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Home My WebLink About2010/05/04 Item 5 CITY COUNCIL AGENDA STATEMENT ,~\(; .:$ '2::. CITY OF ~ (HULA VISTA MAY 4, 2010, Item ';j ITEM TITLE: RESOLUTION OF THE CJTY COUNCIL TO GRANT ANOTHER DESlGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT FOR EMPLOYEES IN SPECIFIED JOB CLASSIFICATIONS WHO ARE MEMBERS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) LOCAL MISCELLANEOUS AND LOCAL PUBLIC SAFETY-FIRE GROUPS PURSUANT TO GOVERNMENT CODE 920903 SUBMITTED BY: REVIEWED BY: nffiECTOR OF H1fRESOURCES t!O'J'&,- , , CITY MANAGER ASSIST ANT CITY ANAGER "? 7 4/STHS VOTE: VES D NO 0 SUMMARY In an effort to significantly reduce Fiscal Years 2011 and 2012 General Fund expenditures and to avoid impending mandatory transfers, layoffs and demotions it is the City's intent to grant another designated period for the CalPERS Two Years Additional Service Credit benefit option as an incentive to retirement of specified classifications (Appendix A) covered under the City's contracts with CalPERS for Local Miscellaneous and Local Public Safety Fire employees. This incentive will be available to eligible employees who retire between May 5,2010 and August 2, 2010. ENVIRONMENTAL REVIEW Not applicable. RECOMiYIENDA TTON Council adopt the Resolution. BOARDS/COMi\HSSION RECOMMENDATION 5-1 MAY 4,2010, Item2 Page2of6 Not applicable. DISCUSSION On October 16, 2007, the City amended both the Miscellaneous and Safety contracts between the Board of Administration of the California Public Employee's Retirement Board (CaIPERS) and the City of Chula Vista to provide the optional Two Years Additional Service Credit benefit (G.c. 920903). Since that time the City has offered the benefit on four occasions as part of an early retirement incentive to qualified employees due to impending layoffs, mandatory transfers and demotions. Below is a summary of the retirement incentive packages that have been offered: All . ivledical incentive through Miscellaneous 12/3 lI09 if retiring between 1 10/16/2007 and Police and ] lI08/07- 11/08/07 -12/3 1/07 62 Fire Safety 02/05108 . Medical incentive tlrrough 12/31/08 if retiring 01/01/08- members 02/05/08 All Miscellaneous . Medical incentive through 2 04/22/2008 members and 05105/08- 12/31/09 if retiring 05/05/08- 18 Police and Fire 08/05/08 06/05/08 only managers . Medical incentive through All Miscellaneous 12/3l1I0 if retiring 3 12116/2008 and Police and 12/3 lI08- OliO 1/09-03/27/09 33 06/26/09 . Medical incentive through Fire Safety 12/31/09 if retiring members 03/28/09-06/26/09 . Medical incentive for two All calendar years if retiring Miscellaneous 07/15/09- Under the Two Additional 4 07/14/09 Y cars Service Credit 10 and Police 10/12/09 . Medical incentive for four Safety members calendar years if normal retirement TOTAL 123 Due to the continuing budgetary challenges for Fiscal Years 2011 and 2012 and the likelihood there will layoffs, mandatory transfers and demotions it is recommended that the City again offer the Two Years Additional Service Credit option, this time to its Miscellaneous and Public Safety-Fire members. It is fmiher recommended that the 5-2 MAY 4, 2010, !tem~ Page 3 of6 designated window for these employees to take advantage of this oppOltunity be May 5, 2010 to August 2, 2010. The City must ccrti fy that any vacancies created by individuals taking the service credits pursuant to a.c. 020903, or at least one vacancy in any position in any dcpartment or other organizational unit, remain permanently unfilled, thereby resulting in an overall reduction in the workforce of the uepmtment or organizational unit. Window Period Tn order for an employee to qualify for the additional service credit they must retire within the period designated by the governing body. The designateu period cannot