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August 4, 1994
THE HONO~~LE CITY COUNCIL
PalQ Alto, California
Members of the Council~
Report. in Brief
On July 25, Council approved an agreement with employees
represented by the Service Employees' International Union (SEIU) ~
l,ocal 715 for fiscal years 1994/5 and 1995/6 (Cr1R:385:94). Pi.-\rt
of that agreement provided for amendment of the City agreement
with the Public Employees' Retirement System {PERS} to provide
benefits under Govp.rnment Code Section 20615.5. "Reporting the
Vi.11ue of Employer-paid Member Contt"ibutions as Compensation in
B\I1ployee9~ Final Compensation Period."
Attached to this report are a resolution i:ind ordinance necessary
to amend the PERS contract. Under SB 53, it is also necessary to
report the CODt of the contract amendment at two consecutive
Council meet.ings. Accordingly, the costs will again be reported
at the next l"egular council meeting.
The actuarial valuation for adding Section 20615.5, aD calculated
by PEP~. indicat~s an increase of 1.45 percent in the employer
contribution rate for SEIU-represented employees. The employer
cont~ibution rate will increase from 6.047 percent to 7.497
percent of PBRS defined payroll. The annual cost is $343,000, or
1 percent of the SEIU salary and benefit payroll.
Recnmpdationa
Staff recommends that the Council take the following actiong
which aI"e required to amend the PERS agreement.
1. Adopt a Resolution of Intent.ion of the Council of the
City of Paio Alto to Approve an Amendment to the
Cont.l"act between the Board of Administration of the
Publ ic Employees' Retil."ement System and the City of
Palo Alto 'SEIU); and
. .., ..
Page Two
2. Adopt an Ordinance of the Council of the City of Palo.
Alto Autho:dziing an Amendment to the Contract-betwee..:.
the -City Council of the City of palo Alto and the Boar~i
of Administration of the California Public Employees'
Retirement System (SEIU).
Respectfully submitted,
~~.~,---
JA,{ C. ROUNDS
Director of Human ResourceB
~~~ ~yt-e ~an!!gel':
Attachments:
CMR,407,94
Resolut ion and Ordinance re Public Employees'
Retirer.:ent System
RESOLUTION NO.
RlISOLU'I'ION OF INTBNTION" OF TI{B COliNCl L OF THB CITY
01' PALO AL7Q 7Q APPROVE AN AMIDIDMBNT TO CONTRACT
BB'l'WBEN nm BOARD OF ADI'!lNISTRATION OF THI1 PUBl.IC
BMl>LOYBES' RETI~ SYSTBH AND THE CITY OF PALO
ALTO (SBIU)
WP.EREAS~ the PUblic Employees' Retire~nt Law permits the
participation of public agencies and their employees in tho Public
Employees' Retirement System by the execution Of a contract, and
eets forth tile procedure by which said publ ic agencies "",y elect to
subject themselves and their employees to amendr..,nt to said l.aw;
and
WHERBAS, one of the atepa in the procedures to amend this
contract is the adoption b}' the governing body of the public agf'ncy
of a resolut.ion giving notice of its intention to approve an
amendment to said contract. which !'"eaolut ion ohall contain a
EiUItll"'Jary of the chdnge propoBetl in said contract., and
change:
ifflB RBJ\.S, the following is a staterr.ent of the proposed
To provide Govenunent Code sect ion 20615.5
(Reporting the value of employer-paid rr.ember
contributions as compensation during the final
compensation period) for employeeB represented by
Local 715, S&IU, AFL·CIO, CLC of the City'S
miscellaneous members.
NOW, THEREFO~B, the Council of the City of Palo Alto does
ABSOLVE as follows:
SECTION 1. The City Council of the City of Palo Alto does
hereby give notice of intention to approve an a.mendment to the
contract between the City of Palo Alto and the Board of
Admdnistration of the Public Employees' Retirement System, a copy
of said amendment:. being attached hereto, as an ·&xhibit" and by
this reference made a part hereof.
SBCTION 2. The City Council finds that this 10 not a
project under the California Environmental Quality Act, and
t,herefore, no environznental impact aSBessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSru.'T:
J\BSTBNTIONS:
1
.~ __ .. __ .......... _ ... _C'"~. -'~~~---'--~'---'-"'.:----
..
\
ATTBST. APPROVED •
. City Clerk Mayor
AP1>ROVI!D lIS TO PORM.
City Manager
Senior Asst. city Attorney
Director of P~"~nce
DIrector of Human Resources
2
AMENDMBliT TO CO~"I'RACT
IjIlTWB EN THB
BOARD OF ADMINISTRATION
OP TIfB
PUBLIC EMPLOYBES' RETIREMENT SYSTEM
AM> T}jB
CITY COUNCIl. OF TIfB CITY OF PALO AI.TO
EXHIBIT
The Board of Admioietration, Public Employees' Retirement System.
hereinafter referred to as -Board" and the City Council of the City
of Palo Alto, hereinafter referred to as ·Public Agency", having
entered"into a contract which provides for participation of Public
Agency in said S}~stern, Board and Public Agency hereby agree as
follows:
A. Paragraph B of the cuz:rent contract is renum.bered paragraph C.
B. Paragraph B is added to read as follows:
Public Agency elects to be subject to Section 20615
(Reporting the value of employer paid memher
contributions as compensation during the. final
compensation period) for:
_~er Category
Local miBcellaneous
employees represented
by Local 715, SHIU,
AFL-CIO, CLC
Percent Increase
in...J::QropensatioD
C. This amendment shall be effective on the __ daY of ____ _
1994.
