HomeMy WebLinkAboutStaff Report 3.B 01/22/2018DATE: January 22, 2018
Agenda Item #3.B
TO: -Honorable Mayor and Members of the City Council through City Manager
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FROM: y Reeve, Director of Human Resources
SUBJECT: Adoption (Second Reading) to Adopt an Ordinance Approving an Amendment to
the Contract Between the Board of Administration of the California Public
Employees' Retirement System and the City Council of the City of Petaluma;
Authorizing an Amendment to the Contract for Employees of Units 8, 10, and
Unrepresented Executive Management Employees Between the City Council of
Petaluma and the Board of Administration of the California Employees'
Retirement System
RECOMMENDATION
It is recommended that the City Council adopt an Ordinance Approving an Amendment to the
Contract Between the Board of Administration of the California Public Employees' Retirement
System and the City Council of the City of Petaluma; Authorizing an Amendment to the
Contract for Employees of Units 8, 10, and Unrepresented Executive Management Employees
Between the City Council of Petaluma and the Board of Administration of the California
Employees' Retirement System.
BACKGROUND
At their meeting of December 18, 2017, the City Council unanimously approved the introduction
of the ordinance approving an Amendment to the Contract with Ca1PERS for Employees of
Units 8, 10, and Unrepresented Executive Management Employees between the City Council of
Petaluma and the Board of Administration of the California Employees' Retirement System. The
Contract Amendment will permit a 3% employee cost share of PERS Employer Contributions.
After the Ordinance was approved by Council, the members of each unit were asked to vote for
the Amendment by ballot and all units approved the increased contribution.
The ordinance was approved for introduction on December 18th and there have been no
alterations to the meaning of the document for this second reading and final approval.
FINANCIAL IMPACTS
Although the City will provide a 3% salary offset in exchange for the employee pick -up to
CalPERS, the Ca1PERS amendment will bring a degree of permanence to the cost sharing
agreement and will help to control costs in the long -term. The cost of the 3% wage offset for all
groups will be approximately $9,167.00.
ATTACHMENTS
1. Ordinance
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EFFECTIVE DATE
OF ORDINANCE
Introduced by
ORDINANCE NO. N.C.S.
Seconded by
Attachment 1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING AN
AMENDMENT TO THE CONTRACT FOR EMPLOYEES OF UNITS 8, 10, AND
UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES BETWEEN THE CITY
COUNCIL OF THE CITY OF PETALUMA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
10 WHEREAS, the Public Employees' Retirement Law permits the participation of
11 public agencies and their employees in the Public Employees' Retirement System
12 (PERS) by the execution of a contract, and sets forth the procedure by which public
13 agencies may elect to subject themselves and their employees to amendments to said
14 Law; and
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16 WHEREAS, the City of Petaluma, by action of the City Council in accordance
17 with the Public Employee's Retirement Law, has entered into a contract with PERS
18 effective January 1, 1950, and subsequently amended, with the most recent amendment
19 occurring December 28, 2012, which PERS contract provides for participation of the City
20 and its employees in PERS; and
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22 WHEREAS, one of the steps in the procedures to amend a public agency contract
23 with PERS is the public agency governing body's adoption of a resolution giving notice
24 of its intention to approve a contract amendment, which resolution shall contain a
25 summary of the proposed contract change; and
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27 WHEREAS, on January 22, 2018, the Petaluma City Council adopts Resolution
28 no. giving the following summary of a proposed change to the City's PERS contract
29 in accordance with agreements reached with City bargaining units regarding such change
30 and the Public Employees' Retirement Law to provide for contributions of specified unit
31 members to the City's cost of participating in the City's PERS agreement:
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33 To become subject, from and after the effective date of the amendment, to Section
34 20516 of the Public Employees' Retirement Law (Employees Sharing Additional
35 Cost) to provide for employee cost sharing of 3% for local miscellaneous and
36 safety members in Department Head roles and Assistant City Attorney Bargaining
37 Unit (Unit 8), Petaluma Public Safety Mid - Managers Association (Unit 10), and
38 Unrepresented Executive Management employee unit which includes the City
39 Manager, City Attorney, and City Clerk; and
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Attachment 1
1 WHEREAS, in accordance with Sections 20471 and 20474 of the Public
2 Employees' Retirement Law, adoption of Resolution no. giving notice of a
3 proposed amendment to the City's PERS contract must occur not less than 20 days prior
4 to the date at which this ordinance is adopted; and
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6 WHEREAS, in accordance with Section 20474 of the PERS Law, an election of
7 the employees affected by the proposed amendment to the City's PERS contract will be
8 conducted and canvassed, and this ordinance may only be adopted if a majority of the
9 affected employees do not vote to disapprove the proposed amendment;
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12 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
13 PETALUMA AS FOLLOWS:
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15 Section 1: An amendment of the contract between the City Council of the City of
16 Petaluma and the Board of Administration, California Public Employees' Retirement System is
17 hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A ", and by
18 such reference made a part hereof as though herein set out in full.
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20 Section 2: The Mayor is hereby authorized, empowered, and directed to execute said
21 amendment for and on behalf of the City.
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23 Section 3: In accordance with Section 20474 of the Public Employees' Retirement Law,
24 the City and its affected employees shall become subject to the amendment attached as Exhibit A
25 beginning the first day of the first pay period following the effective date of this ordinance.
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27 Section 4: This Ordinance shall take effect thirty (30) days after the date of its adoption.
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29 Section 5: If any section, subsection, sentence, clause, phrase or word of this ordinance
30 is for any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of
31 competent jurisdiction or preempted by state legislation, such decision or legislation shall not
32 affect the validity of the remaining portions of this ordinance. The City Council of the City of
33 Petaluma hereby declares that it would have passed and adopted this ordinance and each and all
34 provisions thereof irrespective of the fact that any one or more of said provisions be declared
35 unconstitutional, unlawful, or otherwise invalid.
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37 Section 6: The City Clerk is hereby directed to publish or post this ordinance or a
38 synopsis for the period and in the manner provided by the City Charter and other applicable law.
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40 INTRODUCED, and ordered posted /published, this 22nd day of January, 2018.
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Attachment 1
ADOPTED this day of , 2018, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
David Glass, Mayor
ATTEST: APPROVED AS TO FORM:
Claire Cooper, City Clerk
Eric W. Danly, City Attorney