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Ord 28-04ORDINANCE NO. 28-04 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELILAY BEACH, FLORIDA, AMENDING SECTION 35.105, "ADMINISTRATION BY RETIREMENT COMMITTEE BY AMENDING SECTION 35.105(A)(1), TO PROVIDE FOR THE NAMING OF THE POSITION OF FINANCE DIRECTOR, AS A MEMBER OF THE BOARD AND PROVIDING THAT THE FOUR OTHER MEMBERS MAY BE CITY OFFICIALS OR EMPLOYEES AND SHALL BE APPOINTED BY THE CITY COMMISSION, PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the Attorney General in Opinion 2004-05, addresses the issue of ex officio membership on boards; and, WHEREAS, this amendment is intended to conform the City's ordinance to the Attorney General's Opinion. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH AS FOLLOWS: Section 1. That Section 35.105 of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 35.105(A)(1) to read as follows: (A) [Retirement Committee Established] (1) The plan will be administered by the Retixement Committee (herein referred to as the Committee) appointed by the City Commission, consisting of a Chairperson and four (4) additional members. One member shall be the Finance Director of the City.. Each member may, but need not, be an official or employee of the City, and each member shall be appointed by the City Commission to serve until a successor is appointed in like manner. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective mediately upon its passage on second and final reading. PASS,~N~D ,ADOPTED in regular session on second and final reading on this the . . day of'"'~////~ ,2004 City Clerk First Reading~'~ Second Reading~ 2 ORD. NO. 28-04 MEMORANDUM TO: FROM: SUBJECT: MAYOR AND CITY COMMISSIONERS CITY MANAGER~ AGENDA ITEM ~, {D°-. - REGULAR MEETING OF MAY 18. 2004 QRDINANI~E NO, 28-04 (.AMENDING CHAPTER 35. "EMPLOYEES PQLICIE$ AND BENEFITS", SELTrION 35.105. "ADMINISTRATION BY RETIREMENT COMMITTEE") DATE: MAY 14, 2004 This ordinance is before Commission for second reading and public heating to amend Chapter 35, "Employee Policies and Benefits", Section 35.105, "Administration by Retirement Committee", by mending Section 35.105(A)(1), to provide for the naming of the pofflfion of Finance Director as a member of the board. At the first reading May 4, 2004, the Commission passed Ordinance No. 28-04. Recommend approval of Ordinance No. 28-04 on second and final reading. S:\City Clerk\agenda memo. Ord 28.04. General Employees Rem~ment PIm 0S.I 8.04 rlTY OF nELRI:IY BEI:IrH CITY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 Wdter's Direct Line: 561/243-7091 DELRAY BEACH DATE: TO: MEMORANDUM April 23, 2004 City Commission David Harden, City Manager FROM: Susan A. Ruby, City Attorney SUBJECT: Ordinance No. 28-04- Amending the General Employees Retirement Plan This ordinance seeks to address the matter raised in Attorney General Opinion 2004-05, wherein membership on City boards by a person deemed to be a public officer is allowed, if the position is specified in the ordinance as being required as par~ of the membership. Please place this ordinance on the May 4, 2004 agenda for first reading. Attachment Cc: Barbara Garito, City Clerk Jeff Keating, Chairperson, General Employee Pension Board Joe Safford, Director of Finance Sherry Muehlberg, Administrative Assistant ORDINANCE NO. 28-04 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING SECTION 35.105, "ADMINISTRATION BY RETIREMENT COMMITI'EE BY AMENDING SECTION 35.105(A)(1), TO PROVIDE FOR THE NAMING OF THE POSITION OF FINANCE DIRECTOR, AS A MEMBER OF THE BOARD AND PROVIDING THAT THE FOUR OTHER MEMBERS MAY BE CITY OFFICIALS OR EMPLOYEES AND SHALL BE APPOINTED BY THE CITY COMMISSION, PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the Attorney General in Ot~mion 2004-05, addresses the issue of ex officio membership on boards; and, WHEREAS, this amendment is intended to conform the City's ordinance to the Attorney General's Opinion. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH AS FOLLOWS: Section 1. That Section 35.105 of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 35.105(A)(1) to read as follows: (A) [Retirement Committee Established] (1) The plan w'dl be administered by the Retirement Committee (herein referred to as the Committee) appointed by the City Commission, consisting of a Chairperson and four (4) additional members. One member shall be the Finance Director of the City.. Each member may, but need not, be an offic'ml or employee of the City, and each member shall be appointed by the City Commission to serve until a successor is appcfmted in like manner. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shah not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective mediately upon its passage on second and final reading. the PASSED AND ADOPTED in regu]at session on second and final reading on this day of ,2004 A'ITEST: MAYOR City Clerk First Reading Second Reading 2 ORD. NO. 28-04 ATTORNEYS AT LAW Helping Shape Florida's Futurea ERiC ASH l~sr~ K. B~Err W. O. Bmcmn~a~ wr~tol G. ~o E~ D~ Jo~ J. ~ www.lhv-law.