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Home My WebLink AboutAgenda Report - March 2, 2011 I-02AGENDA ITEM].,02M CITY OF LODI COUNCIL COMMUNICATION • TM AGENDA TITLE: Cost to Grant Two Years Additional Service Credit Under Government Code Section 20903. MEETING DATE: March 2,201 1 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Cost to grant two years additional service credit under Government Code Section 20903. BACKGROUND INFORMATION: The CaIPERS two year additional service credit program, as established under California Government Code Section 20903, allows the City (as part of a budget reduction process) to offer a retirement incentive of two years service credit to employees. The current PERS contract allows the City to offer the program to Miscellaneous and Safety employees. The program requires that participating employees be at least fifty (50) years of age, have five (5) years of service credit with 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. Government Code Section 7507 requires that the costs to provide this benefit as stated in Attachment A be made pubic at a public meeting at least two weeks prior to City Council adoption of the Resolution. This communication serves as that public notice. Note: Although Attachment A includes the classifications staff is recommending for the additional service credit, we anticipate the cost to be significantly lower as not all employees within these classifications will be offered — and accept — the two years additional service credit retirement option. As stated earlier, the cost of the program must be made public for a minimum of two weeks. At the March 16, 2011 Council meeting, staff will present the resolution adopting the two years service credit purchase for those employees who will be offered this retirement option. As a result of the previous three (3) service credit offers, the City has saved approximately $2.7 million in employee salary and benefits. Additionally, on average it takes the City four (4) months to recoup the cost of offering the two years additional service credit. FISCAL IMPACT: The cost of this benefit will be amortized over twenty (20) years and included in the City's CaIPERS employer contribution rate beginning in FY 2012/2013. FUNDING AVAILABLE: Not applicable. I oe� Dean"al Hum n esourc s Manager radt Bartlam, City Manager 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 Accountant II Lourdes Bondoc $ 69,982.33 0.56 Yes No $ 39,190.10 Administrative Clerk - PD Susan Mora $ 37,439.44 0.56 Yes No $ 20,966.09 Administrative Secreta - PD Sandra Meyers $ 49,800.81 0.471 Yes No $ 23,406.38 Administrative Secreta - PW Wastewater Diana Gonzales $ 49,800.85 0.57 Yes No $ 28,386.48 Dispatch Supervisor Debra Hammonds $ 70,451.57 0.56 Yes No $ 39,452.88 Finance Technician Gail Glissman $ 60,064.16 0.47 Yes No $ 28,230.16 Fire Engineer Michael Fau ht $ 75,018.00 0.77 No 0.95 No $ 54,875.67 Fire Engineer John Heinrich $ 75,018.00 0.77 No 0.95 No $ 54,875.67 Fleet and Facilities Manager Dennis Callahan $ 85,019.45 0.561 Yes No $ 47,610.89 Information Systems Specialist Dale Taylor $ 56,818.44 0.471 Yes No $ 26,704.67 Legal Secretary Peggy Nicolini $ 59,055.35 0.47 Yes No $ 27,756.01 Librarian II Beh'at Kerde ari $ 65,902.50 0.57 Yes No $ 37,564.43 Librarian II Sandra S. Smith $ 65,902.50 0.56 Yes No $ 36,905.40 Park Maintenance Worker II James Bosch $ 44,207.26 0.47 Yes No $ 20,777.41 Park Maintenance Worker II Jorge Estrella $ 44,207.26 0.531 Yes No $ 23,429.85 Park Maintenance Worker III Pete Melendez $ 48,629.39 0.47 Yes No $ 22,855.81 Park Maintenance Worker III Daniel Tarnasky $ 48,629.39 0.47 Yes No $ 22,855.81 Park Superintendent Steve Dutra $ 85,027.42 0.56 Yes No $ 