HomeMy WebLinkAbout1999-08-09 City Council (23)of Palo Alto 8
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:
SUBJECT:
AUGUST 9, 1999 CMR:338:99
APPROVAL OF AN AMENDMENT AND RESOLUTION TO THE
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS)
CONTRACT TO ADD THE EXCLUSIONS OF PROJECT
PROFESSIONAL, PROJECT MANAGER, PROJECT TECHNICIAN,
PROJECT ASSISTANT, PROJECT LABORER, LANDSCAPE
MAINTENANCE TRAINEE, LIBRARY PAGE, RECREATION
LEADER, WATER SAFETY INSTRUCTOR/LIFEGUARD, AND
POOL MANAGER FROM MEMBERSHIP IN PERS.
RECOMMENDATION:
Staffrecommends that Council:
Adopt a Resolution of Intention of the Council of the City of Palo Alto to approve an
Amendment to the Contract between the Board of Administration of the Public
Employees’ Retirement System .and the City of Palo Alto (Exclusion of certain hourly
classifications from PERS membership).
Adopt an Ordinance of the Council of the City of Palo Alto authorizing an Amendment
to the Contract between the Council of the City of Palo Alto and the Board of
Administration of the California Public Employees’ System (Exclusion of certain hourly
classifications from PERS membership).
BACKGROUND
For many years, the City of Palo Alto and other contracting public agencies have struggled
with the problem of hours limitation for temporary or seasonal employees. Under PERS
law, if these employees work more than 999 hours, they must be treated as permanent
employees and brought into PERS membership. As a result, PERS contracting agencies,
including the City of Palo Alto, were faced with the choice of either limiting the term of
employment for temporary employees to less than 1,000 hours, or enrolling employees in
CMR:338:99 Page of 3
PERS only to cancel membership and return employee contributions upon termination of
the temporary assignment. City contributions are not returned.
The City of Palo Alto chose to limit temporary employees to less than 1,000 hours per fiscal
year. In some cases, this limitation works well. In other cases the limitation is problematic.
Especially problematic are those situations where seasonal assignments may require 1500
or 1800 hours, or there is a temporary project need which lasts for two or three years, after
which fimding terminates. In these instances the City must terminate temporary employees
before their assignment is completed in order to comply with the 1,000-hour limitation.
Responding to this problem, in 1997 the PERS Board adopted procedures and guidelines
for determining contract exclusions. Factors to be considered include how the position is
funded and source of funding; whether the position defines a group of employees which
share some common characteristics; whether the position is in an established career path or
promotional ladder for permanent employment; and if the position limits incumbent
employees from remaining for a long period of time.
DISCUSSION
In accordance with the PERS procedures and guidelines, staff is proposing a contract
amendment under Government Code 20942 to provide for exclusion of the following ten
classifications: Project Professional, Project Manager, Project Technician, Project Assistant,
Project Laborer, Landscape Maintenance Trainee, Library Page, Recreation Leader, Water
Safety Instructor/Lifeguard, and Pool Manager. Each of these classification descriptions
has been reviewed by PERS and found to comply with Board guidelines.
In a separate Council action (CMR:340:99), the Compensation Plan for Hourly Employees
will be amended to add the ten exempted classifications, and provide for a five-year
employment limitation to replace the 1,000 hour limitation for incumbents of these
exempted classes. The 1,000 hour limitation will remain in effect for all other Hourly
classifications.
RESOURCE IMPACT
The contract exclusion amendment will simplify administration procedures and reduce
internal administrative costs associated with the employment of hourly employees.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policy.
CMR:338:99 Page of 3
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
1. Resolution
2. Ordinance
DEPARTMENTPREPARED BY:HEAD:Leonard jAyZUCker/~anager C @OU~S~Of Employeei~.____...~.~___Belefits
Director o~~~. ~esou~~
CITY MANAGER APPROVAL:
C i~M~anLaEgerM~dC
CMR:338:99 Page 3 of 3
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance wlth Section 7507 of
the Government Code the future annual costs as determined by the
System Actuary and/or the increase in retirement benefits have been
made public at a public meeting of the City Counci! of the City of
Palo Alto on August 9, 1999 which is at least two weeks prior to
the adoption of the Ordinance of the Council of the City of Palo
Alto Authorizing an Amendment to Contract between the City of Palo
Alto and the Board of Administration of the Public Employees’
Retirement System (Exclusion of Certain Hourly Classifications from
PERS Membership).
Date:
Director of Human Resources
990804 sdl 0032213
CERTIFICATION OF GOVERNING BODY’S ACTION
I hereby certify that the foregoing 1s a true and correct
copy of the Resolution of Intention of the Council of the City of
Palo Alto to Approve an Amendment to Contract between the Board of
Administration of the Public Employees’ Retirement System and the
City of Palo Alto (Exclusion of Certain Hourly Classifications for
PERS Membership) adopted by the City Council of the City of Palo
Alto on August 9, 1999.
