Ordinance No. 11043
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ORDINANCE NO. 1104
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF
VERNON AND THE BOARD OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public
Employees' Retirement System (PERS) by the execution of a contract, and
sets forth the procedure by which public agencies may elect to subject
themselves and their employees to amendments to said Law; and
WHEREAS, the PERS Board of Administration and the City of
Vernon entered into a contract effective November 1, 1948, and witnessed
October 23, 1948 (the "Contract"), which provides for participation of
the City of Vernon and its employees in the PERS, and have made
amendments to the Contract effective April 1, 1956, October 1, 1960,
July 1, 1966, October 1, 1972, May 1, 1974, November 1, 1975,
December 1, 1976, March 1, 1979, July 6, 1986, October 17, 1986,
September 7, 1990, January 19, 1991, September 21, 1991, December 24,
1993, October 30, 1994, July 18, 1997 and June 30, 2002; and
WHEREAS, on December 1, 2004, the City Council adopted
Resolution No. 8605 declaring its intention to approve an amendment to
the Contract to provide for a New Safety Category (Prosecutors, Public
Defenders, and Public Defender Investigators as "Local Safety
Members"); and
WHEREAS, Government Code Section 20471 provides that
approval of the Contract shall be by ordinance adopted not less than
20 days after adoption of the resolution of, intention; and
1 WHEREAS, the City Council of the City of Vernon wishes to
2 amend the Contract to provide benefits under Government Code Sections
3 21363.1 (3o at 55 Full formula), 20042 (One -Year Final Compensation);
4 21024 (Military Service Credit as Public Service); 21624, 21626 and
5 21628 (Post -Retirement Survivor Allowance) and 21573 (Third Level of
6 1959 Survivor Benefits) for New Safety Category local safety members.
7 THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
8 SECTION 1: An amendment to the Contract between the City
9 Council of the City of Vernon and the Board of Administration,
10 California Public Employees' Retirement System is hereby approved and
11 authorized, a copy of said amendment being attached hereto, marked
12 Exhibit, and by such reference made a part hereof as though herein set
13 out in full.
14 SECTION 2: The Mayor of the City Council is hereby
15 authorized, empowered, and directed to execute said amendment for, and
16 on behalf of, the City of Vernon.
17 SECTION 3: There being no newspaper printed, published or
18 circulated in the City of Vernon, the City Clerk is hereby directed to
19 certify to the passage of this ordinance and shall post the same, or
20 cause the same to be posted, within fifteen (15) days after its passage
21 in accordance with Section 36933 of the Government Code, in three (3) of
22 the most public places in the City of Vernon, to wit: the northwest
23 corner of 38th Street and Santa Fe Avenue, the northeast corner of
24 Leonis Boulevard and Pacific Boulevard, and on the bulletin board in the
25 lobby of the City Hall of said City, located at 4305 Santa Fe Avenue,
26 all in the City of _Vernon, County of Los Angeles, State of California.
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SECTION 4: This Ordinance shall go into effect and be in
full force and operation from and after thirty (30) days after its
final passage and adoption.
APPROVED AND ADOPTED this 5th day of January, 2005.
8
EONIS C. MA URG, Ayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Ordinance, being Ordinance No. 1104,
was duly and regularly introduced at a regular meeting of the City
Council of the City of Vernon, held on Wednesday, December 15, 2004,
and thereafter finally adopted at a regular meeting of the City
Council held on Wednesday, January 5, 2005, and thereafter was duly
signed by the Mayor Pro Tem of the City of Vernon, by the following
vote:
I (SEAL)
AYES: Councilmen• Malburg, Ybarra, Gonzales
Davis, McCormick
NOES:
Councilmen:
None
ABSTAINED:
Councilmen:
None
ABSENT:
Councilmen:
None
BRUCE V. MALKENHORST, City Clerk
- 4 -
Ca1PFRS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Vernon
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
November 1, 1948, and witnessed October 23, 1948, and as amended effective April 1,
1956, October 1, 1960, July 1, 1966, October 1, 1972, May 1, 1974, November 1, 1975,
December 1, 1976, March 1, 1979, July 6, 1986, October 17, 1986, September 7, 1990,
January 19, 1991, September 21, 1991, December 24, 1993, October 30, 1994, July 18,
1997 and June 30, 2002 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 30, 2002, and hereby replaced by the following paragraphs
numbered 1 through 14 inclusive:
4. 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 local prosecutors and
age 50 for local police and local fire members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after November 1, 1948 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. Local Prosecutors (included as local safety members);
d. 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 fire member shall be
determined in accordance with Section 21362 of said Retirement Law (2%
at age 50 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local prosecutor shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
._t_/i�rr Ul..% 1�1U i` ii��,.-!� d �ili i� �i I i•: .
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
police members only.
b. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance).
