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Home My WebLink About14-Personnel CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Frotn: BARBARA DILLON Subject: AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF SAN BERNARDINO --CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTIONS 7507 AND 20903 w: PERSONNEL Date: APRIL 15, 1997 cg(Q)[?))f Synopsis of Previous Council Action: On April 7, 1997, the Mayor and Common Council approved the following motions: Motion 1: Adopt the resolution of the Mayor and Common Council of the City of San Bernardino expressing its intention to approve an amendment to the contract between the Board of Administration of the Public Employees' Retirement System and the City of San Bernardino. Motion 2: That said ordinance be laid over. Recommended Motion: . That the Mayor and Common Council certify compliance with Government Codes 7507 and 20903 and authorize the Mayor to execute said certifications. ..A/i.J./v" A /2 } \;;)~./ / f.YJ ) Signature Contact person: Barbara Dillon Phone: 384-5161 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: Source: (Acet. No.) (Acet. Description) Finance: Council Notes: -. i~, Agenda Item No. I ~ . CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT ~(Q)~'V BACKGROUND On April 7, 1997, the Mayor and Common Council adopted Resolution No. 97-99, expressing its intention to amend its contract with the Public Employees' Retirement System to provide Section 20903 (fwo (2) Years Additional Service Credit) for local miscellaneous members. On that same date, the Mayor and Common Council approved the first reading, and laid over for the second reading, an ordinance authorizing this amendment to the contract between the Board of Administration of the Public Employees' Retirement System and the City of San Bernardino. The City team has held three (3) meet and confer sessions with the miscellaneous bargaining units (General, Mid-Management and Management-Confidential) to consider comments and concerns. Additionally, the City has scheduled employee information sessions on the two (2) years additional service credit. ANALYSIS Government Code Section 7507 requires that the future annual cost of the proposed contract amendment be made public at a public meeting at least two weeks prior to the adoption of the [mal ordinance. The certification of compliance is Exhibit A. In addition, pursuant to the California Government Code, the Mayor and Common Council must certify compliance with Government Code Section 20903, (fwo Years Additional Service Credit) for local miscellaneous members who retire within the designated window period. The designated period must be subsequent to the effective date of the contract amendment and cannot be less than 90 or more than 180 days in length. Based on this requirement, and City budget constraints, an optimum time frame for this window period would be a 91-day period beginning on June 5, 1997, and continuing through September 3, 1997. The certification of compliance is Exhibit B. COSTING The Finance Department has prepared an analysis (Exhibit C) which shows the approximate service credit cost to the City of San Bernardino for each employee who has been designated eligible for the two .