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HomeMy WebLinkAbout05.J- Board of Administration California Public Employees' Retirement System - intent to approve contract 5.J RESOLUTION (ID # 4271) DOC ID: 4271 E CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Agreement/Contract Amendment From: Nita McKay M/CC Meeting Date: 02/01/2016 Prepared by: Veronica Martinez, (909) 384-5242 Dept: Finance Ward(s): N/A Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino Approving a Resolution of Intention to Approve a Contract Between the Board of Administration California Public Employees' Retirement System and the Mayor and Common Council of the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino. (#4271) Current Business Registration Certificate: Not Applicable Financial Impact: The annual lump sum payment in the amount of$259,164 will be included on the Successor Agency's Recognized Obligation Payment Schedule (ROPS)for payment. The previous years' CalPERS payments have been approved by the California Department of Finance. Motion: Adopt the Resolution. Background: On November 16, 1981, active employees with the San Bernardino Redevelopment Agency and active employees with the City of San Bernardino Community Development Department merged into the Community Development Commission of the City of San Bernardino ("Commission"). The Commission subsequently entered into a new California Public Employees' Retirement ("Ca1PERS") Contract at the 2% @ 60 retirement formula for active employees of the merged Commission. The effective date of the new contract was August 1, 1982. On July 1, 2001, the 1982 Commission/CalPERS Contract("1982 Contract") was amended to the 2% @ 55 formula. On April 21, 2003, the Commission adopted the Final Resolution, with an effective date of July 1, 2003, to further amend the 1982 Contract to provide the 3% @ 60 retirement formula for active (as of that date) Commission employees,with a twelve-month final valuation. Current Issue• Pursuant to Health and Safety Code ("HSC") § 34172 (a)(1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012. Consistent with the provisions of the HSC, on January 9, 2012 the Mayor and Common Council of the City of San Bernardino elected to serve as the Successor Agency to the Redevelopment Agency of the City of San Bernardino ("Successor Agency"). Updated: 1/28/2016 by Linda Sutherland E Packet Pg.359 4271 Staff was recently notified by Ca1PERS that a new contract is necessary to clarify its relationship with the Successor Agency. The new contract merely changes the name on the agreement from the Economic Development Agency to the Successor Agency. The new contract will be merged with the existing contract, continuing the existing contract with the current Ca1PERS formula of 3% @ 60. The contract includes an employee contribution of 8% and an employer contribution of 12.764%. The new contract will also incorporate the provisions of the Public Employees' Pension Reform Act ("PEPRA") which became effective January 1, 2013. New employees hired on or after January 1, 2013 will be covered by the new retirement formula of 2% @ 62, with a three-year final compensation valuation, and equal sharing of normal costs between employees and employers. Currently, the Successor Agency has only one active employee vested under the 1982 Contract. No new additional employees will be added to this existing 1982 Contract as amended on July 1, 2003. Additionally, any former Commission/EDA employee who qualifies, but has not yet retired, will also continue to be vested under the 1982 Contract. The current Successor Agency employee is also covered under 1959 Survivor Benefits, which will continue under the new Successor Agency/Ca1PERS Contract. Upon adoption of the Resolution of Intention declaring the Successor Agency's intent to enter into a new contract and pursuant to Government Code Section 20469, an election is required. This election permits the employees to approve or disapprove of the retirement proposal by secret ballot. Results of the election must be certified using Ca1PERS form CON-15N. After the election, CalPERS will complete the proposed contract and related documents. The final documents will be brought back before the Successor Agency for adoption no sooner than 20 days from the execution date of the Resolution of Intention. Pursuant to Government Code Section 7507, Ca1PERS requires that future annual costs of the proposed contract be disclosed at a public meeting at least two weeks prior to the adoption of the final Resolution. The Successor Agency employer's annual lump sum prepayment option for Fiscal Year 2015-16 is $259,164. All future required lump sum payments will be