City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends that the City Council (1) adopt a Resolution (a) providing
additional service credit pursuant to Government Code Section 20903 for Local
Miscellaneous Members of the California Public Employees Retirement System
(CalPERS); (b) designating the Window Period as February 14, 2012 to May 14,
2012; and (c) specifying the Eligible Group of Members; and (2) authorize the Mayor
to Execute the Certification of Compliance with Government Code Section 20903.
BACKGROUND:
At the January 23, 2012 City Council meeting, the City Council considered
information in accordance with Government Code Section 7507 regarding the
potential costs and savings related to offering eligible employees within certain job
classifications two years of additional service credit through the California Public
Employees Retirement System (CalPERS). The item was considered as an action
item, with an opportunity for members of the public to provide comment. As
mentioned at that time, the second step of the process is for the City Council to
adopt a resolution which: (1) provides additional service credit pursuant to
Government Code Section 20903 for Local Miscellaneous Members of the California
Public Employees Retirement System (CalPERS); (2) designates the window period;
and (3) specifies the eligible positions.
Meeting Date: 2/13/12 Item Number: A-3
CITY COUNCIL AGENDA ITEM: (1) Adoption of a Resolution (a) Providing
Additional Service Credit Pursuant to Government Code Section 20903 for Local
Miscellaneous Members of the California Public Employees Retirement System
(CalPERS); (b) Designating the Window Period as February 14, 2012 to May 14,
2012; and (c) Specifying the Eligible Group of Members; and (2) Authorize the
Mayor to Execute the Certification of Compliance with Government Code Section
20903.
Contact Person/Dept.: Serena Wright Phone Number: (310) 253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: (E-Mail) Meetings and Agendas – City Council (02/09/12), Culver
City Management Group (02/09/12), Culver City Employees Association (02/09/12)
Department Approval:
Serena Wright (02/7/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/08/12)
Chief Financial Officer Approval:
Jeff Muir (02/08/12)
City Manager Approval:
John M. Nachbar (02/09/12) City of Culver City, California
Agenda Item Report
DISCUSSION:
In accordance with the Public Employees Retirement Law, two years of additional
service credit may be offered to employees who have at least five years of CalPERS
service and meet the minimum age requirement for a service retirement.
Additionally, an agency must be facing impending mandatory transfers, demotions or
layoffs that constitute at least 1 percent (1%) of the job classification, department or
organizational unit, as designated by the City. Further, the City must certify that it
intends to keep all vacancies created by retirements under this program or at least
one vacancy in any position in any department or organizational unit permanently
unfilled resulting in an overall reduction in the work force. The City can choose to
eliminate the position associated with the early retirement incentive or another
position within the department or organizational unit.
To provide this early retirement incentive, the City must designate a window period
of between 90 and 180 days during which eligible employees must retire to receive
the early retirement incentive. Staff has proposed that the designated window period
be February 14, 2012 – May 14, 2012.
FISCAL ANALYSIS:
Staff has identified the following classifications that are eligible to receive the
additional service credit benefit:
Classification
Department
Projected Annual
Salary Savings
(excluding
benefits)
Deputy City Attorney I
City Attorney’s Office $124,993
Legal Operations Manager
City Attorney’s Office $98,889
Deputy City Clerk
City Clerk’s Office $79,023
Records Management
Coordinator
City Clerk’s Office
$66,046
Executive Assistant to City
Manager
City Manager’s Office
$77,463
Administrative Clerk
Community Development
$47,829
Administrative Secretary
(2)
Community Development
$116,612 City of Culver City, California
Agenda Item Report
Classification
Department
Projected Annual
Salary Savings
(excluding
benefits)
Associate Analyst Community Development $70,112
Associate Planner Community Development $83,060
