Agenda Report on CalPERS Contract

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Item #2 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF October 15, 2002 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Teresa S. Delgado, Human Resources Manager .0 SUBJECT: Miscellaneous Employees 2.7 %Cca55: Adopt Resolution of Intention to Approve Amendment to Contract and Approve and Adopt First Reading of Ordinance Authorizing Amendment to the Contract DATE: October 1, 2002 BACKGROUND: Under the current labor agreements with CWA, IBEW, SBPEA and the Executive Unit, the City agreed to amend the existing retirement contract with Ca1PERS from 2%@a55 to 2.7%@55, to be effective with the first payroll period following the effective date of the Ordinance. DISCUSSION/ANALYSIS: The employee units unanimously proposed that the City increase the employee's retirement formula to 2.7%@55. When informed by Labor Negotiations Chairman Al Holliman that the City's contribution would increase from 7% to 8% and the City Council would agree to pay 4% of the rate, the employees agreed to pay the remaining 4%. In accordance with Ca1PERS requirements, the Resolution of Intention is presented for adoption this date, along with the first reading of the proposed Ordinance. By law, 20 days must lapse between the first reading and the second reading; therefore, the adoption of the second reading of the Ordinance will be submitted for City Council's approval on November 5, 2002. Because of the change in the employees' rate of contribution, Government Code Section 20474 requires a secret ballot election by the employees affected by the amendment to the contract. The election is scheduled to take place on October 23, 2002, prior to the second hearing of the proposed ordinance. All of the miscellaneous employees will be eligible to vote and certification of employee election will be presented to CaIPERS.