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FROM,
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7 City of Palo Alto
City Manager's Report
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HONORABL.E ern' COUNCIL
CITY MANAGER Di:PARnrE!\,: Human R~
AGEND.-\ DATE: October 17, 1994 CMR: 471:94
SUBJECT:
jlliOlJEST
Resolution of lntentioo and Ordin;once to Amend t~ Cootra<1 with
!be Publk Empl6y~' Retinmelll S)·stem lPERS), Palo Alto Peace
OfTk .... ' A>sociatioo (I' APO A)
On Octobci 11, 199cl, t11t;; Ciry (\:">\..if,'.:.ii :-rrr""t>d an dfT<.'·:fL:l.'nt wirh lh: Pal,> Alto Pellet'
Officers' Asscdation (PAPOA) for f1~.":J.l ~e.:.;''-199~J;:5 ~r.5 lQ'_':"_~'-9{) P;'r1 (:r Ihl:,.
agreement pwy\ckcl fM i.tV: a!n;;['.,jrr,::'1t (11' ci-it: C\ty 2.:::rr;<':;l·:';,1.~ wllh P!:.kS t .. ~ j:1rc)\'id.: r-,·..:-n.:Ob
l..I1lder Govt:mmenr Cod~ Se--::{Wil 20!i 15. 5, -Rt'f'.'T1.in; Uk' V ..l.iUr: tit Frl!pluY<.';"-Pald ~kmbeT
Contt-ibutions as Compens;lliO!~ in Ll.e Employ~~~' Fln...>.\ C('rr1T't"rt.::.:;n;lm P('Tir"j." At!ach~1
to this report are a resolution and ordinam:e r.e,es~r)" tc, amend t.he-PERS r.:·nmract. Ujt,.1~r
SB 53. we are also required to report tho;." C051 of tf'r{'" contr'dct arntndm':D: ;it two (ons.c-..:-utive
Council meetings. TItis report indude ... the ~e':-und reportlng •. )f tile U\q .)f the (Ontraci
amendment. The first rep..::rting of Lht' en'l!::; \\a~ rnade nn lklilhei 11. IS'9-1.
&r£Q'~AT!QNS
This report recorrunends Counei1 t.a}.:e the foHowing actions. wruch are requi;-ed to ~J1eoo tM
PERS agreemenl:
1. Adopt a Resolution of Intention of the Coon:il of me City of Paio ,-\ito EO Approve
an Amendment to the Contr3{,! be ......... e-en the Board of Adminl;'Iration of the Publk
Employ"",,' R<tiremem System a,'l<! tl", Cit)" of Palo Alto (Polict l'on·Managemenlj.
2. Adopt an Ordinanc-.e of the Council of The Ciry of P';;lo Alto Authorizing an
Amendment to the C'ontraci betWet"D t.Me Ci[), Coun-;.:il of the ellY of PaJo Alw and
the Board of Admlnistration of the CaJiform, Public Emp!oyees' Retirement System
(pAPOA).
l'QI,ICY IMPLICATIONS
This agreement dots ~lOl represent an}' chang.f: tCI ('xi~t;ng pnkit.'~_
·-;.",.-"'= •• --.. --.--.-~~" .
!l;~ SUMMARy
Part of !he agreement between the City of Palo Alto a!Xi PAPOA was to amend the City"
contract with PERS to provide "Report"'. lbe Value of Employer-Pa,d Member
Contributions (EPMC) alii Compensation in the Employee'.'i Final CompeIL'-J.tion Period"
(Govetnment Code Section 2(6155).
This amendment is required under SIl 53 and will allow the City of Palo Alto to <Mt;nue
the bargained practice which aHow~ employees (0 com'{:rt: 111c employer-p.aid member
{employee) contribution to salary for the final II months. prior to rellreme-nt on a pre-funded
basis after July 1, 1994.
