03-0519_OC EMPLOYEES RETIREMENT SYSTEM_Amd & Rstd AgrAMENDED AND RESTATED
AGREEMENT RE: ADDITIONAL RETIREE BENEFIT ACCOUNT
This Amended and Restated Agreement re Additional Retiree Benefit Account
("Agreement") dated May 19, 2003 is entered into as of the Effective Date, as defined herein, by
and between City of San Juan Capistrano, a public agency of the State of California ("City of San
Juan Capistrano"), and the Orange County Employees Retirement System, a public retirement
system organized and existing pursuant to the provisions of the County Employees Retirement
Law of 1937, as amended ("OCERS" or the "retirement system"). City of San Juan Capistrano
and OCERS are sometimes referred to herein individually as "Party" and collectively as "Parties."
RECITALS
A. OCERS provides and administers a program of retirement benefits for the
employees and retirees of the County of Orange ("County") and certain other public agencies
located within the County that participate in OCERS, including City of San Juan Capistrano,
pursuant to Government Code Sections 31450, et seq. ("CERL") and other applicable law.
B. City of San Juan Capistrano and OCERS are parties to an ARBA
Agreement, dated February 8, 1999, concerning the funding of a health benefit program for
retired employees of the City of San Juan Capistrano who are members of OCERS, and their
eligible beneficiaries (the "DISTRICT ARBA Agreement') and other matters.
C. The County and OCERS have entered into an Amended and Restated
Memorandum of Understanding Agreement re: Additional Retiree Benefit Account, dated
August 27, 2002 ("County ARBA Agreement'), a true and correct copy of which is attached
hereto as Exhibit A for reference.
D. City of San Juan Capistrano and OCERS wish to amend and restate the
City of San Juan Capistrano ARBA Agreement, to be consistent with the County ARBA
Agreement, and to accomplish other objectives of the parties, as more particularly set forth
herein.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the existence and
sufficiency of which the Parties hereby acknowledge, IT IS HEREBY AGREED AS
FOLLOWS:
1. Recitals. The foregoing RECITALS are true and correct and are
incorporated herein by this reference.
2. Amendment and Restatement of the ARBA Agreement. The Parties
hereby agree to amend and restate the City of San Juan Capistrano ARBA Agreement in this
Agreement. This Agreement is intended to and shall supercede the City of San Juan Capistrano
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ARBA Agreement in its entirety. Upon this Agreement becoming effective, the City of San Juan
Capistrano ARBA Agreement shall be null and void and of no further force or effect.
3. Intent of this Agreement. The intent of this Agreement is (a) to use a
portion of City of San Juan Capistrano Advance Reserves (as defined herein), as authorized by
Section 31592.2 of CERL, to provide a source of funding to help defray the cost to the City of
San Juan Capistrano of providing health benefit grants to its retired employees who are members
of OCERS and their eligible survivors, and for reasonable expenses of administration of the
benefit program, while minimizing employer contributions to the retirement system; and (b) to
make the City of San Juan Capistrano ARBA Agreement consistent with the County ARBA
Agreement.
4. Definitions. The following terms shall have the following definitions in
this Agreement.
"Additional Retiree Benefit Account" or "ARBA" is a portion of the
Unallocated Fund Balance (as defined herein) originally established by the ARBA Agreement, as
defined in the County ARBA Agreement, comprised of the Members' Share of Transferable
Funds (as defined herein) designated to help defray the cost to the County and other districts,
including City of San Juan Capistrano, of providing health and other benefit grants to their
retired employees who are members of OCERS and their eligible survivors, and for reasonable
expenses of the employers' administration of their benefit grant program.
"Employer Advance Reserves" is the reserve account in the retirement
fund comprised of (a) the contributions made into the fund from time to time by the County and
other employers, net of benefit payments, (b) the Employers' Share of Transferable Funds (as
defined herein), (c) the County and Employer RMBR Accounts (as defined herein), and (d)
accumulated investment earnings on all of the foregoing. "Employer Advance Reserves" has the
same meaning as the "County Advance Reserves" as defined in the County ARBA Agreement.
"City of San Juan Capistrano Members' Share of ARBA" is that portion of
ARBA held for the benefit of retired employees of the City of San Juan Capistrano who are
members of OCERS and their eligible survivors.
"Effective Date" shall have the meaning set forth in Paragraph 14 of this
Agreement.
"Investment Account" shall have the same meaning as set forth in the
County ARBA Agreement.
"Net Applicable Assets" is the total book value of assets of the retirement
system less the Unallocated Fund Balance (as defined herein), true payables (as determined from
time to time by OCERS' actuary), the Investment Account, the ARBA, and reserves established
by the Board of OCERS.
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"Net Unallocated Fund Balance" or "Net UFB" is the Unallocated Fund
Balance (as defined herein) less amounts in the ARBA and other reserves, including the UFB
Reserve (as defined herein), designated by the Board of OCERS.
"County and District RMBR Accounts" are those portions of the
Employer Advance Reserves maintained exclusively for the purpose of providing a source of
funding to help defray the cost to the County, the City of San Juan Capistrano and other
employers participating in OCERS of providing health and supplemental benefit grants to their
retired employees who are members of OCERS and their eligible survivors, and for reasonable
expenses of the County, and other districts' administration of their benefit grant programs. The
City of San Juan Capistrano's portion of the County and Employer RMBR Accounts shall be
referred to herein as the "City of San Juan Capistrano RMBR Account."
"Unallocated Fund Balance" or "UFB" is the fund created by earnings of
the retirement fund during any year in excess of (a) the total interest credited to contributions and
reserves during such year, pursuant to Sections 31592 and 31592.2 of CERL, and (b) amounts
determined by OCERS for deficiencies in interest earnings in other years, losses on investments
and other contingencies, as provided in Sections 31592 and 31592.2.
"Valuation Date" shall be the 315` day of December each year for which
OCERS' actuary prepares an annual valuation for purposes of establishing employer and
employee contributions into the retirement fund, for the fiscal year commencing on the next
following July 1.
5. Initial RMBR Transfer. As of the Effective Date, OCERS shall establish
and maintain a City of San Juan Capistrano RMBR Account as a sub -account of the Employer
Advance Reserves, and shall transfer on its books the sum of $160,000.00 from the ARBA to the
City of San Juan Capistrano RMBR Account. This sum is the amount determined by OCERS'
actuary to represent three (3) years' projected costs of the portion of City of San Juan Capistrano
grants to be funded pursuant to this Agreement, under the City of San Juan Capistrano's program
of providing health benefit grants to retired employees of the City of San Juan Capistrano who
are members of OCERS and their eligible survivors, plus reasonable expenses of the
administration of the health benefit program. The funds in the City of San Juan Capistrano
RMBR Account shall be used exclusively for the purposes and in the manner set forth in
Paragraph 10, below.
6. UFB Reserve. OCERS has established a policy of maintaining a reserve
against deficiencies in interest earnings in other years, losses on investments and other
contingencies, as provided in Sections 31592 and 31592.2, of five percent (5%) of the Net
Applicable Assets (the "UFB Reserve"). The Parties acknowledge that the Board of OCERS
may change the percentage level of the UFB Reserve from time to time, and that in the event the
level of UFB Reserve changes, the change shall have no effect on the other provisions of this
Agreement.
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Transfers to Employer Advance Reserves and ARBA.
a. As of the Valuation Date each year, OCERS shall determine, upon the
advice of its actuary, if there is available Net UFB in excess of funds to be transferred into the
City of San Juan Capistrano RMBR Account as required under Paragraph l Ob., below. Such
available funds shall be known as the "Transferable Funds." The Transferable Funds shall be
divided in the manner set forth in Paragraph 7b., below, resulting in the City of San Juan
Capistrano's Share of Transferable Funds and the City of San Juan Capistrano Members' Share
of Transferable Funds. OCERS shall transfer on its books the City of San Juan Capistrano's
Share of Transferable Funds to Employer Advance Reserves. OCERS shall transfer on its books
the City of San Juan Capistrano Members' Share of Transferable Funds to the City of San Juan
Capistrano Members' Share of ARBA.
b. The City of San Juan Capistrano's Share of Transferable Funds shall be
determined in the following manner:
(1) First, by multiplying the Transferable Funds by a fraction, the
numerator of which is the amount of all employer contributions to OCERS during the ten
(10) calendar years immediately preceding the Valuation Date, and the denominator of
which is the total of all employer and employee contributions to OCERS made during the
same period. The result shall be known as the "Employers' Share of Transferable
Funds." The balance of Transferable Funds shall be known as the "Members' Share of
Transferable Funds."
(2) Second, by multiplying the Employers' Share of Transferable
Funds by a fraction, the numerator of which is the amount of all employer contributions
to OCERS made by the City of San Juan Capistrano during the ten (10) calendar years
immediately preceding the Valuation Date, and the denominator of which is the total
employer contributions to OCERS made by the County, the City of San Juan Capistrano
and other participating districts during the same period. The result shall be the "City of
San Juan Capistrano's Share of Transferable Funds" and shall be distributed as set forth
in Paragraph 7a, above.
c. The City of San Juan Capistrano Members' Share of Transferable
Funds shall be determined by multiplying the Members' Share of Transferable Funds by a
fraction, the numerator of which is the amount of all employee contributions to OCERS made by
City of San Juan Capistrano's employees during the ten (10) calendar years immediately
preceding the Valuation Date, and the denominator of which is the total employee contributions
to OCERS by the employees of the County, the City of San Juan Capistrano and other
participating districts during the same period. The result shall be the "City of San Juan
Capistrano Members' Share of Transferable Funds" and shall be transferred on OCERS' books
as set forth in Paragraph 7a., above.
d. The remaining, untransferred balances of the Employers' Share of
Transferable Funds and the Members' Share of Transferable Funds shall be held in separate sub -
accounts of UFB, for the purpose of funding health and supplemental benefit programs
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administered by other districts participating in OCERS, pursuant to separate agreements to be
entered into by and between such districts and OCERS.
8. Transfers from ARBA for Retiree Health Benefits. For each fiscal year in
which the City of San Juan Capistrano provides a program of health benefits to retired
employees of the City of San Juan Capistrano who are members of OCERS and their eligible
survivors, OCERS shall transfer on its books from ARBA into Employer Advance Reserves an
amount, subject to availability, sufficient to pay for the portion of the health benefit grants to be
funded pursuant to this Agreement which the City of San Juan Capistrano provides to retired
employees of the City of San Juan Capistrano who are members of OCERS and their eligible
survivors, and for reasonable expenses of the administration of the health benefit program during
that fiscal year.
9. Interest Crediting on Accounts. OCERS shall credit interest on ARBA at
the assumed rate of interest as established by OCERS from time to time, currently eight percent
(8%) per annum; provided, however, that such interest is available for crediting from Net UFB.
OCERS shall not credit interest on the City of San Juan Capistrano RMBR Account.
10. City of San Juan Capistrano RMBR Account; Shortfalls in ARBA.
a. The City of San Juan Capistrano RMBR Account shall be used by
OCERS exclusively as a reserve against a deficiency in the City of San Juan Capistrano
Members' Share of ARBA. To the extent that in any fiscal year, the City of San Juan Capistrano
Members' Share of ARBA is insufficient or unavailable to provide the full amount required to be
transferred to Employer Advance Reserves pursuant to paragraph 8, above (an "ARBA
Shortfall"), OCERS shall transfer on its books an amount equivalent to the ARBA Shortfall from
the City of San Juan Capistrano RMBR Account to Employer Advance Reserves for the
exclusive purpose as set forth in paragraph 8 above.
b. As of each Valuation Date, on the advice of its actuary, OCERS shall
maintain a balance in the City of San Juan Capistrano RMBR Account not less than an amount
determined by OCERS' actuary to represent three (3) ensuing fiscal years' worth of projected
costs of the portion of the health benefit grants provided by the City of San Juan Capistrano to be
funded pursuant to this Agreement, plus reasonable expenses of administration of the health
benefit program during those fiscal years (the "Safety Level.") In the event that the balance of
the City of San Juan Capistrano RMBR Account at any time is less than the Safety Level,
OCERS shall transfer out of first available Net UFB sufficient funds to return the City of San
Juan Capistrano RMBR Account to the Safety Level. This transfer shall occur prior to the
transfers referred to in Paragraph 7, above.
11. Shortfalls in Net Unallocated Fund Balance. As of June 30 and December
31 of any fiscal year, if OCERS' earnings are insufficient to credit the assumed rate of interest to
all statutory reserves, such deficiency shall be made up at that time by transferring funds out of
the UFB. If such transfer results in a Net UFB of less than three percent (3%) of Net Applicable
Assets, then all employer contributions to OCERS shall be increased during the immediately
following fiscal year by an amount which is the lesser of (a) the amount necessary to restore the
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Net UFB to three percent (3%) of Net Applicable Assets or (b) an amount equal to one-half of
one percent (1/2%) of employer payroll subject to retirement contributions.
12. Further Actions. Each Party shall take all actions and do all things, and
execute, with acknowledgment or affidavit if required, any and all documents and writings, that
reasonably may be necessary or proper to achieve the purposes and objectives of this Agreement
and the transactions contemplated hereby.
13. Termination Date; Renewal.
a. The term of this Agreement shall be through and including December
31, 2007, the second anniversary of the tri -annual actuarial valuation of the retirement system
performed by the system's actuary as of December 31, 2001; provided, however, that this
agreement may be terminated sooner than December 31, 2007 if either the governing body of the
City of San Juan Capistrano or the Board of Retirement of OCERS determines, in the sole and
exclusive exercise of its duties, that it does not wish this Agreement to remain in force beyond
the end of the calendar year in which such determination is made. In the event of such
determination, the determining body or Board shall give the other not less than 60 days written
notice in advance of the end of that calendar year of its desire for earlier termination, and this
Agreement shall thereafter terminate effective at midnight on December 31 of that year.
b. Following the effective date of termination, (i) all funds remaining in
the City of San Juan Capistrano RMBR Account shall remain in that account, without further
credit for interest, and shall be used for the purposes and in the manner provided for under
Paragraph 10 of this Agreement after termination of this Agreement for so long as they are
available; (ii) all funds remaining in the City of San Juan Capistrano Members' Share of ARBA
shall be deemed to be Net UFB and there shall no longer be any funds designated as City of San
Juan Capistrano Members' Share of ARBA; and (iii) OCERS shall have no further obligation to
transfer on its books any funds pursuant to this Agreement.
c. Notwithstanding the foregoing subparagraph (a), the Parties may
mutually agree to extend the term of this Agreement in such interval(s) and upon such terms as
they may later agree upon in a writing executed prior to the termination of this Agreement.
14. Effective Date. This Agreement shall be effective as of the date on which
all Parties have signed this Agreement.
15. Entire Agreement. This Agreement represents the Parties' entire
agreement and constitutes the only existing and binding agreement between them with respect to
the matters stated herein. This Agreement supersedes any and all prior agreements,
representations, promises and understandings of any kind, whether oral or written, express or
implied, between the Parties regarding the subject matters of this Agreement. Nothing herein is
intended to nor shall affect any party's rights and obligations under CERL. In entering into this
Agreement, each Party disclaims any reliance upon any representation, fact or opinion that is not
otherwise set forth in writing in this Agreement. Each Party hereby waives any rules of
interpretation or construction contained in California Civil Code § 1654.
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16. Survival. The terms and conditions of Paragraphs 6, 10.b., 11, 14, 15 and
17 of this Agreement shall survive its termination.
17. Modification, This Agreement may not be modified, altered, amended or
otherwise changed in any respect except by a writing duly executed and signed by each Party.
18. Authority to Execute Agreement. Each Party represents and warrants that
the person executing this Agreement on its behalf as indicated below has full power and
authority to do so.
Dated:�h '2003
APPROVED
ASS TO FORM:
Dated: ' l'I" 1 '2003
CITY OF SAN JUAN CAPISTRANO
By:
John Vghaw
City Attorney
ATTEST:
R. Monahan, City Clerk
Capistrano
Dated: 1Z 2003
BOARD OF RETIREMENT OF THE
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM
L =11111111151,
APPROVED AS TO FORM:
Dated: 2003
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM
By:
e E. Wyne
neral Counsel
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CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FORS TPPT FMFNTAL BENEFITS
This Agreement ("Agreement") is made and entered effective as of the 8th day of
February 1999, by and among the CITY OF SAN JUAN CAPISTRANO, a public entity
(hereinafter, "CITY"), CAPISTRANO VALLEY WATER DISTRICT, a public entity
(hereinafter, "DISTRICT") and the ORANGE COUNTY EMPLOYEES RETIREMENT
SYSTEM, a public retirement system organized and existing pursuant to the provisions of the
County Employees Retirement Law of 1937 ("OCERS").
RECITALS
A. OCERS provides and administers a program of retirement benefits for the
employees of the County of Orange ("COUNTY"), and the CITY, DISTRICT and certain other
public agencies which have elected to participate in OCERS.
B. The Retirement Fund managed by OCERS includes an earnings reserve,
identified as the "Unallocated Fund Balance" ("UFB").
