City of Culver City, California
City Council 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 15, 2010 to June 15,
2010; 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 25, 2010 City Council meeting, the City Council considered
information in accordance with Government Code Section 7507 regarding the
potential costs and savings related to the elimination of up to 41 positions through
the CalPERS Early Retirement Incentive Program. 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 Group of Members.
Meeting Date: 02/08/10 Item Number: A-1
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 15, 2010 to June 15, 2010; 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: []
Public Notification: (E-Mail) Meetings and Agendas – City Council (02/03/10), Culver
City Management Group (02/03/10), Culver City Employees Association (02/03/10)
Department Approval:
Serena Wright (02/08/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/03/10)
Chief Financial Officer Approval:
Mark Scott (by M. Noller) (02/03/10)
City Manager Approval:
Mark Scott (02/03/10) City of Culver City, California
City Council 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 15, 2010 – June15, 2010.
Update to List of Eligible Group of Members Presented on January 25, 2010
As part of the dissemination of the information considered by the City Council at its
meeting of January 25, 2010, there have been a few adjustments to the List of
Eligible Group Members presented. Three positions have been added (as the
employees in those classifications have expressed initial interest in the Early
Retirement Incentive). The additions to the list are noted in bold italics.
As mentioned at the January 25, 2010 meeting, staff wants to be clear that a
scenario where all eligible employees accept the ERI will not be realized. However, it
seems most probable an acceptance rate of between 20% and 40% (8 and 16
positions) may be realized. The actual workforce reduction realized is dependent
upon the number of employees who take formal action to accept the early retirement
incentive during the window period.
To provide the City Council with more probable scenarios, a table was included in
the January 25, 2010 staff report with two scenarios reflecting a 10% (4 positions)
and 20% (8 positions) participation rate. Based upon information gathered
subsequent to the City Council meeting of January 25, 2010, a participation rate of
between 20% (8 positions) and 40% (16 positions) is now most likely. An updated
table is included in the Fiscal Impact section of this report.
City of Culver City, California
City Council Agenda Item Report
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)
Accounting Division
Manager
Finance $107,099
Accounting Technician Finance $58,599
Associate Analyst Finance $70,112
Building Official Community Development $142,993
Chief Information Officer Information Technology $165,224
Community Development
Director
Community Development $150,300
Deputy City Attorney II City Attorney $134,690
Deputy City Clerk City Clerk $79,023
Deputy City Treasurer Finance $142,993
Equipment Maintenance
Manager
Transportation $120,704
Executive Asst to City
Manager
City Manager’s Office $77,463
Facilities Maintenance
Crew leader
Public Works $66,705
Facilities Maintenance
Manager
Public Works $90,856
Graphic Services
Supervisor
Information Technology $68,388
Housing Program
Supervisor
Community Development $89,506
Human Resources Analyst Human Resources $83,060
Legal Operations Manager City Attorney’s Office $98,889
Maintenance Carpenter Public Works $62,522
Maintenance Operations
Manager
Public Works $121,912 City of Culver City, California
City Council Agenda Item Report
Classification
Department
Projected Annual
Salary Savings
(excluding
benefits)
Management Analyst Community Development $79,023
Management Analyst Transportation $83,060
Parks, Recreation &
Community Services
Director
Parks, Recreation &
Community Services
$148,807
Payroll Technician (2) Finance $129,480
Police Records Technician Police $47,829
Public Works Director Public Works $165,224
Purchasing Officer Finance $98,889
Recreation Manager Parks, Recreation &
Community Services
$120,107
Recreation Supervisor Parks, Recreation &
Community Services
$81,421
Redevelopment Project
Manager
Community Development $111,452
Safety Services
Communications Operator
Police $60,677
Senior Bldg & Safety
Inspector
Community Development $83,476
Senior Civil Engineer Public Works $119,510
Senior Management
Analyst
Finance $114,834
Senior Management
Analyst
City Attorney $98,889
Senior Management
Analyst
Parks, Recreation &
Community Services
$98,889
Senior Management
Analyst
Public Works $98,889
Senior Planner Community Development $107,099
Senior Structural Rehab
Specialist
Community Development $83,476
Senior Tree Maintenance
Worker
Public Works $52,251
Solid Waste & Recycling
Operations Supervisor
Public Works $82,236
Street Maintenance
Supervisor
Public Works $86,438
Traffic Painting Crewleader Public Works $67,710 City of Culver City, California
City Council Agenda Item Report
Classification
Department
Projected Annual
Salary Savings
(excluding
benefits)
Treasury Division Manager Finance $107,099
Total Projected Annual
Salary Savings:
Up to
$4,149,297
Less Projected Annual
City Cost to implement
the Early Retirement
Program:
Up to
($195,305)
Net Projected Annual
Salary Savings:
Up to
$3,953,992
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.