C. Section 21024 (Military Service Credit as Public Service), Statutes
of 1974.
d. Section 20042 (One -Year Final Compensation).
e. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members; local fire members and local prosecutors
only.
f. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members and local fire members
only.
g. Section 20423.6 ("Local Safety Member" shall include local
prosecutors, local public defenders, and local public defender
investigators as described in Government Code Section 20423.6).
10. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 1, 1975. 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.
11. 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.
12. 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; local fire members and local
prosecutors.
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.
13. 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.
14. 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 ADMINISTRATI.OINr CITY COUNCIL
PUBLIC EMPLOYEES,',f 5T'OEMENT SYSTEM CITY OF VERNON
BY BY
KENNETH W. MARZION, CHIEF PRESIDING OFFIGEW.1-
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT ER# 0209
PERS-CON-702A (Rev. 8\02)
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
Chief Executive Officer of
Light & Power
ERIC T. FRESCH
City Attorney
February 2, 2005
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
Public Agency Contract Services
CalPers Actuarial & Employer Services Division
P. O. Box 942709
Sacramento, CA 94229-2709
Attn: Danielle Brooks, Employer Representative
RE: Contract Amendment
Dear Ms. Brooks:
JOHN KARNS
Karns & Karabian
General Counsel
KEVIN WILSON
Director of Community Services & Water
STEVEN E. PARKER
Fire Chief
SOL BENUDIZ
Police Chief
LEWIS J. POZZEBON
Director of Environmental Health
RORYBURNETT
Gursey, Schneider & Co. LLP
City Accountant
FILE
Transmitted herewith are the following documents to complete the proposed amendment:
1. Two original executed sets of Amendment to Contract.
2. Certified copy of Ordinance 1104
3. Original Certification of Final Action of Governing Body (CON-5).
4. Employee Data (CON-10/20).
If you have any questions regarding this matter, please call Sharon Johnson at (323) 583-
8811 ext. 228.
Very truly yours,
Eric T. Fresc
City Attorney
enclosures
"Exclusively Industrial"
Y
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709 (!j(
Sacramento CA 94229 2709
(888) CalPERS (225-7377)
r�t
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
hereby certify that the City Council
(governing body)
City of Vernon
of the
(public agency)
adopted on January 5 2005 , by an affirmative vote of a majority
(date)
of the members of said Governing Body, Ordinance
(Ordinance or Resolution)
No. 1104 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 ministration being attached hereto.
Deputy City Clerk
Title
Date 1/31/05
PERS-CON-5 (Rev. 1/96)
A#No�,
Ca1PERS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Vernon
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
November 1, 1948, and witnessed October 23, 1948, and as amended effective April 1,
1956, October 1, 1960, July 1, 1966, October 1, 1972, May 1, 1974, November 1, 1975,
December 1, 1976, March 1, 1979, July 6, 1986, October 17, 1986, September 7, 1990,
January 19, 1991, September 21, 1991, December 24, 1993, October 30, 1994, July 18,
1997 and June 30, 2002 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective June 30, 2002, and hereby replaced by the following paragraphs
numbered 1 through 14 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 local prosecutors and
age 50 for local police and local fire members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after November 1, 1948 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. Local Prosecutors (included as local safety members);
d. 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 fire member shall be
determined in accordance with Section 21,362 of said Retirement Law (2%
at age 50 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local prosecutor shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
r
i
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
police members only.
b. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance).
C. Section 21024 (Military Service Credit as Public Service), Statutes
of 1974.
d. Section 20042 (One -Year Final Compensation).
e. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members; local fire members and local prosecutors
only.
f. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members and local fire members
only.
g. Section 20423.6 ("Local Safety Member" shall include local
prosecutors, local public defenders, and local public defender
investigators as described in Government Code Section 20423.6).
10. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
November 1, 1975. 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.
11. 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.
12. 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; local fire members and local
prosecutors.
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.
13. 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.
14. 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 b"' day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON
BY BY
KENNETH W. MARZION, CHIEF PRES G OFFICER
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT ER# 0209
PERS-CON-702A (Rev. 8\02)
1 RESOLUTION NO. 8605
2
3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON DECLARING ITS INTENTION TO APPROVE AN
