CC - Item 6C - Second Reading of Ordinance 872ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER &L.69..
DATE: MARCH 24, 2009
SUBJECT: SECOND READING OF ORDINANCE 872 TO AMEND CONTRACT
WITH CALPERS TO EXCLUDE ADMINISTRATIVE INTERNS FROM
CALPERS MEMBERSHIP
The City Council approved the first reading of Ordinance 872 (Attachment A) on March
10, 2009. The original staff report (Attachment B) and corresponding attachments have
been included with this report.
Staff Recommendation
Staff recommends that the City Council adopt Ordinance 872 authorizing the
amendment of the Contract with CalPERS.
LEGAL REVIEW
The City Attorney has reviewed the proposed Ordinance.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process and public
notices have been published in the San Gabriel Valley Tribune as required..
Submitted by:
Matthew E. Hawkesworth
Assistant City Manager - Internal Business Units
Attachment: A - Ordinance 872
B - Staff Report from March 10, 2009
APPROVED FOR CITY COUNCIL AGENDA: V* ITEM NUMBER:
ATTACHMENT A
ORDINANCE NO. 872
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the City of Rosemead requested a determination letter from the
Board of Administration of the California Public Employees' Retirement System to
exclude the Administrative Intern position from membership; and
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System approved the request to exclude the Administrative Intern position on
December 10, 2008; and
WHEREAS, the City Council of the City of Rosemead adopted the Resolution of
Intention to amend the contract with the Board of Administration of the California Public
Employees' Retirement System on February 11, 2009.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. That an amendment to the contract between the City Council of the
City of Rosemead, California and the Board of Administration, California Public
Employees' Retirement System is hereby authorized, a copy of said amendment being
attached hereto, marked Exhibit and by such reference made a part hereof as though
herein set out in full.
Section 2. The Mayor of the City Council is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of said Agency.
Section 3. This Ordinance shall take effect 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 San Gabriel Valley Tribune, a newspaper of general
circulation, published and circulated in the County of Los Angeles and thenceforth and
thereafter the same shall be in full force and effect.
PASSED AND ADOPTED this 24th day of March, 2009, by the following vote:
AYES:
NOES:
ABSTAIN
ABSENT:
MAYOR
ATTEST:
GLORIA MOLLEDA
City Clerk
APPROVED AS TO FORM:
City Attorney
ATTACHMENT B
•
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER 044Z-9--%
DATE: MARCH 10, 2009
SUBJECT: ADOPTION OF ORDINANCE TO AMEND CONTRACT WITH CALIPERS
TO EXCLUDE ADMINISTRATIVE INTERNS FROM CALIPERS
MEMBERSHIP
SUMMARY
On February 10, 2009 the City Council approved the Resolution of Intention to amend
the City's contract with CalPERS. The next step in the process of amending the
contract is the adoption of an ordinance requesting a contract amendment.
• Staff Recommendation
Staff recommends that the City Council adopt Ordinance 872 authorizing the
amendment of the Contract with CaIPERS(Attachment A).
DISCUSSION
City staff has been evaluating ways to improve our intern program to provide additional
experience and learning opportunities to all the participants. One obstacle that staff has
faced is the limited number of hours that interns can currently work while employed by
the City. Our current contract with CalPERS requires that any team member who works
more than 1,000 hours in a fiscal year to be enrolled in CalPERS for membership.
Since enrollment in CaIPERS increases the City's overhead costs by roughly 35%, we
have worked diligently to ensure this does not happen.
In discussing options with CalPERS staff, it was determined that due to the nature of the
intern position, we could potentially exempt them from CaIPERS membership. City staff
sent a Request for Determination letter (Attachment B) to CaIPERS on October 9, 2008
in order to seek formal approval from CalPERS for the exemption. An approval letter
(Attachment C) was received on December 10, 2008 from CalPERS instructing staff
that a contract amendment could be made to exempt interns from membership.
