12-20-2011 - Post Retirement Employment Agreement - City Manage - Item 10 Attach 1 (2).pdfATTACHMENT
December 15, 2011
To: Mayor Touhey and Members of the City Council
From Andrew G. Pasmant, City Manager/
Subject: Letter of Intent to Retire and Alternative Work Proposal
As some of you are aware, I have been struggling with this decision to retire for a number
of months. I had many personal and business commitments that I felt I needed to
complete before I considered moving on to the next chapter of my life. As you are aware,
I have submitted my formal retirement papers with PERS showing an effective date of
December 30, 2011. I have previously, submitted to the City a proposal to consider an
alternative work arrangement, which could save the City money. Although I would like
to retire, I want to help make this transition as easy for everyone as possible. Therefore I
have identified two alternatives that would provide you more time to assess where and
what you want to do, as well as save the City money.
I am at a point, where I need to make a decision, whether to proceed with my retirement
date of December 30, 2011, or extend the date to an alternate date in 2012. I have
previously submitted a proposal to the Council providing two options to consider, one of
which could generate a significant savings for the City. The two options are to extend my
retirement date to 2012 on a status quo basis or alternatively, authorize me to remain
employed under a temporary 960 plan. The 960 plan limits the number of hours I may
work to 960 hours per fiscal year. By extending the retirement, the City can generate a
savings and I can continue to serve the City until a transition is made.
It is my desire to give you options before I leave the City. If you feel that it would be
mutually advantageous for me to stay longer, I am willing to make changes to my
retirement date especially given the timing of recent senior management departures, the
number of City Manager vacancies statewide and its affect on recruitment and costs,
labor negotiations and staff shortages.
Whatever you decide, I truly appreciate the opportunity to have been a part of the history
of this great community, which I will truly miss.
City of West Covina
MEMORANDUM
Item:
Date: December 20, 2011
TO: Andrew G. Pasmant, Executive Director
and the Community Development Commission
FROM: Thomas Bachman, Director
Finance Department
SUBJECT: ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2011
RECOMMENDATION:
It is recommended that the Community Development Commission receive and file this report.
DISCUSSION:
Pursuant to California Redevelopment Law (Health and Safety Code Section 33080), an Annual
Report of the Community Development Commission has been prepared for the fiscal year ended
June 30, 2011. The law specifies that the report include the following:
An independent, financial audit report, including a compliance opinion;
Fiscal statement. which includes the Annual Report of Financial Transactions and all
other requirements of Health and Safety Code Section 33080.5;
Description of activities affecting housing and displacement as reported on the Schedule
HCD; and
Evaluation of the year's achievements and a work program for the coming fiscal year
The annual report will be submitted to the appropriate state regulatory agencies by December 31,
2011. The report is required to be presented to the Commission and the City Council within six
months of the end of the Commission's fiscal year.
The financial statements include the debt service and capital project funds for both the Merged
and Citywide project areas, the low and moderate-income housing fund, and the West Covina
Plaza Community Facilities District. The combined fund balances for all funds decreased by
$4,107,570. The decrease is primarily attributable to the $1.3 million Supplemental Educational
Revenue Augmentation Fund (SERAF) payment to the county school fund as mandated in the
2010-11 state budget, the end of the county deferral of 50% of their tax increment revenue for
the Merged Project Area and contributions for construction to the Senior Villas II housing
project.. Property tax revenues were stable with a $489,551 (2.9%) increase in the Merged
Project Area and a $511,666 (18.9%) decrease in the Citywide Project Area.
%II %tan A AL10,-....
4/4 nANK Prepared by: Denise Bates
Accounting Manager
APO I ---
Reviewe of Approve • : Tom Bachman
Assistant City Manager
Attachment: CDC Annual Report for fiscal year 2010/2011
City of West Covina
Memorandum
AGENDA
ITEM NO. 12
DATE: December 20 2011
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Theresa St. Peter
Interim Human Resources Director
SUBJECT: PROVIDING FOR PAYING AND REPORTING THE VALUE OF
EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution related to paying and
reporting the value of employer paid member contributions to the California Public Employees'
Retirement System (CalPERS):
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, REGARDING PAYING AND
REPORTING THE VALUE OF EMPLOYER PAID MEMBER
CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
DISCUSSION:
Government Code sections 20636(c)(4) and 20691 provide that an employer may pay normal
member contributions and report this as additional compensation. The Resolution attached
describes those employee groups receiving this benefit.
This benefit provides that the employer pays a negotiated percentage of the normal member
contributions as Employer Paid Member Contributions and reports the same value of
compensation as additional compensation. The Resolution memorializes for the California
Public Employees' Retirement System the actions taken by the City a number of years ago
related to this benefit
FISCAL IMPACT:
There is no fiscal impact as a result of adopting this Resolution.
