HomeMy WebLinkAboutCalifornia Public Employees Retirement System - CalPERS - PERS - 2008-04-21Huntington Beach Independent has been adjudged a newspaper of general
circulation in Huntington Beach and Orange County by Decree of the Superior
Court of Orange County, State of California, under date of Aug. 24, 1994, case
A50479.
PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
I am the Citizen of the United States and a
resident of the County aforesaid; I am over
the age of eighteen years, and not a party
to or interested in the below entitled matter.
I am a principal clerk of the HUNTINGTON
BEACH INDEPENDENT, a newspaper of
general circulation, printed and published in
the City of Huntington Beach, County of
Orange, State of California, and the
attached Notice is a true and complete copy
as was printed and published on the
following date(s):
May 15, 2008
declare, under penalty of perjury, that the
foregoing is true and correct.
Executed on May 15, 2008
at Huntington Beach, California
Signatidre
ORDINANCE NO.3802
AN ORDINANCE OF THE CITY OF HUNTINGTON
BEACH AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH AND THE BOARD OF,
ADMINISTRATION OF THE CALIFORNIA PUBLIC EM-
PLOYEES' RETIREMENT SYSTEM
The City Council of the City of Huntington Beach
does hereby ordain as follows:
SECTION 1. That an amendment to the contract'
between the City Council of the City of Huntington
Beach and the Board of Administration, California
Public Employees' Retirement System is hereby
authorized, a copy of said amendment being
attached hereto, marked EXHIBIT "A", and by such
reference made a part hereof as though herein,
set out in full.
SECTION 2. That the Mayor of the City Council of
the City of Huntington Beach is hereby authorized,
empowered, and directed to execute said
amendment for, and on behalf of the City.
SECTION 3. This ordinance shall become effective
30 days after the date of its adoption, and prior
to the expiration of 15 days from the passage
thereof, shall be published at least once in the
Huntington Beach Independent, a newspaper of
general circulation, published and circulated in the
City of Huntington Beach; and thenceforth and
thereafter the same shall be in full force and
effect.
PASSED AND ADOPTED by the City Council of the
City of Huntington Beach at a regular meeting
thereof held on the 5th day of May, 2008.
ATTEST:
s/s Joan L. Flynn /s/ Debbie Cook
City Clerk Mayor
REVIEWED AND APPROVED: INITIATED AND
s/s Paul Emery - APPROVED:
City Administrator s/s Michelle Carr
Director of Human Resources
APPROVED AS TO FORM:
/s/ Jennifer McGrath
City Attorney
Published Huntington Beach Independent May 15,
2008 053-673
Council/Agency Meeting Held: 0 0
Deferred/Continued to: /07—� S 0.
`gAp oved ❑ Conditionally App oved ❑ Denied
. Cit lerk' Signa e
Council Meeting Date: 04/21/08
Department ID Number: HR 08-03
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL -MEMBERS
SUBMITTED BY: PAUL EMERY, INTERIM CITY ADIIfSTRATOR
PREPARED BY: MICHELE CARR, DI
SUBJECT: INTRODUCTION AND FRSTjREADING OF AN ORDINANCE TO APPROVE
AN AMENDMENT T CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION F THE CALIFORNIA PUBLIC. EMPLOYEES'
RETIREMENT SYST (CaIPERS) AND THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
The City and representatives of Municipal Employees' Association (MEA), Management Employees'
Organization (MEO) and Police Officers' Association (POA) met and conferred regarding the
implementation of enhanced retirement benefits — CaIPERS 2.5% 55 Formula. Appropriate
modifications to Memorandums of Understanding have been approved by Council.
Funding Source:
The cost to implement the retirement plan enhancement will be borne by the affected employees in all
groups; MEA, MEO, POA miscellaneous (non -safety) members and Non -Associated (NA) employees.
Recommended Action:
Motion to:
1. Adopt Ordinance No. 3802 , an ordinance authorizing 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 Huntington Beach.
2. Authorize the City Clerk to execute the Certification of Employee Election (PERS-CON-15).
3. Authorize the City Clerk to execute the Certification of Final Action of Governing Body (PERS-
CON-5).
Alternative Action(s):
Do not adopt Ordinance No. 3802 an ordinance authorizing 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 Huntington Beach.
Do not authorize the City Clerk to execute the Certification of Employee Election (PERS-CON-15).
Do not authorize the City Clerk to execute the Certification of Final Action of Governing Body (PERS-
CON-5).
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 04/21/08 DEPARTMENT ID NUMBER: 08-03
Analysis:
Representatives of MEA, MEO and POA have agreed to the additional. terms and conditions as
outlined in the current MOU(s) or approved Side Letter Agreement(s) previously approved by City
Council. The current NA Resolution (for non -represented employees), reflects the appropriate terms
and conditions associated with the proposed benefit enhancement and has been approved by City
Council.
