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Ordinance No. 1205ORDINANCE NO. 1205 AN UNCODIFIED 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, February 3, 2007, May 27, 2007, and June 22, 2008; and WHEREAS, on April 16, 2013, the City Council adopted. Resolution No. 2013-47 declaring its intention to approve an amendment to the Contract to provide Section 20965 (Credit for Unused Sick Leave), for local safety 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 WHEREAS, the City Council of the City of Vernon wishes to amend the Contract to provide Section 20965 (Credit for Unused Sick Leave), for local safety 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: Book of Ordinances. The Interim City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this Ordinance and shall cause this Uncodified Ordinance and the Interim City Clerk's, or Deputy City Clerk's, certification to be entered in the Book of Ordinances of.the Council of this City. The Interim City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. - 2 - SECTION 4: This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage. APPROVED AND ADOPTED this 7th day of May, 2013. 'u' Dana Reed Interim City Clerk / y g�� .17 Name: W. Michael McCormick Title: Mayor / �zrpvx—rrmrei APPROVED AS TO FORM: Zaynah v ussa, Deputy City Attorney - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, DANA REED, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1205, was duly and regularly introduced at a meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, April 16, 2013, and thereafter adopted at a meeting of said City Council held on Tuesday, May 07, 2013, by the following vote: AYES: Councilmembers: Mayor McCormick, Mayor Pro-Tem Davis, Maisano, Martinez, Ybarra NOES: Councilmembers: None ABSENT: Councilmembers: None And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of Ma4DaReded Lnn,alifornia. Interim City Clerk (SEAL) -4- Ca1PERS California Public Employees' Retirement System EXHIBIT 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, June 30, 2002, February 3, 2007, May 27, 2007 and. June 22, 2008 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 22, 2008, and hereby replaced by the following paragraphs numbered 1 through 14 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. 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. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaIPERS retirement program. (b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas (c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. 4. 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). 5. 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 6. The percentage of final compensation to be provided for each year of credited prior and. current service as a local miscellaneous member in employment before and not on or after June 22, 2008 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after June 22, 2008 shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full). 8. 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). 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). d. Section 20042 (One -Year Final Compensation). e. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. f. Section 21548 (Pre -Retirement Option 2W Death Benefit) for local miscellaneous members and local fire members only. g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members only. h. Section 20965 (Credit for Unused Sick Leave) for local safety 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. 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 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM F-M KAREN DE FRANK, CHIEF CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT CaIPERS ID#3431795727 PERS-CON-702A day of CITY COUNCIL CITY OF VERNON BY PRESIDING OFFICER Witness Date ISmi Clerk CITY OF VERNON CITY COUNCIL MEETING APRIL 16, 2013 ORDINANCE NO. 1205 SUMMARY A CERTIFIED COPY OF THE FULL TEXT OF PROPOSED ORDINANCE NO. 1205 IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. Ordinance No. 1205 was duly introduced at a regular meeting of the City Council of the City of Vernon held on April 16, 2013. Ordinance No. 1205 is scheduled to be approved and adopted by said Council at a regular meeting to be held on May 7, 2013. On May 7, 2013, the City Council of the City of Vernon is proposing to adopt Ordinance No. 1205 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 for the purpose of approving an amendment to provide Section 20965 (Credit for Unused Sick Time), for local safety members, only. Dana Reed, Interim City Clerk of the City of Vernon, does hereby certify that Ordinance No. 1205 was duly introduced to the City Council of the City of Vernon at a regular meeting held on April 16, 2013, and said Ordinance is scheduled to be approved and adopted at a regular meeting of the City Council to be held on May 7, 2013. Dated: L - 9 7 -/ D a Reed, Interim City Clerk CITY OF VERNON CITY COUNCIL MEETING MAY 7, 2013 ORDINANCE NO. 1205 SUMMARY A CERTIFIED COPY OF THE FULL TEXT OF ADOPTED ORDINANCE NO. 1205 IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA. On May 7, 2013, the City Council of the City of Vernon Approved and Adopted Ordinance No. 1205 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 for the purpose of approving an amendment to provide Section 20965 (Credit for Unused Sick Time), for local safety members, only. I, Dana Reed, Interim City Clerk of the City of Vernon, do hereby certify that Ordinance No. 1205 was duly approved and adopted by the City Council of the City of Vernon at a regular meeting held on May 7, 2013, and passed by said Council by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Dated: McCormick, Davis, Maisano, Ybarra, and Martinez None None I(f'W/ 9 Dana Reed, Interim City Clerk California Public Employees' Retirement System Customer Account Services Division Retirement Account Services Section P.O. Box 942709 Sacramento, CA 94229-2709 TTY: (877) 249-7442 8888 CalPERS (ory8888-225-7377) phone - (916) 795-3005 fax Ca1PERS May 6, 2013 CalPERS ID# 3431795727 Ms. Teresa Mcallister City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Ms. Mcallister: We have received the Resolution of Intention to amend your CalPERS contract to provide Section 20965 (Credit for Unused Sick Leave) for local safety members only. Enclosed are the following documents necessary to complete the proposed amendment: Amendment to Contract. 