In order to amend the CalPERS contract, the City was first required to adopt a
Resolution of Intention (Attachment D) to approve an amendment to the contract. The
Resolution of Intention was approved on February 10, 2009. The second step is to
• adopt a City ordinance regarding the contract amendment. The ordinance could not be
APPROVED FOR CITY COUNCIL AGENDA: 0 ITEM NUMBER:
City Council Meeting
.March 2009
• Page 2 of 2
approved for at least twenty days following the adoption of the Resolution of Intention;
therefore has brought forth the resolution at this time.
LEGAL REVIEW
The City Attorney has reviewed the proposed Ordinance.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process and public
notices have been published in the San Gabriel Valley Tribune as required..
Submitted by:
r
Matthew E. Hawkesworth
Assistant City Manager - Internal Business Units
Attachment: A - Ordinance 872
B - Letter of Determination
C - CaIPERS Letter of Approval
• D - Resolution of Intention
is
ATTACHMENT A
• ORDINANCE NO. 872
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the City of Rosemead requested a determination letter from the
Board of Administration of the California Public Employees' Retirement System to
exclude the Administrative Intern position from membership; and
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System approved the request to exclude the Administrative Intern position on
December 10, 2008; and
WHEREAS, the City Council of the City of Rosemead adopted the Resolution of
Intention to amend the contract with the Board of Administration of the California Public
Employees' Retirement System on February 11, 2009.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. That an amendment to the contract between the City Council of the
City of Rosemead, California and the Board of Administration, California Public
Employees' Retirement System is hereby authorized, a copy of said amendment being
attached hereto, marked Exhibit and by such reference made a part hereof as though
herein set out in full.
Section 2. The Mayor of the City Council is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of said Agency.
Section 3. This Ordinance shall take effect 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 San Gabriel Valley Tribune, a newspaper of general
circulation, published and circulated in the County of Los Angeles and thenceforth and
thereafter the same shall be in full force and effect.
•
I.
0 PASSED AND ADOPTED this 10th day of March, 2009, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
JOHN TRAN, MAYOR
ATTEST:
GLORIA MOLLEDA
City Clerk
is APPROVED AS TO FORM:
BONIFACIO BONNY GARCIA
City Attorney
0
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MAYOR;
JOHN T RAN
PRO TOM
MAYO
i
R
JOHN NUNEZ
COUNCIL MEMBERS:
MARGARETCLARK
POLLY LOW
GARY A. TAYLOR
October 9, 2008
Ms. Danielle Brooks
CalPERS
PO Box 942711
Sacramento, CA 94229-2711
Fax: (916) 795-3005
Dear Ms. Brooks:
ATTACHMENT B
f i~+ Posemead
8838 E. VALLEY BOULEVARD • P.O. BOX 399
ROSEMEAO, CALIFORNIA 91770
TELEPHONE (626) 569.2100
FAX (626) 307-9218
Request to Complete a Determination
Per our previous discussion, the City would like to request that the position of
Administrative Intern be excluded from CalPERS membership. The City of Rosemead
has developed an Administrative Intern program and is working diligently to attract
students from the universities in our region. Our mission with this program is to provide
college students with an opportunity to participate in local government in relationship to
the fields of study in which they are pursuing a degree.
Our intern program is geared towards college students in their junior or senior year with
the intent of providing them with real hands-on experience that will improve their skills
and provide them with a taste of what they can expect from past-graduation
employment. Interns in the program are required to be full-time students with at least
two years of college coursework. Each position typically lasts anywhere between six
and eighteen months depending on the assignment and projects available. Since these
appointments are relatively short-term in nature, we work to provide each participant
with as much experience as possible. Unfortunately, due to budget constraints we
cannot afford to fund the additional costs of enrollment into CaIPERS, which limits the
hours in which they can work. Under our current situation, enrollment into- CaIPERS
would typically increase our costs by 35%.
Along with the attached job description, I believe it is important to outline some of the
specific goals and details of the program which has led us to this request. Each year
the City undertakes numerous projects which require a significant investment of staff
time. Some examples of current or budgeted projects are the General Plan adoption,
• Zoning Code update, new website development, development of a branding program,
• and a complete classification and compensation study. Typically these projects are
short-term in nature but require significant resources. The City currently has three
interns in our program and while we have made an effort to include them in these
projects, the limitation of keeping them under the 1,000 hours in a fiscal year has kept
them being able to participate in the projects to the extent that would provide them with
full-scale experience. If granted the determination from CalPERS, our interns would
continue to work between 16 and 20 hours per week while in enrolled in class, but
would be allowed to work up to 36 hours per week during periods in which class was not
# in session- These periods would include the winter holiday break which for some
universities in our region is 6 weeks, summer break, and any breaks between
semesters or quarters. We believe that limiting the hours while attending classes is
important, however, we would like to provide additional opportunities during times in
which our participants do not need the additional time off for homework and studying.
