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Resolution No. 77851 RESOLUTION NO. 7785 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 WHEREAS, the Public Employees' Retirement Law permits the 8 participation of public agencies and their employees in the Public 9 Employees' Retirement System ("PERS") by the execution of a contract, 10 and sets forth the procedure by which said public agencies may elect to 11 subject themselves and their employees to amendments to said Law; and 12 WHEREAS, the Board of Administration of the PERS and the 13 City of Vernon entered into a contract dated October 23, 1948, 14 effective November 1, 1948, which provides for participation.of the 15 City of Vernon and its employees in the PERS, and have made amendments 16 to said contract effective April 1, 1956, October 1, 1960, July 1, 17 1966, October 1, 1972, May 1, 1974, November 1, 1975, December 1, 18 1976, March 1, 1979, July 6, 1986, October 17, 1986, September 7, 19 1990, January 19, 1991, September 21, 1991, December 24, 1993, October 20 30, 1994 and July 17, 1997; and 21 WHEREAS, one of the steps in the procedures to amend this 22 contract is the adoption by the governing body of the public agency of 23 a resolution giving notice of its intention to approve an amendment to 24 said contract, which resolution shall contain a summary of the change 25 proposed in said contract; and 26 WHEREAS, the following is a statement of the proposed change: 27 To provide Section 21362.2 (3% @ 50 Full formula) 28 for local safety members. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon does hereby give notice of intention to approve an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. SECTION 2: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to send a certified copy of this resolution.together with a completed "Certification of Governing Body's Action" to: Barbara Patterson Employer Representative Public Agency Contract Services CalPers Actuarial & Employer Services Division P.O. Box 942709 Sacramento, CA 94229-2709 SECTION 3: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 20th day of June, 2001. ATTEST: BRUCE V. MALKENHORST, City Clerk LEONIS C. MAL URG, Ma or - 2 - v ( . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Resolution, being Resolution No. 7785, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, June 20, 2001, and thereafter was duly signed by the Mayor of the City of Vernon. BRUCE V. MALKENHORST, City Clerk (SEAL) - 3 - TELJun 12'01 14:47 No.004 P.05/09 Ir CaIPERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO"' C1%--'.11P1NT1RACT 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 and July 18, 1997 which provides for participation of Public Agency in said System. Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective July 18, 1997, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. 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. TEL: Jun 12'01 14:48 No.004 P.06/09 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. safe#, -members); b. Local Police Officers (herein referred to as local safety members),- C. Employees other than local safety members (herein referred to as local miscellaneous members). 4. Jr) addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not bocomo momboro of said Retirement System: NO ADDITIONAL EXCLUSIONS 5_ The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). The required member contribution rate is 9% of reportable compensation. 7. 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). TELJun 12'01 14:49 No.004 P.Q7/09 e. Section 21573 (Third Level of 1959 Survivor Benefits for local miscellaneous members and local fire members only. f. Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit) for local miscellaneous members and local fire members only. 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on November 1, 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. 9. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System, 10. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per, covered member on account of the 1959 Survivor Benefits provided under Section 21573 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local fire members. 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. 11. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account- of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. TEL: Jun 12'01 14:49 No.004 P.08/09 . `.. •.. a .. ; R 12. ' Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of , BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk 1 AMENOMENT PERS-CON-702A (Rev. 8%96) SUPPORTING DOCUMENTS t CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. "BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 May 31, 2001 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 VIA FEDERAL EXPRESS Ms. Barbara Patterson Employer Representative Public Agency Contract Services Actuarial Employer Services Division Ca1PERS Lincoln Plaza 400 P. Street Sacramento, CA 95814 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 Re: Resolution of Intention to Amend Plan; Employer Number 209 Dear Ms. Patterson: 'The City of Vernon seeks to amend its contract to include benefits for Section 21362.2 (30 @ 50 Full Formula) for local Police and Fire members. We want to file this resolution with CalPERS before June 30, 2001. I am attaching our election form. We recognize Ca1PERS needs 4 weeks lead time for the contract amendment process, however, we request that a sample form of resolution of intention be prepared quickly so that the City may meet CalPERS's deadline for one-time increase in the actuarial value of assets to 95% of market value for the calculation of the employer rate. In the alternative, we can draft a resolution of intention, incorporating the description of plan benefits, if this will not delay the process. Please advise Eric Fresch, our City contact for this process, who can be reached at (323) 583-8811, extension 175. Ms. Barbara Patterson May 31, 2001 Page 2 Thank you for your help in this matter. Sincerely, CITY OF VERNON G Bruce. V. Maw lkenhorst City Administrator/City'Clerk BVM:go Enclosure cc: Gloria Orosco Joan Francone Eddie Olivo VIA FEDERAL EXPRESS Ms. Barbara Patterson Employer Representative Public Agency Contract Services Actuarial Employer Services Division Ca1PERS Lincoln Plaza 400 P. Street Sacramento, CA 95814 Re: Resolution of Intention to Amend Plan; Employer Number 209 Dear Ms. Patterson: The City of Vernon seeks to amend its contract to include benefits for Section 21362.2 (3% @ 50 Full Formula) for local Police and Fire members. We want to file this resolution with Ca1PERS before June 30, 2001. I am attaching our election form. We recognize CalPERS needs 4 weeks lead time for the contract amendment process, however, we request that a sample form of resolution of intention be prepared quickly so that the City may meet Ca1PERS's deadline for a one-time increase in the actuarial value of assets to 95% of market value for the calculation of the employer rate. In the alternative, we can draft a resolution of intention, incorporating the description,of plan benefits, if this will not delay the process. Please advise Eric Fresch, our City contact for this process, who can be reached at (323) 583-8811, extension 175. f Ms. Barbara Patterson May 31, 2001 Page 2 Thank you for your help in this matter. Sincerely, CITY OF VERNON G' Brucee V. Malkenhorst City Administrator/City Clerk BVM:go Enclosure cc: Gloria Orosco Joan Francone Eddie Olivo J CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 FAX (916) 326-3005 ANTICIPATED SCHEDULE OF AGENCY ACTIONS The City of Vernon, #0209 hereby requests the documents necessary to amend its contract to include the benefit(s) as described below. Section 21362.2 (3% @ 50 full formula) for local fire members only. Section 21362.2 (3% @ 50 Full formula) for local police members only. x- Section 21362.2 (3% @ 50 Full formula) for local safety members. Enter dates: 1.-7-01 THE DATE YOUR AGENCY NEEDS THE RESOLUTION OF INTENTION FROM THIS OFFICE TO INCLUDE IN AGENDA FOR YOUR GOVERNING BODY. This date must be at least four weeks from the date this form is received in the Public AQency Contract Services office. 2. 6-20-01 ADOPTION OF RESOLUTION OF INTENTION. The first reading of the Ordinance may be held on the same day the Resolution of Intention is adopted. EMPLOYEE ELECTION. (Necessary for options which affect the employees' rate of contribution.) 4 7-11-01 ADOPTION OF FINAL ORDINANCE. This date cannot be earlier than 20 days after adoption of the Resolution of Intention (date #2). 5. 8-25-01 EFFECTIVE DATE OF ORDINANCE. Usually 30 days following the date of adoption (date #4), unless a6 Urgency Ordinance is adopted waiving the 30 day period. 6. 8-25-01 EFFECTIVE DATE OF CalPERS AMENDMENT TO CONTRACT. No change in employee or employer contribution rates - the effective date can be the day following the effective date of the Ordinance (date #5). Change in employee or employer contribution rates - the effective date cannot be earlier than the first day of a payroll period following the effective date of the Ordinance (date #5). BY v Bruce V. Malkenhorst TITLE City Administrator Date 5-31-01 TELEPHONE (323) 583-8811 THIS OFFICE WILL PREPARE ALL DOCUMENTS NECES RY TO AMEND YOUR CONTRACT. IF PROCESS BY PROCEEDING WITHOUT YOUR AGENCY ATTEMPTS TO EXPEDITE THE AMENDMENT THE DOCUMENTS PROVIDED BY THIS OFFICE, LEGAL REVIEW MAY BE REQUIRED WHICH COULD DELAY THE ANTICIPATED EFFECTIVE DATE OF THE AMENDMENT. (Ordinance) PERS-CON-8 (Rev. 9198) 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 FAX (323) 581-7924 May 3,1, 2001 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 VIA FEDERAL EXPRESS Ms. Barbara Patterson Employer Representative Public Agency Contract Services Actuarial Employer Services