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HomeMy WebLinkAbout08/17/1999, C7 - OCEANAIRE MANHOLE AND SEWERLINE council e> r' 0L 01- apenaa uEpoRt C7 C I TY OF- SAN LUIS O B I S P O FROM: Michael McCluskey, Public Works Direct Prepared by: Reinie.Jones,Engineering Assistant F-�S. SUBJECT: OCEANAIRE MANHOLE AND SEWERLINE CAO RECOMMENDATION: 1. Approve plans and specifications for "Oceanaire Manhole and Sewerline, Specification No. 90022" 2. Authorize staff to advertise for bids and authorize the CAO to award the contract if the lowest responsible bid is within budget.. DISCUSSION. The manhole on Oceanaire located between each end of Avalon Street has a severe grade defect that results in poor flow and significant maintenance. Sewer line on each side of the manhole also needs replacement to improve flow. This project will replace the manhole and approximately 150 meters of sewer line. Project plans and.specifications are available for review in the Council office. FISCAL IMPACT: Construction Costs $64,000 Contingencies $8,000 Engineer's Estimate $72;000 Oceanaire manhole is identified in the 1997-99 Financial Plan, Approved 1997-98 Budget, Appendix B, page 67. The project budget was $21,000. The original scope of the project was to replace the manhole and 30 meters of pipe on either:side. After completing project research, the length of pipe needing replacement was much more than in the original budget. Currently, there is $973,100 available in Waste Water Collection System Improvements to support this project and other approved collectionsystem improvements. C7-1 council do En ba i2EjJ012t C8 CITY OF SAN LUIS OBI S P O FROM: Ann Slate,Director of Human Resources(3w, Prepared By: Karen Jenny,Risk Manager�( SUBJECT: IMPLEMENTATION OFTHE uuREPORTING OF EMPLOYER PAID_ MEMBER__ _ _ _ CONTRIBUTIONS AS ADDITIONAL COMPENSATION FOR DEPARTMENT HEADS AND OTHER MANAGEMENT PERSONNEL CAO RECOMMENDATION Adopt resolution approving the reporting of the value of Employer Paid Member Contributions as additional compensation for department heads and other management personnel. DISCUSSION The City currently pays the employee's contribution to the California Public Employees' Retirement System (PERS) for all department heads and other :management personnel. Government Code .§ 20636 (c) (4) allows an employer to report the value of Employer Paid Member Contributions (EPMC) to PERS as compensation, provided that there is a written labor policy or agreement acknowledging the fact that the employer is paying and reporting the value of EPMC for every one in that group or class. Such a provision was included in the resolution adjusting salary ranges for appointed officials, department heads and other management personnel that was adopted by Council on January 21, 1997 (Resolution No. 8625). Implementationof the reporting of EPMC as compensation was to occur when the City's computer payroll system was able to handle the calculations. The Finance Department has advised us that implementation is now possible with the new payroll system. Prior to implementation, however, PERS requires that an implementing resolution be passed by the Council and forwarded to PERS' for review and written confirmation of our compliance with PERS procedures. Appointed officials will have a similar provision implemented.in January 2000. This .practice is similar to what we Have done for represented groups of employees, including Firefighters,.Fire.Battalion Chiefs and.Police Staff Officers. Changes to retirement contribution reporting for general employees and Police Officers will be implemented in January 2000. This will have the effect of increasing final compensation for the purpose of calculating retirement. Since final compensation is one of the three factors used to calculate an employee's retirement, this change will result in slightly higher retirement amounts for department heads and other management employees. C8-1 Council Agenda Report—huplementation of the Reporting of Employer Paid Member Contributions as Compensation for Department Heads and other.Management Personnel Page 2 FISCAL EMPACI' Employees will pay-the increased employee cost (9% of 9%, or 0.81%, for safety and 7% of 7% or 0.49%for non-safety)through payroll deduction. Although the impact on the employer's rate of contribution to the PERS retirement system. will not become evident until after several retirements from this group have occurred,it is not anticipated to be significant. ALTERNATIVES Do not approve the resolution and/or modify the staff recommendation. This is not recommended as the proposed implementation is consistent with the direction in the previous resolution and is consistent with what represented employees have negotiated through the collective bargaining process. ATTACIEWENT Resolution C8-2 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO IMPLEMENTING THE REPORTING OF EMPLOYER PAID MEMBER CONTRIBUTIONS AS ADDITIONAL COMPENSATION FOR DEPARTMENT HEADS AND OTHER MANAGEMENT PERSONNEL WHEREAS, the City of San Luis Obispo has the authority to implement Government Code Section 20636 (c) (4)pursuant to Section 20691; and WHEREAS, the City of San Luis Obispo has a written labor policy or agreement which specifically provides for the inclusion of normal member contributions paid by the employer on behalf of the members as additional compensation; and WHEREAS, one of the steps in the procedures to implement this section is the adoption by the governing body of the City of San Luis Obispo of a resolution giving notice of its intention to commence reporting the value of employer paid member contributions (EPMC) as compensation for all members of a group or class; and WHEREAS, the following is a statement of the proposed changes in reporting compensation to PERS: The City of San Luis Obispo elects to pay 9% of safety employees' and 7% of non- safety employees' compensation earnable as Employer Paid Member Contributions and report the same percent (value) of compensation earnable {excluding Government Code Section 20636 (c) (4)} as additional compensation. This benefit shall apply to all department heads and other management personnel. The effective date of this resolution shall be August 19, 1999. BE IT RESOLVED by the Council of the City of San Luis Obispo that Government Code Section 20636 (c) (4) shall be implemented pursuant to Section 20691 by paying and reporting the value .of Employer Paid Member Contributions for all department heads and other management personnel as indicated above. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: C8-3 Resolution No. Page:2 the foregoing resolution was adopted-this _ day of __ _ . 1999. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: effrey G. Jorgensen, City At_ mey C84