HomeMy WebLinkAbout2005-09-13 - AGENDA REPORTS - CONTR AMEND CALPERS (2)Agenda Item•
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Ken Striplin
DATE: September 13, 2005
SUBJECT: CONTRACT AMENDMENT WITH CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE 21354.5
(2.7%@55) FORMULA FOR LOCAL MISCELLANEOUS
MEMBERS
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council conduct second reading and 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 August 23, 2005, the City Council adopted the Resolution of Intent to amend the contract
between the Board of Administration California Public Employees' Retirement System
(Ca1PERS) and the City Council, City of Santa Clarita. Subsequently, an employee election was
held and a majority of employees voted in favor of the amendment. This is the second and final
step in the process to amend the contract.
Annually, the City Manager meets with employees to discuss compensation and benefits. During
last years meetings, employees expressed a great deal of interest in looking at the enhancing the
City's retirement plan. In January 2005 a sub -committee in conjunction with the Workforce &
Organization Plan was formed to conduct an in-depth analysis of our current retirement plan and
to evaluate options for possible enhancement and employee consideration. This process was
initiated with the purpose of enhancing attraction and retention. The City also retained the
Adopted. 4(w, as-le
services of an actuary consultant to assist in projecting the future cost of the benefit to ensure
fiscal stability.
The process yielded several options which employees carefully considered. A key component to
the City implementing an enhancement was the financial participation of all employees. After
careful consideration of the feedback received from the employee survey conducted in May 2005,
and better understanding the orientation of the City Council the 2.7% @ 55 retirement formula
has been determined to be best aligned with the ultimate goals of employee attraction and
retention.
To implement the 2.7% @ 55 retirement formula, the City Council must adopt a Final
Ordinance. While the effective date of the ordinance will be October 13, 2005, the formula
would be effective January 1, 2006.
ALTERNATIVE ACTIONS
Other actions as directed by the City Council.
FISCAL IMPACT
The proposed benefit enhancement is a negotiated agreement between the City and the
employees. City staff agreed to pay 2% while the City will pay 3.3%. The total cost is 5.3% or
$1,201,311. Funds for this benefit enhancement have been budgeted in the 2005-2006 Budget.
ATTACHMENTS
Ordinance