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CITY ,oF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
.
BARBARA DILLON
Subject:
RESOLUTION OF THE MAYOR & COMMON COUNCll..
. . . EXPRESSING ITS INTENTION TO APPROVE
AN AMENDMENT TO CONTRACT BE1WEEN THE
BOARD OF ADMINISTRATION OF THE PUBUC
EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
OF SAN BERNARDINO
Date:
PERSONNEL
MARCH 18, 1997
r on/GINAL
AN ORDINANCE. . . AUTHORIZING AN AMEND-
MENT TO THE CONTRACT BE1WEEN THE BOARD OF
ADMINISTRATION OF THE PUBUC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY OF
SAN BERNARDINO
Synopsis of Previous Council Action:
On March 17, 1997, the Mayor and Common Council approved a motion to receive and file the
mid-year budget report and to instruct the Director of Personnel to meet with the
"miscellaneous" employee bargaining units to discuss the following: Two (2) years additional
service credit to PERS members who retire during a designated period if a mandatory transfer,
layoff or demotion is imminent and specific PERS requirements are met. (This benefit is also
know as the "golden handshake.")
Recommended Motion:
.
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.
lII1l1
Motion 2: That said ordinance be laid over.
.AA"A- -4/? ),~ ///1J? }
Signature
Contact person:
Raman! Dillon
Phone:
384-5161
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
. Notes:
Previously
Source: (Acct. No.)
(Acct. Description)
Finance:
1/.27~/ ., ~;'7
5,/~/'?~ ::Ii ~
9p77; .,~
[l"t('atMce a /~
1<o?S 97-71
Previously
Previously
Ordinance MC-7CJi
Agenda Item No..
#on'
~-0'7
CITY ,OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
.
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STAFF REPORT
BACKGROUND
On March 17, 1997, the Mayor and Common Council approved a motion to receive and file the
mid-year budget report and to instruct the Director of Personnel to meet with the
"miscellaneous" employee bargaining units to discuss the following: Two (2) years additional
service credit to PERS members who retire during a designated period if a mandatory transfer,
layoff or demotion is imminent and specific PERS requirements are met. (This benefit is also
known as the "golden handshake.")
Pursuant to PERS regulations, the Mayor and Common Council must adopt a Resolution of
Intention and an ordinance approving an amendment to the PERS contract.
ANALYSIS
The attached Resolution of Intention (Exhibit A) states the intention of the Mayor and Common
Council of the City of San Bernardino to amend its contract with the Public Employees'
Retirement System to provide Section 20903 (Two (2) Years Additional Service Credit) for local
miscellaneous members. Exhibit B is the ordinance, which is presented for a first reading.
COSTING
Although Section 20903 does not increase the employer contribution rate, there is a dollar cost
for this benefit. After the expiration of the designated period, the agency will need to submit
to PERS a list of members eligible to receive the additional service credit who retired during the
designated period. The designated period must be subsequent to the effective date of the
contract amendment and cannot be less than 90 nor more than 180 days in length. The agency
will be notified of the actual costs and payment options available after all eligible members have
received the additional service credit.
RECOMMF.NDATION
Based on the foregoing, it is recommended that the Mayor and Common Council adopt:
*
Resolution of the Mayor and Common Council of the City of San Bernardino expressing
its intention to approve an amendment to contract between the Board of Administration
of the Public Employees' Retirement System and the City of San Bernardino.
and,
* That said ordinance be laid over.
.
.
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EXHIBIT A
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
The Board pf Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective March 1, 1945, and witnessed February 6, 1945, and as
amended effective November 1, 1949, September I, 1951, January I, 1952, July I, 1954,
February 1, 1965, February 24, 1969, March 8,1971, October I, 1973, October 28, 1974, March
17, 1975, April 28, 1975, November 10, 1975, July 6, 1977, January 7, 1985, May 27, 1985,
September 16,1988, August 27, 1990 and August 1, 1996:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective
August 1, 1996, and hereby replaced by the following paragraphs numbered 1 through 13
inclusive:
1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 60 for local
miscellaneous members and age 50 for local safety members.
. 2. Public Agency shall participate in the Public Employees' Retirement System from
and after March 1, 1945 making its employees as hereinafter provided, members
of said System subject to all provisions of the Public Employees' Retirement Law
except such as apply only on election of a contracting agency and are not provided
for herein and to all amendments to said Law hereafter enacted except those,
which by express provisions thereof, apply only on the election of a contracting
agency.
3.
Employees of Public Agency in the following classes shall become members of
said Retirement System except such in each such class as are excluded by law or
this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
PLEASE DO NOT SIGN "EXHIB:1 m-iL'/"
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c.