placed on future ROPS requests. City Attorney Review: Supporting Documents: CaIPERS Contract Amendment Resolution (PDF) CalPers Resolution Intent to Amend Contract (DOCX) Updated: 1/28/2016 by Linda Sutherland E Packet,,,I- " fig'360 i (1u8uapu8WV IMIU03 SNE]dleO 6LZ17) uoljnlosaUjuewpuawv 13e.i;uoo SNMeO :Juauayoe}}V M M LO d d RESOLUTION OF INTENTION CL TO APPROVE A CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies in the Public Employees' Retirement System, making their employees members of said System, and sets forth the procedure by which participation may be accomplished; and WHEREAS, one of the steps required in the procedure is the adoption by the governing body of the public agency of a resolution giving notice of intention to approve a contract for such participation of said agency in the Public Employees' Retirement System, which resolution shall contain a summary of the major provisions of the proposed retirement plan; and WHEREAS, attached is a summary of the major provisions of the proposed plan; NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it does hereby give notice of intention to approve a contract between said governing body and the Board of Administration of the Public Employees' Retirement System, providing for participation of said agency in said retirement system, a copy of said contract and a copy of the summary of the major provisions of the proposed plan being attached I hereto, as an "Exhibit", and by this reference made a part hereof. i By: Presiding Officer i Title Date adopted and approved (New Agency) CON-301 (Rev.4/96) (}uauapuauav;aWWOO S2 M83 4LZV) uoilnlosaa;uawpumv}aea;uoo S2 MUD 3uM43e;;v LO CaIPERS EXHIBIT California Public Employees' Retirement System CONTRACT Between the Board of Administration California Public Employees' Retirement System and the Mayor and Common Council of the City of San Bernardino Acting as the Successor Agency to, the j Redevelopment Agency of the City of San Bernardino Successor Agency to the Redevelopment Agency t of the City of San Bernardino i t In consideration of the covenants and agreement hereafter contained and on the part of both parties to be kept and performed, the governing body of above public agency, hereafter referred to as "Public Agency", and the Board of Administration, Public Employees' Retirement System, hereafter referred to as "Board", hereby agree as follows: 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. 2. Public Agency shall participate in the Public Employees' Retirement f System from and after 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. 4u8uapu8wV 1OWWOO SUMeO : 6LZV) uoiInjosaa;uawpuawV pea}uoo SUMe:D 3uaua40e1 1d PLEASSE CEO NOT SIGN "EXHIBIT ONLY" 3. Public Agency agrees to indemnify, defend and hold harmless.the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, j demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under i the Public Agency's prior non-CaIPERS retirement program. (b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives)which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or i formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. . 4. 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: ! f a. Employees other than local safety members (herein referred to as local miscellaneous members). 5. Any exclusion(s) shall remain in effect until such time as the Public f Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non-compliance with any federal tax l laws or regulations. If such a determination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract. 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. SAFETY EMPLOYEES. i (}uauapuauay}oea}uOO PLIr SE SM3die:) (( 6((1''��Zb) ((m4j a n�osai}uawpumV}oe.i}uoo S113dPo :}uauayoe}}d DAO 6. This contract shall be a continuation of the benefits of the contract of San Bernardino Economic Development Agency, herein after referred to as "Former Agency". The accumulated contributions, assets, and liability for prior and current service under Former Agency's contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred on February 1, 2012. a. All benefits provided under this contract shall apply to all past service for former employees of the San Bernardino Economic Development Agency. 7. The contract of San Bernardino Economic Development Agency shall be a continuation of the benefits of the contract of Redevelopment Agency of the City of San Bernardino between August 1, 1982 and prior to the effective date of this contract pursuant to Section 20508 of the Government Code, Redevelopment Agency of the City of San Bernardino having ceased to exist and succeeded by San Bernardino Economic Development Agency on August 1, 1982. San Bernardino Economic Development Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under the contract of Redevelopment Agency of the City of San Bernardino with respect to its employees. 