Please let me know if you have any questions. I can be reached by phone at (626)569-
2107 or by email at mhawkesworth@cityofrosemead.org.
Best regards,
• Matthew E. Hawkesworth
Assistant City Manager
Attachment: Administrative Intern Job Description
•
CITY OF ROSEMEAD
ADMINISTRATIVE INTERN
DEFINITION
Under direction, to provide responsible professional, and administrative assistance in the
development and implementation of City programs; to provide responsible administrative team
member assistance including conducting specific and comprehensive surveys involving
organization, procedures, finance, and human resources.
DISTINGUISHING CHARACTERISTICS
Working under the immediate supervision of management staff, standard assignments are well
defined. This class is designed to provide on-the-job training and to attract, develop and
mentor innovative incumbents in public service.
SUPERVISION RECEIVED
Receives immediate supervision from higher level management staff and may receive indirect
supervision from other administrative, professional or technical staff.
No supervision exercised.
•
EXAMPLES OF DUTIES & RESPONSIBILITIES
Depending on assignment, essential duties may include, but are not limited to, the following:
e Assist members of the management and technical staff by performing a variety of
specialized and routine administrative assignments;
e Provide administrative support in various Business Units;
e Conduct surveys, prepare reports, and perform research and statistical analysis as
requested;
e Provide recommendations regarding operational and service improvements;
• Assist with the coordination of public meetings and presentations;
e Monitor and coordinate the daily operations of assigned program areas;
e Perform administrative detail work and maintain appropriate records;
e Respond to requests for information, in person or over the phone, and provide
necessary customer service to members of our community, business units, and other
i
City team members;
e Review and summarize publications and documents to gather data and perform
preliminary research;
•
e Develop and produce informative materials on a variety of subjects;
e Perform customer service functions;
e. Assume duties of a disaster worker in the event of a locally declared emergency; and
z
Administrative Intern
Page 2 of 3
• • Perform other related duties and responsibilities as assigned.
REQUIREMENTS & QUALIFICATIONS
Knowledge of:
• Principles and practices of public administration and budget preparation;
• Principles and methods of statistics and research;
• Basic principles of financial analysis and budgeting;
• Principles of effective customer service;
• Research techniques, methods, and procedures;
• Office management practices, principles, and equipment; and
• Safe driving principles and practices.
Skills of:
• Operate modern office equipment including computer equipment and a variety of word
processing, spreadsheet and other software applications.
• Operate a motor vehicle safely.
Ability to:
• Conduct research on a wide variety of programs and projects;
• Prepare clear and concise correspondence and reports;
• Communicate clearly and concisely, both orally and in writing;
• Follow written and oral directions;
• Observe safety principles and work in a safe manner; and
• Establish, maintain and foster positive and harmonious working relationships with those
contacted in the course of work.
EDUCATION & EXPERIENCE
Equivalent to two years of college with major work in public administration, business
administration, political science, social science, law, accounting, planning, or related field.
Customer service experience dealing directly with the general public is highly desirable.
PHYSICAL DEMANDS & WORK ENVIRONMENT
The physical demands and work environment described here are representative of those that
must be met by a team member to successfully perform the essential functions of this job.
Reasonable accommodations may be made to enable individuals with disabilities to perform the
essential functions.
Physical Demands
Position requires prolonged sitting, standing, walking, reaching, twisting, turning,
kneeling, bending, squatting and stooping in the performance of daily activities. The
position also requires grasping, repetitive hand movement and fine coordination in
preparing reports using a computer keyboard. Additionally, the position requires near
and far vision in reading written reports and work related documents. Acute hearing is
required when providing phone and personal service. Additionally, need to lift, drag and
push files, paper and documents weighing up to 25 pounds is required.
