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Home My WebLink AboutAgenda Report - February 18, 2009 K-02AGENDA ITEM K- 9 cw A Mh CITY OF LODI %W COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2008-09 Mid -year Budget Adjustments MEETING DATE: February 18,2009 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt Resolution of the Lodi City Council approving Fiscal Year 2008-09 Mid -Year Budget Adjustments. BACKGROUND INFORMATION: The current Fiscal Year (FY) has been extraordinary with significant and rapid declines in revenue plus additional expenses in excess of budgeted amounts. To account for the rapid changes this year, the budget has been adopted twice. The FY 08-09 budget was first adopted in May 2008, then, based upon actual year-end numbers for FY 07-08, the Council adjusted and readopted the budget in November. Although the General Fund budget that was adopted in May was approximately $2 million less budget to budget than the previous year, another $1,855,000 in budget adjustments, consisting of increases and decreases, were made to balance the budget. Now, with regard to the mid -year, further adjustments are proposed. The focus of mid -year adjustments is on the General Fund. Absent any adjustments, the current year General Fund shortfall is projected to be $1,440,077. A number of adjustments, which are detailed below, will help mitigate this shortfall by the end of this fiscal year, but will not completely close the gap. A draw upon undesignated reserves in the amount of $361,755 is expected. It is anticipated that this draw will be recovered in Fiscal Year 2009-10. The budget changes made by the Council in November did not address reductions in wage and benefits or staffing levels, other than maintaining some positions vacant and anticipating "normal' vacancies. However, the changes made earlier in the year eliminated the cushion to make future adjustments without reduction to personnel costs. General Fund Revenues: No budgetary adjustmentsfor revenue are proposed at this time. The three primary General Fund revenue sources are property taxes, sales taxes, and Vehicle License Fees. It is projected that propertytaxes will come in slightly ahead ($100,000) of budgeted levels. Sales tax revenue is anticipated to be short of re -adopted budgeted levels by about $517,000. The third major revenue source, Vehicle License Fees, is expected to be about $140,000 short of budgeted levels. Other revenues are offsetting these shortfalls so that total estimated revenue is expected to be about $180,000 lower than the current year budgeted level. APPROVED: Blai g, City Manager Expenditures: Initial projection of General Fund expenditures is $43,489,060, a level that exceeded expected revenue by $1,440,070. Staff reviewed these initial estimates and developed a number of operational corrections to mitigate the shortfall by $541,970. They include allocating costs for certain administrative staff from the General Fund to Enterprise Funds ($247,800), allocating costs for online credit card processing to Enterprise Funds ($30,000), deferring the hiring of an additional mid -management position ($46,000), reversing portions of transfers to other funds related to savings from furloughs and waiver of deferred comp match ($47,070), reversing erroneous transfers to the Recreation Fund ($110,500), and reducing the transfer to the Library Fund due to vacant Library positions ($60,600). It is recommended to increase the General Fund transfer to the Community Development Fund to cover the current year deficit ($60,000). This item will be discussed further under the Community Development Fund section of this report. Net operational mitigations represent a cost reduction of $481,970. The City has approached all of the represented employee organizations to reduce expenses. As of the writing of this memorandum, tentative agreements have been reached with all labor groups, except AFSCME and IBEW. Discussions are ongoing and it is expected that satisfactory agreements will be reached. However, in the absence of agreements, the Council will be requested to authorize reductions in staffing via forced lay-offs. Timing is critical, solutions are dependent upon initial reductions spread over no less than 16 weeks commencing on March 9'" A related memorandum details modifications proposed for various bargaining units. The following chart shows the contributions from employee organizations to help the City reduce the FY 2008-09 General Fund shortfall: In total, employee contributions and operational mitigations, excluding IBEW, have reduced expected General Fund expenses by $1,078,325, leaving a remaining shortfall of $361,755. We have advised employee organizations of the need to again assist the City with any expected shortfall in FY 2009-10. In many cases, this will consist of extending reductions offered for the remainder of FY 08-09. Eliminate Waive Uniform Defer Deferred Allowance COLA Roll Back Representation Comp Eliminate In April until July Salary by 4 Day Unit Match Overtime 2009 2009 2.5% Furlough Totals Mana am mit $8,044 $ 14,643 $ 22 687 Mid -Ma t 19,500 31,707 51,207 Confidential 1,995 3,741 5,736 General Serviced Maintenance & Operations 27,397 53,065 80,462 Police/ Police Mid- Managementl D tch 56,525 80,000 48,000 13,685 198,210 Fire/ Fire Mid Management 200,000 31 750 6 300 238,050 Totals $113,461 $280,000 48,000 $13,685 $31,750 _$109,456 $596,352 In total, employee contributions and operational mitigations, excluding IBEW, have reduced expected General Fund expenses by $1,078,325, leaving a remaining shortfall of $361,755. We have advised employee organizations of the need to again assist the City with any expected shortfall in FY 2009-10. In many cases, this will consist of extending reductions offered for the remainder of FY 08-09. In addition, the reduction of the work force via early retirements in -lieu of forced lay-off is also being presented. Please note the related Council memorandum. It is expected that nominal savings will be generated in FY 2008-09, but that significant savings would be generated in FY 2009-10. Fund Balance: Without anv adiustments. vear-ended General Fund balance is projected to be $2,718,930. Expense reductions totaling $1,078,325 have been identified that will increase the projected ending fund balance to $3,797,255. This level is $702,745 short of maintaining the short-term objective of protecting the current undesignated General Fund reserve level of $4.5 million (close to the reserve level of June 30, 2008). (Note: the overall goal is to provide for a General Fund undesignated reserve