BS.CALJMPACI
The actuarial valuation for {'ominuing the EPMC helll!fil, as cdkuL.ikd h~ PERS, in .... 1r.:J(t"
.an Lncrease of 2 . .508 ptrwnt i.n the employer coniributior. l~(t! tur rtpre~enle.:1 tmph}yt.·':~
The employer contribution rate will iricre.a~e from 1 L535 pei'::Cllt lu 14 04."-r":r,.'cllt uf
PERS defined payroll. The ar.m.1.al cost is: $]18,022, or i ,6 r,.eH,'ent of the "atar:\ :,r:J t"",'T,t'i"1l
payrolL
Fundmg for the two-year contract is provided ln the 1m-95 Budge! J.nJ will tl(' ir,d~d("d
in the Proposed 1995-96 Budget.
EN"lROj'o,'MJlJ'J_'T AL !~S~S.sMENI
This is not a project for pUl1A')ses of Lhe California EnvironmemaJ Quahl)' A'::L
AITACH~IEI)'TS
1. ReS<J\UtiOll of Intention
2. Ordinance Authorizing Amendment to the Contract between the City and PERS
PREPARED BY: Leonard Zucker
(f\,
: )'1
DEPARTMENT HEAD REVIEW: ___ --L'-A-/ C 12_~,,-__
CITY MANAGER APPROV AL:
CMR:4J1:94
JAY_ROUNDS
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JUNE FLEMING
dtyManager
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RBSOLUTION NO.
RESO"LlITION OJ? INTENTION OF THE COUNCIL OF THE CITY
OF PALO ALTO TO APPROVE AN AMENDMENT TO CONTRACT
BETIiEEN TRll BOARD OF ADMINISTRknON OF T!ffi PUBLIC
EKPLOYEES' RETIREMENT ~YSTEM AND THE CITY OF PALO
ALTO (POLICE NON-MANAGEMENT)
WHEREAS, the ?U.blic Employees' Retire."1lent Law permits the
participation of public agencies and their employees in the Public
Employees' Retirement System by the executi.on of a contract, and
sets forth the pror::edure by which said public agencies may elect to
subject themselves and their employees to amendment to said Law;
and
WHEREAS, one of the steps in t.he pro'Zi<;cures to arr.end this
contract is the adolJtion by the governing body of the public agency
of a Tesolutior~ giving not.ice of ita intention to appro~'/c an
amendment to said contract, which resulution shall contain a
sun-.roilry of the change proposed in said contract.; and
change:
WHERRAS, the follolo,ring is a statement of the pl.·opc~:ed
To PJ~ovide Gcvernmellt Code section 20615.:;
(Discontinuing employer paid rr,ember COl1trj but ions
during the final co,npensation period and
increasing me..-rnbers· pay rate) tor employe.es
represented by the Palo Altc Peace Officers'
Association of the City's safety mel1Wers.
NOW, THEREFORE, the Council of the City of palo Alto does
RESOLVE as follows:
~~. The City Council of the City of Palo AltO does
here.by give notice of intention to approve an amendment to the
contract between the City of Palo Alto and the Board of
Adncinistration of the Public Employees' Retirement System, a copy
of said amendment being attached hereto, as an ~~~ibit~ and by
this reference made a part hereof.
SECTION 2. The City Council finds that this is not a
project under the California EnviI·onmental Quality Act, and
therefore, no enviroI"'.mental impact aSS€S:3ment is necessary.
INTRODUCED AND PASSED,
AYES:
NOES:
ABSENT:
ABSTENT IONS:
1
9410]1 mjp 00310311
.... ,
' .. ,.."
.,,,",,
\ ;,
A1'TF.ST: APPROVED:
City Clerk
APPROVED AS TO FORM:
Ci ty Manager
senior Asst. City Attorney
Dire:ctor of Finance
2
AMID';u.v.s..",,'T TO COhlRr'i.C1'
BE"NEEJ~ T::OiE
Br.)ARD OF ruJMIUIST'RATJON
0;' TI;P
P';JBLIC ~..PL0YbES' ~E:'Tl?EMENT SYSTEM
ru,,"D THE
CITY CO,[JNCIL Q;:' THE CIT'Y OF PALO ALTO
The Board of A.dv.J.!1~;'Itration, t'ublic Employees' Retirement
System, herE'inaiter refe-rred. to a::; ·:q~ard" and the City COl~ncil at
the City of Palo P.lto, h~reinatter referrl}d to as "Public .M.gency·,
ha'[ing .entered. int~ a c:ont:.-act. .... hicr, provides tor p3.rticiE'3.tion of
htblic Ago?n.:::y in s.;::.id Syste.":1, ?-:-a:-d 2.ri:::\ h.lblic Agency hereby agree
as fol::"",)"s~
I:'<.'h::'~::.: .;3-e''.r:·~: c:l":':-:;~ r:,~' be subject t..o Section
206::' S. S ~i)i::.~,::-,:,:n: i.I11J~ i'.g ",,~c.p}.oyer-pa:.id ':',2IrLl.:c-!
