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HomeMy WebLinkAboutAgenda Report - May 19, 2010 J-03AGENDA ITEM a CITY OF LODI `�_'- (..,,. � COUNCIL COMMUNICATION .9M AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit. MEETING DATE: May 19,2010 PREPARED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant designated period for two years additional service credit. 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 eligible employees. The current PERS contract allows the City, with Council approval, to offer the program to Miscellaneous and Fire (sworn) 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 May 20, 2010 and go through August 18, 2010 for eligible Miscellaneous and Fire (sworn) members in the following classifications: Fire Captain and Park Maintenance Worker II. 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 2012/2013. 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 $130,000 annually. FUNDING AVAILABLE: Funding available from the departments operating budget. Dean Gua o, Human Resources Manager APPROVED: vl Konra`ai�artlam, Interim City Manager RESOLUTION NO. 2010-69 A RESOLUTION OF THE LODI CITY COUNCIL TO GRANT ANOTHER PERIOD FOR TWO 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. Classification Department Fire Captain Fire Park Maintenance Worker II Parks and Recreation Date: May 19, 2010 I hereby certify that Resolution No. 2010-69 was passed and adopted by the Lodi City Council in a regular meeting held May 19, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 2010-69 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit PO Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF GOVERNING BODY'SACTION 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 May 19, 2010. CIe ary C it y Clerk Title PERS-CON-12 (rev. 1/96) 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 20903 I n accordancewith Government Code Section 20903 and the contract between the Public Employees' Retirement System, the City Council cf 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 curtailmentof, 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, May 20, 2010 through August 18, 2010 A Cie e ary C i t v Clerk Date CITY COUNCIL OF THE CITY OF LODI Presiding Officer- Mayor 2yr certification -PA (Rev. 4/04) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch PublicAgency Contract Services PO Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION CIE' 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 of the City of Lodi on May 6, 2010 which is at least two weeks priorto the adoption of the Resolution. Cler Citv Clerk Title May 20, 2010 Date PERS-CON-12A (rev. 1/96)