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Home My Public Portal About16) 7K Adoption of Resolution No 15-5094 Superceding Employer Paid Meber ContributioAGENDA ITEM 7.K. ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: July 7, 2015 TO: The Honorable City Council FROM: Bryan Cook , City Manager By : Tracey L. Hause , Administrative Services Director SUBJECT: ADOPTION OF RESOLUTION NO. 15-5094 SUPERCEDING EMPLOYER PAID MEMBER CONTRIBUTIONS RECOMMENDATION: The City Council is requested to adopt Resolution No . 15-5094 (Attachment "A ") implementing a reduction in Employer Paid Member Contributions (EPMC) to the Californ ia Public Employee s Retirement System (Ca iPERS ) by three percent (3 %) for employees represented by Temp le City Employees Association (TCEA) effective June 29 , 2015. BACKGROUND: 1. Since October 1, 1965, the City has participated in CaiPERS with the City contributing both employee and employe r contributions. 2. On July 16 , 2002 , the City Council adopted Resolution No . 02-2102 memorial izin g full payment of EPMC to CaiPERS which up to that time was seven percent (7%). 3. On June 29, 2010 , the City Council adopted the Fiscal Year (FY) 2010-11 City Budget which included a reduction in the EPMC to CaiPERS by one percent (1 %), effective the first pay date after July 1, 2010 . 4 . On August 15 , 2011 , the City Council at their regular meeting voted to eliminate the EPMC , currently eight percent (8 %) to CaiPERS for all newly hired employees effective January 1, 2012 . 5. On December 20 , 2011 , the City Council adopted Resolution No . 11-4781 memorializing the implementation of a reduction in EPMC to CaiPERS by one percent (1%) effective July 1, 2010 , and Resolution No . 11 -4782 eliminating City Council July 7 , 2015 Page 2 of 3 payment of the EPMC to CaiPERS for employees hired on or afte r January 1, 2012. 6 On March 12 , 2014 , the City received correspondence dated March 11 , 2014 , from the President of TCEA , informing the City that the general employees would be filing to establish the TCEA as an employee association and advising that they had retained the staff at the City Employees Association for legal and professiona l assistance . 7 . On April 4 , 2014 , a representative from the Public Employment Relations Board (PERB), in accordance with the joint request from the City and TCEA , conducted a petition check election . The agreed number of employees in the TCEA Un it is 29. The required majority designation was 15 and the representative from PERB found that the petition for the employee organ ization exceeded the majority designation . 8 . Between July 9, 2014 and February 5 , 2015, the City met on numerous occasions with TCEA to negotiate a Memorandum of Understanding (MOU). 9 . On February 11, 2015 , TCEA membership voted to rat ify the City's offer that was presented to TCEA's negotiation team on February 5 , 2015 . 10. On February 24, 2015 , the City Council adopted Resolution No . 15-5067 approving the MOU between the City of Temple City and TCEA. 11 . On March 17 , 2015 , the City Council adopted Resolution No . 15-5068 imp lementing a reduction in the EPMC to CaiPERS by three percent (3%) for employees represented by TCEA effective March 23, 2015 . ANALYSIS: Since 1965, the City paid the full members contribution (employer and employee) to CaiPERS . In 2002, that action was memorialized by the adoption of Resolution No . 02 - 2102 . Due to changes in the local economy, as part of budget process for the FY 2011- 12, the City Council approved a decrease of one percent (1 %) to the EPMC , requiring all full time employees to pay one percent (1 %) of the employee's contribution of eight percent (8 %). The City Council also approved a motion that required all new employees hired after January 1, 2012 , to pay the full member contribution . As part of the implementation of the MOU with TCEA, ratified by its members and approved by the City Council , a Resolution was adopted on March 17 , 2015, implementing a reduction in EPMC to CaiPERS . The MOU stipulated a five pe rcent (5%) salary increase and a three percent (3 %) increase in the employee contribution to the employee share of CaiPERS retirement (bringing the employee tota l contribution to 4 %). For employees hired before January 1, 2012 , who are not already paying their full City Council