HomeMy WebLinkAboutcc min 1979/03/29 MINUTBS OF AN ADJOURNED REGULAR MEETING OF THE
CITY COUNCIL OF CHULA VISTA, CALIFORNIA
Held Thursday - 4:00 p.m. March 29, 1979
An adjourned regular meeting of the City Council of Chula Vista, California, was held on the
above date beginning at 4:00 p.m. in the Council Conference Room, City Hall, 276 Fourth Avenue.
ROLL CALL
Councilmen present: Mayor Hyde, Councilmen Cox, Egdahl, Gillow, Scott
Councilmen absent: None
Staff present: City Manager Cole, Assistant City Manager Asmus, Deputy City Manager
Robens, Police Chief Winters, Director of Policy Analysis & Program
Evaluation Wittenberg
Executive Session It was moved by Mayor Hyde, seconded by Councilman Scott and
unanimously carried that the Council recess to Executive
Session to discuss employee negotiations.
The meeting reconvened at 4:22 p.m.
1. CONSIDERATION OF ACTUARIAL City Manager Cole explained that in the Memoranda Of Under-
STUDY OF PUBLIC SAFETY standing with the Public Safety Employee Associations, the
RETIREMENT City agreed to make a study of the "2% at B0" plan. Because
of its technical nature, a'consUlting firm was hired to do
the study. Mr. Robert Drisko from the firm of Coates,
Herfurth and England, San F~a~lcis...co, wtio ~p~epared the study,
is here today to discuss his findings,
Robert Drisko After an introduction by Mr. Wittenberg, Mr. Drisko explained
Consultant in detail the actuarial evaluation of the retirement program
the present City ~ at SS program as well as the 2% at SO -
for both the Police and Fire Employees Associations as of
July 1, 1978. Mr. Drisko noted that the scope of the assign-
ment included a review of the fiscal "soundness" of the City':
Police and Fire retirement system as it exists under the
State Public Employees' Retirement System (PERS).
PERS funding method Mr. Drisko remarked that his firm generally agreed with and
used the PERS actuarial methods in its calculations, e.g.
"Entry Age Normal Cost" funding method with any supplemental
liability being amortized over the period of years to the
year 2000. The primary conclusion of the study is that local
five (S) year actuarial experience differs significantly
from the statewide average PERS uses. The number of local
safety employees withdrawing from the system (turnover) is
42% lower than expected. The experience of Duty Disability
Retirement is 83% higher than average. Both of these factors
will ultimately lead to higher City contribution rates.
Differential Costs The difference in costs between the City's present program
and the optional program comes to about 8-3/4% under salaries
of the Police and Fire members. The dollar costs will
increase each year in the future -- for both programs. Mr.
Drisko detailed the percentages and costs as they relate to
increased salaries, retirements and duty disabilities.
AB 3618 and AB 1901 Mr. Drisko then explained AB 3618 which permits employers to
reduce members' contributions hy an amount which does not
exceed one-half of the normal member contributions, and AB
1901 which permits the sharing of employer cost increases
by members if benefit levels are increased.
Held Thursday - 4:00 p.m. _ 2 - March 29, 1979
Estimated cost figures A projectbn of estimated annual contributions summary was
submitted to the Council during which Mr. Drisko answered
questions and detailed an explanation of the projected fig-
ures. He noted Paragraph "~' which assumes a salary increase
of 6% per year including a 2% growth factor which showed
that in 1978, the City's annual contribution rate is 12.94%
costing $399,000 (for both Police and Fire) for the 50% pay
at age 55. Going to the optional plan, 2%/year at age 50,
the rate would 5e 21.69% for the City with an annual con-
tribution of $669,000.
Tom Stille Officer Stille said he had no additional questions to ask
Police Officers Association other than those covered by the City Council; but requested
permission to make a presentation.
Mayor Hyde commented that the Conference today was to hear
just the consultant's presentation of the Study.
Don Byrum Mr. Byrum said he understood that once the City gets into
Firefighters Association the Actuarial, the current percentage rate will not change
unless there is an actual change in the average rate. He
added that he talked to Mr. Fitzgerald at the PERS office
and was informed that there has been only one raise in the
contribution rate of 3%, and that has been absorbed at 1%
a year.
Mr. Drisko remarked that this 3% was a large raise and it
was subsequently spread over a three-year period of tlme.
The rates are going to differ -- either higher or lower --
but the actual, contribution rate depends on (1) what has
happened alreaay in the City's system, and (2) what PERS
will anticipate will happen.
Percentage rates In answer to Mr. Byrum~s statement that the report's
1973-81 projected percentage rate remains the same from 1973 to
lg81, Mr. Drisko explained that the first year, the added
salary increases were reflected. His firm had nothing at
all to judge what was going to take place in each of the
contribution rates in the next four years; therefore, the
only thing sho~ in the chart is the change in the dollar
DiscuSsion Mr. Drisko further answered questions from Mr. Byrum, Chief
Winters and the City Council as to the various aspects of
the Study and the conclusions reached by the consultant.
(Councilman Cox left the meeting at 5:10 p.m.)
Mayor Hyde thanked Mr. Drisko for the presentation. (A copy
of the Actuarial Evaluation Study is on record at the City
Clerk's office).
~ 2. CITY MANAGER'S REPORT City Manager Cole stated that a flooding condition, caused
by the last rains, was "very close." At the last reading,
there was 1200 cubic feet per second going over the south
spill-way of the dam.
3. MAYOR'S REPORT None.
4. COUNCIL COMMENTS None.
5. ADJOURN~NT Mayor Hyde adjourned the meeting at 5:40 p.m. to the meeting
scheduled for Tuesday, April 3~ lg79 at 7:00 p.m.
CITY CL~K