HomeMy WebLinkAboutAGENDA REPORT 2005 0504 CC REG ITEM 09DMOORPARK CITY COUNCIL
AGENDA REPORT
ITEM q ' -b . MONOWNEW
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
of J�''�i -o70D.5
AC1r10N:"& -rA!e
W.V-W� , , 7 — AWdmfre �wr-&r
,G
TO: Honorable City Council
.:T) sT
FROM: Deborah S. Traffenstedt, Administrative Services Director
DATE: April 21, 2005 (CC Meeting of 5/4/05)
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 Provide Section 21623.5
Retired Death Benefit
BACKGROUND
Beginning in Fiscal Year 2005/2006, CalPERS is requiring employers of
less than 100 active members to participate in a risk pool, which for
the City of Moorpark will be the Miscellaneous 20 at 55 Risk Pool. In
reviewing the CalPERS annual Actuarial Evaluation received in
November 2004 that described the Risk Pool, staff found that an
increase to the lump sum retired death benefit could be obtained for
the Risk Pool without a change to the employer's rate. Staff
subsequently requested the initiation of a contract amendment to
increase the City's retired death benefit from $500 to $5,000
(consistent with Section 21623.5 of the Government Code) . An
actuarial report was not required by CalPERS for this contract
amendment, because there is no increased cost for this benefit under
the Risk Pool. 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
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
0 () 0 11t: ':`' 3
Honorable City Council
May 4, 2005, Regular Meeting
Page 2
has prepared an ordinance consistent with the Ca1PERS 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 May 4. 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 June 1, 2005. The effective date of the ordinance
would be 30 days after adoption.
STAFF RECODMENDATION
1. Adopt Resolution of Intention No. 2005- ;
2. Waive full reading and introduce Ordinance No. for first
reading; and
3. Direct that second reading of the ordinance shall occur on June
1, 2005.
Attachments:
1. Letter from CalPERS dated 4/15/05 including Resolution of
Intention, Amendment to Contract, required certification forms,•
and sample ordinance form.
2. Draft Ordinance
00001,7011
r.
Actuarial & Employer Services Division ,
P
=D
.O. Box 942709
Jfk,%�� Sacramento, CA 94229 -2709
Telecommunications Device for the Deaf - (916) 795 -3240
CAPERS (888) CalPERS (225 -7377) FAX (916) 795 -3005
�K
-Vl NAGER
April 15, 2005 Employer Code #1362
Mr. Steven Kueny
City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Dear Kueny:
Reply to Section 105
Enclosed are two copies of the Resolution of Intention to amend the agency's contract
to provide Section 21623.5 ($5,000 Retired Death Benefit) for local miscellaneous
members.
Also enclosed are the following documents:
Form CON -12, Certification of Governing Body's Action.
2. 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.
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.
If your agency adopts the Resolution of Intention on May 4, 2005, the earliest date the
final Ordinance may be adopted is May 24, 2005. 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.
California Public Employees' Retirement System ``}A (�
www.calpers.ca.gov V `0b, `31-1 0
City of Moorpark
-2- April 15, 2005
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. Another contract amendment cannot be started
until this amendment is completed or cancelled.
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:pmc
Enclosures
cc: Glendale Regional Office
000 `0"G
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 21623.5 ($5,000 Retired 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
0 O 010 1:1
AAfR0,e,-1!.
Ca1PERS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
EXHIBIT
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, August 2, 2003 and
November 13, 2004 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 13, 2004, 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.
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).
e. Section 21623.5 ($5,000 Retired 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.
0000'"3
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, day of
BOARD OF ADMINISTRATION ,��` CITY COUNCIL
PUBLIC EMPLOYEES' RETIR T SYSTEM CITY OF MOORPARK
BY %`) BY
LORI MCGARTV4 , ACTING CHIEF PRESIDING OFFICER
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date I"
Attest: .
CWrk-
AMENDMENT ER# 1362
PERS- CON -702A (Rev. 8102)
0000�0
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 21623.5 ($5,000 Retired 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
0 0() 0 3I
CAPERS
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, August 2, 2003 and
November 13, 2004 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 13, 2004, 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.
0C 11:It.")0w
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).
e. Section 21623.5 ($5,000 Retired 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.
0CDC C/v3
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 eff ctiWon the day of ,
BOARD OF ADMINIST��T�.t 4
PUBLIC EMPLOYEES'- t MENT SYSTEM
BY
LORI MWARTLAND, ACTING CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT ER# 1362
PERS- CON -702A (Rev. 8 \02)
CITY COUNCIL
CITY OF MOORPARK
BY
PRESIDING OFFICEW-
Witness Date
Attest:
Clerk
0 0(a -11
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
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
r-,
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.
esolution of Intention and a comnanAnn dQruments should not be held nenriina
readana of the Ordinance
ORDINANCE NO.
An Ordinance of the of the
(Name of Governing Body)
(Name of Public Agency) authorizing an amendment
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)
(Name of Public Agency) does ordain as follows:
Section 1.
That an amendment to the contract between the
of the (Name of Governing Body)
(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
(Name of City or County)
thereafter the same shall be in full force and effect.
Adopted and approved this day of
Attest:
Clerk
Presiding Officer
and thenceforth and
�a R1' If- r-)
PERS- CON -11A (Rev. 8/94) (Amendment) 0 ,� v v k-�- �i
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 May 4, 2005, 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 provide a $5,000 Retired
Death Benefit for local miscellaneous members in accordance with
Section 21623.5 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 S. 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
0001 n � ►-1
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 June, 2005.
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)
0gI_0` -'''8