Events Coordinator Community Development $89,506
Housing Assistant (2) Community Development $130,128
Occupancy Specialist Community Development $38,983
Management Analyst Community Development $83,060
Redevelopment Project
Manager (2)
Community Development
$222,904
Structural Rehabilitation
Specialist
Community Development
$76,695
Accountant II Finance $78,239
Accounting Division
Manager
Finance
$107,099
Accounting Technician (2) Finance $117,198
Payroll Technician (2) Finance $129,480
Senior Account Clerk Finance $52,775
Treasury Division Manager Finance $107,099
Human Resources Analyst Human Resources $83,060
Safety Officer Human Resources $77,076
Information Systems
Analyst
Information Technology
$87,305
Senior Computer
Programmer Analyst
Information Technology
$101,385
Telecommunication Analyst Information Technology $81,827
Administrative Secretary
(2)
Parks, Recreation &
Community Services
$116,612
Senior and Social Services
Specialist
Parks, Recreation &
Community Services
$65,064
Senior Management
Analyst
Parks, Recreation &
Community Services
$98,889
Administrative Secretary Police $58,306
Property Technician Police $56,028
Secretary Police $52,251 City of Culver City, California
Agenda Item Report
Classification
Department
Projected Annual
Salary Savings
(excluding
benefits)
Administrative Clerk/RPT Public Works $43,286
Administrative Secretary
(2)
Public Works
$116,612
Clerk Typist/RPT Public Works $37,271
Permit Technician Public Works $52,251
Sanitation Crew Supervisor
(2)
Public Works
$125,044
Senior Civil Engineer
Public Works
$119,510
Senior Management
Analyst
Public Works
$98,889
Management Analyst Transportation $83,060
Secretary Transportation $52,251
Senior Management
Analyst
Transportation
$98,889
Total Projected Annual
Salary Savings:
Up to
$3,699,252
Less Projected Annual
City Cost to implement
the Early Retirement
Program:
Up to
($168,285)
Net Projected Annual
Salary Savings:
Up to
$3,530,967
It is unlikely that all eligible employees within the above listed classifications will
retire within the designated window period. However, if 10% were to take advantage
of the early retirement incentive, the City could expect to save approximately
$369,925 annually in salary, dependent upon the classification and associated
salary. This, in turn, would cost approximately $16,828 annually.
In order to reduce the impact to the City, CalPERS allows the City to pay the annual
cost through an increase in the employer contribution rate, starting two fiscal years
after the end of the designated period, which may continue for as long as twenty (20)
years. The impact of this change on the City’s employer contribution rate is expected
to be minor compared to the overall contributions. Also, such impacts are far less
than the annual salary and benefit savings realized from the positions being vacated.
It should be noted that benefits represent an additional 35% – 40% of salary in costs City of Culver City, California
Agenda Item Report
to the City. The net projected annual salary savings noted above does not include
the additional ongoing savings realized from a reduction in benefit costs.
In addition, the City will experience a one-time cost when the employees cash-out
their accrual leave banks upon retirement in accordance with the terms of their
respective Memorandum of Understanding.
ATTACHMENTS:
1. Proposed Resolution
2. Certification of Compliance with Government Code Section 20903
MOTION:
That the City Council:
1. Adopt a Resolution (a) providing additional service credit pursuant to
Government Code Section 20903 for Local Miscellaneous Members of the
California Public Employees Retirement System (CalPERS); (b) Designating
the Window Period as February 14, 2012 to May 14, 2012; and (c) Specifying
the Eligible Group of Members; and,
2. Authorize the Mayor to execute the Certification of Compliance with
Government Code Section 20903.
MEETING DATE: 2/13/12
AGENDA ITEM: (1) Adoption of a Resolution (a) Providing Additional
Service Credit Pursuant to Government Code Section 20903 for Local
Miscellaneous Members of the California Public Employees Retirement System
(CalPERS); (b) Designating the Window Period as February 14, 2012 to May
14, 2012; and (c) Specifying the Eligible Group of Members; and (2) Authorize
the Mayor to Execute the Certification of Compliance with Government Code
Section 20903.