47,615.36 Park Supervisor Timothy McGeorge $ 61,643.09 0.56 Yes No $ 34,520.13 Park Supervisor Duane Wright $ 61,643.09 0.56 Yes No $ 34,520.13 Purchasing Technician Sherry Moroz $ 47,878.64 0.47 Yes No $ 22,502.96 Senior Police Administrative Clerk Margie Martin $ 43,594.61 0.56 Yes No $ 24,412.98 Senior Police Administrative Clerk Julie Wall $ 43,594.61 0.47 Yes No $ 20,489.47 Sr. Civil Engineer Wes Fu'itani $ 95,660.37 0.56 Yes No $ 53,569.81 Sr. Engineering Technician Rick Kiriu $ 70,076.11 0.56 Yes No $ 39,242.62 Sr. Facilities Maintenance Worker Tom Elhard $ 53,599.03 0.56 Yes No $ 30,015.46 Streets & Drainage Superintendent Curt Juran $ 89,278.80 0.56 Yes No $ 49,996.13 ,Supervising Accountant Coriene Wadlow I $ 82,372.07 0.561 Yes No $ 46,128.36 Welder/Mechanic Ken Gruszie $ 53,205.94 0.57 Yes No $ 30,327.39 SalarySavings: $ 1,793,520.48 *PRSA - Post Retirement Survivor Allowance NAAdmin istration\Personnel\Cristina's\Estimated buy-out cost2011.x1s Estimated Increase in Employer Contribution: (Based on $22,904,740 annual payroll for Misc. & Fire) Actual Annual Cost: $ 0.00326185 68,861.63 TWO YEARS ADDITIONAL SERVICE CREDIT Section 20903 Estimated Emolover Cost 71 •2m ATTACHMENTA i fi > z i h e��, flame Pay Rade Facfor ,} Yes:or No= PRSA Con r1 Accountant II Lourdes Bondoc $ 69,982.33 0.56 Yes No $ 39,190.10 Administrative Clerk - PD Susan Mora $ 37,439.44 0.56 Yes No $ 20,966.09 Administrative Secreta - PD Sandra Meyers $ 49,800.81 0.47 Yes No $ 23,406.38 Administrative Secreta - PW Wastewater Diana Gonzales $ 49,800.85 0.571 Yes No $ 28,386.48 Dispatch Supervisor Debra Hammonds $ 70,451.57 0.56 Yes No $ 39,452.88 Finance Technician Gail Glissman $ 60,064.16 0.47 Yes No $ 28,230.16 Fire Engineer Michael Fau ht $ 75,018.00 0.77 No 0.95 No $ 54,875.67 Fire Engineer John Heinrich $ 75,018.00 0.77 No 0.95 No $ 54,875.67 Fleet and Facilities Manager Dennis Callahan $ 85,019.45 0.56 Yes No $ 47,610.89 Information Systems Specialist Dale Taylor $ 56,818.44 0.47 Yes I No $ 26,704.67 Le al Secretary r2M Nicolini $ 59,055.35 0.47 Yes No is 27,756.01 Librarianil Beh'at Kerde ari $ 65 902.50 0.57 Yes No $ 37,564.43 Librarian II Sandra S. Smith $ 65 902.50 0.56 Yes No $ 36,905.40 Meter Reader Vicky Whetstone $ 46,510.70 0.47 Yes No $ 21 860.03 Park Maintenance Worker 11 James Bosch $ 44 207.26 0.47 Yes No $ 20,777.41 Park Maintenance Worker I I Jor a Estrella $ 44 207.26 0.53 Yes No $ 23 429.85 Park Maintenance Worker II I Pete Melendez $ 48 629.39 0.47 Yes No $ 22 855.81 Park Maintenance Worker Ill DanielTarnask 48 629.39 0.47 Yes No $ 22,855.81 Park Superintendent Steve Dutra $ 85 027.42 0.56 Yes No $ 47 615.36 Park Supervisor Timothy McGeor e $ 61 643.09 0.56 Yes No $ 34 520.13 Park Supervisor Duane Wright $ 61 643.09 0.56 Yes No $ 34,520.13 Purchasing Technician Sherry Moroz $ 47 878.64 0.47 Yes No $ 22 502.96 Senior Police Administrative Clerk Mar ie Martin $ 43 594.61 0.56 Yes No $ 24 412.98 Senior Police Administrative Clerk Julie Wall 43 594.61 0.47 Yes No $ 20 489.47 Sr. Civil Engineer Wes Fujitani 95 660.37 0.56 Yes No $ 53 569.81 Sr. Engineering Technician Rick Kiriu 70 076.11 0.56 Yes No $ 39 242.62 Sr. Facilities Maintenance Worker Tom Elhard 53 599.03 0.56 Yes No $ 30 015.46 Streets & Drainage Superintendent Curl Juran $ 89 278.80 0.56 Yes No $ 49 996.13 Supervising Accountant Coriene Wadlow 82 372.07 0.56 Yes No $ 46128.36 Welder/Mechanic Ken Gruszie $ 53 205.94 0.57 Yes No $ 30 327.39 Salary Savings: $ 1,840,031.18 'PRSA - Post Retirement SurvivorAllowance N:\Administration\Personnel\Cristina's\Estimated buy-out cost201 Uls Estimated Increase in Employer Contribution: (Based on $22,904,740 annual payroll for Misc. & Fire) Actual Annual Cost: $ 0.003333933 70,228.34