July 7 , 2015 Page 3 of 3 CaiPERS employee contribution , resulting in a net salary increase of two per cent (2 %). The Resolution was effective March 23 , 2015 . The MOU further stipulates another five percent (5 %) salary increase effective July 10, 2015, and a three percent (3 %) increase in the employee contribution to the employee share of CaiPERS retirement. This will bring the employee total contri bution to 7 %. For employees hired before January 1, 2012 , who are not already paying their full CaiPERS employee contribution , this will result in a net salary increase of two percent (2%). The Resolution will be effective June 29, 2015 , for implementation with the pay-period ending July 10, 2015 . CONCLUSION: In order to implement a prov1s1on of the approved MOU w ith TCEA, adoption of a Resolution implementing a reduction in EPMC to CaiPERS is required . FISCAL IMPACT: Current and future savings will be realized in CaiPERS retirement costs of approximately $60,000 , as a result of employees represented by TCEA picking up an additional three percent (3 %) of their CaiPERS employee contributions , has been accounted for and incorporated in the FY 2015-16 City Budget. ATTACHMENT: A. Resolution No. 15-5094 RESOLUTION NO. 15-5094 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY REDUCING THE AMOUNT OF EMPLOYER PAID MEMBER CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT FOR FULL-TIME EMPLOYEES REPRESENTED BY TEMPLE CITY EMPLOYEES ASSOCIATION HIRED BEFORE JANUARY 1 , 2012 BY THREE PERCENT (3 %). THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY RESOLVE , DETERMINE AND ORDER AS FOLLOWS : Whereas, the governing body of the City of Temple City has the authority to im plement Government Code Section 20691 ; Whereas, the governing body of the City of Temple City has a written labor policy or agreement which spec ifically provides for the normal member contribution to be paid by the employer ; Whereas, one of the steps in the procedures to i mp lement Section 20691 and to make subsequent modifications to the terms regarding the City of Temple City's payment of Employer Paid Member Contributions ("E PMC") to the California Public Employees' Retirement System ("CaiPERS ") is the adoption by the governing body of the City of Temple City of a Resolution ; Whereas, in Temple City the go ve rning body of the City of Temple City had agreed to pay a portion EPMC for all employees who are miscellaneous members of CaiPERS , which is currently seven pe rcent (7 %); Whereas, in connection with implementation Memorandum of Understanding (MOU) between the City of Temple City and Temple City Employees Association (TCEA), the City of Temple City will reduce the amount of the EPMC paid to CaiPERS for TCEA members by three percent (3 %) effective March 23, 2015 ; Whereas, in connection with implementation Memorandum of Understanding (MOU) between the City of Temple City and Temple C ity Employees Association (TCEA), the City of Temple City will re duce the am ount of the EPMC paid to CaiPERS for TCEA members by three percent (3 %) effective with the pay period beginning June 29 , 2015 ; and Whereas, the governing body of the C ity of Tem p le City now des ires to ratify the reduction in amount of EPMC pa id to CaiPERS by the City of Temple City for TCEA members by three percent (3 %); NOW, THEREFORE , BE IT RESOLVED : Resolu t io n No . 15-5094 Jul y 7, 2 01 5 Page 2 SECTION 1. That the EPMC shall be amended to provide that al l employees hired by the City of Temple City before January 1, 2012 who are TCEA members of CaiPERS will be requi red to contribute seven percent (7 %) of the normal member contribut ion to CaiPERS , with the City of Temple C ity contributing one percent (1 %) of the normal member contribut ion to CaiPERS . SECTION 2 . This Resolution shall be effective with the pay period beginning June 28, 2015 . PASSED , APPROVED AND ADOPTED ON THIS ih day of July , 2015 . Tom Chavez , Mayor ATIEST: APPROVED AS TO FORM : Peggy Kuo , C ity Clerk Eric Vai l, City Attorney I hereby certify that the foregoing resolution , Resolution No. 15-5094, was adopted by the C ity Council of the City of Temple City at a regular meeting held on the ih day of June, 2015 by the follow ing vote : AYES : NOES : ABSTAIN : ABSENT : Councilmember- Councilmember- Councilmember- Councilmember- Peggy Kuo , City Clerk