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Home My WebLink AboutAgenda Report - December 21, 2011 C-15AGENDA ITEM C4015 &1& CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit. MEETING DATE: December 21,201 1 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 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 amendmentto the PERS contract. The designated period for Two Years Additional Service Credit would begin December 22, 2011 and go through June 18, 2012 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 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 $700,000 annually in salary and benefits. FUNDING AVAILABLE: Funding available from the departments operating budget. \ V A - A Dean Gualco, Human Resources hLager Jordan Ayers, Deputy Ci Manager and Internal Services Director A nnne%,k i'rr.% Arrr7\J V CU. , Interim ,City Manager RESOLUTION NO, 2011-194 A RESOLUTION OF THE LODI CITY COUNCIL GRANTING ANOTHER 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 December 21, 2011 through June 18, 2012, for eligible members in the following classifications: Construction/Maintenance Supervisor Barry Fisher Distribution Planning Supervisor, Edward Fitzpatrick Electric Apparatus Mechanic Lance Mauck Fire Captain William Broderick Fire Captain Joseph Hansen Fire Captain Timothy Thalken Fire Captain Pete Iturraran Fire Engineer John Heinrich Prnnram Cnnrdinatnr Diane Amaral Street Maintenance Worker III Randall McVinnie Street Maintenance Worker III Richard Morgan Street Maintenance Worker III Jose Vargas Water/Wastewater Supervisor Christopher Knoll Water/Wastewater Supervisor Kelly Powers WaterMastewater Sunervisor Ronald Stawski Dated: December 21, 2011 1 hereby certify that Resolution No. 2011-194 was passed and adopted by the Lodi City Council in a regular meeting held December 21, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS — Hansen, Katzakian, Nakanishi, and Mayor Mounce COUNCIL MEMBERS — None COUNCIL MEMBERS — Johnson COUNCIL MEMBERS — NoneZ)7 2011-194 JOHL City Clerk 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 December 21, 2011 Clerk/ ecretary City Clerk Title PERS-CON-12 (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 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 cf 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, December21,201 1 through June 18,2012. Atte City December 22, 2011 Date CITY COUNCIL OFTHE CITY O. LODI l n� BY ayor 2yr certification -PA (Rev. 4/04) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services PO Box 942709 Sacramento, CA 94229-2709 (888)CalPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 hereby certifythat 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 December 7,201 1 which is at least two weeks prior to the adoption of the Resolution. 4*:� Clerk/Secretary City Clerk Title December 22, 2011 Date PERS-CON-12A (rev. 1/96)