HomeMy WebLinkAboutCC AG PKT 2004-01-12 #R Dj oig" ) j
AGENDA January REPORT
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DATE: Janu 12 , 2004
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- TO: Honorable Mayor and City Council , 0 8 °
FROM: John B. Bahorski, City Manager
SUBJECT: (Lifeguard / Police Safety - PERS Contract Amendment)
SUMMARY OF REQUEST:
That Council adopt the attached Urgency Ordinance to amend the California Public
Employees' Retirement System contract to provide Section 20965 (Credit For Unused
Sick Leave) to the Lifeguard Safety unit .
BACKGROUND:
Prior to the recent contract amendment for the Police Safety unit under the PERS system,
the Lifeguard Safety and the Police Safety units received the same benefits. To restore
equality to the Lifeguard Safety unit under the Ca1PERS retirement system with that of
the Police Safety Unit and to address potential liability concerns with a Lifeguard Safety
unit comprised of only two active employees, the City merged the two plans. However,
after the merge, the Lifeguard Safety unit was not provided with the credit for unused
sick leave credit option which was provided to the Police Safety unit.
To rectify this situation, the City must pass an ordinance authorizing an amendment to
the contract between City of Seal Beach and Ca1PERS. Due to a timing problem between
the adoption of this ordinance and a future scheduled retirement of a Lifeguard Safety
employee, the City Council is requested to consider an Urgency Ordinance.
FISCAL IMPACT:
- Government Code 7507 requires that the future annual costs of the proposed contract
amendment be made known. Currently, the City is contributing 42.401% of each safety
employees' salary into the PERS retirement system. With the contract amendment, that
contribution will change by 0.044% to change to 42.445 %. The total cost on a present
value basis is $11,944.
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Item R
Credit For Unused Sick Leave - Lifeguard Report — Page 2
January 12, 2003
With the amendment in place, the Lifeguard Chief is expected to retire at the end of
January 2004 and the City would fill the two full -time positions with a Lifeguard Captain
and a Marine Yearly Lifeguard with subsequent salary savings equal to the cost of the
amendment.
Attached is the PERS disclosure of contract amendment costs.
RECOMMENDATION:
That City Council shall:
Adopt "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA AUTHORIZING AN AMENDMENT TO CONTRACT
BETWEEN THE CITY COUNCIL OF SEAL BEACH AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND HEREBY DECLARES THE URGENCY
THEREOF"
Submitted by:
Jo Bahorski, City Manager
Attachments
1. PERS Disclosure of Contract Amendment Costs
2. Ordinance Authorizing an Amendment to PERS Retirement System
PERS DISCLOSURE OF CONTRACT AMENDMENT COSTS
1) Change in the Prevent Value of Benefits $11,944
2) Changed in the Accrued Liability $10,533
3) Change in the Total Employer Rate 0.044%