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.
The following table estimates the salary savings, cost, and net savings using two
likely participation rates:
ATTACHMENTS:
1. Proposed Resolution
2. Certification of Compliance with Government Code Section 20903
PARTICIPATION 20% (8 positions) 40% (16 positions)
Salary Savings $852,000 $1,704,000
Contribution
Increase (Cost)
$(39,000) $(78,000)
Net Savings $813,000 $1,626,000 City of Culver City, California
City Council Agenda Item Report
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 15, 2010 to June 15, 2010; 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: 2/08/10
AGENDA ITEM: Adopt Resolution to provide additional service credit
pursuant to Government Code Section 20903 for Local Miscellaneous Members
of the California Public Employees Retirement System (CalPERS) and certify
compliance with Government Code Sections 20903.
ATTACHMENTS PAGE
1. Resolution 1 - 3
2. Certification of Compliance with Government Code
Section 20903 4WHEREAS, 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, the City Council of the City of Culver City, DOES
HEREBY RESOLVE as follows:
1. That the City Council of the City of Culver GUY, California, does
seek to add another designated period, and does hereby autharize this Resolution,
indicating a desire to add a designated period from February 15, 2010 through June 15,
2010 for eligible Miscellaneous members in the following pOsitioni:
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RESOLUTION NO. 2010-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.
Classification Department
Accounting Division Manager Finance
Accounting Technician Finance
Associate Analyst Finance
Building Official Community Development
Chief Information Officer Information Technology.
Community Development Director Community Development
•
1I|1010|Classification Department
3 Deputy City Attorney City Attorney|1010|Deputy City Clerk City Clerk|1010|Deputy City Treasurer Finance|1010|Equipment Maintenance Manager Transportation|1010|Executive Asst to City Manager City Manager's Office|1010|Facilities Maintenance Crew leader Public Works|10 10|Facilities Maintenance Manager Public Works
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Graphic Services Supervisor Information Technology
11
Housing Program Supervisor Community Development
12
Human Resources Analyst Human Resources
13
Legal Operations Manager City Attorney's Office
14 Maintenance Carpenter Public Works
15 Maintenance Operations Manager Public Works'
Management Analyst Community Devel6pMent
17 Management Analyst Transportation
18 Parks, Recreation & Community Parks, Recreation & Community
19 Services Director Services
20 Payroll Technician (2) Finance
21 Police Records Technician Police
22 Public Works Director Public Works
23 Purchasing Officer Finance
24 Recreation Manager Parks, Recreation & Community
25
Services
26 Recreation Supervisor
Parks, Recreation & Community
27
Services
28
2day of 2010.
ANDREW WEISSMAN, Mayor
City of Culver City, California
APPROVED and ADOPTED this
LA. SCHW City Attorney
Classification
Redevelopment Project Manager
Safety Services Communications
Operator
Senior Bldg & Safety Inspector
Senior Civil Engineer
Senior Management Analyst
Senior Management Analyst
Senior Management Analyst
Senior Management Analyst
Senior Planner
Senior Structural Rehab Specialist
Senior Tree Maintenance Worker
Solid Waste & Recycling Operations
Supervisor
Street Maintenance Supervisor
Traffic Painting Crew leader
Treasury Division Manager
ATTEST:
MARTIN R. COLE, City Clerk|101010101010101010 10
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Department
Community Development
Police
Community Development
Public Works
Finance
City Attorney
Parks, Recreation & Community
Services
Public Works
Community Development
Community Development
Public Works
Public Works
Public Works
Public Works
FinanceCALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Employer Services Division
Contract Maintenance Unit
P.O. Box 942709
Sacramento, CA 94229-2709
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 Council of the City of Culver City hereby
certifies that:
1. 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.
THEREFORE, the City council of 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, through CITY COUNCIL
OF THE
CITY OF CULVER CITY
BY
Presiding Officer
Attest:
Clerk/Secretary
Date
2yr certification-PA (Rev. 4/04)