6
Administrative Intem
• Page 3 of 3
Work Environment
Ability to work in a standard office environment and ability to travel to different sites and
locations. May be required to work evenings, weekends, holidays, special events, and
during emergencies, as assigned.
•
•
Class specifications are only intended to present a descriptive summary of the range of duties
and responsibilities that are associated with specified positions. Therefore, specifications mmay
not include all duties performed by individuals within a classification. In addition,
specifications are intended to outline the minimum qualifications necessary for entry into the
class and do not necessarily convey the qualifications of incumbents within the position.
Incumbents must be able to perform essential duties, with or without accommodation for
disability at any time while holding this position.
Date: 1019108
9
Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
Telecommunications Device for the Deaf - (916) 795-3240
"ERS 888 CalPERS (or 888-225-7377) FAX (915) 795-3005
December 10, 2008
Matthew E. Hawkesworth
Assistant City Manager
City of Rosemead
8838 E. Valley Boulevard
Rosemead, CA 91770
Dear Mr. Hawkesworth:
ATT 0 (F C
DEC
?QQ~
BY
:
This letter is regarding the request to exclude by contract the City of Rosemead (City)
Administrative Intern position from membership in the California Public Employees'
Retirement System (CaIPERS).
In April of 1997, the CalPERS Board of Administration adopted a resolution which
• established the "Procedures and Guidelines for Determining Future Public Agency
Contract Exclusions (copy enclosed). All contract exclusion requests from this date
must be in compliance with these guidelines.
Based on the information provided,. the City's request to exclude the Administrative
Intern position meets the 1997 CalPERS Board approved guidelines. The exclusion
request is based on a "group" of employees clearly defined for CaIPERS' identification of
the excluded class: Further, the following aspects, as provided in your letter to CalPERS
dated October 9, 2008, suggest a non-career position eligible for exclusion within the
purpose of the Public Employees' Retirement Law:z
• The City's Administrative Intem program is intended "to attract students from the
universities in [the] region."
■ Potential applicants for Administrative Intern program "are required to be full-time
students with at least two years of college coursework."
■ The Administrative Intern "position typically lasts...between six and eighteen
months...[and] are relatively short-term in nature."
■ The apparent goal of the Administrative Intern program is to "provide college
students with an opportunity to participate in. local government."
On this basis, the City's request to exclude the Administrative Intern position is
approved. In accordance with Sec. 20502, the exclusion of groups of employees to be
made by amendments to contracts, are with respect to future entrants into the group.
• Any current Administrative Intern employees with the City remain eligible for membership
MSD-97-01; http:l/www.calpers.ca.govfelp-docstemployer/clr4trs/201~154-04-attachmentl.pdf
2 California Govemment Code Section 20000 of seq.
Callifornia Public Employees' Retirement System
www.calpers.en.gov
~D
•
0
Mr. Matthew E. Hawkesworth -2-
December 10, 2008
in CalPERS. Only those Administrative Intem employees hired after the effective date of
the City's amendment to its CaIPERS contract to exclude the Administrative Intem will be
excluded from membership in CaIPERS.
If you have any questions or concerns in regards to this determination and/or contract
related inquiries, please contact CalPERS at the above address or 888 CaIPERS (or
888-225-7377).
Sincerely,
164.k.L,
Theo K. Akana, Analyst
Employer Services Division
Enclosure
• STATE OF CALIFORNIA
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
RESOLUTION
Subject: Procedure and Guidelines for Determining No. MSD-97-01
Future Public Agency Contract
Exclusions
WHEREAS, 1. The purpose of the Public Employees' Retirement Law, Government
Code section 20000 et seq., as stated in section 20001, is to provide a
retirement system for public'service employees.
2. For purposes of the Public Employees' Retirement Law, the term
"employee" is defined in Govemmeht Code section 20028(b) to include
any person in the employ of any contracting agency:
I The California Constitution, article XVI, section 17 provides that the
CalPERS Board has plenary authority and fiduciary responsibility for
administration of the CalPERS system.