4 AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
5 RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY
6 OF VERNON
7
8 WHEREAS, the Public Employees' Retirement Law permits the
9 participation of public agencies and their employees in the Public
10 Employees' Retirement System by the execution of a contract, and sets
11 forth the procedure by which public agencies may elect to subject
12 themselves and their employees to amendments to said Law; and
13 WHEREAS, one of the steps in the procedures to amend this
14 contract is the adoption by the governing body of the public agency of
15 a resolution giving notice of its intention to approve an amendment to
16 said contract, which resolution shall contain a summary of the change
17 proposed in said contract and
18 WHEREAS, the following is a statement of the proposed change:
19 To provide for a New Safety Category pursuant to
20 Section 20423.6 (Prosecutors, Public Defenders, and
21 Public Defender Investigators as "Local Safety
22 Members") with Section 21363.1 (30 @ 55 Full
23 formula); Section 20042 (One -Year Final
24 Compensation); Section 21024 (Military Service
25 Credit as Public Service); Sections 21624, 21626
26 and 21628 (Post -Retirement Survivor Allowance) and
27 Section 21573 (Third Level of 1959 Survivor
28 Benefits) for local safety members.
1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
2 CITY OF VERNON AS FOLLOWS:
3 SECTION 1: The City Council of the City of Vernon does
4 hereby give notice of its intention to approve an amendment to the
5 contract between the City Council of the City of Vernon and the Board
6 of Administration of the Public Employees' Retirement System, a copy
7 of said amendment being attached hereto, as an "Exhibit" and by this
8 reference made a part hereof.
9 SECTION 2: The City Council of the City of Vernon hereby
10 directs the City Clerk, or his designee, to send a certified copy of
11 this resolution together with a completed "Certification of Governing
12 Body's Action," "Certification of Compliance with Government Code
13 Section 7507" and "Certification of Employee Election" to:
14 Danielle Brooks
Employer Representative
15 Public Agency Contract Services
16 CalPers Actuarial & Employer Services Division
P.O. Box 942709
17 Sacramento, CA 94229-2709
18
19 SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
20
thereafter the same shall be in full force and effect.
21
APPROVED AND ADOPTED this lst day of December, 2004.
22
23
24 LEONIS C. MAL URG, M yor
25
26 ATTEST:
27
28 BRUCE V. MALKENHORST,, City Clerk
2 -
1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
3
4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 8605, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Wednesday, December 1,
8 2004, and: thereafter was duly signed by the Mayor of the City of
9 Vernon.
10
12 BRUCE V. MALKENHORST, City Clerk
13 (SEAL)
14
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3 -
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF VERNON )
I, Rebecca Moore, Utility Clerk with the City of Vernon, do
hereby certify that on the 17th day of January 2005, I did post
one (1) copy of:
ORDINANCE NO. 1104 - AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY VERNON APPROVING AND
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF VERNON AND THE;
BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
At the following place, to wit: on the bulletin board in the
Lobby of the City Hall of the City of Vernon located at 43 5
Santa Fe Avenue, in said City, there being no newspaper of
general circulation printed and published in the City of V rnon.
Date: aS� ))L
Rebecca Moore
Utility Clerk
State of California )
ss
County of Los Angeles)
On %// 7 �6 before me, Manuela Giron, Notary Public
personally appeared Rebecca Moore personally known to me E
to be t
personae) whose name(.w) is/aLe subscribed to the instrumen
acknowledged to me that ate/she/t-4-&y executed the same in
4"s/her/t4te+r authorized capacity, and that by -h+s/her/t4e
signature4s-) on the instrument the person(.@F), or the entit
behalf of which the person(-) acted, executed the instrume
MANUF-LA GIRON
Commission # 1328374
Notary Public - California
Los Angeles County
7NESS my hand and official
A-1-1-1
and
upon
t.
seal
:, -
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF VERNON )
I, William Wilson, Code Enforcement Inspector with the City of
Vernon, do hereby certify that I did, on the 17th day of January
2005, post two (2) copies of:
ORDINANCE NO. 1104 - AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY VERNON APPROVING AND
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF VERNON AND THE
BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
One in each of the following places, to wit: at the northwest -
corner of 38th Street and Santa Fe Avenue; the northeast corner
of Leonis Blvd. and Pacific Blvd., all in said City, there being
no newspaper of general circulation printed and published in the
City of Vernon.
Date:.
William Wilson
Code Enforcement Inspector
State of California )
ss
County of Los Angeles)
On / //7/ 0�5- before me, Manuela Giron, Notary Public,
personally appeared William Wilson personally known to me
krre -- ) to be the
person( whose name(a-) is/az,a subscribed to the instrument and
acknowledged to me that he/-ey executed the same in
his/heF�thee r authorized capacity, and that by his,,-.wx !t hP;�
signature(• on the instrument the person{s�, or the entity upon
behalf of which the person(.ej acted, executed the instrument.
fWANUELA GIRON
Commission * 1328374
z
z Notary Public - California
Los Angeles County
My Comm. Expires Nov 4, 2005
WITNESS my hand and official seal
0
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
Chief Executive Officer of
Light & Power
FAX: (323) 826-1438
City Council
City of Vernon
Honorable Members:
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
December 9, 2004
ERIC T. FRESCH
City Attorney
FAX: (323) 826-1439
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
SOL BENUDIZ
Police Chief
FAX: (323) 826-1481
LEWIS J. POZZEBON
Director of Environmental Health
FAX: (323) 588-4320
Transmitted herewith is the Actuarial Valuation Report prepared for
the City of Vernon dated October 15, 2004, from CalPERS and an
Amendment to the Contract. A copy of this Report is available for
review by the general public.
