HomeMy WebLinkAboutAGENDA REPORT 2000 0405 CC REG ITEM 10HITEM / 0:_
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MOORPARK CITY COUNCIL'
AGENDA REPORT
TO: Honorable City Council
FROM: Deborah S. Traffenstedt, City Clerk
DATE: March 29, 2000 (CC Meeting of 4/5/00)
SUBJECT: Consider Resolution of Intention to Amend the City's
Contract with the California Public Employees' Retirement
System (CalPERS) and First Reading of an Ordinance
Authorizing an Amendment to the Contract between the City
Council of the City of Moorpark and the Board of
Administration of CalPERS
BACKGROUND AND DISCUSSION
The City has received from CalPERS the documents necessary to effect
an amendment to the City's retirement plan for employees to provide
a 2 percent at 55 formula for local miscellaneous members (see
Attachment 1). The provision of this revised benefit is consistent
with the retirement benefit already provided by other citie in
Ventura County and throughout the State. The attached letter from
CalPERS includes disclosure of the cost of this contract amendment.
As discussed in a separate report for the April 5 agenda, Service
Employees International Union AFL -CIO, CLC Local 998 has agreed to
trade one half of one percent of the previously negotiated pay
increase in July 2000 and July 2001, in recognition of the benefit of
the CalPERS 2 percent at 55 retirement formula and contingent on the
fact that managers and all part -time employees will also have the
same reduction in future salary increases. Amendment of the City's
Salary Plan is tentatively scheduled for the Council's June 21
.meeting.
In order to achieve an effective date at the beginning of July 2000
(start of new fiscal year) for the new retirement benefit, adoption
of the Resolution of Intention (Attachment 1) and first reading of
the ordinance (Attachment 2) should occur on April 5. The Resolution
of Intention and the Amendment to Contract documents canno be
altered, since the CalPERS forms must be used. Upon adoption of the
Resolution of Intention, a resolution number would be assigned and
typed at the top of the City's copy of that Resolution.
00112
Honorable City Council
March 29, 2000
Page 2
Due to the requirement for a 20 -day period between the adoption of
the Resolution of Intention and adoption of the ordinance, second
reading of the ordinance would be scheduled for May 3.
STAFF RECOMMNDATION
1. Adopt Resolution of Intention No. 2000- approving an
amendment to contract between the Board of Administration of
CalPERS and the City Council of the City of Moorpark.
2. Waive full reading and introduce Ordinance No. for first
reading authorizing an amendment to the contract between the
City Council and the Board of Administration of CalPERS.
3. Direct that second reading of Ordinance No. , authorizing
the amendment to the contract, shall occur on May 3, 2000.
Attachments:
1. Letter from CalPERS dated 3/22/00 including Resolution of
Intention and Amendment to Contract and certification forms
2. Draft Ordinance
000113
AVACHIMENT
�Re �-
CaIPERS
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
March 22, 2000
Mr. John E. Nowak
Assistant City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Dear Mr. Nowak:
i t, w
4_ _.._ T,ry r?r .r
Employer Code #1362
Reply to Section 105
Enclosed are two copies of the Resolution of Intention to amend the agency's contract
to provide Section 21354 (2% @ 55 Full formula) for local miscellaneous members.
Also enclosed are the following documents:
1. Form CON -12, Certification of Governing Body's Action.
2. Form CON -12A, Certification of Compliance With Government Code Section
7507.
3. Form CON -11 A, Sample Ordinance.
The sample Ordinance is a guide only and is included to allow sufficient time to prepare
the Ordinance for a first and final reading. The Resolution of Intention and
accompanying documents should not be. held pending final reading of the Ordinance.
Disclosure of the cost of this Contract Amendment
We recommend that the agency disclose the following costs due to the adoption of this
plan amendment:
1) Change in the Present Value of Benefits $ 686,655
2) Change in the Unfunded Accrued Liability $ 143,133
3) Change in the employer rate 0.000%
California Public Employees' Retirement System
Lincoln Plaza - 400 P Street- Sacramento, CA 95814
City of Moorpark
IPA
March 22, 2000
Government Code Section 7507 requires that the future annual costs of the proposed
contract amendment be made public at a public meeting at least two weeks prior to the
adoption of the final Ordinance. The agency is to certify compliance on the enclosed
Certification of Compliance with Government Code Section 7507.
