HomeMy WebLinkAboutRequest for Council Action. May 7, 2007REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
May 7, 2007
TITLE:
AMEND THE CITY'S CONTRACT
WITH THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM FOR
CREDIT FOR USED SICK LEAVE
CI Y MANAGER
RECOMMENDED ACTION
1. Receive and file.
CLERK OF COUNCIL USE ONLY:
F-IT5051-597iTil
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
2. Continue consideration of Ordinance to May 21, 2007.
DISCUSSION
California Government Code Section 7507 requires that the future annual
cost of the proposed contract amendment be made public at least two weeks
prior the adoption of the final Ordinance.
In accordance with the Memorandum of Understanding between the City of
Santa Ana and the Santa Ana Police Officers Association for FY 2004-2008
the City agreed to provide Credit for Unused Sick Leave benefits for local
safety members effective July 1, 2007. This benefit is currently provided
to miscellaneous City employees.
The Unused Sick Leave Credit Benefit allows unused accumulated sick leave,
at the time of retirement, to be converted to additional service credit
pursuant to a formula established by the Public Employees' Retirement
System.
The above benefit will be offered along with the current options.
Currently sick leave may be used for payment of medical insurance premiums
or may be converted to cash for payment based on established formulas.
Under this contract amendment conversion of sick leave to service credit.
allows the City to pay funds out over a thirty year period of time.
The CalPERS actuarial valuation determined this will result in an accrued
liability of $2,328,279.
Contract Amendment
May 7, 2007
Page Two
FISCAL IMPACT
with Ca1PERS
On July 1, 2008, the Employer's contribution rate will increase by 0.587%
of the total safety payroll to cover the accrued liability.
iqu . A v
Execut e D're for
Personnel Services
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services
JAS (4/10/07)
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF SANTA ANA AND
THE BOARD OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS:
Section 1: The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement
System ("PERS") by the execution of a contract, and sets forth the
procedure by which said public agencies may elect to subject themselves
and their employees to amendments to said law. Such a contract
currently exists between the City of Santa Ana and the Board of
Administration of the California Public Employees' Retirement System.
B. In accordance with provisions of the current Memorandum of
Understanding between the City of Santa Ana and the Santa Ana Police
Officers Association for fiscal years 2004-2008 the City agreed to amend
its contract with the Public Employees Retirement System to provide
section 20965 Credit for Unused Sick Leave benefits for local safety
members effective July 1, 2007. A copy of said proposed amendment is
attached hereto as Exhibit "A" and by this reference made a part hereof.
C. The Credit for Unused Sick Leave benefit allows a member to
convert unused accumulated sick leave at the time of retirement to
additional service credit pursuant to a formula established by PERS.
Section 2: That an amendment to the contract between the City of Santa Ana
and the Board of Administration of the Public Employees' Retirement System is hereby
authorized in accordance with the terms of Exhibit "A".
Section 3: That the Mayor and Clerk of the Council of the City of Santa Ana are
authorized, empowered and directed to execute said amendment for and on behalf of
the City of Santa Ana.
Section 4: If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it
would have adopted this ordinance and each section, subsection, sentence, clause, phrase
or portion thereof irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
ADOPTED this day of 2007.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
By:
Joseph A. Straka
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -XXX to be the original ordinance adopted by the City
Council of the City of Santa Ana on , and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council City of Santa Ana
Page 2 of 2
Ilr%o,
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Santa Ana
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective July 1,
1947, and witnessed November 25, 1946, and as amended effective October 1, 1951,
February 1, 1954, September 1, 1956, July 1, 1959, November 1, 1960, September 1,
1963, April 1, 1964, February 1, 1965, January 16, 1969, November 1,1970, June 1,
1974, December 16, 1976, December 1, 1978, October 1, 1981, July 1, 1984,
December 1, 1984, July 1, 1985, February 1, 1990, July 1, 1990, December 5, 1991,
April 15, 1993, June 16, 1994, January 1, 1995, December 5, 1995, July 5, 2000, March
8, 2001, July 1, 2001, April 5, 2002 and November 7, 2002 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective November 7, 2002, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 55 for local miscellaneous members and age 50 for local safety
members.
,'�.o GE DCS NO Ui "L e d �'.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1947 making its employees as hereinafter
provided, members of said System subject to all provisions of the Public
Employees' Retirement Law except such as apply only on election of a
contracting agency and are not provided for herein and to all amendments
to said Law hereafter enacted except those, which by express provisions
thereof, apply only on the election of a contracting agency.
3. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member shall
be determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
7. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624 and 21626 (Post -Retirement Survivor Allowance).
b. Section 20042 (One -Year Final Compensation).
C. Section 20903 (Two Years Additional Service Credit).
d. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit).
e. Section 21024 (Military Service Credit as Public Service).
f. Section 20965 (Credit for Unused Sick Leave).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits).
8. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
December 16, 1976. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
9. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
10. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required bylaw.
C. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
11. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
12. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be eff6ptive on the day of
BOARD OF ADMINISTRATION, CITY COUNCIL
PUBLIC EMPLOYEES' RETIJR MENT SYSTEM CITY OF SANTA ANA
BY - ? BY
LORI MCGARTLAND IEF PRESIDING OFFICER .P/
EMPLOYER SERVI E DIVISION A
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT ER# 0137
PERS-CON-702A (Rev. 10\05)
Witness Date
Attest:
Clerk,