Prepared by:
Theresa St. Peter
Interim Human Resources Director
Attachment: Resolution Regarding Paying and Reporting the Value of Employer Paid Member
Contributions to the California Public Employees' Retirement System
Z:City Council:CCEPMC Reso 20636
RESOLUTION NO. — 2011-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, PROVIDING FOR PAYING AND REPORTING
THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the governing body of the City of West Covina has the authority to
implement Government Code Section 206360(4) pursuant to Government Code Section 20691;
WHEREAS, the governing body of City of West Covina has a written labor policy or
agreement that specifically provides for the normal member contributions to be paid by the
employer, and reported as additional compensation;
WHEREAS, one of the steps in the procedures to implement Government Code Section
20691 is the adoption by the governing body of the City of West Covina of a Resolution to
commence paying and reporting the value of said Employer Paid Member Contributions
(EPMC); pursuant to CCR title 2 section 571(a)(1).
WHEREAS, the governing body of the City of West has identified the following
conditions for the purpose of its election to pay EPMC:
This benefit shall apply to the following employee groups or classes:
Fire Management Employees
Police Management Employees' Association
Maintenance & Crafts Employees' Association
Non-Sworn Safety Support Employees' Association
West Covina Firefighters' Association
West Covina Police Officers' Association
This benefit shall consist of paying the following percentages of the of the normal
member contributions as EPMC, and reporting the same percent (value) of
compensation earnable (excluding Government Code Section 206360(4) as
additional compensation.
Police Management Employees' Association —9%
Fire Management Employees' Association —9%
Maintenance & Crafts Employees' Association - 2%. Will be 0% effective
January 7, 2012
Non-Sworn Safety Support Employees' Association — 2%. Will be 0% effective
January 7, 2012
West Covina Firefighters' Association —9%
West Covina Police Officers' Association — 9%
The terms of this Resolution shall be July 1, 201
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of West Covina
elects to pay and report the value of EPMC, as set forth above.
APPROVED AND ADOPTED on this 20th day of December 201
Mayor Michael Touhey
ATTEST:
City Clerk Laurie Carrico
Z:City Council:CCEPMC Reso 20636
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 20 th day of December, 2011 by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman
Z:City Council:CCEPMC Reso 20636
City of West Covina
Memorandum
AGENDA
ITEM NO. 13
DATE: December 20, 2011
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Theresa St. Peter
Interim Human Resources Director
SUBJECT: TAX DEFERRAL OF MEMBER PAID CONTRIBUTIONS TO THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution to tax defer member paid
contributions to the California Public Employees' Retirement System (CalPERS):
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, TO TAX DEFER MEMBER
PAID CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
DISCUSSION:
Section 414(h)(2) of the Internal Revenue Code provides that contributions designated as
employee contributions to CalPERS may be made on a pre-tax basis. Therefore, these
contributions are not taxed until benefits are paid in retirement or upon separation from
CalPERS. Otherwise, contributions to CalPERS designated as employee contributions will be
immediately taxable to the employees. CalPERS requires that a resolution be adopted by the
City of West Covina in order to participate in this benefit. This memoralizes the City's current
policy with regard to employee contributions to CalPERS for retirement purposes.
FISCAL IMPACT:
There is no fiscal impact as a result of adopting this Resolution.
Prepared by:
Theresa St. Peter
Interim Human Resources Director
Attachment: Resolution Approving the Tax Deferral of Member Paid Contributions to the
California Public Employees' Retirement System
Z: CC EPMC Reso IRC414(h)(2)
RESOLUTION NO. 2011-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, TO TAX DEFER MEMBER PAID
CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM IN ACCORDANCE WITH INTERNAL
REVENUE CODE SECTION 414(h)(2)
WHEREAS, the governing body of the City of West Covina has the authority to
implement the provisions of section 414(h)(2) of the Internal Revenue Code (IRC); and
WHEREAS, the City of West Covina has determined that even though the
implementation of the provisions of section 414(h)(2) IRC is not required by law, the tax benefit
offered by section 414 (h)(2) IRC should be provided to all employees in the following
recognized groups or classes of employment who are members of the California Public
Employees' Retirement System:
Confidential Employees' Association
Elected and Appointed Employees
General Employees' Association
Maintenance & Crafts Employees' Association
Management Employees
Mid-Management Employees
Non-Sworn Safety Support Employees' Association
NOW, THEREFORE, the City Council of the City of West Covina does resolve,
determine and order as follows:
SECTION 1. That the City of West Covina will implement the provisions of section
414(h)(2) of the Internal Revenue Code by making employee contributions pursuant to
California Government Code Section 20691 to the California Public Employees' Retirement
System on behalf of all its employees who are members of the California Public Employees'
Retirement System. "Employee contributions" shall mean those contributions to the Public
Employees' Retirement System that are deducted from the salary of employees and are credited
to individual employee's accounts pursuant to California Government Code section 20691.