Division Ca1PERS Lincoln Plaza 400 P. Street Sacramento, CA 95814 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 Re: Resolution of Intention to Amend Plan; Employer Number 209 Dear Ms. Patterson: The City of Vernon seeks to amend its contract to include benefits for Section 21362.2 (3% @ 50 Full Formula) for local Police and Fire members. We want to file this resolution with Ca1PERS before June 30, 2001. I am attaching our election form. We recognize CalPERS needs 4 weeks lead timefor the contract amendment process, however, we request t m of resolution of intention be prepared quickly so that the City may meet Ca1PERS's deadline for a one-time increase in the actuarial value of assets to 95% of market value for the calculation of the employer rate. In the alternative, we can draft a resolution of intention, incorporating the description of plan benefits, if this will not delay the process. Please advise Eric Fresch, our City contact for this process, who can be reached at (323) 583-8811, extension 175. M Ms. Barbara Patterson May 31, 2001 Page 2 Thank you for your help in this matter. Sincerely, CITY OF VERNON G/ Bruce V Malkenhorst City Administrator/City Clerk BVM:go Enclosure cc: Gloria Orosco Joan Francone Eddie Olivo 'CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 FAX (916) 326-3005 ANTICIPATED SCHEDULE OF AGENCY ACTIONS The City of Vernon, #0209 hereby requests the documents necessary to amend its contract to include the benefit(s) as described below. Section 21362.2 (3% Q@ 50 Full formula) for local fire members only. Section 21362.2 (3% @ 50 Full formula) for local police members only. x Section 21362.2 (3% @ 50 Full formula) for local safety members. Enter dates: THE DATE YOUR AGENCY NEEDS THE RESOLUTION OF INTENTION FROM THIS OFFICE TO INCLUDEIN NG our weeksDfrom Othe dOtethis Oo mRslre received BODY. This date must be at leas in the Public Agencv Contract Services office. 2. 6-20-01 ADOPTION OF RESOLUTION OF INTENTION.hefiof Intentiost reading n thadopted. Ordinance may be held on the same day the Resolution 3. N A EMPLOYEE ELECTION. (Necessary for options which affect the employees' rate of contribution.) 4 7-11-01 ADOPTION OF FINAL ORDINANCE. This date cannot be earlier than 20 days after adoption of the Resolution of Intention (date #2). 5. 8-25-01 EFFECTIVE DATE OF ORDINANCE. Usually 30 days following waiving the date of day adoption (date #4), unless an Urgency Ordinance is adopted period. 6. 8-25-01 EFFECTIVE DATE OF CalPERS AMENDMENT TO CONTRACT. No change in employee or employer contribution rates - the effective date can be the day following the effective date of the Ordinance (date #5). Change in employee or employer contribution rates - the effective date cannot be earlier than the first day of a payroll period following the effective date of the Ordinance (date #5). _ BY Bruce V. Malkenhorst TITLE City Administrator Date 5-31-01 TELEPHONE (323) 583-8811 THIS OFFICE WILL PREPARE ALL DOCUMENTS NECESSARY TO EBYDYOUR CONTRACT. IF PROCEED PROCEEDING WITHOUT YOUR AGENCY ATTEMPTS TO EXPEDITE THE AMENDMENT PROCESS THE DOCUMENTS PROVIDED BY THIS OFFICE, LEGAL DATE OF THE AMENDMENT. MAY BE REQUIRED WHICH COULD DELAY THE ANTICIPATED EFFECTIVE (Ordinance) PERS-CON-8 (Rev. 9/98) CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Ter WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 May 31, 2001 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 CITY HALL BRUCE W. OLSON 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 FAX: Police Chief 36 TELEPHONE (323) 583--8811 VIA FEDERAL EXPRESS Ms. Barbara Patterson Employer Representative Public Agency Contract Services Actuarial Employer Services Division Ca1PERS Lincoln Plaza 400 P. Street Sacramento, CA 95814 Re: Resolution of Intention to Amend Plan; Employer Number 209 Dear Ms. Patterson: The City of Vernon seeks to amend its contract to include benefits for Section 21362.2 (3% @ 50 Full Formula) for local Police.and Fire members. We want to file this resolution with Ca1PERS before June 30, 2001. I am attaching our election form. We recognize Ca1PERS needs 4 weeks lead time for the e focontract amendment process, however, we request that asamp rm of resolution of intention be prepared quickly so that the City may meet CalPERS'S deadline for a one-time increase in the actuarial value of assets to 95% of market value for the calculation of the employer rate. In the alternative, we can draft a resolution of intention, incorporating the description of plan benefits, if this will not delay the process. Please advise Eric Fresch, our City contact for this process, who can be reached at (323) 583-8811, extension 175. Ms. Barbara Patterson May 31, 2001 Page 2 Thank you for your help in this matter. Sincerely, CITY OF VERNON G/ BruceV.�lkenhorst City Administrator/City Clerk BVM:go Enclosure cc: Gloria Orosco Joan Francone Eddie Olivo . 'CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 FAX (916) 326-3005 ANTICIPATED SCHEDULE OF AGENCY ACTIONS The City of Vernon, #0209 hereby requests the documents necessary to amend its contract to include the benefit(s) as described below. Section 21362.2 (3% @ 50 Full formula) for local fire members only. Section 21362.2 (3% @ 50 Full formula) for local police members only. x Section 21362.2 (3% @ 50 Full formula) for local safety members. Enter dates: 1. 6-7-ol THE DATE YOUR AGENCY NEEDS THE RESOLUTION OF INTENTION FROM THIS OFFICE TO INCLUDE IN AGENDA FOR YOUR GOVERNING BODY. This date must be at least four weeks from the date this form is received in the Public Aaencv Contract Services office. 2. 6-20-01 ADOPTION OF RESOLUTION OF INTENTION. The first reading of the Ordinance may be held on the same day_the Resolution of Intention is adopted 3. N A EMPLOYEE ELECTION. (Necessary for options which affect the employees' rate of contribution.) 4 7-11-01 ADOPTION OF FINAL ORDINANCE. This date cannot be earlier than 20 days after adoption of the Resolution of Intention (date #2). 5. 8-25-01 EFFECTIVE DATE OF ORDINANCE. Usually 30 days following the date of adoption (date #4), unless an Urgency Ordinance is adopted waiving the 30 day period. 6. 8-25-01 EFFECTIVE DATE OF CaIPERS AMENDMENT TO CONTRACT. No change in employee or employer contribution rates - the effective date can be the day following the effective date of the Ordinance (date #5). Change in employee or employer contribution rates - the effective date cannot be earlier than the first day of a payroll period following the effective date of the Ordinance (date #5). BY Bruce V. Malkenhorst TITLE City Administrator Date 5-31-01 TELEPHONE (323) 583-8811 THIS OFFICE WILL PREPARE ALL DOCUMENTS NECESSARY TO AMEND YOUR CONTRACT. IF YOUR AGENCY ATTEMPTS TO EXPEDITE THE AMENDMENT PROCESS BY PROCEEDING WITHOUT THE DOCUMENTS PROVIDED BY THIS OFFICE, LEGAL REVIEW MAY BE REQUIRED WHICH COULD DELAY THE ANTICIPATED EFFECTIVE DATE OF THE AMENDMENT. (Ordinance) PERS-CON-8 (Rev. 9/98) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Division Frublic Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the (governing body) City of Vernon (public agency) on July 11, 2001 (date) ClewSecreta Chief Deputy City Clerk Title PERS-CON-12 (rev. 1/96) 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 FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 July 10, 2001 Barbara Patterson Employer Representative Public Agency Contract Services Calpers Actuarial & Employer Services Division P.O. Box 942709 Sacramento, CA 94229-2709 Re: Resolution No. 7785 Dear Ms. Patterson: EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E.PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Ponce Chief FAX: (323) 583-5236 Transmitted herewith is a certified copy of Resolution No. 7785, approving an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Vernon and a copy of a completed "Certification of Governing Body's Action," approved at the Vernon City Council meeting held June 20, 2001. If you have any questions regarding this matter, please call Mr. Eric Fresch at 323/583-8811 ext. 175. Very truly yours, c..J4zV Gloria J. rosco Chief Deputy City Clerk GJO:ng cc: Eric Fresch Resolution No. 7785 W CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES)§ CITY OF VERNON ) I, Gloria J. Orosco, Chief Deputy City Clerk of the City of Vernon, County of Los Angeles, State of California, do hereby certify that the attached is a true and correct copy of Resolution No. 7785, entitled: Resolution No. 7785 - A Resolution Of The City Council Of The City Of Vernon Declaring Its Intention To Approve An Amendment To The Contract Between The Board Of Administration Of The California Public Employees' Retirement System And The City Council Of The City Of Vernon. The original of said record has been retained in the offices of the City Clerk of the City of Vernon., said offices being in the City of Vernon, County of Los Angeles, State of California. IN WITNESS HEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Vernon, County of Los Angeles, State of California, this loth day of July, 2001., SEAL: Gloria J. Orosco Chief Deputy City Clerk RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF VERNON WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 21362.2 (3% @ 50 Full formula) for local safety members. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. 0 Date adopted and approved (Amendment) CON-302 (Rev. 4/96) Presiding Officer Title 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 and July 18, 1997 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective July 18, 1997, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. 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. Employees other than local safety members (herein referred to as local miscellaneous members). 4. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 5. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). The required member contribution rate is 9% of reportable compensation. 7. 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 and local fire members only. f. Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit) for local miscellaneous members and local fire members only. 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on November 1, 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. 9. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 10. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21573 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local fire members. 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. 11. Contributions required adjustment by Board Retirement Law, and System as determine d 12. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with. subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF VERNON BY BY KENNETH W. MARZION, CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8\96) Actuarial & pioyer Services Division P.O. Box 942709 O%��, Sacramento, CA 94229-2709 . Telecommunications Device for the Deaf - (916) 326-3240 COPY CaIPERS (916) 326-3420 FAX (916) 326-3005 June 5, 2001 Mr. Bruce V. Malkenhorst City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Mr. Malkenhorst: Employer Code #0209 Reply to Section 105 Enclosed are two copies of the Resolution of Intention to amend the agency's contract to provide Section 21362.2 (3% @ 50 Full formula) for local safety members. Also enclosed are the following documents: Form CON-12, Certification of Governing Body's Action. 2. Form CON-12A, Certification of Compliance With Government Code Section 7507. 3. Certification of Member Contribution Rate. 4. Form CON-11A, Sample Ordinance. The sample Ordinance is a guide only and is included to allow sufficient time to prepare the Ordinance for a first and final reading. The Resolution of Intention and f accompanying documents should not be held pending final reading of the Ordinance. The valuation for 3% @ 50 is based on a 9% employee contribution. SB400 was silent with regard to the employee contribution for the 3% @ 50 formula. SB528, recently vetoed, was an urgency bill to correct the employees' contribution rate to 9%. CaIPERS will continue to seek urgency legislation to correct this oversight. If the contract amendment is effective prior to the corrective legislation, the affected employees might have a "vested right" to receive benefits under the new formula without paying the 9% employee contributions. Should your agency choose to proceed with the contract amendment and establish an effective date prior to the date the urgency legislation takes effect, the enclosed "Certification of Member Contribution Rate" must be completed and returned. California Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 City of Vernon -2- June-5, 2001 The Contract Amendment Cost Analysis (actuarial valuation) information was Ibased on the most recent annual valuation and is good until the next annual valuation report is sent to your agency. If your agency does not take action to amend its contract and we have mailed the next annual valuation report to your agency, you must contact our office for an updated cost analysis. Disclosure of the cost of this Contract Amendment We recommend that the agency disclose the following costs due to the adoption of this plan amendment: 1) Change in the Present Value of Benefits $ 7,607,236 2) Change in the Unfunded Accrued Liability $ 819,071 3) Change in the employer rate 0.000% Government Code Section 7507 requires that the future annual costs of the proposed contract amendment be made public at a public meeting at least two weeks prior to the adoption of the final Ordinance. The agency is to certify compliance on the enclosed Certification of Compliance with Government Code Section 7507. In summary, the following documents must be returned to this office before we can forward the actual contracts and other final documents necessary to complete the proposed amendment. DO NOT HOLD THESE DOCUMENTS PENDING ADOPTION OF THE FINAL ORDINANCE. ORIGINAL SIGNATURES ARE REQUIRED 1. Resolution of Intention, original or certified copy. 2. Certification of Governing Body's Action (CON-12), original. 3. Certification of Compliance with Government Code Section 7507, (CON-12A), original or certified copy. 4. Certification of Member Contribution Rate, original. If your agency adopts the Resolution of Intention on June 20, 2001, the earliest date the final Ordinance may be adopted is July 10, 2001. There must be a 20 day period between the adoption of the Resolution of Intention and the adoption of the final Ordinance pursuant to Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW. City of Vernon -3- June 5, 2001 The effective date of this amendment may be as early as the day following the effective date of the final Ordinance. 