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HomeMy WebLinkAboutAgenda Report - May 4, 2016 I-05TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM I- 5 AGENDA TITLE: Adopt Resolution to Grant Designated Period for Two Years Additional Service Credit in Accordance with Government Code Section 20903 MEETING DATE: May 4, 2016 PREPARED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution to grant designated period for two years additional service credit in accordance with Government Code Section 20903. BACKGROUND INFORMATION: The anticipated need to further reduce City spending in FY 2016/17 has necessitated the City to explore additional options to reduce staffing. The CaIPERS Two Years 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 additional service credit to eligible employees who retire within a designated period of time. The City of Lodi desires to designate a period in which eligible employees who qualify for Two Years Additional Service Credit, based on the amendment to the PERS contract, can retire under the program. The designated period for the Two Years Additional Service Credit program would be from May 5, 2016 through September 1, 2016, for eligible Miscellaneous members in the specified job classification of Recreation Superintendent. This resolution grants final approval and completes the process. FISCAL IMPACT: The cost of this benefit will be amortized over 5 years and included in the City's CaIPERS employer contribution rate beginning in FY 2019/2020. The anticipated job vacancy is expected to save the City approximately $132,375 annually in salary and benefits. FUNDING AVAILABLE: Funding available from the departments operating budget. Adele Post, Human Resources Manager 1C(Jvw Jordan yers, Deputy City M. nager APPROVED: Stephen Schwab -u r ity Manager 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 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, May 5, 2016 through September 1, 2016. CITY COUNCIL OF THE CITY OF LODI BY Mayor Attest: City Clerk Date 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) CaIPERS (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 in retirement benefit(s) have been made public at a public meeting of the City Council of the City of Lodi on April 20, 2016 which is at least two weeks prior to the adoption of the Resolution. Clerk/Secretary City Clerk Title 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 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 May 4, 2016. Clerk/Secretary Title PERS-CON-12 (rev. 1/96) RESOLUTION NO. 2016-75 A RESOLUTION OF THE LODI CITY COUNCIL GRANTING ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 20903 WHEREAS, the City of Lodi is a contracting Public Agency of the California Public Employees' Retirement System (CaIPERS); and WHEREAS, the City of Lodi's contract with CaIPERS includes the optional benefit of Two Years Additional Service Credit for local Miscellaneous members; and WHEREAS, the City of Lodi has a need to reduce City spending in Fiscal Year 2016/17; and WHEREAS, the City of Lodi desires to provide another designated period for Two Years Additional Service Credit, in accordance with Government Code 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 the Lodi City Council does hereby approve and hereby grant another designated period for Two Years Additional Service Credit, in accordance with Government Code Section 20903, from May 5, 2016 through September 1, 2016 for eligible members in the following classification: Classification Department Recreation Superintendent Date: May 4, 2016 Parks, Recreation, and Cultural Services I hereby certify that Resolution No. 2016-75 was passed and adopted by the Lodi City Council in a regular meeting held May 4, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None J NNIFE City Clerk 2016-75 M. FERRAIOLO 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 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, May 5, 2016 through September 1, 2016. CITY COUNCIL OF THE CITY OF LODI - BY r :".: Mayor Attest: Qy Clerk 5151/ Date 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) CaIPERS (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 in retirement benefit(s) have been made public at a public meeting of the City Council of the City of Lodi on April 20. 2016 which is at least two weeks prior to the adoption of the Resolution. A MA ir.-1:111'"3-712-44.4k.,04-,6 k/SecreTy City Clerk Title 5is1iso 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 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 May 4, 2016. C)k/Secrety Title PERS-CON-12 (rev. 1/96) RESOLUTION NO. 2016-75 A RESOLUTION OF THE LODI CITY COUNCIL GRANTING ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT IN ACCORDANCE WITH GOVERNMENT CODE SECTION 20903 WHEREAS, the City of Lodi is a contracting Public Agency of the California Public Employees' Retirement System (CaIPERS); and WHEREAS, the City of Lodi's contract with CaIPERS includes the optional benefit of Two Years Additional Service Credit for local Miscellaneous members; and WHEREAS, the City of Lodi has a need to reduce City spending in Fiscal Year 2016/17; and WHEREAS, the City of Lodi desires to provide another designated period for Two Years Additional Service Credit, in accordance with Government Code 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 the Lodi City Council does hereby approve and hereby grant another designated period for Two Years Additional Service Credit, in accordance with Government Code Section 20903, from May 5, 2016 through September 1, 2016 for eligible members in the following classification: Classification Recreation Superintendent Department Parks, Recreation, and Cultural Services Date: May 4, 2016 I hereby certify that Resolution No. 2016-75 was passed and adopted by the Lodi City Council in a regular meeting held May 4, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 2016-75 /reAA-4L-d0 NNIFEt M. FERRAIOLO City Clerk