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CITY COUNCIL AGENDA ITEM NO. 2

Meeting Date: September 9, 2003

Subject/Title: Adopt and waive second reading of Ordinance 755 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
Waive the second reading and adopt Ordinance 755.

PREVIOUS ACTION
At the meeting on August 12, 2003, the City Council waived the first reading and introduced Ordinance No. 755, which provided 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.

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.

ATTACHMENT
Ordinance No. 755
CalPERS Amendment to Contract

ORDINANCE NO. 755

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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