2. Certification of Final Action of Governing Body (Form CON-5). Your agency adopted the Resolution of Intention on April 16, 2013, therefore, the earliest date the final Ordinance could have been adopted was May 6, 2013, pursuant to Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW. The effective date of this amendment cannot be earlier than the first day of a payroll period 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 submitted through mylCalPERS and the original documents must be returned to this office by mail. ORIGINAL SIGNATURES ARE REQUIRED ON ALL CONTRACTS. 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 City of Vernon -2- May 6, 2013 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: The employer contribution rate on the contract amendment effective date will be 28.602% of reportable earnings for local safety members. 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, ^ "a , C V RD Danielle Brooks Employer Representative Public Agency Contract Services Enclosures CONTRACT/AMENDMENT SIGNATURE ROUTING FORM CONTRACTOR: California Public Employees' Retirement System (CalPER CONTRACT PURPOSE: Amendment to Contract to add benefit 20965, Credit for Unused Sick leave to the safetyl2lans CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETIVE SELECTION & NOTICED RFP ❑COMPETITIVE BID & NOTICED INVITATION TO BID ❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES ❑ MATERIALS ❑ BUDGETED ❑ NOT BUDGETED TOTAL CONTRACT VALUE: $ Charge Acet. No(s) Amendment Value $ ❑ Contract is an Amendment to Contract No. if Applicable) RESPONSIBLE DEPARTMENT PERSON: PHONE: X AUTHORIZATION: MPEf Approved by Council on'May 7. 2013 (Check One) Ordinance No. 1205 (if applicable) ❑ Approved by City Administrator on Note: Attach supporting documentation ❑Amendment Approved by (if applicable) ROUTING SEQUENCE: (Please Follow In Order — Do not use N/A) Initials Date (1) Responsible Department Person Checks substance of contract and assembles two (2) copies of Contract, insurance & bond documents, certifies compliance With Competitive Bidding and Purchasing Ordinance `a N (2) Liability and Claims 64 �.�y°� 1 Approves insurance and sureties, if bonds required Vr L (3) Finance (Purchasing) Checks compliance with Competitive Bidding & Living Wage Ordinances And reflected in current budget (4) City Attorney Approves contract as to form, verifies bonds and insurance included (5) City Signatory Signs all copies on behalf of City 5—/V' (6) City Clerk 7 Attests signatures, numbers, files contract, insurance and bonds, and �t 3 transmits duplicate original to contractor Rev.-0/25/13 OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 May 15, 2013 Ms. Danielle Brooks Employer Representative Public Agency Contract Services California Public Employees' Retirement System P. O. Box 942709 Sacramento, CA 94229-2709 Re: CalPERS ID# 3431795727 Amendment to Contract to Provide Section 20965 (Credit for Unused Sick Leave) for Local Safety Members Dear Ms. Brooks: In accordance with your letter of May 6, 2013, enclosed please find the following documents: 1. Certified copy of Ordinance No. 1205, together with an original Certification of Final Action of Governing Body (Form CON-5) 2. Two original executed sets of the Amendments to Contract Please ensure that a fully executed original Amendment to Contract is returned to my attention for our file. Sinc ly, De or R. Juarez �( Records Management Assistant Enclosures c: Ana Barcia William Fox Teresa McAllister Mark Whitworth Ordinance No. 1205 Agreement No. 13-026 E)Ccfusivefy Industiiaf ;, !� t (': : �`' ��l �..I �•�,jj5 7 ',,:; TI amouht, agfixed the Board; payable in` An AnOo of the', ,l `" { APpROVED,i �" � � ,, s r � Ur;T � f '��i i' .�"i ., r i2 � � ._ ,.. _�� � _ t' CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the City Council of the (governing body) City of Vernon (public agency) considered and adopted on May 7 , 2013 by an affirmative (date) vote of a majority of the members of said Governing Body, Ordinance /-Reselutiea No. 1205 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 l Reselution in the form furnished by said Board of Administration being attached hereto. Adoption of the retirement benefit increase/change was not placed on the consent calendar. Dana Reed Interim City Clerk Title Date PERS-CON-5 (Rev. 6/09) CERTIFICATE STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES) I, Dana Reed, Interim 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. 