4. - The California Constitution, article XVI, section 17, and Government
-Code section 20151 provide that the Ca1PERS Board must exercise its
authority and duties subject to its fiduciary obligations to its participants
and beneficiaries, and that the Board's duty to its participants and
` beneficiaries takes precedence over any other duty.
r
5. Government Code section 20120 provides that management and control
of the Ca1PERS system is vested in the CalPERS Board.
6. Government Code section 20121 provides that the CalPERS Board may
make such rules as it deems proper.
7. Government Code section 20460 provides that public agencies may
contract with the Cal PERS Board to participate in CalPERS and make all
or part of their employees members of the system.
Under the statutory scheme set forth in the Public Employees' Retirement
Law, specifically Government Code sections 20300 et seq. and 20502, all
employees of a contracting agency are mandated into CalPERS
membership unless they are excluded either by statute or by a
contractual provision.
9. Government Code section.20502 provides that contractual exclusions of
public agency employees shall be based on groups of employees such as
departments or duties, and not on individual employees, and further that
the CalPERS Board may disapprove the exclusion of any group, if in its
opinion the exclusion adversely affects the interest of the system.
/0? 1
•
Resolution No. MSD-97-01
2
10. Govemment Code section 20305 sets forth the specific situations in
which employees serving on less than a full-time basis are excluded from
CalPERS, and further provides that except as provided in section 20502,
no contract or contract amendment entered into after January 1, 1981,
shall contain any provision excluding persons on an irregular employment
basis.
11. Govemment Code section 20460 et seq. provides for a specific process
for the execution of and amendments to contracts between CalPERS and
public agencies.
12. Government Code section 20460 et seq. anticipates generally the
involvement of employees and recognized employee representatives in
situations relating to the adoption and amendment of public agency
contracts with CalPERS.
•
THEREFORE, BE IT RESOLVED THAT,
A. In determining whether to approve future public agency contract
exclusions pursuant to Government Code section 20502, either in a new
contract or through amendment to an existing contract, the CalPERS
Board shall follow the Procedures and Guidelines set forth in Attachment
A to this Resolution.
B. The Ca1PERS Board delegates to the Chief Executive Officer the
authority to implement this Resolution.
C. This Resolution shall be effective immediately.
I hereby certify that on the 16th day of April, 1997, the Board of Administration of the Public
Employees' Retirement System made and adopted the foregoing Resolution.
/S/
WILLIAM DALE CRIST, PRESIDENT
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
J
I understand and accept this delegation.
/S/
.4/22/97
Date JAMES E. BURTON
CHIEF EXECUTIVE OFFICER
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Res. MSD-97-01
13
ATTACHMENT A
• PROCEDURE AND GUIDELINES FOR DETERMINING
FUTURE CONTRACT EXCLUSIONS
APPLICABILITY
These procedures and guidelines apply to requests by public agencies (as defined in
Government Code section 20025) that are either: seeking to contract with CalPERS for
coverage for their employees and wish to exclude part of their employees from membership;
or, are seeking to amend their existing contract for CalPERS coverage to exclude certain
future employees.
PROCEDURE
The public agency shall submit to the Ca1PERS Member Services Division a written request
specifying the group of employees it wishes to exclude. The request must include:
A detailed explanation of the group of employees the agency wishes to exclude,
including a description of the type of employees who normally would fall within
the group and an explanation, with supporting documentation (including job
descriptions and class specifications), of why the employees are considered
non-career employees. (See Guidelines.)
• A statement that the public agency has, in compliance with California law,
notified the pertinent recognized employee organizations of its request to
exclude certain groups of employees, or in the case where there is no pertinent
recognized employee organization, has posted (in a conspicuous location
frequented by its employees) a notice of its intent to exclude certain groups of
employees.
CalPERS will review the public agency's request based on the guidelines set forth below.
When appropriate, CalPERS will request additional information from the public agency. The
employee organizations may also submit information. After receiving all necessary information
and reviewing the request in light of the guidelines, CalPERS will, as quickly as is
administratively possible, issue a written determination letter to the public agency and the
responding employee organizations that approves or disapproves the contract exclusion.
