CHAIR
TITL:
Substitute resolution appropriating $300,000 from the 2000 Contingent Fund to contract with a mailing and record keeping firm for the purpose of obtaining consent agreements with respect to the global pension settlement.
ANLS:
This resolution reserves $300,000 in the 2000 Common Council Contingent Fund (0001-9990-C001-006300) for expenditure City Clerk Operating Expenditures Account (0001-1310-C015-006300) to amend the public relations contract with respect to the global pension settlement to include mailing and record keeping services. The purpose of the contract amendment is to handle all correspondence related to the consent agreements that are to be sent to all members of the Employes' Retirement System.
BODY:
Whereas, The City of Milwaukee faces potential costs of several million dollars annually as a result of the various pension lawsuits; and
Whereas, There is no unfunded liability in the pension system taken as a whole and there are sufficient surplus reserves available in the pension system taken as a whole to pay the additional liabilities incurred by the system as a result of the losses in pension lawsuits; and
Whereas, The City of Milwaukee has expressed to union presidents, retiree representatives and pension board members that it believes there may be a legal basis to enforce a binding settlement agreement on pension litigation and other pension issues; and
Whereas, Execution of a settlement agreement will require the City of Milwaukee to communicate the settlement terms to pension fund members and the public; and
Whereas, Execution of a settlement agreement will require the City of Milwaukee to solicit and process individual waivers from all 25,000 members of the pension system: now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the sum of $300,000 be reserved in the 2000 Common Council Contingent Fund (0001-9990-C001-006300) for amending the existing public relations and communications services contract to include mailing and record keeping services related to the execution of a settlement agreement over pension related issues between the City of Milwaukee and ERS members; and, be it
Further Rresolved, That the City Comptroller, in cooperation with the City Clerk and the City Budget Director, shall establish an account within the Common Council Contingent Fund for expenditure through the City Clerk Operating Expenditures Account (0001-1310-C015-006300) with expenditure authority assigned to the City Clerk's Office; and, be it
Further Resolved, That all agreements for expenditure of funds pursuant to this resolution shall comply with s. 360-06-1, Milwaukee Code; and, be it
Further Resolved, That this account shall be treated as a special purpose account and therefore shall not be subject to the provisions of s. 16-05, City Charter, related to procurement procedures.
DFTR:
Budget and Management Division
Ref:99042: CDK:cdk
March 13, 2000
FINANCE:991758r2.doc