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. If you have any questions regarding this letter or the enclosed material, please do not hesitate to contact me at (916) 326-3616. Sincerely, f3oun� polaaen Barbara Patterson Employer Representative Public Agency Contract Services Enclosures cc: Glendale Regional Office ' * CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: JUNE 30,1999 SAFETY PLAN FOR CITY OF VERNON EMPLOYER NUMBER 209 Benefit Description: 21362.2, 3% @ 50 Full Formula - Fire Only 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. The Ca1PERS Board adopted a resolution, affecting cost estimates delivered after 21 Feb 2001, that provides a one-time increase in the actuarial value of assets to 95% of market value for the calculation of the employer rate when a rate plan adopts a contract amendment that increases the present value of benefits of active employee members by not less than 50 % of the increase in actuarial value of assets. This resolution applies only to plans that (1) file a resolution of intention to amend their plan with CalPERS before June 30, 2001 and that (2) amend their contract with an effective date on or before June 30, 2002. If a plan amends more than once during the window period, only the first qualifying amendment will result in the asset increase to 95% of market value. Therefore, if your plan previously adopted an amendment which increased the actuarial value of assets to 95% of market value, no increase in assets will be shown in the tables below. If your plan's actuarial value of assets was not previously increased to 95% of market value, the tables below show the effect on its assets due to this one-time change in actuarial method (i.e., the 95% market value of assets). Change Due to Post -Amendment Pre -Amendment Plan Amendment Post Method & Method Change Change Total Present Value of Benefits $ 112,140,202 $ 4,038,583 $ 116,178,785 Actuarial Value of Plan Assets 104,068,665 4,210,978 108,279,643 Present Value of Future Employer and Employee Contributions $ 8,071,537 1 $ (172,395) $ 7,899,142 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 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 plan amendments and investment or demographic gains or losses can change a plan's condition from year to March 2, 2001 Pagel of 3 11:48 AM CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: JUNE 30,1999 SAFETY PLAN FOR CITY OF VERNON EMPLOYER NUMBER 209 Benefit Description: 21362.2, 3% @ 50 Full Formula - Fire Only 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, 1999 due to the plan amendment are shown in the table below. Change Due to Post -Amendment Pre -Amendment Plan Amendment Post Method Change & Method Change Accrued Liability $ 90,341,804 $ 2,504,882 $ 92,846,686 Assets 104,068,665 4,210,978 108,279,643 Unfunded Liability $ (13,726,861) $ (1,706,096) $ (15,432,957) Funded Ratio 115.2% 116.6% While the tables above give the changes in the "cost" 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. Ca1PERS policy is to implement rate changes due to plan amendments immediately on the effective date of the change in plan benefits. 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, special rules have to be applied 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. If thereisstill excess assets (i.e. if the plan is still ahead of schedule) after the plan amendment, the remaining excess assets were spread over the greater of 5 years or the number of years for which the excess assets would keep the employer rate equal to zero. If the amendment uses up all excess assets and creates an unfunded liability (i.e. from being ahead of schedule to behind schedule), the post -amendment unfunded liability was amortized over 20 years. The table below shows the immediate short-term change in your plan's employer contribution rate due to the plan amendment. Rate Component Pre -Amendment Change Due to Plan Amendment & Method Change Post -Amendment Post Method Change Normal Cost 12.266% 2.845% 15.111% Unfunded/Excess Asset Cost (12.266)% (2.845)% (15.111)% 1959 Survivor 1.994% 0.0000/0 1.994% Total Employer Rate 1.994% (0.000)% 1.994% Amortization Period 18 Years 16 Years March 2, 2001 Page 2 of 3 11:48 AM * CONTRACT AMENDMENT COST ANALYSIS - VALUATION BASIS: NNE 30,1999 SAFETY PLAN FOR CITY OF VERNON EMPLOYER NUMBER 209 Benefit Description: 21362.2, 3% @ 50 Full Formula - Fire Only Note that the change in normal cost in the table above may be much more indicative of the long term change in the employer contribution rate due to the plan amendment. The plan's unfunded liability/excess asset cost 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. 