HomeMy WebLinkAbout05.K- Authorization of Contract with California Public Employees' Retirement System 5,K
RESOLUTION (ID # 4354) DOC ID: 4354 D
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Nita McKay M/CC Meeting Date: 03/21/2016
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
Authorizing a Contract with California Public Employees' Retirement System. (#4354)
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' CaIPERS payments have been approved by the California
Department of Finance.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
February 1, 2016 - Resolution 2016-14 was adopted.
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 ("CaIPERS") 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/CaIPERS 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.
On February 1, 2016, the Mayor and Common Council, acting as the Successor Agency
to the Redevelopment Agency of the City of San Bernardino, adopted Resolution No.
2016-14 approving a Resolution of Intention to approve a contract between the Board of
Administration California Public Employees' Retirement System and the Mayor and
Updated: 3/17/2016 by Georgeann "Gigi" Hanna D I Packet Pg. 324
4354
Common Council of the City of San Bernardino Acting as the Successor Agency to the
Redevelopment Agency of the City of San Bernardino.
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").
Staff was recently notified by CaIPERS that a new contract is necessary to clarify its
relationship with the Successor Agency. On February 1, 2016, the Mayor and Common
Council, acting as the Successor Agency to the Redevelopment Agency of the City of
San Bernardino, approved a Resolution of Intention to merge the CaIPERS contract of
the former Economic Development Agency into a new contract with the Successor
Agency to the Redevelopment Agency of the City of San Bernardino. This action
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 CaIPERS 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/CaIPERS Contract.
Upon adoption of the Resolution of Intention by the Mayor and Common Council, an
employee election was conducted with a unanimous vote to approve the contract
merger. Results of the election were certified and submitted to CaIPERS. Adoption of
the attached resolution is the final action needed to complete the contract with
CaIPERS.
City Attorney Review:
Supporting Documents:
Reso City Contract wity CaIPERS(DOC)
PERS Contract (PDF)
Reso 2016-14 (PDF)
PERS Resolution Authorizing Contract (PDF)
Updated: 3/17/2016 by Georgeann "Gigi" Hanna D Packet Pg.325
5.K
4354
PIERS Certification of Final Action of Gov Body (PDF)
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Packet Pg. 326
Updated: 3/17/2016 by Georgeann "Gigi" Hanna D
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5.K.a
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I RESOLUTION NO.
2
3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
4 SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING A
5 CONTRACT WITH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM y
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6 WHEREAS, the Public Employees' Retirement Law provides for the participation of a o
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7 Public Agency in the California Public Employees' Retirement System, making its employees
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8 members of said System; and Q
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10 WHEREAS, the Mayor and Common Council of the City of San Bernardino, acting as the
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11 Successor Agency to the Redevelopment Agency of the City of San Bernardino, on February 1, o
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12 2016 adopted Resolution 2016-14, giving notice of intention to approve a contract providing for
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WHEREAS, the employees of said public agency, whose memberships in said Retirement M
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16 System are contemplated, have approved said participation, by majority vote; w
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17 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
lg COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR 3
AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
19 BERNARDINO,AS FOLLOWS:
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20 Section 1. That a contract between the Mayor and Common Council of the City of San r
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21 Bernardino acting as the Successor Agency to the Redevelopment Agency of the City of San
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Bernardino and the Board of Administration, California Public Employees' Retirement System is
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hereby authorized, a copy of said contract being attached hereto as Exhibit "A" and by such
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25 reference made a part hereof as though herein set out in full; and
26 Section 2. That the presiding officer of said governing body is hereby authorized,
27
empowered and directed to execute said contract for and on behalf of said public agency.
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5.K.a
1 Section 3. This Resolution shall take effect upon its adoption and execution in the
2 manner as required by the City Charter.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE
`' .. 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING A
3 CONTRACT WITH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Successor
5 Agency to the Redevelopment Agency of the City of San Bernardino, at a meeting thereof, held
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6 on the day of March, 2016, by the following vote, to wit:
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Council Members Ayes Nays Abstain Absent W
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9 BARRIOS
10 VALDIVIA
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16 Georgeann Hanna, City Clerk a
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17 The foregoing Resolution is hereby approved this day of March, 2016.
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20 R. Carey Davis, Chairman
Successor Agency to the Redevelopment Agency v
21 of the City of San Bernardino
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23 Approved as to Form: _
Gary D. Saenz, City Attorney
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By:
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3 Packet Pg. 329
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CAPERS
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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
Redevelopment Agency of the City of San
Bernardino
Successor Agency to the Redevelopment Agency
of the City of San Bernardino
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
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.
