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HomeMy WebLinkAbout2005-05-24 - AGENDA REPORTS - CALPERS CONTR (2)Agenda Item: - CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Ken Striplin DATE: May 24, 2005 SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE AMENDING THE CONTRACT BETWEEN CALPERS AND THE CITY OF SANTA CLARITA DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council adopt an ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION, CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF SANTA CLARITA." BACKGROUND On April 26, 2005, the City Council adopted the Resolution of Intent to amend the contract between the Board of Administration California Public Employees' Retirement System (CalPERS) and the City Council, City of Santa Clarita. The original contract with Ca1PERS was implemented on November 14, 1988, and includes a basic death benefit for employees. However, it does not provide survivor benefits similar to Social Security. As a government entity, we are not subject to Social Security. We are part of the Ca1PERS system that has a separate survivor benefit similar to Social Security. Providing this benefit enables the City to ensure employees have an adequate survivor benefit to provide for their families. The benefit would provide a monthly allowance for eligible survivors should an employee die before retirement. This benefit provides a great deal of security for the employee at a nominal cost to the City. Adopted:Od. 0s:5r Per requirements of Ca1PERS, the City conducted an election to all eligible member of Ca1PERS whether or not they wish to receive this benefit. To date, we have received three hundred sixty-two (362) ballots. Three hundred fifty-three (353) have elected to receive this benefit. To implement this benefit, the City Council must adopt a Final Ordinance. The effective date of the ordinance will be June 24, 2005. It is anticipated that the benefit would be effective July 1, 2005. ALTERNATIVE ACTIONS Other action as directed by the City Council. FISCAL IMPACT The City's cost would be $25,250.00 annually. Funds are currently budgeted (This is equal to $6.00 per month per employee). ATTACHMENTS Amendment to Contract Ordinance