The City and the Associations have agreed to implement the CalPERS 2.5% @ 55 Miscellaneous
Retirement Plan Formula, subject to Council approval and attainment of the required majority
approval vote in accordance with CalPERS requirements. The Associations and the City agreed that
the eligible Association members would absorb all of the additional costs of the enhanced plan benefit
from the implementation date through the end of the contract terms.
For POA non-safety/miscellaneous members, in the event the additional employee costs drop below
2.25%, the Association members agree to absorb 2.25% of the employee share of the additional
costs for the enhanced retirement plan benefit formula.
Based upon the CalPERS Contract Amendment Cost Analysis, the overall percentage change to the
City's contribution rate, which will be borne by the affected employees' is 3.285%. This reflects a
change in the total employer rate of 2.285% + 1 % - increase in the contribution rate of reportable
earnings (currently 7% to 8% post -amendment).
Government Code Section 7507 requires that the future annual costs of the proposed contract
amendment be made public at a City Council meeting at least two weeks prior to the adoption of the
final ordinance. These costs are as follows:
Cost Disclosure
Change in the Present Value of Benefits $13,025,047
Change in Accrued Liability $ 6,155,964
Change in Total Employer Rate 2.285%
The local miscellaneous member contribution rate will be 8% of reportable earnings, as. of the
effective date of the amendment to the contract.
Strategic Plan Goal:
Provide quality public services with the highest professional standards to meet community
expectations and needs, assuring that the city is sufficiently staffed and equipped overall.
Fully understand the financial implications of financial decisions before they are made, and recognize
and disclose fiscal impacts of the pension crisis.
Environmental Status:
NA
-2- 4/14/2008 4:44 PM
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 04/21/08 DEPARTMENT ID NUMBER: 08-03
Attachment(s):
City Clerk's
.•- Number No. Description
1. 3 ORDINANCE No. 3802 AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND
THE CITY COUNCIL CITY OF HUNTINGTON BEACH (Includes
Exhibit A
EXHIBIT A —AMENDMENT TO CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF
HUNTINGTON BEACH Included in Attachment #1
2. CERTIFICATION OF EMPLOYEE ELECTION PERS—CON-15
3. CERTIFICATION OF FINAL ACTION OF GOVERNING BODY (PERS-
CON-5
-3- 4/14/2008 4:44 PM
ATTACHMENT #1
ORDINANCE NO. 3802
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
The City Council of the City of Huntington Beach does hereby ordain as follows:
SECTION 1. That an amendment to the contract between the City Council of the City of
Huntington Beach and the Board of Administration, California. Public Employees' Retirement
System is hereby authorized, a copy of said amendment being attached hereto, marked EXHIBIT
"A", and by such reference made a part hereof as though herein set out in full.
SECTION 2. That the Mayor of the City Council of the City of Huntington Beach is
hereby authorized, empowered, and directed to execute said amendment for, and on behalf of the
City.
SECTION 3. This ordinance shall become effective 30 days after the date of its
adoption, and prior to the expiration of 15 days from the passage thereof, shall be published at
least once in the Huntington Beach Independent, a newspaper of general circulation, published
and circulated in the City of Huntington Beach; and thenceforth and thereafter the same shall be
in full force and effect.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 05th day of May , 2008.
ATTEST:
i lerk
REV
Administrator
OVED:
wil ffl- N -.zwl
(_ -_ EXHIBIT A
CAPERS
California
Public Employees' Retirement System
C
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
.and the
City Council
City of Huntington Beach
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
October 1, 1945, and witnessed October 27, 1945, and as amended effective January
1, 1950, March 1, 1952, November 1, 1957, March 1, 1958, October 1, 1961, January 1,
1971, January 12, 1974, April 18, 1975, February 21, 1976, August 7, 1976, September
17, 1977, September 30, 1978, June 6, 1981, March 18, 1982, February 24, 1983,
December 4, 1986, March 18, 1988, November 4, 1999, April 20, 2000, June 30, 2001,
October 5, 2001, February 6, 2003, May 8, 2003 and March 11, 2006 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 March 11, 2006, 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 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 October 1, 1945 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);
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. Ocean Beach Lifeguards (included as local safety members);
d. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
a. CROSSING GUARDS, EMPLOYEES IN STUDENT DESIGNATED
POSISTIONS AND SENIOR OUTREACH ASSISTANTS HIRED
ON AND AFTER MARCH 18, 1982; AND
b. RESERVE FIREFIGHTERS HIRED ON AND AFTER DECEMBER
4, 1986.
5. 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 the effective date of this
amendment to contract 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 miscellaneous member in
employment on or after the effective date of this amendment to contract
shall be determined in accordance with Section 21354.4 of said
Retirement Law (2.5% 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 safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions.
a. Section 21574 (Fourth Level of 1959 Survivor Benefits).
b. Section 20421 ("Local Safety Member" shall include ocean beach
lifeguards of a city as described in Government Code Section
20421).
C. Sections 21624, 21626 and 21628 (Post -Retirement Survivor
Allowance) for local fire members only.
d. Section 20020.1 ("Local Police Officer' shall include employees of
a police department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be
local safety members within six months of April 18, 1975).