1205 - An Uncodified 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 V rnon, County of Los Angeles, State of California, on this day of May 2013. SEAL: im City Clerk ORDINANCE NO. 1205 AN UNCODIFIED 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, February 3, 2007, May 27, 2007, and June 22, 2008; and WHEREAS, on April 16, 2013, the City Council adopted Resolution No. 2013-47 declaring its intention to approve an amendment to the Contract to provide Section 20965 (Credit for Unused Sick Leave), for local safety 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 WHEREAS, the City Council of the City of Vernon wishes to amend the Contract to provide Section 20965 (Credit for Unused Sick Leave), for local safety 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. QWnTTnM Z• n"I, of 0r14n..... The Interim City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this Ordinance and shall cause this Uncodified Ordinance and the Interim City Clerk's, or Deputy City Clerk's, certification to be entered in the Book of Ordinances of the Council of this City. The Interim City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. - 2 - SECTION 4: This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage. APPROVED AND ADOPTED this 7th day of May, 2013. Name: W• Michael McCormick Title: Mayor /�,aycri- cra icr Interim City Clerk ,� 8er�itp—Elr�� APPR VED AS TO FORM: ZaynaV M ussa, Deputy City Attorney - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, DANA REED, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance zaasziu— - etingoly-andregularp=introduced-at &-me City AYES: Councilmembers: Mayor McCormick, Mayor Pro-Tem Davis, Maisano, Martinez, Ybarra NOES: Councilmembers: None ASSENT: Councilmembers: None And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this —lb— day of May, 20 3, (at�U rn , California. W Dan Reed Interim City Clerk ( SEAL) -4- Ca1PERS California Public Employees' Retirement System EXHIBIT 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, June 30, 2002, February 3, 2007, May 27, 2007 and June 22, 2008 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 22, 2008, and hereby replaced by the following paragraphs numbered 1 through 14 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 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- - rovisions_thereof,-apply_-0nly -on—the -election -of—a--contractin agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaIPERS retirement program. (b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas (c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. 4. 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). 5. 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 ma}�or��p�satisor�AQ-be-_pr�uide-d= reach —years#-------_ credited prior and current service as a local miscellaneous member in employment before and not on or after June 22, 2008 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after June 22, 2008 shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full). 8. 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). 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). d. Section 20042 (One -Year Final Compensation). e. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. f. Section 21546 (Pre -Retirement Option 2W Death Benefit) for local miscellaneous members and local fire members only. g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members only. h. Section 20965 (Credit for Unused Sick Leave) for local safety 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. 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 - ---__— ----�onneetion--with---subsequent-remitfanc-es.---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 ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON BY KAREN DE FRANK, CHIEF CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT CaIPERS ID#3431795727 PERS-CON-702A f:17 PRESIDING OFFICER Witness Date Attest: Clerk California Public Employees' Retirement System Customer Account Services Division Retirement Account Services Section P.O. Box 942709 Sacramento, CA 94229-2709 �j TTY: (877) 249-7442 CC^'��T� 888 CalPERS (or 888-225-7377) phone - (916) 795-3005 fax aIPERS www.calpers.ca.gov July 2, 2013 Ms. Teresa Mcallister City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Ms. Mcallister: RECEIVED JUL 16 2013 CITY CLERK'S OFFICE CaIPERS ID # 3431795727 The contract amendment has been executed by CaIPERS. The effective date of the contract amendment is June 16, 2013. If you have any questions regarding your contract, please do not hesitate to contact our office at (888) CalPERS (225-7377). Sincerely, -�W� aj* Retirement Contract Services DB:mc Enclosure California Public Employees' Retirement System www.calpers.ca.gov CaIPERS 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, September21, 1991, December24, 1993, October 30, 1994, July 18, 1997, June 30, 2002, February 3, 2007, May 27, 2007 and June 22, 2008 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 22, 2008, 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 age 50 for local safety members. 2. PublicAgency 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. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public' Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's; election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CalPERS retirement; program. (b) Any dispute; disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public. Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas (c) Public Agency's agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or; formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. 4. 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). 5. 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 6. The percentage of final compensation to be provided for each year of credited prior and current service as alocal miscellaneous member in employment before and not on or after June 22, 2008 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after June 22, 2008 shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7%d at age 55 Full). 