8. San Bernardino Economic Development Agency and the City of San Bernardino have agreed to a merger of the redevelopment function of the contract of City of San Bernardino into the contract of San Bernardino Economic Development Agency. The contract of San Bernardino Economic Development Agency shall be a continuation of the contract of City of San Bernardino between August 1, 1982 and prior to the effective date of this contract, with respect to the Redevelopment function, pursuant to Section 20508 of the Government Code. San Bernardino Economic Development Agency, by its contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under the contract of City of San Bernardino with respect to its employees performed redevelopment function. Such merger is effective as of August 1, 1982. i a. Service performed for the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino prior to August 1, 1982 shall be subject to the terms and conditions of the City of San Bernardino's contract as they were in effect at that time j in addition to the benefits provided in San Bernardino Economic Development Agency's contract. Service performed on and after August 1, 1982 and prior to the effective date of this contract shall be subject to the terms and conditions of the San Bernardino Economic Development Agency's contract. For purposes of computing retirement allowances, separate calculations shall be made for services performed under each contract. (1uauapu8uay1oWWOO S2 MB3 UZ17) uognlosaa;uawpumV joea;uoo SlAdleo :1u9uay3eJJV q t-I VOL- Uu iau i uIUVJ LAI 11U1 I UIVLi 9. The percentage of final compensation to be provided for each year of credited current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full). 10. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous in employment before and not on or after July 1, 2003 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). j 11. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member 1 in employment on or after July 1, 2003 shall be determined in accordance with Section 21354.3 of said Retirement Law (3% at age 60 Full). 12. Public Agency elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation) for classic local miscellaneous members only. b. Sections 21624 and 21626 (Post-Retirement Survivor Allowance). 13. 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 of said Retirement System. i 14. 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. 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. (1u9wPU0wV}yeaWOO SN3d1e3 : UZ17) minlosaa 1u8wPu9wV PeAuOO SH3dleo :1u9wg3e11V q M 7 LO 15. Contributions required of Public Agency and its employees shall be a subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the a Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 16. 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 I payments between the employee and the Board. i BOARD OF ADMINISTRATION MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNAR*O j £.e, ACTING AS THE SUCCES ,} AGENCY TO THE REDEVL:,OPMENT AGENCY OF THE CITY��SAN I BERNARDINOQ PUBLIC EMPLOYEES' RETIREMENT SYSTEM SUCCESSOR AGEN1(`TO THE ° REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BY '��� BY >` �e RENEE OSTRANDER, CHIEF PRESIDING?MCER EMPLOYER ACCdUNT MANAGEMENT DIVISION �1 PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: I i Clerk NEW AGENCY CaIPERS ID#1122783437 PERS-CON-702N 0u8wPu8wV IOWWOO S113dleO : UZO uoijnjoseU juawpumv Joeiluoo Su3dleo :juqwLj3ejjV CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer. Account Management Division Retirement Account Services Section 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 of the (governing body) (public agency) on (date) Clerk/Secretary Title PERS-CON-12(rev. 1/96) (1u9uapu8uay;ae WOO SN3dleO : 4LZV) uoi}njosaZ{ ;uawpuswV 43e4u03 SNMeO .;uawyoel;y co CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM LO Employer Account Management Division a Retirement Account Services Section P.O. Box 942709 Sacramento, CA 94229-2709 a (888) CalPERS (225-7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary for the increase/change in retirement benefit(s) have been made public at a public meeting of the of the (governing body) i (public agency) on which is at least two weeks prior to the adoption of the (date) Resolution/ Ordinance. Adoption of the retirement benefit increase/change will not be placed on the consent calendar. Clerk/Secretary I Title Date i I I PERS-CON-12A(rev. 1/96) i (ivauapuauay ioe.iiu03 S213d1eO : 6LZV) minlosaa ivawpuawV iaWWOO SN3d1e3 :iu8Wt43eiid q M Li a r CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 0 a EMPLOYEE BALLOT Miscellaneous Member Group Successor Agency to the Redevelopment Agency of the City of San Bernardino The Mayor and Common Council of the City of San Bernardino Acting as the Successor Agency of the Redevelopment Agency of the City of San Bernardino of the Successor Agency to the Redevelopment Agency of the City of San Bernardino shall not include in the contract with the Board of Administration of the California Public Employees' Retirement System any group if a majority of its members vote to disapprove the proposed plan. (Government Code Section 20470) The proposed plan is described in Exhibit A of the Successor Agency to the Redevelopment Agency of the City of San Bernardino's Resolution of Intention to Contract with CalPERS and is outlined in the attached Summary of Major Provisions. YES [ ] Do you approve the proposed plan? NO [ ] I I i (New Agency/Adding a Category) (Rev.4/62) I (1u9uapu9uad1oWWOO S213dleO : UZO uoiInlosaa;uawpuewVJoea}uoo S113d1e3 :4u8ua43e11V CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Account Management Division Retirement Account Services Section P.O. Box 942709 Sacramento, CA 94229-2709 (888) CaIPERS (225-7377) CERTIFICATION OF EMPLOYEE ELECTION I hereby certify that the following employees of the Successor Agency to the Redevelopment Agency of the City of San Bernardino have expressed their approval or disapproval of said agency's participation in the California Public Employees' Retirement System on the basis described in the Resolution of Intention adopted by said agency's governing body on in such manner as to permit each employee to separately and secretly express his choice and that the outcome of such election was as follows: Number of Number of votes Number of votes employees approving said disapproving said eligible to vote participation participation Local Miscellaneous Members as defined in Govt. Code Section 20383 Clerk or Secretary 3 i Date i i (New Agency/Adding a Category) PERS-CON-15N (Rev.9/03) i RESOLUTION NO. 1 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ., w APPROVING A RESOLUTION OF INTENTION TO APPROVE A CONTRACT 4 BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC E 5 EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR a 6 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN L 7 BERNARDINO. o U 8 WHEREAS, on February 1, 2012 the Redevelopment Agency of the City of San Cn W a 9 Bernardino was dissolved pursuant to Health and Safety Code ("HSC") section 34172 (a)(1), � v 10 and N 11 '" 12 WHEREAS, the City received notification by CalPERS that a new contract is o A 13 necessary to clarify its relationship with the Successor Agency, u 14 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR 15 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN v 16 BERNARDINO AS FOLLOWS: aD E 17 SECTION 1. The City Manager of the City of San Bernardino acting as the c r 18 Executive Director of the Successor Agency is hereby authorized and directed to approve 19 the Resolution of Intention to approve a contract between Ca1PERS and the Mayor and 2 20 0 21 Common Council of the City of San Bernardino acting as the Successor Agency to the L 22 Redevelopment Agency of the City of San Bernardino Successor Agency to the a M 23 Redevelopment Agency of the City of San Bernardino, a copy of which is attached hereto 24 E as Exhibit "A". 25 a 26 SECTION 2. The authorization granted hereunder shall expire and be void and of no 27 further effect if the Resolution of Intention is not issued within sixty (60) days following the 28 effective date of the Resolution. Packet Pg. 371 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 1 BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING A RESOLUTION OF 2 INTENTION TO APPROVE A CONTRACT BETWEEN THE BOARD OF 3 ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ACTING 4 AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF E SAN BERNARDINO. 5 a 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor a c 7 and Common Council of the City of San Bernardino acting as the Successor Agency to the v 8 � Redevelopment Agency of the City of San Bernardino at a meeting a 9 10 thereof,held on the day of , 2016,by the following vote, to wit: ti N 11 Council Members: AYES NAYS ABSTAIN ABSENT N 12 0 . MARQUEZ N 13 BARRIOS w 14 L 15 VALDIVIA 0 U 16 SHORETT d E 17 NICKELS o w 18 JOHNSON o c 19 MULVAHIL o w 20 0 21 Georgeann Hanna, City Clerk 22 a The foregoing Resolution is hereby approved this day of , 2016. v 23 w 24 E 25 R. Carey Davis, Mayor a City of San Bernardino Q 26 Approved as to form: 27 Gary D. Saenz, City Attorney Q 28 By: Packet Pg.372 .