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Home My WebLink About2012-05-22; City Council; 20909; Public Hearing Input on Propsed Charter AmendmentCITY OF CARLSBAD - AGENDA BILL 11 AB# 20,909 Public Hearing to Receive Input on Proposed Charter Amendment DEPT.DIRECfel i J—t—'\— MTG. 5/22/12 Public Hearing to Receive Input on Proposed Charter Amendment CITY ATTY. r^ DEPT. Clerk/Records Public Hearing to Receive Input on Proposed Charter Amendment CITY MGR. RECOMMENDED ACTION: Hold a Public Hearing to receive testimony from Carisbad residents regarding submittal of a proposed amendment to the City Charter to the qualified voters at the November 6, 2012 General Municipal Election. ITEM EXPLANATION: This is the second of two public hearings that City Council is required to hold per California Assembly Bill 1344 (effective in January 1, 2012), Govemment Code Section 34458(b), on any proposed amendment to the City Charter before Council can submit it to the voters. Council held the first public hearing to receive testimony on the proposed amendment on April 10, 2012. AB 1344 also requires 21 days to pass after the second public hearing is held before Council can vote on the matter. The scheduled date for Council to vote on the submis-sion of thft proposed Charter Amendment is June 26, 2012. The Carlsbad City Charter, adopted in June 2008, was amended at the November 2, 2010 General Municipal Election by the addition of Section 502 "Retention of Benefits," pertaining to the retirement benefits of safety employees. The Carlsbad City Charter, adopted in June 2008, was amended at the November 2, 2010 General Municipal Election by the addition of Section 502 "Retention of Benefits," pertaining to the retirement benefits of safety employees. Section 502 ofthe Carlsbad Citv Charter currentlv reads: "Section 502 Retention of Benefits. Safety employees hired on or after October 4, 2010 (the effective date of the ordinance amending the City's Contract with CalPERS to create a second tier of retirement benefits for safety employees) shall not have their retirement benefit formula (commonly known as the 2% at 50 years of age formula) increased without an amendment to this section. The City Council may reduce this formula as provided in state law without an amendment to this section." DEPARTMENT CONTACT: Karen Kundtz 760-434-2808 karen.kundtza.carisbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED & DENIED • CONTINUED • WITHDRAWN • AMENDED • CONTINUED TO DATE SPECIFIC • CONTINUED TO DATE UNKNOWN • RETURNED TO STAFF • OTHER - SEE MINUTES • REPORT/PRESENTATION X RECEIVED Page 2 At its June 21, 2011 meeting Council directed staff to amend the City's contract with the California Public Employees' Retirement System (CalPERS) to create a 2""^ tier retirement plan for miscellaneous employees hired after November 27, 2011, at the 2% @ 60 retirement formula. Council desires to submit to the qualified voters of Carisbad, an amendment to Section 502 "Retention of Benefits" to include the 2% @ 60 retirement formula for miscellaneous employees hired by the City after November 27, 2011. Proposed Charter Amendment ballot question and text: Shall Section 502 Retention of Benefits of the Charter of Carlsbad, California be amended to include limiting increases in retirement benefits for miscellaneous employees without an amendment to this section? Text: Section 502 Retention of Benefits. Safety employees hired on or after October 4, 2010 and miscellaneous employees hired after November 27, 2011 (the effective date ofthe ordinances amending the City's contracts with CalPERS to create a second tier of retirement benefits for safety and miscellaneous employees) shall not have their retirement benefit formulas (commonly known as the 2% at 50 years of age or 2% at 60 year of age formulas respectively) increased without an amendment to this section. The City Council may reduce this formula as provided in state law without an amendment to this section. Note: If this measure fails to pass, Section 502 ofthe existing Charter will remain unchanged. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has not potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. FISCAL IMPACT: Charter Amendment: There is no immediate fiscal impact associated with implementing the changes to the retirement provisions as described above. It is estimated that the City will realize long-term savings of approximately $5 million over a span often years as a result ofthis action, but employee turnover and other factors will influence the extent of this projected savings. Election Costs: The cost of the election is estimated at $100,000, however, variables which could change the cost are the number of candidates and the number of registered voters. The recommended budget for FY 2012-13 includes the necessary funds to cover the costs related to the election. EXHIBITS: 1. Notice of Public Hearing. 2. Text of Section 502 Retention of Benefits showing amended language. EXHIBIT 1 NOTICE OF PUBLIC HEARING CITY OF CARLSBAD PROPOSED CHARTER AMENDMENT NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that a public hearing will be held by the City Council of the City of Carisbad in the Council Chambers of the City of Carisbad, 1200 Carisbad Village Drive, Carisbad, Califomia, on Tuesday, May 22, 2012, at 6:00 p.m., to receive testimony from Carisbad residents regarding the submittal of a proposed amendment to the City Charter to the qualified voters at the November 6,2012 General Municipal Election. This is the second of two public hearings required by Califomia Assembly Bill 1344 (effective in January 1, 2012), Seclion 34458(b) regarding any proposed amendment to the City Charter. On April 10, 2012, City Council heW the first public hearing to receive testimony regarding the proposed charter amendment. AB 1344 further prohibits City Council fi'om voting on the submission of the proposed charter amendment to the voters until 21 days after the second public hearing. The scheduled date for Council to vote on this matter is June 26, 2012. The Carlsbad City Charter, adopted in June 2008, was amended at the November 2, 2010 General Municipal Election by the addition of Section 502 "Retention of Benefits," pertaining to the retirement benefits of safety employees. Council desires to submit for consideration to the qualified voters of Carisbad, an amendment to Section 502 "Retention of Benefits' to include the 2% @ 60 retirement fomiula for miscellaneous employees hired by the City after November 27, 2011. At the public hearing, Council will hear testimony for and against the proposed amendment to the Charter. If unable to attend the public hearing, written comments on any aspect of the proposed amendment, are invited and should be addressed to the City Cleric's Office, City of Carisbad, 1200 Carisbad Village Drive. Copies of the agenda bill with the text of the proposed amendment will be available on and after May 18, 2012. If you have any questions, please contact City Attomey Ron Ball at (760) 434-2891 or attomey(gcarisbadca.gov. Persons with a disability may request an agenda packet in appropriate altemative formats as required by the Americans with Disabilities Act of 1990 by contacting the City Manager's office at (760) 434- 2821 (voice), 711 (free relay service for TTY users), 760-720-9461 (fax) or manager@carisbadca.gov by noon on the Monday preceding the meeting. All persons requiring reasonable accommodations or auxiliary aids in order to effectively participate in the meeting may contact the City Manager's office by noon on the Monday preceding the meeting to make such an-angements. CARLSBAD CITY COUNCIL PUBLISH: April 26, 2012 and May 1, 2012 Exhibit 2 PROPOSED CHARTER AMENDMENT "Section 502 Retention of Benefits Safety employees hired on or after October 3, 2010 and miscellaneous emplovees hired after November 27, 2011 (the effective date of the ordinances amending the city's contracts with CalPERS to create a second tier retirement benefits for safety employees and miscellaneous emplovees) shall not have their retirement benefit formulas (commonly known as 2% at 50 years of age or 2% at 60 years of age formulas respectively) increased without an amendment to this secfion. The City Council may reduce this formula as provided in state law without an amendment to this section." Highlighted words would be added ifthe Charter Amendment is approved by voters. i