8. 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). 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). d. Section 20042 (One -Year final Compensation). e. Section'21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. f. Section 21548 (Pre -Retirement Option 2W Death Benefit) for local miscellaneous members and local fire members only. g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members only. h. Section 20965 (Credit for Unused Sick Leave) for local safety, 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 20834,and 208, 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. 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 16th day of June 2013 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON BY PMESIDING OFFICER CUSTOMER ACCOUNT SERVICES DIVISION W:. Michael McCormick, Mayor PUBLIC EMPLOYEES' RETIREMENT SYSTEM WitneEfs Dat Reed, Interim City Clerk APPROVED AS TO FORM: Zaynah fussa, Deputy City Attorney AMENDMENT CaIPERS ID #3431795727 PERS-CON-702A spec, RECEIVED MAR 2 5 2013 CITY CLERK'S OfFICE STAFF REPORT DATE: April 16, 2013 CITY ADMINISTRATION TO: Honorable Mayor and City Council FROM: Mark.C. Whitworth, City Administratort�L.+�r' . RE: A RESOLUTION OF INTENTION AND ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON, CALIFORNIA, TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD. OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF VERNON Recommendation It is recommended that the City Council: 1) Find that approval of the proposed resolution of intention and ordinance amending the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council City of Vernon is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. 2) Approve and adopt the attached Resolution of Intention and related certification of compliance to amend the contract between the Board of Administration of the California Public Employees' Retirement System (CalPERS) and the City Council City of Vernon to add benefit 20965, Credit for Unused Sick leave to the safety plans. 3) Approve for first reading the proposed Ordinance to amend the contract between the Board of Administration of the California Public Employees' Retirement System (CalPERS) and the City Council City of Vernon to add benefit 20965, Credit for Unused Sick leave to the safety plans. Backaround The City and the City of Vernon Safety groups concluded labor negotiations on June 18, 2012 regarding wages, benefits and working conditions for the 2012/2014 Memorandum of Understanding. On June 19, 2012, the City Council approved changes to the benefits and contract language incorporated into an agreement with the Public Safety Groups. One of these benefits was that the City agrees to provide additional supplemental retirement benefits to the Safety unit employees under PERS to include Government Code Section 20965, Credit for Unused Sick Leave. Simultaneous to the adoption of the MOU by City Council on June 19, 2012, a recommendation regarding the CalPERS Unused Sick Leave Credit was also placed on the City Council agenda by staff recommending that City Council forego amending the City's CaIPERS contract to add benefit Section 20965, Credit for Unused Sick leave. This benefit option was first offered as an option by way of a Citywide Sick Leave Policy (Resolution No. 9267) on March 5, 2007 and was never enacted thereafter. Staffs recommendation to forego the sick leave conversion option was based upon the CalPERS Actuarial in which the City's rates would increase for 2012-2013 and 2013-2014 fiscal year. On June 19, 2012, the same day the Firefighter and Police Officer MOUs' were adopted, the City Council also adopted the recommendation to forego implementation of the CalPERS Unused Sick Leave benefit and amended the City's Sick Leave Policy to remove same (Resolution No. 2012-111). Subsequently, on December 10, 2012, and March 5, 2013, the City was notified through representatives of the Fire and Police Groups respectively, that the City failed to amend its contract with CalPERS to implement the benefit specified above which provides that unused sick leave may be converted to service credit.. Because the provision of that benefit is clearly set forth in the Memorandum of Understanding between the Associations and the City, the Association's legal representatives have demanded that the City Council promptly take all action necessary to amend its contract with CalPERS to implement the specified benefit. Consequently, Government Code Section 7507 requires that the future annual costs or benefit change of the proposed contract be made public at a public meeting at least two weeks prior to the adoption of the final ordinance. The Unused Sick Leave conversion is for full-time vested employees. The benefit allows employees to convert their unused sick leave to additional service credit upon retirement. Disclosure of the cost of this Contact Amendment (Safety) 1) Change in the Present Value of Benefits $608,851 2) Change in the Accrued Liability $459,562 3) Change in the Total Employer Rate 13/14 .470% $53,035.00 estimate cost 4) Est. Change in the Total Employer Rate 14/15 1.498% $169,034.00 estimate cost Government Code Section 20471 requires a 20 day period between the adoption of the Resolution of Intention and the adoption of the final Ordinance. There are no exceptions to this law. Fiscal Impact The anticipated cost related to the implementation of the CalPERS Benefit 20965, Unused Sick Leave Conversion benefit is estimated to be $53,035.00 for fiscal year 2013/14 and $169,034.00 for fiscal year 2014/15.