Three Noteworthy City Council Regular Meeting Agenda Items, December 4, 2018

ABSTRACT:  Three Noteworthy City Council Special Meeting Agenda Items, December 4, 2018, including PUBLIC APPEARANCES; PUBLIC HEARINGS including CalPERS Pension Update and Consideration of an appeal of a decision by the Forest and Beach Commission to deny the removal of 13 public trees in order to construct a new sidewalk along the north side of Eighth Avenue, between Junipero Avenue and Mission Street. The CITY OF CARMEL-BY-THE-SEA CITY COUNCIL AGENDA REGULAR MEETING Tuesday, December 4, 2018 and Staff Report document copies are embedded.

Agenda City Council Regular Meeting 12-04-18 byL. A. Paterson on Scribd

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA
REGULAR MEETING
Tuesday, December 4, 2018
OPEN SESSION 4:30 PM

CALL TO ORDER AND ROLL CALL

PUBLIC APPEARANCES
Members of the Public are invited to speak on any item that does not appear on the Agenda and that is within the subject matter jurisdiction of the City Council. The exception is a Closed Session agenda, where speakers may address the Council on those items before the Closed Session begins. Speakers are usually given three (3) minutes to speak on any item; the time limit is in the discretion of the Chair of the meeting and may be limited when appropriate. Applicants and appellants in land use matters are usually given more time to speak. If an individual wishes to submit written information, he or she may give it to the City Clerk. Speakers and any other members of the public will not approach the dais at any time without prior consent from the Chair of the meeting.

PUBLIC HEARINGS

1. CalPERS Pension Update

CalPERS Pension Update

2. Consideration of an appeal of a decision by the Forest and Beach Commission to deny the removal of 13 public trees in order to construct a new sidewalk along the north side of Eighth Avenue, between Junipero Avenue and Mission Street.

Consideration of an appeal of a decision by the Forest and Beach Commission to deny the removal of 13 public trees in order to construct a new sidewalk along the north side of Eighth Avenue, between Junipero Avenue and Mission Street.
 
ADJOURNMENT

Memorandum of Understanding between The City of Carmel-by-the-Sea and City of Carmel-by-the-Sea General Unit (January 1, 2017- June 30, 2019)

ABSTRACT:  Memorandum of Understanding between The City of Carmel-by-the-Sea and City of Carmel-by-the-Sea General Unit (January 1, 2017- June 30, 2019) document copy is embedded.  HIGHLIGHTS, including ARTICLE 1: PREAMBLE, ARTICLE 2: RECOGNITION, ARTICLE 3: TERM OF CONTRACT, ARTICLE 4: COMPENSATION, ARTICLE 6: CAL-PERS RETIREMENT PLAN and ARTICLE 30: EFFECT OF AGREEMENT, are featured. 

MOU Between City of Carmel-By-The-Sea & LIUNA General 2017-2019 by L. A. Paterson on Scribd

Memorandum of Understanding between The City of Carmel-by-the-Sea and City of Carmel-by-the-Sea General Unit

January 1, 2017- June 30, 2019

HIGHLIGHTS:

ARTICLE 1: PREAMBLE

This Memorandum of Understanding (MOU) is made and entered into between the City of Carmel-by-the-Sea, hereinafter referred to as "City," and the Laborers' International Union of North America, United Public Employees of California, LIUNA!UPEC, Local 792, hereinafter referred to as "Union" pursuant to California Government Code Section 3500 et seq. The purpose of this MOU is the establishment of rates of compensation, hours of work and other terms and conditions of employment. Existing practices and/or benefits which are not referenced in this MOU and which are subject to the meet and confer process shall continue without change unless modified subject to the meet and confer process.

ARTICLE 2: RECOGNITION

2.1 The City of Carmel-by-the-Sea recognizes the Union as the exclusive representative for the following non-exempt classifications.

1. Administrative Coordinator (Fire, Planning and Building, and Public Works)

2. Assistant City Forester

3. Assistant Planner

4. Building Inspector

5. Facility Maintenance Specialist

6. Circulation Supervisor

7. Code Enforcement Officer

8. Community Activities Assistant

9. Facility Maintenance Worker

10. Finance Analyst

11. Finance Specialist

12. Financial Services Coordinator

13. Forest Care Worker

14. Hourly Library Assistant

15. Librarian I

16. Librarian II

17. Library Assistant

18. Maintenance Worker

19. Maintenance Worker/Gardener

20. Permit Technician

21. Planning Technician

22. Program Supervisor

23. Public Service Maintenance Worker I

24. Public Service Maintenance Worker II

25. Senior Maintenance Worker (Cement Mason, Equipment Operator, Sweeper Operator, Traffic Markings Painter, Mechanic)

26. Streets Supervisor

27. Tree Care Specialist

2.2 Notwithstanding any other provisions in this MOU, part time hourly positions are not entitled to any other compensation or benefit not specifically listed herein.

