HomeMy WebLinkAboutAGENDA REPORT 2004 0901 CC REG ITEM 09DTO:
FROM:
DATE:
ITEM q-D9
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
Deborah S. Traffenstedt, ATCM /City Clerk :T�_T_
August 13, 2004 (CC Meeting of 9/1/04)
SUBJECT: Consider Resolution of Intention to Amend the Contract
between the Board of Administration of the California
Public Employees' Retirement System (CalPERS) and the City
of Moorpark and First Reading of an Ordinance Authorizing
an Amendment to the Contract between the City and the Board
of Administration of CalPERS to add a Pre - Retirement
Optional Settlement 2 Death Benefit
BACKGROUND
On July 21, 2004, the City Council authorized approval of a new one -
year Memorandum of Agreement (MOA) with Service Employees
International Union AFL -CIO, CLC Local 998, which included agreement
to amend the CalPERS contract to add a pre- retirement optional
settlement 2 death benefit (pursuant to Section 21548 of the
Government Code). This benefit once added to the City's contract
with CalPERS would be available to all City employees that have a
CalPERS retirement benefit.
DISCUSSION
Adding the Optional Settlement 2 Death Benefit allows the spouse of a
deceased member, who was eligible to retire for service at the time
of death, to elect to receive a monthly allowance equal to the amount
the member would have received if he /she had retired for service on
the date of death and elected the highest monthly allowance a member
can leave a spouse.
In accordance with Section 7507 of the Government Code, the future
annual costs of the proposed contract amendment are required to be
made public at a public meeting at least two weeks prior to the
adoption of the final ordinance. The costs are generally disclosed
on page 2 of the attached CalPERS letter and are as follows:
0 00152
Honorable City
September 1, 2
Page 2
1) Change in
2) Change in
3) Change in
Cou
004,
the
the
the
ncil
Regular Meeting
Present Value of Benefits $63,004
Accrued Liability $34,529
Total Employer Rate 0.213%
The documents received from CalPERS include a Resolution of Intention
and an Amendment to Contract (Attachment 1), which cannot be altered,
since the CalPERS forms must be used. Upon City Council adoption of
the Resolution of Intention, a City resolution number will be
assigned and typed at the top of the CalPERS Resolution Form. Staff
has prepared an ordinance consistent with the CalPERS sample (last
page of Attachment 1), and the draft ordinance is included as
Attachment 2. Staff is recommending that the Council introduce the
ordinance for first reading on September 1. 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 October 6, 2004. The effective date
of the ordinance would be 30 days after adoption.
STAFF RECObMNDATION
1. Adopt Resolution of Intention No. 2004-
2. Waive full reading and introduce Ordinance No. for first
reading; and
3. Direct that second reading of the ordinance shall occur on
October 6, 2004.
Attachments:
1. Letter from CalPERS dated 7/2/04 including Resolution of
Intention, Amendment to Contract, required certification forms,
and sample ordinance form.
2. Draft Ordinance
0001 �.'1
Actuarial & Employer Services Division
P.O. Box 942709
AfRo",_ Sacramento, CA 94229 -2709
Telecommunications Device for the Deaf - (916) 326 -3240
CAPERS (888) CalPERS (225 -7377) FAX (916) 326 -3005
July 2, 2004
Mr. Steven Kueny
City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Dear Mr. Kueny:
JUL 1- 2 2004,
CI 7°Y OF MOORPARK
OFFICE OF THE CITY MANAGEF
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 21548 (Pre- Retirement Optional Settlement 2 Death Benefit) for local
miscellaneous members.
Also enclosed are the following documents:
Form CON -12, Certification of Governing Body's Action.
2. Form CON -12A, Certification of Compliance With Government Code Section
7507.
3. Form CON -11A, 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.
Any change in the employee or employer contribution rates will become effective as of
the effective date of the contract amendment.
The Contract Amendment Cost Analysis (actuarial valuation) information was based on
the most recent annual valuation and is good until the next annual valuation report is
sent to your agency. If your agency does not take action to amend its contract and we
have mailed the next annual valuation report to your agency, you must contact our
office for an updated cost analysis.
