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HomeMy WebLinkAboutReso 1986-12818 RESOLUTION NO. 12818 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF CHULA VISTA The City Council of the City of Chula Vista does hereby resolve as follows: 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 procedure 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 for the merger of the Montgomery Fire Protection District into the contract of the City of Chula Vista pursuant to Government Code Sections 20567.1 and 20567.8 effective January 1, 1986, for local miscellaneous and local safety members. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby given notice of intention to approve an amendment to the contract between the City of Chula Vista and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto as Exhibit "A" and incorporated herein by reference as if set forth in full. presented by Approved as to form by ~. %R. ASmUS, Assistant clay ~-_ ~nomas J..,~afron, Manager 2186a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 12th day of November 19 86 , by the following vote, to-wit: AYES: Councilmembers Cox, Mcgandliss, Moore NAYES: Counci 1 members None ABSTAIN: Councilmembers None ABSENT: Councilmembers Campbell, Malcolm City of Chula Vista City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION NO. 12818 ,and that the some has not been amendedor repealed. DATED City Clerk CI'IY OF CHUBS,, VISTA CC- 660 CI]Y OF CHULA VISTA No te: This resolution was superceded by Resolution #13016 approved and adopted on May 5, 1987. Ordinance 2174 which went with this resolution was filed prior to second reading and was firs~ read as Ordinance 2203 on May 5, 1987 and adopted on May 26, 1987. Public Employees' Retiremen~ System Field & Contracts Services Division Contracts Office, Section 900 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3608 320-3000 (Telecommunications Device for the Deaf) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting by the City Council of the City of Chula Vista (governing body) (public agency) at least two weeks prior to the adoption of the final Ordinance/Resolution. Date: November 13, 1986 /~oo~al~s. ign~ai~re Mayor official title PERS~CON-12A (Rev. 10/86) C0601 Public Employees' Retirement System Field & Contract Services Division Contracts Office, Section 900 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3608 320-3000 (Telecommunications Device for the Deaf) CERTiFICA'I'ION OF GOVERNING BODY' S ACTION I hereby certil'y that the foregoing is a true and correct copy of a Resolution adopted by the City Council , (Governing Body) of the City of Chula Vista , (Name of Public Agency) on November 12, 1986 , appearing at Page , (Date) Volumne 27 of the (Minutes) (Official Records) of the City of Chula Vista (Governing Body) c~ O-Em[ or Secretary of the Board FCSD-CON- 12 C06UO (Rev. 10/86) ~ AMEND~NT TO CONTRACT ~ ~ BETWEEN THE ~\A BOARD OF ADMINISTRATION ~ ~ ~- OF THE ~,~ PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND CITY COUNCIL OF THE CITY OF CHULA VISTA The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, herein- after referred to as Public Agency, having entered into a contract effective October 1, 1948, and witnessed August 31, 1948, and as amended effective October 1, 1951, November 1, 1955, January 1, 1960, January 1, 1961, September 1, 1967, September 28, 1973, October 4, 1973, October 8, 1976, April 16, 1981, January 8, 1982 and September 28, 1984, 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 September 28, 1984, and hereby replaced by the following paragraphs numbered 1 through 13 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 60 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 October 1, 1948 making its employees as hereinafter provided, members of said System subject to ail 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 contrac- ting 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); (1). Local Police Officers shall include individuals defined by Section 20020 of the Government Code prior to its amendment at the 1975-76 Regular Legislative Session, effective January 1, 1976, employed by Public Agency prior to such amendment; 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. Effective October 4, 1973 and prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 supersedes this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. 6. This contract shall be the continuation of the benefits of the contract of the Montgomery Fire Protection District, hereinafter referred to as "Former Agency", pursuant to Section 20567.1 of the Government Code, Former Agency having ceased to exist and been succeeded by Pubiic Agency on January 1, 1986. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under the Former Agency's contract with respect to the Former Agency's employees. a. Service performed for the former agency prior to January 1, 1986 shall be subject to the terms and conditions of the former agency's contract as it was in effect December 31, 1985. Service performed on and after January 1, ~986 shall be subject to the terms and conditions of this contract. For purposes of computing retirement allowances, separate calculations shall be made for service performed under each contract, pursuant to Government Code Section 20567.8. 7. The fraction of final compensation to be provided for each year of credited prior and current service ~a a local miscellaneous member shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 Full). PLEASE DO NOT SIGN "EXHIBIT ONLY" 8. The fraction 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 21252.01 of said Retirement Law (2% at age 50 Full). 9. The following additional provisions of the Public Employees' Retirement Lsw, which apply only upon election of a contracting agency, shall apply to the Public Agency and its employees: a. Sections 21380 - 21387 (1959 Survivor Program) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits). b. Section 20862.8 (Unused Sick Leave Credit). c. Section 20020 ("Local Police Officer" shall include persons assigned to identification and communication duties in the Police Department who were not classified as local safety members and who were in such employment on or prior to August 4, 1972, and who elected to be local safety members on or before September 28, 1973). d. Section 21222.85 (Special 3% - 15% Increase) for or on behalf of those local miscellaneous and local safety members who retired or died prior to January 1, 1974. e. Sections 21263, 21263.1 and 21263.3 (Post-Retirement Survivor Ailowance) for local safety members only. f. Section 20500 (Cost Sharing) Public Agency and its employees have agreed to share the cost of the following benefit applic@ble to Section 21252.01. From and after September 28, 1984 the local sa£ety employees of Public Agency shalI be assessed an additional 0.341% of their compensation - for a total contribution rate of 9.341% pursuant to Government Code Section 20500. g. Section 20500 (Cost Sharing) Public Agency and its employees have agreed to remove the cost sharing of the benefit applicable to Section 21252.01. From and after July 1, 1985 the local safety employees of Public Agency shall be assessed an additional 0.000% of their compen- sation for a total contribution rste of 9.000% pursuant to Government Code Section 20500. PLEASE DO NO ' SIGN "EXHIBIT ONLY" 10. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on October 8, 1976. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 11. Public Agency shali contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 0.0039 percent until June 30, 2000 on account of the liability for prior service benefits. (Subject to annual change.) (2) 8.937 percent until June 30, 2011 on account of the liability for current service benefits. (Subject to annual change.) (3) 0.082 percent until June 30, 1996 on account of the liability for the benefits provided under Section 21222.85 of said Retirement Law. (Subject to ~nnual change.) b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 0.492 percent until June 30, 2000 on account of the liability for prior service benefits. (Subject to annual change.) (2) 25.173 percent until June 30, 2011 on account of the liability for current service benefits. (Subject to annual change.) (3) 0.018 percent until June 30, 2011. on account of the liability for the 1959 Survivor Program. (Subject to annual change.) (4) 0.191 percent until June 30, 1996 on account of the liability for the benefits provided under Section 21222.86 of said Retirement Law. (Subject to annual change.) c. A reasonable amount, as fixed by the Board, payable in one in- stallment 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 in- stallment 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. 12. 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 @ccount of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 13. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty 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 shali be effective on the day of , 19 CITY COUNCIL PUBLIC EMPLOYEES' RETIREME~STEM OF THE CITY OF CHULA VISTA Presiding Off~.~ ASSISTA~,~ECUTIVE OFFICER BENEFI~T~VIC~S Witness Atte~ Clerk PERS-CON-702 (AMENDMENT) (Rev. 9/86) - PERS Field and Contracts Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3608 Reply to Section 900 326-3000 (Telecommunications Field & Contracts Device for the Deaf) Services Division November 3, 1986 Employer Code #0195 Mr. E. R. Asmus Assistant City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 Dear Mr. Asmus: Enclosed are two copies of the Resolution of Intention (Form 122) to amend your agency's contract to provide for the merger of the Montgomery Fire Protection District into the contract of the City of Chula Vista pursuant to Government Code Sections 20567.1~and 20567.8 effective January 1, 1986, for local miscellaneous and local safety members. Also enclosed are the following required forms: 1. Form CON-12, Certification of Governing Body's Action. 2. Form CON-12A, Certification of Compliance With Government Code Section 7507. 3. Agreement Authorizing a merger of the contracts of the Montgomery Fire Protection District and the City of Chula Vista. 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 accompanying documents should not be held pending final readinF of the Ordinance. Government Code Section 7507 requires your governing body to make public the cost implications of the proposed contract amendment at a public meeting at least two weeks prior to the adoption of the final Ordinance. When for- warding the executed Resolution of Intention documents, please include the Form CON-12A, Certification of Compliance With Government Code Section 7507. California Public Employees' Retirement System Lincoln Plaza-400 P Street-Sacramento, CA The facts that you must make public are: Local Miscellaneous Members Although this amendment creates no additional miscellaneous employer costs, Government Code Section 7507 requires your governing body to make public the change in benefits at a public meeting at least two weeks prior to the adoption of your final Ordinance. The facts that you must make public are: Local Safety Members The rate for your agency without the optional benefit is 26.621%. Your new rate is 25.874%, thus the change in cost of the optional benefit is 0.747~, (26.621% - 25.874%). Apply this percentage to the most current payroll figures for the next 12 months to compute the dollar amount. This percentage ~,~~is the projected actuarial rate to the year 2011, but, as your contract reads, the employer rate is subject to change with future amendments and/or experience and other factors. These are the cost figures which must be made public at a public meeting at least two weeks prior to the adoption of your final Ordinance. As soon as we receive one executed copy of the Resolution of Intention, Certi- fication of Governing Body's Action (Form CON-12), Certification of Compliance With Government Code Section 7507 (Form CON-12A), and any other required forms, we will forward additional copies of the amendment and the documents necessary to complete your governing body's final action. That final action will require an affirmative vote of the majority of your governing body and must be deferred for at least twenty days after the adoption of the ResoIution of Intention. In summary, the following documents must be returned to this office before we can forward final documents to you. ORIGINAL SIGNATURES ARE REQUIRED ON ALL OF THESE DOCUMENTS ~ DO NOT HOLD THESE DOCUMENTS PENDING THE FINAL READING OF YOUR ORDINANCE. 1. One executed copy of the Resolution of Intention, original or certified copy. 2. Certification of Governing Body's Action (Form CON-12), original or certified copy. 3. Certification of Compliance With Government Code Section 7507 (Form CON-12A), original or certified copy. 4. Two executed copies of the Agreement to Merge. According to the "Anticipated Schedule of Agency Actions", your agency plans to adopt its Resolution of Intention on November 12, 1986. If this date is met, the earliest date your agency can have the final reading of Ordinance is November 22,\1986. This meets the 20 day waiting period required by Government Co~e S~ction 20460. THERE CAN BE NO EXCEPTIONS TO THIS LAW. The effective date of this amendment cannot be earlier than the beginning of a payroll period following the effective date of the final action of your governing body. If you have any questions regarding this letter or the enclosed material, please do not hesitate to contact me at (916) 326-3615. Yours truly, Lois Hii1, Retirement Specialist Contracts Office Field & Contract Services Division LH:de Enclosures cc: San Diego Field Office FCSD-CON-32 (AMENDMENT) C0402A (Rev. 11/85)