ARTICLE 3: TERM OF CONTRACT

3.1 The term of this MOU shall be from January 1, 2017 through June 30,2019.

ARTICLE 4: COMPENSATION

4.1 Wages:

The hourly rate salary steps for all classes in this representation unit shall be increased by two percent (2%), effective January 1, 2017.

The hourly rate salary steps for all classes in this representation unit shall be increased by an additional two percent (2%), effective January 1, 2018.

The hourly rate salary steps for all classes in this representation unit shall be increased by an additional two percent (2%), effective January 1, 2019.

ARTICLE 6: CAL-PERS RETIREMENT PLAN

6.1 Tier I: Bargaining unit members hired on or before November 1, 2011

6.1.1. The "2% at 55" retirement formula shall be available to bargaining unit members hired on or before November 1, 2011.

6.1.2. Final Compensation Based on 12-Month Period

For the purposes of determining a retirement benefit, final compensation for bargaining unit members covered by this Section mean the highest consecutive twelve (12) month period.

6.1.3. Required Member Contributions

Bargaining unit members covered by this section shall continue to pay, through payroll deduction, the 7.0% member contribution.

6.1.4. Pension Cost Sharing

Effective November 1, 2015, or when the PERS contract amendment is processed whichever is sooner, in addition to paying the 7.0% member contribution, bargaining unit members covered by this Section shall pay, through payroll deduction, an additional 1.5% of PERSable compensation towards the City's costs, for a total contribution of 8.5% toward the normal cost of pension benefits as permitted by Cal. Gov. Code Section 20516.

Effective July 1, 2016, in addition to paying the 7.0% member contribution, as well as 1.5% of the employer contribution, bargaining unit members covered by this Section shall pay, thorough payroll deduction, an additional 1.5% of PERSable compensation towards the City's costs, for a total contribution of 10% toward the normal cost of pension benefits, as permitted by Cal. Gov. Code Section 20516.

The parties acknowledge that CalPERS mandates an election by unit members, separate from ratification of this MOU, to provide for this cost sharing pursuant to Cal. Gov. Code Section 20516. As soon as practicable after the effective date of this MOU, the City will initiate the PERS contract amendment process. Upon approval and agreement from the bargaining unit and completion of the City's amendment to the PERS contract, unit member contributions will be made pursuant to Cal. Gov. Code Section 20516. If the contract amendment is not complete before the effective date of the cost sharing described in this Section, the cost sharing shall be implemented outside of a PERS contract amendment as authorized by Cal. Gov. Code Section 20516(f). The Union and the City will take all actions necessary to implement the pension cost sharing agreement described in this Section.

6.2 Tier II: Bargaining Unit Members Hired After November 1, 2011 and Prior to January 1, 2013, and Unit Members Qualified for Reciprocity (Classic Members).

6.2.1. This Section 6.2 (including subsections) shall apply to bargaining unit members hired on or after November 1, 2011 and prior to January 1, 2013. In addition, this Section 6.2 shall apply to bargaining unit members hired on or after January 1, 2013, who are qualified for pension reciprocity as stated in Cal. Gov. Code Section 7522.02(c) and related CalPERS reciprocity (Classic Member) requirements.

6.2.2. The "2% at 60" retirement formula shall be available to bargaining unit members covered by this Section.

6.3 Final Compensation Based on Three-Year Final Average

For the purposes of determining a retirement benefit, final compensation for bargaining unit members covered by this Section shall be determined by the average of the final three years of the member's salary.

6.4 Required Member Contributions

Bargaining unit members covered by this section shall continue to pay, through payroll deduction, the 7.0% member contribution.

6.5 Pension Cost Sharing

Effective November 1, 2015, in addition to paying the 7.0% member contribution, bargaining unit members covered by this Section shall pay, through payroll deduction, an additionall.5% of PERSable compensation towards the City's costs, for a total contribution of 8.5% toward the normal cost of pension benefits as permitted by Cal. Gov. Code Section 20516.

Effective July 1, 2016, in addition to paying the 7.0% member contribution, and 1.5% of the employer contribution, bargaining unit members covered by this Section shall pay, thorough payroll deduction, an additional 1.5% of PERSable compensation towards the City's costs, for a total contribution of 10% toward the normal cost of pension benefits, as permitted by Cal. Gov. Code Section 20516.

The parties acknowledge that CalPERS mandates an election by unit members, separate from ratification of this MOU, to provide for this cost sharing pursuant to Cal. Gov. Code Section 20516. As soon as practicable after the effective date of this MOU, the City will initiate the PERS contract amendment process. Upon approval and agreement from the bargaining unit and completion of the City's amendment to the PERS contract, unit member contributions will be made pursuant to Cal. Gov. Code Section 20516. If the contract amendment is not complete before the effective date of the cost sharing described in this Section, the cost sharing shall be implemented outside of a PERS contract amendment as authorized by Cal. Gov. Code Section 20516(f). The Union and the City will take all actions necessary to implement the pension cost sharing agreement described in this Section.