ATTACHMENTS
Pages
1. Resolution 1-6
2. Certification of Compliance with Government Code Section 20903 7-8 Department
City Attorney's Office
City Attorney's Office
City Clerk's Office
City Clerk's Office
City Manager's Office
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RESOLUTION NO. 2012-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA TO GRANT ANOTHER
DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL
SERVICE CREDIT
WHEREAS, the City Council of the City of Culver City is a contracting
Public Agency of the Public Employees' Retirement System; and
WHEREAS, said Public Agency desires to provide another designated
period of Two Years Additional Service Credit, Section 20903, based on the contract
amendment included in said contract, which provided for Section 20903, Two Years
Additional Service Credit, for eligible members;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of Culver City, California, does seek to add another designated period, and does
hereby authorize this Resolution, indicating a desire to add a designated period from
February 14, 2012 through May 14, 2012 for eligible Miscellaneous members in the
following positions:
Classification
Deputy City Attorney I
Legal Operations Manager
Deputy City Clerk
Records Management
Coordinator
Executive Assistant to City
Manager 1
2
3
5
6
7
8
10
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12
13
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Classification Department
Administrative Secretary
(2)
Associate Analyst
Associate Planner
Events Coordinator
Housing Assistant (2)
Occupancy Specialist
Management Analyst
Redevelopment Project
Manager (2)
Structural Rehabilitation
Specialist
Accountant II
Accounting Division
Manager
Accounting Technician (2)
Payroll Technician (2)
Senior Account Clerk
Treasury Division Manager
Human Resources Analyst
Safety Officer
Information Systems
Analyst
Senior Computer
Programmer Analyst
Telecommunication Analyst
Community Development
Community Development
Community Development
Community Development
Community Development
Community Development
Community Development
Community Development
Community Development
Finance
Finance
Finance
Finance
Finance
Finance
Human Resources
Human Resources
Information Technology
Information Technology
Information Technology
2 Department
Parks, Recreation &
Community Services
Parks, Recreation &
Community Services
Parks, Recreation &
Community Services
Police
Police
Police
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Transportation
Transportation
Transportation
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III
III
III
Classification
Administrative Secretary
(2)
Senior and Social Services
Specialist
Senior Management
Analyst
Administrative Secretary
Property Technician
Secretary
• Administrative ClerkJRPT
Administrative Secretary
(2)
Clerk Typist/RPT
Permit Technician
Sanitation Crew Supervisor
(2)
Senior Civil Engineer
Senior Management
Analyst
Management Analyst
Secretary
Senior Management
Analyst
28 APPROVED and ADOPTED this day of , 2012.
Al 2-00145
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ATTEST:
MARTIN R. COLE
City Clerk
MICHEAL O'LEARY, MAYOR
City of Culver City, California
tittic.. td_ A. SCHWAB 1.t_
ity Attorney mypalPERS 0499
Page 1 of 2
lb 1111 i ii IIII' 111111 II I II II Ii II
Of THE
City of Culver City
RESOLUTION
TO
GRANT ANOTHER DESIGNATED PERIOD
FOR
TWO YEARS ADDITIONAL SERVICE CREDIT
WHEREAS, the of the City of Culver City is a contracting City or Town of the Public
Employees' Retirement System; and
WHEREAS, desires to provide another designated period for Two Years Additional
Service Credit, 20903, based on the contract amendment included in said
contract which provided for 20903, Two Years Additional Service Credit, for
Eligible members;
NOW, THERE, BE IT RESOLVED, that does seek to add another designated period,
and does hereby authorize this Resolution, indicating a desire to add a
designated period from
February 14, 2012- May 14, 2012 for
members in the Miscellaneous
Adopted and approved this day of
BY 11 QI
ii 0000000057553841 ii 11 11 11 II liii 111111 I11 11111110
mylCalPERS 0503
Page 1 of 2
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 20903
In accordance with Government Code Section 20903 and the contract between the
Public Employees' Retirement System, the City of Culver City hereby certifies that:
Because of an impending curtailment of, or change in the manner of performing
service, the best interests of the agency will be served by granting such additional
service credit.
2. The added cost to the retirement fund for all eligible employees who retire during
the designated window period will be included in the contracting agency's
employer contribution rate for the fiscal year that begins two years after the end of
the designated period.
3. It has elected to become subject to Section 20903 because of impending
mandatory transfers, demotions, and layoffs that constitute at least 1 percent of
the job classification, department or organizational unit, as designated by the
governing body, resulting from the curtailment of, or change in the manner of
performing, its services.
4. Its intention at the time Section 20903 becomes operative is to keep all vacancies
created by retirements under this section or at least one vacancy in any position in
any department or other organizational unit permanently unfilled thereby resulting
in an overall reduction in the work force of such department or organizational unit. my]CalPERS 0503
Page 2 of 2
1111
110000000067553843 I
II
THEREFORE, the City of Culver City hereby elects to provide the benefits of
Government Code Section 20903 to all eligible members who retire within the
designated period, from to
Presiding Officer
Title
Date