(2) years additional service credit. The cost of providing the two years additional service credit is calculated based on the employee's annual pay rate and a percentage cost factor. The percent cost factor is provided by PERS and is based on several factors, including the employee's age, sex, City's retirement formula, etc. The City will be notified by PERS of all actual costs and payment options available after the close of the window period and all eligible employees, who have selected this benefit, have received the additional service credit. Exhibit C summarizes the following by department and classification title: service credit cost; total budget for salary and benefits; and, estimated savings. Once an employee separates, any accrued leave will be paid off. At the end of the window period, the Service Credit Cost will be finalized by PERS, based on which employees actually elect the Golden Handshake option. PERS will charge $10 valuation 2 of 8 L/P/H7 ~y~ fee for each member who retires during the designated window period and receives the additional service credit. The City is negotiating the time frame and method for paying PERS the additional service credit costs. If all Exhibit C classifications in the General Fund category accepted the Golden Handshake, the estimated savings to the City is a minimum of $1.9 million, less payoff to employees for accrued leave. RECOMMENDATION Based on the foregoing, it is recommended that the Mayor and Common Council certify compliance with Government Code Sections 7507 and 20903 and authorize the Mayor to execute said certifications. Exhibit A: Certification of Compliance with Government Code Section 7507 Exhibit B: Certification of Compliance with government Code Section 20903 Exhibit C: Golden Handshake Costing 3 of 8 ..... CALIFORNIA PUBLIC EMPLOYEES' RET~REMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 EXHIBIT A 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 and/or the increase in retirement benefit(s) have been made public at a public meeting of the (governing body) of the (public agency) on (date) which is at least two weeks prior to the adoption of the Resolution/Ordinance. Clerk/Secretary Title Date 4 of 8 PERS-CON-12A (rev. 1/96) , CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 EXHIBIT B 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 San Bernardino hereby certifies that: I. 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. Payment shall be made of the amount equal to the actuarial equivalent of the difference between the allowance the member receives after receipt of such service credit and the amount the member would have received without such service credit with respect to all eligible employees who retire during the specified 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 San Bernardino 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 SAN BERNARDINO BY Presiding Officer Attest: Clerk/Secretary Date 5 of 8 C0610 (Rev. 1/96) BENEFIT COST FOR cg@~W EXHIBIT C GOLDEN HANDSHAKE SERVICE CREDIT TOTAL ESTIMATED DEPARTMENT TITLE COST BUDGET SAVINGS GENERAL FUND City Council Exec Assist to Council 31,464 78.154 46.690 City Clerk Account Clerk III 15.344 36,930 21.586 Account Clerk III 11.852 34,008 22.156 Deputy City Clerk I 11.534 44,841 33.307 Civil Service Chief Examiner 39.043 99.336 60.293 Code Compliance Account Clerk I 9,284 27.701 18,417 Facilities Mgmt Senior Custodian 16,043 38.210 22,167 Parking Control Ckr 14.739 33,660 18,921 Parking Control Ckr 8.787 35,626 26.839 Parking Control Ckr 13.889 35,215 21.326 Parking Control Ckr 13.840 35,115 21,275 Finance Typist Clm II 9,284 29,236 19,952 Account Clerk II 13.010 31.516 18.506 Assistant Buyer 13,160 41.086 27.926 Cashier II 12,374 30.168 17.794 Admin Oper Super 21.316 50.790 29,474 Library Admin Oper Super II 19.518 57.421 37.903 Admin Oper Super II 15.709 56,482 . 