Aguirre's Remediation Plan
|Aguirre's Remediation Plan - August 29, 2006|
1. The San Diego
City Council must settle on behalf of the City with the Securities and Exchange
Commission. Individuals, including members of the City Council subject to SEC
investigation, must resolve any personal issues with the SEC separately without
further expenditure of public funds.
2. The San Diego City Council shall admit unequivocally the wrongdoing in which certain Council members engaged regarding the scheme to under fund the pension plan and increase pension benefits with no funding.
3. The San Diego City Council shall adopt legislation that rescinds the creation of all illegal pension benefits and rescinds any related indemnification agreements.
4. The San Diego City Council shall direct the Comptroller to remove any illegal pension benefits from the accounts of City employees who have yet to retire.
5. The San Diego City Council shall rescind any elected official's pension benefits that were granted retroactively in 2001 and 2002.
6. The San Diego City Council shall place on the ballot in the next election a City Charter amendment granting the voters the opportunity to permanently require that any increase in City pension benefits will require a vote of the electorate.
7. The San Diego City Council will prepare a revenue enhancement plan for submission to the electorate at the next feasible election that will raise sufficient funds to pay for all legal pension benefits.
8. As recommended by former Mayor Dick Murphy's Pension Reform Committee, the San Diego City Council shall place on the ballot in the next election a City Charter amendment to change the San Diego City Employees' Retirement System (SDCERS) Board composition so that it will consist of seven independent members.
9. The San Diego City Council shall reinstate the City Attorney as the chief legal counsel to the SDCERS Board.
10. The San Diego City Council shall amend the Municipal Code to include a revised version of the Employee Retirement Income Security Act, and the City Attorney will establish a separate legal section within the Office of the City Attorney to oversee the City's new pension plan.
11. In the next election, the San Diego City Council shall place on the ballot a City Charter amendment granting the voters the opportunity to determine whether to have an appointed or elected City Auditor.
12. The City Auditor shall be required to make quarterly reports on the financial condition of the City to the City Council and to the public.
13. If the City establishes an Audit Committee, its members should be comprised of the City Council, the Independent Budget Analyst, and the independent Auditor.
14. The Monitor function shall be fulfilled by the independently-elected City Attorney.
15. The independently-elected City Attorney shall remain the Chair of the Disclosure Practices Working Group.
16. San Diego City Council Members will take mandatory financial management training with a continuing education requirement, and also be required to pass a related financial examination.
17. When issuing municipal bonds and approving the City's Certified Annual Financial Report, the San Diego City Council must certify under penalty of perjury that the financial disclosure statements contain no material misstatements of facts and no misleading information, and that the City Council has read and understood the disclosures.
18. The San Diego City Council shall immediately disclose to the public any adverse financial facts discovered by them.
19. The City will pursue all third party claims to recover damages for breaches of duty owed to the City or the pension system including a recovery of the funds paid to Kroll, Inc.
20. The City will meet and confer about this Plan with credit rating agencies and the SEC, and based on these discussions, make any agreed-to changes in the Plan before it is implemented.
21. The City will seek to mediate any and all disputes arising under this Plan with interested parties in the context of resolving all outstanding litigation.