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AGENDA BILL Agenda Item No. 5(8) Date: June 17, 2014 To: El Cerrito City Council From: Karen Pinkos, Assistant City Manager Subject: Paying and Reporting the Value of Employer Paid Member Contributions for City Council and City Manager ACTION REQUESTED Adopt a resolution amending the paying and reporting of the value of employer paid member contributions for the City Council and City Manager. BACKGROUND/ANALYSIS CalPERS requires the governing body of the City of El Cerrito to adopt a resolution when amending the payment of employer paid member contributions (EPMC). On June 9, 2014, the City Council approved a modification to pension plan benefits and reimbursement for Management and Confidential employees by eliminating the City's EPMC for Management and Confidential employees, increasing their member contribution from 4% to the full Per the City Manager's Employment Agreement, if the City's Department Heads pay for any portion of the employee's contribution to PERS during the term of the Agreement, "the City Manager shall pay the same portion of employee's contribution to PERS as the City Directors (Department Heads)." This resolution notifies PERS that the City has eliminated the EPMC and increased the member contribution for the City Manager from 4% to Members ofthe City Council (also known as Elective Officers) are included in this resolu1ion as well, verifying the Council's desire to pay the full 8% employee contribution tp PERS. ; FINANCIAL CONSIDERATIONS The elimination of the City's payment of the EPMC contribution for the City Council and City Manager represents a savings of $11,270 across all funds. Scott Hanin, City Manager Attachment: 1. Resolution ---PAGE BREAK--- Agenda Item No. 5(B) Attachment 1 RESOLUTION 2014–XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO MODIFYING REPORTING AND PAYMENT OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR CITY COUNCIL—ELECTIVE OFFICERS AND CITY MANAGER WHEREAS, the City Council, as the governing body of the City of El Cerrito, has the authority to implement Government Code Section 20691; and WHEREAS, the City Council of the City of El Cerrito has written agreements with employees that specifically provided for a portion of the normal member contributions to be paid by the employer; and WHEREAS, the City’s contribution for City Council—Elective Officers and the City Manager to the California Public Employees Retirement System (PERS) for the employer paid member contribution (EPMC) will end June 30, 2014; and WHEREAS, the City Council of City of El Cerrito has identified the following conditions: • This resolution shall apply to City Council—Elective Officers and City Manager classifications; • This benefit shall consist of the City paying zero of the normal member contributions as EPMC; • City Council and the City Manager will pay the entire member contribution of eight percent to PERS; • The effective date of this resolution is July 1, 2014. NOW THEREFORE, BE IT RESOLVED, that the City Council does hereby modify reporting and payment of employer paid member contributions to PERS as set forth in the conditions above, effective July 1, 2014. I CERTIFY that at a regular meeting on June 17, 2014, the El Cerrito City Council passed this resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: * * * * * ---PAGE BREAK--- Agenda Item No. 5(B) Attachment 1 IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on June X, 2014. Cheryl Morse, City Clerk APPROVED: Rebecca Benassini, Vice Mayor