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HomeMy WebLinkAboutAmendment-2000-085REQUEST FOR COUNCIL ACTION gducelion ,at CITY COUNCIL MEETING DATE: MAY 1, 2000 TITLE: AMEND THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE SECTION 21548, PRE -RETIREMENT OPTIONAdL_ SETTLEMENT_` 2 DEATH BENEFIT CLERK OF COUNCIL USE ONLY: APPROVEP -, As Recommended ❑ As Amended d®®® Ordinance on 1 st Readi*Dl, Ordinance on 2nd Readin Asa Neir Implementing Resolution Set Public Hearing For / CONTINUED TO A-2000-0 85 FILE NUMBER MANAGER f rv0� - ow � 2 N=uq�4ii iP I �L4111Tl91_C IiDIG 1. Adopt a Resolution of Intention to approve an amendment to the contract between the Public Employees' Retirement System and the City of Santa Ana to provide Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit) for local miscellaneous members and local safety members. 2. Adopt an Ordin�nce authorizing an amendment to the contact between the City of Santa Ana and the Public Employees' Retirement System. DISCUSSION ; The City Council, at its meeting of October 4, 1999, approved a Memorandum of Understanding between the City of Santa Ana and the Police 'Management Association (PMA)for Fiscal Years 1999-2002. In accordance with provisions of this Memorandum of Understanding the City agreed to amend its 'Q,Vntract with the California Public Employees' Retirement System (CalPERS) to provide the Pre -Retirement Optional Settlement 2 Death Benefit for its safety employees. The Pre -Retirement Optional Settlement 2 Death Benefit is awarded to the spouse of an employee who dies prior to retiring. This benefit provides the surviving spouse with a monthly allowance equal to the amount the spouse would have received if the employee had been retired on the date of death. In calculating the benefit amount, CalPERS assumes that the employee would have elected the highest survival benefit option at the time of retirement. CalPERS Optional 2 Death Benefit Fiscal Year 1999-00 May 1, 2000 Page 2 In order to provide this benefit to the PMA bargaining Unit safety employees, the City is required, under CalPERS regulations, to amend its contract for the entire employment category of local police safety members. When initially presented to the City Council, staff recommended that this benefit also be extended to include the fire safety members as the cost for applying this benefit to all safety categories posed no fiscal impact according to the CalPERS actuarial report. While waiting for the new actuarial report necessary to amend our CalPERS contract, the CalPERS Board adopted a resolution offering employers a one- time -only increase in their actuarial value of assets, if they amended their contract to provide an enhanced retirement benefit to their employees. This one -time -only offer is being made available to employers as a result of the favorable investment earnings on the entire retirement system funds. If pursued, this one -time -only offer would provide the City of Santa Ana with a significant increase in its retirement assets. Because of this offer, staff is recommending that the City Council also approve the Pre -Retirement Optional Settlement 2 Death Benefit for the local miscellaneous members. If approved, this contract amendment will extend the City's current zero percent (0%) employer contribution rate for safety and miscellaneous employees for many years beyond the current actuarial projections. FISCAL IMPACT There is no fiscal impact associated with this action. Lnrique v Execut- e (ervlces efor Personnel EJA/LEL/ck 50.A. ORDINANCE NO. NS -2426 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA ANA AND THE 'BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: That an amendment to the contract between the City of Santa Ana and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set in full. SECTION 2: The Mayor of the City Council of the City of Santa Ana is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. ADOPTED this 5th day of June 2000. ATTEST: atricia Ealy Clerk of the Council Ordinance No. NS -2426 Page 1 of 2 EXHIBIT "A" AMENDMENT TO FOLLOW RESOLUTION NO. 2000-030 A RESOLUTION OF THE CITY OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF SANTA ANA 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 and local safety 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 the 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 A" and by this reference made a part hereof. ADOPTED this / day of 2000. ATTEST: PATRICIA E. HEALY Clerk of the Council Resolution No. 2000-030 Page 1 of 2 CaIPER_S EXHIBIT California A Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California ]Public Employees' Retirement System and the City Council City of Santa Ana The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above publio.agency, hereinafter referred to as Public Agency, having entered into a contract effective July 1, 1947, and witnessed November 25, 1946, and as amended effective October 1, 1951, February 1, 1954, September 1, 1956, July 1, 1959, November 1, 1960, September 1, 1963, April 1, 1964, February 1, 1965, January 16, 1969, November 1, 1970, June 1, 1974, December 16, 1976, December 1, 1978, October 1, 1981, July 1, 1984, December 1, 1984, July 1, 1985, February 1, 1990, July 1, 1990, December.5, 1991, April 15, 1993, June 16, 1994,.January 1, 1995 and December 5, 1995 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective December 5, 1995, and hereby replaced by the following paragraphs numbered 1 through 12 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. "Ex iTONLY° C. Section 20475 (Different Level of Benefits Provided for New Employees). Section 21024 (Military Service Credit- as Public Service), Statutes of 1974, is not applicalbe to local miscellaneous members and local safety members entering membership after October 1, 1981. d. Section 20042 (One -Year Final Compensation). e. Section 20903 (Two Years Additional Service Credit). f. Sectionl1573 (Third Level of 1959 Survivor Benefits). g. Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit). 8. Public Agency, in accordance with Government Code Section 20790,. ceased to be an "employer" for purposes of Section 20834 effective on December 16, 1976. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 9. 