In summary, the following documents must be returned to this office before we can forward
the actual contracts and other final documents necessary to complete the proposed
amendment. DO NOT HOLD THESE DOCUMENTS PENDING ADOPTION OF THE
FINAL ORDINANCE.
ORIGINAL SIGNATURES ARE REQUIRED
1. Resolution of intention, original or certified copy.
2. Certification of Governing Body's Action (CON -12), original.
3. Certification of Compliance with Government Code Section 7507, (CON -12A),
original or certified copy.
If your agency adopts the Resolution of intention on April 5, 2000, the earliest date the final
Ordinance may be adopted is April 25, 2000. There must be a 20 day period between the
adoption of the Resolution of Intention and the adoption of the final Ordinance pursuant to
Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW.
The effective date of this amendment may be as early as the day following the effective
date of the final Ordinance.
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.
If you have any questions regarding this letter or the enclosed material, please do not
hesitate to contact me at (916) 326 -3993.
Sincerely,
Alice J. Cook
Employer Representative
Public Agency Contract Services
h ••
Enclosures
cc: Los Angeles Regional Office 000115
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF MOORPARK
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System
by the execution of a contract, and sets forth the procedure by which said
public agencies may elect to subject themselves and their employees to
amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption
by the governing body of the public agency of a resolution giving notice of
its intention to approve an amendment to said contract, which resolution
shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21354 (2% @ 55 Full formula) for local
miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the
Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" and by this reference made a part hereof.
By:
Presiding Officer
Title
Date adopted and approved
(Amendment)
CON -302 (Rev. 4/96)
CaIPERS
EXHIBIT
California
Public Employees' Retirement System
— =-
AMEND1 ENT TO CONTRACT
Between the
Board of Administration
California Public ]Employees' Retirement System
and the
City Council
City of Moorpark
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 May
16, 1984, and witnessed April 5, 1984, and as amended effective November 22, 1997
which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 11 _ are hereby stricken from said contract as executed
effective November 22, 1997, and hereby replaced by the following paragraphs
numbered 1 through 11 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.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after May 16, 1984 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.
:"LEASE DO NOT SIGN "EXHIBIT ONU
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. 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. SAFETY EMPLOYEES.
5. 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).
6.. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b, Section 21574 (Fourth Level of 1959 Survivor Benefits).
7. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
8. 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.
9. 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.
10. 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.
11. 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 effective on the -day of
BOARD OF ADMINISTRATION COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYST �o *,\CITY OF MOORPARK
V
BY BY �
KENNETH W. MARZION, PRESIDING OFFICE �
ACTUARIAL & EMPLOYtf RVICES DIVISION
PUBLIC' EMPLOYEES ` lETIREMENT SYSTEM
AMENDMENT
PERS- CON -702A (Rev. 8 \96)
Witness Date
Attest:
Clerk
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 9.4229 -2709
(916) 326 -3420
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)
r
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 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 and /or 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 / Ordinance.
Clerk/Secretary
Title
Date
PERS- CON -12A (rev. 1/96) 000121
Aimwmw
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF MOORPARK,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF MOORPARK AND THE BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the
City Council of the City of Moorpark and the Board of
Administration, California Public Employees' Retirement System
is hereby authorized, a copy of said amendment being attached
hereto, marked Exhibit, and by such reference made a part hereof
as though herein set out in full.
SECTION 2. The Mayor of the City of Moorpark is hereby
authorized, empowered, and directed to execute said amendment
for and on behalf of said Agency.
SECTION 3. This Ordinance shall become effective thirty
(30) days after its passage and adoption.
SECTION 4. The City Clerk shall certify to the passage and
adoption of this ordinance; shall enter the same in the book of
original ordinances of said City; shall make a minute of the
passage and adoption thereof in the records of the proceedings of
the City Council at which the same is passed and adopted; and
shall, within fifteen (15) days after the passage and adoption
thereof, cause the same to be published once in the Moorpark Star
a newspaper of general circulation, as defined in Section 6008 of
the Government Code, for the City of Moorpark, and which is hereby
designated for that purpose.
PASSED AND ADOPTED this
ATTEST:
Deborah S. Traffenstedt, City Clerk
day of
Patrick Hunter, Mayor
, 2000.
001