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HomeMy WebLinkAbout15-Human Resources 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 0 R,': ;:~'AL 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 Bemardino. Recommended Motion: That said Ordinance be laid over for final adoption. -b(j~~ Contact Person: Edward S. Rava Yes Phone: 384-5161 Supporting Data Attached: Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct No) (Acct Description) Council Notes:~~ Finance: 5'/7/0/, .#S/ I { J S/:lI!O/ Agenda Item No._ /S 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 ~~@~ow~@ MAY 1 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. 8;''O'''''y, ~ Jean Krum Employer Representative Public Agency Contract Services JK:cc 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\jQ"i SiCji'l iEXHiBI1 ONL'I 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; j, 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 effec~ve on the .- <.:\. .,._"y BOARD OF ADMINISTRATION {j.' PUBLIC EMPLOYEES' RETI.$ENT SYSTEM i -.-~.. ('"'; . day of CITY COUNCIL CITY OF SAN BERNARDINO BY (: BY KENNETH W. M , ION, CHIEF PRESIDING OFFICER ACTUARIAL & . 'LOYER SERVICES DIVISION PUBLIC EM~piY'EES' RETIREMENT SYSTEM Witness Date ~ ~ ~0 ~,' ."'~. /0'~' ~ 45 6' ~ <:10 Clerk $' <{~ Attest: AMENOMENT PERS-CON-702A (Rev, 8\96) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the Mayor and Coaaon Council (governing body) of the adopted on City of San Bernardino (public agency) May 21 2001 , by an affirmative vote of a majority (date) of the members of said Governing Body, Ordinance (Ordinance or Resolution) No. MC-I091 approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said Ordinance (Ordinance or Resolution) in the form furnished by said Board of Administration being attached hereto. -PadJ j,:J ~Iv Clr.y~r~t,~ry ~ ~ t:$ ~ ~ ~-' Title Date ~;j ;n, ;;)00/ PERS-CON-5 (Rev, 1/96) OFFICE OF THE CITY CLERK RACIlELG. CLARK, C.M,C. - CITY CLERK 5M P.O. Box 1318 . San Bernardino' CA 92402 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 Ca1PERS 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-1 097 . 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: ~~ ~~j Linda Hartzel, Deputy ity Clerk CITY OF SAN BERNARDINO ADOPTED SHARED VALVES: 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@[gDW~~ 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~~-~~ Public Agency Contract Services CC:cc Enclosure COJ08 (Rev. 9/99) California Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 '-~..-...',.I " j..," _. , ' , Il.XJU'U.C A udF~R OFFICE USE ONLY - NOY',A PUBLIC DOCUMENT**/"'. ~~~~~'E;-~ ;. _ '. .<~f;;;~_' cr..~~~~~~~:.. __ ','_.. ~;:';.~'~'~~~~f:~:t._~:_-r:.},.:f:,t , '~:: "CITY OF SAN BERNARDINO :'CHY CLERK'S OFFICE v,~.-_.,~. ' RECORDS & INfORMATION MANAGEMENT PROGRAM .~~:. . AGENDA ITEM TRACKtNG FORM Meeting Date/Date Adopled: 5 /.;l I J tJ I Item No. t ' Resolution/Ordinance No. ft7 C - I () q 7 0-;)../-01 Ayes: {, 2. ~ <<~. G> 7 I I / / Abstain; - Dale Sent to Mayor: "</2 ~'" I Dale of Mayor's Signalure: 5. 2.L/O 1 Date Summary Senllo Attorney: sf- /2- 2-/ iJ / / ( , Date Published: :; - 30-0( Meeting Type:~~J ~r~.J Continued Fromffo & Item No. Effective Dale: Ordinance Urgency: Yes TerminationlSunsel Dale: Vole: Nays: Absenl: - !:-22- o( y.J3-cJl Dale Relurned from Mayor: Dale of Clerk's Signalure: Date Summary Relurned from Attorney: S /~.S/Ol I / Date Seal Impressed: 5'"/23/0 ( I . Date Sent for Signature: Expiralion Date: Copies Distributed To' To Whom: L...-- ~ Exhibits Complele & Attached to Resolution/Ordinance: Reminder Letter Sent: Reminder Letter Sent: Reminder Letter Senl: Request for Council Action & Slaff Report Attached: Yes No Notes: ~~..( /~ - /JJvt ~ iJ ~. Ready to File: Date: 00ClJMENT lOCAOONl fOAM5IAItnda .... T..... Fomt. CC Fomt No. 111 - use ~ 1 W4/19H