Date:
City Clerk
990804 sdl 0032214
RESOLUTION NO.
RESOLUTION OF INTENTION OF THE COUNCIL OF THE CITY
OF PALO ALTO TO APPROVE AN AMENDMENT’ TO CONTP~ACT
BETWEEN THE BOARD OF ADMINISTP~ATION OFfTHE PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY OF PALO
ALTO (EXCLUSION OF CERTAIN HOURLY CLASSIFICATIONS
FROM PERS MEMBERSHIP)
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 add the exclusions of "Project Professional,
Project Manager, Project Technician, Project
Assistant, Project Laborer, Landscape Maintenance
Trainee, Library Page, Recreation Leader, Water
Safety Instructor or Lifeguard, and Pool Manager"
hired on or after the effective date of this
amendment to contract.
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION !. The City Council of the City of Palo Alto does
hereby give notice of intention to approve an amendment to the
contract between the City of Palo Alto 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.
//
//
//
//
//
!
990804 sdl 0032196
SECTION 2. The City Council finds that this is not a
project under the California Environmenta! Quality Act,and
therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of Administrative
Services
Director of Human Resources
2
990804 sdl 0032196
California
Public _Employees’ Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Be~een the
Board of Administration
Cat~ornia Public Employees’ Retirement System
and the
City Counc~
City of Palo ~to
The Board of Administration, California Public Employees’ Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
January 1, 1942, and witnessed March 9, 1942, and as amended effective January 1,
1948, April 1, 1949, January 1, 1952, July 1, 1954, February 1, 1956, November 1,
1964, September 23, 1968, December 14, 1970, February 1, 1974, July 8, 1974,
January 5, 1975, April 1, 1975, September 11, 1977, July 1, 1979, February 21, 1981,
July 11, 1981, December 12, 1981, June 12, 1982, September 17, 1983, November 12,
1983, February 11, 1991, October 15, 1994, December 10, 1994, February 27, 1996,
October 15, 1998, and January 1, 1999 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective January 1, 1999, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
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 55 for local miscellaneous members and age 50 for local safety
members.
Public Agency shall participate in the Public Employees’ Retirement
System from and after January 1, 1942 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 contracting
agency.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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.Local Fire Fighters (herein referred to as local safety members);
b.Local Police Officers (herein referred to as local safety members);
c.Employees other than local safety members (herein referred to as local
miscellaneous members).
In addition to the classes of employees excluded from membership by said
not becomeRetirement Law, the following classes of employees shall
members of said Retirement System:
a=Project Professional; Project Manager; Project Technician;
Project Assistant; Project Laborer; Landscape Maintenance
Trainee; Library Page; Recreation Leader; Water Safety
InstructorlLifeguard; and Pool Manager hired on or after the
effective date of this amendment to contract.
The percentage 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 21354 of said Retirement Law (2% at
age 55 Full).
The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
Public Agency elected and elects to be subject to the following optional
provisions:
a.Section 21571 (Basic Level of 1959 Survivor Benefits).
Section 21222.1 (Special 5% Increase-1970). Legislation repealed
said Section effective January 1, 1980.
Section 21222.2 (Special 5% Increase-1971). Legislation repealed
said Section effective January 1, 1980.
Section 21319 (Special 15% Increase for Local Miscellaneous
Members).
Section 21325 (Special 3% - 15% Increase) for or on behalf of those
local miscellaneous members and local safety members who retired or
died prior to January 1, 1974.
o
10.
Section 20042
Section 21317
Section 21326
miscellaneous
prior to July 1,
(One-Year Final Compensation).
(Special 15% Increase for Local Safety Members).
(Special 1%-7% Increase) for or on behalf of those local
members and local safety members who retired or died
1974.
Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
Section 20692 (Employer Paid Member Contributions Converted to
Payrate During the Final Compensation Period) for local miscellaneous
members and local safety members in the following groups:
Local miscellaneous members who are Management and Confidential
employees;
Local police members who are Management and Confidential
employees;
Local fire members who are Management and Confidential employees;
Local miscellaneous members represented by Local 715, SEIU, AFL-
CIO, and CLC; and
Local police members represented by the Palo Alto Peace Officers’
Association.
Public Agency, in accordance with Government Code Section 20790, ceased
to be an "employee’ for purposes of Section 20834 effective on September
11, 1977. Accumulated contributions of Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as provided
in Government Code Section 20834.
Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
Public Agency shall also contribute to said Retirement System as follows:
so A reasonable amount, as fixed by the Board, payable in one
installment 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..
11.
A reasonable amount, as fixed by the Board, payable in one
installment 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.
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.
