01-21-2014 - (2)9
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City of West Covina
Memorandum
TO:
FROM:
om
Mayor and City Council
Christopher J. Chung
City Manager ,
AGENDA
ITEM NO. 14
DATE January 21, 2014
Chris Freeland, Deputy City Manager/Community Services Director
SUBJECT: REQUEST FROM COUNCILMAN MIKE SPENCE REQUESTING THE
CITY COUNCIL'S CONSENSUS TO INSTRUCT CITY STAFF TO
PREPARE A REPORT ON THE STEPS NEEDED TO ELIMINATE
COUNCILMEMBERS' PARTICIPATION IN THE PUBLIC EMPLOYEE
RETIREMENT SYSTEM (PERS)
RECOMMENDATION:
It is recommended that the City Council direct staff accordingly.
DISCUSSION:
Per the City Council Standing Rules, Councilman Mike Spence is seeking the City Council's
consensus to instruct City staff to prepare a report on the steps needed to eliminate
Councilmembers' participation in the Public Employees Retirement System. Councilman Spence
does not believe City Councilmembers should collect a retirement pension for serving on the City
Council.
Government Code Section 36516.5 allows the current City Council to change compensation, but the
change would not apply until the next term. ("A change in compensation does not apply to a
councilman during his term of office; however, the prohibition herein expressed shall not prevent
the adjustment of the compensation of all members of a council serving staggered terms whenever
one or more members of such council becomes eligible for a salary increase by virtue of his
beginning a new term of office.")
Government Code Section 36516(d) says that the amounts that the City pays towards a Council
Member's retirement, health, federal, and social security benefits are not subject to the salary limits
in the Government Code, as long as those benefits are the same as those provided by the City to City
employees. It appears that the Council can adjust benefits. Ca1PERS benefits, however, generally
cannot be rescinded once the Council Members opt into Ca1PERS, unless the City's Ca1PERS
agreement allows it.
Individual Councilmembers may select to not receive Ca1PERS benefits provided by the City.
FISCAL IMPACT:
Any fiscal impact will be dependent on direction taken by the City Council.
Prepared by:
Q,09::�'D
Chris Freeland
Deputy City Manager and
Community Services Director
Ni a McKay
Director of Finance and
Administrative Services