of no less than 15 percent of the General Fund; however, due to economic conditions, progress toward this goal is being suspended for the short-term.) It is recommended that the current year fund balance shortfall be funded out of reserves and that the FY 2009-10 budget be structured in such a manner as to restore the short- term objective of $4,500,000. Electric Utility Net Bulk Power expenses are expected to exceed appropriations by $173,000. Revenues are coming in higher than budgeted and will be used to cover the higher expenses. Included in this action are adjustments to budgeted expenses. Community Development Fund The Community Development Fund ended the last fiscal year with a deficit fund balance of $702,127. The slowdown in building activity has continued and will result in an unadjusted revenue shortfall of about $300,000 compared to budget. The Community Development staff performs a general information function that is properly a General Fund expenditure. Staff is recommending that Community Development revenues be augmented by $60,000 from the General Fund to offset the expenditures for the general information function. With this augmentation, the fund is expected to fully cover its costs. Expenditures are being managed so that total expenditures will fit within the revised revenue stream. Public Safety Special Revenue Fund Revenues associated with COPS grants are not budgeted until receipt of the grant award notification. Today's action will increase revenues by $171,366 and appropriations by $26,000 to reflect 2008-09 COPS grant awards. Library Fund The General Fund supports funding of positions in the Library Fund through operating transfers. The Library Fund has had two positions vacant this year. As such, the transfer from the General Fund is being reduced to reflect a reduced level of expenditures related to staffing. The impact is to reduce revenues and appropriations in the Library Fund by $60,600. Water, Wastewater and Electric Administration Funds The Water, Wastewater, and Electric Administration funds appropriations are all being increased to reflect the additional costs that have been allocated from the General Fund. The funds are being increased $124,900, $121,900, and $31,000 for Water, Wastewater, and Electric funds, respectively. Information Systems Replacement Operating Fund The Information Systems Replacement Operating fund appropriation is being increased by $65,000 to reflect current year purchases. The fund has sufficient revenues, but no appropriations were previously provided for this fund. FISCAL IMPACT: The worsening state of the economy, coupled with increased City costs, has created a situation wherein current year revenues are not sufficient to cover current year projected expenditures without significant adjustments to the expenditure levels. Staff and employee organizations have identified a number of cost savings measures that will close the gap between revenue and expenditures. Staff is recommending adjustments that will produce a balanced budget. Jordan Ayer Deputy City ager JAfja Attachment: Resolution FY 2008/09 Mid -year Budget Adjustments Exhibit A Fund Transfer Changes City Council Approved Mid -Year Adjustments City Council Adjusted General Fund Transfers Out 4,880,793 600 (-) 4,880,193 Library Transfers In 1,537,994 60,600 (-) 1,477,394 Community Development Transfers In 185,148 60,000 (+) 245,148 City Council Approved Mid -Year Adjustments City Council Re -Adopted GENERAL FUND OPERATING INCREASES City Council Approved Mid -Year Adjustments City Council Re -Adopted Police Support Services 4,745,174 325,145 (+) 5,070,319 Fire Emergency Operations 7,133,685 36,610 (+) 7,170,295 NON GENERAL FUND OPERATING INCREASES NON GENERAL FUND OPERATING DECREASES City Council Approved Mid -Year Adjustments City Council Re -Adopted Library 1,599,008 60,600 (-) 1,538,408 NON GENERAL FUND OPERATING INCREASES City Council Approved Mid -Year Adjustments City Council Re -Adopted Water Administration 292,632 124,900 (+) 417,532 Wastewater Administration 595,294 121,900 (+) 717,194 Electric Utility Administration 1,010,240 31,000 (+) 1,041,240 I.S. Replacement Operating - 65,000 (+) 65,000 Electric Utility Bulk Power 46,697,976 173,000 (+) 46,870,976 Police Special Revenue Fund 174,000 26,000 (+) 200,000 REVENUEINCREASES Police Special Revenue Fund 36,211 171,366 (+) 207,577 RESOLUTION NO. 2009-21 A RESOLUTION OF THE LODI CITY COUNCIL REVISING THE ADOPTED 2008-09 OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,2008 AND ENDING JUNE 30,2009 WHEREAS, the City Manager submitted the 2008-09 balanced Operating and Capital Improvement Budget to the City Council on May 21,2008; and WHEREAS, the 2008-09 Operating and Capital Improvement Budget was prepared in accordance with the City Council's goals, budget assumptions, and policies; and WHEREAS, the City Council approved the 2008-09 Operating and Capital Improvement Budget as passed and adopted in Resolution 2008-99 at a regular meeting of the City Council of the City of Lodi on May 21, 2008; and WHEREAS, the City Manager submitted revisions to the 2008-09 Operating and Capital Improvement Budget to the City Council on November 19, 2008; and WHEREAS, the City Council approved the 2008-09 Operating and Capital Improvement Budget as passed and re -adopted in Resolution 2008-231 at a regular meeting of the City Council of the City of Lodi on November 19,2008; and WHEREAS, revisions in the 2008-09 Operating and Capital Improvement Budget as re -adopted by the City of Lodi City Council on November 19,2008, are necessary as a result of changes in revenue estimates and projected changes in operating expenditures. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the revisions to the 2008-09 Operating and Capital Improvement Budget, as shown on ExhibitA attached. Dated: February 18, 2009 ---------------- I -------------- -- ----- --------- hereby certify that Resolution No. 2009-21 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 18, 2009, by the following vote: AYES: COUNCIL MEMBERS—Johnson, Katzakian, and Mayor Hansen NOES: COUNCIL MEMBERS— Mounce ABSENT: COUNCIL MEMBERS— Hitchcock ABSTAIN: COUNCIL MEMBERS—Nom I JOHL City Clerk 2009-21 FY 2008109 Mid -year Budget Adjustments ExhibitA Libra 1,599,0081 60,600 - 1,538,408 P!417,532 Water Administration 292,632 124,900 + Wastewater Administration 595,294 121,900 + 717,194 Electric Utility Administration 1,010,240 31,000 + 1,041,240 I.S. Replacement Operating - 65,000 + 65,000 Electric Utility Bulk Power 46,697,976 173,000 + 46,870,976 Police Special Revenue Fund 174,000 26,000 + 200,000 Police Special Revenue Fund 36,211 171,366 + 207,577 r City Council February 18, 2009 ili ,40 vpr, V oil oil 2008/09 Midyear Budget i��T' ,TAAIVE►k'`�u�,�TI�Iri'I�K'NEI 2008/09 Midyear Budget CITY OF L DI MAJOR INDUSTRY GROUPS - 13 QUARTERHISTORY Y &I 1..