Future Employer Contribution required pursuant to this contract
amendment will be an additional 0.481% change to the City's normal
cost component of its Total Employer Rate.
It is hereby recommended that the Actuarial Valuation Report be
accepted and that approval be granted to proceed with a Notice of
Intent which will enable us to proceed with required necessary action.
Very truly yours,
Bruce V. Mal✓kenhorst
City Administrator/City Clerk
BVM/gm
CITY ATTORNEY'S OFFICE
INTER -DEPARTMENT MEMORANDUM
DATE: December 7, 2004
TO: Bruce V. Malkenhorst, City Administrator/ ity Clerk
FROM: Eric T. Fresch, City Attorney
RE: CalPERS Contract Amendment for New S fety Category
Dear Bruce:
I recommend that the attached Contract Amendment Cost Analysis -Valuation
Basis: June 30, 2002 prepared for the City of Vernon by CalPERS dated
October 15, 2004, be transmitted to the City Council for approval on
December 15, 2004, and a copy of the Cost Analysis made available for
review by the general public.
In accordance with Government Code Section 7507, future annual costs of
the proposed contract amendment need to be made public at a public meeting
at least two weeks prior to the adoption of the ordinance on January 5,
2005.
Future Employer Contribution required pursuant to this contract
amendment will be an additional 0.481% change to the City's normal
cost component of its Total Employer Rate.
I look forward to discussing this matter with you at your earliest
convenience.
EF: jl
Enclosure
CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: DUNE 30, 2002
SAFETY PLAN FOR CITY OF VERNON
EMPLOYER NUMBER 209
Benefit Description: Section 20423.6, Public Prosecutors, Public Defenders and Public Defender Investigators
as "Local Safety Members" with Section 21363.1, 3% @ 55 Full Formula; Section 20042, One-year Final
Compensation; Section 21024, Military Service Credit as Public Service; and Sections 21624, 21626 and
21628, Post Retirement Survivor Allowance
Present Value of Projected Benefits
The table below shows the change in the total present value of benefits for the proposed plan amendment.
The present value of benefits represents the total dollars needed today to fund all future benefits for
current members of the plan, i.e. without regard to future employees. The difference between this amount
and current plan assets must be paid by future employee and employer contributions. As such, the change
in the present value of benefits due to the plan amendment represents the "cost" of the plan amendment.
However, for plans with excess assets some or all of this "cost" may already be covered by current excess
assets.
As of June 30, 2002
Current Plan
Post -Amendment
Total Assets at Market Value (MVA)
$ 95,630,534
$ 95,630,534
Actuarial Value of Assets (AVA)
105,193,587
105,193,587
AVA / MVA
110.0%
110.0%
Present Value of Projected Benefits (PVB)
$ 133,344,960
$ 134,946,497
Actuarial Value of Assets (AVA)
105.193.587
105,193,587
Present Value of Future Employer and Employee
Contributions (PVB — AVA)
$ 28,151,373
$ 29,752910
Change to PVB
1,601,537
Accrued Liability
It is not required, nor necessarily desirable, to have accumulated assets sufficient to cover the total present
value of benefits 'until every member has left employment. Instead, the actuarial funding process
calculates a regular contribution schedule of employee contributions and employer contributions (called
normal costs) which are designed to accumulate with interest to equal the total present value of benefits
by the time every member has left employment. As of each June 30, the actuary calculates the
"desirable" level of plan assets as of that point in time by subtracting the present value of scheduled future
employee contributions and future employer normal costs from the total present value of benefits. The
resulting "desirable" level of assets is called the accrued liability.
A plan with assets exactly equal to the plan's accrued liability is simply "on schedule" in funding that
plan, and only future employee contributions and future employer normal costs are needed. A plan with
assets below the accrued liability is "behind schedule", or is said to have an unfunded liability, and must
temporarily increase contributions to get back on schedule. A plan with assets in excess of the plan's
accrued liability is "ahead of schedule", or is said to have excess assets, and can temporarily reduce future
contributions. A plan with assets(AVA) in excess of the total present value of benefits is called super
funded, and neither future employer nor employee contributions are required. Of course, events such as
October 15, 2004 Page 1 of 4
10:52 AM
CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: JUNE 30, 2002
SAFETY PLAN FOR CITY OF VERNON
EMPLOYER NUMBER 209
Benefit Description: Section 20423.6, Public Prosecutors, Public Defenders and Public Defender Investigators
as "Local Safety Members" with Section 21363.1 3% @ 55 Full Formula; Section 20042, One-year Final
Compensation; Section 21024, Military Service Credit as Public Service; and Sections 21624, 21626 and
21628, Post Retirement Survivor Allowance
plan amendments and investment or demographic gains or losses can change a plan's condition from year
to year. For example, a plan amendment could cause a plan to move all the way from being super -funded
to being in an unfunded position.