Employees other than local safety members (herein referred to as local
miscellaneous members).
4. In addition to the classes of employees excluded from membership by said
Retirement Law, the following classes of employees shall not become members of
said Retirement System:
.
a. CROSSING GUARDS HIRED ON OR AFTER JANUARY 1, 1952;
b. - LIBRARY PAGES HIRED ON OR AFTER MARCH 17, 1975;
Co LIFEGUARDS;
d. SENIOR LIFEGUARDS;
e. SUPERVISING LIFEGUARDS;
f. RECREATION INTERNS;
g. RECREATION AIDES;
h. RECREATION LEADERS;
i. SENIOR RECREATION LEADERS;
j. RECREATION SPECIALIST;
k. LOCKER ATTENDANTS;
I. VEHICLE OPERATORS; AND
m. EXTRA RELIEF REA VY LABORERS (EXTRA BOARD).
5. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 supersedes this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January 1, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. The percentage of final compensation to be provided for each year of credited
prior and current service as a local miscellaneous member shall be determined- in
accordance with Section 21251.13 of said Retirement Law (2% at age 60 Full).
7. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions:
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a.
Sections 21624. 21626 and 21628 (Post-Retiremel1t Survivor Allowance)
for local miscellaneous members and local fire members only.
--,- -. - --
.
PtEASE DO NOT SIGN "EXi1i3iT miLyn
b.
Section 21222.1 (Special 5% Increase-l 970). Legislation repealed said
Section effective January I, 1980.
c. Section 20042 (One-Year Final Compensation).
d. Section 21024 (Military Service Credit as Public Service), Statutes of
1974.
e. Section 21222.2 (Special 5% Increase-1971). Legislation repealed said
Section effective January I, 1980.
f. Section 21319 (Special 15% Incre8se for Local Miscellaneous Members).
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
h. Section 20903 (Two Years Additional Service Credit) for local
miscel1aneo~ members only. .
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9.
Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on April 28, 1975.
Accumulated contributions of Public Agency shall be fixed and determined as
provided in Government Code Section 20834, and accumulated contributions
thereafter shall be held by the Board as provided in Government Code Section
20834.
10. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
II. Public Agency shall also contribute to said Retirement System as follows:
a. Public Agency shall contribute S 1.50 per member, per month on account
of the liability for the 1959 Survivor Benefits provided under Section
21573 of said Retirement Law. (Subject to annual change.) In addition,
all assets and liabilities of Public Agency and its employees shall be
pooled in a single account, based on term insurance rates, for survivors of
all local fire members.
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b. A reasonable amount, as fixed by the Board, payable in one installment
within 60 days of date of contract to cover the costs of administering said
System as it affects the employees of Public Agency, not including the
costs of special valuations or of the periodic investigation and valuations
required by law.
c. A reasonable amount, as fixed by the Board, payable in one installment as
the occasions arise, to cover the costs of special valuations on account of
employees of Public Agency, and costs of the periodic investigation and
valuations required by law.
12. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees'
Retirement Law, and on account of the experience under the Retirement System
as determined by the periodic investigation and valuation required by said
Retirement Law.
13. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of the
period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for any
period, proper adjustment sba1l be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the Board.
B.
This amendment shall be effective on the
day of
,19_.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF SAN BERNARDINO
.
BY. ~ BY ~
KENN ~~ON. CIUEF PRESID"'lii OFFICER
ACTUARIAL PLOVER SERVICES DIVISION ~~
PUBLIC EMPLO ' RETIREMENT SYSTEM i:' ~
%'-1' ~ ~
~~... Witness Date J'~"
"'~.. (f!j
q;:.-. Attest: ~'\
...,.., ~.>
~"
~r.>
Clerk
AMENDMENT
PEJlS.CON.702A (Rev. 1196)
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
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 ABD COMIIOB COUBCIL
(governing body)
of the
CITY OF SAIl BBRBARDINO
(public agency)
on April 7, 1997
(date)
.
c~~
CITY CLERK
Title
PER5-CON-12 (rev. 1196)
t:ALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the
Mayor and COII8On Council
(governing body)
City 9f San Bernardino
of the
(public agency)
, by an affirmative vote of a majority of the members of said
adopted on June 2. 1997
(date)
Governing Body, ORDlBAIlCE No. MC-994 approving the
(Ordinance or Resolution)
attached contractual agreement between the Governing Body of said Agency and the Board of
Administration of the California Public Employees' Retirement System, a certified copy of said
ORDlBAIlCE in the form furnished by said Board of Administration
(Ordinance or Resolution)
being attached hereto.