— 6. _..d.- �.�-yl..,- --� -- i. -AM. &--L,- ...I.,a+•,1.E NVS — .....s LJ.. -I" .-L.— ,.---k-4 amW DescrV,C L 7ft eW cornp w sales fax Wft rk ft4y Gmim The prfor 12 gear = ere shm grW&-mdf WWgo" n*fww papnm Af'lucadom have bow soNated to rWbd ac+vmxh is dab InduNwGroltrt OuuaenShown PzlecrtihePeriddhnWhldhIke Sale&goad- Po" eBob Mmiond ggmm* Q� CIO* OId9b • 92- AvkgAnd TrmWrktw Ou *-20 trr................ c v"- 38 1 51�� % Rv opo k� seo - �reY.�eawA1ldlefll Y1011 •.3�y 4M ....... .. ... ,y �ti ly f MAM1218 Arid KM 5.M •� ti •y� wy r� y • by • �rr�rw4yy �1 FF �� y �S w. �. *+\y� •tide. •iy+�±rrsr. #,� F66tlIdAflY�! + I�xl..l,.l�lll�.urlllrlu +wr y r r..00 4 AMM M..*aloe �ukb-8e _ 210 A III = *MI ,II �p� --�I__y 1,1�IH iXIH�IIIIM' �Ili� VIII I �I �,,,�IIIINIIIIIR I, 140 Al y. •f. CM Q2 .p 11 !l{ +1a '•f� of LC co +36 � 1p Gff TRT Ud bB rig oil 2008/09 Midyear Budget 500 0 5[111,17 -1500 -2000 WA71111 -3000 -3500 111111,17 JOB LOSSES IN RECENT RECESSIONS NUMBER OF MONTHS AFTER PEAK JOB MONTH 1 2 4 5 6 7 8 9 10 1112 13 14 15 16 1718 19 20 2122 23 24 25 26 27 28 29 30/-, 3 34 35 36 37 38 39 40 4142 43 44;/849 1990 RECESSION 2001 RECESSION CURRENT RECESSION 2008/09 Midyear Budget San Joaquin County unemployment rates month of December, 1990-2008 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 d.d°I0 2.0% 4.0% 6.0°I0 8.d°I0 m 10.0% 12.0°I0 14. d°I0 16.0°I0 18.0% 2008/09 Midyear Budget California Long Run Job Growth ■ CA ■ US 2008/09 Midyear Budget Monthly Change Payroll employment 2007 to January 2009 job Change njob Charge oil 2008/09 Midyear Budget 32 of 32 recessions have ended 2008/09 Midyear Budget General Fund absent adjustments: $1,440,077 shortfall 2008/09 Midyear Budget Projected $356,000 Police Department variance Projected $442,555 Fire Department variance 2008/09 Midyear Budget Employee Contributions: $596,350 Management Adjustments: $481,970 oil 2008/09 Midyear Budget Financial Goals and Targets $7,000 $6,000 $5,000 $4,000 0 R $3,000 18 $2,000 $1,000 $0 General Fund Balance (unreserved) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Target short- term goal Statement of Changes in Fund Balance For the Fiscal Year Ended June 30, 2009 With Actuals for Fiscal Year 2007-08 and Comparative Budget Fiscal Year 2008-09 ral Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved 5,175,522 4,534,293 4,159,007 (375,286) 44,487,632 42,229,193 42,048,985 (180,208) 45.504.147 42.302.405 42.410.740 (108.335) (1,016,515) (73,212) (361,755) (288,543) 4,159,007 4,461,081 3,797,252 (663,829) -0.4% -0.3% Statement of Changes in Fund Balance For the Fiscal Year Ended June 30, 2009 With Actuals for Fiscal Year 2007-08 and Comparative Budget Fiscal Year 2008-09 Community Development Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance (Net Assetsl Ending Fund Balance (Net Assets) Unreserved Audited Budget to 2007-08 2008-09 2008-09 Est Actuals Actuals Budget Estimated Actuals Variance $ (167,024) (454,604) (702,127) (247,523) 1,479,536 1,615,148 1,382,236 (232,912) 2.014.639 1.628.438 1.379.450 248.988 (535,103) (13,290) 2,786 16,076 (702.127) (467.894) (699.341) (231.447) Budget to Est Actuals Variance % -16.9% 18.0% 2008/09 Midyear Budget Cooperation from bargaining groups Police Officers Association ■ Waive six months' uniform allowances ■ Waive ability to cash out holiday leave in 2009 (retirees excepted) ■ Waive deferred compensation match from March 1, 2009 through June 30, 2010 ■ Waive ability to cash out compensatory time off in April 2009 and increase short-term time -off bank to 480 hours 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) Police Mid -Management ■ Waive six months' uniform allowances ■ Waive ability to cash out holiday leave in 2009 (retirees excepted) ■ Waive deferred compensation match from March 1, 2009 through June 30, 2010 ■ Waive ability to cash out compensatory time off in April 2009 and increase short-term time -off bank to 480 hours 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) Police Dispatchers ■ Waive six months' uniform allowances ■ Waive ability to cash out holiday leave in 2009 (retirees excepted) ■ Waive deferred compensation match from March 1, 2009 through June 30, 2010 ■ Waive ability to cash out compensatory time off in April 2009 and increase short-term time -off bank to 480 hours ■ Defer 3% pay increase from April 2009 to July 2009 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) Lodi Professional Firefighters ■ 2.5% salary reduction from March 1, 2009 through June 3072010 ■ Short-term increase in compensatory time -off bank from 144 to 480 hours ■ Extend MOU one year through December 31, 2010 ■ Change minimum staffing level from 15 to 12 through June 30, 2010, with all stations remaining open 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) Fire Mid -Management ■ 3% salary savings through furlough ■ Short-term increase in compensatory time -off bank from 144 to 480 hours ■ Extend Statement of Benefits one year through December 31, 2010 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) IBEW • Two-hour furlough per month for March through June 2009 • Four-hour furlough per month for calendar year 2010 • Reduce the floor for annual COLA's from 3.5% to 2% for the remainder of the contract • Extend the contract two years through 2013 with lower COLA floor 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) General Services/Maintenance & Operators ■ Waiver of deferred compensation match from March 1, 2009 through June 30, 2009 ■ Accept one unpaid furlough day per month from March 11 2009 through June 30, 2009 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) City Mid -Management Association ■ Waive deferred compensation match from March 1, 2009 through July 1, 2010 ■ Accept one unpaid furlough day per month from March 1, 2009 through June 30, 2009 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) Management/Confidential ■ Waiver of deferred compensation match from March 1, 2009 through June 30, 2010 ■ One unpaid furlough day per month from March 1, 2009 through June 30, 2010 2008/09 Midyear Budget Cooperation from bargaining groups (cont.) City Manager/Clerk/Attorney ■ Waiver of deferred compensation match from March 1, 2009 through June 30, 2010 ■ One unpaid furlough day per month from March 1, 2009 through June 30, 2010 2008/09 Midyear Budget Service Credit Program ■ PERS retirement incentive of two years