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Home My WebLink About15-Human Resources ORIGINAL CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION From: LINN LIVINGSTON, DIRECTOR Subject: AUTHORIZATION FOR THE OF HUMAN RESOURCES CITY CLERK TO CERTIFY THE EMPLOYEE ELECTION, THE Dept: HUMAN RESOURCES CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION Date: SEPTEMBER 11, 2007 7507 AND THE CERTIFICATION OF GOVERNING BODY'S ACTION CONCERNING IMPLEMENTATION OF THE PERS 2.7% @ 55 RETIREMENT BENEFIT. M/CC Meeting Date: SEPT. 17, 2007 Synopsis of Previous Council Action: On August 20, 2007, the Mayor and Common Council waived further reading and lay over said Ordinance for final adoption on September 17, 2007. Recommended Motion: That the City Clerk be authorized to certify the Employee Election, the Certification of Compliance with Government Code Section 7507, and the Certification of Governing Body's Action. f, Signature Contact person: Linn Livingston Phone: 384-5161 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: $2,403,800 Annually Source: (Acct. No.) (Acct. Description) Finance: Council Notes: Agenda Item No. r CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report Subiect: Authorization for the City Clerk to certify the Employee Election, the Certification of Compliance with Government Code Section 7507, and the Certification of Governing Body's Action concerning implementation of the PERS 2.7% @ 55 retirement benefit. Background: During the negotiation process with the General, Middle-Management and Management/Confidential bargaining groups, the Mayor and Common Council agreed to amend the current retirement formula for employees in the non-safety bargaining groups, including Water Department employees, to a 2.7% @ 55 formula. The agreement requires the City to amend their PERS contract to provide Section 21354.5 (2.7% @ 55 full formula) for local miscellaneous members, effective 1/01/08. Section 21354.5 represents the combined current and prior service pensions for a local miscellaneous member. P The Mayor and Common Council approved the Resolution of Intention on August 20, 2007 and I the final reading and adoption of the Ordinance is scheduled for September 17, 2007. i One of the requirements to move the approval process forward was to hold a secret ballot vote. The process could only move forward with a 50% + 1 voter approval. Attached are the Certification of Employee Election, Certification of Compliance with Government Code Section 7507, and Certification of Governing Body's Action. The Certification of Employee Election certifies that the employees of the City of San Bernardino have expressed their approval or disapproval of said agency's intention to amend its contract. The Certification of Compliance with Government Code Section 7507 requires the City to disclose future annual costs and benefits as determined by the System Actuary for the increase in retirement benefit(s)prior to final adoption. The costs and benefits were disclosed at a public meeting held by the Mayor and Common Council on August 20, 2007. Lastly, the Certification of Governing Body's Action confirms that the Resolution of Intention was adopted by the Mayor and Common Council at the August 20, 2007 meeting. The following are the results of the election held August 22 through August 31, 2007: Total Number of Eligible Non-Safety City and Water 980 Employees Total Ballots Turned In 792 Total Yes Ballots 777 Total No Ballots 15 2 The City and Water Miscellaneous Employees approved the 2.7%Retirement Enhancement with a 98/% approval rate. Financial Impact: The on-going annual cost for the 2.7% @ 55 benefit is $2,403,800 using the 20-year amortization period. The City will be requesting a 30-year amortization from PERS to become effective during FY 2008-09. If successful, the change from 20 to 30 years could save the City approximately$500,000 per fiscal year. Recommendation: That the City Clerk be authorized to certify the Employee Election, the Certification of Compliance with Government Code Section 7507, and the Certification of Governing Body's Action. I 3 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 EMPLOYEE ELECTION I hereby certify that the following employees of the City of San Bernardino have expressed their approval or disapproval of said agency's intention to amend its contract to provide Section 21354.5 (2.7% @ 55 Full formula) on the basis described in the Resolution of Intention adopted by said agency's governing body on AUGUST 22-31 , 2007 , in such manner as to permit each employee to separately and secretly express his choice and that the outcome of such election was as follows: Number of Number of votes Number of votes employees approving said disapproving said eligible to vote participation participation Local Miscellaneous Members as defined in Govt. Code Section 20383 980 777 15 Clerk or Secretary Date (Amendment) PERS-CON-15(Rev.9103) 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 in retirement benefit(s) have been made public at a public meeting of the MAYOR AND COMMON COUNCIL ofthe (governing body) CITY OF SAN BERNARDINO (public agency) on AUGUST 20, 2007 which is at least two weeks prior to the adoption of the (date) Resolution / Ordinance. Clerk/Secretary Title Date PERS-CON-12A(rev. 1/96) 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 MAYOR AND COMMON COUNCIL ofthe (governing body) CITY OF SAN BERNARDINO (public agency) on SEPTEMBER 17, 2007 Ir (date) Clerk/Secretary Title PERS-CON-12 (rev. 1/96) 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 EMPLOYEE ELECTION 1 hereby certify that the following employees of the City of San Bernardino have expressed their approval or disapproval of said agency's intention to amend its contract to provide Section 21354.5 (2.7% @ 55 Full formula) on the basis described in the Resolution of Intention adopted by said agency's governing body on AUGUST 22-31 , 2007 , in such manner as to permit each employee to separately and secretly express his choice and that the outcome of such election was as follows: Number of Number of votes Number of votes employees approving said disapproving said eligible to vote participation participation Local Miscellaneous Members as defined in Govt. Code Section 20383 980 777 15 Cler or Secretary Date (Amendment) PERS-CON-15(Rev. 9/03) 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 in retirement benefit(s) have been made public at a public meeting of the MAYOR AND COMMON COUNCIL of the (governing body) CITY OF SAN BERNARDINO (public agency) on AUGUST 20, 2007 which is at least two weeks prior to the adoption of the (date) Resolution / Ordinance. Cle Secretary Title Date 3"-1,1007 PERS-CON-12A(rev. 1/96) I 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 MAYOR AND COMMON COUNCIL ofthe (governing body) CITY OF SAN BERNARDINO (public agency) on SEPTEMBER 17, 2007 (date) Cle ecretary -"t Title PERS-CON-12(rev. 1/96)