The changes in your plan's accrued liability, unfunded accrued liability, and the funded ratio as of June
30, 2002 due to the plan amendment are shown in the table below.
As of June 30, 2002
Current Plan
Post -Amendment
Entry Age Normal Accrued Liability (AL)
$ 107,576,977
$ 107,576,512
Actuarial Value of Assets (AVA)
105,193,587
105J93,587
Unfunded Liability/(Excess Assets) (UAL = AL — AVA)
$ 2,383,390
$ 2,382,925
Funded Ratio (AVA / AL)
97.8%
97.8%
Change to AL
(465)
Total Employer Contribution Rate
While the tables above give the changes in the accrued liability and funded status of the plan due to the
amendment, there remains the question of what will happen to the employer contribution rate because of
the change in plan provisions.
CalPERS policy is to implement rate changes due to plan amendments immediately on the effective date
of the change in plan benefits. This change is displayed as the "Change to Total Employer Rate" on the
following page. If the contract amendment effective date is on or before June 30, 2004, the change in the
employer contribution rate should be added to the employer's current rate. In general, the policy also
provides that the change in unfunded liability due to the plan amendment will be separately amortized
over a period of 20 years from the effective date of the amendment and all other components of the plan's
unfunded liability/excess assets will continue to be amortized separately.
However, your actuary may choose to apply different rules to plans with a current employer contribution
rate of zero. The pre -amendment excess assets in these plans were sufficient to cover the employer's
normal cost for one or more years into the future. A plan amendment will use up some or all of the pre -
amendment excess assets. In order to maintain our goal of providing rates that are relatively stable, while
taking into account known or expected future events, your actuary may decide to spread any remaining
excess assets over a single number of years. This is known as a "fresh start" and will generally be for a
period not less than 15 years, and in no case less than 5 years. You may call your actuary to discuss
further alternative financing options. If the amendment uses up all excess assets and creates an unfunded
liability (i.e. from being ahead of schedule to behind schedule), the total post -amendment unfunded
liability may be amortized over 20 years.
In no case may the annual contribution with regard to a positive unfunded liability be less than the amount
which would be required to amortize that unfunded liability, as a level percent of pay, over 30 years.
October 15, 2004
1052 AM
Page 2 of 4
CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: JUNE 30, 2002
SAFETY PLAN FOR CITY OF VERNON
EMPLOYER NUMBER 209
Benefit Description: Section 20423.6, Public Prosecutors, Public Defenders and Public Defender Investigators
as "Local Safety Members" with Section 21363.1, 3% @ 55 Full Formula; Section 20042, One-year Final
Compensation; Section 21024, Military Service Credit as Public Service; and Sections 21624, 21626 and
21628, Post Retirement Survivor Allowance
The table below shows the change in your plan's employer contribution rate due to the plan amendment
for fiscal 2004-2005.
As of June 30, 2002
Current Plan
Post -Amendment
2004-2005 Employer Rate
Payment for Normal Cost
14.845%
15.326%
Payment on Amortization Bases
8.858%
8.364%
Payment for 1959 Survivor Benefit Program
1.497%
1.497%
Total Employer Rate
25.200%
25.187%
Change to Normal Cost
0.481%
Change to Total Employer Rate
-0.013%
Current Amortization Base
Multiple Base
Amendment Amortization Base'
- Fresh Start 2
N/A
- Multiple Base 3
20-year
2004-2005 Employee Rate
Total Employee Rate
9.000%
9.000%
Change to Total Employee Rate
0.0W%
2005-2006
Estimated Employer Rate 4.1 (recognizing 4%
27.9%
27.6%
investment return for 2002-2003)
Projection Amortization Base
Multiple Base
Multiple Base
1 - Details of the current amortization base are shown on page 10 of June 30, 2002 annual valuation report. If you have adopted any other
subsequent amendments, the current amortization base is the schedule after these adopted amendments.
2 - If a fixed number of years is shown, it means that the current unfunded actuarial liability is projected and amortized over this fixed number of
years. This amortization replaces the amortization schedule shown in your June 30, 2002 annual valuation and any other subsequent
amendments you have adopted.
3 - If 20-year is shown, it means that the change in liability due to plan amendments is amortized separately over a 20-year period. This
amortization schedule is in addition to the amortization schedule shown in the June 30, 2002 annual valuation and any other subsequent
amendments you have adopted.
4 - Excludes 1959 Survivor Benefit Program rate.
5 - Your actual contribution rate for 2005-06 will be based on a new set of actuarial assumptions and will reflect the increase in industrial
disability benefits required by the Arnett decision. Because of these changes, your actual contribution rate for 2005-06 may be substantially
higher than the estimates shown here.