6.6 Tier III: PEPRA Retirement Tier Required for Bargaining Unit Members Hired On or After January 1, 2013 (Non-Classic Members)

6.6.1. This Section shall apply to bargaining unit members who were hired on or after January 1, 2013, and who do not qualify for pension reciprocity (non-Classic Members) as stated in Cal. Gov. Code Section 7522.02(c).

6.6.2. 2% at 62 Formula

The "2% at 62" retirement formula will be available to bargaining unit members covered by this Section.

6.6.3. Final Compensation Based on Three-Year Final Average Salary

For the purposes of determining a retirement benefit, final compensation for bargaining unit members covered by this Section shall be determined by the average of the final three years of the member's salary.

6.7 Required Member Contributions

As required by Cal. Gov. Code Section 7522.04(g), effective January 1, 2013, bargaining unit members covered by this Section shall pay, through payroll deduction, fifty percent (50%) of normal costs.

6.8 Pension Cost Sharing

Effective November 11, 2015, in addition to paying 50% of normal costs as described above, bargaining unit members covered by this Section shall pay, through payroll deduction, an additional 1.5% of PERSable compensation toward the City's cost of pension benefits, as permitted by Cal. Gov. Code Section 20516.

Effective July 1, 2016, in addition to paying 50% of normal costs as described above, bargaining members covered by this Section shall pay, through payroll deduction, an additional1.5% of PERSable compensation toward the City's normal cost of pension benefits as permitted by Cal Gov. Code Section 20516, for a total of 3.0% of PERSable compensation paid toward the City's costs.

The parties acknowledge that CalPERS mandates an election of unit members, separate from ratification of this MOU, to provide for this cost sharing pursuant to Government Code Section 20516. As soon as practicable after the effective date of this MOU, the City will initiate the contract amendment process. Upon approval and agreement from the bargaining unit and completion of the City's amendment to the Ca!PERS contract, unit member contributions will be made pursuant to Government Code Section 20516, Unit member Cost Sharing of Additional Benefits. 1f the contract amendment is not complete before the effective date of the cost sharing described in this Section 6.3, the cost sharing shall be implemented outside of a Ca!PERS contract amendment as authorized by Government Code Section 20516(f). The Union and the City will take all actions necessary to implement the pension cost sharing agreement described in this Section 6.3.

6.9 As permitted by Internal Revenue Code Section 414(h)(2) and Government Code Section 20516, each unit member shall pay through payroll deductions the PERS contributions described in Section 6 with state and federal income tax on the PERS member contribution deferred to the extent permitted by law, including but not limited to, Internal Revenue Code, 26 USC Section 414(h)(2).

6.10 The City shall provide bargaining unit members with those optional benefits which it has elected to provide to bargaining unit members in its contract with Ca!PERS and in accordance with the Public Employees Retirement Law.

ARTICLE 30: EFFECT OF AGREEMENT

30.1 This Memorandum of Understanding sets forth the full and complete understanding between the parties hereto. Any items, from previous agreements, not addressed in this agreement are carried forward.

Thirteen Noteworthy 4 April 2017 City Council Agenda Items

ABSTRACT: Thirteen Noteworthy 4 April 2017 City Council Agenda Items are featured, including CLOSED SESSION, PUBLIC APPEARANCES, ANNOUNCEMENTS, Monthly Reports for February 2017, Award a Construction Contract to Monterey Peninsula Engineering for the 2016-17 Sidewalk Repair Project in an amount not to exceed $162,877 and authorize a budget transfer for an amount not to exceed $70,877, Consideration of a resolution authorizing a retroactive extension of the Paramedic Service Provider Agreement between the County of Monterey and Carmel-by-the-Sea, Authorize a budget adjustment of $91,000 to fund the Junipero and Fifth Avenue Storm Drain project, Consideration of a resolution adopting the Memorandum of Understanding (MOU) between the City and Carmel-by-the-Sea Police Officers’ Association for the period January 1, 2017 through June 30, 2019 and authorize the City Administrator to execute the Memorandum of Understanding and adopt the Police Officer Association classifications salary plan in accordance with Municipal Code 2.52.520, Consideration of the consolidation of the 2018 municipal election with statewide general election, 1. Consideration of a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Carmel-by-the-Sea; and 2. Waive reading in full and introduce on first reading an Ordinance authorizing an amendment to the provisions of municipal code section 2.56 (Retirement System) and approving an amendment to the contract between the Board of Administration of the Public Employees’ Retirement System and the City Council of the City of Carmel-by-the-Sea to provide section 20516 (employees sharing additional cost) of 3% for Safety (Police) and Safety (Fire) members, Consideration of an Ordinance (Second Reading) amending Municipal Code Sections 17.14 (Commercial Zoning Districts) and 17.68 (Use Classifications) in order to modify the restaurant and food store regulations, Consideration of an Ordinance (First Reading) amending Municipal Code Sections 17.08 (Residential Zoning District) and 17.68 (Use Classifications) pertaining to accessory dwelling units in response to recently adopted state legislation and Consideration of an appeal of the Planning Commission’s decision to approve a Design Study (DS 16-239) application for the construction of a 165-square-foot bedroom addition to south (rear) of the residence and the enlargement of an existing deck on a property located in the Single-Family Residential (R-1) Zoning District. The applicants are Tom and Irene McLaughlin. The appellant is Hongxia Liu. The CITY COUNCIL AGENDA REGULAR MEETING and Staff Reports document copies are embedded.