ATTACHMENT 1 ,,y
California Public Employees' Retirement System 000154
Lincoln Plaza - 400 P Street - Sacramento, CA 95814
City of Moorpark -2- July 2, 2004
Disclosure of the cost of this Contract Amendment
We recommend that the agency disclose these values identified in the amendment
actuarial valuation for the adoption of this plan amendment:
1) Change in the Present Value of Benefits (page 1) $ 63,004
2) Change in the Accrued Liability (page 2) $ 34,529
3) Change in the Total Employer Rate (page 3) 0.213%
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 contract 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
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.
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 cannot be earlier than the first day of a payroll
period 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. Another contract amendment cannot be started
until this amendment is completed or cancelled.
0100155
City of Moorpark -3- July 2, 2004
If you have any questions regarding this letter or the enclosed material, please call
(888) CalPERS (225- 7377).
Sincerely,
Alice J. Cook
Employer Representative
Public Agency Contract Services
AJC:rc
Enclosures
cc: Glendale Regional Office
WDOIS6
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 21548 (Pre- Retirement Optional
Settlement 2 Death Benefit) 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.
Date adopted and approved
(Amendment)
CON -302 (Rev. 4/96)
Presiding Officer
Title
000157
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT 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,
June 2, 2000 and August 2, 2003 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 August 2, 2003, and hereby replaced by the following paragraphs
numbered 1 through 11 inclusive:
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.
000158
P i t.J U 0 i "il f
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).
C. Section 20903 (Two Years Additional Service Credit).
d. Section 21548 (Pre- Retirement Optional Settlement 2 Death
Benefit).
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
PUBLIC EMPLOYEES' RETIREME, T SYSTEM
5 I
BY
KENNETH W. MARZION, 64TEF
ACTUARIAL & EMPL SERVICES DIVISION
PUBLIC EMPLOYE 144ETIREMENT SYSTEM
CITY COUNICL
CITY OF MOORPARK
PRESIDING OFFICER
.y
yam,` ,
.J
Witness Date..
Attest:
Clerk
AMENDMENT ER# 1362 � ��� °���U
PERS- CON -702A (Rev. 8 \02) a ►�°°
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
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
(governing body)
(public agency)
on
(date)
Clerk/Secretary
Title
PERS- CON -12 (rev. 1/96)
of the
000161
This is a SAMPLE ORDINANCE and is intended to be used as a guide only. It is included
to allow you sufficient time to prepare your Ordinance for a first and final reading. It&
Resolution of Intention and accomnanvina documents should not be held pending final
readina of the Ordinance.
ORDINANCE NO.
An Ordinance of the of the
(Name of Governing Body)
authorizing an amendment
(Name of Public Agency)
to the contract between the of the
(Name of Governing Body)
and the
(Name of Public Agency)
Board of Administration of the California Public Employees' Retirement System.
The of the
(Name of Governing Body)
does ordain as follows:
(Name of Public Agency)
Section 1.
That an amendment to the contract between the
(Name of Governing Body)
of the
(Name of Public Agency)
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 of the
(Title of Presiding Officer) (Name of Governing Body)
is hereby authorized, empowered, and directed to execute said amendment for and on behalf of
said Agency.
Section 3.
This Ordinance shall take effect days after the date of its adoption, and prior to the
expiration of days from the passage thereof shall be published at least
in the , a newspaper of general circulation,
(Name of Newspaper)
published and circulated in the and thenceforth and
(Name of City or County)
thereafter the same shall be in full force and effect.
Adopted and approved this day of
Presiding Officer
Attest:
Clerk
PERS- CON -11A (Rev. 8/94) (Amendment)
�G2
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
WHEREAS, at its meeting of September 1, 2004, the City
Council considered an amendment to the contract between the City
of Moorpark and the Board of Administration of the California
Public Employees' Retirement System to add a Pre - Retirement
Optional Settlement 2 Death Benefit in accordance with Section
21548 of the Government Code.
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. If any section, subsection, sentence, clause,
phrase, part or portion of this Ordinance is for any reason held
to be invalid or unconstitutional by any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council declares
that it would have adopted this Ordinance and each section,
subsection, sentence, clause, phrase, part or portion thereof,
irrespective of the fact that any one or more section,
subsections, sentences, clauses, phrases, parts or portions be
declared invalid or unconstitutional.
SECTION 4. This Ordinance shall become effective thirty
(30) days after its passage and adoption.
SECTION 5. 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
ATTACHMENT 000163
Ordinance No.
Page 2
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 day of , 2004.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Exhibit: Amendment to Contract (Between the Board of
Administration, California Public Employees' Retirement
System, and the City Council of the City of Moorpark)
00()I