¢om Jac~onv/Be 9428 Baymeadows Road Suite 62~ Jack~onville~ Florida 322~6 (904) 73%2020 Fait: (904) 9373221 Post Office Box 10788 (32302) 125 South Gadsden Street Suite ~0 Tallaha~ee, Florida (g$O) 222-$702 Fax: (~) 224-9242 F/eu Pa/m Beach O2~ce 1700 Palm Beach L~kes Boulevard, S~ W~t Palm ~aeh, (~1) ~ Fax: (~1) REPLY TO: TO: Susan Ruby, City Attorney City of Delray Beach FROM: Jim Linn and Glean Thomas DATE: April 9, 2004 RE: Pension Board Members: Dual Office Holding A recent Florida Attorney General Opinion (2004-05) addresses the issue of whether a city council member may serve on one or more of the city pension boards and whether members of one pension board may simultaneously serve on another pension board. This memo considers the application of that opinion to Dekay Beach Pension Plans. The City's plans provide for pension board membership as follows: City of Delray Beach General Employees, Retirement Plan The plan will be admlni~tered by the Retirement Committee (herein referred to as the Committee) appointed by the City Commission, consisting of a Chairperson and four (4) additional members. Each member may, but need not, be an official or employee of the City, and each member shall be appointed by the City Commission to serve until a successor is appointed in like manner. Section 35.105, Delray Beach City Code. The City of Delray Beach Police and Firefighters, Retirement Plan The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of this subchapter are vested ' . · tn a Board of Trustees consisting of nine (9) persons as follows: (1) Thc Mayor; (2) Two (2) public members to be appointed by City Commission as hereinafter provided; (3) The Fire Chief or, in the event of the Fire Chiefs termination of participation in the system, a fircfighter designated by the Fire Ch/el; Memorandum April 9, 2003 Page 2 (4) The Police Chief or, in the event of the Police Chiefs termination of participation in the system, a police officer designated by the Police Chief; (5) Two (2) members of the Fire Department to be elected as hereinaf/er provided; (6) Two (2) members of the Police Department to be elected as hereinafter provided. Section 33.65, Delray Beach Code Analysis The Florida Constitution generally prohibits a person from serving on more than one state, county, or municipal office simuitaneously. Specifically, Article II, Section 5(a), Florida Constitution states: "No person shall hold at the same time more than one office under the government of the state and the counties and municipalities therein, except...any officer may be a member of a...statutory body having only advisory powers." In AGO 2004-5, the Attorney General points out that underlying this provision is the concern that a conflict of interest will arise by dual office-holding when the duties of the office are inconsistent. However, the opinion concludes that when additional duties are assigned to a constitutional officer and there is no inconsistency between duties, the prohibition on dual office-holding would not preclude such an assignment. The First Dis~ct Court of Appeal held that there is nothing inherently inconsistent or incompatible in service by elected or appointed city officials as representatives on the city's pension boards s o a s t o s ay t hat i t presumptively violates t he prohibition against d ual o ffiee- holding in Article II, Section S(a). City of Orlando v. Deoartment of Insurance 528 So. 2d 468 (Fla. 1St DCA 1988). In the past, the Attorney General has stated that a board of county commissioners may by ordinance designate the members of the county commission to serve as members of a board of adjuslment when the additional duties are imposed on the commissioners by virtue of their membership on the county commission. AGO 94-66. The AG has also concluded that service by a mayor and other city council members on the board of trustees of a police and fireflghtar pension board did not violate the constitutional prohibition against dual office-holding where the city code required such service. AGO 94-98. According to AGO 2004-5, the express imposition of an additional or ex officio duty on a city official is the central factor in determining whether there is constitutionally prohibited dual office-holding. The city code at issue in AGO 2004-5 states that members of the board of trustees of the general employees' retirement system "shall be permitted to serve on any other board duly formed by the city." The opinion concludes that this language is insufficient to impose on members of the general employees pension board the ex officio duties of serving on another board that constitutes an office for purposes of dual office-holding. Similarly, because nothing in the code imposes on members of the police or firefighter pension boards the duty to Memorandum April 9, 2O03 Page 3 serve o n another pension board, t he simultaneous scrvice b y such board m embers o n another board would violate the prohibition on dual office-holding. However, the city code addressed in AGO 2004-05 does impose ex officio duties on a city council member to serve on the general employees pension board, where the code provides that "Thc board of trustees of thc city general retirement system consists of: (1) One member of the city council to be appointed by the city council." Therefore, a city council member appointed by the city council may serve on the board of trustees of the general employees' retirement fund without violating the prohibition on dual office-holding. Conclusion In our opinion, the language in the General Employees' Retirement Plan is not sufficiently clear and unambiguous as to impose ex-officio duties on a specific City official to serve on the retirement committee. Therefore, the plan should be amended if the City desires that elected or appointed officials be appointed to that committee. It is our understanding that the City Finance Director is considered to be an officer of the City, and CmTently serves on the retirement committee. Accordingly, the plan should be emended to specify that the Finance Director is a member of the committee. The language of the Police and Firefighters' Retirement Plan is, in our opinion, sufficient clear as to impose ex-officio duties on the Mayor to serve as a member of that pension board without violating the prohibition against dual office-holding Please call if you have any further questions regarding this matter. www. becanews.cem --Boca Ru~Delray Beach Nows ~- Ffiday~ May 7; 2004 ', ~25" ANNOUNCEMENTS LEGAL NOTICES