~p h_~
CITY CLERl(
Title
n.re~ S,17,1
PERS-CON-5 (Rev. 1/96)
, BENEFIT COST FOR
GOLDEN HANDSHAKE
SERVICE
CREDIT TOTAL ESTIMATED
DEPARTMENT TITLE COST BUDGET SAVINGS
GENERAl FUND
City Clerk Account Clerk III 15,344 36,930 21,586
Account Clerk III 11,852 28,908 17,056
Deputy City Clerk I 11,534 44,481 32,947
Code Compliance Account Clerk I . 9,284 27,701 18,417
Facilities Mgmt Senior Custodian 18,043 38,210 22,187
Parking Control Ckr 14,739 33,880 18,921
Parking Control Ckr 8,787 35,826 28,839
Parking Control Ckr 13,889 35,215 21,328
Parking Control Ckr 13,840 35,115 21,275
Finance Account.Clerk II 13,010 31,518 18,508
Assistant Buyer 13,180 41,088 27,928
Cashier II 12,374 30,188 17,794
Admin Oper Super 21,318 50,790 29,474
Library Junior Librarian 15,853 37,311 21,856
Junior Librarian 10,542 39,198 28,856
Junior Librarian 15,853 37,311 21,856
Lib Comp Lab Coord 18,840 44,207 25,587
Park & Recreation Typist Clerk III 13,322 32,120 18,798
Typist Clerk II 11,098 27,352 18,256
Typist Clerk II 7,473 28,112 20,839
PWVI 9,856 30,281 20,425
PWVIII 11,447 38,330 24,883
PWVIII 11,447 38,330 24,883
PWVIII 14,382 29,359 14,978
PWVIII 11,447 36,330 24,883
Personnel Personnel Clerk II 8,876 31,898 23,022
Public WorksIEng ConsllUction Inspect 17,372 44,553 27,181
Survey Party Chief 14,393 55,374 40,981
Leed Main! Worker 13,828 42,518 28,890
Public ServlcesI Leed Maint Worker 13,828 42,518 28,890
Streets Leed Maint Worker 17,123 42,518 25,395
Risk Mgmt Wkrs Comp Specialist 12,211 34,907 22,698
GENERAL FUND TOTAlS 423,180 1,177,733 754,573
NON-GENERAl FUND
Animal Control Animal Shell Op Mgr 11,730 42,010 30,280
Sr. Animal License Ckr 8,257 31,899 23,842
Cemetery Park Maint Worker III 9,099 38,330 27,231
Public ServicesI Sanitation Route Super 17,400 53,377 35,977
Refuse Sanitation Route Super 17,400 53,377 35,977
Sanitation Route Mgr 22,297 58,812 38,515
Collector 13,889 35,189 21,300
. SERVICE
CREDIT TOTAL ESTIMATED
DEPARTMENT COST BUDGET SAVINGS
street SMeping Motor S\.t...p8I Oper 15,117 36,140 21,023
Motor SwMper Oper 12,032 37,990 25,958
Motor Sv.eeper 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 43,685 29,n5
Equip Mech II 11,216 43,685 32,669
Equip Mech II 11,216 43,685 32,669
Equip Mech I 15,264 36,2n 23,013
Admin Oper Super II 29,748 59,671 29,925
NON-GENERAL FUND TOTALS 261,622 765,360 503,756
"".ALS 664,763 1,943. 113 1.256.330
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1
City of San Bernardino
INTEROFFICE MEMORANDUM
TO:
Honorable MayQt. and Common Council
>&?.J/",'n.a.Aik ~ /oV
Barbara 00011, Director of Personnel
A&enda Item m - Respome to Inquiries on Golden Bau.klllakt> _
May 19, ~
FROM:
SUBJECT:
DATE:
May 28, 1997
COPIES:
Jorge Carlos, .4.dmini!ltrative Assistant to Council; Rachel Clark, City Clerk;
Barbara Pachon, Director of Finance; Lorraine Velarde, Executive .4.ssistant to
the Mayor; Fred Wllson, City Adminimator
At the May 19, 1997 meeting of the Mayor and Common Council, Counci1members bad
inquiries on the following issues related to amending the City's contract with PERS, to provide
two years of additional service credit (Golden Handshake):
1. What will be the status of departmental vacancies as a result of designllted employees
taking the Golden JllInd"'".",,?
2. If the ordinance is approved on June 2, 1997, what will be the revised window period
for the Golden Handshake?
3. What are the benefits to the Golden JllInd_hAle.. program?
Attached is a summary of the questions and answers for your review.