Agenda 04-04-17 by L. A. Paterson on Scribd

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL AGENDA

REGULAR MEETING

Tuesday, April 04, 2017
CLOSED SESSION 3:00 p.m.
OPEN SESSION 4:30 p.m.

CALL TO ORDER AND ROLL CALL

CLOSED SESSION

1. LABOR NEGOTIATIONS
Pursuant to Government Code Section 54957.6(a)
Agency Designated Representatives: Zutler
Employee Organization: Ambulance, General Employees, Management, Police

2. PUBLIC EMPLOYEE PERFORMANCE REVIEW
Government Code Section 54957
Title: City Administrator

3. LITIGATION ONE MATTER
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
54956.9(c)
Order Instituting Investigation and Order to Show Cause on the Commission’s Own Motion into the Operations and Practices of Pacific Gas and Electric Company with respect to Facilities Records for its Natural Gas Distribution System Pipelines. Investigation 14-11-008 (Filed November 20, 2014)

4. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(D)(1)
Name of Case: Joanna Pfeister, Appellant/Petitioner v. City of Carmel-by-the-Sea et al, Respondent/Real Party in Interest
Appellate District Court of Appeal - Appeal Case No. H040250 - Superior Court Case No. M93437

Pursuant to Government Code Section 54956.9(D)(1)
Name of Case: State Farm General Insurance Company, Plaintiff v. City of Carmel-by-the-Sea, and Does I through 10, Defendant - Monterey County Superior Court Case No. 16CV002381

5. REAL PROPERTY NEGOTIATIONS – LEASE
Pursuant to Government Code Section 54956.8
Between Chip Rerig, Carrie Theis, and Carolyn Hardy and Sunset Cultural Center, Inc.

 
PUBLIC APPEARANCES Members of the public are entitled to speak on matters of municipal concern not on the agenda during Public Appearances. Each person’s comments shall be limited to 3 minutes, or as otherwise established by the City Council, Board or Commission. Matters not appearing on the City Council, Board or Commission’s agenda will not receive action at this meeting but may be referred to staff for a future meeting. Persons are not required to give their names, but it is helpful for speakers to state their names so that they may be identified in the minutes of the meeting.

ANNOUNCEMENTS

A. Announcements from Closed Session

B. Announcements from City Council Members

C. Announcements from City Administrator

D. Announcements from City Attorney

CONSENT AGENDA Items on the consent agenda are routine in nature and do not require discussion or independent action. Members of the Council, Board or Commission or the public may ask that any items be considered individually for purposes of Council, Board or Commission discussion and/ or for public comment. Unless that is done, one motion may be used to adopt all recommended actions.

2. Monthly Reports for February 2017.
Monthly Reports 04-04-17 by L. A. Paterson on Scribd

Monthly Reports for February 2017.

7. SR 2017-038 Award a Construction Contract to Monterey Peninsula Engineering for the 2016-17 Sidewalk Repair Project in an amount not to exceed $162,877 and authorize a budget transfer for an amount not to exceed $70,877.
Construction Contract to Monterey Peninsula Engineering 04-04-17 by L. A. Paterson on Scribd

Award a Construction Contract to Monterey Peninsula Engineering for the 2016-17 Sidewalk Repair Project in an amount not to exceed $162,877 and authorize a budget transfer for an amount not to exceed $70,877.

9. SR 2017-040 Consideration of a resolution authorizing a retroactive extension of the Paramedic Service Provider Agreement between the County of Monterey and Carmel-by-the-Sea.
Paramedic Service Provider Agreement 04-04-17 by L. A. Paterson on Scribd

Consideration of a resolution authorizing a retroactive extension of the Paramedic Service Provider Agreement between the County of Monterey and Carmel-by-the-Sea.

12. SR 2017-043 Authorize a budget adjustment of $91,000 to fund the Junipero and Fifth Avenue Storm Drain project.
Junipero and Fifth Avenue Storm Drain Project 04-04-17 by L. A. Paterson on Scribd

Authorize a budget adjustment of $91,000 to fund the Junipero and Fifth Avenue Storm Drain project.

13. SR 2017-044 Consideration of a resolution adopting the Memorandum of Understanding (MOU) between the City and Carmel-by-the-Sea Police Officers’ Association for the period January 1, 2017 through June 30, 2019 and authorize the City Administrator to execute the Memorandum of Understanding and adopt the Police Officer Association classifications salary plan in accordance with Municipal Code 2.52.520.
MOU City and Carmel-by-the-Sea Police Officers’ Association 04-04-17.pdf by L. A. Paterson on Scribd

Consideration of a resolution adopting the Memorandum of Understanding (MOU) between the City and Carmel-by-the-Sea Police Officers’ Association for the period January 1, 2017 through June 30, 2019 and authorize the City Administrator to execute the Memorandum of Understanding and adopt the Police Officer Association classifications salary plan in accordance with Municipal Code 2.52.520.

ORDERS OF BUSINESS Orders of Business are agenda items that require City Council, Board or Commission discussion, debate, direction to staff, and/or action.

15. SR 2017-046 Consideration of the consolidation of the 2018 municipal election with statewide general election.
Consolidation of the 2018 Municipal Election 04-04-17 by L. A. Paterson on Scribd

Consideration of the consolidation of the 2018 municipal election with statewide general election.

PUBLIC HEARINGS

16. SR 2017-047 1. Consideration of a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Carmel-by-the-Sea; and 2. Waive reading in full and introduce on first reading an Ordinance authorizing an amendment to the provisions of municipal code section 2.56 (Retirement System) and approving an amendment to the contract between the Board of Administration of the Public Employees’ Retirement System and the City Council of the City of Carmel-by-the-Sea to provide section 20516 (employees sharing additional cost) of 3% for Safety (Police) and Safety (Fire) members.
Amendment CalPERS With Attachments 04-04-17 by L. A. Paterson on Scribd

1. Consideration of a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Carmel-by-the-Sea; and 2. Waive reading in full and introduce on first reading an Ordinance authorizing an amendment to the provisions of municipal code section 2.56 (Retirement System) and approving an amendment to the contract between the Board of Administration of the Public Employees’ Retirement System and the City Council of the City of Carmel-by-the-Sea to provide section 20516 (employees sharing additional cost) of 3% for Safety (Police) and Safety (Fire) members.

18. SR 2017-049 Consideration of an Ordinance (Second Reading) amending Municipal Code Sections 17.14 (Commercial Zoning Districts) and 17.68 (Use Classifications) in order to modify the restaurant and food store regulations.
Ordinance (Second Reading) Amending Municipal Code Sections 17.14 & 17.68 04-04-17 by L. A. Paterson on Scribd

Consideration of an Ordinance (Second Reading) amending Municipal Code Sections 17.14 (Commercial Zoning Districts) and 17.68 (Use Classifications) in order to modify the restaurant and food store regulations.

19. SR 2017-050 Consideration of an Ordinance (First Reading) amending Municipal Code Sections 17.08 (Residential Zoning District) and 17.68 (Use Classifications) pertaining to accessory dwelling units in response to recently adopted state legislation.
Ordinance (First Reading) Amending Municipal Code Sections 17.08 & 17.68 04-04-17 by L. A. Paterson on Scribd

Consideration of an Ordinance (First Reading) amending Municipal Code Sections 17.08 (Residential Zoning District) and 17.68 (Use Classifications) pertaining to accessory dwelling units in response to recently adopted state legislation.

20. SR 2017-051 Consideration of an appeal of the Planning Commission’s decision to approve a Design Study (DS 16-239) application for the construction of a 165-square-foot bedroom addition to south (rear) of the residence and the enlargement of an existing deck on a property located in the Single-Family Residential (R-1) Zoning District. The applicants are Tom and Irene McLaughlin. The appellant is Hongxia Liu.
Appeal of Planning Commission’s decision 04-04-17.pdf by L. A. Paterson on Scribd

Consideration of an appeal of the Planning Commission’s decision to approve a Design Study (DS 16-239) application for the construction of a 165-square-foot bedroom addition to south (rear) of the residence and the enlargement of an existing deck on a property located in the Single-Family Residential (R-1) Zoning District. The applicants are Tom and Irene McLaughlin. The appellant is Hongxia Liu.

CalPERS Board of Administration Agenda Item 8c April 20, 2016: Proposed Decision – In the Matter of the Appeal of Final Compensation of ANDREW MILLER, Respondent, and CITY OF MONTEREY, Respondent

ABSTRACT: Administrative Law Judge Jill Schlichtmann, State of California, Office of Adtninistrative Hearings, heard this matter on February 2, 2016, in Salinas, California, and issued PROPOSED DECISION February 16, 2016. ORDER The appeals of Andrew Miller and the City of Monterey are denied.

Item Name: Proposed Decision – In the Matter of the Appeal of Final Compensation of ANDREW MILLER, Respondent, and CITY OF MONTEREY, Respondent.

Attachments

Attachment A: Proposed Decision
Attachment B: Staff’s Argument
Attachment C: Respondent(s) Argument(s)

Procedural Summary

Respondent Miller submitted an application for service retirement and has been receiving a retirement allowance since July 9, 2013. CalPERS informed Respondents that $427.71 paid semi-monthly to Respondent Miller for additional duties during his last 13 months of employment, and reported as special compensation, would not be included in the final compensation. Respondent Miller and Respondent City appealed this determination and the matter was heard by the Office of Administrative Hearings on February 2, 2016. A Proposed Decision was issued on February 16, 2016, denying the appeals.

CalPERS Board of Administration Agenda Item 8c April 20, 2016, ATTACHMENT A THE PROPOSED DECISION, ATTACHMENT B STAFF'S ARGUMENT and  ATTACHMENT C

RESPONDENTS ARGUMENTS document copies are embedded. 