In the case of either a .new public agency contract or an amendment to an existing contract,
the public agency must complete the statutory process set forth in Government Code section
20460 et seq. to implement the contract or amendment. An employer or employee organization
representing the affected employees who is dissatisfied with the Member Services Division
determination, may seek further review by, within 30 days of the date of the determination
letter, submitting a written request to the CalPERS Chief Executive Officer. Upon receipt of
such a request, the Chief Executive Officer will convene a three-person panel, consisting of the
.7
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Chief Actuary, the Assistant Executive Officer - Member and Benefit Services, and the General
Counsel. This panel will consider the-original request, the Member Services Division's
determination, any additional written arguments submitted, and oral presentations if requested
by the parties or desired by the panel. An employer who is dissatisfied with the review panel's
determination may seek further review by, within 30 days of the review panel's determination
letter, submitting a written request to the Chief Executive Officer. The Chief Executive Officer
will place the matter on the agenda for the next administratively-feasible meeting of the
Benefits and Program Administration Committee.. The Benefits and Program Administration
Committee will review the issue based upon written materials submitted and will make a
recommendation to the Board. The Board's decision will be final.
GUIDELINES FOR REVIEWING PROPOSED CONTRACT EXCLUSIONS
In reviewing public agency requests for contract exclusions, CalPERS will apply the guidelines
set forth below on a case-by-case basis. Based on its review of the request in light of these
guidelines, CalPERS will determine whether to approve the contract exclusion.
No single factor is necessarily dispositive. In making its determination, CalPERS shall
consider all the factors and circumstances as a whole.
1. The exclusion must be based on a "group" of employees.
(Note, the definition of "group or class of employment located in Govemment Code
section 20023(e) is not controlling for this purpose.)
• The group of employees to be excluded must be clearly defined. Specifically,
CalPERS must be able to ascertain which employees are in the group. Further,
the group must be clearly defined so that it is not possible for the employer
arbitrarily to move employees in and out of the group.
• The employees in the group must share some common characteristic. These
characteristics may include, for example, department, duties, or job
classification.
• Consistent with Government Code section 20305; the defining characteristic of a
group may not be irregular employment status. For example, the exclusion may
not be for "temporary" or "seasonal" employees.
As provided in Government Code section 20502, exclusions must be based on
groups of employees such as departments or duties, and not on individual
employees.
15
0 2. The exclusion must not adversely affect the interests of the system.
CalPERS will review the proposed exclusion to determine whether it adversely affects
the interests of the system. This review will include an exploration of the possible
impacts of the exclusion on the system's various administrative and operational
interests, as well as an analysis of whether the exclusion is consistent with CaIPERS'
purpose to provide a retirement system for employees who become superannuated or
otherwise incapacitated.
In considering the impact of the proposed exclusion on CaIPERS' administrative and
operational interests, CalPERS will consider factors including the following:
Whether any unreasonable administrative burden or cost would be
required for CalPERS to implement the exclusion.
Whether the exclusion is sufficiently defined so as to enable CaIPERS,
through its normal audit process, to monitor the agency fof contract
compliance.
Whether the exclusion might lead to disqualification of the plan for failure
to satisfy Internal Revenue Code qualification requirements.
• Whether the exclusion would violate any applicable federal or state
provisions.
Whether, from an administrative or operational perspective, the proposed
exclusion has other adverse effects on the system.
Cal PERS will also consider the proposed exclusion in light of the purpose of the Public
Employees' Retirement Law, as set forth in Government Code section 20001,
specifically to provide a retirement system for employees who become superannuated
or otherwise incapacitated. As a general guideline, the exclusion of groups of
employees who are career employees, or could reasonably be anticipated to become
career employees, is not consistent with the purpose of the Public Employees'
Retirement Law. To determine whether the group under consideration for exclusion
consists of non-career employees, CalPERS will consider factors including the
following.
• The.types of employees who generally fall within the group. For example,
does the group consist of employees in a position generally held by
retirees or students? (For example, Crossing Guard positions are often
held by retirees; bookstore positions are often held by students.)
• Whether the group consists of employees in a training position, at the end
of which it is anticipated that they will seek employment elsewhere.
• (These types of positions are often established in connection with a
program affiliated with a facility of higher education.)
16
Whether the group consists of employees in -an intem position which is
part of an approved study plan or a graduation requirement (e.g., a
medical internship).
