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HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 10, 2012 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City modifying the contribution rates to the Public Employees' Retirement System by decreasing the City's contribution and incrementally increasing the member contribution paid by the City of National. City's Police Officers' Association Represented Employees reaching a 100% employee contribution in July, 2013; and rescinding City Council Resolution 2011-261. PREPARED BY: 'Cilia Munoz, FIR Technician PHONE: I336-430g EXPLANATION: APPRO DEPARTMENT: �; ,-� c- ED = December 6, 2011, the City Council approved a Memorandum of Understanding (MOU) between the City of National City and the National City Police Officers' Association (NCPOA) for the period July 1, 2011 through June 30, 2014. The terms of the MOU included an amendment to Article 17, Public Employees' Retirement System (PERS). Since July 2009, the City has contributed seven percent (7%) of the employee's nine percent (9%) member contribution, with the employees contributing the other two percent (2%). As amended, NCPOA employees have agreed to pay the employee contribution as follows: three percent (3%) effective July 1, 2011, two percent (2%) effective July 10, 2012, and two percent (2%) (Non -sworn one percent 1%) effective July 9, 2013. As such, NCPOA employees will assume responsibility for the full employee contribution effective fiscal year 2013/2014. To effect this provision, pursuant to Government Code Section 20691, the City Council must amend the contract between the Board of Administration of PERS and the City Council by adopting a resolution specifying the plan change. Therefore, staff seeks a resolution reducing the Employer Paid Member Contribution to Ca1PERS for NCPOA employees to four percent (4%) effective July 1, 2011, two percent (2%) effective July 10, 2012, and eliminating the Employer Paid Member Contribution effective July 9, 2013. This action is intended to. replace City Council Resolution 2011-261 in order to remedy factual errors inthe titling and language of the Resolution. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL R Fiscal Year Savings FY 11/12 $310,822 FY 12/13 $526,421 FY13/14 $771,477 N/AI ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: 'Approve the new resolution and rescind the Council Resolution 2011-261 I BOARD / COMMISSION RECOMMENDATION: N/AI ATTACHMENTS: 'Resolution 1