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HomeMy WebLinkAboutApril 16, 2007 Certificate of Governing Body's ActionCALIFORNIA PUBLIC L.-.,PLOYEES' RETIREMENT SYSTEI., Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the Santa Ana City Council ---------_------_...__ --— of the City of Santa Ana on _April 16, 2007 (date) PERS-CON-12 (rev. 1/96) (governing body) (public agency) _Clerk of the Council Title --- - - - RESOLUTION NO. 2007-037 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF SANTA ANA WHEREAS, the Public Employees' Retirement Law permits the participation of ,public agencies and their employees in the Public Employees' Retirement System 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; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 20965 (Credit for Unused Sick Leave) for local safety members. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above,ag"epcy does hereby give notice of intention. to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees'. Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and b rence made rt hereof. By. F`7„ 51`9 Office April 16, 2007 Date adopted and approve,¢ (Amendment) CON-= (Rev. 4M) Mayor TRIP Tj1E FOREGOING DOCUMLNT IS A FULL,_ TRUE A- CORRIOT OOR 8R Mv HE ORIGINAL ON FILE IN THIS OFFICE, ® THE ORIGINAL ON FILE IN ATTISTt sr CLERK OF THE COUNCIy CITY OF OATA ANA a Resolution No. 2007-037 Page 1 of 6 Jko"- CaIPERS EXHIBIT California.Public Employees' Retirement System 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"Qctober 1, 1951, February 1, 1954, September 1, 1956, July 1,'`1959, Novem-ilber 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, Febl rubiy'1", 1990, July 1,"1990,'December 5, 1991, April 15, 1993,"June 16, 1994,.January 1, 1995 December 5, 1995, July5, 2000, March 8, 2001, July 1;2001, April 5,'2002 and No 7, 2002'vvhich provides for participation of Public Agency in said System, Board and Publld Agency hereby agree as follows: A. Paragraphsl 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. Resolution No. 2007-037 Page 3 of 6 9 10 e. Section 21024 (Military Service Credit as Public Service). f. Section 20065 (Credit forUnusedSick Leave). g. Section 21574 (Fourth Level of 1959 Survivor Benefits), Public Agency, in accordance with Government Code rSection 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 rSection 20834, and accumulated contributions thereafter shall be held by the Board as provided in'Goverriment Code Section 20834. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of priorr and future 'Service _liability -With respect to local miscellaneous members and local safety members of said Retirement System. 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. Resolution No. 2007-037 Page 5 of 6 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: April 16, 2007 TITLE: AMEND THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR CREDIT FOR SSD ICK LEAVE r� CITY MAN GER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt a Resolution of Intention to approve an amendment to the contract between the Public Employees' Retirement System and the City of Santa Ana to provide Section 20965, Credit for Unused Sick Leave for local safety members. 2. Adopt an Ordinance authorizing an amendment to the contract between City of Santa Ana and Public Employees' Retirement System. DISCUSSION 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. 55B-1 Contract Amendment with CalPERS April 16, 2007 Page Two FISCAL IMPACT On July 1, 2008, the Employer's contribution rate will increase by 0.587 of the total safety payroll to cover the accrued liability. c- nrique A Execut' D're for Perso el Services APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services 55B-2 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF SANTA ANA WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System 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; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 20965 (Credit for Unused Sick Leave) for local safety members. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. Date adopted and approved (Amendment) CON -302 (Rev. 4/06) By: Presiding Officer Title 55B-3 CaIPERS California Public Employees' Retirement System 49000. MWWWWWZMW� 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: 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. 5513-4 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), 55B-5 e. Section 21024 (Military Service Credit as Public Service). Section 20965 (Credit for Unused Sick Leave). 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 by law. 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 eff�c#ive on the BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIENT SYSTEM BY LORI MCGARTLA .,CHIEF EMPLOYER SERVICES DIVISION PUBLIC EMPL©YEES' RETIREMENT SYSTEM AMENDMENT ER# 0137 PERS-CON-702A (Rev. 10\05) 55B-7 day of CITY COUNCIL CITY OF SANTA ANA BY ���fiJti PRESIDING OFFICE V` Witness Attest' Clerk 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 7th day of May, 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 Resolution No. 2007 -XXX Page 2 of 2 55B-9 CaIPERS 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. 55B-10 1 LL.i"ti.1 LJ 4'l/T 1�.if1� i�U ,: 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). 55B-11 I .. I i i;,,:I ; 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 I nstallment 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. 55B-12 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 effective on the BOARD OF ADMINISTRATION. PUBLIC EMPLOYEES' RETENT SYSTEM BY `y LORI MCGARTLANDrtH'IEF EMPLOYER SERVI,dlid DIVISION PUBLIC EMPLOYEES" RETIREMENT SYSTEM AMENDMENT ER# 0137 PERS-CON-702A (Rev. 10\05) 55B-'13 day of CITY COUNCIL CITY OF SANTA ANA PRESIDING OFFICER Witness Date Attest: 55B-14 MEMORANDUM To: Patricia Healey, Clerk of the Council Date: March 22, 2007 From: Patricia Mayberry, Benefits & Co station Manager Subject: COST PUBLIC NOTICE FOR APRIL 16, 2007 CITY COUNCIL AGENDA CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT AMENDMENT As provided under Section 7507 of the California Government Code, notice is hereby given that the City of Santa Ana intends to amend its contract to provide Section 20965 (Credit For Unused Sick Leave) for local safety members. The system actuary determined that there is no immediate fiscal impact. The employer contribution rate will increase on July 1, 2008 by 0.587% of the total safety payroll to cover the accrued liability. The attached request for Council action should be placed on the April 16, 2007 agenda. Also enclosed are the following documents: 1. Resolution of Intention to Approve Amendment to Contract. 2. Ordinance Authorizing Amendment to the Contract. 3. Form CON -12, Certification of Governing Body's Action. 4. Form CON -12A, Certification of Compliance With Government Code Section 7507. Pursuant to California Public Employees' Retirement System, the Resolution of Intention and accompanying documents should not be held pending final reading of the Ordinance. There must be a 20 day period between the adoption of the Resolution of Intention and the adoption of the final Ordinance pursuant to Government Code Section 20471. If the Resolution of Intention is adopted on April 16, 2007, the final Ordinance will be calendared for adoption on May 7, 2007. The effective date of this amendment is July 1, 2007. Please do not retype the Amendment to Contract and/or agreement documents. Only documents provided by CalPERS will be accepted. If I can be of further assistance, please don't hesitate to contact me at extension 6932. Thank you. cc: Enrique Alva, Executive Director of Personnel Services Joseph Fletcher, City Attorney