AGENDA ITEM 8 – PROPOSED DECISIONS OF ADMINISTRATIVE LAW JUDGES

On MOTION by Henry Jones, SECONDED by Ron Lind and CARRIED, the Board adopted the proposed decisions of Administrative Law Judges (ALJ) for Agenda Items 8a through 8n, minus 8e, 8i, and 8m, as the Board’s own decisions with the minor modifications to Agenda Item 8k, as argued by staff.

SOURCE: CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

BOARD OF ADMINISTRATION

MINUTES OF MEETING

Wednesday, April 20, 2016

item8c-00 by L. A. Paterson on Scribd

CalPERS Board of Administration Agenda Item 8c April 20, 2016

item8c-attacha by L. A. Paterson on Scribd

ATTACHMENT A
THE PROPOSED DECISION
BEFORE THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
In the Matter of the Appeal of Final Compensation of: ANDREW MILLER, Respondent, and CITY OF MONTEREY, Respondent.

item8c-attachb by L. A. Paterson on Scribd

ATTACHMENT B
STAFF'S ARGUMENT
STAFF'S ARGUMENT TO ADOPT THE PROPOSED DECISION

item8c-attachc by L. A. Paterson on Scribd

ATTACHMENT C
RESPONDENTS ARGUMENTS
(None Submitted)

CalPERS Compensation Review of Former Public Safety Director/Police Chief Michael Calhoun

ABSTRACT: With regard to CalPERS compensation review of former Public Safety Director/Police Chief Michael Calhoun, the TIMELINE, RELEVANT DOCUMENTS and NOTES are featured. Document copies include California Public Employees’ Retirement System sample template letter regarding CalPERS review of compensation, Michael B. Calhoun City Compensation December 2011-December 2016, CarmelbytheSea Mail Re: Participant Name: Michael B Calhoun CalPERS, including 4 attachments, 2015-062 Management Salary Resolution.pdf, Pay Schedule_At Will.pdf, Employment Agreement_2015.pdf and Employment Agreemen_2013.pdf.

TIMELINE:

·         In late November/early December 2016, then-Public Safety Director Michael Calhoun is notified by California Public Employees’ Retirement System of CalPERS review of his compensation.

·         Later, a private citizen files a report of potential Retirement Benefits Fraud or Abuse with CalPERS involving Michael Calhoun’s compensation, specifically from March 1, 2016 to December 30, 2016. (City Administrator Chip Rerig commenced as city administrator on March 1, 2016.)

·         In early January 2017, Taras Kachmar, Compensation Review and Analysis, CalPERS Employer Account Management Division, contacts the City requesting position title(s) during this period and a copy of the relevant pay schedules, copies of any employment contracts, labor agreements, MOUs, etc., Calhoun had with the City during this period (payroll reported by the City for Mr. Calhoun from December 2011 to December 2016 previously transmitted to Mr. Kashmar).

RELEVANT DOCUMENTS: 

Cru Letter Template by L. A. Paterson on Scribd

California Public Employees’ Retirement System sample template letter regarding CalPERS review of compensation

Calhoun Dec 2011 Dec 2016 by L. A. Paterson on Scribd

City of Carmel-by-the-Sea
Employee Detail History Print
Employee Michael B. Calhoun
City Compensation December 2011-December 2016

Carmel-By-The-Sea Mail - Re_ Participant Name_ Michael B Calhoun CalPERS ID_ 4133025525_Redacted by L. A. Paterson on Scribd

CarmelbytheSea Mail Re: Participant Name: Michael B Calhoun CalPERS
Maxine Gullo
To: [email protected]
Fri, Jan 13, 2017
Taras Kachmar
Compensation Review and Analysis
CalPERS Employer Account Management Division
Request for position title(s) during this period and a copy of the relevant pay schedules copies of any employment contracts, labor agreements, MOUs, etc., Calhoun had with the City during this period
4 attachments
2015-062 Management Salary Resolution.pdf
Pay Schedule_At Will.pdf
Employment Agreement_2015.pdf
Employment Agreemen_2013.pdf

2015-062 Management Salary Resolution_Redacted by L. A. Paterson on Scribd

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2015-062
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE CITY ADMINISTRATOR TO ESTABLISH SALARY RANGES FOR CERTAIN MANAGEMENT POSITIONS

Pay Schedule_At Will by L. A. Paterson on Scribd

CITY OF CARMEL-BY-THE-SEA
PAY SCHEDULE FOR AT-WILL CLASSIFICATION
EFFECTIVE JANUARY 1, 2016

Employment Agreement 2015 Redacted by L. A. Paterson on Scribd

EMPLOYMENT AGREEMENT
City of Carmel-by-the-Sea
PUBLIC SAFETY DIRECTOR/INTERIM CITY ADMINISTRATOR
THIS AGREEMENT is between the CITY OF CARMEL-BY-THE-SEA ("CITY"), and MIKE CALHOUN ("EMPLOYEE") and is dated this 30th day of November, 2015.