service credit to certain employees ■ Incumbent or other position must be kept open for unspecified time ■ All employees except sworn Police eligible at age 50 with five years of service credit ■ Program intent: Overall workforce reduction 2008/09 Midyear Budget Service Credit Program ■ Eight to 10 individuals to accept two years service credit as an incentive to retire ■ City must publish total cost of service credit for all employees in that classification/department regardless of number that will be offered inducement ■ Some positions would not be filled, some at a lower classification, and the remaining not filled at this time ■ Anticipated annual savings of those accepting the incentive: Nearly $1 million in salary/benefits ■ Total savings will grow as positions remain vacant ■ Anticipated annual cost for 20 years: $3,367 per employee 2008/09 Midyear Budget Budget and Finance Committee Recommendations ■ Support City Manager's proposed recommendations (7-0 vote) ■ Immediately work with the EUD Director to establish an appropriate level of reserves relative to expenses (7-0) ■ To the extent not yet paid, eliminate funding for the Downtown Lodi Business Partnership and the San Joaquin Partnership (4-3) ■ To the extent not yet paid, reduce arts grants from $50,000 to $25,000 (6-1) 2008/09 Midyear Budget Summary of Actions Requested ■ Adopt Resolution approving the midyear adjustments ■ Adopt Resolution approving modifications to employee memorandums of understanding ■ Authorize the City Manager to post cost to grant two years service credit to specified classifications AGENDA ITEM VN";L 10 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving: 1) Modifications to Memorandums of Understanding for Police Officers Association of Lodi, Lodi Police Dispatcher's Association, and Lodi Police Mid Management Organization; 2) Modifications to Memorandum of Understanding for Lodi Professional Firefighters; 3) Modifications to Fire Mid Management Statement of Benefits; 4) Modifications to Memorandum of Understanding for Lodi City Mid Management Association; and 5) Modificationsto Unrepresented Confidential Benefits and to Executive Management Contracts and Statement of Benefits; and Further approve Modifications to Memorandums of Understanding for AFSCME Council 57 Local 146 -AFL-CIO General Services and Maintenance & Operations and IBEW should an Agreement be reached prior to Council meeting. MEETING DATE: PREPARED BY: February 18,2009 City Attorney RECOMMENDED ACTION: Adopt Resolution Approving: 1) Modifications to Memorandums of Understanding for Police Officers Association of Lodi, Lodi Police Dispatcher's Association, and Lodi Police Mid Management Organization; 2) Modifications to Memorandum of Understanding for Lodi Professional Firefighters; 3) Modifications to Fire Mid Management Statement of Benefits; 4) Modifications to Memorandum of Understanding for Lodi City Mid Management Association; and 5) Modifications to Unrepresented Confidential Benefits and to Executive Management Contracts and Statement of Benefits; and Further approve Modifications to Memorandums of Understanding for AFSCME Council 57 Local 146 -AFL-CIO General Services and Maintenance & Operations and IBEW should an Agreement be reached prior to Council meeting. BACKGROUND INFORMATION: Staff has negotiated tentative modifications to all employee's salary and benefits. Because each bargaining unit is unique the techniques used to achieve salary and benefit savings are unique to each group. Modifications include various combinations of furloughs, salary reductions, minimum staffing reductions, overtime restrictions, limits on cash out of benefits, and elimination of deferred compensation matching programs. As of the date of this Council Communication Staff has reached the following tentative agreements: 1) Police Officers Association of Lodi Lodi Police Dispatchers Association Lodi Police Mid-Manaaement Oraanization a) Waiver of 6 months of uniform allowances. b) Waiver of ability to cash out holiday leave from January 1, 2009 through December 31. 2009 (impending retirees excepted). c) Waiver of deferred compensation from March 1, 2009 through June 30,2010 APPROVED: /-- Blai Manager d) Waiver of compensatory time off cash out in April of 2009 and a consequent short term increase in compensatory time off bank of 480 hours. e) Dispatch also agrees to defer their 3% increase from April 2009 to July 2009. 2) Lodi Professional Firefighters a) 2.5 percent salary reduction from March 1, 2009 through June 30, 2010. b) Short-term increase in compensatory time off bank from 144 to 480 hours. c) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution and agrees it endeavors to pay at median. d) Extend MOU I -year to December 31,2010. e) Reduction of minimum staffing from 15 to 12 with all stations remaining open from March 1,2009 —June 30,2010. 3) Lodi Fire Mid -Management a) Furlough hours which achieve 3% salary savings. b) Short-term increase in compensatory time off bank from 144 to 480 hours. c) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution. d) Extend Statement of Benefits I -year to December 31, 2010. 4) Lodi City Mid -Management Association a) Waiver of deferred compensation from March 1, 2009 through July 1, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2009. 5) Unrepresented Confidential Emr)lovees Executive Management a) Waiver of deferred compensation from March 1, 2009 through July 1. 2010 b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2010. In addition, the three council appointees are offering the following savings through modifications to their contracts: a) Waiver of deferred compensation from March 1, 2009 through June 30, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2010. As of this writing, negotiations with IBEW and AFSCME continue. Any agreed modifications to those contractswill be added via blue sheet to this Council Communication. It should be noted, that the focus of these modifications are the last four months of Fiscal Year 2008-09. The key union groups understand that additional discussions will occur prior to adoption of the Fiscal Year 2009-2010 budget. FUNDING: NIA. FISCAL IMPACT: Including elimination of overtime, savings of roughl 7 n salary and benefits. c City Attorney AGENDA ITEM rA CITY OF LODI COUNCIL COMMUNICATION im AGENDA TITLE: Adopt Resolution Approving: 1) Modifications to Memorandums of Understandina for Police Officers Association of Lodi, Lodi Police Dispatcher's Association, and Lodi Police Mid Management Organization; 2) Modifications to Memorandum of Understanding for Lodi Professional