PURPOSE:

Pursuant to a request from the California Public Employees Retirement System (PERS) staff is requesting City Council adoption of a resolution codifying the City�s current practices and procedures regarding the Burbank City Employees Association (BCEA) Employee Paid Member Contribution (EPMC).

BACKGROUND:

On November 30, 1999 the City Council adopted Resolution No. 25,642 (attached as Exhibit A) which approved the Memorandum of Understanding (MOU) between the City and the BCEA for Fiscal Years 1999-2002.   As part of that MOU it was agreed that effective July 1, 2000, the City would begin reporting the employee 7% PERS contribution as part of their salary for purposes of retirement calculation (Article IV, Section D of the 1999-2002 BCEA MOU attached as Exhibit B). 

In a recent actuarial report it was discovered that this benefit was not properly identified.  Therefore, following conversations with PERS, the City became aware that a unique resolution is required for the implementation of this benefit and that there was no such resolution adopted in 1999 when this benefit was approved by the Council.  Staff investigated the matter further and discovered that although all of the procedural steps had been taken by the City and all the correct payments had been made on behalf of the BCEA employees, in order to be in full compliance with the PERS EPMC commitment, a resolution memorializing the agreement must be adopted by the City Council.    

ANALYSIS AND CONCLUSION:

It is clear that an important step in the process of implementing the EPMC benefit for the BCEA was overlooked in 1999.  In order to correct this oversight, staff contacted PERS to inquire on how to complete an acceptable resolution that would meet their requirements so that the City would be in full compliance. Pursuant to discussions with PERS it was agreed that this proposed resolution would be presented to the City Council for adoption. 

FISCAL IMPACT:

There is no fiscal impact associated with the approval of this proposed resolution.  This is merely a resolution that will place the City in full compliance with PERS requirements pertaining to the implementation of the EPMC benefit that was negotiated for by the BCEA in 1999.  While there is no direct financial impact at this point, there certainly was a cost to the City for this benefit and it was appropriately accounted for at the time the MOU was approved by the Council.

RECOMMENDATION:

It is recommended that the City Council adopt the proposed resolution.

Respectfully submitted,

Judie Sarquiz