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MAYOR & COMMON COUNCIL
MEETING BACKUP
MEETING DATE: May 7, 2001
Mayor & Common Council /
GROUP MEETING: Community Development Commission
DEPUTY:
Linda Hartzel
*** No backup materials are included for the following items. ***
ITEM #
STATUS
3-J-
34
Referred to Legislative Review Committee
35
Continued to May 21, 2001
36
Tabled (See backup material for March 19, 2001, items 18-23)
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on
on
40
Continued to May 21, 2001
S1
Laid Over
CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
From:
EDWARD S. RAYA
Subject:
AN ORDINANCE OF THE MAYOR AND
AND COUNCIL AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE MAYOR
AND COMMON COUNCIL OF THE CITYOF SAN
BERNARDINO AND THE BOARD OF ADMINI-
STRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
(3% @ 55 BENEFIT) AND REPEALING
ORDINANCE NO. MC-1096.
Dept: HUMAN RESOURES
Date:
MAY 2,2001
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Synopsis of Previous Council Action:
On April 2, 2001, the Mayor and Common Council adopted Resolution No. 2001-68,
Resolution of the City of San Bernardino authorizing its intention to approve an
amendment to contract between the Board of Administration of the California Public
Employees' Retirement System and the City of San Bernardino.
Recommended Motion:
That said Ordinance be laid over for final adoption.
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Contact Person:
Edward S. Rava
Yes
Phone:
384-5161
Supporting Data Attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct No)
(Acet Description)
Council Notes:~~
Finance:
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Agenda Item No._ /5
CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT
Amend the PERS contract to provide 3% @ 55 retirement benefits for local safety
members.
BACKGROUND
On April 2, 2001, the Mayor and Common Council adopted a Resolution of Intention
stating its desire to approve an amendment to contract between the Board of
Administration of the California Public Employees' Retirement System (CaIPERS) and
the City of San Bernardino to provide the 3% @ 55 retirement benefit for safety
employees. On that date the first reading of the ordinance authorizing the amendment
to the contract also occurred.
On April 16, 2001, the second reading of the ordinance occurred and the ordinance
was adopted by the Mayor and Common Council.
The ordinance was forwarded to CalPERS for approval. CalPERS will not accept the
ordinance because CalPERS regulations require that the final ordinance not be adopted
earlier than 20 days after the adoption of the Resolution of Intention, which occurred on
April 2, 2001.
This action will repeal the ordinance that was adopted on April 16, 2001, and allow for
the first reading of the new ordinance to occur concurrently. The second reading will
occur at the regularly scheduled Council meeting of May 21,2001. This timeline will
ensure that the benefit is in place on July 1, 2001 and satisfies the CalPERS
requirements.
RECOMMENDATION
That said Ordinance be laid over for final adoption.
Attachment: Ordinance
HRlAgenda Items:SR.PERS.AMEND.3%@55.2 05/03/01
A
CalPERS
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MAY I 0 2001
Actuarial & Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 326-3240
(916) 326-3420 FAX (916) 326-3005
May 8, 2001
"!UMAN RESOURCES
City of San Bernardino
Employer Code #0061
Reply to Section 1 05
Mr. Edward S. Raya
Director of Human Resources
City of San Bernardino
300 North D Street
San Bernardino, CA 92418-0001
Dear Mr. Raya:
We have received the Resolution of Intention to amend your CalPERS contract to provide
Section 21363.1 (3% @ 55 Full formula) for local safety members.
Please note that the Ordinance adopted on April 2, 2001 will need to be rescinded since
there were not 20 days between the adoption of the Resolution of Intention and the
adoption of the Ordinance. A new Ordinance will need to be adopted.
Enclosed are the following documents necessary to complete the proposed amendment:
1. Amendment to Contract.
2. Certification of Final Action of Governing Body (Form CON-5).
Your agency adopted the Resolution of Intention on April 2, 2001, therefore, the earliest
date the final Ordinance could have been adopted was April 22, 2001, pursuant to
Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW.
The effective date of this amendment cannot be earlier than the first day of a payroll period
following the effective date of the Ordinance. Please insert the effective date on the last
page of the Amendment to Contract.
The following documents must be returned to this office. ORIGINAL SIGNATURES ARE
REQUIRED ON ALL DOCUMENTS.
1. Amendment to Contract, two original executed sets.
2. Ordinance, original or certified copy.
3. Certification of Final Action Governing Body (CON-5), original.
California Public Employees' Retirement System
Lincoln Plaza - 400 P Street - Sacramento, CA 95814
.
, .
City of San Bernardino
-2-
May 8, 2001
Please notify your personnel/payroll staff, as of the effective date of the amendment to the
contract (For assistance in payroll reporting, contact our Training and Assistance Unit at
(916) 326-3420.)
. The employer contribution rate will be 10.225% of reportable earnings for local safety
members, if the effective date of the contract amendment is on or after July 1, and
before the next annual valuation report is mailed to your agency.
Please do not retype the Amendment to Contract and/or agreement documents.
Only documents provided by this office will be accepted. If you have a problem with
any of the documents, please contact this office prior to presenting to your
governing body for adoption.
A copy of the contract will be returned for your records after it has been executed by
CaIPERS.
Please contact me at (916) 326-3009 if you have any questions.
s;"~"'~. F--
Jean Krum
Employer Representative
Public Agency Contract Services
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Enclosures
cc: San Bernardino Regional Office
A
CalPERS
EXHIBIT A
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of San Bernardino
.
