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R-10150 RESOLUTION NO. 10150 (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING SETTING THE TERMS AND CONDITIONS FOR IMPLEMENTATION OF SECTION 21354.5 OF THE CALIFORNIA GOVERNMENT CODE TO PROVIDE THE 2.70/0 @ 55 FULL CALPERS RETIREMENT FORMULA FOR ACTIVE LOCAL MISCELLANEOUS MEMBERS ONLY WITH MANAGEMENT TEAM ASSOCIATES, SUPERVISORY TEAM ASSOCIATES, ADMINISTRATIVE TEAM ASSOCIATES, MUNICIPAL EMPLOYEES ASSOCIATION, PUBLIC ATTORNEYS' UNION, UNITED TRANSPORTATION UNION (LOCAL 1785), PUBLIC ATTORNEYS' LEGAL SUPPORT STAFF UNION AND EXECUTIVE PAY PLAN PARTICIPANTS WHEREAS, the City administration and representatives of the City's miscellaneous employee (non-safety) bargaining units have met and conferred under the terms of Ordinance No. 801 (CCS) and have reached agreement on the terms and conditions of implementing Section 21354.5 of the California Government Code to provide the 2.7% @ 55 full formula for active local miscellaneous members only that is made available by the California Public Employees' Retirement System (CaIPERS) as a retirement plan option; and 1 WHEREAS, Section 2.06 of Ordinance No. 801 (CCS) of the City of Santa Monica requires preparation of a written Memo randum of Understanding between the administration and employees if an agreement can be reached; and WHEREAS, Section 2.06 of Ordinance No. 801 (CCS) further provides that any such Memorandum of Understanding shall not be binding unless and until presented to the governing body for determination; and WHEREAS, the purpose of the Memorandum of Understanding is to promote and provide harmonious relations, cooperation, and understanding between the City and its miscellaneous employee (non-safety) bargaining units; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Santa Monica does hereby approve and authorize the City Manager to execute the attached Memorandum of Understanding between the City and the bargaining units representing the City's non-sworn employees. Section 2. The Memorandum of Understanding sets forth the terms and conditions of implementing Section 21354.5 of the California Government Code to provide the 2.7% @ 55 full formula for active local miscellaneous members only that is made 2 available by CalPERS as a retirement plan option. Section 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: (LABOR\OTHER\2.7% @ 55.umbrella agreement.Resolution.062706) 3 Adopted and approved this 2ih day of June, 2006. J ~~;7-: d/~~,,--- Robert T. Holbrook, Mayor I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution NO.1 0150 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 27th day of June, 2006, by the following vote: Ayes: Noes: Abstain: Absent: Council members: Genser, Katz, McKeown, O'Connor, Mayor Holbrook Council members: None Council members: None Council members: Bloom, Mayor Pro Tern Shriver ATTEST: 4 MEMORANDUM OF UNDERSTANDING (UMBRELLA AGREEMENT) SETTING THE TERMS AND CONDITIONS OF EMPLOYEE-PAID CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT PLAN (CALPERS) OPTIONAL BENEFITS FOR ALL MISCELLANEOUS CITY EMPLOYEES BETWEEN CITY OF SANTA MONICA AND MANAGEMENT TEAM ASSOCIATES, SUPERVISORY TEAM ASSOCIATES, ADMINISTRATIVE TEAM ASSOCIATES, MUNICIPAL EMPLOYEES ASSOCIATION, PUBLIC ATTORNEYS' UNION, UNITED TRANSPORTATION UNION (LOCAL 1785), PUBLIC ATTORNEYS' LEGAL SUPPORT STAFF UNION AND EXECUTIVE PAY PLAN PARTICIPANTS This Agreement sets forth th.e terms and conditions pertaining to an employee- reimbursement to the City for all of the additional cost (additional employer contribution and additional employee contribution) that will result when the City amends its contract with the California Public Employees' Retirement System (CaIPERS) to provide the optional CalPERS benefit set forth in Section 21354.5 of the California Government Code, which establishes a 2.7% @ 55 full formula for active local miscellaneous members only. The City will amend its contract with CalPERS to provide the 2.7% @ 55 optional benefit, with the effective date of the CalPERS contract amendment to be June 1, 2007. The schedule for employee reimbursements to the City will be as follows: 1. As of July 1, 2006, all non-sworn miscellaneous City employees will contribute 2.5% of their compensation subject to CalPERS contributions. These monies will be held by the City and used to reimburse the City for the additional cost incurred by the City when the 2.7% @ 55 CalPERS option for miscellaneous City employees is implemented as of June 1, 2007. 2. As of July 1,2007, all non-sworn miscellaneous City employees will contribute an additional 2.5%, for a total of 5.0%, of their compensation subject to CalPERS contributions. These monies will be used to reimburse the City for the additional cost incurred by the City when the 2.7% @ 55 CalPERS option for miscellaneous City employees is implemented as of June 1,2007. 3. As of July 1, 2008, all non-sworn miscella neous City employees will contribute an additional 1.7%, for a total of 6.7%, of their compensation subject to CalPERS contributions. These monies will be used to reimburse the City for the additional cost incurred by the City resulting from the implementation of the 2.7% @ 55 CalPERS option for miscellaneous City employees. 4. Thereafter, unless this agreement is amended to stipulate otherwise, all of the miscellaneous City employees will continue to contribute 6.7% of their compensation subject to CalPERS contributions to reimburse the City for the additional cost associated with implementing the 2.7% @ 55 CalPERS option for miscellaneous City employees. Employees covered herein will be required to reimburse the City, through payroll deduction, in accordance with the reimbursement schedule outlined above. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be executed June _, 2006. By: NON-SWORN CITY EMPLOYEE BARGAINING UNITS: MANAGEMENT TEAM ASSOCIATES SUPERVISORY TEAM ASSOCIATES Joan Akins, President Bill Bollinger, President ADMINISTRATIVE TEAM ASSOCIATES PUBLIC ATTORNEYS UNION Rod Merl, President Marty Tachiki, PAU Representative MUNICIPAL EMPLOYEES ASSOCIATION Jeri Wingo, President PUBLIC ATTORNEYS' LEGAL SUPPORT STAFF UNION Judy Silverman, PALSSU Representative By: CITY OF SANTA MONICA P. Lamont Ewell, City Manager EXECUTIVE PAY PLAN Craig Perkins, EPP Representative UNITED TRANSPORTATION UNION LOCAL 1785 Ahdi Reddy, General Chairman APPROVED AS TO FORM: Marsha Jones Moutrie City Attorney Attest: City Clerk (H:\LABOR\MOU\PERS.umbrella agreement.Ee paid 2.7% @ 55 option.2006)