HomeMy WebLinkAbout12 SECOND READING ORDINANCE 1408Agenda Item 12
Reviewed:
AGENDA REPORT City Manager
Finance Director N/A
MEETING DATE: NOVEMBER 15, 2011
TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER
FROM: PATRICIA ESTRELLA, CITY CLERK SERVICES SUPERVISOR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1408,
AMENDING THE CITY'S CONTRACT WITH THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) TO
PROVIDE A SECOND TIER RETIREMENT PLAN FOR NEW
EMPLOYEES
SUMMARY:
The City has negotiated agreements with all of its bargaining units to provide a second
tier retirement plan for new employees enrolled in a California Public Employees'
Retirement System (CaIPERS) retirement plan (2% @ 60 for Miscellaneous and 2% @
50 for Safety). Adoption of the attached Ordinance is a step in the contract amendment
process specified by CaIPERS.
RECOMMENDATION:
Have second reading by title only and adoption of Ordinance No. 1408 (roll call vote).
FISCAL IMPACT:
Second tier retirement plans offer long-term savings based on lower employer
retirement contributions for employees hired on or after the effective date of
implementation (January 1, 2012). Cost savings will be realized gradually as more
employees become enrolled in the second tier plans and fewer employees remain in the
existing plans. The 2011-12 employer rate for the existing Safety plan (3% @ 50) is
32.170%. According to the CaIPERS amendment actuarial valuation, the 2011-12
employer rate for the second tier Safety plan (2% @ 50) will be 19.169%, a rate that is
approximately 13% lower. The second tier contribution rate will apply only to those
individuals employed by the City of Tustin for the first time in a Safety (sworn Police)
classification on or after the implementation date of January 1, 2012. For the existing
Miscellaneous Plan (2% @ 55), the 2011-12 employer rate is 9.943%. Per CaIPERS,
there will be no immediate employer contribution rate decrease for the second tier plan
(2% @ 60). Decreases in the Miscellaneous employer rate will occur gradually as
employees are hired and added into the second tier plan.
BACKGROUND:
On October 18, 2011, the City Council had first reading by title only and introduction of
the following Ordinance:
ORDINANCE NO. 1408
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY OF TUSTIN AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
atricia Estrella
City Clerk Services Supervisor
ORDINANCE NO. 1408
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY
OF TUSTIN AND THE BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
The City Council of the City of Tustin, California hereby ordains as follows:
Section 1.
That an amendment to the contract between the City Council of the City of Tustin 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 of Tustin is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of the City of Tustin.
Section 3.
The City Clerk shall certify to the passage and adoption of this ordinance and shall
cause the same to be published in the same manner required by law. This ordinance
shall become effective thirty (30) days from and after its passage.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 15th day of November 2011.
JERRY AMANTE
Mayor
ATTEST:
PAMELA STOKER
City Clerk
Ordinance No. 1408
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APPROVED AS TO FORM:
DAVID KENDIG
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Ordinance No. 1408 was duly and
regularly introduced at a regular meeting of the Tustin City Council, held on the 18th day of
October 2011, and was given its second reading, passed, and adopted at a regular
meeting of the City Council held on the 15th day of November 2011 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
City Clerk
Ordinance No. 1408
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