Laserfiche WebLink
7.B. - Page 2 <br /> � Standard Method reduces the City's rate gradually over time with better predictability, <br /> this makes payroll administration and financial forecasting more consistent and <br /> predictable. As a result, staff recommends amending the contract using the Standard <br /> Method. <br /> ALTERNATIVES <br /> Pursue other alternatives as directed by the City Council. <br /> FISCAL IMPACT <br /> The proposed changes will not result in significant immediate savings. However, <br /> savings to the City will accrue as new employees are hired under the second tier <br /> retirement formulas. The City's employer contribution rate will occur gradually <br /> beginning on July 1, 2013. Ultimately, when all employees are under the second tier, <br /> the expected normal cost would be 3.8% less for Miscellaneous employees and 3.1% <br /> for Safety employees. To put this savings in perspective, if the second tier formulas <br /> were applied to all current employees, the FY 2011-12 payroll would be reduced by <br /> approximately $1.8 million. <br /> ENVIRONMENTAL REVIEW <br /> Adoption of the resolution and the contract amendment by ordinance do not constitute a <br /> "projecY' under the California Environmental Quality Act (CEQA Guidelines §15378). <br /> • <br /> `-- � --_ <br /> REBECCA BURNSIDE � <br /> HUMAN RESOURCES DIRECTOR <br /> '�' � i�".�..�� <br /> ROBERT BELL <br /> CITY MANAGER <br /> , ATTACHMENTS <br /> 1. Final Resolution to Approve an Amendment to Contract Between the Board of <br /> Administration California Public Employees' Retirement System and the City <br /> Council of Redwood City. <br /> 2. Contract Amendment (Exhibit A to both Resolution and Ordinance) <br /> 3. Ordinance of the City Council of the City of Redwood City Authorizing an <br /> Amendment to the Contract Between the City Council of Redwood City and the <br /> • <br />