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Sx <br />i! <br />A' City of San Leandro <br />Meeting Date: December 19, 2011 <br />00 11 . Staff Report <br />File Number: 11 -387 Agenda Section: ACTION ITEMS <br />Agenda Number: 10.C. <br />TO: City Council <br />FROM: Lianne Marshall <br />Interim City Manager /Executive Director <br />BY: James O'Leary <br />Interim Finance Director <br />FINANCE REVIEW: James O'Leary <br />Interim Finance Director <br />TITLE: Staff Report for Resolution Authorizing Inter -Fund Loan from Water Pollution <br />Control Plant Fund and Appropriating $6,000,000 to Pay -Down Public Safety <br />Side Fund Obligation <br />Staff Report for Resolution Authorizing Inter -Fund Loan from Water Pollution Control Plant <br />Fund and Appropriating $6,000,000 to Pay -Down Public Safety Side Fund Obligation <br />RECOMMENDATION <br />Staff recommends City Council approval of the resolution authorizing an inter -fund loan from <br />the Water Pollution Control Plant Fund to the General Fund and appropriation of $6,000,000 <br />to pay -down the CalPERS Public Safety Side Fund with an adjustable interest rate loan, with <br />an initial rate of 3 %. <br />- 1e[s] Ififel Yell] 0I W7 <br />The City's Safety Plan in the CalPERS retirement system is a cost - sharing multiple - employer <br />plan with pooling (cost- sharing) arrangements for participating employers. All risks, rewards, <br />and costs, including benefit costs, are shared and are not attributable to the individual <br />employers. A single valuation covers plan members and the same contribution rate applies <br />to all employers. A menu of benefit provisions and other requirements are established by <br />state statute within the Public Employees' Retirement Law. The City has contractually <br />selected optional benefit provisions from the benefit menu and adopted these benefits by <br />City Council resolutions. <br />At the time the City was required to join the Safety Risk Pool in 2004, a side fund was <br />created to account for the difference between the funded status of the pool and the funded <br />status of the previous City Plan. Today, the City's total outstanding CalPERS pension <br />obligation and the required annual employer contribution is determined by the City's share of <br />City of San Leandro Page 1 Printed on 12/13/2011 <br />