sr-072412-3ec7®
City of
Santa Monica
To: Mayor and City Council
City Council Report
City Council Meeting: July 24, 2012
Agenda Item: 3 —E
From: Donna Peter, Director of Human Resources
Subject: Resolution Authorizing the City Manager to Execute a Side Letter of
Agreement with the City's Miscellaneous (Non- Safety) Bargaining Units
Pertaining to Retirement Benefits
Recommended Action
Staff recommends that City Council adopt the attached Resolution authorizing the City
Manager to execute a Side Letter of Agreement regarding the setting of the terms and
conditions of employee -paid California Public Employees' Retirement System
(CalPERS) optional benefits between the City and the Coalition of Santa Monica
Employees representing Executive Pay Plan participants and the bargaining units that
represent the City's miscellaneous (non- safety) employees.
Executive Summary
The City has negotiated with the Coalition of City of Santa Monica Employees, which
represents miscellaneous non- safety employees. As a result, a Side Letter of
Agreement has been ratified by the membership of the Coalition that modifies the cost
sharing of certain existing retirement benefits making the employee reimbursements
payable on a pre -tax basis. There is no cost to the City associated with this agreement.
Discussion
The side letter agreement modifies both the Memorandum of Understanding between
the parties, executed on November 3, 2006 and Contract No. 9495 (CCS), executed on
December 1, 2011 and sets forth a modification to the terms and conditions pertaining
to non -sworn miscellaneous employees. Currently non -sworn miscellaneous
employees reimburse the City through payroll deductions on a post -tax basis for costs
associated with existing optional retirement benefits including the Fourth Level of 1959
Survivor Benefit as set forth in Section 21574 of the California Government Code, the
1
Pre - Retirement Optional Settlement 2 Death Benefit as set forth in Section 21548 of the
California Government Code, and Employer Paid Member contribution (for employees
hired prior to July 1, 2012). This cost sharing shall continue; however, effective with the
adoption of the Side Letter, the reimbursements made to the City through payroll
deductions would change from a post -tax deduction to a pre -tax basis deduction.
Financial Impacts and Budget Actions
There are no financial impacts or budget actions required.
Prepared by: Donna C. Peter, Director of Human Resources
Approved:
Donna C. Peter
Director, Human Resources Department
Attachments:
A. Resolution
6
Forwarded to Council:
Y
Rod Gould
City Manager
Reference Resolution No.
10697 (CCS)