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HomeMy WebLinkAboutItem 5.3 Amend Employee Retirement Contract (2) CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 10, 1986 SUBJECT PUBLIC HEARING - Amendment to Public Employees Retirement System Contract EXHIBITS ATTACHED 1 ) Ordinance authorizing the amendment 2 ) Resolution prescribing time & method of paying salaries and wages and rescinding Resolution No . 97-85 3 ) Resolution No . 97-85 RECOMMENDATION : ) Conduct a public hearing 1 21 Deliberate 3 ) Waive reading and adopt ordinance 4 ) Adopt resolution FINANCIAL STATEMENT: Annual increased retirement cost is estimated at $2 , 976 to $7 , 700 depending on the members selecting the option to participate . The potential cost for participation in health insurance is $16 , 128 . DESCRIPTION At the regular City Council meeting on February 10 , 1986 , the Council adopted a Resolution of Intention to Approve an Amendment to the PERS Contract . At this meeting, the Ordinance Authorizing the Amendment was introduced. State Law regulating the amendment process requires a 20 day waiting period between the adoption of the resolution and the adoption of the ordinance . This waiting period has expired and it is now appropriate to consider adoption of the ordinance . The ordinance removes the exclusion of public officials from membership in the Public Employees Retirement System (PERS) . As a result of this change , the employer ' s contribution on all covered employees is anticipated to increase 0 . 3840 . Pursuant to legal requirements , these cost figures were disclosed on February 10 , 1986 . Provided that this ordinance is adopted, it would become effective April 9 , 1986 . The exclusion would be removed for the payroll period beginning April 12 , 1986 - In order to meet PERS reporting requirements , the City Council payroll will have to be processed on a bi-weekly basis . Also, the option for the inclusion of the City Attorney requires the ability to report payment on the same schedule . A resolution has been prepared which will alter the payment schedule for all employees and establish special provisions for the City Attorney . The resolution has also been modified to allow pre-issuance of payroll checks when the employee is absent on a regular pay date due to scheduled general leave . The resolution imposes _ certain reporting requirements and the issuance is at the discretion of the City Clerk. Staff recommends that a public hearing be conducted, waive the reading and adopt the ordinance . The City Council should then adopt the proposed resolution . -----------7------------------------------------------------------------------ COPIES TO : ITEM NO. ORDINANCE NO. - 86 AN ORDINANCE OF THE CITY OF DUBLIN ------------------------ AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF DUBLIN AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES ' RETIREMENT SYSTEM The City Council of the City of Dublin does ordain as follows : Section 1 . That an amendment to the Contract between the City Council of the City of Dublin and the Board of Administra- tion, California Public Employees ' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A" , and by such reference made a part hereof as though herein set out in full . Section 2 . The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency . Section 3 . This ordinance shall take effect and be in force thirty ( 30 ) days from and after the date of its passage . Before the expiration of fifteen ( 15 ) days after its passage, it shall . be published once with the names of the Councilmembers voting for and against the same in the Tri-Valley Herald, a newspaper published in Alameda County and available in the City of Dublin . PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this 10th day of March, 1986 by the following vote : AYES : NOES : ABSENT: Mayor ATTEST: City Clerk AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF DUBLIN The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, herein- after referred to as Public Agency, having entered into a contract effective February 1 , 1983, and witnessed December 13, 1982, which provides for partici- pation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 8 are hereby stricken from said contract as executed effective February 1 , 1983, and hereby replaced .by the following paragraphs numbered 1 through 10 inclusive: 1 . All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean .age 60 for local miscellaneous members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after February 1 , 1983 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contract- ing agency. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Employees other than local safety members (herein referred to as local miscellaneous members). 4. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. FIRE FIGHTERS; AND b. POLICE OFFICERS. 5: The fraction of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21251 .13 of said Retirement Law (2% at age 60 Full). 6. The following additional provisions of the Public Employees' Retirement Law, which apply only upon election of a contracting agency, shall apply to the Public Agency and its employees: b. Section 20835.1 (Limit Prior Service to Elected Officials Employed on the Effective Date of this Amendment to Contract), 7. Public Agency, in accordance with Government Code Section 20759, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20759, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20759. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1 ) 0.251 percent until June 30, 2007 on account of the liability for prior service benefits. (Subject to annual change. ) (2) 8,011 percent until June 30, 2011 on account of the liability for current service benefits. (Subject to annual change. ) b. A reasonable amount, as fixed by the Board, payable in one in- stallment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. C. A reasonable amount, as fixed by the Board, payable in one in— stallment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under -the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment- shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of 19 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF DUBLIN BY BY SIDNEY C. McCAUSLAND, Presiding Officer EXECUTIVE OFFICER Witness Date Approved as to form: Attest: Legal Office, Date Clerk Date PERS—CON-702 (AMENDMENT) (Rev. 9/85) RESOLUTION NO . - 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN -------------------------------------- PRESCRIBING THE TIME & METHOD OF PAYING SALARIES AND WAGES AND RESCINDING RESOLUTION NO. 97-85 WHEREAS, the City Council Members are currently paid on a monthly basis ; and WHEREAS , the remaining employees are paid on a bi-weekly basis ; and WHEREAS , coverage under the Public Employees Retirement System (PERS ) requires reporting payroll information on the same basis for all employees of the agency covered by PERS ; and WHEREAS , the City Council will be covered under PERS with the payroll period beginning April 12 , 1986 ; and WHEREAS , the PERS amendment also allows the option of coverage for the City Attorney; and WHEREAS, Resolution No . 97-85 designated payment methods which are not appropriate once the PERS exclusion is _removed . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin that effective with the pay period beginning April 12 , 1986 , all employees shall be paid on a bi-weekly basis by a warrant issued by the City Clerk in the following manner : 1 . Regular Payroll a . Each bi-weekly cycle shall include two seven day work weeks . (The normal work week shall be defined in Rule 1I , Section 1 of the Personnel System Rules . ) The payroll reporting period shall be fourteen (14 ) days in length . b . Payment for the 14 day period shall be made on the seventh day following the close of the payroll reporting period. C . If the regular pay day occurs on a holiday, the payment shall be made on the working day prior to the regular pay day _ 2 . Special Provisions for City Attorney a . State PERS law allows the option of PERS coverage for the City Attorney and if membership is selected, payment and reporting must be on the same basis as employees , despite the independent contractor status of these services . b . If the City Attorney elects coverage, payment shall comply with PERS reporting requirements and payment may be pre- issued on a bi-weekly cycle . C . Payment for City Attorney services shall continue to be made on the City ' s General Fund account , due to the provision of these services by an independent contractor . d . All pre-issued payments will be reported to the City Council on the first Warrant Register prepared after the payment is issued. 3 . Payment to Employees Upon Termination a . If any employee leaves employment with the City, they may be paid on the day their employment ends . 4 . Pre-Issuance of Regular Payroll When Employee is on General Leave a . If an employee has received approval to utilize general leave and will not be in attendance on a regular pay date , a paycheck may be pre-issued. b . The issuance shall be at the discretion of the City Clerk and will require two weeks advance notice in writing. C . The check shall not be released prior to the last regular working day prior to the commencement of the employee ' s general leave . BE IT FURTHER RESOLVED that the City Council salary for the period from April 1 , 1986 through April 11 , 1986 shall be prorated prior to the initiation of the bi-weekly system. PASSED, APPROVED AND ADOPTED this 10th day of March , 1986 . AYES : NOES : ABSENT : Mayor ATTEST: City Clerk Page 2 RESOLUTION NO. 97 - 85 A RESOLUTION OF THE CITY COUNCIL (/ OF THE CITY OF DUBLIN -------------------------------------- PRESCRIBING TIME AND METHOD OF PAYING SALARIES AND WAGES AND RESCINDING RESOLUTIONS NO. 61-82 AND 64-84 WHEREAS, the Dublin City Council is desirous of amending Resolutions No. 61-82 and 64-84 which established the time and method of paying salaries and wages to officers and employees; and WHEREAS, due to reporting requirements of the Fair Labor Standards Act a change in the reporting and pay periods will facilitate compliance with federal law. NOW, THEREFORE, BE IT RESOLVED that the provisions of City of Dublin Resolution No. 61-82 and City of Dublin Resolution No. 64-84 shall be rescinded. BE IT FURTHER RESOLVED by the City Council of the City of Dublin that employees shall be paid by a warrant issued by the City Clerk in the following manner: 1. City Council members shall be paid by a warrant issued monthly by the City Clerk. a. The warrant shall be issued on the first of the month covering the service for the prior month. b. If the first of the month falls on a Saturday, the payment shall be made on the preceeding Friday. If the first falls on a Sunday, the payment shall be made on the following business day. 1 • 2. Full-time and part-time employees shall be paid on a bi-weekly basis as follows: a. Each bi-weekly cycle shall include two seven day work weeks. (The normal work week shall be defined in Rule XV-Section 1 of the Personnel System Riffles. ) The payroll reporting period shall be fourteen (14) days in length. b. An exception shall be made to Number 1 above for the first cycle which shall commence October 1, 1985 with payment pursuant to this schedule occuring on October 18, 1985. This payroll will cover the payroll reporting period from October 1 through October 11. C. Payment for the 14 day period shall be made on the seventh day following the close of the payroll reporting period. d. If the regular pay day occurs on a holiday, the payment shall be made on the first working day prior to the regular pay day. 3. If any employee leaves employment with the City, he/she may be paid on the day his/her employment ends. PASSED, APPROVED AND ADOPTED this 9th day of September, 1985. AYES: Councilmembers Hegarty, Jeffery, Moffatt, Vonheeder and Mayor Snyder NOES: None _ ABSENT: None l Mayor �- EST: City Cle K