Employment Agreemen 2013 (1) Redacted by L. A. Paterson on Scribd

EMPLOYMENT AGREEMENT
City of Carme1-by-the-Sea
PUBLIC SAFETY DIRECTOR
THIS AGREEMENT is between the CITY OF CARMEL-BY-THE-SEA ("CITY") and Mike Calhoun ("EMPLOYEE") and is dated this 16th day of August, 2013.

NOTES:
1. With or without a private citizen filing a Retirement Benefits Fraud or Abuse report with CalPERS regarding former Public Safety Director/Police Chief Michael Calhoun, CalPERS intended to review Calhoun’s compensation regardless.

2. In the MONTEREY COUNTY WEEKLY news article entitled, “CalPERS looks into pay for retired Carmel police chief,” former Public Safety Director/Police Chief Michael Calhoun states that he was acting assistant city administrator between March 1, 2016 and September 1, 2016 whereas Human Resources Manager Maxine Gullo, in response to a request from Taras Kachmar, Compensation Review and Analysis, CalPERS Employer Account Management Division, for Calhoun’s position title(s) during this period, states that Calhoun served as Public Safety Director/Interim City Administrator from November 30, 2015 to August 31, 2016.

3. With regard to Michael Calhoun’s compensation during 2016, evidence suggests that City Administrator Chip Rerig facilitated or condoned the City’s compensation and CalPERS Retirement benefits abuse with apparently no respect for taxpayers or the public at large.

REFERENCE: CalPERS looks into pay for retired Carmel police chief. Pam Marino, Feb 2, 2017

CORRRECTIONS & CLARIFICATIONS: Taxpayers stuck with $72,000 retirement bill, By MARY SCHLEY, The Carmel Pine Cone, December 2, 2016, 1A & 27A

 RE: A CHANGE that was to save the city tens of thousands of dollars by having employees contribute more of their own money toward their retirements was approved by the workers and the city council more than a year ago. But the change was never implemented, human resources manager Maxine Gullo discovered during an examination of city records. Gullo, who was hired six months ago, also found that the city was behind on its payments to the union’s separate pension plan.

“I was going through our contracts, making sure we were current and in compliance,” she told The Pine Cone. “When I realized those deductions were not being held back, that was when I backed up to figure out why, and it was because the CalPERS paperwork had not been completed.”

“Although employees in this bargaining unit agreed to pay, staff failed to process the required CalPERS documents, and employees have not been required to pay the additional member contribution,” Gullo said in her report to the council.

The state requires that certain procedures be followed in order to impose such amendments, including the council adopting a resolution of intent, the employees voting in a “secret ballot election,” the city certifying that the future annual costs were made public, and then the council adopting an ordinance on first and second reading.

SOURCE: Taxpayers stuck with $72,000 retirement bill, By MARY SCHLEY, The Carmel Pine Cone, December 2, 2016, 1A & 27A

However, e-mail correspondence per public records act requests demonstrates that contrary to the aforementioned reporting by The Carmel Pine Cone that Human Resources Manager Maxine Gullo “discovered” CalPERS cost sharing had not been implemented, Public Safety Director/Police Chief Mike Calhoun, attorney Samantha Zutler, Finance Manager Paul Wood and Finance Specialist Deanna Allen knew prior to Human Resources Manager Maxine Gullo’s “discovery” that CalPERS cost sharing had not been implemented. To wit, in a December 2, 2015 e-mail to staff, then-Interim City Administrator/Public Safety Director/Police Chief Mike Calhoun wrote “At the December 1st Council meeting, Council approved the LiUNA General & Management MOU to increase salaries recognized by the MOU by 3% effective 7/1/2014. The second 3% salary increase will take effect January 1, 2016. The PERS pension cost sharing by employees will commence at a date yet to be determine. This will be determined after the PERS contract is amended.”  Furthermore, even though Public Safety Director/Police Chief Mike Calhoun wrote to Human Resources Manager Maxine Gullo “I spoke with Deana specifically to work on the PERS contract amendment and it was my understanding that she started the process since both POA and LIUNA agreements were approved by council,” there is no written documentation that Public Safety Director/Police Chief Mike Calhoun communicated to Finance Specialist Deanna Allen “specifically to work on the PERS contract amendment” and followed up on the PERS contract amendment matter. Moreover, Interim City Administrator/Public Safety Director /Police Chief Mike Calhoun and later City Administrator Chip Rerig had the authority to direct only Finance Manager Paul Wood, not Finance Specialist Deanna Allen, to proceed with the CalPERS contract amendment. In fact, work on the CalPERS contract amendment commenced in July 2016 when Human Resources Manager Maxine Gullo contacted a CalPERS representative regarding the CalPERS Employee Cost Sharing amendment. To wit, in a July 15, 2016 e-mail, Human Resources Manager Maxine Gullo wrote to Public Safety Director Mike Calhoun and attorney attorney Samantha Zutler, “I made contact with a live CaiPERS representative (yah!) and she has provided me the first step to kick off this employee cost sharing amendment.”