Firefighters; 3) Modifications to Fire Mid Management Statement of Benefits; 4) Modifications to Memorandum of Understanding for Lodi City Mid Management Association; and 5) Modifications to Unrepresented Confidential Benefits and to Executive Management Contracts and Statement of Benefits; and 6) Modifications to Memorandums of Understanding for AFSCME Council 57 Local 146 -AFL-CIO General Services and Maintenance & Operations and 7) IBEW. MEETING DATE: PREPARED B Y February 18,2009 Citv Attornev RECOMMENDED ACTION: Adopt Resolution Approving: 1) Modifications to Memorandums of Understanding for Police Officers Association of Lodi, Lodi Police Dispatcher's Association, and Lodi Police Mid Management Organization; 2) Modifications to Memorandum of Understanding for Lodi Professional Firefighters; 3) Modifications to Fire Mid Management Statement of Benefits; 4) Modifications to Memorandum of Understanding for Lodi City Mid Management Association; and 5) Modifications to Unrepresented Confidential Benefits and to Executive Management Contracts and Statement of Benefits; and 6) Modifications to Memorandums of Understanding for AFSCME Council 57 Local 146 -AFL-CIO General Services and Maintenance & Operations and 7) IBEW. BACKGROUND INFORMATION: Staff has negotiated tentative modifications to all employee's salary and benefits. Because each bargaining unit is unique the techniques used to achieve salary and benefit savings are unique to each group. Modifications include various combinations of furloughs, salary reductions, minimum staffing reductions, overtime restrictions, limits on cash out of benefits, and elimination of deferred compensation matching programs. As of the date of this "Blue Sheet" Council Communication Staff has reached the following tentative agreements: 1) Police Officers Association of Lodi Lodi Police Dispatchers Association Lodi Police Mid-ManagementOrganization a) Waiver of 6 months of uniform allowances. b) Waiver of ability to cash out holiday leave from January 1, 2009 through December 31, 2009 (impending retirees excepted). c) Waiver of deferred compensation from March 1,2009 through June 30,2010. d) Waiver of compensatory time off cash out in April of 2009 and a consequent short term increase in compensatory time off bank of 480 hours. e) Dispatch also agrees to defer their 3% increase from April 2009 to July 2009. APPROVED: r Blair Kind, City Manager 2) Lodi Professional Firefighters a) 2.5 percent salary reduction from March 1, 2009 through June 30, 2010. b) Short-term increase in compensatory time off bank from 144 to 480 hours. c) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution and agrees it endeavors to pay at median. d) Extend MOU I -year to December31,2010. e) Reduction of minimum staffing from 15 to 12 with all stations remaining open from March 1, 2009 — June 30, 2010 (emergencies excepted). Q Add median salary goal statement. 3) Lodi Fire Mid -Management a) Furlough hours which achieve 3% salary savings. b) Short-term increase in compensatory time off bank from 144 to 480 hours. c) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution. d) Extend Statementof Benefits 1-yearto December31, 2010. 4) Lodi City Mid-ManaaementAssociation a) Waiver of deferred compensation from March 1, 2009 through July 1. 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2009. 5) Unrepresented Confidential Employees Executive Manaaement a) Waiver of deferred compensation from March 1,2009 through July 1,2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2010. 6) 113E± a) 2 -hour furlough a month from March 2009 through June 2009. b) 4 -hour furlough a month from January 2010 through December2010. c) Effective January 1,2010 reduce the current CPI wage increase already agreed to by both parties to 2% - 5.51/6. d) Extend the current contract (MOU) through December 31,2013 (two year extension with reduced CPI range). e) Our negotiated wage increase would be as follows through years 2011, 2012, and 2013 would be 2% - 5.5%. MECTZ71 -r - �• 11 -11111 1� - ••- • a) Waiver of deferred compensation from March 1,2009 through June 30,2009. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2009. c) Agreement notto layoff members March 1,2009 through June 30,2009. In addition, the three council appointees are offering the following savings through modifications to their contracts: a) Waiver of deferred compensation from March 1,2009 through June 30,2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30, 2010. It should be noted, that the focus of these modifications are the last four months of Fiscal Year 2008-09. The key union groups understand that additional discussions will occur prior to adoption of the Fiscal Year 2009-2010 budget. FUNDING: NIA, FISCAL IMPACT: Including elimination of overtime, savings of roughly $779,990 in salary and benefits. MILT � 1"am "'�� RESOLUTION NO. 2009- A RESOLUTION OF THE LODI CITY COUNCIL APPROVING COST-SAVING MODIFICATIONSTO EMPLOYEE MEMORANDUMS OF UNDERSTANDING --___--._-� - ,�-----�_�---------------�------- WHEREAS, due to the status of current fiscal affairs, cost-saving measures are required to be implemented; and WHEREAS, staff has negotiated tentative modifications to all employee's salary and benefits, and because each bargaining unit is unique the techniques used to achieve salary and benefit savings are unique to each group; and WHEREAS, modifications include various combinations of furloughs, salary reductions, minimum staffing reductions, overtime restrictions, limits on cash out of benefits, and elimination of deferred compensation matching programs; and WHEREAS, with adjustments to salary and benefits as outlined below, the City will see a savings of approximately $779,990 by implementingthe following: 1) Police Officers Association of Lodi Lodi Police Dispatchers Association Lodi Police Mid-ManaaementOraanization a) Waiver of 6 months of uniform allowances. b) Waiver of ability to cash out holiday leave from January 1, 2009 through December 31, 2009 (impending retirees excepted). C) Waiver of deferred compensation from March 1, 2009 through June 30,2010. d) Waiver of compensatory time off cash out in April of 2009 and a consequent short term increase in compensatory time off bank of 480 hours. e) Dispatch also agrees to defer their 3% increase from April 2009 to July 2009. 2) Lodi Professional Firefighters a) 2.5 percent salary reduction from March 1, 2009 through June 30, 2010. b) Short-term increase in compensatory time off bank from 144 to 480 hours. C) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution and agrees it endeavors to pay at median. d) Extend MOU I-yearto December31, 2010. e) Reduction of minimum staffing from 15 to 12 with all stations remaining open from March 1, 2009 - June 30, 2010 (emergencies excepted). f) Add median salary goal statement. 