00-0320_OC EMPLOYEES RETIREMENT SYSTEM_Interim Agr Second Amd0
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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 tha2oy
o 00, 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:
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.
10990:123073.1
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I
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supplemented, terminated or superceded except in a writing executed by each party hereto.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 99UNTY EMPLOYEES
REE SYSTEM,
y
Its:
CITY OF ' N JUA 1 APISTRANO
By:
Its: Collene Campbell, Mayor
CAPISTRANO VALLEY WATER DISTRICT
By: l
Its: Wy tt Hart, Chairman
10990:123073.1 2
32400 PASEO ADEI—ANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 (FAX)
February 22, 2000
Jwto
IlUllollttl
t�I11tIt ' 1961
1776
Mr. Harvey L. Leiderman
Steefel Levitt & Weiss
One Embarcadero Center, Thirteenth Floor
San Francisco, California 94111-3719
Re: Second Amendment to Interim Agreement - ARBA
Gentlemen:
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
JOHN GREINER
WYATT HART
GIL JONES
DAVID M. SWERDLIN
CITY MANAGER
GEORGE SCARBOROUGH
At their meetings of February 15, 2000, the City Council of the City of San Juan
Capistrano and the Board of Directors of the Capistrano Valley Water District both
took action to approve the Second Amendment to the Interim Agreement for
Supplemental Benefits. Three copies of the Agreement are enclosed. Upon
signature by the Orange County Employees Retirement System, please return two
of the copies to this office.
Thank you for your cooperation. Please feel free to contact me if you have any
questions.
Very truly yours,
Cheryl Jo
City Clerk/Clerk of the Board
Enclosure
DRUG USE
IS
San Juan Capistrano: Preserving the Past to Enhance the Future
0 0
AYES: Directors Swerdlin, Greiner, Bathgate and Campbell and
Chairman Hart
NOES: None
ABSENT: None
APPROVAL OF CAPISTRANO VALLEY WATER DISTRICT MINUTES -
ADJOURNED REGULAR MEETING OF JANUARY 18. 2000
The Minutes of the Adjourned Meeting of January 18, 2000, were approved as
submitted. Director Bathgate abstained.
APPROVAL OF SECOND AMENDMENT TO INTERIM AGREEMENT FOR
SUPPLEMENTAL BENEFITS (OCERS) (600.70)
I
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 extending the term to September 30, 2000, to
allow OCERS time to complete its evaluation, was approved as submitted.
3. APPROVAL OF BANKRUPTCY INVESTMENT POOL SETTLEMENT FOR
CAPISTRANO VALLEY WATER DISTRICT (600.70)
As set forth in the Report dated February 15, 2000, from the Agency Counsel, the
following Resolution was adopted approving bankruptcy settlement and authorizing
certain actions and execution of documents relating to the Final Report of the Orange
County Bankruptcy and related recovery litigation:
RESOLUTION NO. 00-2-15-1. ACCEPTING SETTLEMENT
AGREEMENT AND LIMITED RELEASE - ORANGE COUNTY
BANKRUPTCY -A RESOLUTION OF THE BOARD OF DIRECTORS OF
CAPISTRANO VALLEY WATER DISTRICT AUTHORIZING CERTAIN
ACTIONS AND EXECUTION OF DOCUMENTS RELATING TO THE
FINAL REPORT OF THE ORANGE COUNTY BANKRUPTCY AND
RELATED RECOVERY LITIGATION
ADOPTION OF RESOLUTION SUPPORTING PROPOSITION 13. THE SAFE
DRINKING WATER, CLEAN WATER, WATERSHED PROTECTION AND
FLOOD PROTECTION ACT (630.30)
As set forth in the Report dated February 15, 2000, from the Assistant City Manager,
the following Resolution supporting Proposition 13 was adopted:
CVVVD Minutes -2- 2115100
C'
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AGENDA ITEM February 15, 2000
TO: George Scarborough, General 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:
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 2,
1999, the City approved an interim agreement for supplemental benefits providing for the
inclusion of the CVWD benefits to be continued as part of the City. 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.
FOR CITY COUNCIL AGEN4(
u),D
3 Z
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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
4
Supplemental Benefits ("First Amendment") is made and entered effective as of the /3 day of
�5� 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. CITY, DISTRICT AND OCERS are parties to that certain CITY OF SAN JUAN
CAPISTRANO INTERIM AGREEMENT FOR SUPPLEMENTAL BENEFITS dated as of the
8u' 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 Tenn.
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
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Agenda Item
FINANCIAL CONSIDERATIONS:
None.
NOTIFICATION:
5121
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 and
Orange County Employees Retirement System.
Respectfully submitted,
Cyr&ia Russell
Administrative Services Director
Exhibit 1 - Second Amendment to Interim Agreement for Supplemental Benefits
CLR
STEEFEL
LEVITT
& WEISS
A PROFESSIONAL CORPORATION
ONE EMBARCADERO CENTER , THIRTIETH FLOOR • SAN FRANCISCO, CALIFORNIA 94111-3719
TELEPHONE: (415) 758-0900. FACSIMILE: (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
• SAN FRANCISCO, CALIFORNIA
Sin rely,
I �L
H ey L. iderman
lip^r_ i-,! 7
rPq
• STAMFORD, CONNECTICUT•
�i KI) C 'OvTX,I.4�-r
APPS°•van 6y &Aaw
CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FOR Sl1PO YMPNTAL 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
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
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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
5755,000. 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.
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
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 AngelesiLong 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.
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(d) To the extent funds are available in the SIC 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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171
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 retirees
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
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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. t
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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 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.
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(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.
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 Cit}'
Council. Upon termination, no further Supplement payments shall be made from the SJC
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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 anv
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.
7. 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 parry. 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 7893U 10
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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.
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 party 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 I I
WHEREFORE, the parties have approved and executed this Agreement effective as of
the day first written above.
ORANGE COUNTY EMPLOYEES
RETIREF�T SYSTE�
By: Lt LtLI
Thomas N. Fox
Its: Chairman of the Board of Retirement
CITY N CAPISTRANO
By:
Ttc• ohn Greiner, Mayor
VALLF,YWATER DISTRICT
APPROVED AS TO FORM:
Steefel, Levitt & Weiss, P. C.
By Le,,cQ.Q h�xveVL.L. Leiderman
Attorneys for Orange County Employees
Retirement System
John Shaw, City Attorney
By:
Attorney Mr -City of San Juan Capistrano
And Capistrano Valley Water District
10990:78930.1 12
0 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.
EmDlovee 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 UNDERSTANDING
AGREEMENT
This Agreement is made and entered into this �� day of
1993 by and between the COUNTY OF ORANGE (hereinafter
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 UFS 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.
4P 0l
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 (751) into the "County Advance Reserve"
and to the County contributions to "ARBA" and twenty-five percent
(251%) 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 UFB by a fra,'i< t,
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 (1t) 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
O
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 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 (33); 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 (1%) 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 (51t) 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.
8. 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
MEMORANDUX 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."
CO
Date of Execution % `3 By
OF ORANGE ("COUNTY")
ORANGE COUNTY EMPLOYEES
RETIREMENT SYSTEM ("OCERS")
Date of Execution -S'�3 By 441
Chairman, Board of Retirement
APPROVED AS TO FORM:
TERRY
C. ANDRUS, COUNTY COUNSEL
By
Deputy
C:MOUFNL12.14
0
0
2. CONCEPTUAL APPROVAL OF THE METROPOLITAN WATER DISTRICT
LOCAL RESOURCES PROGRAM GRANT AGREEMENT FOR THE NON-
DOMESTIC WATER SYSTEM EXPANSION (600.70)
As set forth in the Report dated September 7, 1999, from the Public Works Director,
the "Local Resources Program Grant" agreement for the non-domestic water
system expansion between the District, the Metropolital Water District of Southern
California and the Municipal Water District of Orange County was approved in
concept, as required by the Metropolital Water District Board before staff time and
resources will be invested in finalizing the agreement and before grant funds are set
aside. Formal approval was tentatively scheduled in February, 2000.
ADOPTION OF RESOLUTION ACCEPTING WATER FACILITIES AND
EASEMENT AND AUTHORIZING RELEASE OF CERTIFICATE OF
DEPOSIT, PARCEL MAP 83-861 (FLUIDMASTER. INC.) (420.701
As set forth in the Report dated September 7, 1999, from the Engineering and
Building Director, the following Resolution was adopted accepting the public water
improvements and easement from Fluidmaster, Inc., and authorizing the Clerk of
the Board to forward the easement and a Notice of Completion to the Orange
County Recorder:
CVWD RESOLTUION NO. 99-9-7-1. ACCEPTING PUBLIC WATER
FACILITIES AND EASEMENT - FLUIDMASTER. INC. - A
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CAPISTRANO VALLEY WATER DISTRICT, ACCEPTING PUBLIC
WATER FACILITIES AND EASEMENT LOCATED AT 30800 AND
30850 RANCHO VIEJO ROAD - PARCEL MAP 83-861
(FLUIDMASTER, INC.)
Staff was authorized to release the $169,000 Certificate of Deposit 35 days after
recording the Notice of Completion.
4. APPROVAL OF FIRST AMENDMENT TO INTERIM AGREEMENT FOR
SUPPLEMENTAL BENEFITS (ORANGE COUNTY EMPLOYEES
RETIREMENT RETIREMENT SYSTEM)
f
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 between the City, the Water District and the Orange County Employees
Retiement 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.
BOARD ACTIONS - None
CVWD Minutes -2- 9M99
ti •
AGENDA ITEM
TO: George Scarborough, General Manager
FROM: Cynthia L. Russell, Administrative Services Director
September 7,1999
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:
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 2, 1999, the City approved
an interim agreement for supplemental benefits providing for the inclusion of the
CVWD benefits to be continued as part of the City. 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.
FOR CITY COUNCIL AGEN
�vcv-D
3Z4
•
Agenda Item -2- September 7, 1999
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 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,
al , La��
Cy0hia L. Russell
Administrative Services Director
Exhibit 1 - First Amendment to Interim Agreement for Supplemental Benefits
CLR
RETIREMENT
SYSTEM
,r,l AlM, (,,,(r
Krui rd
CLL:Z' 1 .W11H IIID
.,
0 0
February 10, 1999
RECEIVCD
JUL
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.
�Yoyurs truly,
Mary Almond, Secretary
Office of the Administrator
:ma
Enclosure
ORANGE COL\TT EMPLOYEES RETIREVIENT SI STENT • =_ Iliilu.er,.r.,a.�,u.r. Swirl, .Aim. C.1 o_'. -sal
Mi t'llunr.-/4,SSS-n'UU
---7�2. APPROVAL OF REVISED AGREEMENT WITH THE ORANGE COUNTY
RETIREMENT SYSTEM FOR SUPPLEMENTAL BENEFITS FROM THE
Asset 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.
None
ADJOURNMENT
There being no further bu
next regular meeting date
ATTEST:
GIL JO S, AN
CV WD Minutes
the Board, the meeting was adjourned at 7:37 p.m., to the
I
2, 1999, at 5:30 p.m., in the City Council Chamber.
submitted,
CHERYL J00N944N, CITY CLERK
-2-
2/2/99
0
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 (FAX)
February 4, 1999
Jww► �
unwuu 196)
1776
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
DAWO M. SWEROUN
CITY MANAGER
GEORGE$CARBOROUGH
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 on
City Clerk/Clerk of the Board
Enclosures
cc: Administrative Services Director
San Juan Capistrano: Preserving the Past to Enhance the Future
o
AGENDA ITEM February 2, 1999
TO: George Scarborough, General 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:
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 Board of Directors approved a draft agreement
transferring the CVWD's ARBA and its benefits to the City's ARBA. On April 13,
1998, OCERS approved that draft agreement. Prior to final execution of that
agreement by all parties, OCERS had a change in legal counsel and the
agreement was never finalized. 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:
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 OCERS for administration costs not to
exceed $1,000.00 annually. This amount is to be based on actual
substantiated costs.
FOR CIN COUNCIL AGEN
VVVVVV � �
AGENDA ITEM -2- February 2, 1999
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.
These revisions have been reviewed and approved by the City and both employee
associations.
The attached Agreement has incorporated the District benefits as required by the
Operations and Maintenance Agreement. It is appropriate for the Board of
Directors to approve this Agreement since it provides for benefits of former District
employees. Therefore, staff recommends the Capistrano Valley Water District
Board of Directors approve the attached agreement. Upon approval by the CVWD
Board of Directors, 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
Additional Retirement Benefits Account.
2. Request further information from staff.
11
AGENDA ITEM -3- February 2, 1999
RECOMMENDATION:
By motion, approve Agreement between the City of San Juan Capistrano and the
Orange County Retirement System for Supplemental Benefits from the Additional
Retirement Benefits Account.
Respectfully submitted„
L. 6/50
Cyn is L. Russell
Ad nistrative Services Director
Exhibit 1 - Revised Agreement between the City of San Juan Capistrano,
Capistrano Valley Water District and Orange County Employees
Retirement System.
1
RETIREMENT
SYSTEM
February 10, 1999
•
RECEIVED
JUL
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
ORANGECOLATl'EMPLOYEES RETIREME\TSlSTEN 1• Ili-ihn¢o-m.i�,ruu-.Junr,r.Ana.(.1o'.-oI
Telrnhoiw C/4) ASN -n'00 F.i-x i -141 --; h'; ^
0
February 5, 1998
Mau
i
F
mmmmo
W111MO 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. S W EROLIN
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,
Cheryl Joh so z
City Clerk
Enclosure
cc: Cynthia Pendleton
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO. CALIFORNIA 92675 0 (714) 493-1171
• 0
FEBRUARY 3, 1998
MEETING OF THE CAPISTRANO VALLEY WATER DISTRICT
BOARD OF DIRECTORS
The Special Meeting of the and of Directors of the Capistrano Valley Water District was called
to order by Chairman Jones at 10 p.m. in the City Council Chamber.
ROLL CALL PRESENT: Jones, Chairman
Davt . Swerdlin, Vice Chairman
Collene pbell, Director
Wyatt Hart, ctor
ABSENT: John Greiner,
STAFF PRESENT: George Scarborough, General Manager; Shaw, Interim Counsel;
Cynthia L. Pendleton Treasurer, Cheryl Johnson Clerk of the Board; Je r Murray, Assistant City
Manager; Thomas Tomlinson, Planning Director; William Huber, Direct of Engineering and
Building Services, Al King, Director of Community Services; Lt. Paul Sulliv Orange County
Sheriffs Department, Amy Amirani, Director of Public Works; Gillian E. Ram Recording
Secretary.
CONSENT CALENDAR
It was moved by Director Swerdlin, seconded by Director Hart, that the staff recommendations be
accepted for the following items listed on the Consent Calendar. The motion carried by the following
vote:
AYES: Directors Swerdlin, Hart, Campbell and Chairman Jones
NOES: None
ABSENT: Director Greiner
As set forth in the Report dated February 3, 1998, from the Administrative Services Director,
the Agreement with Orange County Employees Retirement System for Supplemental Benefits
from the Additional Retirement Benefits Account was approved as submitted.
CVWD Minutes -1- 2/3/98
0 0
AGENDA ITEM February 3, 1998
TO: George Scarborough, General Manager
FROM: Cynthia L. Pendleton, Administrative Services Director
SUBJECT: Consideration of City Agreement with Orange County Retirement System for
Supplemental Benefits from the Additional Retirement Benefits Account
RECOMMENDATION:
By motion, approve Agreement between the City of San Juan Capistrano and the Orange
County Retirement System for Supplemental Benefits from the Additional Retirement
Benefits Account.
SITUATION:
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.
The attached City Agreement has incorporated the District benefits as required by the
Operations and Maintenance Agreement. It is appropriate for the Board of Directors to
approve this Agreement since it provides for benefits of former District employees.
Staff recommends the Capistrano Valley Water District Board of Directors approve the
attached agreement. 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
provide to the CVWD Board of Directors prior to the meeting on February 3, 1998.
Upon approval by the CVWD Board of Directors, the agreement will be submitted to the
Orange County Retirement System Board of Directors for their consideration.
COMMISSIONIRQARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
FINANCIAL CONSIDERATIONS:
None. (f
FOR CITY COUNCIL AGE ..
0 0
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 between the City of San Juan Capistrano and the
Orange County Retirement System for Supplemental Benefits from the Additional
Retirement Benefits Account.
2. Request further information from staff.
RECOMMENDATION:
By motion, approve Agreement between the City of San Juan Capistrano and the Orange
County Retirement System for Supplemental Benefits from the Additional Retirement
Benefits Account.
Respectfully submitted,
Cyn is L. Pendleton
Administrative Services Director
CLP:JMR
0 0
CITY OF SAN JUAN CAPISTRANO
AGREEMENT FOR SUPPLEMENTAL BENEFITS
THIS AGREEMENT is made and entered into this day of 1997,
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
any other reserve accounts that the Board of Retirement of OCRS deems appropriate.
Page 1
0
E
"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
transferred into the "County Advance Reserve" and "Remaining Transferred Funds" in accordance
with the formulas set forth in paragraph 3, below.
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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 (1%) 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. -
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".
Additional Benefits -- County Employees.
(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
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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 Employees.
(a) A portion of the "Remaining Transferred Funds" shall be made available to fund
additional benefits for retirees of the CITY. 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 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,
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.
0 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
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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.
(d) The amount of the retirement income supplement, for retirees of CITY with prior
DISTRICT service, will be (for each 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
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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
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 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
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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
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
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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
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,
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(h) The portion of the Remaining Transferred Funds which are transferred to the "DABA"
account and 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
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.
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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 ('/2%) 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 reserves of at least one percent (1%) of
total assets.
8. Crediting of Investment Earnings.
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 "DABA" account in accordance with
the formulas set forth in paragraph 3 and 4 above.
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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.
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 AS TO FORM:
John Shaw, City Attorney
ATTEST:
Cheryl Johnson, City Clerk
ORANGECOUNTYRETIREMENT SYSTEM
M
CITY OF SAN JUAN CAPISTRANO
Un
George Scarborough, City Manager
CAPISTRANO VALLEYWATERDISTRICT
IN
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Gil Jones, Chairman
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
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COPY
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
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any other reserve accounts that the Board of Retirement of OCRS deems appropriate.
"Unallocated Fund Balance" ("UM") 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 ("DAB X') 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
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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 (1%) 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.
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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 (11/6) transfer a like number of times.
(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 Employees.
(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
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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.
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(d) The amount of the retirement income supplement, for retirees of CITY with prior
DISTRICT service, will be (for each 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
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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 AngelevLong Beach Area up to maximum
of five percent (51/6). 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 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
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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.
(I) 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
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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
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.
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
fiords 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
"IJFB" account, but not so as to bring it below three percent (31/6) 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 (Y2%) 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
(M) of total assets.
Page 10
0 9
8. Crediting of Investment Earnings.
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
"LTFB'; brings the "LTFB" 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 m
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 11
0
0
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 S w, City Attorney
ORANGECOUNTYRETIREIENI' SYSTEM
Lin
CITY OF RAN JUO CAPISTRANO
City Manager
Capistrano Valley Water District has read the foregoing Agreement, approves it, and agrees to be
bound by its terms.
VaILEY WATER DISTRICT
General Manager
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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
SYSTEM
0
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
OR.),NG - COCNTI- ENIPLO) EES RETIREVIENTSI STEM • _Ana. (
[-, I,1rhnnr r -141 F.0 i -tai
=1Kbli- Lw�/F.R�r
f�PFruvan 6y 3oa2o a�P�9'
CITY OF SAN JUAN CAPISTRANO
INTERIM AGREEMENT FOR SUPPT FMENTAL 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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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
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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 (M) 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
10990:78930.1
n
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
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(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
•
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
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0
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 SIC 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
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E
(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.
10990:78930.1
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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.
7. 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 a
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 party 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 11
WHEREFORE, the parties have approved and executed this Agreement effective as of
the day first written above.
ORANGE COUNTY EMPLOYEES
RETIRE -(ZIT SYSTEBy:VI,I LU I
Thomas N. Fox
Its: Chairman of the Board of Retirement
CITY JU CAPISTRANO
By:
Its. ohn Greiner, Mayor
VALLWWATER DISTRICT
APPROVED AS TO FORM:
Steefel, Levitt & Weis,^�s, P. C.
By; La lr----
e L. Leiderman
Attorneys for Orange County Employees
Retirement System
John Shaw, City Attorney
By: Q( K��
Attorney f r City of San Juan Capistrano
And Capistrano Valley Water District
10990:79930.1 12
•
s
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 LTMERSTANDI2FG
AGREEMENT
This Agreement is made and entered into this Z F' day of
1993 by and between the COUNTY OF ORANGE (hereinafter
"CONN "), 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
(251%) into "Remaining Transferred Funds". For the first year the
County contribution toward "ARBA" shall be an amount equal to (1%)
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 fraL.'ic-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 31; of
ORANGE COUNTY
MEMORANDUM OF
DECEMBER 14,
EMPLOYEES RET'.
UNDERSTANDING
1992
REM= 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 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
(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 (1%) 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 (5k) 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.
8. 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 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 1-6- j3
well
By
OF ORANGE ("COUNTY")
ORANGE COUNTY EMPLOYEES
jRRETIIRREMENT SXY//S�TEM ( "OCERS")
Date of Execution -S'`�3 By\z.1 . /.X
Chairman, Board of Retirement
APPROVED AS TO FORM:
TERRY C. ANDRUS, COUNTY COUNSEL
By �..�
Deputy
C:MOUFNL12.14