In the above table, the information shown in the 2004-05 box represents the actual initial contribution rate
that will apply during fiscal 2004-05 if you adopt the amendment. The contribution rates shown for 2005-
06 are estimates which incorporate the investment return for 2002-03. However, your actual contribution
rate for 2005-06 will be based on a new set of actuarial assumptions and will reflect the increase in
industrial disability benefits required by the Arnett decision. Because of these changes, your actual
contribution rate for 2005-06 may be substantially higher than the estimates shown here.
October 15, 2004 Page 3 of 4
10:52 AM
■ .
CONTRACT AMENDMENT COST ANALYSIS VALUATION BASIS: JUNE 30, 2002
SAFETY PLAN FOR CITY OF VERNON
EMPLOYER NUMBER 209
Benefit Description: Section 20423.6, Public Prosecutors, Public Defenders and Public Defender Investigators
as "Local Safety Members" with Section 21363.1, 3% @ 55 Full Formula; Section 20042, One-year Final
Compensation; Section 21024, Military Service Credit as Public Service; and Sections 21624, 21626 and
21628, Post Retirement Survivor Allowance
Note that the change in normal cost in the table on the previous page may be much more indicative of the
long term change in the employer contribution rate•due to the plan amendment. The plan's payment on
amortization bases shown in the table above is a temporary adjustment to the employer contribution to
"get the plan back on schedule". This temporary adjustment to the employer rate varies in duration
from plan to plan. For example, a plan with initial excess assets being amortized over a short period of
time will typically experience a large rate increase when excess assets are fully amortized. While a plan
amendment for such a plan may produce little or no increase in the employer contribution rate now, the
change in normal cost due to the plan amendment will become fully reflected in the employer
contribution rate as soon as initial excess assets are fully amortized.
Disclosure
If your agency is requesting cost information for two or more benefit changes, the cost of adopting more
than one of these changes may not be obtained by adding the individual costs. Instead, a separate
valuation must be done to provide a cost analysis for the combination of benefit changes. if the proposed
plan amendment applies to only some of the employees in the plan, the rate change due to the plan
amendment still applies to the entire plan, and is still based on the total plan payroll.
Any mandated benefit improvements not included in the June 30, 2002 annual valuation have not been.
incorporated into this cost analysis.
Please note that the cost analysis provided in this document may not be relied upon once the CalPERS
actuarial staff have completed the next annual valuation, that is, the annual valuation as of June 30, 2003.
If you have not taken action to amend your contract, and we have already completed the June 30, 2003
annual valuation report, you must contact our office for an updated cost analysis, based on the new annual
valuation.
Descriptions of the actuarial methodologies, actuarial assumptions, and plan benefit provisions may be
found in the appendices of the June 30, 2002 annual report. Please note that the results shown here are
subject to change if any of the data or plan provisions change from what was used in this study.
Certification
This actuarial valuation for the proposed plan amendment is based on the participant, benefits, and asset
data used in the June 30, 2002 annual valuation, with the benefits modified if necessaryto reflect what is
currently provided under your contract with CalPERS, and further modified to reflect the proposed plan
amendment. The valuation has been performed in accordance with standards of practice prescribed by the
Actuarial Standards Board, and the assumptions and methods are internally consistent and reasonable for
this plan, as prescribed by. the CalPERS Board of Administration according to provisions set forth in the
California Public Employees' Retirement Law.
l ""v
Kung-pei Hwang, A.S.A., M.A.A.A.
Senior Pension Actuary, CalPERS
October 15, 2004
10:52 AM
Page 4 of 4
j,
t ;anRS
ti
California
Public Employees' Retirement System
r
AMENDMENT TO CONTI. CT
Between the
Board of Administration
California public Employees' Retirement System
and the
City Council
City of Vernon
'rhe 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
November 1, 1948, and witnessed October 23, 1948, and as amei tded effective April 1,
1956, October 1, 1960, July 1, 1966. October 1, 1972, May 1, 1971, November 1, 1975,
December 1, 1976, March 1, 1979, July 6, 1986, October 17, 198E , September 7, 1990,
January 19, 1991, September 21, 1991, December 24, 1993, October 30, 1994, July 10
1997 and June 30, 2002 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows: ! i
.k Paragraphs 1 through 13 are hereby stricken from said contract as execut6a
effective June 30, 2002, and hereby replaced by the foNowing paragrapl
numbered 1 through 14 inclusive:
1. All words and terms used herein which are d Mined in the there
Employees' Retirement Law shall have the meaning as defined p
unless otherwise specifically provided. ,Normal retirement age" shall
mean age 55 for local miscellaneous members and local prosecutors and
age 50 for local police and local fire members.
t
2.
3.
