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1998-051City of Southlake, Texas RESOLUTION NO. 98-51 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE AUTHORIZING THE CITY MANAGER TO ENTER INTO ALL NECESSARY AGREEMENTS WITH THE EMPLOYEES RETIREMENT SYSTEM (ERS) TO EXTEND MEDICARE TO THE ELIGIBLE EMPLOYEES, THOSE HIRED BEFORE APRIL 1, 1986, OF THE CITY OF SOUTHLAKE BY HOLDING A REFERENDUM TO ACCEPT THIS BENEFIT FOR EACH INDIVIDUAL EMPLOYEE. WHEREAS, the City of Southlake has eleven (11) employees hired before April 1, 1986 who do not participate in Medicare; and WHEREAS, the City chose not to cover it's employees hired prior to April 1, 1986 when the new law came into effect, requiring Medicare coverage for new employees; and WHEREAS, coverage may be extended to employees hired prior to April 1, 1986 by following specific steps as set by the Employee's Retirement System (ERS) of Texas; and WHEREAS, ERS must supervise and certify an employee referendum on this issue in which employees have 90 days' notice before the referendum. Employees will vote on the referendum by written ballot and once elected, are prohibited from withdrawing from Medicare; and WHEREAS, contributions to Medicare include a 1.45 percent employee deduction and a 1.45 percent employer match for a total of 2.9 percent based on the current eligible employees' salaries; and WHEREAS, the City of Southlake estimates, that if all 11 employees participate, the cost will be 6,430.29 for the first fiscal year, and this amount is to be included in the fiscal year 1998 - 1999 budget; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: Section 1. That all matters stated in the preamble are true and correct and incorporated herein as if copied in their entirety. Section 2. That the City Manager is directed to work with the ERS to make all the necessary arrangements in order to complete and implement this benefit for the eligible employees. Section 3. That this resolution be in effect immediately upon its adoption. PASSED AND ADOPTED, this the { day of , 1998. Resolution No. Page 2 I AL -Z 0 ": v Mayor Rick Stacy gOU ATTEST: Vm City Secretary APPROVED AS TO FORM: City Attorney