Thank you
BD/dp
attachment
-=tf~~
~I ~I q7
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--I --
GOLDEN HANDSHAKE
1. What will be the status or departmental vacancies as a result or deslgJIAted
employees tAk/1II the Golden HandchAke?
If the City amP.rl(ls its contract to offer the two years of additional service credit (Golden
FJ"nd",,,.b) to McilV'''tM employees, PERS requires that at least one vacancy in any
position in any department or orpn;7Ational unit sbalI remain unfilled, thereby resulting
in an overall reduction in the work fon:e of such department or organizational unit
Based on Council iDquiries at their ...-;'" of May 19, 1997, '""ehed is a &~.kd
....... ofcl"c.;flca~ ~ be ot't'c:ml the two years of additional iervice credit (Golden
JfAntI.....b). T"-tifi...t City employees woo take advantage of this retitement incentive
during the Mcil"""'" window period will aar'e .mfillelJ vacancies in their ('J"";,",,,tioos
or another classificatioIl within their department/division.
2. If the ordtnAnce is approved on June 2, 1997, what wU1 be the revised window
period for the golden baulkhAke?
PERS requires that the designated window period must be subsequent to the effective
date of the contract 1I111f'.J1dment and cannot be less than 90 nor more than 180 days in
length. Based on this requirement, and City budget constraints, the City bas selected a
91-day window period for this benefit.
If the ordinance is approved on June 2, 1997, the revised window period would begin
on July 4, 1997 and continue through October 2, 1997.
3. What are the benefits to golden baud~h"k.. program?
* Creates vacancies so that positions can more easily be deleted.
* Older, loyal long-term employees to the City are given the benefit and have a
choice to take program or not.
* Saves jobs of younger employees who have younger families to support at home.
Usually, when filled positions are deleted, the younger employees are the ones
who are bumped out of jobs by older, long-term employees.
* Permanently reduces staff in each department that takes advantage of the
program. City Administrator will ask departments to keep positions vacant for
a period of time to recoup payoffs.
attachment
~ .""- BENEFIT COST FOR
GOLDEN HANDSHAKE
SERVICE
CREDIT TOTAL ESTIMATED
DEPARTMENT TITLE COST BUDGET SAVINGS
GENERAL FUND
City Clerk Account Clerk III 15,344 36,930 21,586
Account Clerk III 11,852 28,908 17,056
Deputy City Clerk I 11,534 44,481 32,947
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
A Parking Control Ckr 13,889 35,215 21,326
Parking Control Ckr 13,840 35,115 21,275
Finance AccountClerk II 13,010 31,518 18,506
Assistant Buyer 13,160 41,086 27,926
Cashier II 12,374 30,188 17,794
Admin Oper Super 21,316 50,790 29,474
Library Junior Librarian 15,653 37,311 21,658
Junior Librarian 10,542 39,198 28,656
Junior Librarian 15,653 37,311 21,658
Lib Comp Lab Coord 18,640 44,207 25,567
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
PPOWV I 9,856 30,281 20,425
PPOWV III 11,447 36,330 24,883
PPOWV III 11,447 36,330 24,883
PPOWV III 14,382 29,359 14,976
PPOWV III 11,447 36,330 24,883
Personnel Personnel Clerk II 8,676 31,698 23,022
Public WorksJEng Construction Inspect 17,372 44,553 27,181
Survey Party Chief 14,393 55,374 40,981
Lead Maint Worker 13,628 42,518 28,890
Public Servicesl Lead Maint Worker 13,628 42,518 28,890
Streets Lead Maint Worker 17,123 42,518 25,395
Risk Mgrnt Wkrs Comp Specialist 12,211 34,907 22,696
GENERAL FUND TOTALS 423,160 1,177,733 754,573
NON-GENERAL FUND
Animal Control Animal Shell Op Mgr 11,730 42,010 30,280
Sr. Animal License Ckr 8,257 31,899 23,642
Cemetery Park Maint Worker III 9,099 38,330 27,231
Public Selvicesl Sanitation Route Super 17,400 53,377 35,977
Refuse Sanitation Route Super 17,400 53,377 35,977
Sanitation Route Mgr 22,297 58,812 38,515
Collector 13,889 35,189 21,300
~ ,,-. SERVICE
CREDIT TOTAL ESTIMATED
DEPARTMENT COST BUDGET SAVINGS
Street Sweeping Motor Sv.eeper 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
Main! 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 Mech II 11,216 43,885 32,669
Equip Mech I 15,264 38,277 23,013
Admin Oper Super II 29,746 59,671 29,925
NON-OENERAL FUND TOTALS 261,622 765,380 503,758
GRAND.tlALS . 664,783 1,943. 113 1 ,258,330
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