In accordance with the Memorandum of Understanding (MOU) which was ratified by the Sunnyvale Employees Association (SEA) on March 21, 2000, and adopted by the City Council on March 28, 2000, this report recommends adopting the necessary resolution to commence reporting the value of employer paid member contributions (EPMC) of seven percent (7.0%) as compensation for employees represented by SEA.

PERS defines two categories of public employees who are covered under the system (1) Miscellaneous employees and (2) Safety employees. For the City of Sunnyvale, members represented by the Sunnyvale Employees Association (SEA), the Communication Officers Association (COA), Service Employees International Union, Local 715 (SEIU) representing regular part-time employees, and unrepresented management and confidential employees are Miscellaneous members under PERS. Employees represented by the Public Safety Officers Association (PSOA), and sworn management employees are Safety members under PERS.

The Memorandum of Understanding (MOU) with SEA provides that the City shall adopt the necessary resolutions and obtain written confirmation of compliance from PERS to report the value of employer paid member contributions (EPMC) as additional compensation for each SEA-represented employee retroactive to August 8, 1999.

Currently, the amount of the employer paid member contribution is not reported as compensation, as this option was not offered by PERS prior to July 1, 1994.

Effective July 1, 1994, under Government Code Section 20636(c), an employer now has the option of reporting the value of employer paid member contributions (EPMC) to CalPERS as additional compensation. This provision must be adopted and applied equally to everyone in a group or class of employment.

This option was negotiated as part of the 1999-2004 MOU with SEA, and will produce increased retirement benefits for SEA-represented employees.

The fiscal impact of this benefit, has been planned for within the Benefits Fund and was included in costing the entire benefits package for SEA. Further, the cost of this benefit is shared with SEA.

The public is notified of this action through placement on the City Council Agenda. Employees represented by SEA are notified by receipt of a copy of this report to the SEA president.

Alternative #1; adopt the attached Resolution authorizing the City to report the value of employer paid member contributions (EPMC) as additional compensation for each SEA-represented employee retroactive to August 8, 1999, and adopt the Salary Resolution amendment as proposed.