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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: LINN LIVINGSTON, DIRECTOR
OF HUMAN RESOURCES
Subject: A RESOLUTION OF
INTENTION AND ORDINANCE
AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE
PUBLIC EMPLOYEES' RETIREMENT
SYSTEM (PERS) AND THE CITY OF
SAN BERNARDINO TO PROVIDE A
3% @ 50 RETIREMENT BENEFIT FOR
SAFETY EMPLOYEES.
MICC Meeting Date: July 21, 20U8
Dept: HUMAN RESOURCES
Date: July 8, 2008
Synopsis of Previous Council Action:
On May 7, 2001, the Mayor and Common Council approved an ordinance authorizing
an amendment to the contract between the Mayor and Common Council of the City of
San Bernardino and the Board of Administration of the Public Employees' Retirement
System (3% @ 55 Benefit) and repealing Ordinance No. MC-1096.
Recommended Motion:
1. Adopt Resolution cllntention.
2. Waive further reading and layover said Ordinance for final adoptiOl'l 011 September
15,2008. 'At%v~ ~~~-h.J
~ Signature
Contact person: Linn Livinaston
Phone:
384-5161
Supporting data attached:
Ward:
FUNDING REQUIREMENTS: Amount: $2.101.600 Annuallv
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
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Agenda Item No. J Y
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_tJ'nM SAN -BERNARDINO- REQUESTfOR_CDUIICIL ACTION
Staff Report
Subiect:
A Resolution of Intention and Ordinance authorizing an amendment to the contract between the
Public Employees' Retirement System (PERS) and the City of San Bernardino to provide a 3%
@ 50 retirement benefit for safety employees.
Backl!round:
During the negotiations process with the Police and Fire Safety bargaining groups, the Mayor
and Common Council agreed to amend the current retirement formula for employees in the
safety bargaining groups to a 3% @ 50 formula.
The agreement requires the City to amend their PERS contract to provide Section 21362.2 (3%
@ 50 full formula) for safety members, effective 111/09. The anticipated employer rate is
5.058% based on the June 30, 2006 PERS valuation. The City has requested and was awarded a
30 year fresh start reducing the employers rate to 4.349% with an annual cost to the City for this
benefit of $1,346,700 for Police and $754,900 for Fire (total of $2,101,600), based on the PERS
valuation.
c
-Pursuant 1O l'ERS'1egutations, the-Mayor- andC-cmmen C6l1Heil mllst appro'le-the-ReSGlution of
Intention, and an Ordinance approving an amendment.
The attached Ordinance and Resolution-authorizes an amendmeIirOflh-e--ciry cofitratrwithi'ERS
(Exhibit A) to provide the 3% @ 50 benefit for all safety members.
Financial Imnact:
The projected cost to amend the CitY's PERS contract to provide a3%@-stlretirementbenefit
for safety members was previously provided and approved with the adoption of each safety
group's MOD. The Police MOD was adopted on August 21, 2006; the Fire MOD was adopted
on March 6, 2006.
The 2008-09 FY cost is $1,050,800 (January 1,2009 through June 30, 2009) which is included in
the FY 2008-09 budget.
The estimated on-going annual cost for the 3% @ 50 benefit is $2,101,600 using a 30-year fresh
start for the amendment amortization base.
Recommendation:
I Adopt Resolution ofIntention.
o 2 Waive further reading and layover said Qrdinance for final adoption on September 15,2008.
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Resolution No
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RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO TH
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMO
COUNCIL OF THE CITY OF SAN BERNARDINO.
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WHEREAS, the Public Employees' Retirement Law permits the participation of publi
agencies and their employees in the Public Employees' Retirement System by the execution of
contract, and sets forth the procedure by which said public agencies may elect to subjec
themselves and their employees to amendments to said Law; and
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WHEREAS, one of the steps in the procedures to amend this contract is the adoption b
the governing body of the public agency of a resolution giving notice of its intention to approv
an amendment to said contract, which resolution shall contain a summary of the change propose
in said contract; and
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14 WHEREAS, the-following is a-statement of the proposed change:
15 To provide Section 21362.2 (3.0% @ 50 Full formula) for local safety members.
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NOW, THEREFORE, BE IT RESOLVED that the Mayor and Common Council ofth
City San Bernardino do hereby give notice of intention to approve an amendment to the contrac
between said City and the Board of Administration of the Public Employees' Retirement System
a copy of said amendment being attached hereto, as Exhibit "A" and by this reference made
part hereof.
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III
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o RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO TH
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNI
2 PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE MAYOR AND COMMO
COUNCIL OF THE CITY OF SAN BERNARDINO.
