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HomeMy WebLinkAboutAgenda Report - March 4, 2009 K-01AGENDA ITEM V%sol CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit. MEETING DATE: March 4,2009 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant designated period for Two Years Additional Service Credit. BACKGROUND INFORMATION: The budget shortfall in FY 2008/09 and the anticipated need to further reduce City spending in FY 2009110 has necessitatedthe City explore additional options to reduce staffing. California Government Code Section 20903, through CaIPERS, 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 CaIPERS 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 credit with PERS, and retire within a specified period of time as identified by the City. The City of Lodi desires to designate a period in which eligible employees qualify for Two Years Additional Service Credit, based on the amendment to the PERS contract. The designated period for Two Years Additional Service Credit would begin March 5, 2009 and go through August 31, 2009 for eligible Miscellaneous and Fire (sworn) members in the following classifications: Associate Civil Engineer, Building Inspector 11, Dispatcher/Jailer, Fire Captain, Fire Chief, Fire Inspector, Park Maintenance Worker II & III, Program Coordinator, Public Works Inspector, and Senior Planner. California Public Employees' Retirement System (CaIPERS) requires a two-step process in which the cost of the increase in retirement benefits must be made public at least two weeks prior to the adoption of the final resolution. This resolution grants final approval and completes the process. 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 anticipated job vacancies are expected to save the City nearly $1 million annually. FUNDING AVAILABLE: Not applicable. Boon & 61APAR M*Lwn M§nRam APPROVED: Blair , ity Manager AGENDA ITEM K4 • CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit. MEETING DATE: March 4, 2009 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant designated period for Two Years Additional Service Credit. BACKGROUND INFORMATION: The budget shortfall in FY 2008/09 and the anticipated need to further reduce City spending in FY 2009/10 has necessitated the City explore additional options'to reduce staffing. California Government Code Section 20903, through CaIPERS, 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 CaIPERS 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 credit with PERS, and retire within a specified period of time as identified by the City. The City of Lodi desires to designate a period in which eligible employees qualify for Two Years Additional Service Credit, based on the amendment to the PERS contract. The designated period for Two Years Additional Service Credit would begin March 5, 2009 and go through August 31, 2009 for eligible Miscellaneous and Fire (sworn) members in the following classifications: Associate Civil Engineer, Building Inspector II, Dispatcher/Jailer, Fire Captain, Fire Chief, Fire Inspector, Park Maintenance Worker II & Ill, Program Coordinator, Public Works inspector, and Senior Civil Engineer, Senior Planner, Senior Programmer/Analyst, Streets & Drainage Manager. California Public Employees' Retirement System (CaIPERS) requires a two-step process in which the cost of the increase in retirement benefits must be made public at least two weeks prior to the adoption of the final resolution. This resolution grants final approval and completes the process. 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 anticipated job vacancies are expected to save the City nearly $1 million annually. FUNDING AVAILABLE: Not applicable. Respectfully submitted, DeaA C(#ca/,Tiur Iftesources Manager APPROVED: Blair y Manager RESOLUTION NO. 2009- A RESOLUTION OF THE LODI CITY COUNCIL TO GRANT ANOTHER PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT ----------------------. W=-" ------ ---------- ----------------- WHEREAS, w, -- ---------"---- WHEREAS, the City Council of the City of Lodi is a contracting Public Agency of the Public Employees' Retirement System; and WHEREAS, the City of Lodi desires to provide another designated period for Two Years Additional Service Credit, Section 20903, based on the contract amendment included in said contract which provided for Section 20903, Two Years Additional Service Credit, for eligible members;; NOW, THEREFORE, BE IT RESOLVED that said City Council does seek to add another designated period, and does hereby authorize this Resolution, indicating a desire to add a designated period from March 5, 2009 through August 31, 2009 for eligible members in the following classifications: Classification Department Associate Civil Engineer Public Works Building Inspector II Community Development Dispatcher/Jailer Police Fire Captain Fire Fire Chief Fire Fire Inspector Fire Park Maintenance Worker II & III Parks and Recreation Program Coordinator Community Center Public Works Inspector Public Works Senior Civil Engineer Public Works Senior Planner Senior Programmer/Anallyst Communi Development Information Systems Streets & Drainage Manager Public Works Date: March 4, 2009 I hereby certify that Resolution No. 2009- was passed and adopted by the Lodi City Council in a regular meeting held March 4, 2009, by the following vote: AYES: COUNCIL MEMBERS— NOES: COUNCIL MEMBERS— ABSENT: COUNCIL MEMBERS— ABSTAIN: COUNCIL MEMBERS— RANDIJOHL City Clerk 2009- RESOLUTION NO. 2009-26 A RESOLUTION OF THE LODI CITY COUNCIL GRANTING ANOTHER PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT WHEREAS, the City Council of the City of Lodi is a contracting Public Agency of the Public Employees' Retirement System: and WHEREAS, the City of Lodi desires to provide another designated period for two years additional service credit, Section 20903, based on the contract amendment included in said contract which provided for Section 20903, Two Years Additional Service Credit, for eligible members. NOW, THEREFORE, BE IT RESOLVED that said City Council does seek to add another designated period, and does hereby authorize this Resolution, indicating a desire to add a designated period from March 5, 2009 through August 31, 2009, for eligible members in the following classifications: Classification Department Associate Civil En ineer Public Works Building Inspector II Communfty Development Dispatcher/Jailer Police Fire Captain Fire Fire Chief Fire Fire Inspector Fire Park Maintenance Worker 11 & III Parks and Recreation Program Coordinator Community Center Public Works Inspector Public Works Senior Civil Engineer Public Works Senior Planner Community Development Senior Programmer/Analyst Information Systems Streets & Drainage Manager Public Works Date: March 4, 2009 hereby certify that Resolution No. 2009-26 was passed and adopted by the Lodi City Council in a regular meeting held March 4, 2009, by the following vote: AYES: COUNCIL MEMBERS —Hitchcock, Johnson, Katzakian, Mounce, and Mayor Hansen NOES: COUNCIL MEMBERS—None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS— None &OHIL City Clerk 2009-26 CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit PO Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF GOVERNING BODY'S ACTION hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Lodi on March 5,2009. dle ary Randi Johl. City Clerk Title PERS-CON-12 (rev. 1/96) CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit PO Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 20903 In accordancewith Government Code Section 20903 and the contract between the Public Employees' Retirement System, the City Council of the City of Lodi hereby certifies that: 1. Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. 2. The added cost to the retirementfund for all eligible employeeswho retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. 3. It has elected to become subject to Section 20903 because cf impending mandatory transfers, demotions, and layoffs that constitute at least 1 percent of the job classification, department or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services. 4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit. THEREFORE, the City Council of the City of Lodi hereby elects to provide the benefits of Government Code Section 20903 to all eligible members who retire within the designated period, March 5, 2009 through August 31, 2009. Atter City Cle - Randi ,Johl S316109 Date CITY COUNCIL OFTHE CITY OF LODI BYC:�6�,c 4 I�S, b affy-2yiJ Mayor _ La&T D. Hansen 2yr cerlitication-PA (Rev. 4/04)