Legislation repealed said Section effective January 1, 1985.
e. Section 21024 (Military Service Credit as Public Service).
f. Section 20042 (One -Year Final Compensation).
g. Section 20903 (Two Years Additional Service Credit).
h. Section 21037 (Cancellation of Payment for Optional 'Service Credit
Upon Retirement for Industrial Disability) for local safety members
only.
Section 21548 (Pre -Retirement Option 2W Death Benefit).
9. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
April 18, 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.
10. 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.
11 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 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 miscellaneous members and local safety 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
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 account 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 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 A) E 08
BOARD OF ADMINISTRATION CITY COUNICL
PUBLIC EMPLOYEES RETIREMENT SYSTEM CITY OF HUNTINGTON BEACH
BY BY kl� ZL&La—
LORI MCGARTLAND CHIEF PRESIDING OFFICER Mayor
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES RETIREMENT SYSTEM "L�
Witness Date
Attest
i
er
AMENDMENT ER# 0097
aFac rnr i 700A iQ� irnnr)
Ord. No. 3802
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:
CITY OF HUNTINGTON BEACH
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on April 21, 2008, and was again read to said City Council at a
regular meeting thereof held on May 5, 2008, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Bohr, Coerper, Green, Carchio
NOES: Hansen, Hardy, Cook
ABSENT: None
ABSTAIN: None
1, Joan L. Flynn, CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council, do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on May 15, 2008.
In accordance with the City Charter of said City
Joan L. Flynn, City Clerk
Senior Deputv Citv Clerk
CoClerk and ex-officio Oferk
of the City Council of the City
of Huntington Beach, California
ATTACHMENT #2
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942700
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF EMPLOYEE ELECTION
I hereby certify that the following employees of the City of Huntington Beach have
expressed their approval or disapproval of said agency's intention to amend its contract
to provide Section 21354.4 (2.5% @ 55 Full formula) on the basis described in the
Resolution of Intention adopted by said agency's governing body on
March 17 , 2008 , in such manner as to permit each employee
to separately and secretly express his choice and that the outcome of such election was
as follows:
Local Miscellaneous
Members as defined in
Govt. Code Section
20383
(Amendment)
PERS-CON-15 (Rev. 9/03)
Number of
employees
eligible to vote
744
Number of votes
approving said
participation
583
kwi l 10. 2008
Date
Number of votes
disapproving said
participation
35
ATTACHMENT #3
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
1 hereby certify that the City Council of the
(governing body)
City of Huntington Beach
(public agency)
adopted on May 05 2008 , by an affirmative vote of a majority
(date)
of the members of said Governing Body,
Ordinance
(Ordinance or Resolution)
No. 3802 approving the attached contractual agreement between the
Governing Body of said Agency and the Board of Administration of the California Public
Employees' Retirement System, a certified copy of said Ordinance
(Ordinance or Resolution)
in the form furnished by said Board of Administration being attached hereto.
qCle?St�ccrel6i;
City Clerk
Title
Date May 07, 2008
PERS-CON-5 (Rev. 1/96)
RCA ROUTING SHEET
INITIATING DEPARTMENT:
HUMAN RESOURCES
SUBJECT:
INTRODUCTION AND FIRST READING OF AN ORDINANCE
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 HUNTINGTON
BEACH
COUNCIL MEETING DATE:
APRIL 21, 2008
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Attached
Not Applicable
❑
Resolution (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Tract Map, Location Map and/or other Exhibits
Attached
❑
Not Applicable
Contract/Agreement (w/exhibits if applicable)
Attached
(Signed in full by the City Attorney)
Not Applicable
❑
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000)
Attached
❑
Not Applicable
Bonds (If applicable)
NotAttached
icable
Staff Report (If applicable)
Attached
®❑
t Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
F-XF'LAN<j11ON FOR MISSING ATTACHMENTS
REVIEWED
RETURNED
FO RDED
Administrative Staff
( )
( )
Deputy City Administrator (Initial)
)
City Administrator Initial
City Clerk
( )
EXPLANATION•- RETURN OF
(Below Space For City Clerk's Use Only)
Kith MULIIVI. 1V11%oPICLC %. ARR
Page 1 of 1
Esparza, Patty
From: Henderson, Sandy
Sent: Tuesday, May 13, 2008 5:01 PM
To: Esparza, Patty
Subject: FW: CalPERS Contract
Please see below; thanks!
Savvd� FteKJersov,
(714) 960-8828
From: Carr, Michele
Sent: Tuesday, May 13, 2008 5:00 PM
To: Henderson, Sandy
Subject: CaIPERS Contract
The Adoption Date is: 05/05/08
The Effective Date is: 06/14/08
Per Danielle Brooks at CalPERS.
Please have the City Clerk's officeprepareeverything and send us the ORIGINALS for submittal to PERS.
Thank you.
M
Michele S. Carr
Director of Human Resources
City of Huntington Beach
5/13/2008