C. OCERS and the COUNTY have previously entered into a Memorandum of
Understanding Agreement, dated January 5, 1993, as amended ("County
Agreement"), a true and correct copy of which is attached hereto, which
establishes a procedure whereby funds derived from portions of the UFB known
as "Employer's Share" and "Remaining Transferred Funds' are designated on
the books of OCERS as an account known as the "Additional Retiree Benefit
Account" ("ARBA") for the purpose of funding additional health benefits for
certain retired members of OCERS.
SD990:78930A
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D. Since in or about 1993 OCERS has designated on its books portions of ARBA for
the purpose of funding additional benefits for retired members of the CITY and of the
DISTRICT.
E. OCERS and DISTRICT entered into an Agreement dated September 17, 1996
providing for the use of a portion of ARBA to fund additional benefits for retired members of
the DISTRICT. The employees of the DISTRICT were transitioned into the CITY workforce as
CITY employees on or about July 1, 1997 and may eventually retire from CITY service.
F. OCERS, CITY and DISTRICT wish to enter into this Agreement for the purpose
of designating a portion of the ARBA for additional benefits for retired CITY and DISTRICT
employees who are members of OCERS, in amounts which reflect the proportion which the total
contributions made to OCERS on behalf of CITY and DISTRICT employees bears to the total
contributions made on behalf of all employees who are members of OCERS.
G. CITY and DISTRICT acknowledge that OCERS is currently considering its
policies regarding the use of excess earnings of the retirement system to fund ARBA for
purposes other than additional health benefits and that this Agreement is entered into on an
interim basis, pending OCERS' final decision regarding those policies.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
Definitions.
(a) SJC ARBA is the account described in Paragraph 2 of this Agreement, for
the purpose of designating funds to make the additional benefit payments described herein.
(b) Defined terms in the County Agreement shall have the same meaning in
this Agreement.
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2. SJC ARBA.
OCERS has previously designated a portion of the ARBA as representing the CITY's and
the DISTRICT's share of ARBA. As of June 30, 1998, that portion totaled approximately
$755,000. As of the Effective Date of this Agreement, OCERS agrees to continuing to designate
such funds for the benefit of retired members of the CITY and the DISTRICT, and to designate a
pro rata share of additional available funds, as set forth below, for the same purpose. All such
designated funds shall be known as the "SJC ARBA." For purposes of this Paragraph 2, "pro,
rata share" shall be a sum determined (1) by designating from all amounts being transferred after
the Effective Date from time to time into ARBA from the "employer share" (as defined in the
County Agreement) an amount equal to one percent (1%) of the CITY's payroll for its
employees who are members of OCERS; and (2) by multiplying all amounts being transferred
from time to time into ARBA from Remaining Transferred Funds (as defined in the County
Agreement) by a fraction, the numerator of which shall be the total of all employee
contributions to OCERS during the preceding five (5) full calendar years made on behalf of
CITY and DISTRICT employees who are members of OCERS, and the denominator of which
shall be the total employee contributions made on behalf of all OCERS' members to OCERS
during the same period.
3. Additional Benefits.
(a) At the direction of the CITY, funds transferred to the SJC ARBA and any
earnings credited thereto by OCERS, shall be used to provide a retirement income supplement
("Supplement") to eligible retirees of the CITY and the DISTRICT. CITY shall be primarily
responsible for the administration of this program, and all expenses of administration associated
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with the program. CITY shall reimburse OCERS for any expenses of administration OCERS
may incur in connection with this program, not to exceed $1,000 for calendar year 1999.
(b) Effective July 1, 1997, the CITY entered into an operations and
maintenance agreement with the DISTRICT. As a part of this agreement, DISTRICT employees
were transitioned to the CITY workforce such that said employees became employees of the
CITY and may eventually retire from the CITY (See Exhibit A hereto for a listing of transitioned
employees).
(c) To the extent funds are available in the SJC ARBA, the amount of the
initial Supplement, for retirees of CITY except those retirees with prior DISTRICT service (See
Exhibit A), will be (for each retiree) $10.00 per month for each full year of service performed by
the retiree for the CITY while such retiree was an active member of OCERS, but in no event
shall such initial supplement exceed $250.00 per month for any retiree. The initial Supplement
amount for each retiree shall receive a cost -of -living adjustment annually based on CPI -U for the
Los Angeles/Long Beach Area not to exceed five percent (5%) annually. In computing a
retiree's years of service for purposes of calculating the amount of this Supplement, only years of
service with the CITY, or any predecessor agency of the CITY, will be included, and service
with any other governmental agency will not be included, whether or not such other
governmental agency participates in OCERS. This Supplement shall be paid to retirees of CITY
who have at least ten (10) years of credited service as of their effective date of retirement. As
used in this paragraph the term "credited service" shall refer to service credit earned as a member
of OCERS, but shall exclude service if any, with a governmental agency other than the CITY or
a predecessor agency of the CITY.
10990 78930.1 4
(d) To the extent funds are available in the SJC ARBA, the amount of the
Supplement, for retirees of CITY with prior DISTRICT service, will be (for each retiree)
calculated as follows:
Transitioned DISTRICT Employees retiring from the City from
July 1, 1997 through June 30, 2007 — The amount of the Supplement
will be (for each retiree) $5.00 per month per each full year of service
performed by the retiree for either the DISTRICT or the CITY while
such retiree was an active member of OCERS, but in no event shall
such Supplement exceed $150.00 per month for any retiree. In
computing the retiree's years of service for purposes of calculating
the amount of this Supplement, only years of service with the
DISTRICT and CITY, or any predecessor agency of the DISTRICT
or CITY, will be included, and service with any other governmental
agency will not be included, whether or not such other governmental
agency participates in OCERS. This Supplement shall be paid to
retirees of the CITY who have at least (5) years of credited service
with the DISTRICT as of the effective date of their retirement. Such
payments will commence upon approval of this agreement by both
CITY and OCERS, and shall be retroactive to July 1, 1997, unless the
member retired after July 1, 1997 in which case the payment will be
retroactive to the effective date of the member's retirement.
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2. Transitioned DISTRICT Employees retiring from the City on or after
July 1, 2007 — The amount of the initial Supplement will be (for each
retiree) $5.00 per month per each full year of service performed by
the retiree for the DISTRICT, provided such retiree has at least five
(5) years of credited service with the DISTRICT as of the effective
date of their retirement and $10.00 per month per each full year of
service performed by the retiree for the CITY while such retiree was
an active member of OCERS, but in no event shall such Supplement
exceed $150.00 per month for any retiree for DISTRICT service and
in no event shall such Supplement exceed $250.00 per month for any
retiree for CITY service. The initial Supplement calculated for CITY
service shall receive a cost -of -living adjustment annually based on
CPI -U for the Los Angeles/Long Beach Area up to maximum of five
percent (5%) annually. In no event shall the total Supplement
payable to a transitioned DISTRICT employee retiring from the CITY
on or after July 1, 2007 exceed the total of. (a) $150.00 per month
(without inflationary adjustments) for DISTRICT service plus (b)
$250.00 per month (subject to inflationary adjustments as provided in
the preceding sentence) for CITY service. In computing the retiree's
years of service for purposes of calculating the amount of this
Supplement. only years of service with either the DISTRICT or the
CITY, or any predecessor agency of the DISTRICT or CITY, will be
included, and service with any other governmental agency will not be
10990:78930.1
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included, whether or not such other governmental agency participates
in OCERS. This Supplement shall be paid to retirees of the CITY
who have at least ten (10) years of credited service with the CITY as
of their effective date of retirement.
(e) To the extent funds are available in the SJC ARBA, The amount of the
Supplement, for retirees of DISTRICT, will be (for each retiree) $5.00 per month per each full
year of service performed by the retiree for the DISTRICT while such retiree was an active
member of OCERS, but in no event shall such Supplement exceed $150.00 per month for any
retiree. In computing the retiree's years of service for purposes of calculating the amount of this
Supplement, only years of service with the DISTRICT, or any predecessor agency of the
DISTRICT, will be included, and service with any other governmental agency will not be
included, whether or not such other governmental agency participates in OCERS. This
Supplement shall be paid to retirees of the DISTRICT who have at least five (5) years of credited
service with the DISTRICT as of the date of their retirement. Such payments will commence
upon approval of this agreement by both CITY and Board, and shall be retroactive to January 1,
1996, unless the member retired after January 1, 1996 in which case the payment will be
retroactive to the effective date of the member's retirement. In determining the amount of any
retroactive payment hereunder, payments previously made from DISTRICT's portion of ARBA
(before transition to the SJC ARBA) shall be deducted from the amount of the retroactive
payment hereunder.
(f) No retiree shall have a vested right to continued payment of any
Supplement. No increase in the Supplement will occur on account of delayed commencement of
10990:78930.1
payment of the Supplement beyond the date on which a retiree first becomes eligible for
payment. No Supplement will be payable to a former employee of the CITY or DISTRICT
unless and until such person commences receiving a retirement allowance from OCERS based
on service with CITY or DISTRICT. Payments of said Supplement to any retiree will cease
upon the earliest to occur of the following: (1) the date as of which, in the sole opinion of
OCERS the fund balance in "SJC ARBA" is insufficient to continue to fund all such
Supplements; (2) for that portion of the Supplement paid under Subsections 3(c) and 3(d)(2)
based on CITY service, the date of the retiree's Medicare eligibility; (3) the date benefits cease
to be paid by OCERS to the retiree with respect to CITY or DISTRICT service, or the retiree's
eligibility to receive OCERS retirement benefits with respect to CITY or DISTRICT service
ceases; (4) the date of the retiree's death; or (5) the termination of this Agreement. No
Supplement will be payable to survivors of any retiree, and the amount of the Supplement paid to
a retiree shall not be included in the calculation of any survivor's allowance after such retiree is
deceased. Each Supplement is intended to provide the covered retiree with an enhancement to
his or her retirement benefit, and is subject to the provisions of the Government Code and other
applicable law. Neither the CITY nor OCERS shall have responsibility to pay any Supplement
to the extent sufficient funds in the SJC ARBA are not then available to be paid pro rata to all
eligible CITY and DISTRICT retirees under the terms of this Agreement.
(g) Specific provisions regarding eligibility for a determination of the
Supplement will be set forth from time to time in a written policy adopted by the CITY. The
terms and conditions of such policy shall be consistent with the terms and conditions set forth in
this Agreement, and shall be subject to approval by both the CITY and OCERS.
10990:78930.1
(h) Funds in the SJC ARBA shall be credited with investment earnings of
OCERS on a basis no less favorable than such earnings are credited to ARBA. OCERS shall
provide to the CITY, at least annually, financial statements reflecting the balance of the SJC
ARBA and all account activity therein. The direction contemplated to be given to OCERS by
the CITY regarding the application of SJC ARBA, shall be given within three (3) months
following the month in which OCERS and the CITY enter into this Agreement and as frequently
thereafter as may be appropriate. Such direction shall include a list of the retirees eligible to
receive a Supplement, and the amount of the Supplement payable to each retiree. CITY and
OCERS, through their authorized representatives, will consult and exchange relevant information
for the purpose of developing and maintaining the list.
4. Failure to Pay Supplemental Benefit.
If during the term of this Agreement, as defined below, the SJC ARBA has funds which
exceed current Supplements payable under this Agreement, and OCERS fails timely to pay those
benefits to CITY or DISTRICT retirees, as the case may be, the CITY may pay such
Supplements to such retirees directly and make a claim against OCERS for reimbursement of
such payments.
DISTRICT ARBA Agreement.
The Agreement dated September 17, 1996 by and between OCERS and DISTRICT is
hereby terminated and superceded in its entirety by this Agreement. All funds in ARBA
previously designated for the benefit of DISTRICT retirees shall be included in the SJC ARBA
as of the effective date of this Agreement.
10990:78930.1 9
6. Effect of Other ARBA Agreements.
(a) In addition to the County Agreement, OCERS has entered into agreements
relating to the ARBA with other districts and public agencies participating in OCERS. Nothing
herein is intended to nor shall adversely affect any of the rights of the parties to those
agreements, and no amendment, modification, or further agreement regarding ARBA between or
among those parties shall adversely affect the rights of OCERS, CITY, or DISTRICT under the
terms of this Agreement.
(b) Notwithstanding the foregoing, nothing herein shall limit or affect in any
manner whatsoever the right of the COUNTY and/or OCERS to alter, amend, modify,
supplement, eliminate or supercede the County Agreement or any term thereof, provided
however that the effect of such action on the CITY and the DISTRICT is similar to that on all
other districts and agencies participating in OCERS with agreements relating to the ARBA.
Term.
This Agreement shall continue in force and effect though and including September 30,
1999, at which date it shall be deemed terminated and of no further force or effect, unless
terminated earlier by either OCERS or CITY, as provided herein. This Agreement may be
terminated by either OCERS or CITY by giving written notice of termination to the other, which
termination shall be effective 90 days following the date of actual receipt of such notice by the
notified party. In the case of OCERS, such notice shall be given to OCERS' Administrator. In
the case of CITY, such notice shall be given to the Chair of the San Juan Capistrano City
Council. Upon termination, no further Supplement payments shall be made from the SIC
10990:78930.1 1 O
0
9
ARBA, and all funds previously designated to the SJC ARBA shall remain funds of OCERS, as
provided by law. DISTRICT shall have no right to terminate this Agreement.
8. Indemnity.
CITY hereby agrees to indemnify, defend and hold OCERS harmless from any and all
claims, losses, damages, demands, causes of action of any nature whatsoever, and any attorneys
fees, costs and expenses related thereto, made by any person, entity, public agency or district
arising out of or related to the provisions of this Agreement or any action taken or to be taken
pursuant hereto to the fullest extent permitted by law.
9. Representation of Authority.
Each parry hereto represents that it is duly authorized at law and in fact to enter into this
Agreement and that it has taken all necessary action to authorize the undersigned to execute this
Agreement on its behalf.
10. Miscellaneous.
The Recitals of this Agreement are true and correct and are incorporated herein by this
reference. This Agreement represents the entire agreement and understanding of the parties and
supercedes any other agreements, understandings or actions taken with respect to the subject
matter hereof. This Agreement may not altered, amended, modified, supplemented, terminated
or superceded except in a writing executed by each party hereto. This Agreement may be
executed in counterpart originals, which taken together shall constitute one and the same
agreement.
10990.79930.1 11
•` 0
WHEREFORE, the parties have approved and executed this Agreement effective as of
the day first written above.
ORANGE COUNTY EMPLOYEES
RETIREMWTSYSTE
By: / I' t,lLl 7� F
Thomas N. Fox
Its: Chairman of the Board of Retirement
CITY r
CAPISTRANO
By:
Its: ohn Greiner, Mayor
VALLF„Y'WATER DISTRICT
APPROVED AS TO FORM:
Steefel, Levitt & Weiss, P. C.
By: I Z4
Pf&rveVL. L. Leiderman
Attorneys for Orange County Employees
Retirement System
John Shaw, City Attorney
By:
Attorney Mr City of SanJuan Capistrano
And Capistrano Valley Water District
10990:79930.1 12
EXHIBIT "A"
TRANSITIONED EMPLOYEES
Pursuant to the Operations and Maintenance Agreement between the City of San
Juan Capistrano and the Capistrano Valley Water District (DISTRICT) dated July 1, 1997, each
and every DISTRICT employee, below the level of General Manager, became an employee of
the City of San Juan Capistrano (CITY). Additionally, the benefits set forth in the DISTRICT
Agreement for Supplemental benefits with OCERS are incorporated into the CITY Agreement
for Supplemental Benefits with OCERS. The following is the list of DISTRICT employees
transitioned to the CITY effective July 1, 1997.
Emplovee Name Hire Date
Ando, Stacie
05-18-97
Ando, Steve
02-21-89
Bauman, Eric
09-17-90
Best, John
09-02-69
Boessler, Harry
07-10-78
Brady, Karen
08-03-95
Brand, Neil
06-01-83
Clark, Bob
06-15-87
David, Conrad
05-06-91
Ducharm, Donna
04-23-90
Harris, Craig
07-09-91
Johnson, Tom
03-14-94
Kennedy, Francie
10-28-92
LaMothe, Jay
05-17-82
Martinez, Angel
03-05-97
Romero, Jeffrey
07-26-90
Scott, Georg'Ann
07-29-86
Smith, Michael
07-12-89
Vasquez, Rueben
04-21-69
Vaughn, Ray
09-12-88
Villalpando, Manny
10-02-79
Widner, Jim
08-12-91
Williams, Greta
09-07-89
109901 8930.1 13
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
2942 DAIMLER STREET, SANTA ANA, CA
H OF UNDERSTANDING
AGREEMENT
This Agreement is made and entered into this r44Lday of
S'1993 by and between the COUNTY OF ORANGE (hereinafter
OUN "
"C), a political subdivision of the State of California, and
the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public
retirement system organized and existing pursuant to the provisions
of the County Employees Retirement Law of 1937,
WHEREAS, OCERS provides and administers a program of
retirement benefits for the employees of the COUNTY and certain
other public agencies that participate in OCERS; and
WHEREAS, OCERS is administered by a Board of Retirement,
(hereinafter "Board") which is legally separate and independent of
the COUNTY; and
WHEREAS, COUNTY is interested in the operation of OCERS
because COUNTY provides a major portion of the funding of OCERS;
and
WHEREAS, COUNTY and OCERS desire to maximize the level of
benefits available to the members of OCERS while minimizing
employer contributions thereto; and
WHEREAS, it is the intent of the parties that this Agreement
apply only to COUNTY and not to the other public agency members of
OCERS; and
WHEREAS, OCERS will negotiate separately with each other
public agency member of OCERS regarding the disposition of the
Remaining Transferred Funds not transferred to ARBA,
NOW, THEREFORE, IT IS HEREBY AGREED between the parties as
follows:
1. Definitions:
"Adjusted Total Assets" are the total assets of OCERS
less accounts payable and less any other reserve accounts that the
Board deems appropriate.