be less than 90 or more than 180 days in length. In order to achieve the savings, in a timely manner, needed to avoid layoffs, transfers and demotions, staff is recommending the shorter ninety-day (90) winuow period from May 5, 2010 to August 2, 2010. Eligibilitv For an employee (CaIPERS member) to be eligible to receive the additional two years credit the following requirements must be met: . The member's classification must be one of those listed in Appendix A of this report; . The member must have at least five years of CalPERS service credit; . The member must be employed for at least one day during the designateu period; . The member must retire 'during the designated period, however, the member's retirement date may not be the first day of the designated period; . The member cannot receive credit under this section if the member receives any unemployment insurance payments during the designated period; . If the retired member subsequently reenters membership, the additional service credit is forfeited. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations S18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There is no anticipated fiscal impact in the current fiscal year. ONGOING FISCAL IMPACT The Fiscal Year 20 I 0-11 base buuget assumes a vacancy factor of 2%, which represents approximately 15 additional vacancies above the current vacant positions. Realizing that 5-3 MAY 4, 2010, Ttem~ Page 4 ofG attammg these additional vacancies will be challenging due to the significant staffing reuuctions that have occurred over the past two years, the Early Retirement Program is proposeu as an option to achieve these vacancies early in the fiscal year and avoid additional reductions at this tllne. The longer it takes to achieve these vacancies the higher the posItion counts have to be in order to meet the budgeted salary savings. On a weekly basis the City would need to realize approximately $35,000 in Fiscal Year 20 I O- Il in order to meet the budgeted salary savings of $1.8 million. During the course of the year, staff will continue to monitor salary savings and identify additional expenditure savings ifthere are not sufficient salary savings. The "additional employer contributions" that are disclosed here are an estimate of the present value of aduitional employer contributions which will be required in the future for pmviding the two years service credit. The amount is calculated based on the eligible members' annual reportable compensation, a cost factor established by CalPERS actuaries and the fact that the City contracts for the Post-Retirement SurvIvor Allowance (Survivor Continuance). The "additional employer contributions" will be paid by the City through an increase in the employer contribution rate, starting two fiscal years after the end of the designated period. The increase in the employer contribution ratc will be amortized over twenty (20) years, unless it is prepaid. The calculations below satisfy the disclosure requirements of Govel11ment Code Ii! 7507. The actual present value of adchtional contributions may differ from the estimate for two reasons: I) Some of the members who are eligible to retire and receive the two years service credit (anu who are included in the estimate) may choose not to retire. Staff believes the cost will be significantly less as they are estimating that only about 5% of the eligible employees (9 people) will actually retire. 2) There may be an additional cost to the City (called an experience loss) if the total number of members retiring in the fiscal year exceeds the number predicted by the actuarial assumptions. An experience loss occurs very often when the two years service credit is offereu because some members retire who would have otherwise waited until later years. 