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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />May 7, 2007 <br />TITLE: <br />AMEND THE CITY'S CONTRACT <br />WITH THE PUBLIC EMPLOYEES' <br />RETIREMENT SYSTEM FOR <br />CREDIT FOR SED SICK LEAV13 <br />CI Y MANAGER <br />RECOMMENDED ACTION <br />1. Receive and file. <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1 ~' Reading <br />^ Ordinance on 2nd Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />2. Continue consideration of Ordinance to May 21, 2007. <br />DISCUSSION <br />California Government Code Section 7507 requires that the future annual <br />cost of the proposed contract amendment be made public at least two weeks <br />prior the adoption of the final ordinance. <br />In accordance with the Memorandum of Understanding between the City of <br />Santa Ana and the Santa Ana Police Officers Association for FY 2004-2008 <br />the City agreed to provide Credit for Unused Sick Leave benefits for local <br />safety members effective July 1, 2007. This benefit is currently provided <br />to miscellaneous City employees. <br />The Unused Sick Leave Credit Benefit allows unused accumulated sick leave, <br />at the time of retirement, to be converted to additional service credit <br />pursuant to a formula established by the Public Employees' Retirement <br />System. <br />The above benefit will be offered along with the current options. <br />Currently sick leave may be used for payment of medical insurance premiums <br />or may be converted to cash for payment based on established formulas. <br />Under this contract amendment conversion of sick leave to service credit <br />allows the City to pay funds out over a thirty year period of time. <br />The Ca1PERS actuarial valuation determined this will result in an accrued <br />liability of $2,328,279. <br />11 B-1 <br />