3) Lodi Fire Mid-Manaaement a) Furlough hours which achieve 3% salary savings. b) Short-term increase in compensatory time off bank from 144 to 480 hours. C) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution. d) Extend Statement of Benefits I -year to December 31, 2010. 4) Lodi City Mid-ManaaementAssociation a) Waiver of deferred compensation from March 1, 2009 through July 1, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2009. 5) Unrepresented Confidential Employees Executive Manaaement a) Waiver of deferred compensation from March 1, 2009 through July 1, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2010. 6) IDEW a) 2 -hour furlough a month from March 2009 through June 2009. b) 4 -hour furlough a month from January 2010 through December2010. c) Effective January 1, 2010 reduce the current CPI wage increase already agreed to by both parties to 2% - 5.51/o. d) Extend the current contract (MOU) through December 31, 2013 (two year extension with reduced CPI range). e) Our negotiated wage increase would be as follows through years 2011, 2012, and 2013 would be 2% - 5.5%. a) Waiver of deferred compensation from March 1, 2009 through June 30,2009. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2009. c) Agreement not to layoff members March 1, 2009 through June 30, 2009. In addition, the three council appointees are offering the following savings through modifications to their contracts: a) Waiver of deferred compensation from March 1, 2009 through June 30,2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2010. WHEREAS, it should be noted, that the focus of these modifications are the last four months of Fiscal Year 2008-09. The key union groups understand that additional discussions will occur prior to adoption of the Fiscal Year 2009-10 budget. NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that modifications to employee Memorandums of Understanding and Statement of Benefits as outlined above are hereby adopted. Dated: February 18, 2009 hereby certify that Resolution No. 2009- was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 18, 2009, by the following vote: AYES: COUNCIL MEMBERS - NOES: COUNCIL MEMBERS - ABSENT: COUNCIL MEMBERS - ABSTAIN: COUNCIL MEMBERS- RANDI JOHL City Clerk 2009- RESOLUTION NO. 2009-20 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING COST-SAVING MODIFICATIONSTO EMPLOYEE MEMORANDUMS OF UNDERSTANDING WHEREAS, due to the status of current fiscal affairs, cost-saving measures are requiredto be implemented: and WHEREAS, staff has negotiated tentative modificationsto all employee's salary and benefits, and because each bargaining unit is unique the techniques used to achieve salary and benefit savings are unique to each group; and WHEREAS, modifications include various combinations of furloughs, salary reductions, minimum staffing reductions, overtime restrictions, limits on cash out of benefits, and elimination of deferred compensation matching programs; and WHEREAS, with adjustments to salary and benefits as outlined below, the City will see a savings of approximately $779,990 by implementing the following: 1) Police Officers Association of Lodi Lodi Police Dispatchers Association Lodi Police Mid-ManaaementOraanization a) Waiver of 6 months of uniform allowances. b) Waiver of ability to cash out holiday leave from January 1, 2009 through December 31, 2009 (impending retirees excepted). C) Waiver of deferred compensation from March 1, 2009 through June 30,2010. d) Waiver of compensatory time off cash out in April of 2009 and a consequent short term increase in compensatory time off bank of 480 hours. e) Dispatch also agrees to defer their 3% increase from April 2009 to July 2009. 2) Lodi Professional Firefighters a) 2.5 percent salary reduction from March 1, 2009 through June 30, 2010. b) Short-term increase in compensatory time off bank from 144 to 480 hours. C) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution and agrees it endeavors to pay at median. d) Extend MOU I -year to December 31,2010. e) Reduction of minimum staffing from 15 to 12 with all stations remaining open from March 1, 2009 — June 30, 2010 (emergencies excepted). f) Add median salary goal statement. 3) Lodi Fire Mid -Management a) Furlough hours which achieve 3% salary savings. b) Short-term increase in compensatory time off bank from 144 to 480 hours. C) City agrees to explore, without obligation, financial feasibility of swapping pay raise for employee's share of PERS contribution. d) Extend Statement of Benefits I-yearto December 31,2010. 4) Lodi City Mid-ManagementAssociation a) Waiver of deferred compensation from March 1, 2009 through July 1, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2009. 5) Unrepresented Confidential Employees Executive Manaaement a] a) Waiver of deferred compensation from March 1, 2009 through July 1, 2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2010. a) 2 -hour furlough a month from March 2009 through June 2009- b) 4 -hour furlough a month from January 2010 through December 2010. C) Effective January 1, 2010 reduce the current CPI wage increase already agreed to by both parties to 2% - 5.5%. d) Extend the current contract (MOU) through December 31, 2013 (two year extension with reduced CPI range). e) Our negotiated wage increase would be as follows through years 2011, 2012, and 2013 would be 2% - 5.5%. 7) AFSCME General Services and Maintenance& Operators a) Waiver of deferred compensation from March 1, 2009 through June 30,2009. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2009. C) Agreement not to layoff members March 1,2009 through June 30, 2009. In addition. the three council appointees are offerina the followinq savings throuah modifications to their contracts: a) Waiver of deferred compensation from March 1, 2009 through June 30,2010. b) Acceptance of 1 unpaid furlough day per month from March 1, 2009 through June 30,2010. WHEREAS, it should be noted, that the focus of these modifications are the last four months of Fiscal Year 2008-09. The key union groups understand that additional discussions will occur prior to adoption of the Fiscal Year 2009-10 budget. NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that modifications to employee Memorandums of Understanding and Statement of Benefits as outlined above are hereby adopted. Dated: February 18, 2009 hereby certify that Resolution No. 2009-20 was passed and adopted by the City Council cf the City of Lodi in a regular meeting held February 18, 2009, by the following vote: AYES: COUNCIL MEMBERS—Johnson, Katzakian, and Mayor Hansen NOES: COUNCIL MEMBERS— Mounce ABSENT: COUNCIL MEMBERS— Hitchcock ABSTAIN: COUNCIL MEMBERS— None 2009-20 Lodi Professional Firefighters • Local 1225 PO Box 1841 • Lodi, California 95241 209.339.4417 • FAX 209.339 4417 • lodifirefighters.com COMMON FIREGROUND TASKS INITIAL TASKS: 1) SECURE UTILITIES- 1 2) FORCIBLE ENTRY - 2 3) WATER SUPPLY- 1 4) LADDERING - 2 5) LIGHTING- 1 SUSTAINED TASKS: 1) FIRE ATTACK - 2 2) VENTILATION - 3 3) StWARCHIREscuE^ - 2 4) RAPID INTERVENTION CREW (R.l.C.) - 2 5) BACK-UP HOSE LINE - 2 6) EXPOSURE H 0 S E LINE - 2 7) SALVAGE&OVERHAUL-2 8) PUMPING -1 9) SCENE SAFETY OFFICER - 1 1 O) INCIDENTCOMMAND - 1 The above are common tasks that are associatedwith an fire scenes regardless of the size or complexity. Of course the larger or more complex the incident, the more people required to successfully mitigate the problem. For this purpose we will assume this is a response to a single family residential house fire. This is the type fire that is most common and associated with the highest number of ciA ian and firefighter injuries and deaths. Initial tasks are tasks that are assigned and once completed do not require dedicated support of personnel. Sustained tasks are tasks that require on going support of personnel. Some tasks require more personnel than others while some require fewerpeople but take a much longer amount of time to accomplish. The numbers listed to the right of each task are the minimum number cf personnel requiredto carry out that task Note: This is assuming the fire is containedto a single Affiliated with International Association of Fire Fighters . California Professional Fireiighters . AFL-CIO . California Labor Federation 4111111110m room cf contents, there is only one exterior exposure, and there is no medical aid required for citizens or firefighters. As you can see adequate staffing levels are imperative for efficient and safe fire ground operations. With our minimum daily staffing set at 15we are already stretchedthin and taxed with the number cf tasks that need to be completed in such a compressed time f rame . By allowing our minimum daily staffing to decrease to 12, there are tasks that possibly will not be accomplished resulting in greater fire loss, and decreased civilian and firefighter safety. The National Fire Protection Agency (NFPA) and the International City Manager's Association (ICMA) agree the goal is to have 17 personnel on scene cf a structure fire within eight minutes cf receiving the 911 call. At current staffing levels we are not able to achieve that recognized standard. By decreasing our daily staffing our efficiency would be reduced farther therefore jeopardizing the safety cfboth the citizenry and firefighters alike. Reducing our minimum daily staffingto 12wouldnecessitate "Browningout"engine 2031 on an as needed basis. The above is aimed primarily at structure fire responses and we would be remiss not to discuss the impact of one less fire engine as it relates to medical emergency calls. It is the goal and standardto be at any address in the city within 3-4 minutes cfbeing dispatched. T h i s is accomplished by having fire stations strategically located to meet that standard. By "Browningout" an engine company, it now leaves their "Firstin"district left to be divided amongst the other engine companies. This inherently increases response times into the "Brownedout"district. The American Heart Association (AMA) guide lines for Heart Saver CPR state a victim cf cardiac arrest needs trained professional medical intervention within minutes of going into cardiac arrest. We provide such intervention with techniques that we are accredited to perform as Emergency Medical Technicians. CPR alone has a lower survivabilityrate than CPR with earl defibrillation. The AHA also claims that the heart and brain begin to suffer irreversible damage after 6-8 minutes without oxygen. The fire department is an instrumental linkin the "Chaincf survival" and by reducing staffing the result is a severe reduction in service which will have an adverse impact on public safety. Balancing the budget with reduced public safety is a gamble that never pays. The fire department cf today is an "All threat"responder which is responsible for a magnitude cf emergency responses and emergency planning. The personnel are essential for us to perform our duty to the community. AGENDA ITEM V%" 2XV 00 CITY OF LODI COUNCIL COMMUNICATION TM AGENDATITLE: Authorize City Manager to Post Cost to Grant Two Years Service Credit to Specified Classifications Under Government Code Section 20903. MEETING DATE: February 18,2009 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Authorize the City Manager to post costs to grant two years service credit to specified classifications under Government Code Section 20903 and Certification of Compliance with Government Code Section 7507. BACKGROUND INFORMATION: The budget shortfall in FY 2008/09 and the anticipated need to further reduce City spending in FY 2009/10 has necessitatedthe City explore additional options to reduce staffing. California Government Code Section 20903, through CalPERS, allows the City (as part of a budget -reduction process) to offer a retirement incentive of two years service credit to employees. The City's contract with CalPERS allows this option to be offered to Miscellaneous and Fire (sworn) employees, with the requirement that participating employees be at least 50 years old, have five years of service creditwith PERS, and retire within a specified period of time as identified by the City. The intended effect of offering this incentive is an overall reduction in the workforce. Staff has identified eight to 10 positions where this option may be feasible as it would result in an overall reduction in force and significant cost savings. If offered, it is anticipated these individualswill accept this offer, resulting in an annual cost savings of roughly $1 million per year. To pay for this enhancement, the City's contribution to CalPERS will rise in FY 2011/12 by approximately $35,606 annually for 20 years, or roughly $700,000 in total. The first-year savings will more than offset the entire cost of the program. The Government Code requires that the costs to provide this benefit, as shown Attachment A, be made public at a public meeting at least two weeks prior to the adoption of a Resolution. We are required to include all possible positions (26) in these classifications/departments, If