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HomeMy WebLinkAboutAgenda Report - March 16, 2011 C-11AGENDA ITEM C40%\ A� CITY OF LODI %V COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit. MEETING DATE: March 16,2011 PREPARED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant designated period for two years additional service credit. BACKGROUND INFORMATION: The anticipated need to further reduce City spending in FY 2011/12 has necessitated the City explore additional options to reduce staffing. The CalPERS 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 eligible employees. 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 17, 2011 and go through June 30, 2011 for eligible Miscellaneous and Fire (sworn) members. 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 2013/2014. Although the net savings depends on the number of employees who accept the benefit, the anticipated job vacancies are expected to save the City approximately $800,000 annually in salary and benefits. FUNDING AVAILABLE: Funding available from the departments operating budget. Dean Gualco, Human Resources anager Jord n Ayers, Deputy ty anager and Internal Services Director APPROVED: Konradt Bartlam, Interim City Manager CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch PublicAgency Contract Services PO Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATIONOF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 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 of the City of Lodi on March 2,2011 which is at least two weeks priorto the adoption (f the Resolution. 1 Cler cretary Citv Clerk Title 3/28/11 Date PERS-CON-12A (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 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 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 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 memberswho retire within the designated period, March 17, 2011 through June 30, 2011. CITY COUNCIL OF THE CITY OF, BY Mayor '7 Atter i City Clerk 3/28/11 Date 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 of the City of Lodi on March 16, 2011. Clerk/Secretary City Clerk Title PERS-CON-12 (rev. 1/96) RESOLUTION NO. 2011-33 A RESOLUTION OF THE LODI CITY COUNCIL GRANTING DESIGNATED 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 17, 2011 through June 30, 2011, for eligible members in the following classifications: Classification Department Accountant II Internal Services Administrative Clerk Police Administrative Secretary Police Administrative Secretary Public Works — Wastewater Dispatch Supervisor Police Finance Technician Internal Services Fire Engineer Fire Fleet and Facilities Manager Public Works Information Systems Specialist Internal Services Legal Secretary City Attorne Librarian II Library Meter Reader Electric Utility Park Maintenance Worker II Parks and Recreation Park Maintenance Worker III Parks and Recreation Park Superintendent Parks and Recreation Park Supervisor Parks and Recreation Purchasing Technician Internal Services Senior Police Administrative Clerk Police Senior Civil Engineer Public Works Senior Engineering Technician Public Works Senior Facilities Maintenance Worker Public Works Streets & Drainage Superintendent Public Works Supervising Accountant Internal Services Welder/Mechanic Public Works Date: March 16, 2011 I hereby certify that Resolution No. 2011-33 was passed and adopted by the Lodi City Council in a regular meeting held March 16, 201 1 by the following vote: AYES: COUNCIL MEMBERS —Hansen, Katzakian, Mounce, Nakanishi, and MayorJohnson NOES: COUNCIL MEMBERS—None ABSENT: COUNCIL MEMBERS— None ABSTAI N: COUNCIL MEMBERS— None L City Clerk 2011-33