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HomeMy WebLinkAbout1994/08/09 Item 6 COUNCIL AGENDA STATEMENT ITEM ~ MEETING DATE AUQust 9. 1994 ITEM TITLE: ORDINANCE 2598 Rescinding Ordinance 2591 of the City of Chula Vista authorizing an Amendment to the Contract Between the City of Chula Vista and the Board of Administration of the California Public Employees' Retirement System. SUBMITTED BY: DIRECTOR OF PERSONNFf. , REVIEWED BY: CITY MANAGERJ{ ~~\ (4/5th Vote: Yes_ No_X..! This is a clean up item to correct a procedural error in the adoption of Ordinance 2591. On May 3, 1994, the City Council adopted Resolution 17467, declaring the City's intent to amend its contract with the Public Employees' Retirement System (PERSI to include the optional benefit known as Military Service Credit as Public Service for local miscellaneous and local safety members. The City had agreed to provide this benefit in the Memorandums of Understanding with all bargaining units. On that same date, an ordinance was placed on first reading to begin the amendment process, then the ordinance was placed on the May 10, 1994 agenda for adoption. PERS law requires a period of a least twenty days between the first reading and the adoption of an ordinance to amend the contract. The Personnel Department was notified of the deficiency by letter from PERS on July 26, 1994. In order to amend the contract, as was agreed with the employee associations, Ordinance 2591 must be rescinded and a new ordinance placed on first reading, then adopted at least twenty days later. RECOMMENDATION: Rescind Ordinance 2591 and place the attached ordinance on first reading. The second reading will be on the September 6, 1994 agenda. The amendment will take effect on October 7, 1994. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: Personnel staff is unaware of any pending retirements where an employee would be adversely affected by this delay in implementation. Personnel has notified the employee associations of the delay and its cause. FISCAL IMPACT: Was discussed in May 3, 1994 staff report. This benefit is intended to be funded entirely by the individual employees using it. There is a potential for a negligible increase or decrease in future unfunded liability due to actuarial variables. [A 113\RES.OR] ~-I MEMORANDUM DATE; July 27, 1994 TO: FROM: JOHN GOSS, CITY MANAGER CANDY BOSHELL, DIRECTOR OF PERSONNEL~ TERRI MCFARLAND, RISK MANAGER~ VIA; SUBJECT: PERS AMENDMENT - MILITARY SERVICE AS PUBLIC SERVICE The 1993-94 MOUs contained a provision that the City would adopt the above contract amendment prior to the end of last fiscal year. The item was addressed by the City Council at their meeting of May 3, 1994. Unfortunately, the City Clerk placed the adoption of the ordinance on the May 10 agenda rather than the May 23 agenda. PERS notified the city on July 26, 1994, that the ordinance was defective because less than 20 days had lapsed between the first reading and the adoption. The ordinance needs to be rescinded and a new ordinance adopted. The Risk Manager has consulted with the City Clerk and they have scheduled the first reading for August 9, 1994 and the adoption for September 6, 1994. The amendment would then be effective on October 7, 1994. We are unaware of any employee who has been adversely affected by this delay in amending the contract. The associations have been notified of the delay by letter. amendmem ID-~ MEMORANDUM DATE: July 27, 1994 TO: All Bargaining Units & Mid-Managers FROM: Candy Boshell, Director of Personnel (}{j- SUBJECT: PERS AMENDMENT FOR MILITARY SERVICE AS PUBLIC SERVICE. The Personnel Department presented this contract amendment to the City Council on May 3, 1994 with an intent to have the amendment take effect on June 24, 1994. Unfortunately, we were advised by PERs on July 26, 1994 that the Ordinance was unacceptable to PERS because of the timing of the first reading and the adoption of the ordinance. This error was due to a lack of communication between this department and the City Clerk's office. It is not believed that any bargaining unit member has been adversely affected by this error. The item has been placed on the Council agenda for August 9th and September 6, 1994. The new estimated effective date is October 7, 1994. [A 113\RES.ORI ic-3 ORDINANCE NO. 2598 AN ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND RESCINDING ORDINANCE NO. 2591 The city Council of the city of Chula Vista does ordain as follows: section 1. That an amendment to the contract between the City Council of the City of Chula vista of the City of Chula vista and the Board of Administration, California Public Employees' Retirement System, known as document number C094-066, a copy of which is on file in the office of the City Clerk, is hereby authorized and by such reference made a part hereof as though herein set out in full. section 2. The Mayor of the City of Chula vista is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. section 3. This ordinance shall take effect thirty days after the date of its adoption, and prior to the expiration of fifteen days from the passage thereof shall be published at least once in the Chula vista Star News, a newspaper of general circulation, published and circulated in the City of Chula vista and thenceforth and thereafter the same shall be in full force and effect. Presented by Approved as to form by Candy Boshell Director of Personnel Bruce M. Boogaard City Attorney t"lf