HomeMy WebLinkAboutAmendment-2000-085REQUEST FOR
COUNCIL ACTION gducelion ,at
CITY COUNCIL MEETING DATE:
MAY 1, 2000
TITLE:
AMEND THE CITY'S CONTRACT WITH THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO
PROVIDE SECTION 21548, PRE -RETIREMENT
OPTIONAdL_ SETTLEMENT_` 2 DEATH BENEFIT
CLERK OF COUNCIL USE ONLY:
APPROVEP
-, As Recommended
❑ As Amended d®®®
Ordinance on 1 st Readi*Dl,
Ordinance on 2nd Readin Asa
Neir Implementing Resolution
Set Public Hearing For
/ CONTINUED TO
A-2000-0 85
FILE NUMBER
MANAGER f rv0� - ow
� 2
N=uq�4ii iP I �L4111Tl91_C IiDIG
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 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members and local safety members.
2. Adopt an Ordin�nce authorizing an amendment to the contact between the
City of Santa Ana and the Public Employees' Retirement System.
DISCUSSION ;
The City Council, at its meeting of October 4, 1999, approved a Memorandum
of Understanding between the City of Santa Ana and the Police 'Management
Association (PMA)for Fiscal Years 1999-2002. In accordance with provisions
of this Memorandum of Understanding the City agreed to amend its 'Q,Vntract
with the California Public Employees' Retirement System (CalPERS) to provide
the Pre -Retirement Optional Settlement 2 Death Benefit for its safety
employees. The Pre -Retirement Optional Settlement 2 Death Benefit is
awarded to the spouse of an employee who dies prior to retiring. This
benefit provides the surviving spouse with a monthly allowance equal to the
amount the spouse would have received if the employee had been retired on
the date of death. In calculating the benefit amount, CalPERS assumes that
the employee would have elected the highest survival benefit option at the
time of retirement.
CalPERS Optional 2 Death Benefit
Fiscal Year 1999-00
May 1, 2000
Page 2
In order to provide this benefit to the PMA bargaining Unit safety
employees, the City is required, under CalPERS regulations, to amend its
contract for the entire employment category of local police safety members.
When initially presented to the City Council, staff recommended that this
benefit also be extended to include the fire safety members as the cost for
applying this benefit to all safety categories posed no fiscal impact
according to the CalPERS actuarial report.
While waiting for the new actuarial report necessary to amend our CalPERS
contract, the CalPERS Board adopted a resolution offering employers a one-
time -only increase in their actuarial value of assets, if they amended their
contract to provide an enhanced retirement benefit to their employees. This
one -time -only offer is being made available to employers as a result of the
favorable investment earnings on the entire retirement system funds. If
pursued, this one -time -only offer would provide the City of Santa Ana with
a significant increase in its retirement assets. Because of this offer,
staff is recommending that the City Council also approve the Pre -Retirement
Optional Settlement 2 Death Benefit for the local miscellaneous members.
If approved, this contract amendment will extend the City's current zero
percent (0%) employer contribution rate for safety and miscellaneous
employees for many years beyond the current actuarial projections.
FISCAL IMPACT
There is no fiscal impact associated with this action.
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50.A.
ORDINANCE NO. NS -2426
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF SANTA ANA AND THE 'BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS
FOLLOWS:
SECTION 1: That an amendment to the contract between the City of Santa Ana and the
Board of Administration, California Public Employees' Retirement System is hereby
authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by
such reference made a part hereof as though herein set in full.
SECTION 2: The Mayor of the City Council of the City of Santa Ana is hereby
authorized, empowered, and directed to execute said amendment for and on behalf of
said Agency.
ADOPTED this 5th day of June 2000.
ATTEST:
atricia Ealy
Clerk of the Council
Ordinance No. NS -2426
Page 1 of 2
EXHIBIT "A" AMENDMENT TO FOLLOW
RESOLUTION NO. 2000-030
A RESOLUTION OF THE CITY OF SANTA ANA
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL OF THE 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 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members and 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 the 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 A"
and by this reference made a part hereof.
ADOPTED this / day of 2000.
ATTEST:
PATRICIA E. HEALY
Clerk of the Council
Resolution No. 2000-030
Page 1 of 2
CaIPER_S
EXHIBIT
California A
Public Employees' Retirement System
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 publio.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 and December 5, 1995 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 December 5, 1995, 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.
"Ex iTONLY°
C. Section 20475 (Different Level of Benefits Provided for New
Employees). Section 21024 (Military Service Credit- as Public
Service), Statutes of 1974, is not applicalbe to local miscellaneous
members and local safety members entering membership after
October 1, 1981.
d. Section 20042 (One -Year Final Compensation).
e. Section 20903 (Two Years Additional Service Credit).
f. Sectionl1573 (Third Level of 1959 Survivor Benefits).
g. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit).
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 21573 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.