5-4 MAY 4,2010, Item ~ Page 5 of6 Estimated Cost of Additional Employer Contrihutions (Based on I OO'/'o participation) Local Miscellaneous Additional Employer Contribution: Annual Cost: Rate Increase in Employer Contribution: $7,198,338 (over twenty years) $ 359,917 1.31 '% Local Public Safety-Fire Additional Employer Contribution: Annual Cost: Rate Increase in Employer Contribution: $282,329 (over twenty years) $ 14,116 0.20'X, There are no costs to the employee/member with this option. Estimated Annual Salary Sayings If 5% of 171 eligible employees (or 9 people) retire under this program, the estimated annual base salary savings would be approximately 5558,836 as follows: Local Miscellaneous Local Public Safety Fire Total Estimated Annual Salary Savings 5540,398 $ 18,438 5558,836* * This amount does nul include annual benefit costs A final list of employees who apply for retirement pursuant to the offer will be presented to CalPERS after the expiration of the application window. The actual cost/savings can be more accurately estimated at that time. Estimated Net Annual Savings CalPERS requires publishing potential costs based on 100% participation of all eligible members. However, based on experience and preliminary survey information, we believe 5% participation is more realistic. Based on this, the estimated net annual savings would be 5707,784 as follows: Local Miscellaneous Salary Savings Benefit Cost Savings Annual Cost Net Annual Savings $540,398 $162,119 (517.996) $684,521 Local Public 5afety Fire Salary Savings Benefit Cost Savings Annual Cost Net Annual Savings $18,438 5 5,531 (5 706) 523,263 5-5 MA Y 4, 20 I 0, Ite1112 Page 6 of 6 ATTACHMENTS Appendix A -Classifications Eligible to Participate For signature: I. Resolution of the City of Chula Vista to Grant Another Designated Period [or Two Years Additional Service Credit 2. Required CalPERS Resolution to Grant Another Designated Period for Two Years Additional Service Credit 3. Ce,-tifieation ofGoveming Body's Action (PERS-CON-12) 4. Certification ofCol11pliance with Goveml11ent Code Section 7507 (PERS CON- 12A) 5. Certification ofCol11pliance with Govemmcnt Code Section 20903 5-6 APPENDIX A -- c.".;. . - - . . - =1ID- .... ,_ ,'. ~,;) , ~~~/~ . '.. - e-'-.' . ":'''''!,>", ~,~ """. - '".",-,<=,. "" ., . . ., - .. _' . I '. . '. ~, .: I I Classification Classfication 1 ADMIN. TECHNICIAN 48 POLICE RECORDS SPECIALIST 2 ADMINISTRATIVE SECRETARY 49 POLICE RECORDS TRANSCRIPTIONIST 3 ANIMAL CARE ASSISTANT 50 POLICE SUPPORT SERVICES MGR 4 ASSISTANT SURVEYOR II 51 POLICE TECHNOLOGY SPECIALIST 5 ASSOC ENGINEER 52 PRINCIPAL PLANNER 6 ASSOCIATE PLANNER 53 PRINCIPAL RECREATION MANAGER 7 BLDG PROJECT MANAGER 54 PUB WORKS SPECIALIST 8 CODE ENF OFFCR II 55 PUBLIC INFORMATION OFFICER-PO 9 CODE ENFORCEMENT MANAGER 56 PUBLIC SAFETY ANAL YST 10 COMMUNITY SERVICE OFFICER 57 PUBLIC WORKS INSP II 11 CONSTRUCTION & REPAIR MGR 58 PUBLIC WORKS MANAGER 12 CRIME LABORATORY MANAGER 59 PUBLIC WORKS SUPERVISOR 13 CUSTODIAL SUPERVISOR 60 PUMP MAINT TECHNICIAN 14 CUSTODIAN 61 PUMP MAINTENANCE SUPERVISOR 15 DEPUTY FIRE CHIEF 62 REAL PROPERTY MANAGER 16 DEV PLANNING MGR 63 RECREATION SUPERVISOR II 17 DEVELOPMENT SVCS TECH II 64 RECREATION SUPERVISOR III 18 ECONOMIC DEVE'LOPMENT OFFICER .65 RECYCLING SPECIALIST II 19 ELECTRICIAN "66 SECRETARY 20 ELECTRONICS TECH SUPERVISOR '67 SIGNAL SYSTEMS ENGINEER /I 21 ELECTRONICS TECHNICIAN 68 SR ADMINISTRATIVE SECRETARY 22 ENGINEERING TECH II 69 SR CIVIL ENGINEER 23 ENVIRON SVCS PROG MGR 70 SR CODE ENFORCEMENT OFFICER 24 EQUIPMENT MECHANIC 71 SR ENGINEERING TECHNICIAN 25 EQUIPMENT OPERATOR 72 SR EOUIPMENT MECHANIC 26 EXECUTIVE SECRETARY 73 SR FIRE INSPECTOR 27 FACILITY & SUPPLY SPECIALIST 74 SR FISCAL OFFICE SPECIALIST .28 FIRE APPARATUS MECH 75 SR GARDENER 29 FLEET MANAGER -76 SR HVAC TECHNICIAN 30 GARDENER II 77 SR LANDSCAPE INSPECTOR 31 