42,773 Typist Clerk III 10.258 29,981 19.723 Junior Librarian 15.653 37,311 21.658 Junior Librarian 10.542 39,198 28.656 Junior Librarian 15.653 37,311 21,658 Librarian 13,427 42.446 29,019 Senior Librarian 15.592 44.923 29,331 Lib Comp Lab Coord 18.640 44.207 25.567 Library Clerk 7,853 30.527 22.674 Library Clerk 9,756 29.563 19.807 Library Clerk 9,756 28.989 19.233 Park & Recreation Typist Clerk III 13,322 32.120 18.798 Typist Clerk II 11,096 27.352 16.256 Typist Clerk II 7.473 28.112 20.639 PMWI 9.856 30.281 20,425 PMWIII 11,447 36.330 24.883 PMWIII 11,447 36.330 24.883 PMWIII 14,382 29.359 14.976 PMWIII 11.447 36.330 24.883 Personnel Personnel Clerk II 8,676 31.698 23.022 Police Police Records Clerk I 8.257 29.524 21.267 Ilf Police Records Clerk I 8.257 30.365 22.108 Police Records Clerk I 12.260 30.002 17.742 'IP-/,7 Police Records Clerk I 8.257 30.362 22.105 Police Records Clerk II 9.120 32.838 23.718 Steno 13.672 31.282 17.610 Steno 10.780 31.410 20.630 Secretary 11.331 34,431 23.100 6 of 8 /2lf. -#2- SERVICE CREDIT TOTAL ESTIMATED DEPARTMENT COST BUDGET SAVINGS Police Senior Secretary 10,276 36,752 26,476 Police Fleet Exp 8,359 33,688 25,329 CSR 9,354 35,215 25,861 CSR 11,054 35,215 24,161 CSR 11,054 35,215 24,161 CSR 9,354 34,069 24,715 CSR 11,621 35,626 24,005 CSR 11,867 36,298 24,431 CSR 10,078 37,644 27,566 CSR 10,078 38,077 27,999 CSR 10,078 36,550 26,472 CSR 9,467 38,087 28,620 CSR 11,911 37,639 25,728 Public WorkslEng Construction Inspect 17,372 44,553 27,181 Director of Public Works 38,984 116,496 77,512 Senior Secretary 15,881 36,110 20,229 Survey Party Chief 14,393 55,374 40,981 Lead Maint Worker 13,628 42,518 28,890 Real Property Special 15,213 43,911 28,698 Landscape Inspect I 13,095 40,997 27,902 Streets Lead Maint Worker 13,628 42,518 28,890 Lead Maint Worker 17,123 42,518 25,395 Maint Wkr 11 11,447 35,988 24,541 Maint Wkr 11 9,099 34,668 25,569 Maint Wkr 11 11,447 36,330 24,883 Maint Wkr 11 9,099 36,330 27,231 Maint Wkr 11 9,099 36,330 27,231 Maint Wkr I 13,012 33,236 20,224 Maint Wkr I 13,012 29,385 16,373 Maint Super 18,018 55,122 37,104 Risk Mgmt Wkrs Comp Specialist 12,211 34,907 22,696 GENERALFI.lNDTOTAI;S NON-GENERAL FUND Animal Control Animal Shelt Op Mgr 11,730 42,010 30,280 Sr. Animal License Ckr 8,257 31,899 23,642 Cemetery Maint Wkr III 9,099 36,330 27,231 Refuse Sanitation Route Super 17,400 53,377 35,977 Sanitation Route Super 17,400 53,377 35,977 Sanitation Route Mgr 22,297 58,812 36,515 Collector 13,889 35,189 21,300 Refuse Oper III 10,051 39,729 29,678 Refuse Oper III 10,051 39,729 29,678 Refuse Oper III 15,888 39,729 23,841 Refuse Oper III 8,791 28,366 19,575 Refuse Oper 111 10,051 39,729 29,678 Refuse Oper 111 12,645 38,258 25,613 Refuse Oper 11 11,447 33,319 21,872 Refuse Oper 11 14,125 35,748 21,623 Refuse Oper 11 14,382 34,411 20,029 Refuse Oper 11 11,447 36,330 24,883 7 of 8 . . SERVICE CREDIT TOTAL ESTIMATED DEPARTMENT COST BUDGET SAVINGS Refuse Oper II 9,099 36,330 27,231 Refuse Oper II 11,447 36,330 24,883 Refuse Oper I 10,357 33,236 22,879 Refuse Oper I 13,012 33,621 20,609 Refuse Oper I 8,232 33,236 25,004 Refuse Oper I 8,232 33,236 25,004 Refuse Oper I 8,232 33,236 25,004 PS Project Coord 18,475 46,119 27,644 Account Clerk II 8,257 30,365 22,108 Account Clerk II 8,257 31,536 23,279 Street Sweeping Motor Sweeper Oper 15,117 36,140 21,023 Motor Sweeper Oper 12,032 37,990 25,958 Motor Sweeper Oper 15,117 36,455 21,338 Maint Super 16,310 48,411 32,101 Garage Lead Storekeeper 13,889 33,570 19,681 Ld Equip Mech 18,640 45,944 27,304 Ld Equip Mech 18,640 45,944 27,304 Equip Mech II 14,110 43,885 29,775 Equip Mech II 11,216 43,885 32,669 Equip Mach II 11,216 43,885 32,669 Equip Mach I 15,264 38,277 23,013 NON-GE~~"lm~NElfT(l:TALS GRAND TOTALS 1,482,816 4,445,416 2,962,601 8 of 8