Ordinance No. 11271
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ORDINANCE NO. 1127
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, June 30, 2002 and February 6,
2005; and
WHEREAS, on December 13, 2006, the City Council adopted
Resolution No. 9189 declaring its intention to approve an amendment to
the Contract to provide Section 21574 (Fourth Level of 1959 Survivor
Benefits) for local fire members only; 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
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WHEREAS, the City Council of the City of Vernon wishes to
amend the Contract to provide benefits under Government Code Section
21574 (Fourth Level of 1959 Survivor Benefits) for local fire members
only.
THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
SECTION 1: An amendment to the Contract between the City
Council of the City of Vernon and the Board of Administration,
California Public Employees' Retirement System is hereby approved and
authorized, a copy of said amendment being attached hereto, marked
Exhibit, and by such reference made a part hereof as though herein set
out in full_
SECTION 2: The Mayor or Mayor Pro-Tem of the City Council is
hereby authorized, empowered, and directed to execute said amendment
for, and on behalf of, the City of Vernon.
SECTION 3: There being no newspaper printed, published or
circulated in the City of Vernon, the City Clerk is hereby directed to
certify to the passage of this ordinance and shall post the same, or
cause the same to be posted, within fifteen (15) days after its passage
in accordance with Section 36933 of the Government Code, in three (3) of
the most public places in the City of Vernon, to wit: the northwest
corner of 38th Street and Santa Fe Avenue, the northeast corner of
Leonis Boulevard and Pacific Boulevard, and on the bulletin board
located outside on the wall near the second floor entrance to the City
Hall of said City, located at 4305 Santa Fe Avenue, 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 3rd day of January, 2007.
ATTEST:
BRUCE V. MALKENHORST, JR.
Acting City Clerk
THOMAS A. YB RRA, Mayor Pro-Tem
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Ordinance, being Ordinance
No. 1127 was duly and regularly introduced at a regular meeting of the
City Council of the City of Vernon, held on Wednesday, December 20,
2006, and thereafter finally adopted at a regular meeting of the City
Council held on Wednesday, January 3, 2007, and thereafter was duly
signed by the Mayor Pro-Tem of the City of Vernon, by the following
vote:
(SEAL)
AYES: Councilmen: Mayor Pro-Tem Ybarra, Davis,
Gonzales, McCormick
NOES: Councilmen: None
ABSTAINED: Councilmen: None
ABSENT: Councilmen: Mayor Ma u g
BRUCE 'T. MALKENHORST, JR.
Acting City Clerk
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EXHIBIT
California
Public Employees' Retirement System
4401100.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
Ctiy 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, June 30, 2002 and February 6, 2005 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective February 6, 2005, 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.
PLEASE DO CEO
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).
9. Public Agency elected and elects to be subject to the following OpOMW
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for kxMl
police members only.
b. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance).
C. Section 21024 (Military Service Credit as Public Service).
d. Section 20042 (One -Year Final Compensation).
e. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous 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).
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire
members only.
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 and local prosecutors.
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 fire 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.
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 3rd day of February 2007
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON
BY
LORI MCGARTLAND, CHIEF
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
APPROVE S TO FORM:
ie a ison, Acting City Attorney
fo e ity of Vernon
BY
P-RtSUNG OFFICER i ONIS C. ALBURG,
� Mayor
7
Witness Date
CI rk
Manuela Giron, Acting City Clerk
AMENDMENT ER# 0209
PERS-CON-702A (Rev. 10\05)
SUPPORTING
DOCUMENTS
A.
t ` Employer Services Division
P.O. Box 942709
-� Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 795-3240 JAN § 1 2007
CalPERS 888 CAPERS (or 888-225-7377) FAX (916) 795-3005
LA:Ji�ER'S 4FFiC
Ty OF VERNON
January 8, 2007 Employer Code #0209
Ms. Sharon L. Duckworth
City Treasurer
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Ms. Duckworth:
Reply to Section 105
U\
.�e
We have received the Resolution of Intention to amend your CaIPERS contract to
provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members
only.
Enclosed are the following documents necessary to complete the proposed
amendment:
1. Amendment to Contract.
Qr
2. Certification of Final Action of Governing Body (Form CON-5).
Your agency adopted the Resolution of Intention on December 13, 2006 and made
costs public on December 20, 2006, therefore, the earliest date the final Ordinance
could have been adopted was January 3, 2007, pursuant to Government Code Section
20471. THERE ARE NO EXCEPTIONS TO THIS LAW.
The effective date of this amendment may be as early as the day following the
effective date of the Ordinance. Please insert the effective date on the last page of the
Amendment to Contract.
The following documents must be returned to this office. ORIGINAL SIGNATURES
ARE REQUIRED ON ALL DOCUMENTS.