LAND SURVEYOR 78 SR MAINTENANCE WORKER .32 LANDSCAPE ARCHITECT 79 SR OFFICE SPECIALIST 33 LANDSCAPE PLANNER II 80 SR PARK RANGER 34 LEAD CUSTODIAN 81 SR PLANNER 35 LEGAL ASSISTANT 82 SR PLANNING TECHNICIAN 36 LOCKSMITH 83 SR POLICE DATA SPECIALIST 37 MAINTENANCE WORKER II 84 SR PROJECT COORDINATOR 38 OFFICE SPECIALIST 85 SR PUB WORKS SPECIALIST 39 OI'FICE SPECIALIST (MYR/@WILL) 86 SR PUBLIC WORKS INSP 40 OPEN SPACE INSPECTOR .87 SR SECRETARY 41 OPEN SPACE MANAGER 88 SURVEY TECHNICIAN II 42 PARK RANGER 89 TRAFFIC DEVICES TECH '43 PARKS MANAGER 90 TRAFFIC DEVICES TECH SUPV 44 PARKS SUPERVISOR 91 TRANSIT MANAGER 45 PLANS EXAMINER 9;> TRANSPORTATION ENGINEER W/CERT 46 POLICE COMM RELATIONS SPEC 93 TREE TRIMMER 47 POLICE DATA SPECIALIST 94 WASTEWATER COLLECTIONS MANAGER Printed: 04/29/2010.5:19 PM 5-7 CITY COUNCIL OF THE CITY OF CHULA VISTA RESOLUTION TO GRANT ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT WHEREAS, the City Council of the City of Chula Vista is a contracting Public Agency of the Public Employees' Retirement System; and WHEREAS, said Public Agency desires to provide another designated period for Two Years Additional Service Credit, Section 20903, based on the contract amendment included in said contract which provided for Section 20903, Two Years Additional Service Credit, for eligible members; NOW THEREFORE, BE IT RESOLVED, that said City Council does seek to add another designated period, and does'hereby authorize this Resolution, indicating a desire to add a designated period from Mav 5, 2010 through Auqust 2, 2010 for eligible employees of the local miscellaneous and local public safety fire qroups in specified iob classifications listed on paqe 2 of this Resolution. who are members of the California Public Employees' Retirement System (CaIPERS). Adopted and approved this 4th day of May, 2010. CITY COUNCIL OF THE CITY OF CHULA VISTA BY Presiding Officer Cheryl Cox Mayor Attest: Clerk/Secretary Donna Norris, CMC (Rev. 1/96) 5-8 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (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 (governing body) of the City of Chula Vista (public agency) on Mav 4, 2010 (date) Donna Norris, CMC Clerk/Secretary City Clerk Title PERS-CON-12 (rev.1/96) 5-9 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (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 for the increase in retirement benefit(s) have been made public at a public meeting of the City Council of the (governing body) City of Chula Vista (public agency) on April 20, 2010 (date) which is at least two weeks prior to the adoption of the Resolution / Ordinance. Donna Norris, CMC Clerk/Secretary City Clerk Title Date May 4,2010 PERS-CON-12A (rev. 1/96) 5-10 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Services Division Contract Maintenance Unit P.O. Box 942709 Sacramento, CA 94229-2709 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 20903 In accordance with Government Code Section 20903 and the contract between the Public Employees' Retirement System, the City Council of the City of Chula Vista hereby certifies that: 1. Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. 2. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. 3. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least 1 percent of the job classification, department or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services. 