5 the Common Council of the City of San Bernardino at a
meeting thereof, hel
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
6 on
day of
, 2008, by the following vote, to wit:
7
8 COUNCILMEMBERS: AYES NA YES ABSTAIN ABSENT
ESTRADA
9
BAXTER
10 BRINKER
11 DERRY
12 KELLEY
0 13 JOHNSON
MCCAMMACK
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16 Rachel G. Clark, City Clerk
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The foregoing resolution IS hereby approved this day 0
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,2008.
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20 Patrick J. Morris, Mayor
City of San Bernardino
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22 Approved as to form:
23 JAMES F. PENMAN,
City Attorney
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da ltems:Reso.3.0'1I@50.2008
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Ordinance No
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CI
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRAC
BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF S
BERNARDINO AND THE BOARD OF ADMINISTRATION Of' THE CALIFORNI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDIN
DO ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the Mayor and Commo
Council of the City of San Bernardino and the Board of Administration of the California Publi
Employees' Retirement System is hereby authorized, a copy of said amendment being attache
hereto, marked Exhibit "A" and by such reference made a part hereof as though herein set out i
12 full.
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SECTION 2. The Mayor of the City of San Bernardino is hereby authorized, empowere
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and directed to execute said amendment for and on behalf of said Agency.
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SECTION 3. This Ordinance shall take affect thirty (30) days after the date of it
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adoption, and within 15 days from the passage thereof, shall be published at least once in the S
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Bernardino County Sun, a newspaper of general circulation, published and circulated in the Ci
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of San Bernardino and thenceforth and thereafter the same shall be in full force and effect.
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III
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III
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AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CIT
OF SAN BERNARDINO AUTHORIZING AN AMENDMENT TO THE CONTRAC
2 BETWEEN THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
BERNARDINO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNI
3 PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
4
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor an
5
the Common Council of the City of San Bernardino at a
meeting thereof, hel
6
, 2008, by the following vote, to wit:
on
day of
7
8
COUNCILMEMBERS:
AYES
NA YES
ABSTAIN ABSENT
9 ESTRADA
10 BAXTER
BRINKER
DERRY
KELLEY
JOHNSON
MCCAMMACK
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12
13
14
15
16
Rachel G. Clark, City Clerk
17
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The foregoing resolution IS hereby approved this
day 0
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,2008.
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21
Patrick J. Morris, Mayor
City of San Bernardino
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Approved as to form:
23
JAMES F. PENMAN,
City Attorney
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H end.ltems:Ordinance.3o/o@50.2008
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EXHIBIT "A"
A
CalPERS
EXHIBIT
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, June 1, 2001, July 1, 2001 and January 1, 2008 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective January 1, 2008, and hereby replaced by the following paragraphs
numbered 1 through 14 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.
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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 thqse, 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)
0 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. Govemment Code
Section 20336 superseded this contract provision by providing that any
0 such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Govemment Code Section 20305 effective July
1,1994.
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6. The percentage of final compensation to be provided for each year of
credited prior and current service as' a local miscellaneous member in
employment before and not on or after January 1, 2008 shall be
determined in accordance with Section 21354 of said Retirtlment 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 miscellaneous member in
employment on or after January 1 , 2008 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
8. 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 21362.2 of said Retirement Law
(3% at age 50 Full). Effective January 1, 2009.
9. Public Agency elected and elects to be subject to the following optional
provisions:
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a.
Sectlons-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).
e. Section 21222.2 (One-Time 5% Increase - 1971). Legislation
repealed said Section effective January 1, 1980.
1. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation
repealed said Section effective January 1, 2002.
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local fire members only. .
h.
Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
o
i.
Section 21635 (Post-Retirement Survivor Allowance to Continue
After Remarriage) for local fire members only.
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10. 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 Govemment Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as
provided in Govemment Code Section 20834.
11. 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.
12. 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 and local fire members.
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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.
13. 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.
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14. 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.
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B. This amendment shall w'lil'lfe"ciive on the 1 day of January 2009
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BOARD OF ADMINIp.1RATION CITY COUNCIL
PUBLIC EMPLQYGES'.RETIREMENT SYSTEM CITY OF SAN BERNARDINO
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BY
LORI MCGARTLAND, CHIEF
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
APPRuVED AS TO FORM~
James F. Penman,
City Attorney
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AMENDMENT ER# 0061
PER~702A(Rev.10105)
BY
PRESIDING OFFICER
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WitnellS~te
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Clerk
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
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. 1196)
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CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I 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
in retirement benefit(s) have been made public at a public meeting of the
of the
(governing body)
(public agency)
on
which is at least two weeks prior to the adoption of the
(date)
Resolution I Ordinance.
Clerk/Secretary
Title
Date
PERS-CON-l2A (rev. 1196)