Public Agency shall participate in the Public Employees' Retiremkt
System from and after November 1, 1943 makir g its employees •his
hereinafter provided, members of said System subject to all provision4..of
the Public Employees' Retirement Law except suo:h as apply only (,sin
election of a contracting agency and are not provide I. for herein and tmall
amendments to said Law hereafter enacted exci pt those, which gay
express provisions thereof, apply only on the election of a contraeNg
agency.
to
Employees of Public Agency in the following cl, asses shall become
members of said Retirement System except such in r 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 loc: it safety members);
C. Local Prosecutors (included as local safety members); r"
d. Employees other than local safety members herein referred to as
local miscellaneous members).
4 In addition to the cAasses of employees excluded from membership by
said Retirement Law, the following classes of employ ass shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. The percentage of final compensation to be provi- led for each year of
credited prior and current service as a local miscall ineous 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 provi Jed for each year o
credited prior and current service as a local fi-e "member shall b4
determined in accordance with Section 21352 of sab I Retirement Law (20
at age 50 Full). t )
7. The percentage of final compensation to be provided for each year b
credited prior and current service as a local pol rce member shall
determined in accordance with Section 21362.2 of said Retirement I"
(3% at age 50 Full). i
4T
8. The percentage of final compensation to be prov dedfor each hear
li be
credited prior and current service as a local prosecutor
determined in accordance with Section 21363.1 0. said Retirement Law
(3% at age 55 Full).
f�
"C'
9. Public Agency elected and elects to be subject to 1 he following optlo�al
provisions:
r
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for Ioaat
police members only. L,
b. Sections 21624, 21626 and 21628 (Post Retirement Survil�br
Allowance).'
G. Section 21024 (Military Service Credit as Put Jic Service), Statutes
of 1974.
d, Section 20042 (One -Year Final Compensation ).
e. Section 21573 (Third Level of 1959 Survivw)r Benefits) for local
miscellaneous members'. local fire members ; and local prosecutors
only. ,N
f. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit) for local miscellaneous members ar d local fire members
only.
g. Section 20423.6 ("Local Safety Member, shalt include loca
r"l
prosecutors, local public defenders, and t acal public defender
investigators as described in Government Coc a Section 20423.6).
I a. Public Agency, in accordance. with Government +;ode Section 20790,
ceased to be an "employer" for purposes of Sectit in 20834 effective on
November 1, 1975. Accumulated contributions of Fublic Agency shall be
fixed and determined asprovided
tthhereafteer Bali be eld by theent Code Board as
and accumulated corrtnb
provided in Government Code Section 20834.
11. Public Agency shall contribute to said Retirement Sy stem the contributiora�
determined by actuarial valuations of prior and future service liability wilt)
respect to local miscellaneous members and local safety members of sa0
Retirement System. t )
12. public Agency shall also contribute to said Retirement System as follows`,)
a. Contributions required per covered member ,>n account of the 19t
Survivor Benefits provided under Section 21 i73 of said Retirement
Law. (Subject to annual change.) In ac dition, all assets ,nna
liabilities of public Agency and its employe( S shall be pooled
single account, based on term insurance rates, for survivors of all
local miscellaneous members; local fire members arxi local
prosecutors.
b. A reasonable amount, as fixed by the Bc ard, payable in ¢Tie
installment within fio 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 Bc ard, payable in pike
installment as the occasions arise, to cover the costs of spe6-ial
valuations on account of employees of Public Agency, and costwof
the periodic investigation and valuations requi -ed by law.
13. 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 perio iic investigation and
valuation required by said Retirement Law.
14. Contributions required of Public Agency.and its employees shall be pild
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 tho. correct amount of
contributions is paid for any period, proper adjustrr:ent shall be made in
connection with subsequent rerhittances. . Adjustments on account of
errors in contributions required of any employee m ay be made by direct
payments between the employee and, the Bbard.
B. This a(riendment shall be effective on the I�daY,af
BOARD OF ADMINISTRATION CITY COUNCI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERI ION
BY
BY
By
KE NE H
MARZt , C MEF
PRES�FFICER
I.A
i.�
IA
8 EMPLOYER SERVICE DIVlSit?N
1
PUBLIC E
PLOYEES' RETIREMENT SYSTEM
Witness Date
I �
Attest:
^
Clerk
AMENDMENT ERN 0209
PEPS-CON-IM (Rev. 902)
4flr-7'_ ion
'ublic Agency, in -the fdllo
ors of said Retiremenf S
as are excluded by law
f
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: November 28 2012
TO: Rory Burnett, Finance Director/City Treasurer
Teresa McAllister, Director of Human Resources
Mark Whitworth, City Administrator/Fire Chief
FROM: Deborah Juarez, Records Management Assistant;,
RE: Resolution No. 2012-192 - Resolution Authorizing a Correction
to the Amendment to Contract to Contract Between the Board of
Administration California Public Employees' Retirement System
and the City Council City of Vernon
Transmitted herewith is a copy of the above -referenced resolution that
was approved by City Council on October 16, 2012, and executed by both
the City of VernonandCalPers.
