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CC - 04-16-85 - Adjourned MeetingAPPROVED CITY OF ROSEMPAD DATE MINUTES OF THE ADJOURNED MEETING R;, ROSEMEAD CITY COUNCIL e APRIL 16, 1985 AT 8:00 P. M. The Adjourned Meeting of the Rosemead City Council was called to order by Mayor Taylor at 8:15 p. m., in the Conference Room of City Hall, 8838 E. Valley Boulevard, Rosemead, California. ROLL CALL OF OFFICERS: Present: Councilmen Bruesch, Cleveland, Imperial, Tury and Mayor Taylor Absent: None APPROVAL OF THE MINUTES: APRIL 2, 1985 - ADJOURNED MEETING MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN CLEVELAND that the Council Minutes of April 2, 1985 be approved. Vote re- sulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. APPROVAL OF MINUTES: APRIL 8, 1985 - ADJOURNED MEETING MOTION BY COUNCILMAN CLEVELAND, SECONDED BY COUNCILMAN IMPERIAL that the Council Minutes of April 8, 1985 be approved. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. I. CITY'S RETIREMENT SYSTEM Frank G. Tripepi, City Manager, commented that Donald Wagner would be presenting a summary of the proposal which had been provided for the Council's consideration and also Dennis Graves who is an independent consultant will speak about the existing retirement system the City now has and the ramifica- tions of amending the existing contract. Donald Wagner, Assistant City Manager, stated that what is being requested is a change in the benefit formula of the City's Retirement System.and added that basically what is being proposed is that the plan include a 2% per year of service based upon the highest five years average,earnings with every year of partici- pation with Retirement at age 60. He stated that exhibits were attached which compare the existing plan to the proposed plan, an example of an employee retirement benefit and a comparison of other Cities Retirement Systems. Councilman Cleveland stated that after reviewing the exhibits attached had no objection to the retirement at 60, although he did at first. Mayor Taylor stated that he still had an.objection because he didn't know about all the other cities that had not been listed and what their retirement age was. Frank G. Tripepi, City Manager, stated that to his knowledge Rosemead is the only City in Los Angeles County that is not in PERS, and could confirm that in writing to the Council. Councilman Tury inquired if the 14% contribution by the City include the'Social Security portion. Frank G. Tripepi stated that it did not. Councilman Tury stated it would then be approximately a 21% contribution by the City for the employees. Councilman Imperial felt that the present Retirement System for the Rosemead employees is pitiful and completely inadequate. CM 4-16-85 Page #1 Councilman Imperial also felt that an employee should not have to wait until age 60 to retire, using the example that if someone came to work for the City at the age of 20 and worked 30 years would then be 50 and he felt that would be an appropriate age to be eligible for retirement. Frank G. Tripepi, City Manager, stated that the employee can retire at a lower age; however, they would be taking a re- duction in benefits. He added that the employee could leave in his retirement benefits and let it be part of the program which would be.earning interest and then collect full benefits at the required retirement age. Dennis Graves stated that the City's annual.contribution for the proposed plan would be $107,000. He commented that the proposed plan reflects the age and service of the City's employees and the fund which has been built up since 1970 when the plan first started; however, the contributions have not been regularly put into the fund and so the fund is smaller than it should be. He added that the funding in the past does not matter as much as the funding in the future. He stated that he expected that the contributions by the City would decrease as a percentage, of pay- roll and the cost should be viewed as a percentage of payroll; . Councilman Bruesch inquired if the employees who have al- ready retired would be'entitled to benefits under this proposed plan retroactively? Frank G. Tripepi, City manager, stated that the proposed plan would be available to all current employees who are on the payroll. He did state that if this plan is 'not approved retro- actively it would penalize the long term employee. Councilman Imperial stated that he had no problem making this proposed plan retroactive because if we thought an employee was good enough to keep for 15 years, the negligence would be on the part of the City for not taking care of the employees better than has been done in the past. Mayor Taylor did not feel that double dipping was appro- priate and it is the public agencies that are doing it. Hugh Foutz, City Treasurer, felt that retroactive portion was offensive to him personnally, with the last five year aver- aging and paying benefits for the 15 years service. He felt that was a very generous adjustment. He stated that he felt that the formula should be improved and the five year income averaging was appropriate; however, he did not feel the retroactive portion of the plan was. Robert Kress, City Attorney, stated that this was not a retroactive plan at all. It is a proposed change of benefits for the existing employees. It is a change in the formula. MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN CLEVELAND that Benefit Formula A, B, & C be approved. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. MOTION BY MAYOR TAYLOR, SECONDED BY COUNCILMAN TURY that the eligibility Age of 65 be maintained. Vote resulted: AYES: Councilmen Bruesch, Tury., and Mayor Taylor. NAYES,: Councilman Imperial and Cleveland ABSENT: None ABSTAIN: None Whereupon the Mayor declared said motion duly carried and so ordered. MOTION BY COUNCILMAN BRUESCH, SECONDED BY COUNCILMAN TURY that for early retirement the benefit be reduced by 5% for each year early. Vote resulted: UPON ROLL CALL,ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. CM 4-16-85 Page #2 MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN BRUESCH that vesting in the plan be 100% after 5 years of service, and 0% prior to that time. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. Everything in the proposed plan where it states 60 years will continue to be 65 years. MOTION BY COUNCILMAN TURY, SECONDED BY IMPERIAL that the proposed plan applies to all current employees. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. Mayor Taylor requested that the plan be put together in total form. 2. ACQUISITION OF 2759 DEL MAR AVENUE MOTION BY COUNCILMAN IMPERIAL, SECONDED BY COUNCILMAN TURY that acquisition of 2759 Del Mar Avenue be authorized. Vote re- sulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. 3. Councilman Bruesch commented that he had been told that there are some things that are being moved back in at the Angelus property. Frank G. Tripepi, City Manager, stated that he would have that property checked and it would be part of the status report on the Rehab Agenda for next Tuesday night. Respectfully submitted: APPROVED: L- MAYOR .0% dueyc.a..~ City Clerk CM 4-16-85 Page. #3