THIS ARTICLE HAS BEEN CLARIFIED REGARDING THE EMPLOYER CONTRIBUTION LISTED AT THE END OF THE ARTICLE AND THE LPOA CONCESSIONS MENTIONED IN PARAGRAPH FOUR.
LAKEPORT – In a special Tuesday evening meeting that lasted barely six minutes, a divided Lakeport City Council voted to approve a resolution that would upgrade the retirement benefits for the city's police officers.
In a 3-2 vote the council managed to pass a motion that last week failed to get even a second, but the council members, for the most part, seemed none too happy about the decision.
Lakeport Police Officers Association President Norm Taylor said after the meeting, “The LPOA felt we were in contract and felt that we had negotiated the increased retirement benefit, and we expected that the city would fulfill their agreement at some point and we're glad to see they voted this way.”
A 2006 memorandum of understanding reached between the city and the Lakeport Police Officers Association gave several concessions to the city – including a new health insurance plan that was less expensive for the city initially with officers also taking less of a cost of living increase – in exchange for the city's agreement to upgrade the retirement plan from 2 percent at age 50 to 3 percent at age 50, effective this past July 1.
That formula gives a retirees starting at age 50 a benefit value of 3 percent for every year of service. Last week City Attorney Steve Brookes said the formula was considered a way to draw high quality staff.
The city's proposed 2010-11 budget already covers the $73,158.06 in increased costs to the city this year that changes to the new formula would cause, with officials reporting that those costs were covered by two unbudgeted and vacant police officer positions.
Despite the fact that the costs were covered and the city made a promise to the police officers association, last week the council had balked at approving the agreement, citing concerns about increased costs and the city's finances, as Lake County News has reported.
On Tuesday evening, city Finance Director Janet Tavernier said Councilman Ron Bertsch had questions about the cost percentages, which she checked with Sebastopol actuary Nick Franceschine, who had been at last week's meeting but did not attend the special meeting.
She said Franceschine told her that for the first 12 years of the plan the employers' portion would range between 35 and 42 percent of the total cost, with the California Public Employees Retirement System (CalPERS) estimating it would come in at about 38 percent.
That percentage will be cut in half after 12 years if there are no dramatic changes to the plan and if the work force remains the same, Tavernier told the council. CalPERS expects to make a 7.75 percent return on the plan.
“We have to act on a plan before Aug. 1 of every year,” Tavernier said, otherwise CalPERS will not work on the new plan amendment until November or December.
Last week, the council had directed Brookes to speak with the police officers association to see if they were willing to renegotiate the agreement.
Brookes told them on Tuesday that he had spoken to Taylor, who was in the audience for the meeting, and that Taylor said the group believed that their contract provisions should be ratified.
Community member George Spurr asked when the contract ends. Mayor Jim Irwin said it expires at the end of this calendar year.
Bertsch asked Brookes if any officers were planning to retire between now and December. Brookes indicated there might be two.
When Irwin asked the council for its desired action, Councilman Roy Parmentier said they would “catch hell” if they didn't honor what they had promised.
However, “Come the first of this year we're going to be looking for some changes,” including a two-tier retirement program, he said.
“I realize we made the deal with you guys and we'll live with it,” he said.
Councilman Bob Rumfelt moved to approve the resolution and introduced the ordinance to amend the CalPERS contract to make the changes, which will be the focus of an Aug. 17 public hearing.
Parmentier seconded the motion, which the council approved 3-2, with Bertsch and Council member Suzanne Lyons voting no.
Tavernier told Lake County News after the meeting that all other city workers – those in the “miscellaneous” not the “safety” designation – receive a 2.5 percent at 55 retirement package, with employees contributing 8 percent per month. The total employer cost is another 16.5 percent..
For police officers, they pay 9 percent per month, and currently the employer contribution is 28 percent, but will rise to 38 percent due to the new plan, Tavernier said.
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