Thank you.
Attachment
c: Ordinance No. 1104
Resolution No. 8605
Ordinance No. 1144
Resolution Nos. 9524 & 9646
ro
CO
�dr'deflvery information
visit our website at
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Return Receipt Fee,
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Sent To
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Pan e1l.Q.3 ro4ks.....CALFTRS..................................
C3
Street, Apt. No.;
-POB-No. p •0.
Box 942704
City, State, ZIP+4
Sacramento, CA 94229-2704
:rr 00.
C
_W, .
4305 Santa Fe.Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 18, 2012
Danielle Brooks, VIA U.S. CERTIFIED MAIL
Employer Representative
California.Public Employees'
Retirement System
P.O. Box 942704
Sacramento, CA 94229-2704
Re: CalPERS Audit Findings #5
Dear Ms. Brooks:
Per your letter dated September 27, 2012, enclosed please find
two partially executed resolutions for the above -referenced
matter adopted by the City Council on October 16, 20.12.
If you have any questions or comments, please contact Kristen
Enomoto at (323) 583-8811 ext. 398.
Yours truly,
Ana Barcia
Deputy City Clerk
AB:em
Enclosures
cc: Mark Whitworth, City Administrator
Nicholas Rodriguez, City Attorney
E,cfusivefy Industriaf
RESOLUTION NO. 2012-192
RESOLUTION AUTHORIZING A CORRECTION TO THE
AMENDMENT TO CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF
VERNON
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Ana Barcia, Deputy City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2012-192,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, October 16, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this day of October, 2012, at Vernon, California.
Ana rcia, Dep y City Clerk
(SEAL)
G1TY OF:VERNON
`'i
13:F` 1
t
'. E
Jury. U AVOU, UULUlJer;:rI, 4yav;,,aaptemoer.I" ryau, January ru, itit=r,
California Public Employees' Retirement System
Customer Account Services Division
P.O. Box 942704
- Sacramento, CA 94229 2704
CalPERS TTY: (916) 795-3240
888 CalPERS (or 888-225-7377) phone (916) 795-3005 fax
www.calpers.ca.gov
September 27, 2012
Ms. Kristen Enomoto
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Ms. Enomoto:
ID # 3431795727
Due to CalPERS audit finding #5, enclosed are two copies of a Resolution authorizing an
amendment to strike the contract dated February 6, 2005.
This will correct CalPERS audit finding #5.
Please return two executed copies of the Resolution. A copy will be returned for your
records after it has been executed by CalPERS.
If you have any questions, please call (888) CalPERS (225-7377).
Sincerely,
Danielle Brooks
Employer Representative
Public Agency Contract Services
Enclosures
G
California Public Employees' Retirement System
www.calpers.ca.gov
DATE: . October 11, 2012
TO: Honorable Mayor Pro Tem and City Council
FROM: Mark C. Whitworth, City Administrator
RE: Ca1PERS Correction Resolution
Background
In February 2005, the City amended its contract with the Board of Administration of the
California Public Employees' Retirement System (Ca1PERS) to add the following provision,
which effectively granted city attorneys a safety formula:
"The percentage of final compensation to be provided for each year of credited prior and
current service as a local prosecutor member shall be determined in accordance with
Section 21363.1 of said Retirement Las (3% at age 55 Full)."
Beginning in 2010, Ca1PERS Office of Audit Services conducted a public agency review of the
City of Vernon and issued a report of its findings on April 27, 2012. One of the findings was as
follows:
"The City incorrectly reported attorneys under coverage group 79001, a safety
classification that provides anenhanced retirement benefit formula of 3% @ 55."
In its January 31, 2012 response to the draft report, the City acknowledged that it had received
inaccurate advice regarding the qualifications of city attorneys, and indicated its desire to work
with Ca1PERS to correct the issue and properly reclassify the positions under the miscellaneous
category.
As such, the City received the attached correction resolution from CalPERS, which is being
presented for adoption. The resolution also corrects errors to the City's current contract with
Ca1PERS, effective June 22, 2008, that were discovered during this process.
Recommendation
It is recommended that the attached Ca1PERS correction resolution be approved and adopted.
ag
sa
pry
ag
be
V 11'G,r./f ,r' 1 IIr \4I1 ll lV-.,I,IV VUVII vl a vvl Ipq uvur,Iy -
ublic Agency inthe fo owlngLLclasses shall
is of said: Retiremenfi.�ystern`exeept such in
Year of predited prior and current service as a local prosecutor
member:shalf be„determined, ire accordance with Section
:'2.1363.1 of said Retirement Law -3 at age 55 Fully. .
ClDrihlir�- r.or,r.. aho�:4o^F::�.:1 4—...'.- e., 4.....+.+:. +4. ..11....... ..
follow:
99.7,