HomeMy WebLinkAbout- - CMDMA and EPMC Resolution - 4/3/2012CITY COUNCIL AGENDA REPORT
MEETING DATE: April 3, 2012 ITEM NUMBER:
SUBJECT: ADOPT THE LETTER OF AGREEMENT FOR THE COSTA MESA DIVISION
MANAGERS' ASSOCIATION AND CITY COUNCIL RESOLUTION REGARDING
EMPLOYER PAID MEMBER CONTRIBUTION (EPMC).
DATE: MARCH 19, 2012
FROM: CEO's OFFICE/HUMAN RESOURCES DIVISION
PRESENTATION BY: LANCE M. NAKAMOTO, HUMAN RESOURCES MANAGER
FOR FURTHER INFORMATION CONTACT: LANCE NAKAMOTO, AT (714) 754-5172
RECOMMENDATION:
1. Staff recommends that the City Council adopt the attached Letter of Agreement
(Attachment 1) amending Resolution #10-73 to approve an additional 1.949%
CalPERS contribution by employees represented by the Costa Mesa Division
Managers' Association (CMDMA).
2. Staff recommends that the City Council adopt the attached Resolution #12—xx for
paying and reporting the value of Employer Paid Member Contribution (EPMC) relating
to Non Safety Executive employees (Attachment II).
DISCUSSION:
At the February 7, 2012 City Council meeting, Council approved a resolution whereby at -will
executives agreed to voluntarily pay the additional 1.949%. Likewise, the City and CMDMA
representatives met on three occasions to discuss CMDMA members also paying an additional
1.949% towards the statutorily maximum CaIPERS employee contribution amount (10.469%).
Currently, CMDMA employees are paying 31.49% of their total pension costs, by agreeing to
pay the statutorily maximum employee amount, this figure will increase to 39%.
Representatives of the City and CMDMA were able to come to agreement whereby CMDMA
members have agreed to pay the additional 1.949%. Upon Council approval CMDMA members
will begin paying the maximum amount effective April 8, 2012.
In conjunction with the agreed upon changes to employee retirement contributions, City staff was
advised by CalPERS to ensure the change to EPMC amounts (now 0% for non safety executive
employees) are documented.
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ALTERNATIVES CONSIDERED:
The alternative is that the City Council could not approve the CMDMA Letter of Agreement. This
would result in the division managers continuing to contribute 8.52% of their pension costs.
FISCAL REVIEW:
The implementation of this Agreement with CMDMA will provide an annual savings to the City
of approximately $35,000.
LEGAL REVIEW:
The City Attorney's Office has reviewed the attached documents and, where appropriate,
approved them as to form.
CONCLUSION:
In order to reduce the City's employee retirement costs, the City's Division Managers' group has
agreed to pay an additional 1.949% towards the statutorily maximum CalPERS employee
contribution amount (10.469%).
W_1►[y21►TAA►L`1:I_1&130to]
Human Resources Manager
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Director of Finance and I.T.
DISTRIBUTION: Chief Executive Officer
City Clerk
TAMARA S. LETOURNEAU
Interim Asst. Chief Executive Officer
THOMAS DUARTE
City Attorney
ATTACHMENTS: 1 040312 - CMDMA Letter of Agreement
II 040312 — EPMC Resolution
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