HomeMy WebLinkAboutStaff Report 13 11/18/2002CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title: Resolution Amending to the Contract between the
Meeting Date:
Board of Administration, California Public Employees' Retirement
November 18, 2002
System and the City of Petaluma to Provide Section 20434 for Local
Fire Members.
Department:
Director:
Contact Person:
Phone Number:
Human Resources
Dennis Morris` &
Dennis Morris
778 -4343
Cost of Proposal: No immediate costs. Actual costs have been
Account Number:
covered by previous contributions for affected Local Fire Members.
Actual costs will emerge in future valuations.
Name of Fund:
Amount Budtzeted:
Attachments to Agenda Packet Item:
1. Ordinance
2. Resolution of Intention and
Amendment to Contract
Summary Statement:
The proposed change in the CalPERS contract is to provide Section 20434 (Any Officers or Employees of
a Fire Department Employed to Perform Duties of Fire Fighting, Fire Prevention, Fire Training, Hazardous
Materials, Emergency Medical Services, or Fire or Arson Investigation Services as "Local Fire Fighters ")
for the Fire Inspector positions, and to reclassify the Fire Inspector positions from miscellaneous to safety
status for CalPERS contract purposes. Local safety members of the City of Petaluma are covered by the 3%
@ 50 formula and contribute 9% of reportable earnings.
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 Employees' Retirement System and the City of
Petaluma to provide Section 20424 (Any Officers or Employees of a Fire Department Employed to
Perform Duties of Fire Fighting, Fire Prevention, Fire Training, Hazardous Materials, Emergency Medical
Services, or Fire or Arson Investigation Services as "Local Fire Fighters ") and reclassify their position
from local miscellaneous members to local safety status for CalPERS contract purposes.
Reviewed by Finance Director:
Review �.;C' Attorney:
'
Approved City Manager:
Date:
g¢ D te:
Today's Date:
Revision # and Date Revised:
File Code:
i
CITY OF PETALUMA, CALIFORNIA
November 18, 2002
AGENDA REPORT
FOR
AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION, CALIFORNIA
PUBLIC EMPLOYEES, RETIREMENT SYSTEM AND THE CITY OF PETALUMA TO PROVIDE
SECTION 20434 FOR LOCAL FIRE MEMBERS.
ExECUTIVE SUMMARY: The proposed amendment to provide Section 20434 (Any
Officers or Employees of a Fire Department Employed to Perform Duties of Fire
Fighting, Fire Prevention, Fire Training, Hazardous Materials, Emergency Medical
Services, or Fire or Arson Investigation Services as "Local Fire Fighters ") will allow the
current Fire Inspector position to be classified as local safety members rather than local
miscellaneous members of the Public Employees' Retirement System. As local safety
members, Fire Inspectors will be entitled to the provisions set forth in the attached
Amendment to Contract (Exhibit).
2. BACKGROUND: In 1989, CalPERS stipulated that public agencies must actively amend
their contract to establish the Fire Inspector position as local safety or miscellaneous,
otherwise the Fire Inspector position would be classified as miscellaneous by CalPERS.
The employees hired before 1989 who held the Fire Inspector position were
"grandfathered in" as local safety members by this CalPERS provision in 1989. Current
employees hired in the Fire Inspector position are considered by CalPERS as
miscellaneous members until this amendment to the CalPERS contract is changed to
classify the Fire Inspector position as local safety member.
The City's Fire Inspector job description and job duties have been reviewed by a
CalPERS representative and have been evaluated as meeting the criteria of a local safety
position.
3. ALTERNATIVES:
Do not 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 20424 (Any
Officers or Employees of a Fire Department Employed to Perform Duties of Fire
Fighting, Fire Prevention, Fire Training, Hazardous Materials, Emergency Medical
Services, or Fire or Arson Investigation Services as "Local Fire Fighters ") and do not
reclassify their position from local miscellaneous members to local safety status.
4. FINANCIAL IMPACTS: Contributions for employer and Fire Inspector employees have
been made at the local safety amount to the CalPERS retirement fund since their date of
hire. Therefore there will be no immediate cost to establish them as local safety members
with this amendment.
5. CONCLUSION: NIA
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION: N/A
RECOMMENDATION: Adopt the Resolution Amending the Contract between the Board of
Administration, California Public Employees' Retirement System and the City of
Petaluma to Provide Section 20434 for Local Fire Members.
g; /forms /2000 Agenda Bill revised 042100
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 20434 (Any Officers or Employees of a
Fire Department Employed to Perform Duties of Fire Fighting,
Fire Prevention, Fire Training, Hazardous Materials,
Emergency Medical Services, or Fire or Arson Investigation
Services as "Local Fire Fighters ") for local fire 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.
Presiding Officer
Mayor, City of Petaluma
Title
Date adopted and approved
(Amendment)
CON -302 (Rev. 4/96)
'4Akk4_,_
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
Between the
Board of Administration
California Public IEmployccs9 IE e irement 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:
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 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.
Reso. No. 2002 -184 N.C.S. - Exhibit Page 1
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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 21326 (One -Time 1% to 7% Increase For Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1974). Legislation
repealed said Section effective January 1, 2002.
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.
Reso. No. 2002 -184 N.C.S. —Exhibit Page 2
PLEASE DO NOT SIGN "EXHIBIT ONLY„
h. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
Section 20434 ( "Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform fire fighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
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.
Reso. No. 2002 -184 N.C.S. — Exhibit Page 3
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 emploe' may be made by direct payments between the employee and
the Board.
B. This amendmehall be effective on the day of ,
BOARD OF ADMIN RATION
PUBLIC EMPLOYEE ' RETIREMENT SYSTEM
C�
BY
KENNETH W..PgRZION, CHIEF
ACTUARIAL EMPLOYER SERVICES DIVISION
PUBLIC EM PM YEES' RETIREMENT SYSTEM
47
AMENDMENT ER# 293
PERS- CON -702A (Rev. 8102)
CITY COUNCIL -°'
CITY OF PET44MA
BY
PRESIDIkSZ- FFICER
Witn�'Date
Att
45�ferk
Reso. No. 2002 -184 N.C.S. — Exhibit
Page 4
ORDINANCE NO. N.C.S.
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 once 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 , 2002.
ADOPTED this day of , 2002, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
Gayle Peterson, City Cleric
Ordinance NCS
Mayor