And importantly, Finance Specialist Deanna Allen, in a September 29, 2015 e-mail to Paul Wood stated that “We are waiting too long to start the process…I will wait…. But it only makes the effective date farther out.”

In sum, prior to City Administrator Chip Rerig hiring Maxine Gullo as the City’s human resources manager in June 2016, Finance Manager Paul Wood and Finance Specialist Deanna Allen advocated for “starting the process” in September 2015, but Public Safety Director/Police Chief Mike Calhoun did not specifically direct the finance manager to start the process. Notably, not only did Mike Calhoun benefit from additional compensation due to continuing payments as if he were still acting interim city administrator/public safety director/police chief between March 2016 and September 2016, but Calhoun also benefited due to the fact that implementation of CalPERS cost sharing begins in January 2017, after Calhoun’s retirement date of December 30, 2016.

Bottom Line: In September 2015, Finance Manager Paul Wood and Finance Specialist Deanna Allen advocated for starting the CalPERS cost sharing process, but Public Safety Director/Police Chief Mike Calhoun and later City Administrator Chip Rerig stalled the process until City Administrator Chip Rerig hired Human Resources Manager Maxine Gullo in July 2016. Importantly then, City Administrator Chip Rerig, Safety Director/Police Chief Mike Calhoun and Human Resources Manager Maxine ensured that implementation of CalPERS cost sharing would occur in January 2017, post-Mike Calhoun’s retirement from the city.

REFERENCES:

From: Deanna Allen

Sent: Thursday, October 27, 2016 4:25 PM

To: Maxine Gullo <[email protected]>

Subject: FW: LIUNA Contract

Maxine,

I did find this email stating PERS cost sharing was to be done at a later date, to be determined.

Thanks.

Deanna Allen

City of Carmel-by-the-Sea

From: Mike Calhoun

Sent: Wednesday, December 02, 2015 2:31 PM

To: Rob Mullane ; Sharon Friedrichsen ; Janet Bombard

; Marc Wiener

Cc: Mike Branson ; Rob Culver ; Margi Perotti ; Deanna Allen

Subject: LlUNA Contract

Department Directors: This message is intended for LiUNA General & Management Employees. To avoid any miscommunication, please distribute to your staff.

At the December 1^st Council meeting, Council approved the LiUNA General & Management MOU to increase salaries recognized by the MOU by 3% effective 7/1/2014. The second 3% salary increase will take effect January 1, 2016. The PERS pension cost sharing by employees will commence at a date yet to be determine. This will be determined after the PERS contract is amended. You will be notified in advance of this payment obligation.

This increase in salaries (hourly rates) will be seen on this week's payroll (for pay period November 16-30th- payroll date December 4th).

The retro pay earnings due from July 1st, 2014 to November 15th, 2015 will be distributed to your Supervisor no later than December 31st, 2015.

All retro payments will be issued in the form of a check, not direct deposit.

If you have any questions, please see me.

Thanks,

Mike

Michael Calhoun

Director of Public Safety/ Chief of Police

Carmel Police Department City of Carmel-by- the Sea

Po Box 600 Carmel Ca, 93921

(831) 620-2029

From: Deanna Allen

Sent: Tuesday, September 29, 2015 11:53 AM

To: Paul Wood

Subject: RE: MOU

But I have to give Calpers the heads up.

We are waiting too long to start the process.

And shouldn’t we be making sure this implement will be correct?

I need some direction. This is not how we have done it in the past.

I will wait…. But it only makes the effective date farther out.

Deanna Allen

Finance Specialist/Deputy City Clerk

City of Carmel‐by‐the‐Sea

From: Zutler, Samantha W. [mailto: ]

Sent: Tuesday, September 29, 2015 11:49 AM

To: Paul Wood <[email protected]>

Cc: Mike Calhoun <[email protected]>

Subject: RE: MOU

I don’t think that’s necessary at this point (when the MOU is a draft, and certainly not if it’s going to slow down the process). I’d suggest we finalize it and then deal with CalPers.

From: Paul Wood [mailto:[email protected]]

Sent: Tuesday, September 29, 2015 11:47 AM

To: Zutler, Samantha W.

Cc: Mike Calhoun

Subject: RE: MOU

Sam,

Can I give a copy of this DRAFT to Deanna to forward to CalPERS so they can advise us on when/how to implement some of this (most particularly the –EE pmt of –ER contributions)?

Paul

From: Mike Calhoun

Sent: Monday, September 19, 2016 12:23 PM

To:Maxine Gullo

Subject: FW: llUNA Contract

Here's the information I sent to all the Directors. I spoke with Deana specifically to work on the PERS contract amendment and it was my understanding that she started the process since both POA and LIUNA agreements were approved by council. I'm still looking but can't find an email to Deanna regarding this subject. Mike

Director of Public Safety/ Chief of Police

Carmel Police Department City of Carmel-by- the Sea

Po Box 600 Carmel Ca, 93921

(831) 620-2029