4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit. THEREFORE, the City Council of the City of Chula Vista hereby elects to provide the benefits of Government Section Code 20903 to all eligible members who retire within the designated period, May 5.2010 through Auqust 2.2010 CITY COUNCIL OF THE CITY OF CHULA VISTA BY Presiding Officer Cheryl Cox, Mayor Attest: Clerk/Secretary Donna Norris, CMC, City Clerk May 4.2010 Date 5-11 2yr certification-PA (Rev. 4/04) RESOLUTION NO. 2010 - RESOLUTION OF THE CITY COUNCIL TO GRAl'lT ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT FOR EMPLOYEES IN SPECIFIED JOB CLASSIFICATIONS WHO ARE MEMBERS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREJ'vIENT SYSTEM (CALPERS) LOCAL MISCELLANEOUS AND LOCAL PUBUC SAFETY-Fl.RE GROUPS PURSUANT TO GOVERNMENT CODE 920903 WHEREAS, the City Council OF THE City of Chula Vista is a contracting Public Agency of the Public Employees' Retirement System (PERS); and WHEREAS, said Public Agency desires to provide another designated period for Two Years Additional Service Credit, pursuant to California Government Code section 20903, based on the contract amendment included in the contract, which provided for section 20903, in Two Years Additional Service Credit for eligible members in specified job classifications. . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of . Chula Vista does hereby grant another designated period for Two Years Additional Service Credit pursuant to Government Code section 20903 from May 5, 2010 through August 2,2010 for employees in specified job classifications as described in Exhibit A. Proposed by Approved as to form by Kelley Bacon Director of Human Resources k~>-k Bart C. Miesfeld City Attorney 5-12 APPENDIX A - . I . . ':::l : I. ,- - ,;~...:::r .-: - =-~ ,"'-- "" ,. ".:-' I .. I." ~ I I "., I .. ."\ I '. Classification. I Classfication t ADMIN. TECHNICIAN 46 POLICE RECORDS SPECIALIST 2 ADIvIlNISTRA ,IVE.SECRE, ARY 49 POLICE RECORDS TRANSCRIPTIONIST 3 ANIMAL CARE ASSISTANT 50 POLICE SUPPOR, SERVICES MGR ,4 ASSISTANT SURVEYOR II .5,1 POLICE TECHNOLOGY SPECIALIST .5 ASSOC ENGINEER :52 PRINCIPAL PLANNER .6 ASSOCIATE PLANNER 53 PRINCIPAL RECREATION MANAGER :'1 BLDG PROJECT MANAGER , .54 PUB WORKS SPECIALlS, '8 CODE ENF OFFCR II :55 PUBLIC INFORMATION OFFICER-PD '.9 CODE ENFORCEMENT MANAGER 56 PUBLIC SAFETY ANALYST 10 COMMUNITY SERVICE OFFICER 57 PUBLIC WORKS INSP II J1 CONSTP,UCTION & REPAIR MGR :58 PUBLIC WORKS MANAGER '12 CRIME LABORATORY MANAGER 59 PUBLIC WORKS SUPERVISOR 'l3 CUSTODIAL SUPERVISOR 60 PUMP MAINT TECHNICIAN 14 CUSTODIAN 61 PUMP MAINTENANCE SUPERVISOR .15 DEPUTY FIRE CHIEF 62 REAL PROPERTY MANAGER .16 DEV PLANNING IvIGR '63, RECREATION SUPERVISOR II 17 DEVELOPMENT SVCS TECH II : .64 RECREATION SUPERVISOR III 18 ECONOMIC DEVELOPMENT OFFICER .65 RECYCLING SPECIALIST II .19 ELECTRICIAN 66 SECRETARY 20 ELECTRONICS TECH SUPERVISOR .67, SIGNAL SYS, EMS ENGINEER II 21 ELECTRONICS TECHNICIAN ,68 SR ADMINISTRATIVE SECRETARY 22 ENGINEERING TECH II :69 SR CIVIL ENGINEER 23 ENVIRON SVCS PROG MGR 70 SR CODE ENFORCEMENT OFFICER 24 EQUIPMENT MECHANIC .',7..1- SR ENGINEERING TECHNICIAN 25 EQUIPMENT OPERATOR '~72 SR EQUIPMENT MECHANIC 26 EXECUTIVE SECRETARY 73 SR FIRE INSPECTOR 27 FACILITY & SUPPLY SPECIALIST ,,;:4 SR FISCAL OFFICE SPECIALIST . 26 FIRE APPARATUS MECH .75 SR GARDENER 29 FLEET MANAGER ,:76 SR HVAC TECHNICIAN 30 GARDENER II 77 SR LANDSCAPE INSPECTOR 31' LAND SURVEYOR '.78 SR MAINTENANCE WORKER 32 LANDSCAPE ARCHITECT 79 SR OFFICE SPECIALIST 33 LANDSCAPE PLANNER II 80 SR PARK RANGER 34 LEAD CUSTODIAN .:61 SR PLANNER -35 LEGAL ASSISTANT ,:82 SR PLANNING TECHNICIAN 36 LOCKSMITH .63 SR POLICE DATA SPECIALIST 37, MAINTFNANCE WORKER II 84 SR PROJECT COORDINATOR 38 OFFICE SPECIALIST :85 SR PUB WORKS SPECIALIST 39 OFFICE SPECIALIST (MYR/@WILLj :.:S6 SR PUBLIC WORKS INSP 40 OPEN SPACE INSPECTOR ,';81 SR SECRET~RY ,41 OPEN SPACE MANAGER '88 SURVEY TECHNICIAN II 42 PARK RANGER .. ~89 TRAFFIC DEVICES TECH '43 PARKS MANAGER .90 TRAFFIC DEVICES TECH SUPV 44 PARKS SUPERVISOR '91 TRANSIT MANAGER :45 PLANS EXAMINER .:::92 TRANSPOR,ATION ENGINEER W/CERT ,46 POLICE COMM RELATIONS SPEC .',93 TREE TRIMMER 47 POLICE DATA SPECIALIST ' 94 WASTEWATER COLLECTIONS MANAGER 5-'3 Printed: 04/20/2010,1:57 PM