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3. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its a
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
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
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
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:
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
Employees' Retirement System determines that continuing said
exclusion(s) would risk a finding of non-compliance with any federal tax
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.
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6. This contract shall be a continuation of the benefits of the contract of San
Bernardino Economic Development Agency, herein after referred to as a
,.. "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.
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
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.
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9. The percentage of final compensation to be provided for each year of a
credited current service as a new local miscellaneous member shall be
determined in accordance with Section 7522.20 of said Retirement Law a
(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).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
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.
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.
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15. Contributions required of Public Agency and its employees shall be a
subject to adjustment by Board on account of amendments to the Public
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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
payments between the employee and the Board.
BOARD OF ADMINISTRATION 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
PUBLIC EMPLOYEES' RETIREMENT SYSTEM SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
BY BY
RENEE OSTRANDER, CHIEF PRESIDING OFFICER
EMPLOYER ACCOUNT MANAGEMENT DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
NEW AGENCY CaIPERS ID#1122763437
PERS-CON-702N
5.K.c
RESOLUTION NO. 2016-14
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
APPROVING A RESOLUTION OF INTENTION TO APPROVE A CONTRACT
4 BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC
5 EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR
6 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
7 BERNARDINO.
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g WHEREAS, on February 1, 2012 the Redevelopment Agency of the City of San Cn
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9 Bernardino was dissolved pursuant to Health and Safety Code ("HSC") section 34172 (a)(1),
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and
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12 WHEREAS, the City received notification by Ca1PERS that a new contract is a
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13 necessary to clarify its relationship with the Successor Agency,
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14 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
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15 COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR w
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
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16 BERNARDINO AS FOLLOWS: M
17 SECTION 1. The City Manager of the City of San Bernardino acting as the
18 0
Executive Director of the Successor Agency is hereby authorized and directed to approve c
19
20 the Resolution of Intention to approve a contract between Ca1PERS and the Mayor and
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21 Common Council of the City of San Bernardino acting as the Successor Agency to the
22 Redevelopment Agency of the City of San Bernardino Successor Agency to the Q
23 Redevelopment Agency of the City of San Bernardino, a copy of which is attached hereto
24
25 as Exhibit "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. 335
5.K.c
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
SAN BERNARDINO.
5
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
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and Common Council of the City of San Bernardino acting as the Successor Agency to the 0
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9 Redevelopment Agency of the City of San Bernardino at a joint regular meeting thereof, held w
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10 on the I"day of February, 2016, by the following vote, to wit: �
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11 Council Members: AYES NAYS ABSTAIN ABSENT
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MARQUEZ X
13
BARRIOS X
14 a
15 VALDIVIA X
16 SHORETT X
17 NICKELS X
18 JOHNSON X N
19
MULVAHIL X
20
21
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Georgeawf Hanna, C ', City Clerk
22 �. a
The foregoing Resolution is hereby approved this day of February, 2016.
23
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25 R. Carey Daeermardino, Mayor
City of San
26 Approved as to form:
27 Gary D. Saenz, City Attorney
28 By:
FPacket Pg. 336
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SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO a
RESOLUTION AUTHORIZING A CONTRACT
No.
WHEREAS, the Public Employees' Retirement Law provides for the participation of a
Public Agency in the California Public Employees' Retirement System,
making its employees members of said System; and
WHEREAS, 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 of the Successor Agency to the Redevelopment Agency of the
City of San Bernardino on I , adopted a
Resolution giving notice of intention to approve a contract providing for such
participation; and
WHEREAS, the employees of said public agency, whose memberships in said
Retirement System are contemplated, have approved said participation, by
majority vote;
NOW, THEREFORE, BE IT RESOLVED, that a contract between 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 of the
Successor Agency to the Redevelopment Agency of the City of San
Bernardino and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said contract being
attached hereto and by such reference made a part hereof as though
herein set out in full; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the presiding officer of said
governing body is hereby authorized, empowered and directed to execute
said contract for and on behalf of said public agency.
Adopted this day of ,
Presiding Officer
Attest:
Clerk or Secretary
New Agency
PERS-CON-21 (Rev. 1/98)
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Ui CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM a,
Employer Account Management Division
Retirement and Social Security Contracts Unit Y
P.O. Box 942709 a
' Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the of the
(governing body)
(public agency)
considered and adopted on , by an affirmative vote of a
(date)
majority of the members of said Governing Body, Ordinance/ Resolution No.
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/ Resolution in the form furnished by said Board of
Administration being attached hereto.
Adoption of the retirement benefit increase/change was not placed on the consent
calendar.
Clerk/Secretary
Title
Date
PERS-CON-5(Rev.2/8/2016)