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CITY COUNCIL AGENDA ITEM NO. 12

Meeting Date: August 12, 2003

Subject/Title: Resolution of Intention and first reading of an Ordinance of the City Council of the City of Brentwood authorizing an amendment to the contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Brentwood, as provided in approved bargaining unit agreements

Submitted by: John Stevenson, City Manager

Approved by: John Stevenson, City Manager

RECOMMENDATION
Adopt a resolution, which provides for the notice of intention to approve an amendment, and adopt an ordinance to approve amendment of the contract between the City of Brentwood and the Board of Administration of the California Public Employees’ System (CalPERS) as agreed during the meet and confer process.

PREVIOUS ACTION
June 10, 2003, the City Council approved Resolution 2885 ratifying the amendments of the Memorandum of Understanding (MOU) between the City and Brentwood Police Officers’ Association (BPOA) for fiscal years 2003/04 – 2007/08. The amended MOU document includes approval to amend the contract with CalPERS to provide a maximum 5% Annual Cost-of-Living Allowance Increase for safety members. June 24, 2003, the City Council adopted Ordinance 745 authorizing an amendment to the contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Brentwood; and Resolution 2896 authorizing the Finance Director to facilitate internal loans necessary to pay the unfunded liability for contract amendments provided in the 2003/04 – 2007/08 approved MOU documents.

BACKGROUND
This contract amendment is the final step to implement all items included in the approved MOU document for the BPOA (approved June 10, 2003). The contract amendment for the BPOA is presented to the Council for approval at this time, as CalPERS does not allow more than one contract amendment to be in process at the same time. The contract amendment approved by the Council on June 24, 2003 that affects non-sworn employees is now complete, thus allowing this contract amendment to proceed.

Through the meet and confer process, the bargaining unit that contains employees defined by CalPERS as “safety” members requested that the City amend the CalPERS retirement benefit to include the 5% Annual Cost-of-Living Allowance Increase for safety members.

The 5% Annual Cost-of-Living Allowance Increase for safety members will result in the following changes: The PVB which represents the total dollars needed today to fund future benefits for current members of the plan, results in an estimated change in the amount of $1,749,871. The change in the Unfunded Accrued Liability is estimated at $951,758. A lump sum payment of $1,275,342 will be made to cover the Unfunded Accrued Liability, including contributions and interest that will have been reported to CalPERS from July 1, 2002 through June 30, 2003.

FISCAL IMPACT
This is the final step in completing the five-year agreements reached with the bargaining unit in June of this year and approved by Council in June of this year. These costs have been included in the approved budget. Total costs for Fiscal Year 2003/04 are estimated at $2,648,447 including the lump sum payment of $1,275,342. By paying the Unfunded Accrued Liability, the City will save $237,967 in interest payments.

RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF BRENTWOOD

WHEREAS, the Public Employees’ Retirement Law permits the participation of public agencies and their employees in the Public Employees’ Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and

WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and

WHEREAS, the following is a statement of the proposed change:

To provide Section 21335 (5% Annual Cost-of-Living
Allowance, Base Year 2001) for local police members only.

NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees’ Retirement System, a copy of said amendment being attached hereto, as an “Exhibit” and by this reference made a part hereof.

By:
Presiding Officer

Title

Date adopted and approved

(Amendment)
CON-302 (Rev. 4/96)
 

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN CITY OF BRENTWOOD AND THE BOARD OF AMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM.

THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES ORDAIN AS FOLLOWS:

Section 1. That an amendment to the contract between the City Council of the City of Brentwood and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

Section 2. The Mayor of the City Council of the City of Brentwood is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency.

Section 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 30 days from the passage thereof shall be published at least once in the Brentwood Press, a newspaper of general circulation, published and circulated in Contra Costa County and thenceforth and thereafter the same shall be in full force and effect.

The foregoing Ordinance was introduced, with full reading waived, by the City Council of the City of Brentwood.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the September 9, 2003, by the following vote:

 

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