all 26 positions were offered the benefit and accepted, the actual annual cost to the City would be $87,546.58, or $3,367 per employee per year. Over 20 years, the benefit's cost to the City for 26 employees would $1,159,117, as shown in the attachment. As indicated above, however, management feels this enhancement will be accepted by eight to 10 individuals. Some of these positions have experienced a workload reduction due to the economy. Their remaining duties will be reassigned among existing staff. Other positions can remain vacant and reassessedwhen the City's financial condition improves. APPROVED: Blot", City Manager As stated earlier, the cost of the program must be made public for a minimum of two weeks. At the March 4, 2009 City Council meeting, staff will present the resolution adopting the two years service credit purchasefor those employees who will be offered this retirement option. FISCAL IMPACT: The cost of this benefit will be amortized over 20 years and included in the City's CaIPERS employer contribution rate beginning in FY 2011-2012. Although the net savings depends on the number of employees who accept the benefit, the anticipatedjob vacancies are expected to save the City nearly $1 million annually. FUNDING AVAILABLE: Not applicable tr TWO YEARS ADDITIONAL SERVICE CREDIT Section 20903 Estimated Employer Cost ATTACHMENT A Classification Name Annual Pay Rate Cost Factor PRSA* Yes or No No PRSA COLA 3%,4%,5% Additional Employer Contributions Sr. Civil Engineer Sharon Welch $ 95,660.37 0.57 Yes No $ 54,526.41 Sr. Civil Engineer Wes Fu'itani $ 95,660.37 0.47 Yes No $ 44,960.37 Public Works Inspector Wil McVicker $ 63,105.90 0.57 Yes No $ 35,970.36 Associate Civil Engineer Mark Lindseth $ 84,792.13 0.56 Yes No $ 47,483.59 Fleet and Facilities Manager Dennis Callahan $ 85,019.45 0.56 Yes No $ 47,610.89 Streets & Drainage Manager George Bradley $ 89,278.78 0.56 Yes No $ 49,996.12 Sr. Programmer/Analyst Roy Todd $ 78,117.23 0.57 Yes No $ 44,526.82 Sr. Programmer/Analyst Laurie McCall $ 78,117.23 0.47 Yes No $ 36,715.10 Park Maintenance Worker II Jorge Estrella $ 44,207.26 0.53 Yes No $ 23,429.85 Park Maintenance Worker II Antonio Gonzalez $ 44,207.26 0.57 Yes No $ 25,198.14 Park Maintenance Worker III Dan Tarnasky $ 48,629.39 0.47 Yes No $ 22,855.81 Park Maintenance Worker III John Falos $ 48,629.39 0.47 Yes No $ 22,855.81 Program Coordinator Diane Amaral $ 41,664.94 0.57 Yes No $ 23,749.02 Dispatcher/Jailer Cathy Donnelly $ 56,646.01 0.47 Yes No $ 26,623.62 Dispatcher/Jailer Bonnie Garcia $ 56,646.01 0.571 Yes No $ 32,288.23 Dispatcher/Jailer Jane Randolph $ 56,646.01 0.47 Yes No $ 26,623.62 Dispatcher/Jailer Daphne Gaines $ 56,646.01 0.47 Yes No $ 26,623.62 Senior Planner David Morimoto $ 84,278.31 0.56 Yes No $ 47,195.85 Buildina Ins ector II Alan Lucero $ 57,238.94 0.57 Yes No $ 32,626.20 Building Inspector II Scott Howsden $ 63,105.94 0.47 Yes No $ 29,659.79 Fire Chief Mike Pretz $ 129,417.59 0.82 No 0.95 No $ 100,816.30 Fire Captain Mike Lair $ 89,013.68 0.87 No 0.95 No $ 73,569.81 Fire Captain James Miller $ 89,013.68 0.82 No 0.95 No $ 69,341.66 Fire Captain Rick Gerlack $ 89,013.68 0.87 No 0.95 No $ 73,569.81 Fire Captain Brian Jun eblut $ 89,013.70 0.87 No 0.95 No $ 73,569.82 Fire Inspector Jerri Christiano $ 80,738.12 0.87 No 0.95 No $ 66,730.06 Salary Savings: $ 1,894,507.38 NAAdmin istration\Personnel\Cristina's\Estimated buy-out costals Cost: $ 1,159,116.69 Estimated Increase in Employer Contribution: (Based on $22,904,740 annual payroll for Misc. & Fire) Actual Annual Cost: $ 0.003822204 80,305.38 CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary for the increase in retirementbenefit(s) have been made public at a public meeting of the City Council of the (governing body) City of Lodi (public agency) on February 18, 2009 which is at least two weeks priorto the adoption of the (date) Resolution/ Ordinance. Clerk/Secretary Title Date PERS-CON-12A (rev. 1/96) TWO YEARS ADDITIONAL SERVICE CREDIT Section 20903 Estimated Employer Cost K4c ATTACHMENT A Sr. Civ"EiFer Sharon Welch $ 95 660.37 0.57 Yes No $ 54 526.41 Sr. Civil E r Wes Fu"itani $ 95 660.37 0.47 Yes No $ 441960-37 Public Works Inspector Wil McVicker $ 63 105.90 0.57 Yes No $ 35,970-36 Associate Civil E r Mark Lindseth $ 84,792.13 0.56 Yes No $ 47 483.59 Fleet and Facilities Mana r Dennis Callahan $ 85,019,45 0.56 Yes No $ 47 610.89 Streets & Drainage Manager Geor a Bradley $ 89 278.78 0.56 Yes No $ 49,996-12 Sr. Proqrammer/Analyst Roy Todd $ 78 117.23 0.37 Yes No $ 44 526.82 Sr. Program mar/Analt Laurie McCall $ 78 117.23 0.47 Yes No $ 36,715.10 Park Maintenance Worker II Jar a Estrella $ 44 207.26 0.53 Yes No $ 23,429.85 Park Maintenance Worker II Antonio Gonzalez $ 44 207.26 0.57 Yes No $ 25,11 Park Maintenance Worker III Dan Tarnasky $ 48 629.39 0.47 Yes No $ 22,855-81 Park Maintenance Worker III John Fabs $ 48 629.39 0.47 Yes No $ 22,855-81 Program Coordinator Diane Amaral $ 41,664.94 0.57 Yes No $ 23 749.02 Dispatcher/Jailer Cathy Donnelly $ 56 646.01 0.47 Yes No $ 26 623.62 Di atcher/Jailer Bonnie Garcia $ 56 646.01 0.57 Yes No $ 32 288.23 Dispatcher/Jailer Jane Randolph $ 56,646.01 0.47 Yes No $ 26 623.62 D' tcher/Jailer Daphne Gaines $ 56 646.01 0.47 Yes No $ 26 623.62 Senior Planner David Morimoto $ 84 278.31 0.56 Yes No $ 47,195-85 Building Inspector II Alan Lucero $ 57,238.94 0.57 Yes No $ 32 626.20 Building Inspector II Scott Howsden $ 63,105.94 0.47 Yes No $ 29,659.79 Fire Chief Mike Pretz $ 129 417.59 0.62 No 0.95 No $ 100 816.30 Fire Captain Mike Lair $ 89 013.68 0.87 No 0.95 No $ 73,569 Fire Captain James Miller $ 89 013.68 0.82 No 0.95 No $ 69,341-66 Fire Captain Rick Gerlack $ 89,013-68 0.87 No 0.95 No $ 73 569.81 Fire Ca in Timothy Thalken $ 89,013.68 0.87 No 0.95 No $ 73,569.81 Fire Captain Brian Jun eblut $ 89 013.70 0.87 No 0.95 No $ 73 569.82 Fire Inspector Jerri Christiano $ 80,738-12 0.87 No 0.95 No $ 66 730.06 Salary Savings: $ 1,983,521.06 Estimated Increase in Employer Contribution: (Based on $22,904,740 annual payroll for Misc. & Fire) Actual Annual Cost: $ N:tiAdministrationlPersonnetlCristina'slEstimated buy-out cost.xls 0.004064801 93,103.21 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch PublicAgency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary for the increase in retirement benefit(s) have been made public at a public meeting of the City Council cf the (governing body) City of Lodi (public agency) on February 18, 2009 which is at leasttwo weeks priorto the adoption of the (date) Resolution/ Ordinance. Cle Date February 19, 2009 PERS-CON-12A (rev. 1/96) Randi Johl. City Clerk Title 131