CONSENT CALENDAR
25.C. AGMT 2000-073 - COPIER, MICROGRAPHIC PRINTERS, AND DEBIT
CARD PRINTING SERVICES - LIBRARY - With APS Affiliates, Inc. for a
five-year period - Library Services Department
MISCELLANEOUS -BUDGET
29.A. INSURANCE RENEWAL
Motion: Approve.
City's Charter membership in the Robert F. Driver Associates
Commercial Crime Program for $15,785.00 from May 5, 2000 to April 1,
2001 - Personnel Services Agency
29.B. PUBLIC ENTITY PROPERTY INSURANCE PROGRAM RENEWAL
Motion: Approve.
City's continued membership in the Public Entity Property Insurance
Program effective May 15, 2000 to May 15, 2001 at a premium cost of
$810,996.00 - Personnel Services Agency
*** END OF CONSENT CALENDAR ***
BUSINESS CALENDAR
ORDINANCES/FIRST READING
50.A. PUBLIC EMPLOYEES' RETIREMENT SYSTEM - PRE RETIREMENT
OPTIONAL SETTLEMENT 2 DEATH BENEFIT
Motion: 1. Adopt resolution.
RESOLUTION NO. 2000-030 - A Resolution of the City of Santa
Ana authorizing an amendment to the contract between the Board
of Administration of the Public Employees' Retirement System and
the City Council of the City of Santa Ana
2. Place ordinance on first reading and authorize publication of
title.
CITY COUNCIL MINUTES 141 MAY 1, 2000
BUSINESS CALENDAR
ORDINANCE NO. NS -2426 - An ordinance of the City Council of
the City of Santa Ana authorizing an amendment to the contract
between the City Council of the City of Santa Ana and the Board of
Administration of the California Public Employees' Retirement
System - Personnel Services Agency
MOTION: McGuigan SECOND: Christy
VOTE:
RESOLUTIONS
55.A.
Motion
55.13.
AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno,
Pulido (7)
NOES: None (0)
PROPERTY IMPROVEMENT REQUIREMENTS FOR MILLS ACT
AGREEMENTS
Adopt resolution.
RESOLUTION NO. 2000-031 - A resolution of the City Council of the
City of Santa Ana affirming minimum contractual standards for historic
property preservation agreements - Community Development Agency
MOTION: Bist SECOND: McGuigan
VOTE: AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno,
Pulido (7)
NOES: None (0)
NOTIFICATION PROCESS FOR DEMOLITION OF STRUCTURES 50
YEARS OF AGE OR OLDER
Motion: Adopt resolution.
RESOLUTION NO. 2000-032 - A resolution of the City Council of the
City of Santa Ana directing the establishment and implementation of a
demolition notification process to the Historic Resources Commission
and the Santa Ana Historic Preservation Society - Planning and
Building Agency
MOTION: Lutz SECOND: Bist
VOTE: AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno,
Pulido (7)
NOES: None (0)
CITY COUNCIL MINUTES 142 MAY 1, 2000
A-2000-0 85
Ca1PERS
California
Public Employees' Retirement System
Between the
Board of Administration
California Puubllic 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 and December 5, 1995 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 December 5, 1995, 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.
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 of said Retirement Law (2%
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 21024 (Military Service Credit as Public Service), Statutes
of 1974 for those local miscellaneous members and local safety
members entering membership prior to October 1, 1981.
C. Section 20475 (Different Level of Benefits Provided for New
Employees). Section 21024 (Military Service Credit as Public
Service), Statutes of 1974, is not applicalbe to local miscellaneous
members and local safety members entering membership after
October 1, 1981.
d. Section 20042 (One -Year Final Compensation).
e. Section 20903 (Two Years Additional Service Credit).
f. Section 21573 (Third Level of 1959 Survivor Benefits).
g. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit).
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 21573 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 effective on the S�l day of _.Q , 2000
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SANTA ANA
BY BY
KEV,NIETO W. MAR ION, CHIEF d PRESI OFFI ER
ACTUAIJAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
6 -�J -- Zoo J
Witness Date
Attest:
e �L�'
Cler.
WE71' a'7
Mornay
AMENDMENT
PERS-CON-702A (Rev. M96)
CALIFORNIA PUBLIC E ... r1LOYEES' RETIREMENT SYSTEIvi
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the City Council of the
(governing body)
City of Santa Ana
(public agency)
adopted on June 5 2000 , by an affirmative vote of a majority
(date)
of the members of said Governing Body, ordinance
(Ordinance or Resolution)
No. Ns -2426 approving the attached contractual agreement between the
Governing Body of said Agency and the Board of Administration of the California Public
Employees' Retirement System, a certified copy of said ordinance
(Ordinance or Resolution)
in the form furnished by said Board of Administration being attached hereto.
7 1.
,t��q Cler0a=Jo4y Patricia e. HealyA
Clerk of the Council
Title
Date
PERS-CON-5 (Rev. 1/96)