1. Amendment to Contract, two original executed sets.
2. Ordinance, original or certified copy.
3. Certification of Final Action of Governing Body (CON-5), original.
California Public Employees' Retirement System
www.calpers.ca.gov
i
City of Vernon -2- January 8, 2007
This amendment requires an adjustment in the amount of monthly benefit payments
and shall become operative the first of the month following a period of 30 days after
receipt of the final documents in the CalPERS Sacramento office.
Please notify your personnel/payroll staff and any others who submit payroll or
membership documents to CalPERS on behalf of the agency, such as county courts
and port districts, of the following information as of the effective date of the amendment
to the contract:
• Local fire members covered by the 1959 Survivor Benefits contribute $2.00 per
month.
The employer's initial Unfunded Liability/Excess Assets for the Fourth Level of 1959
Survivor Benefit amendment will be amortized over the first five years, and added to
the normal cost. Thereafter, the employer ongoing normal cost rate is $5.10 per
month, per covered member. However, the ongoing normal cost the employer is
required to pay will vary from year to year due to investment returns and
experiences by the pool.
Please do not retype the Amendment to Contract and/or agreement documents.
Only documents provided by this office will be accepted. If you have a problem
with any of the documents, please contact this office prior to presenting to your
governing body for adoption. Another contract amendment cannot be started
until this amendment is completed or cancelled.
A copy of the contract 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,
@ "—� �J)
Danielle Brooks
Employer Representative
Public Agency Contract Services
Enclosures
cc: Glendale Regional Office
CITY CLERK'S OFFICE
DATE: January 10, 2007
TO: Sharon Duckworth, City Treasurer
Martha Valenzuela, Director of Personnel/Purchasing Agent
Willard Yamaguchi, Chief Deputy City Attorney/Acting Risk Manager
FROM: Nelly Giron, Deputy City Clerk
RE: Ordinance No. 1127 - 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
Transmitted herewith is a copy of Ordinance No. 1127 referenced above,
which was approved by City Council on January 3, 2007.
Thank you.
NG:dr
c: Cindy Calzada
Ordinance No. 1127
CITY ATTORNEY
INTER -OFFICE MEMORANDUM
DATE: January 18, 2007
TO: Manuela Giron, Acting City Clerk
FROM: Jeff Harrison, Acting City Attorney
-A
RE: CalPERS Contract Amendment
Nelly:
Attached for processing are two original Amendment to Contract
documents together with an original Certification of Final Action of
Governing Body and a January 8, 2007 letter from CalPERS.
Also attached for your convenience is a draft letter from you to
CalPERS transmitting the above -referenced documents as well as a
certified copy of Ordinance No. 1127.
Ordinance No. 1127 adopted on January 3, 2007, approved the
execution of the Amendment and said ordinance became effective
February 2, 2007. The Amendment shall be effective on February 3,
2007.
Please return the January 8, 2007 letter from CalPERS to Sharon so
that she can complete the notification process specified on page two
of the letter.
JH : j 1
Enclosures
cc: Sharon Duckworth, City Treasurer (w/o Encls.)
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
January 22, 2007
Ms. Danielle Brooks
Employer Representative
Public Agency Contract Services
California Public Employees' Retirement System
P. O. Box 942709
Sacramento, CA 94229-2709
MARK C. WHITWORTH
Fire Chief
LEWIS J. POZZEBON
Director of Environmental Health
S. KEVIN WILSON
Director of Community Services
SHARON L. DUCKWORTH
City Treasurer
DONAL O'CALLAGHAN
Director of Light & Power
Re: Employer Code #0209; Section 105
Section 21574 (Fourth Level of 1959 Survivor Benefits) for
Local Fire Members Contract Amendment
Dear Ms. Brooks:
In accordance with your letter of January 8, 2007, enclosed
please find the following documents:
1. Amendment to Contract, two original executed sets.
2. Certified copy of Ordinance No. 1127 adopted on January 3,
2007.
3. Original Certification of Final Action of Governing Body
(CON-5) form.
Once Ca1PERS has executed the Amendment to Contract, please
return one signed original for our records.
Sincerely,
anuela Gir n
Acting City Clerk
MG: j1
'EXCIUAV010 wubu*iar
0
CERTIFICATE
STATE OF CALIFORNIA )
SS
COUNTY OF LOS ANGELES)
I, Manuela Giron, Acting City Clerk of the City of Vernon,
County of Los Angeles, State of California, hereby certify that
the attached is a full and complete copy of:
ORDINANCE NO. 1127 - 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
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of Vernon, County of Los Angeles,
State of California, on this 23rd day of January 2007.
SEAL:
Manuela Gir n
Acting City Clerk