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. 10. 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 21573 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 safety 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. CONSENT CALENDAR 25.C. AGMT 2000-073 - COPIER, MICROGRAPHIC PRINTERS, AND DEBIT CARD PRINTING SERVICES - LIBRARY - With APS Affiliates, Inc. for a five-year period - Library Services Department MISCELLANEOUS -BUDGET 29.A. INSURANCE RENEWAL Motion: Approve. City's Charter membership in the Robert F. Driver Associates Commercial Crime Program for $15,785.00 from May 5, 2000 to April 1, 2001 - Personnel Services Agency 29.B. PUBLIC ENTITY PROPERTY INSURANCE PROGRAM RENEWAL Motion: Approve. City's continued membership in the Public Entity Property Insurance Program effective May 15, 2000 to May 15, 2001 at a premium cost of $810,996.00 - Personnel Services Agency *** END OF CONSENT CALENDAR *** BUSINESS CALENDAR ORDINANCES/FIRST READING 50.A. PUBLIC EMPLOYEES' RETIREMENT SYSTEM - PRE RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT Motion: 1. Adopt resolution. RESOLUTION NO. 2000-030 - A Resolution of the City of Santa Ana authorizing an amendment to the contract between the Board of Administration of the Public Employees' Retirement System and the City Council of the City of Santa Ana 2. Place ordinance on first reading and authorize publication of title. CITY COUNCIL MINUTES 141 MAY 1, 2000 BUSINESS CALENDAR ORDINANCE NO. NS -2426 - An ordinance of the City Council of the City of Santa Ana authorizing an amendment to the contract between the City Council of the City of Santa Ana and the Board of Administration of the California Public Employees' Retirement System - Personnel Services Agency MOTION: McGuigan SECOND: Christy VOTE: RESOLUTIONS 55.A. Motion 55.13. AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno, Pulido (7) NOES: None (0) PROPERTY IMPROVEMENT REQUIREMENTS FOR MILLS ACT AGREEMENTS Adopt resolution. RESOLUTION NO. 2000-031 - A resolution of the City Council of the City of Santa Ana affirming minimum contractual standards for historic property preservation agreements - Community Development Agency MOTION: Bist SECOND: McGuigan VOTE: AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno, Pulido (7) NOES: None (0) NOTIFICATION PROCESS FOR DEMOLITION OF STRUCTURES 50 YEARS OF AGE OR OLDER Motion: Adopt resolution. RESOLUTION NO. 2000-032 - A resolution of the City Council of the City of Santa Ana directing the establishment and implementation of a demolition notification process to the Historic Resources Commission and the Santa Ana Historic Preservation Society - Planning and Building Agency MOTION: Lutz SECOND: Bist VOTE: AYES: Bist, Christy, Franklin, Lutz, McGuigan, Moreno, Pulido (7) NOES: None (0) CITY COUNCIL MINUTES 142 MAY 1, 2000 A-2000-0 85 Ca1PERS California Public Employees' Retirement System Between the Board of Administration California Puubllic Employees' Retirement System and the City Council City of Santa Ana 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 July 1, 1947, and witnessed November 25, 1946, and as amended effective October 1, 1951, February 1, 1954, September 1, 1956, July 1, 1959, November 1, 1960, September 1, 1963, April 1, 1964, February 1, 1965, January 16, 1969, November 1, 1970, June 1, 1974, December 16, 1976, December 1, 1978, October 1, 1981,.July 1, 1984, December 1, 1984, July 1, 1985, February 1, 1990, July 1, 1990, December 5, 1991, April 15, 1993, June 16, 1994, January 1, 1995 and December 5, 1995 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective December 5, 1995, and hereby replaced by the following paragraphs numbered 1 through 12 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 and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1947 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. 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). 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: NO ADDITIONAL EXCLUSIONS 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. 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624 and 21626 (Post -Retirement Survivor Allowance). b. Section 21024 (Military Service Credit as Public Service), Statutes of 1974 for those local miscellaneous members and local safety members entering membership prior to October 1, 1981. C. Section 20475 (Different Level of Benefits Provided for New Employees). Section 21024 (Military Service Credit as Public Service), Statutes of 1974, is not applicalbe to local miscellaneous members and local safety members entering membership after October 1, 1981. d. Section 20042 (One -Year Final Compensation). e. Section 20903 (Two Years Additional Service Credit). f. Section 21573 (Third Level of 1959 Survivor Benefits). g. Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit). 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on December 16, 1976. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 9. 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. 10. 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 21573 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 safety 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. 11. 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. 12. 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 S�l day of _.Q , 2000 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SANTA ANA BY BY KEV,NIETO W. MAR ION, CHIEF d PRESI OFFI ER ACTUAIJAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM 6 -�J -- Zoo J Witness Date Attest: e �L�' Cler. WE71' a'7 Mornay AMENDMENT PERS-CON-702A (Rev. M96) CALIFORNIA PUBLIC E ... r1LOYEES' RETIREMENT SYSTEIvi Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the City Council of the (governing body) City of Santa Ana (public agency) adopted on June 5 2000 , by an affirmative vote of a majority (date) of the members of said Governing Body, ordinance (Ordinance or Resolution) No. Ns -2426 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 (Ordinance or Resolution) in the form furnished by said Board of Administration being attached hereto. 7 1. ,t��q Cler0a=Jo4y Patricia e. HealyA Clerk of the Council Title Date PERS-CON-5 (Rev. 1/96)