Whether the group consists of employees in a department or
classification for which there is no established career path or promotional
ladder leading to classifications where employees are CaIPERS
members.
The manner in which funding is provided for the positions that fall within
the group. For example, is funding established on a short-term basis or
are the affected positions permanently budgeted? .
• For employers that operate under a civil service system, whether the
group consists of employees who are in non-civil service positions.
•
•
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Resolution: 2009-09
RESOLUTION OF INTENTION
ATTACHMENT D
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF ROSEMEAD
•
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 an exclusion for the position of Administrative
Interns hired on or after the effective date of this
amendment to contract.
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 byAs reference made a part hereof.
By:
Ma-r
Title
•
February 10, 2009
Date adopted and approved
(Amendment)
CON-302 (Rev. 4196)
I~
Ca1PERS
EXHIBIT
California'
Public Employees' Retirement System
MMMMM2~ 4W
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Rosemead
MMMMM~ 44111110"
•
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 12, 1992, and witnessed September 8, 1992, and as amended effective April 9,
1993, July 27, 1998 and November 5, 2007 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 November 5, 2007, and hereby replaced by the following paragraphs
numbered 1 through 12 inclusive:
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 55 for local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after October 12, 1992 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. -
/4
• 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. 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. SAFETY EMPLOYEES;
b. "PLANNING AND TRAFFIC COMMISSION"; AND
C. ADMINISTRATIVE INTERNS HIRED ON OR AFTER THE
EFFECTIVE DATE OF THIS AMENDMENT TO CONTRACT.
5. Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder.
6. The percentage of final compensation
credited prior and current service asat local miscellaneous of
employment before and not on or after November 5, 2007 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 supplemental to Federal Social Security).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after November 5, 2007 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
supplemental to Federal Social Security).
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b. Section 21536 (Local System Service Credit Included in Basic
Death Benefit).
• c. Section 21031 (Public Service Credit for Limited Prior Service).
d. Section 21024 (Military Service Credit as Public Service).
e. Section 20042 (One-Year Final Compensation).
~ D
E
•
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 of said Retirement System.
10. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. 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.
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
J
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIR! I,M NT SYSTEM
11
~
BY
LORI MCGA
EMPLOYER
PUBLIC EMF
fJ
REMENT SYSTEM
day of
CITY COUNCIL
CITY OF ROSEMEAD**-'
1 •
BY
PRESIDING-OFFICER
•j•
Witness'_~Ilate
J
Attest:
Clerk
AMENDMENT ER# 1595
r) )
C
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2009-09 being:
A RESOLUTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN
THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF ROSEMEAD
was d* and regularly approved and adopted by the Rosemead City Council on
the 10 of February 2009, by the following vote to wit:
Yes: Clark, Low, Nunez, Tran
No: None
Abstain: None
Absent: Taylor
Gloria Molleda
City Clerk
•
• ORDINANCE NO. 872
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the City of Rosemead requested a determination letter from the
Board of Administration of the California Public Employees' Retirement System to
exclude the Administrative Intern position from membership; and
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System approved the request to exclude the Administrative Intern position on
December 10, 2008; and
WHEREAS, the City Council of the City of Rosemead adopted the Resolution of
Intention to amend the contract with the Board of Administration of the California Public
Employees' Retirement System on February 11, 2009.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD,'
10 CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section I . That an amendment to the contract between the City Council of the
City of Rosemead, California and the Board of Administration, California Public
Employees' Retirement System is hereby authorized, a copy of said amendment being
attached hereto, marked Exhibit and by such reference made a part hereof as though
herein set out in full.
Section 2. The Mayor of the City Council is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of said Agency.
Section 3. This Ordinance shall take effect 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 San Gabriel Valley Tribune, a newspaper of general
circulation, published and circulated in the County of Los Angeles and thenceforth and
thereafter the same shall be in full force and effect.
0
0 PASSED AND ADOPTED this 10th day of March, 2009, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
JOHN TRAN, MAYOR
ATTEST:
GLORIA MOLLEDA
City Clerk
• APPROVED AS TO FORM:
BONIFACIO BONNY GARCIA
City Attorney