PISMO BEACH COUNCIL AGENDA REPORT

Transcription

1 PISMO BEACH COUNCIL AGENDA REPORT SUBJECT / TITLE: AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF PISMO BEACH AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM. RECOMMENDATION: Waive First Reading and Introduce by title only, of Ordinance and set a second reading for August 5, EXECUTIVE SUMMARY: The purpose of this Ordinance is to authorize an amendment to the existing contract between the Board of Administration of the California Public Employees Retirement System ( PERS ) and the City of Pismo Beach ( City ) to provide Section (One- Year Final Compensation) for local police members. In the Memorandum of Understanding with the recognized bargaining unit of the Pismo Beach Police Officer s Association ( POA ), for Fiscal Years ending 06-09, it was agreed that the City would contract with PERS for implementation of the One-Year Final Compensation enhanced retirement benefit, with benefits to be effective December 22, The aforementioned MOU further states: The City will contract with PERS for implementation of the One-year Final Compensation enhanced retirement benefit to become effective as of December 22, 2008, at which time the City will pay one-half of the cost of the One-year Final Compensation benefit, and employees will pay one-half with an equal onetime reduction in base salary. Following the effective date of this Ordinance, the Human Resources Officer and the Finance Department will implement the reduction in base salary equal to one-half the change in Total Employer Rate, or 1.33% reduction, for all positions covered by this provision (i.e. local police members), effective December 22, FISCAL IMPACT: The Fiscal Impact of the proposed Amendment to the Contract with PERS, is identified in the Contract Amendment Cost Analysis provided by PERS (dated June 27, 2008) and are disclosed as follows: 1. Change in the Present Value of Benefits $ 349, Change in the Accrued Liability $ 209, Change in the Total Employer Rate 2.660% Page 1

2 The current MOU provided for the employees defined as the local police members to pay for, or contribute to the costs of these changes in PERS' benefits, as set forth below: effective as of December 22, 2008, at which time the City will pay one-half of the cost of the One-year Final Compensation benefit, and employees will pay one-half with an equal onetime reduction in base salary. OPTIONS: 1. Adopt the ordinance (required to meet the contract obligations previously agreed to in the POA MOU, for fiscal years ending 06-09). 2. Provide direction to staff. ATTACHMENTS: 1. Ordinance No. O with attached Exhibit - Amendment to the PERS Contract Prepared by: Deb Garcia, Human Resources Officer Meeting Date: July 15, 2008 City Manager Approval: Page 2

3 ORDINANCE NO. O AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF PISMO BEACH AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM. Section 1. The City Council of the City of Pismo Beach does ordain as follows: That an amendment to the contract between the City Council of the City of Pismo Beach and the Board of Administration, California Public Employees Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full; and Section 2. The Mayor of the City of Pismo Beach is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the City. Severability: In any section, subsection, sentence, clause or phrase of this Ordinance, is for any reason, held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Effective Date: This Ordinance shall be in full force and effect thirty (30) days after its passage, and before the expiration of fifteen (15) days after the passing of this Ordinance, it shall be posted with the names of the members voting for and against the same, in three public places within the City of Pismo Beach, to wit: 1. The United States Post Office in Shell Beach; 2. The United States Post Office in Pismo Beach; and 3. The City of Pismo Beach City Hall Bulletin Board (external access). Page 3

4 INTRODUCED at a regular meeting of the City Council held this 15 th day of July, 2008, on motion of Councilmember, seconded by Councilmember, and on the following roll call vote, to wit: AYES: NOES: ABSENT: ABSTAIN: APPROVED: ATTEST: Mary Ann Reiss Mayor Lori Grigsby, CMC City Clerk Page 4

5 SECOND READING at a regular meeting of the City Council held this 5 th day of August, 2008, on motion of Councilmember, seconded by Councilmember, and on the following roll call vote, to wit: AYES: NOES: ABSENT: ABSTAIN: APPROVED: ATTEST: Mary Ann Reiss Mayor Lori Grigsby, CMC City Clerk APPROVED AS TO FORM: David M. Fleishman, City Attorney Page 5

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