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HomeMy WebLinkAboutCC AG PKT 2003-12-08 #P AGENDA REPORT (i 4 D.) gi DATE: December 8, 2003 TO: Honorable Mayor and City Council Cff FROM: John B. Bahorski, City Manager SUBJECT: (Lifeguard / Police Safety - PERS Contract Amendment) SUMMARY OF REQUEST: That Council adopt the attached Resolution of Intention 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, Ca1PERS requires a resolution of intention be adopted giving notice of the City's intention to approve an amendment to the PERS contract to provide credit for unused sick leave to the Lifeguard Safety Unit. In addition to the resolution of intention, 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 subsequent adoption of this ordinance and a future scheduled retirement of a Lifeguard Safety employee, the City Council will be requested to consider an Urgency Ordinance at its January 12, 2004 meeting. 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. • Item P Credit For Unused Sick Leave - Lifeguard Report — Page 2 December 8, 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 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA STATING ITS INTENTION TO APPROVE AN . AMENDMENT TO CONTRACT BETWEEN THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SEAL BEACH" Submitt : ■y: ,(34. John 1B: ahorski, City Manager Attachments 1. PERS Disclosure of Contract Amendment Costs 2. Resolution Approving 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% Cert. of Governing Body's Action [CON12] Page 1 of 2 Joanne Yeo From: Stephens, Sylvia [ Sylvia_Stephens @CaIPERS.CA.GOV] Sent: Friday, January 09, 2004 11:41 AM To: Joanne Yeo - Subject: CONI2.DOC Here is the document. CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CaIPERS (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) rTTY OP SPAT, BRACH (public agency) on December 8, 2003 (date) • Ie,k/Secreta City Clerk Title 1/9/2004 Cert. of Compliance with 7507 Page 1 of 2 Joanne Yeo From: Stephens, Sylvia [ Sylvia_Stephens @CaIPERS.CA.GOV] Sent: Friday, January 09, 2004 11:42 AM To: Joanne Yeo Subject: CON12A.DOC Here is the other document. CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. 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 and /or the increase in retirement benefit(s) have been made public at a public meeting of the C ITY COUNCIL of the (governing body) CTTY OF SRAT. REACH - (public agency) 011 December 8, 2003 which is at least two weeks prior to the adoption of the (date) Fie/stilt/WY/ Ordinance. .e,eazzeA , (_;c Ck/Secretary City Clerk Title . - 1/9/2004 Cert. of Compliance with 7507 Page 2 of 2 Dat PERS- CON -12A (rev. 1/96) 1/9/2004