2017-387ORDINANCE NO. 2017-387
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN AGREED
AMENDMENT TO ARTICLE 12 OF THE EXISTING MEET AND CONFER AGREEMENT
BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION,
RELATING TO THE FUNDING OF FIRE PENSIONS; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, after negotiations among administrative representatives from the City
Manager's Office, the Denton Firemen's Relief and Retirement Fund Board, and the Denton Fire
Fighters Association, the proposed amendment to Article 12 of the current Meet and Confer
agreement between the City of Denton and the Denton Fire Fighters Association (the
"Agreement") was reached, relating to the funding of fire pensions; and
WHEREAS, the proposed Agreement has already been reviewed and formally approved
by vote of the Denton Fire Fighters Association and the Denton Firemen's Relief and Retirement
Fund Board; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee, is hereby authorized to execute the
attached Agreement, in substantially the form of the agreement attached hereto and made a part of
this ordinance for all purposes.
SECTION 2. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the Jc' day of J, 2017.
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111WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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APPVED M TO LEGAL FORM:.
,BAR N LEAL, CITY ATTORNEY
BY: /s/ Jerry E. Drake, Jr.
Addendum to Meet and Confer Agreement
Between the City of Denton and
Denton Fire Fighters Association, UFF Local 1291
This addendum constitutes a written agreement in accordance with sec. 142.117, and
preempts, to the extent of any conflict, all contrary state statutes, local ordinances, executive
orders, civil service provisions, and rules adopted by the head of the fire department and the City
of Denton, and by any division or agent of the City, such as a personnel board or a civil service
commission, including the Denton Firemen's Relief and Retirement Fund (DFRRF), including but
not limited to Article 6243e, Vernon Texas Civil Statutes and Texas Government Code Title 8,
Subtitle A.
Additionally, this addendum includes the DFRRF to the extent necessary to accomplish
the objectives stated herein.
Therefore, by agreement of the parties, Article 12 of the Meet and Confer Agreement is
hereby replaced in its entirety by the following:
Article 12
Pension
Section 1, It is the intent of the parties to develop and adopt a funding policy for the Fund
which achieves a 100% funding ratio over a closed 25 -year amortization period.
Section 2, The City will increase its current contribution level to the DFRRF to 18.5% of
compensation beginning with the first pay period after the effective date of this agreement. Each
year of this agreement, the City's contribution level will be based on an actuarial study which
calculates the rate needed to amortize all unfunded liabilities over the 25 year closed amortization
period. However, the contribution rate will not be lowered based upon actuarial experience until
the amortization period is 20 years or less.
Section 3. The DFRRF will commission an actuarial analysis every two years, commencing
with a valuation as of December 31, 2017, to determine the contribution level required to achieve
a 100% funding ratio over a closed 25 -year amortization. The City will review the actuarial report,
and if the report and contribution level is determined to be reasonable, the City Council will
formally approve the actuarial report. The City's contribution rate will then be adjusted to this
level on October 11 of the subsequent fiscal year following the submission of the analysis. Any
change to the contribution level is subject to final approval by the City, but in no event will the
contribution level be less than the City's actual contribution rate to the Texas Municipal
Retirement System for that fiscal year, nor shall it fall below the minimum rate established under
Article 6243e, Sec. 29(b), Vernon Texas Civil Statutes. If the contribution rate is set at the Texas
Municipal Retirement System for any fiscal year, then the actuarial analysis will be commissioned
for the following fiscal year, and then resume its biennial schedule. If the City Council does not
approve the actuarial report, the City and the DFRRF mutually agree to discuss potential changes
which would satisfy any deficiency. However, any additional analysis or reports required by the
actuarial firm will be paid by the City.
Section 4. The DFRRF agrees that it will not approve any benefit enhancements during
the term of the current Meet and Confer agreement which expires on September 30, 2019, and may
be mutually extended by all parties.
Section 5. The parties will utilize an investment rate of return assumption of no greater than
6.75%.
Section 6. If the performance of the Fund exceeds expectations, the contribution rates will not
be reduced until the amortization period is 20 years or less. In other words, any actuarial gains
will be used to pay down unfunded liabilities rather than reducing the contribution rate during the
first 5 years of the amortization period.
Section 7. This addendum does not modify any other provision of the meet and confer
agreement except those specifically modified herein.
Section 8. This addendum shall become effective when finally approved by all parties, and
shall run through the term of the current Meet and Confer Agreement, or September 30, 2019, and
may be mutually extended by all parties.
Approved at a duly called meeting of the City Council on December 5, 2017.
By
Todd Hileman, City Manager
Approved at a duly called meeting of the Denton Firemen's Relief and Retirement Fund on
November 15, 2017.
l
— l ere l Oswald, Cliairnman
Ratified by the Denton Fire Fighters Association, IAFF Local 1291 on November 18, 2017.
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