"Unallocated Fund Balance" ("UFB") is the fund created by
annual earnings in excess of the amounts credited to contributions
and reserves. (Gov't Code Sect. 31592)
"County Advance Reserve" is a fund into which the surplus
in UFB in excess of the amount reserved by the Board may be
transferred. (Gov't Code Sect. 31592.2)
"Remaining Transferred Funds" are the portion of the
excess funds transferred from the UFB allocated for health benefit
use.
r
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
MEMORANDUM OF UNDERSTANDING - AGREEMENT
DECEMBER 14, 1992 Page 2
"Additional Retiree Benefit Account" ("ARBA") is that
portion of the "Remaining Transferred Funds" set aside exclusively
for paying towards health insurance for present and future retirees
of the COUNTY.
2. OCERS will establish a policy to maintain a reserve
against deficiencies (Gov't. Code Sec. 31592) of 5% of the adjusted
total assets of the retirement system that will become effective
when the condition precedent set forth in paragraph S, below, is
satisfied.
3. Any funds in the "UFB" in excess of the amount so
reserved by the Board will be transferred into the "County Advance
Reserve" and "Remaining Transferred Funds" in accordance with the
formulas set forth in paragraph 4.
4. From the excess UFB funds the Board will transfer this
year seventy-five percent (75%) into the "County Advance Reserve"
and to the County contributions to "ARBA" and twenty-five percent
(25%) into "Remaining Transferred Funds". For the first year the
County contribution toward "ARBA" shall be an amount equal to (it)
of County payroll subject to retirement contributions. This is a
one-time transfer only for the first year funding this Agreement.
The "Remaining Transferred Funds" may be commingled with other
funds of OCERS for investment purposes.
In future years, the "employer share" of the excess UFB
shall be determined by multiplying the excess UFB by a fra,_ic-,,
the numerator of which is the employer's contribution to OCERS
during the preceding ten (10) calendar years, and the denominator
of which is the total contributions to OCERS during the same
period. The "non -employer share" shall be the remainder of the
excess UFB. Of the employer's share, an amount equal to one
percent (1%) of County payroll subject to retirement contributions
for those bargaining units participating in a retiree medical
program shall be transferred from the excess UFB to "ARBA".
The remainder of employer share will be transferred to
the "County Advance Reserve." The non employer share shall be
transferred to "Remaining Transferred Funds."
5. A portion of the "Remaining Transferred Funds" will be
transferred to the "ARBA" account for the exclusive purpose of
paying towards health insurance for present and future retirees of
the COUNTY. To the extent that "ARBA" funds are available, the
Retirement Board will transfer sufficient funds from the "ARBA" to
the County Advance Reserve on a dollar for dollar basis to offset
the County costs of providing a retiree medical program. The
"ARBA'' will be credited with the same assumed rate of interest for
the County Advance Reserve to the extent that all other reserves
are credited and the Unallocated Fund Balance is in excess of 34 of
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
MEMORANDUM OF UNDERSTANDING - AGREEMENT
DECEMBER 14, 1992. Page 3
the adjusted total assets of the retirement fund. In addition to
the transfers described in 4 above and interest credits, the amount
of funds to be transferred to the "ARBA" from the "Remaining
Transferred Funds" will be based on the percentage of contributions
from County employees during the previous five (5) years compared
to total employee contributions to OCERS during the same time
period.
6. If in future years OCERS' return .on investments is
insufficient to credit the assumed rate of interest to all reserve
accounts, such deficiency will be made up by transferring funds out
of the UFB account but not so as to bring it below three percent
(33) of the adjusted total assets. If such transfer does not yield
sufficient funds to credit the assumed rate of interest to all
reserve accounts, then employer contributions to OCERS shall be
increased during the ensuing fiscal year by an amount which is the
lesser of: 1) the amount necessary to restore the adjusted total
assets to three percent (33); or, 2) an amount equal to one-half of
one percent (1/23) of the total assets; except that in no event
shall such increased employer contributions be less than the amount
necessary to maintain reserves of at least one percent (13) of
total assets.
7. Investment earnings in future years shall be credited
first to the reserve accounts of OCERS (at the assumed rate of
interest) and, second, to the UFB. If crediting UFB brings the UFB
to more that five percent (53) of the adjusted total assets then
any excess will be transferred into the County Advance Reserve, the
Remaining Transferred Funds account, and the ARBA account in
accordance with the formulas set forth in paragraph 4. and 5.
above.
S. COUNTY will meet with representatives of COUNTY's
recognized employee organizations to attempt to establish a funded
Retiree Medical Care Plan for future retirees of the COUNTY and
their eligible survivors. Unless and until mutually agreed to and
signed written memoranda of understanding are reached with at least
three (3) recognized representatives of employees of the County,
this Agreement will have no force or effect except paragraph 9.
9. In consideration of the Board executing this document,
COUNTY shall concurrently with its approval of this Agreement cause
the Board of Supervisors by resolution adopted by majority vote
make the provisions of Government Code Section 31529.5 applicable
in Orange County authorizing the Board to contract for the legal
services of an attorney in private practice.
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
MEMORANDUM OF VMDERSTANDING - AGREEMENT
DECEMBER 14, 1992 Page 4
10. The effective date of the Agreement shall be the 1st clay
of the month after the Chairman of the Board of Supervisors
executes the Agreement on behalf of COUNTY. "This Memorandum of
Understanding - Agreement shall supersede and replace the
Memorandum of Understanding - Agreement between the parties dated
March 13, 1992."
M94
Date of Execution %-f J `3 By
("COUNTY")
E
ORANGE COUNTY EMPLOYEES
RETIREMEN/T� SYSTEM ("OCERS")
Date of Execution - S' �3 By\� U.
Chairman, Board of Retirement
APPROVED AS TO FORM:
TERRY C. ANDRUS, COUNTY COUNSEL
By �- ,/ Deputy
C:MOUFNL12.14
SECOND AMENDMENT TO CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS
This Second Amendment to City of San Juan Capistrano Interim Agreement for
Supplemental Benefits ("Second Amendment") is made and entered effective as of they
0 0, by and among the CITY OF SAN JUAN CAPISTRANO, a public entity
(hereinafter, "CITY"), CAPISTRANO VALLEY WATER DISTRICT, a public entity
(hereinafter, "DISTRICT") and the ORANGE COUNTY EMPLOYEES RETIREMENT
SYSTEM, a public retirement system organized and existing pursuant to the provisions of the
County Employees Retirement Law of 1937 ("OCERS").
RECITALS
A. CITY, DISTRICT AND OCERS are parties to that certain CITY OF SAN JUAN
CAPISTRANO INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS dated as of the
8`h day of February, 1999, as amended ("Agreement').
B. CITY, DISTRICT AND OCERS wish to amend the Agreement to provide for an
extension of the term of the Agreement.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Extension of Term.
Paragraph 7 of the Agreement is hereby amended by deleting the date, "March 31,
2000" and inserting in lieu thereof the date, "September 30, 2000."
2. Remaining Terms Unchanged.
Except as expressly amended by Paragraph 1 of this Second Amendment, all
other terms and conditions of the Agreement shall remain unchanged and in full force and effect.
ZD
0'
10990:123073.1
3. Miscellaneous.
The Recitals of this Second Amendment are true and correct and are incorporated
herein by this reference. This Second Amendment may not be altered, amended, modified,
supplemented, terminated or superseded except in a writing executed by each party hereto. This
Second Amendment may be executed in counterpart originals, which taken together shall
constitute one and the same agreement.
WHEREFORE, the parties have approved and executed this Second Amendment
effective as of the day first written above.
ORANGE ••EN/PLOYEES
E
I iIts-
CTI'Y 0FS ..� JUA�PISTRANO
r
By: a�l+�e%
"Its: Collefie Campbell, Mayor
CAPISTRANO VALLEY /WATER DISTRICT
By: d
TtQ. 4tt Hart, Chairman
10990:123073.1 2
FIRST AMENDMENT TO CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS
This First Amendment to City of San Juan Capistrano Interim Agreement for
Supplemental Benefits ("First Amendment") is made and entered effective as of the 2 day of
� eA1999, by and among the CITY OF SAN JUAN CAPISTRANO, a public entity
(hereinafter, "CITY"), CAPISTRANO VALLEY WATER DISTRICT, a public entity
(hereinafter, "DISTRICT") and the ORANGE COUNTY EMPLOYEES RETIREMENT
SYSTEM, a public retirement system organized and existing pursuant to the provisions of the
County Employees Retirement Law of 1937 ("OCERS").
RECITALS
A. CITY, DISTRICT AND OCERS are parties to that certain CITY OF SAN JUAN
CAPISTRANO INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS dated as of the
8'' day of February, 1999 ("Agreement").
B. CITY, DISTRICT AND OCERS wish to amend the Agreement to provide for an
extension of the term of the Agreement.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
Extension of Term.
Paragraph 7 of the Agreement is hereby amended by deleting the date,
"September 30, 1999" and inserting in lieu thereof the date, "March 31, 2000."
2. Remaining Terms Unchanged.
Except as expressly amended by Paragraph 1 of this First Amendment, all other
terms and conditions of the Agreement shall remain unchanged and in full force and effect.
10990:104519.1
3. Miscellaneous.
The Recitals of this First Amendment are true and correct and are incorporated
herein by this reference. This First Amendment may not altered, amended, modified,
supplemented, terminated or superceded except in a writing executed by each party hereto. This
First Amendment may be executed in counterpart originals, which taken together shall constitute
one and the same agreement.
WHEREFORE, the parties have approved and executed this First Amendment effective
as of the day first written above.
ORANGE COUNTY EMPLOYEES
RETIREEMT SYST M
By: A"",
Its: Thomas N. Fox, Chairman of the Board
CITY AN JU CAPISTRANO
By:
Its: ohn Greiner, Mayor
CA71S�N Y W DISTRICT
By:
Its: Gil Jones, Chairman
10990:104519.1 2
C
CITY OF SAN JUAN CAPISTRANO
AGREEMENT FOR SUPPLEMENTAL BENEFITS
THIS AGREEMENT is made and entered into this 3rd day of February 1998, by
and between the CITY OF SAN JUAN CAPISTRANO, a public entity (hereinafter, "CITY"), and
the ORANGE COUNTY RETIREMENT SYSTEM ("OCRS"), a public retirement system organized
and existing pursuant to the provisions of the County Employees Retirement Law of 1937;
WHEREAS, OCRS provides and administers a program of retirement benefits for the
employees of the CITY, and also provides similar benefits for officers and employees of the County
of Orange ("COUNTY"), and certain other public agencies which have elected to participate in
OCRS; and
WHEREAS, the Retirement Fund managed by OCRS includes a surplus earnings reserve,
identified in this agreement as the "Unallocated Fund Balance" ("UFB"); and
WHEREAS, OCRS and the COUNTY have previously entered into an Agreement dated
January 5, 1993 ("County Agreement'), which establishes a procedure whereby a portion of the
"UFB" will be used to provide additional benefits for retirees; and
WHEREAS, in entering into such agreement, it was and is the intention of OCRS and the
COUNTY that funds from the "UFB" which are earmarked for additional benefits for retirees will be
available, on a pro rata basis, for retirees of each of the public agencies which participate in OCRS,
including the CITY;
NOW THEREFORE, IT IS HEREBY AGREED between the parties as follows:
Definitions:
"Adjusted Total Assets" are the total assets of OCRS less accounts payable and less
Page 1
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any other reserve accounts that the Board of Retirement of OCRS deems appropriate.
"Unallocated Fund Balance" ("UFB") is the fund created by annual earnings in excess
of the amounts credited to contributions and reserves (Govt. Code Sec. 31592).
"County Advance Reserve" is a fund into which the surplus in the "UFB" in excess
of the amount reserved by the Board may be transferred (Govt. Code Sec. 31592.2).
"Remaining Transferred Funds" are the portion of the excess funds transferred from
the "UFB" allocated for health benefits for retirees or other additional retiree benefits.
"Additional Retiree Benefit Account ("ARBA") is that portion of the "Remaining
Transferred Funds" set aside exclusively for paying towards health insurance for present and future
retirees of the COUNTY.
"District Additional Benefit Account ("DABA') is the account described in paragraph
5 below, for the purpose of accumulating funds pending commencement of benefit payments
described in such paragraph.
"Board" shall mean the Board of Retirement of OCRS.
"Reserve Accounts" shall mean the reserve accounts OCRS is required by law to
maintain, or that the Board deems appropriate for OCRS to maintain, and may include ARBA,
DABA, or any similar account for the payment of supplemental benefits to retirees only to the extent
deemed appropriate by the Board.
2. Reserve Against Deficiencies.
OCRS has established a policy maintaining a reserve against deficiencies (Govt. Code
Sec. 31592) of five percent (5%) of the adjusted total assets of the retirement system. Any funds in
the "UFB" in excess of the amount so reserved by the Board (hereinafter, "excess UFB") will be
Page 2
transferred into the "County Advance Reserve" and "Remaining Transferred Funds" in accordance
with the formulas set forth in paragraph 3, below. "Excess UFB", "adjusted total assets" and "reserve
accounts" shall be determined and applied in the same manner with respect to this agreement and all
similar agreements for supplemental benefits, entered into between OCRS and any other
governmental agency, irrespective of differences in the exact wording of the particular agreements.
3. Use of Excess UFB.
During the first year of the County Agreement, the Board will transfer seventy-five
percent (75%) of the "excess UFB" funds into the "County Advance Reserve" and to the COUNTY
contributions to "ARBA", and twenty-five percent (25%) into "Remaining Transferred Funds." For
the first year of the County Agreement, the COUNTY contribution toward "ARBA" shall be an
amount equal to one percent (11/6) of COUNTY payroll subject to retirement contributions. This is
a one-time transfer only for the first year of the County Agreement. The "Remaining Transferred
Funds" may be commingled with other funds of OCRS for investment purposes.
In subsequent years, the "employer share" of the "excess UFB" shall be determined
by multiplying the "excess UFB" by a fraction, the numerator of which is the total of all employer
contributions to OCRS during the preceding ten (10) calendar years, and the denominator of which
is the total contributions to OCRS during the same period. The "non -employer share" shall be the
remainder of the "excess UFB". Of the employer's share, an amount equal to one percent (1%) of
the employer's payroll subject to retirement contributions shall, during the first year of this agreement,
be transferred from the "excess UFB" to "DABA." Such transfer will be contingent on funds being
available in the "excess UFB" to make such transfer. If insufficient funds are available in the "excess
UFB" to make such transfer during the first year of this agreement, then such transfer shall be made
in the first year in which there are sufficient funds available in the "excess UFB" to so permit.
Page 3
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0
The remainder of the employer share shall be transferred to the "County Advance
Reserve". The non -employer share shall be transferred to "Remaining Transferred Funds". With
respect to the employer's share, there has not been nor shall there be, transferred from "excess UFB"
to either an ARBA or DABA account, or equivalent, held for the purpose of paying additional
benefits to employees or retirees of any governmental agency, an amount equal to more than one
percent (1%) of the respective employer's payroll subject to retirement contributions, and no such
one percent (1%) transfer has occurred or will occur more than once, unless the CITY's DABA
receives a one percent (1%) transfer a like number of times.
WINEWIMMI'll
(a) The County Agreement currently provides that a portion of the "Remaining
Transferred Funds" will be transferred to the "ARBA" account for the exclusive purpose of paying
a portion of the premium for health insurance for present and future retirees of the COUNTY. This
transfer will be subject to the terms and conditions in the County Agreement. The Balance of the
"Remaining Transferred Funds", not transferred to the "ARBA" will be available to fund additional
benefits for retired members of OCRS who are retired from one of the non -County agencies,
including the CITY.
5. Additional Benefits -- City Em lovee .
(a) A portion of the "Remaining Transferred Funds" shall be made available to fund
additional benefits for retirees of the CITY and shall be transferred to the CITY DABA account.
Said portion shall be a fraction which has as its numerator the total employee contributions to OCRS
made by the employees of the CITY and the DISTRICT (as defined below) within the previous five
(5) years, and as its denominator the total of all employee contributions made to OCRS within the
Page 4
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same period of time. At the direction of the CITY, such funds, and any investment income credited
thereto by OCRS, shall be used to provide a retirement income supplement to eligible retirees.
(b) Effective July 1, 1997, the CITY entered into a operations and maintenance
agreement with the Capistrano Valley Water District (DISTRICT). As a part of this agreement,
DISTRICT employees were transitioned to the CITY workforce such that said employees became
employees of the CITY and may eventually retire from the CITY (See Exhibit A for a listing of
transitioned employees). Pursuant to that agreement, the balance of the DISTRICT "DABA"
account as of July 1, 1997 shall be transferred to the CITY " DABA" account for the purpose of
funding supplemental benefits for these employees and DISTRICT retirees.
(c) The amount of the initial retirement income supplement, for retirees of CITY except
those retirees with prior DISTRICT service (See Exhibit A), will be (for each retiree) $10.00 per
month per each full year of service performed by the retiree for the CITY while such retiree was an
active member of OCRS, but in no event shall such initial supplement exceed $250.00 per month for
any retiree. The initial retirement income supplement amount for each retiree shall receive a cost -of -
living adjustment annually based on CPI for the Los Angeles/Long Beach Area up to maximum of
five percent (5%). In computing a retiree's years of service for purposes of calculating the amount
of this supplement, only years of service with the CITY, or any predecessor agency of the CITY, will
be included, and service with any other governmental agency will not be included, whether or not
such other governmental agency participates in OCRS. This supplement shall be paid to retirees of
CITY who retire on or after July 1, 1996 and have at least ten (10) years of credited service as of
their effective date of retirement. As used in this paragraph the term "credited service" shall refer to
service credit earned as a member of the Retirement System, but shall exclude service if any, with a
governmental agency other than the CITY or a predecessor agency of the CITY.
Page 5
0
9
(d) The amount of the retirement income supplement, for retirees of CITY with prior
DISTRICT service, will be (for etch retiree) calculated as follows:
1. Transitioned DISTRICT Employees retiring from the City from July 1, 1997
through June 30, 2007 - The amount of the retirement income supplement
will be (for each retiree) $5.00 per month per each full year of service
performed by the retiree for either the DISTRICT or the CITY while such
retiree was an active member of OCRS, but in no event shall such supplement
exceed $150.00 per month for any retiree. In computing the retiree's years of
service for purposes of calculating the amount of this supplement, only years
of service with the DISTRICT and CITY, or any predecessor agency of the
DISTRICT or CITY, will be included, and service with any other
governmental agency will not be included, whether or not such other
governmental agency participates in OCRS. This supplement shall be paid to
retirees of the CITY who have at least five (5) years of credited service with
the DISTRICT as of January 1, 1996. Such payments will commence upon
approval of this agreement by both CITY and Board, and shall be retroactive
to July 1, 1997, unless the member retired after July 1, 1997 in which case the
payment will be retroactive to the effective date of the member's retirement.
2. Transitioned DISTRICT Employees retiring from the City on or after July 1,
2007 - The amount of the initial retirement income supplement will be (for
each retiree) $5.00 per month per each full year of service performed by the
retiree for the DISTRICT, provided such retiree has at least five (5) years of
Page 6
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credited service with the DISTRICT as of January 1, 1996 and $10.00 per
month per each full year of service performed by the retiree for the CITY
while such retiree was an active member of OCRS, but in no event shall such
supplement exceed $150.00 per month for any retiree for DISTRICT service
and in no event shall such initial supplement exceed $250.00 per month for
any retiree for CITY service. The initial retirement income supplement
amount calculated for CITY service shall receive a cost -of -living adjustment
annually based on CPI for the Los Angeles/Long Beach Area up to maximum
of five percent (5%). In no event shall the total supplement payable to a
transitioned DISTRICT employee retiring from the CITY on or after July.l,
2007 exceed the total of. (a) $150.00 per month (without inflationary
adjustments) for DISTRICT service plus (b) $250.00 per month (subject to
inflationary adjustments as provided in the preceding sentence) for CITY
service. In computing the retiree's years of service for purposes of calculating
the amount of this supplement, only years of service with either the
DISTRICT or the CITY, or any predecessor agency of the DISTRICT or
CITY, will be included, and service with any other governmental agency will
not be included, whether or not such other governmental agency participates
in OCRS. This supplement shall be paid to retirees of the CITY who have
at least ten (10) years of credited service with the CITY as of their effective
date of retirement.
(e) The amount of the retirement income supplement, for retirees of DISTRICT, will be
(for each retiree) $5.00 per month per each full year of service performed by the retiree for
Page 7
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the DISTRICT while such retiree was an active member of OCRS, but in no event shall such
supplement exceed $150.00 per month for any retiree. In computing the retiree's years of
service for purposes of calculating the amount of this supplement, only years of service with
the DISTRICT, or any predecessor agency of the DISTRICT, will be included, and service
with any other governmental agency will not be included, whether or not such other
governmental agency participates in OCRS. This supplement shall be paid to retirees of the
DISTRICT who have at least five (5) years of credited service with the DISTRICT as of
January 1, 1996. Such payments will commence upon approval of this agreement by both
CITY and Board, and shall be retroactive to January 1, 1996, unless the member retired after
January 1, 1996 in which case the payment will be retroactive to the effective date of the
member's retirement. In determining the amount of any retroactive payment hereunder,
payments previously made from District's DABA (before transfer to the City DABA) shall
be taken into account.
(f) No person shall have a vested right to continued payment of such supplement. No
increase in the supplement will occur on account of delayed commencement of payment of
the supplement beyond the date on which a person first becomes eligible for payment. No
supplement will be payable to a former employee of the CITY or DISTRICT unless and until
such person commences receiving a retirement allowance from OCRS based on service with
CITY or DISTRICT. Payments of said supplement to any retiree will cease upon the earliest
to occur of the following: (1) the date as of which, in the opinion of the CITY and/or OCRS,
the fund balance in "DABA" is insufficient to continue to fund such retirement income
supplement, (2) for that portion of the supplement paid under Subsections 50 and 5(d)(2)
based on CITY Service, the date of the retiree's Medicare eligibility (3) the date benefits cease
to be paid by OCRS to the retiree with respect to CITY or DISTRICT service, or the retiree's
Page 8
i
9
eligibility to receive OCRS retirement benefits with respect to CITY or DISTRICT service
ceases, or (4) the date of the retiree's death. No income supplement will be payable to
survivors of any retiree pursuant to this Agreement, and the amount of the supplement paid
to a retiree shall not be included in the calculation of any survivor's allowance after such
retiree is deceased. This supplement is intended to provide each covered retiree with an
enhancement to his or her OCRS retirement benefit, and is subject to the provisions of
Government Code Sections 31691.1 and 31692. Neither the CITY nor OCRS shall have
responsibility to pay any supplemental benefit for which sufficient funds are not available
under the funding mechanism provided in this Agreement.
(g) Specific provisions regarding eligibility for a determination of the retirement income
supplement described herein will be set forth from time to time in a written supplemental
retirement income policy adopted by the CITY. The terms and conditions of such policy shall
be consistent with the terms and conditions set forth in this Agreement, and shall be subject
to approval by both the CITY and OCRS,
(h) The portion of the Remaining Transferred Funds which are transferred to the "DABA"
account shall be accounted for in the same manner as a segregated pool of assets held for the account
of the CITY and its eligible employees and retirees including DISTRICT retirees. Such funds shall
be credited with investment earnings of OCRS on a basis no less favorable than such earnings are
credited to "ARBA" or any other funds held for the purpose of paying additional benefits to
employees or retirees of the COUNTY or any non -COUNTY agency. The CITY shall receive, at
least annually, financial statements reflecting the balance of the "DABA" and all account activity
herein. The direction contemplated to be given to OCRS by the CITY regarding the application of
"DABA"s or Remaining Transferred Funds allocable to CITY/DISTRICT benefits, shall be given
within three (3) months following the month in which this Agreement is entered into by the CITY and
Page 9
0 0
OCRS. Such direction shall include a list of the retirees eligible to receive the supplemental
retirement income benefit, and the amount payable to each retiree. CITY and OCRS, through their
authorized representatives, will consult and exchange relevant information for the purpose of
developing said list.
6. Failure to Pay Supplemental Benefit.
If "DABA" has assets which exceed payables allocable to "DABA", and if OCRS fails
to pay directly to CITY/DISTRICT retirees the supplemental retirement benefit contemplated by this
Agreement, the CITY may pay the supplemental retirement benefit to such retirees directly, from such
funds as the CITY may have available. Then, to recover the cost of such payment, CITY may reduce
its contributions to OCRS in an amount equal to the lesser of (1) the assets in DABA minus any
payable allocable to DABA, or (2) the supplemental benefits paid by CITY to the retirees of
CITY/DISTRICT.
7. Future Years.
If in future years OCRS' return on investments is insufficient to credit the assumed rate
of interest to all reserve accounts, such deficiency will be made up by transferring funds out of the
"UFB" account, but not so as to bring it below three percent (3%) of the adjusted total assets. If such
transfer does not yield sufficient funds to credit the assumed rate of interest to all reserve accounts,
then employer contributions to OCRS shall be increased during the ensuing fiscal year by an amount
which is the lesser of (1) the amount necessary to restore the UFB account to three percent (3%) of
adjusted total assets; or (2) an amount equal to one-half of one percent ('/z%) of the City payroll
subject to retirement contributions to OCRS, except that in no event shall such increased employer
contributions be less than the amount necessary to maintain "UFB account" of at least one percent
(1%) of total assets.
Page 10
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Crediting of Investment E rein s.
Investment earnings of OCRS in future years shall be credited first to the reserve
accounts of OCRS (at the assumed rate of interest) and second, to the "UFB". If crediting the
"UFB"; brings the "UFB" to more than five percent (5%) of the adjusted total assets of the system,
then any excess (above 5% of adjusted total assets) will first be used to credit interest to the "ARBA,"
"DABA," and similar accounts. The interest credited to such accounts shall not exceed the OCRS
assumed rate of interest, but will not be in an amount which would lower the "UFB" to less than five
percent (5) of adjusted total assets. If there is still excess "UFB" after the ARBA, DABA, and similar
accounts have been credited with interest, such excess will be transferred into the "County Advance
Reserve", the "Remaining Transferred Funds" account, and the "ARBA" and "DABA' accounts in
accordance with the formulas set forth in paragraph 3 and 4 above.
9. Entire Agreement.
This shall represent the entire Agreement between the parties, except to the extent this
Agreement may be modified or supplemented by any addendum attached hereto, and duly agreed to
by the parties.
Page l l
WHEREFORE, the parties have approved and executed this Agreement effective as of the
date first written above.
APPROVED AS TO FORM:
Donald H. Rubin, Deputy
Orange County Counsel
APPROVED TO FORM:
John *w, City Attorney
A EST:
Cheryl Johns(A, Cio Clerk
ORANGECOUNTYRETIREMENT SYSTEM
CITY OF SAN JUALIR CAPISTRANO
City Manager
Capistrano Valley Water District has read the foregoing Agreement, approves it, and agrees to be
bound by its terms.
VALLEY WATER DISTRICT
General Manager
Page 12
0
TRANSITIONED EMPLOYEES
Pursuant to the Operations and Maintenance Agreement between the City of San Juan Capistrano and
the Capistrano Valley Water District (DISTRICT) dated July 1, 1997, each and every DISTRICT
employee, below the level of General Manager, became an employee of the City of San Juan
Capistrano (CITY). Additionally, the benefits set forth in the DISTRICT Agreement for
Supplemental Benefits with OCRS are incorporated into the CITY Agreement for Supplemental
Benefits with OCRS. The following is the list of employees transitioned effective July 1, 1997
Employee Name Hire Date
Ando, Stacie
05-18-87
Ando, Steve
02-21-89
Bauman, Eric
09-17-90
Best, John
09-02-69
Boessler, Harry
07-10-78
Brady, Karen
08-03-95
Brand, Neil
06-01-83
Clark, Bob
06-15-87
David, Conrad
05-06-91
Ducharm, Donna
04-23-90
Harris, Craig
07-09-91
Johnson, Tom
03-14-94
LaMothe, Jay
05-17-82
Martinez, Angel
03-05-97
Romero, Jeffrey
07-26-90
Scott, Georg'Ann
07-29-86
Smith, Michael
07-12-89
Vasquez, Rueben
04-21-69
Vaughn, Ray
09-12-88
Villalpando, Manny
10-02-79
Widner, Jim
08-12-91
Williams, Greta
09-07-89
Page 13
%
RETIREMENT 0
SYSTEM
Serving the Active and May 21,2003
Retimel Memhers
Otann(i Col n
LAPCO Cindy Russell
C,,.^ 0 SAN 11I, N City of San Juan Capistrano
Cv14111R,AM) 32400 Paseo Adelanto
San Juan Capistrano, CA 92675
CnL \0 Oi 010M.1
Oiawr.r Coi.rcTi Dear Cindy,
Ci w nai n & Fn^nw_+ 'I
Enclosed are two original RMBR Agreements between OCERS and the City of
Fnonurn,.rml San Juan Capistrano
SAN )OnQIIIN III[[,
I'K^N^P(TI^'I )N If you have any questions please contact me at 714 569-4818 or e-mail me at
(;oIRmnoR Ael No
tavresCn)ocers.org.
('mu l l Rr DISI lm i Thank you,
ORANt J. COL N I 1
Il^u=I Dulls Tracy Ayres --N
R1 i uLr.nu ,N I S: n v Secretary T V
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LUUGV SON
(closed to new
member's) .
UCI Mi i,I,.,i CTIIR MAY 2 7 2003
(dose(I to I'M
mcmbcn)
i
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM • 2223 4Yellinglon Avenue, Santa Ana, CA 92701
Telephom, (714) 558-6200 Far(714)558-6236
0
. 5/6/2003
D13
AGENDA ITEM
TO: George Scarborough, City Manager
FROM: Cynthia L. Russell, Administrative Services Director
SUBJECT: Consideration of Amended and Restated Agreement Re: Additional
Retirement Benefits Account (Orange County Employees Retirement
System)
RECOMMENDATION:
By motion, approve the Amended and Restated Agreement Re: Additional Retirement
Benefits Account between the City of San Juan Capistrano and the Orange County
Employees Retirement System (OCERS) to create the City's RMBR account, used to
provide a supplemental retirement amount to the City's retirees.
SITUATION:
In FY 1996-97 and FY1997-98, the City of San Juan Capistrano negotiated with the
Classified and Management Employees Associations and the Executive employees an
additional benefit to be paid to retirees from the Orange County Employees Retirement
System excess account, known as the Additional Retirement Benefit Account (ARBA).
ARBA is a portion of the Unallocated Fund Balance and subject to fluctuations in earnings.
Basically, the ARBA receives additional funds when earnings exceed the assumed rate of
interest to the statutory reserves and is depleted when earnings are insufficient to credit
the assumed rate of interest. There are no additional contributions made to the ARBA by
the active employees. Therefore, the balance of the ARBA is completely dependant on
OCERS return on investment. It has always been anticipated that ARBA will someday be
depleted based on the current retiree draw and our return on investment.
Anticipating an extremely large hit to the ARBA balances on that next valuation date, this
amended and restated agreement will establish and maintain a City RMBR account to be
used exclusively as a reserve against deficiency in the City's ARBA. The RMBR account
shall be maintained at a "Safety Level" of three years' worth of projected costs plus
reasonable expenses of administration. In the event that the balance of the City RMBR
account is less than the Safety Level, OCERS will first fund the RMBR account prior to
adding funds to ARBA.
All other provisions of the agreement are essentially the same. These revisions have been
reviewed and approved by the City and both employee associations.
Staff recommends that the City Council approve the attached amended and restated
agreement. Upon approval by the City Council, the agreement will be submitted to the
Orange County Employees Retireme"ystem Board of Directors fortheir consideration.
FOR CITY COUNCIL
0
Agenda Item
-2-
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
None.
NOTIFICATION:
San Juan Capistrano City Employees Association
San Juan Capistrano Management Employees Association
Orange County Employees Retirement System
ALTERNATE ACTIONS:
May 6, 2003
By motion, approve the Amended and Restated Agreement Re: Additional
Retirement Benefits Account between the City of San Juan Capistrano and the
Orange County Employees Retirement System (OCERS) to create the City's RMBR
account, used to provide a supplemental retirement amount to the City's retirees.
2. Request further information from staff.
RECOMMENDATION:
By motion, approve the Amended and Restated Agreement Re: Additional Retirement
Benefits Account between the City of San Juan Capistrano and the Orange County
Employees Retirement System (OCERS) to create the City's RMBR account, used to
provide a supplemental retirement amount to the City's retirees.
Respectfully submitted,
��Z. 64,(�
Cy thiell
Administrative Services Director
Attachment 1 - Amended and Restated Agreement Re: Additional Retirement
Benefits Account between the City of San Juan Capistrano and the
Orange County Employees Retirement System
P.Wdmin Services\department'AGENDA\2002-03\RMBR Agreement.wpd
AMENDED AND RESTATED
AGREEMENT RE: ADDITIONAL RETIREE BENEFIT ACCOUNT
This Amended and Restated Agreement re Additional Retiree Benefit Account
("Agreement") dated 2003 is entered into as of the Effective Date, as defined herein,
by and between the City of San Juan Capistrano, a public agency of the State of California
("CITY"), and the Orange County Employees Retirement System, a public retirement system
organized and existing pursuant to the provisions of the County Employees Retirement Law of
1937, as amended ("OCERS" or the "retirement system"). CITY and OCERS are sometimes
referred to herein individually as "Party" and collectively as "Parties."
RECITALS
A. OCERS provides and administers a program of retirement benefits for the
employees and retirees of the County of Orange ("County") and certain other public agencies
located within the County that participate in OCERS, including CITY, pursuant to Government
Code Sections 31450, et seq. ("CERL") and other applicable law.
B. CITY and OCERS are parties to an ARBA Agreement, dated February 8,
1999, concerning the funding of a supplemental benefit program for retired employees of the
CITY who are members of OCERS, and their eligible beneficiaries (the "CITY ARBA
Agreement") and other matters.
C. The County and OCERS have entered into an Amended and Restated
Memorandum of Understanding Agreement re: Additional Retiree Benefit Account, dated
August 27, 2002 ("County ARBA Agreement"), a true and correct copy of which is attached
hereto as Exhibit A for reference.
D. CITY and OCERS wish to amend and restate the CITY ARBA
Agreement, to be consistent with the County ARBA Agreement, and to accomplish other
objectives of the parties, as more particularly set forth herein.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the existence and
sufficiency of which the Parties hereby acknowledge, IT IS HEREBY AGREED AS
FOLLOWS:
1. Recitals. The foregoing RECITALS are true and correct and are
incorporated herein by this reference.
2. Amendment and Restatement of the ARBA Agreement. The Parties
hereby agree to amend and restate the CITY ARBA Agreement in this Agreement. This
Agreement is intended to and shall supercede the CITY ARBA Agreement in its entirety. Upon
10990:63181651 -1- ATTACHMENT 1
this Agreement becoming effective, the CITY ARBA Agreement shall be null and void and of no
further force or effect.
3. Intent of this Agreement. The intent of this Agreement is (a) to use a
portion of CITY Advance Reserves (as defined herein), as authorized by Section 31592.2 of
CERL, to provide a source of funding to help defray the cost to the CITY of providing
supplemental benefit grants to its retired employees who are members of OCERS and their
eligible survivors, and for reasonable expenses of administration of the benefit program, while
minimizing employer contributions to the retirement system; and (b) to make the CITY ARBA
Agreement consistent with the County ARBA Agreement.
4. Definitions. The following terms shall have the following definitions in
this Agreement.
"Additional Retiree Benefit Account" or "ARBA" is a portion of the
Unallocated Fund Balance (as defined herein) originally established by the ARBA Agreement, as
defined in the County ARBA Agreement, comprised of the Members' Share of Transferable
Funds (as defined herein) designated to help defray the cost to the County and other Districts,
including CITY, of providing supplemental and other benefit grants to their retired employees
who are members of OCERS and their eligible survivors, and for reasonable expenses of the
employers' administration of their benefit grant program.
"Employer Advance Reserves" is the reserve account in the retirement
fund comprised of (a) the contributions made into the fund from time to time by the County and
other employers, net of benefit payments, (b) the Employers' Share of Transferable Funds (as
defined herein), (c) the County and Employer RMBR Accounts (as defined herein), and (d)
accumulated investment earnings on all of the foregoing. "Employer Advance Reserves" has the
same meaning as the "County Advance Reserves" as defined in the County ARBA Agreement.
"CITY Members' Share of ARBA" is that portion of ARBA held for the
benefit of retired employees of the EMPLOYER who are members of OCERS and their eligible
survivors.
"Effective Date" shall have the meaning set forth in Paragraph 14 of this
Agreement.
"Investment Account" shall have the same meaning as set forth in the
County ARBA Agreement.
`Net Applicable Assets" is the total book value of assets of the retirement
system less the Unallocated Fund Balance (as defined herein), true payables (as determined from
time to time by OCERS' actuary), the Investment Account, the ARBA, and reserves established
by the Board of OCERS.
10990:6318165.2 -2-
"Net Unallocated Fund Balance" or "Net UFB" is the Unallocated Fund
Balance (as defined herein) less amounts in the ARBA and other reserves, including the UFB
Reserve (as defined herein), designated by the Board of OCERS.
"County and CITY RMBR Accounts" are those portions of the Employer
Advance Reserves maintained exclusively for the purpose of providing a source of funding to
help defray the cost to the County, the CITY and other employers participating in OCERS of
providing health and supplemental benefit grants to their retired employees who are members of
OCERS and their eligible survivors, and for reasonable expenses of the County, and other
Districts' administration of their benefit grant programs. The CITY's portion of the County and
Employer RMBR Accounts shall be referred to herein as the "CITY RMBR Account."
"Unallocated Fund Balance" or "UFB" is the fund created by earnings of
the retirement fund during any year in excess of (a) the total interest credited to contributions and
reserves during such year, pursuant to Sections 31592 and 31592.2 of CERL, and (b) amounts
determined by OCERS for deficiencies in interest earnings in other years, losses on investments
and other contingencies, as provided in Sections 31592 and 31592.2.
"Valuation Date" shall be the 31' day of December each year for which
OCERS' actuary prepares an annual valuation for purposes of establishing employer and
employee contributions into the retirement fund, for the fiscal year commencing on the next
following July 1.
5. Initial RMBR Transfer. As of the Effective Date, OCERS shall establish
and maintain a CITY RMBR Account as a sub -account of the Employer Advance Reserves, and
shall transfer on its books the sum of $ 150,000 from the ARBA to the CITY RMBR Account.
This sum is the amount determined by OCERS' actuary to represent three (3) years' projected
costs of the portion of CITY grants to be funded pursuant to this Agreement, under the CITY's
program of providing supplemental benefit grants to retired employees of the CITY who are
members of OCERS and their eligible survivors, plus reasonable expenses of the administration
of the supplemental benefit program. The funds in the CITY RMBR Account shall be used
exclusively for the purposes and in the manner set forth in Paragraph 10, below.
6. UFB Reserve. OCERS has established a policy of maintaining a reserve
against deficiencies in interest earnings in other years, losses on investments and other
contingencies, as provided in Sections 31592 and 31592.2, of five percent (5%) of the Net
Applicable Assets (the "UFB Reserve"). The Parties acknowledge that the Board of OCERS
may change the percentage level of the UFB Reserve from time to time, and that in the event the
level of UFB Reserve changes, the change shall have no effect on the other provisions of this
Agreement.
Transfers to Employer Advance Reserves and ARBA.
10990:63181652 -3-
a. As of the Valuation Date each year, OCERS shall determine, upon the
advice of its actuary, if there is available Net UFB in excess of funds to be transferred into the
CITY RMBR Account as required under Paragraph l Ob., below. Such available funds shall be
known as the "Transferable Funds." The Transferable Funds shall be divided in the manner set
forth in Paragraph 7b., below, resulting in the CITY's Share of Transferable Funds and the CITY
Members' Share of Transferable Funds. OCERS shall transfer on its books the CITY's Share of
Transferable Funds to Employer Advance Reserves. OCERS shall transfer on its books the CITY
Members' Share of Transferable Funds to the CITY Members' Share of ARBA.
b. The CITY's Share of Transferable Funds shall be determined in the
following manner:
(1) First, by multiplying the Transferable Funds by a fraction, the
numerator of which is the amount of all employer contributions to OCERS during the ten
(10) calendar years immediately preceding the Valuation Date, and the denominator of
which is the total of all employer and employee contributions to OCERS made during the
same period. The result shall be known as the "Employers' Share of Transferable
Funds." The balance of Transferable Funds shall be known as the "Members' Share of
Transferable Funds."
(2) Second, by multiplying the Employers' Share of Transferable
Funds by a fraction, the numerator of which is the amount of all employer contributions
to OCERS made by the CITY during the ten (10) calendar years immediately preceding
the Valuation Date, and the denominator of which is the total employer contributions to
OCERS made by the County, the CITY and other participating Districts during the same
period. The result shall be the "CITY's Share of Transferable Funds" and shall be
distributed as set forth in Paragraph 7a, above.
c. The CITY Members' Share of Transferable Funds shall be determined
by multiplying the Members' Share of Transferable Funds by a fraction, the numerator of which
is the amount of all employee contributions to OCERS made by CITY's employees during the
ten (10) calendar years immediately preceding the Valuation Date, and the denominator of which
is the total employee contributions to OCERS by the employees of the County, the CITY and
other participating Districts during the same period. The result shall be the "CITY Members'
Share of Transferable Funds" and shall be transferred on OCERS' books as set forth in
Paragraph 7a., above.
d. The remaining, untransferred balances of the Employers' Share of
Transferable Funds and the Members' Share of Transferable Funds shall be held in separate sub -
accounts of UFB, for the purpose of funding health and supplemental benefit programs
administered by other Districts participating in OCERS, pursuant to separate agreements to be
entered into by and between such Districts and OCERS.
10990:6318165.2 -4-
0 9
8. Transfers from ARBA for Retiree supplemental Benefits. For each fiscal
year in which the CITY provides a program of supplemental benefits to retired employees of the
CITY who are members of OCERS and their eligible survivors, OCERS shall transfer on its
books from ARBA into Employer Advance Reserves an amount, subject to availability,
sufficient to pay for the portion of the supplemental benefit grants to be funded pursuant to this
Agreement which the CITY provides to retired employees of the CITY who are members of
OCERS and their eligible survivors, and for reasonable expenses of the administration of the
supplemental benefit program during that fiscal year.
9. Interest Crediting on Accounts. OCERS shall credit interest on ARBA at
the assumed rate of interest as established by OCERS from time to time, currently eight percent
(8%) per annum; provided, however, that such interest is available for crediting from Net UFB.
OCERS shall not credit interest on the CITY RMBR Account.
10. CITY RMBR Account, Shortfalls in ARBA.
a. The CITY RMBR Account shall be used by OCERS exclusively as a
reserve against a deficiency in the CITY Members' Share of ARBA. To the extent that in any
fiscal year, the CITY Members' Share of ARBA is insufficient or unavailable to provide the full
amount required to be transferred to Employer Advance Reserves pursuant to paragraph 8, above
(an "ARBA Shortfall"), OCERS shall transfer on its books an amount equivalent to the ARBA
Shortfall from the CITY RMBR Account to Employer Advance Reserves for the exclusive
purpose as set forth in paragraph 8 above.
b. As of each Valuation Date, on the advice of its actuary, OCERS shall
maintain a balance in the CITY RMBR Account not less than an amount determined by OCERS'
actuary to represent three (3) ensuing fiscal years' worth of projected costs of the portion of the
supplemental benefit grants provided by the CITY to be funded pursuant to this Agreement, plus
reasonable expenses of administration of the supplemental benefit program during those fiscal
years (the "Safety Level.") In the event that the balance of the CITY RMBR Account at any
time is less than the Safety Level, OCERS shall transfer out of first available Net UFB sufficient
funds to return the CITY RMBR Account to the Safety Level. This transfer shall occur prior to
the transfers referred to in Paragraph 7, above.
11. Shortfalls in Net Unallocated Fund Balance. As of June 30 and December
31 of any fiscal year, if OCERS' earnings are insufficient to credit the assumed rate of interest to
all statutory reserves, such deficiency shall be made up at that time by transferring funds out of
the UFB. If such transfer results in a Net UFB of less than three percent (3%) of Net Applicable
Assets, then all employer contributions to OCERS shall be increased during the immediately
following fiscal year by an amount which is the lesser of (a) the amount necessary to restore the
Net UFB to three percent (3%) of Net Applicable Assets or (b) an amount equal to one-half of
one percent (1/2%) of employer payroll subject to retirement contributions.
10990:6318165.2 -5-
0
12, Further Actions. Each Party shall take all actions and do all things, and
execute, with acknowledgment or affidavit if required, any and all documents and writings, that
reasonably may be necessary or proper to achieve the purposes and objectives of this Agreement
and the transactions contemplated hereby.
13. Termination Date; Renewal.
a. The term of this Agreement shall be through and including December
31, 2007, the second anniversary of the tri -annual actuarial valuation of the retirement system
performed by the system's actuary as of December 31, 2001; provided, however, that this
agreement may be terminated sooner than December 31, 2007 if either the governing body of the
CITY or the Board of Retirement of OCERS determines, in the sole and exclusive exercise of its
duties, that it does not wish this Agreement to remain in force beyond the end of the calendar
year in which such determination is made. In the event of such determination, the determining
body or Board shall give the other not less than 60 days written notice in advance of the end of
that calendar year of its desire for earlier termination, and this Agreement shall thereafter
terminate effective at midnight on December 31 of that year.
b. Following the effective date of termination, (i) all funds remaining in
the CITY RMBR Account shall remain in that account, without further credit for interest, and
shall be used for the purposes and in the manner provided for under Paragraph 10 of this
Agreement after termination of this Agreement for so long as they are available; (ii) all funds
remaining in the CITY Members' Share of ARBA shall be deemed to be Net UFB and there
shall no longer be any funds designated as CITY Members' Share of ARBA; and (iii) OCERS
shall have no further obligation to transfer on its books any funds pursuant to this Agreement.
c. Notwithstanding the foregoing subparagraph (a), the Parties may
mutually agree to extend the term of this Agreement in such interval(s) and upon such terms as
they may later agree upon in a writing executed prior to the termination of this Agreement.
14. Effective Date. This Agreement shall be effective as of the date on which
all Parties have signed this Agreement.
15. Entire Agreement. This Agreement represents the Parties' entire
agreement and constitutes the only existing and binding agreement between them with respect to
the matters stated herein. This Agreement supersedes any and all prior agreements,
representations, promises and understandings of any kind, whether oral or written, express or
implied, between the Parties regarding the subject matters of this Agreement. Nothing herein is
intended to nor shall affect any party's rights and obligations under CERL. In entering into this
Agreement, each Party disclaims any reliance upon any representation, fact or opinion that is not
otherwise set forth in writing in this Agreement. Each Parry hereby waives any rules of
interpretation or construction contained in California Civil Code § 1654.
10990:6318165.2 -6-
0 0
16. Survival. The terms and conditions of Paragraphs 6, I O.b., 11, 14, 15 and
17 of this Agreement shall survive its termination.
17. Modification. This Agreement may not be modified, altered, amended or
otherwise changed in any respect except by a writing duly executed and signed by each Party.
18. Authority to Execute Agreement. Each Party represents and warrants that
the person executing this Agreement on its behalf as indicated below has M power and
authority to do so.
Dated:
WIN
CITY OF SAN JUAN CAPISTRANO
Un
Mayor
APPROVED AS TO FORM:
Dated:
i►j1ZIJ13
CITY OF SAN JUAN CAPISTRANO
By:
John haw
City Attorney
Dated:
2003
BOARD OF RETIREMENT OF THE
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM
Chair, Board of Retirement
APPROVED AS TO FORM:
Dated:
2003
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM
By:
Julie E. Wyne
General Counsel
10990:6318165.2 -7-
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 (FAX)
1v1v1r. sanjuancapistrano. org
May 7, 2003
•
IA[�I,OIIRI
• Bluuna � 1961
1776
NOTIFICATION OF ACTION BY THE
CITY COUNCIL OF SAN JUAN CAPISTRANO
MEMBERS OF THE CITY COUNCIL
DIANE L BATHGATE
JOHN S. GELFF
WYATTHART
JOESOTO
DAVID M. SWERDLIN
CITYMANAGER
GEORGESCARBOROUGH
On May 6, 2003 the City Council of San Juan Capistrano met regarding:
"Consideration of Amended and Restated Agreement Re: Additional Retirement
Benefits Account (Orange County Employees Retirement System)" Item No. D13
The following action was taken at the meeting: Amended and restated agreement
RE: Additional Retirement Benefits Account between the City of San Juan
Capistrano and the Orange County Employees Retirement System (OCERS) to
create the City's RMBR account, used to provide a supplemental retirement
amount to the City's retirees, approved.
(3) original, executed agreements are being transmitted to the Orange County
Employees Retirement System with a copy of this notice. (1) original agreement should
be returned, pending approval by OCERS.
If you have any questions regarding this action, please contact Cynthia L. Russell,
Administrative Services Director at 443-6301 for more detailed information.
Thank you,
Meo ahan, CMC
Cit Cler
Cc: San Juan Capistrano City Employees Association; San Juan Capistrano
Management Employees Association; Orange County Employees Retirement
System; Cynthia L. Russell, Administrative Services Director
San Juan Capistrano: Preserving the Past to Enhance the Future
0
0
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675 j% I 11 0 11111 8 1
(949) 493-1171 ISIIIfI0f1 X96( MEMBERS OF THE CITY COUNCIL
(949) 493.1053 (FAX) 1776 DIANE BATHGATE
• • JOHNS.GELFF
lvuvly sanjuancapistrano. org MATTHART
• JOESOTO
DAVID M. SWERDLIN
CITY MANAGER
NOTIFICATION OF MEETING OF POTENTIAL INTEREST GEORGESCARBOROUGH
OF THE SAN JUAN CAPISTRANO CITY COUNCIL
The City Council of San Juan Capistrano will meet at 7:00 p.m. on May 6, 2003 in the
City Council Chamber in City Hall, to consider: "Consideration of Amended and
Restated Agreement Re: Additional Retirement Benefits Account (Orange County
Employees Retirement System)' — Item No. D13
If you have specific thoughts or concerns regarding this item, you are encouraged to
participate in this decision making process. You can communicate with the City Council
through correspondence addressed to the Council and/or by attending the meeting and
speaking to the Council during the public meeting.
Correspondence related to this item must be received at City Hall by 5:00 p.m. on
Monday, May 5, 2003 to allow time for the Council to consider its content.
If you would like to speak at the meeting, please complete a blue 'Request to Speak'
form found inside the entrance to the Council Chamber. This form is turned in at the
staff table, just in front of the Council dais. You will be called to speak by the Mayor
when the item is considered.
You have received this notice at the request of the City staff member Cynthia L. Russell,
Administrative Services Director. You may contact that staff member at (949) 443-6301
with any questions.
The agenda, including agenda reports, is available to you on our web site:
www.sanivancapistrano.oro. If you would like to subscribe to receive a notice when
agendas are posted to the web site, please make that request by sending an e-mail to:
council-aaend asCobsan iu ancapistano. org.
Meg Monahan, CMC
City Clerk
cc: San Juan Capistrano City Employees Association; San Juan Capistrano
Management Employees Association; Orange County Employees Retirement
System; Cynthia L. Russell, Administrative Services Director
* Received staff report
DRUG USE
1a
San Juan Capistrano: Preserving the Past to Enhance the Future
0
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10. ADOPTION OF RESOLUTION ACCEPTING GRANT DEED FOR
ROSENBAUM SEWER PUMP STATION UPGRADE TENTATIVE TRACT MAP
15771 (CIP NO. 717) (THE OLSON COMPANY) (670.50)
As set forth in the Report of February, 15, 2000, from the Engineering and Building
Director, the following Resolution was adopted accepting the Grant Deed for recording
from the Olson Company for the Rosenbaum Sewer Pump Station Upgrade:
RESOLUTION NO. 00-2-15-2, ACCEPTING GRANT DEED FOR
ROSENBAUM SEWER PUMP STATION (OLSON-SAN JUAN LLCM -A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO ACCEPTING A GRANT DEED FOR THE ROSENBAUM
SEWER PUMP STATION (OLSON-SAN JUAN, LLC)
11. APPROVAL OF WAIVER OF FEES FOR RENTAL OF SAN JUAN
CAPISTRANO COMMUNITY CENTER (LEAGUE OF WOMEN VOTERS)
39( 0.30)
As set forth in the Report dated February 15, 2000, from the Community Services
Director, the Community Center rental fee waiver was approved for the League of
Women Voters' public information meetings to be held February 16, 2000, and April 6,
2000.
12. APPROVAL OF SECOND AMENDMENT TO INTERIM AGREEMENT FOR
SUPPLEMENTAL BENEFITSOCERS 6010.50
As set forth in the Report dated February 15, 2000, from the Administrative Services
Director, the Second Amendment to the Interim Agreement for Supplemental Benefits
between the City of San Juan Capistrano, Capistrano Valley Water District and Orange
County Employees Retirement System was approved extending the term to
September 30, 2000, to allow OCERS time to complete its evaluation.
PUBLIC HEARINGS
TEMPORARY STREET CLOSURE - ANNUAL SWALLOWS DAY PARADE
AND MERCADO, SATURDAY MARCH 25. 2000 (150.60)
Proposal:
Consideration of a request for temporary street closures and issuance of a parade
permit in conjunction with the Annual Swallow's Day Parade and Mercado scheduled
for Saturday, March 25, 2000
Applicant:
San Juan Capistrano Fiesta Association, P. O. Box 532, San Juan Capistrano, CA
92693
Written Communications:
Reportdated February 15, 2000, from the Engineering and Building Director, forwarding
maps of the parade route and necessary street closures for both the parade and
City Council Minutes -5- 2115100
0y i •
AGENDA ITEM February 15, 2000
TO: George Scarborough, City Manager
FROM: Cynthia L. Russell, Administrative Services Director
SUBJECT: Consideration of Second Amendment to Interim Agreement for Supplemental
Benefits (Orange County Employees Retirement System)
RECOMMENDATION:
By motion, approve the Second Amendment to the Interim Agreement for Supplemental
Benefits between the City of San Juan Capistrano, Capistrano Valley Water District and
Orange County Employees Retirement System.
SITUATION:
In FY 1996-97 and FY1997-98, the City of San Juan Capistrano negotiated with the
Classified and Management Employees Associations and the Executive employees an
additional benefit to be paid to retirees from the Orange County Employees Retirement
System excess account, known as the Additional Retirement Benefit Account (ARBA). On
February 2, 1999, the City approved an interim agreement for supplemental benefits
providing the negotiated benefit. As OCERS was in the process of evaluating ARBA, the
interim agreement had a sunset date of September 30, 1999. The agreement amendment
occurs every six months and is necessary to keep the benefit in place while OCERS
continues its evaluation and does not affect the eligibility or calculation of the monthly
stipend amount. The current amended agreement will sunset on March 31, 2000. This
amendment provides for an extension to September 30, 2000. Should the OCERS Board
not complete their review by that date, the agreement will be extended for another six -
month period.
Staff recommends that the City Council approve the attached second amendment to the
interim agreement. Upon approval by the City Council, the agreement will be submitted to
the Orange County Employees Retirement System Board of Directors for their
consideration.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
FOR CITY COUNCIL AGENI A J/ 2,
0
Agenda Item
NOTIFICATION:
-2-
41
San Juan Capistrano City Employees Association
San Juan Capistrano Management Employees Association
Orange County Employees Retirement System
ALTERNATE ACTIONS:
February 15, 2000
By motion, approve the Second Amendment to the Interim Agreement for
Supplemental Benefits between the City of San Juan Capistrano, Capistrano Valley
Water District and Orange County Employees Retirement System.
2. Request further information from staff.
RECOMMENDATION:
By motion, approve the Second Amendment to the Interim Agreement for Supplemental
Benefits between the City of San Juan Capistrano, Capistrano Valley Water District
Orange County Employees Retirement System.
Respectfully submitted,
Cthia L. Russell
A inistrative Services Director
Exhibit 1 - Second Amendment to Interim Agreement for Supplemental Benefits
CLR
STEEFEL •
LEVITT
& WEISS
A PROFFSsmmN CORPORATION
ONE EMBARCADERO CENTER • THIRTIETH FLOOR • SAN FRANCISCO, CALIFORNIA 94111-3719
TELEPHONE: (415) 788-0900. FAcsimma (415) 788-2019
January 26, 2000
Cynthia L. Russell
Administrative Services Director
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Second Amendment to Interim Agreement for
Supplemental Benefits
Dear Ms. Russell:
Enclosed with this letter are two originals of a Second Amendment to City of San
Juan Capistrano Interim Agreement for Supplemental Benefits, extending its term to September
30, 2000. In order to place this on the Board's agenda for action before the current expiration of
March 31, 2000, we will need to have you return both originals to me not later than March 1,
2000, each signed by authorized representatives of the City of San Juan Capistrano and the
Capistrano Valley Water District. (If you can have the executed documents to me by February
10 we might be able to get it on the Board's February 22 meeting agenda). Upon receipt, if
adopted by the Board of Retirement, I will have the Second Amendment executed for OCERS
and will return a fully -executed original to you for your files.
Please give me a call if you have any questions.
c: Jim Buck w/encl.
Lawrence S. Offner, Esq. w/encl.
10990:123075.1
Sin rely,
1 4 U( 11' 1
H ey L. iderman
11 f4N282100
• SAN FRANCISCO, CALIFORNIA • • STAMFORD, CONNECTICUT
14 • 0
The Resolution accepted the improvements as complete and directed the City Clerk to
forward a Notice of Completion to the County Recorder. Staff was authorized to release
the following surety 35 days after recordation of the Notice of Completion:
Bond No.
Type
Amount
5276 -FP
Street
$200,722
5274 -FP
Storm Drain
$51,590
5275 -FP
Sewer
$74,992
5276 -FP
Landscape/Irrigation
$154,124
5273 -FP
Monumentation
$4,000
One-year bonds totaling 25% of all original bond amounts, excluding landscape and
irrigation were posted with the City as warranty against defects; a one-year warranty
bond of 20% of the landscape and irrigation bond amount has been posted with the
Marbella Homeowners Association.
5. APPROVAL OF PERSONAL SERVICES AGREEMENT TO PROVIDE
NO. 113) (WESELOH DEALERSHIP/RBF AND ASSOCIATES) (600.30)
As set forth in the Report dated September 7, 1999, from the Engineering and Building
Director, the Personal Services Agreementwith Robert Bein, William Frost & Associates
was approved to provide oversight during the Camino Capistrano improvements, in the
amount of $32,390 for the period ending May 31, 2000.
6. AWARD OF CONTRACT- CRACK SEALING PROGRAM ON CITY STREETS
(RUBBERIZED CRACKFILLER SEALANT INC.) (600.30)
As set forth in the Report dated September 7, 1999, from the Public Works Director, the
contract for the 1999-2000 crack sealing program on City streets was awarded to
Rubberized Crackfiller Sealant, Inc., on an as needed basis, not to exceed $25,000.
7. APPROVAL OF AGREEMENT FOR DESIGN SERVICES - HIGH WEST SIDE
PIPELINE PROJECT (ROBERT BEIN. WILLIAM FROST AND ASSOCIATES
600.30
As set forth in the Reportdated September 7, 1999, from the Public Works Director, the
Personal Services Agreement with Robert Bein, William Frost and Associates to provide
civil engineering design services for the High West Side Pipeline Project was approved
in the amount of $208,048 for the period ending January 1, 2000.
8. APPROVAL OF FIRST AMENDMENT TO INTERIM AGREEMENT FOR
RETIREMENT SYSTEM) (600.50)
n
r
As set forth in the Report dated September 7, 1999, from the Administrative Services
Director, the First Amendment to the Interim Agreement for Supplemental Benefits
City Council Minutes -3- 9/7/99
4
0 0
between the City, the Water District and the Orange County Employees Retirement
System was approved to extend the term of the agreement to March 31, 2000 in order
to allow the Retirement System time to complete its evaluation of the Additional
Retirement Benefit Account.
(WESELOH FAMILY LIMITED PARTNERSHIP) (600.30)
As set forth in the Reportdated September 7, 1999, from the Engineering and Building
Director, the Development Agreement for Construction of Water Facilities for the
property known as the Weseloh Honda and Chevrolet Dealership, located at 33555 and
33633 Camino Capistrano, was approved with the Weseloh Family Limited Partnership.
10. ADOPTION OF RESOLUTION APPROVING AN APPLICATION FOR GRANT
FUNDS FROM THE TRANSPORTATION ENHANCEMENT ACTIVITY
PROGRAM - VEREDA BIKEWAY IMPROVEMENTS AT THE LOSSAN RAIL
CORRIDOR (930.50)
As set forth in the Report dated September 7, 1999, from the Engineering and Building
Director, the following Resolution was adopted approving an application for grant funds
from the Transportation Enhancement Activity Program for improvement of the
undercrossing of the Vereda Bikeway at its intersection with the railroad along the north
levee of San Juan Creek:
RESOLUTION NO. 99-9-7-2, AUTHORIZATION TO APPLY FOR
GRANT FUNDS FOR THE IMPROVEMENT OF THE VEREDA
BIKEWAY CROSSING OF THE LOSSAN RAIL CORRIDOR -
TRANSPORTATION ENHANCEMENT ACTIVITY PROGRAM - A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING APPLICATION FOR
FUNDS FOR THE TRANSPORTATION ENHANCEMENT ACTIVITY
PROGRAM UNDER THE 1998 TRANSPORTATION EQUITY ACT FOR
THE 21ST CENTURY FOR THE IMPROVEMENT OF THE VEREDA
BIKEWAY CROSSING OF THE LOSSAN RAIL CORRIDOR
11. RECEIVE AND FILE INVESTMENTS AS OF JULY 31, 1999 (350.30)
The City Treasurer's Report of Investments as of July 31, 1999, was ordered received
and filed.
The following item was removed from the Consent Calendar at the request of staff:
APPROVAL OF WAIVER OF BONDING REQUIREMENTS- BOYS AND GIRLS
CLUB LEASE AGREEMENT (600.20)
Written Communications:
Report dated September 7, 1999, from the City Attorney, advising that the Boys and
Girls Club of Capistrano Valley had requested that the provisions of Section 8 of the
City Council Minutes -4- 9/7/99
AGENDA ITEM September 7,1999
TO: George Scarborough, City Manager
FROM: Cynthia L. Russell, Administrative Services Director
SUBJECT: Consideration of First Amendment to Interim Agreement for
Supplemental Benefits (Orange County Employees Retirement
System)
RECOMMENDATION:
By motion, approve the First Amendment to the Interim Agreement for
Supplemental Benefits between the City of San Juan Capistrano, Capistrano
Valley Water District and the Orange County Employees Retirement.
SITUATION:
In FY 1996-97 and FY1997-98, the City of San Juan Capistrano negotiated with
the Classified and Management Employees Associations and the Executive
employees an additional benefit to be paid to retirees from the Orange County
Employees Retirement System excess account, known as the Additional
Retirement Benefit Account (ARBA). On February 2, 1999, the City approved an
interim agreement for supplemental benefits providing the negotiated benefit. As
OCERS was in the process of evaluating ARBA, the interim agreement had a
sunset date of September 30, 1999. This amendment is a housekeeping item
necessary for keeping the benefit in place while OCERS continues its evaluation
and does not affect the eligibility or calculation of the monthly stipend amount.
The first amendment provides for an extension to March 31, 2000. Should the
OCERS Board not complete their review by March 31, 2000, the agreement will
be extended for another six month period.
Staff recommends that the City Council approve the attached first amendment to
the interim agreement. Upon approval by the City Council, the agreement will be
submitted to the Orange County Employees Retirement System Board of
Directors for their consideration.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
None. �,
FOR CRY COUNCIL AGENCYA�fL J
0
Agenda Item
NOTIFICATION:
-2-
San Juan Capistrano City Employees Association
San Juan Capistrano Management Employees Association
Orange County Employees Retirement System
ALTERNATE ACTIONS:
September 7, 1999
1. By motion, approve the First Amendment to the Interim Agreement for
Supplemental Benefits between the City of San Juan Capistrano,
Capistrano Valley Water District and the Orange County Employees
Retirement.
2. Request further information from staff.
RECOMMENDATION:
By motion, approve the First Amendment to the Interim Agreement for
Supplemental Benefits between the City of San Juan Capistrano, Capistrano
Valley Water District and the Orange County Employees Retirement.
Respectfully submitted,
Cy hia L. Russell
Administrative Services Director
Exhibit 1 - First Amendment to Interim Agreement for Supplemental Benefits
CLR
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 (FAX)
February 4, 1999
Mr. Harvey Liederman
Orange County Employees Retirement System
2223 Wellington Avenue
Santa Ana, California 92701
Re: Additional Retirement Benefits Account
Dear Mr. Liederman:
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
MATT HART
GILJONES
DAVID M. SWERDLIN
CITY MANAGER
GEORGE SCARBOROUGH
At their meeting of February 2, 1999, the City Council of the City of San Juan Capistrano
and the Capistrano Valley Water District both approved the revised Agreement for
Supplemental Benefits from the Additional Retirement Benefits Account.
Three copies of the agreement have been signed by the City and the District and are
enclosed. Upon approval of the Board of Supervisors, please return two fully -executed
copies, one for the City and one for the Water District.
Thank you for your cooperation. If I can be of further assistance, I can be reached at
443-6308.
Very truly yours,
Cheryl John'6on
City Clerk/Clerk of the Board
Enclosures
cc: Administrative Services Director
San Juan Capistrano: Preserving the Past to Enhance the Future
7. APPROVAL OF REVISED AGREEMENT WITH THE ORANGE COUNTY
EMPLOYEES RETIREMENT SYSTEM FOR SUPPLEMENTAL BENEFITS
As set forth in the Report dated February 2, 1999, from the Administrative Services Director,
the revised Agreement between the City of San Juan Capistrano, Capistrano Valley Water
District and the Orange County Employees Retirement System for supplemental benefits
from the additional retirement benefits account was approved.
ADOPTION OF RESOLUTION ESTABLISHING "TOW AWAY -NO PARKING"
ZONE ON PASEO NOGAL NORTH OF LA ZANJA STREET 1570.301
set forth in the Report dated February 2, 1999, from the Director of Engineering and
!ding, the following Resolution authorizing installation of a "Tow Away - No Parking
�m. to 3:00 p.m. Thursdays -Holidays Excepted" zone on Paseo Nogal was adopted:
- A RESOLUTION OF THE CITY
COUN OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA,
ESTABLI ING A "TOW AWAY - NO PARKING 8:00 A.M. TO 3:00
P.M. THURS YS -HOLIDAYS EXCEPTED" ZONE ON PASEO NOGAL
The following item was remove drom the Consent Calendar at the request of persons in the
audience:
Written Communications:
Report dated February 2, 1999, from the Directo
a petition had been received requesting instalh
between Via Madonna and Avenida Avilla, and
Engineering and Building, advising that
� of speed humps on Calle San Remo
approval of the request.
Public Comments:
1. Sally Cannon, 28001 Paseo del Marino, stated herSupp of the installation of speed
humps and requested that the City Council make this pro' ct a priority in the 1999-
2000 budget.
2. Kim Herkewitz, 27892 Calle San Remo, stated her support o e installation of
speed humps noting that this was a primary route used by the c' dren going to
Ambuehl school.
City Council Minutes
-4-
2/2/99
r
AGENDA ITEM February 2,1999
TO: George Scarborough, City Manager
FROM: Cynthia L. Russell, Administrative Services Director
SUBJECT: Consideration of Revised Agreement with Orange County Employees
Retirement System for Supplemental Benefits from the Additional
Retirement Benefits Account
RECOMMENDATION:
By motion, approve the revised Agreement between the City of San Juan
Capistrano, Capistrano Valley Water District and the Orange County Employees
Retirement System for Supplemental Benefits from the Additional Retirement
Benefits Account.
SITUATION:
In FY 1996-97 and FY1997-98, the City of San Juan Capistrano negotiated with
the Classified and Management Employees Associations and the Executive
employees an additional benefit to be paid to retirees from the Orange County
Employees Retirement System excess account, known as the Additional
Retirement Benefit Account (ARBA). Criteria has been negotiated to determine
eligibility and to calculate the monthly stipend. On July 1, 1997, the Capistrano
Valley Water District (CVWD) employees were transitioned to the City of San Juan
Capistrano through an Operations and Maintenance Agreement. This agreement
provides for the CVWD Additional Retirement Benefit Account (ARBA) to be
transferred to the City's ARBA and benefits set forth in the District's Agreement
for Supplemental Benefits to be incorporated into the City's Agreement.
On February 3, 1998, the City Council approved a draft agreement setting forth
the agreed-upon terms of these negotiations, instituting an ARBA retirement
income supplement for eligible City retirees and transferring CVWD ARBA
amounts and benefits, retroactive to July 1, 1996. On April 13, 1998, OCERS
approved the draft agreement. Prior to final execution of that agreement by all
parties, OCERS had a change in legal counsel and the agreement was never
executed by OCERS. In October 1998, OCERS contacted the City requesting
revisions to the original agreement. These revisions are of a housekeeping
nature and do not affect the eligibility or calculation of the monthly stipend
amount. They include the following:
FOR CIN COUNCIL AGE'
GE D,,�
V 07
AGENDA ITEM -2- February 2, 1999
1. Referencing the County Agreement as an attachment, rather than restating
its terms in the City's agreement, and
2. Reimbursement from the ARBA to
exceed $1,000.00 annually. This
substantiated costs.
OCERS for administration costs not to
amount is to be based on actual
3. Making this an interim agreement pending OCERS' review of its policies
regarding the use of ARBA funds. These items need to be revised by
OCERS prior to September 30, 1999. Should the OCERS Board not
complete their review by September 30, 1999, the agreement will be
extended.
All other provisions of the agreement are essentially the same. These revisions
have been reviewed and approved by the City and both employee associations.
Staff recommends that the City Council approve the attached revised agreement.
Upon approval by the City Council, the agreement will be submitted to the Orange
County Employees Retirement System Board of Directors for their consideration.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
None.
NOTIFICATION:
San Juan Capistrano City Employees Association
San Juan Capistrano Management Employees Association
Orange County Employees Retirement System
ALTERNATE ACTIONS:
1. By motion,
approve the
revised Agreement between
the City of San Juan
Capistrano,
Capistrano
Valley Water District and
the Orange County
Employees
Retirement
System for Supplemental
Benefits from the
AGENDA ITEM -3- February 2, 1999
Additional Retirement Benefits Account.
2. Request further information from staff.
RECOMMENDATION:
By motion, approve the revised Agreement between the City of San Juan
Capistrano, Capistrano Valley Water District and the Orange County Employees
Retirement System for Supplemental Benefits from the Additional Retirement
Benefits Account.
Respectfully submitted,
CyWthia L. Russell
Administrative Services Director
Exhibit 1 - Draft Revised Agreement between the City, Capistrano Valley Water
District and Orange County Employees Retirement System
CLR
•
February 5, 1998
Joan
I
}.� IPIOMOAAI{4
f`Ixnuxm 1961
1776
Mr. Tom Bogdan, Assistant Administrator
Orange County Employees Retirement System
2223 Wellington Avenue
Santa Ana, California 92701
Re: Agreement for Supplemental Benefits
Dear Mr. Bogdan:
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
WYATT HART
GIL JONES
DAVID M. SWERDLIN
CITY MANAGER
GEORGESCARBOROUGH
At their meeting of February 3, 1998, the City Council of the City of San Juan Capistrano
and the Capistrano Valley Water District both considered and approved an agreement
relating to additional benefits to be paid to retirees from the Orange County Retirement
System excess account, known as the Additional Retirement Benefit Account.
Three copies of the Agreement are enclosed. Upon approval and signature by the Orange
County Retirement System, please return two copies to this office so that both the City and
the Capistrano Valley Water District may have an 'original" for their files.
We appreciate your assistance in this matter. Please feel free to contact Cynthia
Pendleton, Administrative Services Director, at 443-6301 if you have any questions.
Very truly yours,
)�
CherylJohnso
City Clerk
Enclosure
CC' Cynthia Pendleton
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171
RETIREMENT RErE!V7D
SYSTEM s,
JUL
February 10, 1999
Cindy Pendleton
Administrative Services Director
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
RE: City of San Juan Capistrano
interim Agreement for Supplemental Benefits
Dear Cindy:
Attached in an original, signed copy of the Interim Agreement for
Supplemental Benefits for your files.
Yours truly,
Mary Almond, Secretary
Office of the Administrator
:ma
Enclosure
r1RANGE. COUNM EVIPLM EES RETIRE\IF\T SISTE\1 • Iliilur,tnn.a� �rtur. S'<ntnr.lr�rr. C.1 ,+'.-til
T lcnknne r-14, �� -n'00 Fat 141 ;,<-f)' n
AYES:
NOES:
SENT:
1. MOTION T RE
The Reading of
2. APPROVAL OF
JANUARY 6. 1998
Council Members Campbell, Hart, Swerdlin and Mayor Jones
None
Council Member Greiner
by title only was approved.
The Minutes of the Regular eting of January 6, 1998 were approved as submitted.
3. FILE F JANU 15 1998 (300,30)
The List of Demands dated January 6,1 in the total amount of $1,190,034.11 was ordered
received and filed.
U
5.
AND OCTOBER 1997 (330.50)
The Cash Balances by Fund Report for September and October 1997 was ordered
received and filed.
HILLS ESTATES AND PASEO ADELANTO) (600 30)
As set forth in the Report dated February 3, 1998 from the Director of V
ineering and
Building, the plans and specifications were approved and Staff was authorized to ceive bids
for the slurry seal of City streets in the Stoneridge Estates, Capistrano Royale andCRuntry
Hills Estates developments, and Paseo Adelanto.
6. CONSWERATION OF AGREEMENT WITH ORANGE O INTY EMPLOUU
RETIREMENT SYSTEM FOR SUPPLEMENTAL BENEFITS FROM THE
ZI ADDI IONAL RETIREMENT BENEFITS ACCOUNT (600.50)
As set forth in the Report dated February 3, 1998 from the Administrative Services Director,
the Agreement with the Orange County Retirement System for Supplemental Benefits from
the Additional Retirement Benefits Account was approved.
The following
Swerdlin:
removed from the Consent Calendar at the request of Council Member
City Council Minutes -3- 2/3/98
0 •
AGENDA ITEM
TO: George Scarborough, City Manager
FROM: Cynthia L. Pendleton, Administrative Services Director
February 3, 1998
SUBJECT: Consideration of Agreement with Orange County Retirement System for
Supplemental Benefits from the Additional Retirement Benefits Account
RECOMMENDATION:
By motion, approve Agreement with the Orange County Retirement System for
Supplemental Benefits from the Additional Retirement Benefits Account.
SITUATION:
In FY 1996-97 and FY1997-98, the City of San Juan Capistrano negotiated with the
Classified and Management Employees Associations and the Executive employees an
additional benefit to be paid to retirees from the Orange County Retirement System excess
account, known as the Additional Retirement Benefit Account (ARBA).
Criteria has been negotiated to determine eligibility and to calculate the monthly stipend.
The attached draft agreement sets forth the agreed-upon terms of these negotiations and
institutes an ARBA Retiree Medical Stipend, retroactive to July 1, 1996. A couple of items
are still being negotiated, and should their outcome be different than that which is included
in the draft agreement, a revised agreement will be provided to the City Council prior to the
meeting on February 3, 1998.
Staff recommends that the City Council approve the attached agreement. Upon approval
by the City Council, the agreement will be submitted to the Orange County Retirement
System Board of Directors for their consideration.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable
FINANCIAL CONSIDERATIONS:
None.
v
FOR CITY COUNCIL AGEC'
3/7
' • •
Agenda Item - 2 - February 3, 1998
NOTIFICATION:
San Juan Capistrano City Employees Association
San Juan Capistrano Management Employees Association
Orange County Retirement System
ALTERNATE ACTIONS:
By motion, approve Agreement with the Orange County Retirement System for
Supplemental Benefits from the Additional Retirement Benefits Account.
Request further information from staff.
RECOMMENDATION:
By motion, approve Agreement with the Orange County Retirement System for
Supplemental Benefits from the Additional Retirement Benefits Account.
Respectfully submitted,,
L.
Cy hia L. Pendleton
Administrative Services Director
CLP:JMR
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I�FF��v�n 6y �pcM2o �./g/q,
CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FOR S11PPT,EMFNTAL BENEFITS
This Agreement ("Agreement") is made and entered effective as of the 8th day of
February 1999, by and among the CITY OF SAN JUAN CAPISTRANO, a public entity
(hereinafter, "CITY"), CAPISTRANO VALLEY WATER DISTRICT, a public entity
(hereinafter. "DISTRICT") and the ORANGE COUNTY EMPLOYEES RETIREMENT
SYSTEM, a public retirement system organized and existing pursuant to the provisions of the
County Employees Retirement Law of 1937 ("OCERS").
RECITALS
A. OCERS provides and administers a program of retirement benefits for the
employees of the County of Orange ("COUNTY"), and the CITY, DISTRICT and certain other
public agencies which have elected to participate in OCERS.
B. The Retirement Fund managed by OCERS includes an earnings reserve,
identified as the "Unallocated Fund Balance" ("UFB").
C. OCERS and the COUNTY have previously entered into a Memorandum of
Understanding Agreement, dated January 5, 1993, as amended ("County
Agreement"), a true and correct copy of which is attached hereto, which
establishes a procedure whereby funds derived from portions of the UFB known
as "Employer's Share" and "Remaining Transferred Funds" are designated on
the books of OCERS as an account known as the "Additional Retiree Benefit
Account" ("ARBA") for the purpose of funding additional health benefits for
certain retired members of OCERS.
10990:78930.1
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E
D. Since in or about 1993 OCERS has designated on its books portions of ARBA for
the purpose of funding additional benefits for retired members of the CITY and of the
DISTRICT.
E. OCERS and DISTRICT entered into an Agreement dated September 17, 1996
providing for the use of a portion of ARBA to fund additional benefits for retired members of
the DISTRICT. The employees of the DISTRICT were transitioned into the CITY workforce as
CITY employees on or about July 1, 1997 and may eventually retire from CITY service.
F. OCERS, CITY and DISTRICT wish to enter into this Agreement for the purpose
of designating a portion of the ARBA for additional benefits for retired CITY and DISTRICT
employees who are members of OCERS, in amounts which reflect the proportion which the total
contributions made to OCERS on behalf of CITY and DISTRICT employees bears to the total
contributions made on behalf of all employees who are members of OCERS.
G. CITY and DISTRICT acknowledge that OCERS is currently considering its
policies regarding the use of excess earnings of the retirement system to fund ARBA for
purposes other than additional health benefits and that this Agreement is entered into on an
interim basis, pending OCERS' final decision regarding those policies.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
Definitions.
(a) SJC ARBA is the account described in Paragraph 2 of this Agreement, for
the purpose of designating funds to make the additional benefit payments described herein.
(b) Defined terms in the County Agreement shall have the same meaning in
this Agreement.
10990:78930.1 2
0 0
2, SJC ARBA.
OCERS has previously designated a portion of the ARBA as representing the CITY's and
the DISTRICT's share of ARBA. As of June 30, 1998, that portion totaled approximately
$755,000. As of the Effective Date of this Agreement, OCERS agrees to continuing to designate
such funds for the benefit of retired members of the CITY and the DISTRICT, and to designate a
pro rata share of additional available funds, as set forth below, for the same purpose. All such
designated funds shall be known as the "SJC ARBA." For purposes of this Paragraph 2, "pro
rata share" shall be a sum determined (1) by designating from all amounts being transferred after
the Effective Date from time to time into ARBA from the "employer share" (as defined in the
County Agreement) an amount equal to one percent (1%) of the CITY's payroll for its
employees who are members of OCERS; and (2) by multiplying all amounts being transferred
from time to time into ARBA from Remaining Transferred Funds (as defined in the County
Agreement) by a fraction, the numerator of which shall be the total of all employee
contributions to OCERS during the preceding five (5) full calendar years made on behalf of
CITY and DISTRICT employees who are members of OCERS. and the denominator of which
shall be the total employee contributions made on behalf of all OCERS' members to OCERS
during the same period.
3. Additional Benefits.
(a) At the direction of the CITY, funds transferred to the SIC ARBA and any
earnings credited thereto by OCERS, shall be used to provide a retirement income supplement
("Supplement") to eligible retirees of the CITY and the DISTRICT. CITY shall be primarily
responsible for the administration of this program, and all expenses of administration associated
10990:78930.1
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with the program. CITY shall reimburse OCERS for any expenses of administration OCERS
may incur in connection with this program, not to exceed $1,000 for calendar year 1999.
(b) Effective July 1, 1997, the CITY entered into an operations and
maintenance agreement with the DISTRICT. As a part of this agreement, DISTRICT employees
were transitioned to the CITY workforce such that said employees became employees of the
CITY and may eventually retire from the CITY (See Exhibit A hereto for a listing of transitioned
employees).
(c) To the extent funds are available in the SJC ARBA, the amount of the
initial Supplement, for retirees of CITY except those retirees with prior DISTRICT service See
Exhibit A), will be (for each retiree) $10.00 per month for each full year of service performed by
the retiree for the CITY while such retiree was an active member of OCERS, but in no event
shall such initial supplement exceed $250.00 per month for any retiree. The initial Supplement
amount for each retiree shall receive a cost -of -living adjustment annually based on CPI -U for the
Los Angeles/Long Beach Area not to exceed five percent (5%) annually. In computing a
retiree's years of service for purposes of calculating the amount of this Supplement, only years of
service with the CITY, or any predecessor agency of the CITY, will be included, and service
with any other governmental agency will not be included, whether or not such other
governmental agency participates in OCERS. This Supplement shall be paid to retirees of CITY
who have at least ten (10) years of credited service as of their effective date of retirement. As
used in this paragraph the term "credited service" shall refer to service credit earned as a member
of OCERS, but shall exclude service if any, with a governmental agency other than the CITY or
a predecessor agency of the CITY.
1099078930.1
(d) To the extent funds are available in the SJC ARBA, the amount of the
Supplement, for retirees of CITY with prior DISTRICT service, will be (for each retiree)
calculated as follows:
Transitioned DISTRICT Employees retiring from the City from
July 1, 1997 through June 30, 2007 — The amount of the Supplement
will be (for each retiree) $5.00 per month per each full year of service
performed by the retiree for either the DISTRICT or the CITY while
such retiree was an active member of OCERS, but in no event shall
such Supplement exceed $150.00 per month for any retiree. In
computing the retiree's years of service for purposes of calculating
the amount of this Supplement, only years of service with the
DISTRICT and CITY, or any predecessor agency of the DISTRICT
or CITY, will be included, and service with any other governmental
agency will not be included, whether or not such other governmental
agency participates in OCERS. This Supplement shall be paid to
retirees of the CITY who have at least (5) years of credited service
with the DISTRICT as of the effective date of their retirement. Such
payments will commence upon approval of this agreement by both
CITY and OCERS, and shall be retroactive to July 1, 1997, unless the
member retired after July 1, 1997 in which case the payment will be
retroactive to the effective date of the member's retirement.
10990:78930.1
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Transitioned DISTRICT Employees retiring from the City on or after
July 1, 2007 — The amount of the initial Supplement will be (for each
retiree) $5.00 per month per each full year of service performed by
the retiree for the DISTRICT, provided such retiree has at least five
(5) years of credited service with the DISTRICT as of the effective
date of their retirement and $10.00 per month per each full year of
service performed by the retiree for the CITY while such retiree was
an active member of OCERS, but in no event shall such Supplement
exceed $150.00 per month for any retiree for DISTRICT service and
in no event shall such Supplement exceed $250.00 per month for any
retiree for CITY service. The initial Supplement calculated for CITY
service shall receive a cost -of -living adjustment annually based on
CPI -U for the Los Angeles/Long Beach Area up to maximum of five
percent (5%) annually. In no event shall the total Supplement
payable to a transitioned DISTRICT employee retiring from the CITY
on or after July 1, 2007 exceed the total of: (a) $150.00 per month
(without inflationary adjustments) for DISTRICT service plus (b)
$250.00 per month (subject to inflationary adjustments as provided in
the preceding sentence) for CITY service. In computing the retiree's
years of service for purposes of calculating the amount of this
Supplement. only years of service with either the DISTRICT or the
CITY, or any predecessor agency of the DISTRICT or CITY, will be
included, and service with any other governmental agency will not be
10990:78930.1
0
included, whether or not such other governmental agency participates
in OCERS. This Supplement shall be paid to retirees of the CITY
who have at least ten (10) years of credited service with the CITY as
of their effective date of retirement.
(e) To the extent funds are available in the SJC ARBA, The amount of the
Supplement, for retirees of DISTRICT, will be (for each retiree) $5.00 per month per each full
year of service performed by the retiree for the DISTRICT while such retiree was an active
member of OCERS, but in no event shall such Supplement exceed $150.00 per month for any
retiree. In computing the retiree's years of service for purposes of calculating the amount of this
Supplement, only years of service with the DISTRICT, or any predecessor agency of the
DISTRICT, will be included, and service with any other governmental agency will not be
included, whether or not such other governmental agency participates in OCERS. This
Supplement shall be paid to retirees of the DISTRICT who have at least five (5) years of credited
service with the DISTRICT as of the date of their retirement. Such payments will commence
upon approval of this agreement by both CITY and Board, and shall be retroactive to January 1,
1996, unless the member retired after January 1, 1996 in which case the payment will be
retroactive to the effective date of the member's retirement. In determining the amount of any
retroactive payment hereunder, payments previously made from DISTRICT's portion of ARBA
(before transition to the SJC ARBA) shall be deducted from the amount of the retroactive
payment hereunder.
(f) No retiree shall have a vested right to continued payment of any
Supplement. No increase in the Supplement will occur on account of delayed commencement of
10990:78930.1
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payment of the Supplement beyond the date on which a retiree first becomes eligible for
payment. No Supplement will be payable to a former employee of the CITY or DISTRICT
unless and until such person commences receiving a retirement allowance from OCERS based
on service with CITY or DISTRICT. Payments of said Supplement to any retiree will cease
upon the earliest to occur of the following: (1) the date as of which, in the sole opinion of
OCERS the fund balance in "SJC ARBA" is insufficient to continue to fund all such
Supplements; (2) for that portion of the Supplement paid under Subsections 3(c) and 3(d)(2)
based on CITY service, the date of the retiree's Medicare eligibility; (3) the date benefits cease
to be paid by OCERS to the retiree with respect to CITY or DISTRICT service, or the retirees
eligibility to receive OCERS retirement benefits with respect to CITY or DISTRICT service
ceases; (4) the date of the retiree's death; or (5) the termination of this Agreement. No
Supplement will be payable to survivors of any retiree, and the amount of the Supplement paid to
a retiree shall not be included in the calculation of any survivor's allowance after such retiree is
deceased. Each Supplement is intended to provide the covered retiree with an enhancement to
his or her retirement benefit, and is subject to the provisions of the Government Code and other
applicable law. Neither the CITY nor OCERS shall have responsibility to pay any Supplement
to the extent sufficient funds in the SJC ARBA are not then available to be paid pro rata to all
eligible CITY and DISTRICT retirees under the terms of this Agreement.
(g) Specific provisions regarding eligibility for a determination of the
Supplement will be set forth from time to time in a written policy adopted by the CITY. The
terms and conditions of such policy shall be consistent with the terms and conditions set forth in
this Agreement, and shall be subject to approval by both the CITY and OCERS.
10990:78930.1
(h) Funds in the SJC ARBA shall be credited with investment earnings of
OCERS on a basis no less favorable than such earnings are credited to ARBA. OCERS shall
provide to the CITY, at least annually, financial statements reflecting the balance of the SJC
ARBA and all account activity therein. The direction contemplated to be given to OCERS by
the CITY regarding the application of SJC ARBA, shall be given within three (3) months
following the month in which OCERS and the CITY enter into this Agreement and as frequently
thereafter as may be appropriate. Such direction shall include a list of the retirees eligible to
receive a Supplement, and the amount of the Supplement payable to each retiree. CITY and
OCERS, through their authorized representatives. will consult and exchange relevant information
for the purpose of developing and maintaining the list.
4. Failure to Pay Supplemental Benefit.
If during the term of this Agreement, as defined below, the SJC ARBA has funds which
exceed current Supplements payable under this Agreement, and OCERS fails timely to pay those
benefits to CITY or DISTRICT retirees, as the case may be, the CITY may pay such
Supplements to such retirees directly and make a claim against OCERS for reimbursement of
such payments.
5. DISTRICT ARBA Agreement.
The Agreement dated September 17, 1996 by and between OCERS and DISTRICT is
hereby terminated and superceded in its entirety by this Agreement. All funds in ARBA
previously designated for the benefit of DISTRICT retirees shall be included in the SJC ARBA
as of the effective date of this Agreement.
1099MS930.I
• 0
6. Effect of Other ARBA Agreements.
(a) In addition to the County Agreement, OCERS has entered into agreements
relating to the ARBA with other districts and public agencies participating in OCERS. Nothing
herein is intended to nor shall adversely affect any of the rights of the parties to those
agreements, and no amendment, modification, or further agreement regarding ARBA between or
among those parties shall adversely affect the rights of OCERS, CITY, or DISTRICT under the
terms of this Agreement.
(b) Notwithstanding the foregoing, nothing herein shall limit or affect in any
manner whatsoever the right of the COUNTY and/or OCERS to alter, amend, modify,
supplement, eliminate or supercede the County Agreement or any term thereof, provided
however that the effect of such action on the CITY and the DISTRICT is similar to that on all
other districts and agencies participating in OCERS with agreements relating to the ARBA.
Term.
This Agreement shall continue in force and effect though and including September 30,
1999, at which date it shall be deemed terminated and of no further force or effect, unless
terminated earlier by either OCERS or CITY, as provided herein. This Agreement may be
terminated by either OCERS or CITY by giving written notice of termination to the other, which
termination shall be effective 90 days following the date of actual receipt of such notice by the
notified party. In the case of OCERS, such notice shall be given to OCERS' Administrator. In
the case of CITY, such notice shall be given to the Chair of the San Juan Capistrano Cit}'
Council. Upon termination, no further Supplement payments shall be made from the SJC
10990:78930.1 10
0
0
ARBA, and all funds previously designated to the SJC ARBA shall remain funds of OCERS, as
provided by law. DISTRICT shall have no right to terminate this Agreement.
8. Indemnity.
CITY hereby agrees to indemnify, defend and hold OCERS harmless from any and all
claims, losses, damages, demands, causes of action of any nature whatsoever, and any attorneys
fees, costs and expenses related thereto, made by any person, entity, public agency or district
arising out of or related to the provisions of this Agreement or any action taken or to be taken
pursuant hereto to the fullest extent permitted by law.
9. Representation of Authority.
Each parry hereto represents that it is duly authorized at law and in fact to enter into this
Agreement and that it has taken all necessary action to authorize the undersigned to execute this
Agreement on its behalf.
10. Miscellaneous.
The Recitals of this Agreement are true and correct and are incorporated herein by this
reference. This Agreement represents the entire agreement and understanding of the parties and
supercedes any other agreements, understandings or actions taken with respect to the subject
matter hereof. This Agreement may not altered, amended, modified, supplemented, terminated
or superceded except in a writing executed by each party hereto. This Agreement may be
executed in counterpart originals, which taken together shall constitute one and the same
agreement.
10990:78930.1
WHEREFORE, the parties have approved and executed this Agreement effective as of
the day first written above.
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM
By: I.( LG f j,*
Thomas N. Fox
Its: Chairman of the Board of Retirement
CITY JU CAPISTRANO
By:
Its. ohn Greiner, Mayor
VALLF,YWATER DISTRICT
APPROVED AS TO FORM:
Steefel, Levitt & Weis,A�s, P. C.
By: La lr—
e L. Leiderman
Attorneys for Orange County Employees
Retirement System
John Shaw, City Attorney
By:
Attorney f r City of San Juan Capistrano
And Capistrano Valley Water District
10990:78930.1 12
0
EXHIBIT "A"
TRANSITIONED EMPLOYEES
Pursuant to the Operations and Maintenance Agreement between the City of San
Juan Capistrano and the Capistrano Valley Water District (DISTRICT) dated July 1, 1997, each
and every DISTRICT employee, below the level of General Manager, became an employee of
the City of San Juan Capistrano (CITY). Additionally, the benefits set forth in the DISTRICT
Agreement for Supplemental benefits with OCERS are incorporated into the CITY Agreement
for Supplemental Benefits with OCERS. The following is the list of DISTRICT employees
transitioned to the CITY effective July 1, 1997.
Employee Name Hire Date
Ando, Stacie
05-18-97
Ando, Steve
02-21-89
Bauman, Eric
09-17-90
Best, John
09-02-69
Boessler, Harry
07-10-78
Brady, Karen
08-03-95
Brand, Neil
06-01-83
Clark, Bob
06-15-87
David, Conrad
05-06-91
Ducharm, Donna
04-23-90
Harris, Craig
07-09-91
Johnson, Tom
03-14-94
Kennedy, Francie
10-28-92
LaMothe, Jay
05-17-82
Martinez, Angel
03-05-97
Romero, Jeffrey
07-26-90
Scott, Georg'Ann
07-29-86
Smith, Michael
07-12-89
Vasquez, Rueben
04-21-69
Vaughn, Ray
09-12-88
Villalpando, Manny
10-02-79
Widner, Jim
08-12-91
Williams, Greta
09-07-89
10990:78930.1 13
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
2942 DAIMLER STREET, SANTA ANA, CA
MEMORANDUM OF JNDERSTANDING
This Agreement is made and entered into this r4 -k day of
S 1993 by and between the COUNTY OF ORANGE (hereinafter
"COUN "), a political subdivision of the State of California, and
the ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM ("OCERS"), a public
retirement system organized and existing pursuant to the provisions
of the County Employees Retirement Law of 1937,
WHEREAS, OCERS provides and administers a program of
retirement benefits for the employees of the COUNTY and certain
other public agencies that participate in OCERS; and
WHEREAS, OCERS is administered by a Board of Retirement,
(hereinafter "Board") which is legally separate and independent of
the COUNTY; and
WHEREAS, COUNTY is interested in the operation of OCERS
because COUNTY provides a major portion of the funding of OCERS;
and
WHEREAS, COUNTY and OCERS desire to maximize the level of
benefits available to the members of OCERS while minimizing
employer contributions thereto; and
WHEREAS, it is the intent of the parties that this Agreement
apply only to COUNTY and not to the other public agency members of
OCERS; and
WHEREAS, OCERS will negotiate separately with each other
public agency member of OCERS regarding the disposition of the
Remaining Transferred Funds not transferred to ARBA,
NOW, THEREFORE, IT IS HEREBY AGREED between the parties as
follows:
1. Definitions:
"Adjusted Total Assets" are the total assets of OCERS
less accounts payable and less any other reserve accounts that the
Board deems appropriate.
"Unallocated Fund Balance" ("UFB") is the fund created by
annual earnings in excess of the amounts credited to contributions
and reserves. (Gov't Code Sect. 31592)
"County Advance Reserve" is a fund into which the surplus
in UFB in excess of the amount reserved by the Board may be
transferred. (Gov't Code Sect. 31592.2)
"Remaining Transferred Funds" are the portion of the
excess funds transferred from the UFB allocated for health benefit
use.
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
MEMORANDUM OF UNDERSTANDING - AGREEMENT
DECEMBER 14, 1992 Page 2
"Additional Retiree Benefit Account" ("ARBA") is that
portion of the "Remaining Transferred Funds" set aside exclusively
for paying towards health insurance for present and future retirees
of the COUNTY.
2. OCERS will establish a policy to maintain a reserve
against deficiencies (Gov't. Code Sec. 31592) of 5% of the adjusted
total assets of the retirement system that will become effective
when the condition precedent set forth in paragraph 8, below, is
satisfied.
3. Any funds in the "UFB" in excess of the amount so
reserved by the Board will be transferred into the "County Advance
Reserve" and "Remaining Transferred Funds" in accordance with the
formulas set forth in paragraph 4.
4. From the excess UFB funds the Board will transfer this
year seventy-five percent (75%) into the "County Advance Reserve"
and to the County contributions to "ARBA" and twenty-five percent
(25%) into "Remaining Transferred Funds". For the first year the
County contribution toward "ARBA" shall be an amount equal to (1t)
of County payroll subject to retirement contributions. This is a
one-time transfer only for the first year funding this Agreement.
The "Remaining Transferred Funds" may be commingled with other
funds of OCERS for investment purposes.
In future years, the "employer share" of the excess UFB
shall be determined by multiplying the excess UFS by a fray. is L,
the numerator of which is the employer's contribution to OCERS
during the preceding ten (10) calendar years, and the denominator
of which is the total contributions to OCERS during the same
period. The "non -employer share" shall be the remainder of the
excess UFB. Of the employer's share, an amount equal to one
percent (It) of County payroll subject to retirement contributions
for those bargaining units participating in a retiree medical
program shall be transferred from the excess UFB to "ARBA".
The remainder of employer share will be transferred to
the "County Advance Reserve." The non employer share shall be
transferred to "Remaining Transferred Funds."
5. A portion of the "Remaining Transferred Funds" will be
transferred to the "ARBA" account for the exclusive purpose of
paying towards health insurance for present and future retirees of
the COUNTY. To the extent that "ARBA" funds are available, the
Retirement Board will transfer sufficient funds from the "ARBA" to
the County Advance Reserve on a dollar for dollar basis to offset
the County costs of providing a retiree medical program. The
"ARBA" will be credited with the same assumed rate of interest for
the County Advance Reserve to the extent that all other reserves
are credited and the Unallocated Fund Balance is in excess of 3% of
ORANGE COUNTY
MEMORANDUM OF
DECEMBER 14,
EMPLOYEES RET
UNDERSTANDING
1992
REMENT SYSTEM
- AGREEMENT
Page 3
the adjusted total assets of the retirement fund. In addition to
the transfers described in 4 above and interest credits, the amount
of funds to be transferred to the "ARBA" from the "Remaining
Transferred Funds" will be based on the percentage of contributions
from County employees during the previous five (5) years compared
to total employee contributions to OCERS during the same time
period.
6. If in future years OCERSI return .on investments is
insufficient to credit the assumed rate of interest to all reserve
accounts, such deficiency will be made up by transferring funds out
of the UFB account but not so as to bring it below three percent
(3%) of the adjusted total assets. If such transfer does not yield
sufficient funds to credit the assumed rate of interest to all
reserve accounts, then employer contributions to OCERS shall be
increased during the ensuing fiscal year by an amount which is the
lesser of: 1) the amount necessary to restore the adjusted total
assets to three percent (3%); or, 2) an amount equal to one-half of
one percent (1/2%) of the total assets; except that in no event
shall such increased employer contributions be less than the amount
necessary to maintain reserves of at least one percent (14) of
total assets.
7. Investment earnings in future years shall be credited
first to the reserve accounts of OCERS (at the assumed rate of
interest) and, second, to the UFB. If crediting UFB brings the UFB
to more that five percent (5%) of the adjusted total assets then
any excess will be transferred into the County Advance Reserve, the
Remaining Transferred Funds account, and the ARBA account in
accordance with the formulas set forth in paragraph 4. and 5.
above.
S. COUNTY will meet with representatives of COUNTY's
recognized employee organizations to attempt to establish a funded
Retiree Medical Care Plan for future retirees of the COUNTY and
their eligible survivors. Unless and until mutually agreed to and
signed written memoranda of understanding are reached with at least
three (3) recognized representatives of employees of the County,
this Agreement will have no force or effect except paragraph 9.
9. In consideration of the Board executing this document,
COUNTY shall concurrently with its approval of this Agreement cause
the Board of Supervisors by resolution adopted by majority vote
make the provisions of Government Code Section 31529.5 applicable
in Orange County authorizing the Board to contract for the legal
services of an attorney in private practice.
0 0-
ORANGE
COUNTY EMPLOYEES RETIREMENT SYSTEM
MEMORANDUM OF UNDERSTANDING - AGREEMENT
DECEMBER 14, 1992
Page 4
10. The effective date of the Agreement shall be the 1st day
of the month after the Chairman of the Board of Supervisors
executes the Agreement on behalf of COUNTY. "This Memorandum of
Understanding - Agreement shall supersede and replace the
Memorandum of Understanding - Agreement between the parties dated
March 13, 1992."
Date of Execution-�� `3 By
OF ORANGE ("COUNTY")
of supery
ORANGE COUNTY EMPLOYEES
RjjETIIR�REMENT SYSTEM ("OCERS")
Date of Execution
Chairman, Board of Retirement
APPROVED AS TO FORM:
TERRY C. ANDRUS, COUNTY COUNSEL
By !�=Y E2:5= `
C:MOUFNL12.14