BOARD OF ADMINISTRATION
PUBLIC llMPWYEE'S RETIREMENT SYSTEM
By:
CHIEF, CONTRACT SERVICE.S DIVISION
PUBLIC EMPLOYEBS' RETIREMENT
SYSTEM
CITY CCUNCrL OF THE
CITI' OF PALO AI.TO
By:
Mayor
Witness Date
Attest;
Clerk
ORDINANCE NO.
ORDINANCI! OF 'I'IIE COUNCIL OF THE CITY OF PALO ALTO
AUTI!ORI Z rm AN AMBNDMBNT TO THE CONTRACT BBTHEI!N
THE CITY COUNCIL OF THE CITY OF PALO ALTO AND THI!
BOAAD OF ADMINISTRATION OF THE CALIFOlrnIA PUB!.IC
SMPLOYBB.S· RBTIRBMBNT SYSTEM (SEIU)
The Council of the City of Palo A.Ho does ORDAIN as
tollows,
SECT!ON 1, An amendment to the Contract between the City
Council of th" City of Palo Alto and the Board of Administration of
the Publi~ Employees' Retirement System is hereby authorized, in a
fonn substantially similar to "'Bxhtbit A". attached hereto and
incor,porated he~ein by reference.
~QT_~. The Mayor of the City of Palo Alto is hereby
author!zed l empowered, and directed to execute said am~ndment for
and on beh«lt of the City, and to sign a IICertificate of
Compliance,· in the form shown as Exhibit -B", attached hereto and
incorporated herein by reference.
~J~-1. Adoption of this ordinance does not constitute
a project for the purposes of the California Environmental Quality
Act tfOCSQA·).
SECtION 4. This ordinance shall be effective on the
thtrty-f!rst da.y after the date of its adoption.
INTRODUCED:
PASSED,
II'iliS:
NOES :
ABSENT:
ABSTENTIONS,
ATl'l!ST,
City Clerk
APPROVRD AS TO PORM:
senior ABst. City Attorney
APPROVRD:
Mayor
City Manager
o ;::-i"r:-::,,-=c t;:-:o"'r:-o:-"f~"'PiC=n-=an:::-:c=-=e-----
Director of Human ResQur'ces--
l\MBNDMRN'l' TO CONTRACT
BB'Il<B[>N THE
BOARD OF ADMINISTRAT!ON
OF THE
PUBLIC BMPLOYBSS' RBTIR!lMENT SYSTEM
AND THE
CITY COUNCIL OF THB CITY O~ PALO ALTO
The Board of AdmJnietration f ~bl1c Employeee l Retirement System,
her.i .... rter referr:ed to as 'Board' and tile City council of the City
of Palo Alto. hereinafter referred to as -Public Agency~, having
eneured into a contract wnich provides f~r partieipation of Public
Ag9DIZY in said System, Board and Public Agency hereby agree as
foIl 0"'" :
A. Paragraph 8 of the curr.er .. t contract is renumbered paragraph c.
B. Paragraph B is added to re~d as foll~wB:
Public Agency elects to be flubject t.o Section 20615
(Reporting the value of eroployer paid member
contributiona as cornpen!'lation during the final
coopensatioll period) for:
Member Category
Local miscellaneous
emplo}'E)es represented
by Local 715, SEIU 1
AFL-em, CLC
Percent Increase
in Qompensa_li2n...
7\
c. This ameuWr.4!'nt shall be effective on the __ day of
1994.
BOARD OF ... 'OHIlUS TRA TION
P(]JlLIC BMPLO'lBE'S RB'I'IREMENT SYSTEM
lIy: CH~'IB"F~, CONTRACT SERVICES DIVISION
PUB['IC BMPLOYERS' RRTIRRloffiN'l'
SYSTEM
0( ".
CITY COUNCIL 01' THE
CITY 01' PAW ALTO
By!==:----Mayor
Witness Date
Attest:
BXHIBIT B
CBRTIFICATION OF COMPLIANC8
I hereby certify that,
1. In accordance with Government Code .ections 7507 and 20HS (cJ •
the future 'annual costa as determined by PRRS have been made
public at two conaecutive pubHc "",etiogo of the City Council
of the City of palo Alto at least two v.eka prior to tile
adoption of the final ordinance of the contract. aznendment;
2:. In accordance with Government. Code eectio:Q 20460 1 the City
Council adopted a resolution of intentiQll to i\pprove the
contract amendment, followed at least 20 days thereafter by
the adoption of a final ordinance approYing the contract
amendment;
3. The labor policy or agreement is consistent and in conformity
with Gove~nt Code section 20615.5
,1 certify that the foregoing is true and accurate.
CITY OF PALO ALTO
Date: By'''''=-______ _
MAYOR