CO.l::ri·c.',l';;.iol:'.' LhrirJJ U,'2 tint:tl cCT::;ern.'3.tifJn perio:1
ar,j i;]cn:-':i~ir';J ;:-.o;o;-.. ;b;~rs' pay ro:te) ~Gr:
Percent Increase
:ie..;T'J;;.~ .. !,: •. .J:ll..e:SQn' in C.Q.~.~.lJ.~;l...t..iQlL
Local /71i5cel}3Ih~w~5 7\:
e.rnployE'es rep!'(~senteu
by Loc3.1 115, SEli~,
Ar"L·C!O, CLC
!..o~.al misc.ellaneo'.l9 7\
employees in the
loI'..anaqement and Con(i-
dential group
~Loca.l Police" e.roployees 9\
in ~he Management and
Confidential group
"Local Fi.re" employees 9t
in the Mallageme.nt a!1d
Confidential group
=Loca1 Police-employ,*"s 9t-
reprea~nted by th~ Palo
Alto Pear.e Ottice~s'
Associauon
1
B. This amendment shall be eficctiv€" on thA " __ ~ ___ ct.y
of 1994.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEE'S RETI~EMENT SYSTEM
By:
"Ch;;:;"1ir::e;;f',-rC;:;o-;;n;:tC";r:;a;";c"t"""S"e;;";:rv;-;<i-::c es -liTv IS-ion
Publ ic Employees' Ret i re.-nen t.
System
2
CIty ("O'UNC'I[, 0:: THE
CIYY OF ~AL(' ALTO
5y: ________ ~ _____ _
to'.ayor
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ORDWANCE NO,
ORDINANCE OF THE COUNCIL OF TR"-CITY OF PAJ.O ALTO
AUTHOR! Z ING AN AMENDMENT TO THE CONTRACT BE'T,.'ERU
THR CITY COUNCIL OF THE CIT'! OF PALO ALTO AND THE
BOARD OF AD1UNISTRATION OF THE Cr'\LLFORNIA PUBLIC
EMPLOYEES" RETIREMENT SYSTEM (PAPOA)
The Cou . .-'1cil of the City of Pali.l Alto does ORDAIN a3
follow.9!
~J~CTION 1. An amen.dment to the Contract between the City
Council of the City of palo Alto and the Bca:rd of Adrnir:.ist:ra.tion af
the Public Rmployees' Retirement System is: hereby authorized, in <l
fonn substantially similar to !IExhibit A~ 1 attached h~reto and
incorporated herein by reference.
SECTJ_QN :2 < The l-1ayor of the City ot Palo Alto ,L .. hereby
S'.uthorized, e'''''powered, and directed to execute saiS amen:j."!",2!lt for
and (,m behalf of the City, and to sign a "CeLt} fiC."' .. tr:: of.
Compliance," in the fc,:::m sho'i'"rn as Exhibit ~B", o.tc'lched hereto and
ir:corporated herein by re[el'ence.
~£C:1'_:(m.LJ., Adoption of t:hi8 ordin.:>nce does !lOt com~titlJte
a pr-njeci.: for Lhe purposes of ttle California Envirof'.mental (iU,l:li ty
Act {~CEQ;;'1).
