RESOLUTION No. SUBSTITUTE 36287

Create an independent Citizen Review Committee to oversee a comprehensive analysis of the Portland Fire and Police Disability and Retirement (FPD&R) system.

WHEREAS,  the City Council is committed to working collaboratively with all stakeholders in analyzing and recommending changes to the FPD&R system; and

WHEREAS, the City Council is committed to creating a process for analyzing FPD&R

that is free from any real or perceived bias; and

WHEREAS,  the City is committed to employing and training diverse, highly qualified, extremely effective people in its Police and Fire Bureaus; and

WHEREAS,  the City understands the unique and often dangerous circumstances that the requirements of these jobs place Police Officers and Fire Fighters in; and

WHEREAS,  the City must maintain a strong, fiscally sound retirement and disability system to uphold our commitment to Police and Fire employees and retirees and their families; and

WHEREAS,  the City Council has an obligation to the taxpayers of the City of Portland to be a responsible steward of the public’s resources; and

WHEREAS,  each year the City must levy a significant amount of property tax dollars from its citizens to pay for that year’s FPD&R pension obligations; and

WHEREAS,  concerns have been raised about the disability system administered by the FPD&R Board of Trustees; and

WHEREAS,  concerns have been raised about the impact of not pre-funding the retirement benefits of Portland firefighters and police officers.

NOW, THEREFORE, BE IT RESOLVED, that City Council directs the creation of an independent nine-person citizen review committee (“Independent Committee”), whose membership will be approved by a separate resolution brought by the Mayor to Council on February 9, 2005, to oversee a comprehensive analysis of the FPD&R system; and

BE IT FURTHER RESOLVED, that the subject matter of the Independent Committee’s report to council shall include:

1)  An independent analysis of the actuarial projections relied on by the FPD&R Board;

2)  An assessment of potential options for fully or partially pre-funding, the pension portion of the FPD&R system;

3)  An assessment of the possibility and effects of placing new hires in PERS, Workers Compensation and Social Security;

4)  A comparison of FPD&R’s pension and disability costs with PERS, Workers Compensation and Social Security, including Portland PERS firefighters and police officers, as well as with other comparable public safety systems;

5)  A detailed analysis of FPD&R’s disability costs, including but not limited to, case management; doctor review, periodic review of the long-term disabled, subrogation and an assessment of the actual and potential impact of limited duty positions in the Bureaus, including the impact on FPD&R disability costs of the decision by Council to eliminate light duty positions within the Fire and Police Bureaus;

6)  An assessment of the impact that having Portland’s public safety employees on an independent system has on recruitment and retention of public safety employees;

7)  An assessment of legal and other issues pertinent to the analysis mentioned above;

8)  A determination regarding which, if any, of the potential changes to FPD&R identified by the Independent Committee would require a vote of the people to change the City’s Charter.

BE IT FURTHER RESOLVED, that the Independent Committee will be assisted in its assessment by a FPD&R Technical Committee, comprised of an equal number of Office of Management and Finance and FPD&R staff. Initially each office shall provide 3 staff members to support the Independent Committee. Should additional staff support be needed, it shall be supplied equally by the Office of Management and Finance and FPD&R. The Technical Committee will also consist of members of the City Attorney’s Office to assist in answering questions regarding the City’s Charter and any legal issues relating to the relationship between the FPD&R fund and the City. Specific legal questions regarding disability and pension issues will be handled by outside counsel hired by the Independent Committee; and

BE IT FURTHER RESOLVED, that all costs associated with the Independent Committee, including contracting with an independent actuary, disability consultant, legal consultant and/or retirement consultant, will be funded by the Office of Management and Finance and the FPD&R Board of Trustees. However should either party decide to cease, or limit, their funding for any reason, the other party can fully fund the study; and

BE IT FURTHER RESOLVED, the Independent Committee shall direct the work of the FPD&R Technical Committee as well as any consultants that the Independent Committee decides that it needs to assist it in its analysis; and

BE IT FURTHER RESOLVED, that the Independent Committee will report back to City Council no later than January 1st, 2006. If the Independent Committee can not reach a consensus, then there shall be a majority report and a minority report.

Adopted by the Council: January 26, 2005

             GARY BLACKMER

Mayor Potter, Commissioners Adams,    Auditor of the City of Portland

Leonard, Saltzman and Sten

Prepared by: Jeff Cogen        By /S/ Colleen Phillips

January 24, 2005            Deputy

BACKING SHEET INFORMATION

AGENDA NO. S 60-2005

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. SUBSTITUTE 36287