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Home My WebLink AboutAgenda Report - August 5, 2009 C-14AGENDA ITEM Fo4o 14 CITY OF LODI COUNCIL COMMUNICATION • TM AGENDA TITLE: Adopt Resolution to Grant Another Designated Period for Two Years Additional Service Credit to the Street Maintenance Worker III classification. MEETING DATE: August 5,2009 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant another designated period for Two Years Additional Service Credit to the current Street Maintenance Worker III classification. BACKGROUND INFORMATION: The anticipated need to further reduce City spending in FY 2009110 has necessitated the 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. This program has been used as a cost cutting tool. Although eligible, management originally chose not to offer the retirement incentive to Street Maintenance Worker Ill's. Subsequently, layoffswere proposed in this division. This Resolution limits the Two Year Additional Service Credit incentive to the current Street Maintenance Worker III classification, and designates the period for eligible employees to select the Two Year Additional Service Credit option beginning August 6, 2009 and going through November 4, 2009. This resolution grants final approval and completes the process. FISCAL IMPACT: This program will save funds. Although there is a cost amortized over 20 years, within the first year total annual savings including benefits for two positions exceed total lifelong cost by $90,000. If the positions remain vacant for a second year the additional savings in the amount of $155,000 would be realized. FUNDING AVAILABLE: Not applicable. Respectfully submitted, Jordan Ayers, Deputy City M ager APPROVED: Blair King, t Manager 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 accordance with 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 employees who 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 of 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 underthis 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, August 6,2009 through November4,2009. CITY COUNCIL OF THE CITY OF LODI BY Attest: City Clerk Date Mayor 2yr certification -PA (Rev. 4/04) 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 August 5, 2009. Clerk/Secretary Title PERS-CON-12 (rev. 1/96) RESOLUTION NO. 2009-106 A RESOLUTION OF THE LODI CITY COUNCIL GRANTINGANOTHER PERIOD FORTWO YEARS ADDITIONAL SERVICE CREDIT WHEREAS, the City Council of the City of Lodi is a contracting PublicAgency 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 for Two Years Additional Service Credit and does hereby authorize this Resolution, indicating a desire to add a designated period from August 6, 2009 through November4, 2009, for eligible members in the following classifications: Classification I Department Street Maintenance Worker III I Public Works Date: August 5, 2009 hereby certify that Resolution No. 2009-106 was passed and adopted by the Lodi City Council in a regular meeting held August 5, 2009, by the following vote: AYES: NOES: ABSENT: ABSTAIN COUNCIL MEMBERS —Hitchcock, Johnson, Katzakian, Mounce, and Mayor Hansen COUNCIL MEMBERS— None COUNCIL MEMBERS — None COUNCIL MEMBERS — None 2009-106 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 accordance with 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 retirement fund for all eligible employees who 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 of 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, August 6,2009 through. November4,2009. At st: Ci `4R Date CITY COUNCIL OF THE CITYOFJ„ODI B -0 Mayor 2yr certification -PA (Rev. 4/04) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit PO Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council cf the City of Lodi on August 5,2009. Clerk/S ary Title PERS-CON-12 (rev. 1/96)