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HomeMy WebLinkAboutAGENDA REPORT 2013 0717 CCSA REG ITEM 09E ITEM 9.E. s. ; OT%100 PARK.CAL'I Cc-. City Councii meeting of —17-2 0 /3 MOORPARK CITY COUNCILACTION:. AGENDA REPORT 7 TO: Honorable City Council FROM: Deborah S. Traffenstedt, Deputy City Manager r-D5r DATE: July 11, 2013 (CC Meeting of 7/17/13) SUBJECT: Consider Resolution Granting Another Designated Period for Two Years Additional Service Credit Retirement Incentive Pursuant to Government Code Section 20903 and Consistent with the City's Contract with California Public Employees' Retirement System (CaIPERS) BACKGROUND AND DISCUSSION At the City Council's regular meeting on June 19, 2013, the Council directed staff to schedule a resolution for the Council to adopt, approving and designating the time period for the two years of additional service credit retirement incentive for one Administrative Assistant position in the Public Works Department. The staff report for the June 19 meeting included the information on required public disclosure of the costs to the City for the proposed retirement incentive. That report is available for public review on the City's website. The window period for filing of a retirement application to be eligible for the two additional years of service credit is proposed to begin on October 1, 2013, and end on March 1, 2014(this time period is more than the minimum 90 days, but does not exceed the maximum 180 days permitted by CaIPERS). One retirement is anticipated during the window period for the retirement incentive. The additional service will be credited by CaIPERS after an eligible member has retired and is receiving a monthly retirement allowance. The added cost to the retirement fund for any eligible employee who retires during the specified period will be included in the contracting agency's annual valuation report for the fiscal year that begins two years after the end of the designated period. Employment separation for the one eligible employee is expected to occur by the end of calendar year 2013. CaIPERS provides a resolution for adoption, and certification documents, which are included as an attachment to this report. Following adoption action by the City Council, the resolution and certification documents will be completed and signed by the Mayor and City Clerk and forwarded to CaIPERS. FISCAL IMPACT The total estimated cost to the City for the two years additional service credit for the one identified position is approximately$33,812.13 . The cost of providing the additional service credit for one employee would be offset by the elimination of another position at a higher 29 Honorable City Council July 17, 2013, Regular Meeting Page 2 salary range and the overall reduction in staff costs through planned reorganization of responsibilities. STAFF RECOMMENDATION Adopt Resolution No. 2013- Attachment: Resolution to Grant Another Designated Period for Two Years Additional Service Credit (and required certification forms) 30 RESOLUTION NO. 2013- CITY COUNCIL OF THE CITY OF MOORPARK RESOLUTION TO GRANT ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT WHEREAS, the City Council of the City of Moorpark 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 October 1, 2013 through March 1, 2014 for eligible Administrative Assistant members in the Public Works Department. Adopted and approved this 17th day of Jam, 2013. CITY COUNCIL OF THE CITY OF MOORPARK BY Presiding Officer Janice S. Parvin, Mayor Attest: Clerk/Secretary Maureen Benson, City Clerk (Rev. 1/96) 31 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 1 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/change in retirement benefit(s) have been made public at a public meeting of the of the (governing body) (public agency) on which is at least two weeks prior to the adoption of the (date) Resolution / Ordinance. Adoption of the retirement benefit increase/change will not be placed on the consent calendar. Clerk/Secretary Title Date PERS-CON-12A(rev. 1/96) 32 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 Moorpark 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 Moorpark hereby elects to provide the benefits of Government Code Section 20903 to all eligible members who retire within the designated period, through CITY COUNCIL OF THE CITY OF MOORPARK BY Presiding Officer Attest: Clerk/Secretary Date 2yr certification-PA(Rev.4/04) 33 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 of the (governing body) (public agency) on (date) Clerk/Secretary Title PERS-CON-12(rev. 1/96) 34