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 March
1, 1945, and witnessed February 6, 1945, and as amended effective November 1, 1949,
September 1, 1951, January 1, 1952, July 1, 1954, February 1, 1965, February 24,
1969, March 8, 1971, October 1, 1973, October 28, 1974, March 17, 1975, April 28,
1975, November 10,1975, July 6,1977, January 7,1985, May 27, 1985, September 16,
1988, August 27,1990, August 1, 1996, July 3,1997, January 1,1998, August 1,1998,
November 1, 1999 and June 1, 2001 which provides for participation of Public Agency
in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 1, 2001, and hereby replaced by the following paragraphs
numbered 1 through 13 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 55 for local safety
members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after March 1, 1945 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.
PLEASE DO i\lOl SiGi~ hEXHiDi! Or\lLY
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:
a. CROSSING GUARDS HIRED ON OR AFTER JANUARY 1, 1952;
b. LIBRARY PAGES HIRED ON OR AFTER MARCH 17, 1975;
c. LIFEGUARDS;
d. SENIOR LIFEGUARDS;
e. SUPERVISING LIFEGUARDS;
f. RECREATION INTERNS;
g. RECREATION AIDES
h. RECREATION LEADERS;
i. SENIOR RECREATION LEADERS;
j. RECREATION SPECIALIST;
k. LOCKER ATTENDANTS;
I. VEHICLE OPERATORS; AND
m. EXTRA RELIEF HEAVY LABORERS (EXTRA BOARD).
5. Prior to January 1, 1975, those members who were hired by Public
Agency on a temporary and/or seasonal basis not to exceed 6 months
were excluded from PERS membership by contract. Government Code
Section 20336 superseded this contract provision by providing that any
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Government Code Section 20305 effective July
1, 1994.
6. 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).
7. 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 21363.1 of said Retirement Law
(3% at age 55 Full). The required member contribution rate is 9% of
reportable compensation.
PLEASE DO NOT SIGN "EXHiBIT ONLY"
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance).
b. Section 21222.1 (One-Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
c. Section 20042 (One-Year Final Compensation).
d. Section 21024 (Military Service Credit as Public Service), Statutes
of 1974.
e. Section 21222.2 (One-Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
f. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971).
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire
members and local miscellaneous members only.
h. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
i. Section 21635 (Post-Retirement Survivor Allowance to Continue
After Remarriage) for local fire members only.
9. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
April 28, 1975. 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.
10. 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.
11. 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 fire members and local miscellaneous members only.
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.
12. 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.
13. 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 effecljve on the
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BOARD OF ADMINISTRATION. (j.':v
PUBLIC EMPLOYEES' RETIIffi:MENT SYSTEM
\,<;,:5~':-~"'-"
day of
CITY COUNCIL
CITY OF SAN BERNARDINO
BY f< BY
KENNETH W. M . ION, CHIEF PRESIDING OFFICER
ACTUARIAL & '. 'LOYER SERVICES DIVISION
PUBLIC EMg("OYEES' RETIREMENT SYSTEM
. "
Witness Date
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Attest:
AMENDMENT
PERS-CON-702A (Rev. 8\96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
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
Mayor and COIIIIIOU Council
(governing body)
of the
May 21
(date)
of the members of said Governing Body,
City of San Bernardino
(public agency)
2001 ,by an affirmative vote of a majority
adopted on
Ordinance
(Ordinance or Resolution)
No. KC-I097 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.
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CIEf~~r~t~ry ~ ~ e$ ~
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Title
Date ~.;). 3/ ;).00 I
PERS-CON-5 (Rev. 11gB)
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. . CITY CLERK
"1M
P.O. Box 1318. San Bernardino. CA92402
300 North "D" Street. San Bernardino. CA 92418-0001
909.384.5002. Fax: 909.384.5158
Business Registration Division: 909.384.5302
Passport Acceptance Facility: 909.384.5128
www.cLsan-bernardino.ca.us
May 24, 2001
Jean Krum
Employer Representative
Public Agency Contract Services
California Public Employees' Retirement System
P.O. Box 942709
Sacramento, CA 94229-2709
Dear Ms. Krum:
Pursuant to your letter of May 8, 2001, to Edward Raya, Director of Human Resources, the
following documents are enclosed relative to the amendment of the City's CalPERS contract to
provide Section 21363.1 (3% @ 55 Full formula) for local safety members:
. Amendment to Contract, two original executed sets
. Certified copy of Ordinance No. MC-I097
. Full executed, original Certification of Final Action Governing Body (CON-5)
Once both sets of the Amendment to Contract have been signed by your representative, please
return one fully executed set with original signatures to the City of San Bernardino for our
records.
If you have any questions, please contact me at (909) 384-5102.
Sincerely,
RACHEL G. CLARK, CMC
City Clerk
By: b~ ~~)
Linda Hartzel, Deputy tty Clerk
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty
A
CalPERS
Actuarial & Employer Services Division
PO Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 326-3240
(916) 326-3420 FAX (916) 326-3005
~[g@[gD\Y7~~
JUN 0 6 2001
HUMAN RESOURCES
City of San Bernardino
June 1, 2001
Employer Code #0061
Reply to Section 105
Mr. Edward S. Raya
Director of Human Resources
City of San Bernardino
300 North D Street
San Bernardino, CA 92418-0001
Dear Mr. Raya:
The contract amendment has been executed by CaIPERS. The effective date of the
contract amendment is July 1, 2001.
If you have any questions regarding your contract, please do not hesitate to contact,
Jean Krum at (916) 326-3009.
Sincerely,
t~G-G0~
Public Agency Contract Services
CC:cc
Enclosure
C0308 (Rev. 9/99)
California Public Employees' Retirement System
Lincoln Plaza - 400 P Street - Sacramento, CA 95814