Contribution amounts for each of the above groups or classes for all employees
hired after January 1.2011, is 7%
Contribution amounts for each of the above groups or classes are as follows for all
current employees employed by the City of West Covina prior to January 1, 2011:
Confidential Employees' Association — 8%
Elected and Appointed Employees —8%
General Employees' Association — 8%
Management Employees —8%
Mid-Management Employees' Association —8%
Maintenance & Crafts Employees' Association — 6%
Non-Sworn Safety Support Employees' Association —6%
Effective January 7, 2012, contribution amounts for employees in the Non-Sworn
Safety Employees' Association and the Maintenance & Crafts Employees'
Association will increase to 8%
SECTION 2. That the contributions made by the City of West Covina to the California
Public Employees' Retirement System, although designated as employee contributions, are being
paid by the City of West Covina in lieu of contributions by the employees who are members of
the California Public Employees' Retirement System.
SECTION 3. That employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the City of West Covina to the
California Public Employees' Retirement System.
SECTION 4. That the City of West Covina shall pay to the California Public
Employees' Retirement System the contributions designated as employee contributions from the
same source of funds as used in paying salary.
SECTION 5. That the amount of the contributions designated as employee contributions
and paid by the City of West Covina to the California Public Employees' Retirement System on
behalf of an employee shall be the entire contribution required of the employee by the California
Public Employees' Retirement Law (California Government Code Sections 20000, et seq.).
SECTION 6. That the contributions designated as employee contributions made by the
City of West Covina to the California Public Employees' Retirement System shall be treated for
all purposes, other than taxation, in the same way that member contributions are treated by the
California Public Employees' Retirement System.
APPROVED AND ADOPTED on this 20th day of December 201
Mayor Michael Touhey
ATTEST:
City Clerk Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 20 th day of December, 2011 by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman
City of West Covina
Memorandum
AGENDA
ITEM NO. 14
DATE: December 20 2011
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Theresa St. Peter
Interim Human Resources Director
SUBJECT: EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution related to employer paid
member contributions to the California Public Employees' Retirement System (CalPERS):
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, REGARDING EMPLOYER
PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
DISCUSSION:
Government Code Section 20691 provides that an employer may pay those contributions
designated as employee contributions on behalf of its employees to CalPERS. In the past, the
City of West Covina contributed the full employee portion to CalPERS on behalf of its
employees.
Due to the continuing economic recession, the City of West Covina has had to eliminate and/or
reduce a number of employee benefits. Therefore, many of the City's employee groups are
now paying all or most of the required employee contribution to CalPERS. It is important to
note that Management employees, as well as the Maintenance and Crafts Employees'
Association and the Non-Sworn Safety Support Employees' Association voluntarily elected to
pay this employee contribution. This Resolution memoralizes the reduced employer-paid
contribution paid by the City.
FISCAL IMPACT:
There is no fiscal impact as a result of adopting this Resolution.
Prepared by:
Theresa St. Peter
Interim Human Resources Director
Attachment: Resolution Regarding Employer Paid Member Contributions to the California
Public Employees' Retirement System
Z: CC EPMC Reso GC 20691
RESOLUTION NO. 2011-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, REGARDING EMPLOYER PAID MEMBER
CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
WHEREAS, the governing body of the City of West Covina has the authority to
implement Government Code Section 20691; and
WHEREAS, the City of West Covina has a written labor policy or agreement that
specifically provides for the normal member contributions to be paid by the employer;
WHEREAS, one of the steps in the procedures to implement Government Code Section
20691 is the adoption by the governing body of the City of West Covina of a Resolution to
commence said Employer Paid Member Contributions (EPMC);
WHEREAS, the governing body of the City of West has identified the following
conditions for the purpose of its election to pay EPMC:
• This benefit shall apply to the following employee groups or classes:
Fire Management Employees' Association
Police Management Employees' Association
Fire Management Employees' Association
Maintenance & Crafts Employees' Association
Non-Sworn Safety Support Employees' Association
West Covina Firefighters' Association
West Covina Police Officers' Association
• This benefit shall consist of paying the following percentages of the of the normal
member contributions as EPMC:
Police Management Employees' Association — 9%
Fire Management Employees' Association — 9%
Maintenance & Crafts Employees' Association - 6%. Will be 0% effective
January 7, 2012
Non-Sworn Safety Support Employees' Association — 6%. Will be 0% effective
January 7, 2012
West Covina Firefighters' Association — 9%
West Covina Police Officers' Association — 9%
• The terms of this Resolution shall be July 1, 2011.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of West Covina
elects to pay EPMC, as set forth above.
APPROVED AND ADOPTED on this 20th day of December 2011.
Mayor Michael Touhey
ATTEST:
City Clerk Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 20 th day of December, 2011 by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman