HomeMy WebLinkAboutAgenda Statement 1976/07/20 Item 09CITY OF CHULA VISTA ITEM N0. J
COUNCIL AGENDA STATEMENT 7/20/76
FOR MEETING OF:
ITEM TITLE: Resolution#8259:of Intention to Approve the Amendment to Contract
Between the Board of Administration of the Public Employee's
Retirement System and the City Council of the City of Chula Vista
SUBMITTED BY: Director of Finance (~~
ITEM EXPLANATION:
During 1976-77 wage negotiations, the City Council indicated strong opposition to
extending sick leave pay-off provisions, upon retirement or termination of employees.
While continual efforts on the part of employee groups will undoubtedly be made in
this area, and we still have MOU's where varying degrees of termination pay are
provided, the State Retirement System provides a method whereby cities can alleviate
some of the pressure for this type of fringe benefit.
I received information during the spring Finance Directors' meeting that a service
credit for all unused sick leave could be applied to an employee's retirement account
if the City elects to amend its contract with the Public Employees Retirement System
to provide such a benefit.
An evaluation report on this optional contract provision revealed that Chula vista
could provide this benefit at an actual dollar savings of $43,150 over our present
budgeted cost for 1976-77. Our Miscellaneous Employee rate would reduce from 9.46%
to 8.18q of payroll. This reduction in rate is due to changing our contract status
from "pooled" to "unpooled". In other words, Chula Vista would henceforth be rated
on our own experience, past and present, male and femal mix and age of employees.
In our case, the Chula Vista employees rate much better as an "unpooled" group than
being "pooled" with many other agencies making up the Retirement System.
Based on the foregoing, it is my recommendation that our contract be amended to
provide these benefits because of the savings to the City and the added benefits
to the employees.
EXHIBITS ATTACHED
Agreement Resolution XX Ordinance Plat Other
Environmental Document; Attached Submitted on
STAFF RECOMMENDATION:
Adopt resolution.
BOARD/ COMMISSION RECOMMENDATION:
A P P R O V E D
by the
City C~.:a:~il
COUNCIL ACTION
Of
-'hula Vista, G:~lifornia
Dated...........I...~~._'... rl ` .....................
Form A- 113 (Rev 5 - 75)