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 should 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 Please note that the cost analysis provided in this document may not be relied upon once the Ca1PERS actuarial staff have completed the next annual valuation, that is, the annual valuation as of June 30, 2000. If you have not taken action to amend your contract, and we have already mailed the June 30, 2000 annual valuation report, you must contact our office for an updated cost analysis, based on the new annual valuation. This actuarial valuation for this proposed plan amendment is based on the participant, benefits, and asset data used in the June 30, 1999 annual valuation, with the benefits modified if necessary to reflect what is currently provided under your contract with Ca1PERS, and further modified to reflect the proposed plan amendment. Descriptions of the actuarial methodologies, actuarial assumptions, and plan benefit provisions may be found in the appendices of the June 30, 1999 annual report. Please note that the results shown here are subject to change if any of the data or plan provisions changes from what was used in this study. It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the Ca1PERS Board of Administration according to provisions set forth in the California Public Employees' Retirement Law. Kung-pei Hwang, A.S.A., M.A.A.A. Senior Pension Actuary, Ca1PERS Fin Process Ids: Annual-51435 Base-55822 Proposal-55823 March 2, 2001 Page 3 of 3 11:48 AM CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro -Tern WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER FAX (323) 581-7924 TELEPHONE (323) 583-8811 FAX: (323) 583-5236 June 13, 2001 City Council City of Vernon Honorable Members: The City is seeking to amend the CalPERS Retirement Plan to include benefits for Section 21362.2 (3% Q 50 Full Formula) for Police and Fire (safety personnel). The City needs to adopt a Resolution of Intention and file it with CalPERS by June 30, 2001 to amend the contract with an effective date on or before June 30, 2002. This has been reviewed by our Legal Consultant and it is hereby recommended that a Resolution of Intention be adopted to amend the retirement plan with CalPERS Very truly yours, Bruce V. Malkenhorst City Administrator/City Clerk BVM:ng 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 FAX (323) 581-7924 May 31, 2001 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 Mr. Bruce V. Malkenhorst City Administrator City Of Vernon 4305 Santa Fe Avenue Vernon, California 90058 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 STEVEN E. PARKER Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 Re: 3% @ 50 For Safety; City of Vernon Request to CalPERS to Amend Contract Dear Bruce: The attached form needs your signature in order to receive the necessary documents from CalPERS to amend the City's contract with CalPERS to provide safety employees the 3% @ 50 additional retirement benefits. CalPERS will provide the City with a one-time increase in the actuarial value of its plan assets to 95% of market value for the calculation of the employer rate when the City adopts this contract amendment. In order to receive the added 5% to its plan assets, the City needs to adopt a Resolution of Intention and file it with CalPERS BEFORE June 30, 2001 and amend its contract with CalPERS with an effective date on or before June 30, 2002. The City has received two cost analyses from CalPERS concerning the proposed contract amendment for the safety department. The Mr. Bruce V. Malkenhorst May 31, 2001 Page 2 first is dated February 23, 2001 and applies to the entire safety pool of employees -Fire and Police. This analysis is based upon actuary data as of June 30, 1999. The cost of the plan amendment is the change shown in the present value of plan benefits. This cost is $7,607,236 for both Fire and Police. This contract amendment will cause the City to exhaust its excess plan assets in 10 years as opposed to the current schedule of 18 years. The second CalPERS cost estimate is dated March 2, 2001, and merely splits the safety department contract amendment analysis between the Fire and Police Departments. The combined cost analysis above represents the cost of extending these pension benefits to both Police and Fire. The true cost of this contract amendment will be seen in the coming years, as the City's current plan assets are revalued. The equity markets declined significantly from last year through the current date. When these new values are plugged into the actuarial calculations, there will be less plan assets to satisfy this greater level of pension benefits. The City's employer's contribution rate will increase from its current 1.994% level. Please note the process to implement the contract change with CalPERS takes 4 to 6 weeks. As soon as the City receives the package, I will work with the appropriate department officers to set the process in motion, upon your authorization. I look forward to discussing this with you at your earliest convenience. Sincerely, �L q�J,� Eric Fresch Legal Counsel EF: j 1 Enclosures cc: Gloria J. Orosco Joan Francone Eddie Olivo