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HomeMy WebLinkAboutAgenda Report - September 19, 2012 C-11AGENDA ITEM C40011 AhCITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Adopt Resolutionto Grant Designated Period for Two Years Additional Service Credit MEETING DATE: September 19, 2012 PREPARED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolutionto grant designated period for two years additional service credit. BACKGROUND INFORMATION: The anticipated need to further reduce City spending in FY 2012/13 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 amendmentto the PERS contract. The designated period for two years additional service credit would begin September 20, 2012 and go through March 17, 2013 for eligible Miscellaneous 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 CalPERS 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 $400,000 annually in salary and benefits. FUNDING AVAILABLE: Not applicable. APPROVED: 7, C� -� ) Dean &410, Human Resources M nager Jordan Ayers, Deputy City nager/ Internal Services Director Bartlam, City Manager CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch PublicAgency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF 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/change in retirement benefit(s) have been made public at a public meeting of the City Council (governing body) City of Lodi on August 15,2012 (date) Resolution/ Ordinance. (public agency) of the which b at least two weeks prior to the adoption of the Adoption of the retirement benefit increaselchange will not be placed on the consent calendar. Clerk/Secr City Clerk Title Date September 24, 2012 PERS-CON-12A (rev. 1/96) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit P.O. Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF COMPLIANCEWITH 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: 7. 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 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, September 19, 2012 through March 17,2013 CITY COUNCIL OF THE CITY O LODI BY P esiding Officer Atte Cler ary September 24, 2012 Date 2yr certification -PA (Rev. 4104) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch PublicAgency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) 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 (governing body) City of Lodi (public agency) on September 19,2012 (date) Clerk/Secretary City Clerk Title PERS-CON-12 (rev. 1/96) RESOLUTION NO. 2012-149 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 RESOLVEDthat 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 September 19, 2012 through March 17, 2013, for eligible members in the following classifications: Classification Department Administrative Secretary Fire Electrical Technician Electric Utility Library Services Manager Libra Parks Maintenance Worker III Park, Recreation & Cultural Services Date: September 19, 2012 I hereby certify that Resolution No. 2012-149 was passed and adopted by the Lodi City Council in a regular meeting held September 19, 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN COUNCIL MEMBERS —Johnson, Katzakian, Nakanishi, and Mayor Mounce COUNCIL MEMBERS — None COUNCIL MEMBERS — Hansen COUNCIL MEMBERS — None 2012-149 RANDI JOHL City Clerk