SECTII'N 4. This ordinance srlall be et fective on t.he
thirty-first ctay after the date of its adoption.
iNTRODUCED ;
>'ASSED:
AYBS:
NOES:
IUlSENT:
ABSTRNTIONS:
.It'I''I'BST: APPROVED,
City Clerk
APPROVED AS TO FORM:
Ci cy Manager--------~--
Director of Finance
-Di-rec-t6-:::r-:o"'t~H"'Ul1=Ia=n~R-C-es=CoC-u-Crc=es
9-+1011 mjr 00;'1039
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EXHIE1T "A~
AMENDME~'T TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF TIlE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND T"AE
CITY COL"'NCIL OF THE CITY OF PAl.o AT~TO
The Soard of Administration, Public Employees' Retirement
syatem, hereinafter referred to as "Board" and the City Council of
the Ci~y of Palo Alto, hereinafter referred to as ~I~blic Agency~,
having entered into 3. contract which provides far pal.-ticipat-ioll of
P"ublic -'\qency in said SystE."'...m, 3oa.rd and Public Agency heceby agree
a~ follows:
.20. Paragraph B is amend .. ~d It) read ?os follows:
Public Agency elp.cts to be subject. to
20Gl:':.5 (Discont inuing e;T',plc.:yec pal.d
c0n;;ributions dud.ng the fJnal coropens,~tion
and. incI:l2asing In-e.rnber.s' pay rate) fo1.."~
Percent Incr~ase
~ .. Cat..~.9.qJ"~ in CQmpen~tion
Local mi8cellaneous 7%
employees represented
by Local 715, SEIU,
AFL-CIO, CLC
Local miscellaneous 7t
employees in the
Management and Confi-
dential group
"Local Police;J employees 9%
in the Management and
Confldential group
"T.local Fire~ employees 9%
in the Management and
Confidential group
~~i>'l;;~li<:e .• employee" ·9\'
retJ~ted:'.bY t.he Palo
ALto Peace Officers'
~Q£~~~;,O?
1
Sect. ion
fn'!ffiber
oeriod
This amend.''!ten'C. shall be effective on the
of 1994.
BOARD CF AOMIHISTRA~ICN
PUBLIC KMPLOYEE'S RETIREMRNT SYST8~
By' ___ _
l~ief. C~tract Services Division
?~blic ~loyees' Retirern~nt
System
2
CITY COUNCIL OF THE
CITY OF PALO ALTO
By,---
ro'..ayor
ATTEST:
day
,-~, . ,0
""'--~--. ---
C(':RT1FICATION OF CO~PLIANC-E
I hereby certify that:
1. In accordance with GoveIT.!"'..e:1t Co:.ie ,'3€'C'c:ior.:s 'i507 ar:d 20615 [c} 7
the future annu.tll cost s ;ts detercc,ined by PERS have been r..ade
public at t ... o consec'...I.tive p'.lbli-:-2<':etir.gs o.Jf t~~: Cit:;' Council
of the Citv of Palo Altc it': l'~3.Sl v •• ,:) ·"l'f'ir.S DriOe:" to Ule
adop:::ion ';J{ th~ final ordir:",:nce O~-::~1'-' cC;""tr;".:'t -"":""_'r!-dc,,",nt;
:io In acccrddnce wit~
Council a;jiJ~Jt.e-j <1
cont:ra ct l~.;;'nlirr,-ent,
tr.c adopt ion or -",
M,e ndrnen t ;
G ) .... c; n--_-.c"-,,':: ,'_',,;:'j'2 :3':!':';" .. <or-' ,;>.:,,;:-e-0, t' (.2 Cir.y
r,c-C'(,),i ut.: C)!'"; C~: 5.nt><Jt:i::';] ',-I <:>.;:,pr,')'-J2 th{'
:f,:,,},~-:, .. .-ei al ~':C,;~~i :.!O :~-:::;Y::'i t:"'cr>;c,,"'~'_~:r by
:tiT'_-=<i u'rdinac. ~ ".!.-;.prc,";:l--j th-:-concr.;'l("t
3. The labor POllCY or agre-e.~-=nt is C"ons iS~_o2','t and in contormity
-with Govern.,*nt Code sect icn 2JE,1 S. 5
I cer-tify that. t.he fur-egoing is tnJe-and accurate,
CITY OF PAI,O ALTO
Date: