HomeMy WebLinkAboutStaff Report 06 05/06/2002i
CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title: Amendment to the Contract between the Board of
Meeting Date: May 6, 2002
Administration, California Public Employees' Retirement System
and the City of Petaluma
Department:
Director:
Contact Person:
Phone Number:
Human Resources
Dennis Morris
Dennis Morris
778 -4343
Cost of Proposal: No immediate costs. Actual costs will emerge
Account Number: N/A
in future valuations.
Amount Budgeted:
Name of Fund:
Attachments to Agenda Packet Item:
1. Ordinance
2. Resolution of Intention and
Amendment to Contract
Summary Statement: The proposed change in the Ca1PERS contract to the provide Section 21023.5
Public Service Credit for Peace Corps or AmeriCorps: VISTA Service for local miscellaneous members
will allow a Ca1PERS member to elect to purchase up to three years of service credit for any volunteer
service in the Peace Corps or Americorp: Volunteers In Service To America.
Council Priority: THIS AGENDA ITEM IS CONSIDERED TO BE PART OF, OR NECESSARY TO, ONE OR
MORE OF THE 1999 -2000 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000.
Priority(s): Not Applicable
Recommended City Council Action/Suggested Motion: Adopt the Resolution of Intention and
Introduce An Ordinance to Approve the Amendment to the Contract Between the Board of
Administration, California Public Employee's Retirement System and the City of Petaluma to provide
Section 21023.5 Public Service Credit for Peace Corps or AmeriCorps: VISTA Service for local
miscellaneous members.
Reviewed by Finance Director:
Reviewed by City Attorney:
Date:
Approved by City Manager:
Date:
Date:
halt",
6
Uctay's Date:
Revision # and Date Revised:
File Code:
#
CITY OF PETALUMA� CALIFORNIA
May 6, 2002
AGENDA REPORT
FOR
TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF
ADMINISTRATIONS CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL, CITY OF PETALUMA
EXECUTIVE SUMMARY: The proposed amendment to the provide Section 21023.5 Public
Service Credit for Peace Corps or AmeriCorps: VISTA Service for local miscellaneous
members will allow a CalPERS member to elect to purchase up to three years of service
credit for any volunteer service in the Peace Corps or Americorp: Volunteers In Service
To America.
2. BACKGROUND: The City of Petaluma would like to offer flexibility in the benefits
offered in order to attract and retain employees. This benefit will allow current and future
employees to convert prior experience in the PeaceCorps or AmericCorps by purchasing
up to three years of service credit, at their own expense, for any volunteer service in the
VISTA programs.
3. ALTERNATIVES: Do not adopt the resolution or introduce the ordinance.
4. FINANCIAL IMPACTS: No immediate cost to Employer. Actual costs will emerge in
future evaluations. The member will incur costs by purchasing up to three years of
service credit for any volunteer service in the Peace Corps or AmeriCorps: Volunteers in
Service to America.
5. CONCLUSION: Providing this Amendment to the CalPERS Contract will enable
CalPERS members to obtain additional service credit prior to retirement. A CalPERS
member may purchase up to three years of service credit for any volunteer service in the
Peace Corps or AmeriCorps: Volunteers in Service to America.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
The City of Petaluma will attract and retain employees with this enhanced benefit
retirement package; reduce future costs (fewer recruitments) and enable employees to
purchase service credit for any volunteer service in the Peace Corps or AmeriCorps:
Volunteers in Service to America.
7. RECOMMENDATION: Adopt the Resolution of Intent and Introduce the First Reading of
Ordinance to Amend the Contract Between the Board of Administration, California
Public Employee's Retirement System and the City of Petaluma to provide Section
21023.5 Public Service Credit for Peace Corps or AmeriCorps: VISTA Service for local
miscellaneous members.
ORDINANCE NO. N.C.S.
Introduced
Seconded
By Vice Mayor
By Councilmember
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY OF PETALUMA AND BOARD
OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
Section 1. That an amendment to the contract between the City Petaluma 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 out in full.
Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed
to execute said amendment for and on behalf of said Agency.
Section 3. This Ordinance shall take effect thirty days after the date of its adoption and
prior to the expiration of thirty days from passage shall be published at least twice in the
Petaluma Argus- Courier, a newspaper of general circulation, published and circulated in the City
of Petaluma and thenceforth and thereafter the same shall be in full force and effect.
INTRODUCED and ordered Published/Posted this 15th day of April, 2002.
ADOPTED this 6th day of May 2002, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
Paulette Lyon, Interim City Clerk
Ordinance NCS
Mayor
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 PETALUMA
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 21023.5 (Public Service Credit for
Peace Corps or AmeriCorps: VISTA Service) 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.
In
Date adopted and approved
(Amendment)
CON -302 (Rev. 4196)
Presiding Officer
May_or,_ City of Petaluma
Title
CaIPERS
California
Public Employees' Retirement System
EXHIBIT
Betwveen. the
Board of Administration
Cali fornia ]Public ]Employees' Retirement System
and the
City Council
City ®f Petaluma
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
January 1, 1950, and witnessed October 18, 1949, and as amended effective
November 1, 1959, March 1, 1965, June 1, 1965, April 1, 1969, January 1, 1974,
November 1, 1980, November 1, 1981, July 1, 1982, January 1, 1987, December 28,
1987 January 1, 1992, January 4, 1996, June 30, 1996, May 4, 1998, April 5, 1999 and
June 30, 2001 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 June 30, 2001, 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.
1
2. Public Agency shall participate in the Public Employees' Retirement
System from and after January 1, 1950 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 21362.2 of said Retirement Law
(3% at age 50 Full).
7. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
b. Section 20042 (One -Year Final Compensation).
C. Section 20965 (Credit for Unused Sick Leave).
d. Section 21327 (One -Time Increase For Local Miscellaneous
Members Who Retired or Died Prior to January 1, 1975).
Legislation repealed said Section effective January 1, 2002.
PLEASE DO NOT SIGN "EXHIBIT ONLY)
e. Sections 21624, 21626 and 21628 (Post- Retirement Survivor
Allowance) for local fire members only.
f. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
h. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
Section 21023.5 (Public Service Credit for Peace Corps or
AmeriCorps: VISTA Service) for local miscellaneous members only.
8. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 1, 1980. 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.
b. 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 safety members.
C. 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.
d. 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
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREIAENT SYSTEM
BY
KENNETH W. MARZION, HiEF
ACTUARIAL & EMPLOY2`SERVICES DIVISION
PUBLIC EMPLOYEES,QilREMENT SYSTEM
LV �
AMENDMENT
PERS- CON -702A (Rev. 8 \96)
day of
CITY COUNCIL
CITY OF PETALUMA
BY
PRESIDING OFFICER;
Witness Date
Attest:
Clerk°
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 GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
California Public Employee's Retirement System - ofthe
(governing body)
City Council!, City of Petaluma
(public agency)
on April 15, 2002
(date)
Clerk/Secretary
Title
PERS- CON -12 (rev. 1/96)