12.Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen 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
BOARD OF ADMINISTRATION / )’
PUBLIC EMPLOYEES’ RETIREME’,N~" SYSTEM
BY r
KENNETH W. MARZION, (3FltEF
ACTUARIAL & EMPLOY~:I SERVICES DIVISION
PUBLIC EMPLOYEES’ I:~IETIREMENT SYSTEM
day of ,19~
CITY COUNCIL
OF THE
CITY OF PALO ALTO
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING AN AMENDMENT TO CONTRACT BETWEEN THE
CITY OF PALO ALTO AND THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
(EXCLUSION OF CERTAIN HOURLY CLASSIFICATIONS FROM
PERS MEMBERSHIP)
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTIQN I. The City Council hereby authorizes an amendment
to the Contract between the City Council of the City of Palo Alto
and the Board of Administration, California Public Employees’
Retirement System, 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 of Palo Alto is hereby
authorized and directed to execute said amendment for and on behalf
of the City of Palo Alto.
SECTION 3. The City Council finds that this is not a
project under the California Environmental Quality Act, and
therefore, no environmental impact assessment is necessary.
SECTION 4. This ordinance shall be effective on the
thirty-first day after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT :
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of Administrative
Services
Director of Human Resources
990804 sdl 0032197
EXHIBIT
California
Public Employees’ Retirement System
AMENDMENT TO CONTRACT
B~tween ~h~
Board of Administration
Ca]ifornia Pub]ic Employees’ Retirement System
and ,he
City Council
City of Palo ~Mto
The Board of Administration, California Public Employees’ Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
January 1, 1942, and witnessed March 9, 1942, and as amended effective January 1,
1948, April 1, 1949, January 1, 1952, July 1, 1954, February 1, 1956, November 1,
1964, September 23, 1968, December 14, 1970, February 1, 1974, July 8, 1974,
January 5, 1975, April 1, 1975, September 11, 1977, July 1, 1979, February 21, 1981,
July 11, 1981, December 12, 1981, June 12, 1982, September 17, 1983, November 12,
1983, February 11, 1991, October 15, 1994, December 10, 1994, February 27, 1996,
October 15, 1998, and January 1, 1999 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective January 1, 1999, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
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 55 for local miscellaneous members and age 50 for local safety
members.
Public Agency shall participate in the Public Employees’ Retirement
System from and after January 1, 1942 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 contracting
agency.
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.Local Fire Fighters (herein referred to as local safety members);
b.Local Police Officers (herein referred to as local safety members);
c.Employees other than local safety members (herein referred to as local
miscellaneous members).
In addition to the classes of employees excluded from membership by said
not becomeRetirement Law, the following classes of employees shall
members of said Retirement System:
a=Project Professional; Project Manager; Project Technician;
Project Assistant; Project Laborer; Landscape Maintenance
Trainee; Library Page; Recreation Leader; Water Safety
InstructorlLifeguard; and Pool Manager hired on or after the
effective date of this amendment to contract.
The percentage 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 21354 of said Retirement Law (2% at
age 55 Full).
The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
Public Agency elected and elects to be subject to the following
provisions:
ao
optional
Section 21571 (Basic Level of 1959 Survivor Benefits).
b.Section 21222.1 (Special 5% Increase-1970). Legislation repealed
said Section effective January 1, 1980.
Co Section 21222.2 (Special 5% Increase-1971). Legislation repealed
said Section effective January 1, 1980.
Section 21319 (Special 15% Increase for Local Miscellaneous
Members).
Section 21325 (Special 3% - 15% Increase) for or on behalf of those
local miscellaneous members and local safety members who retired or
died prior to January 1, 1974.
b
o
10.
f.Section 20042 (One-Year Final Compensation).
Section 21317
Section 21326
miscellaneous
prior to July 1,
(Special 15% Increase foe Local Safety Members).
(Special 1%-7% Increase) for or on behalf of those local
members and local safety members who retired or died
1974.
Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
Section 20692 (Employer Paid Member Contributions Converted to
Payrate During the Final Compensation Period) for local miscellaneous
members and local safety members in the following groups:
Local miscellaneous members who are Management and Confidential
employees;
Local police members who are Management and Confidential
employees;
Local fire members who are Management and Confidential employees;
Local miscellaneous members represented by Local 715, SEIU, AFL-
CIO, and CLC; and
Local police members represented by the Palo Alto Peace Officers’
Association.
Public Agency, in accordance with Government Code Section 20790, ceased
to be an "employer" for purposes of Section 20834 effective on September
11, 1977. Accumulated contributions of Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as provided
in Government Code Section 20834.
Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
Public Agency shall also contribute to said Retirement System as follows:
A reasonable amount, as fixed by the Board, payable in one
installment 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.
PLEASE DO t, iOT SIGN "EXHIB . 3
11.
bo A reasonable amount, as fixed by the Board, payable in one
installment 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.
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.
12.Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen 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
BOARD OF ADMINISTRATION "~
PUBLIC EMPLOYEES’ RETIREMENT_~YSTEM
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
day of ,19~
CITY COUNCIL
OF THE
CITY OF PALO ALTO
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)