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HomeMy WebLinkAbout5.1 3%@50 Former DRFA CITY CLERK FILE # 540-10 AGENDA STATEMENT CITY COUNCILIMEETING DATE: June 5, 2001 SUBJECT: Written Communication: Request from Alameda County Firefighters/IAFF Local No. 55 to provide retirement enhancement benefits (PERS 3% at 50) to former Dougherty Regional Fire Authority employees. Report Prepared by Richard C. Ambrose, City Manager ATTACHMENTS: 1. Letters of April 19 and April 27, 2001 from Alameda County FirefightersflAFF'Local No. 55 2. Second Amendment to JEPA (DRFA) RECOMMENDATION: 1. Determine if there is an interest to meet with the City of San  Ramon to discuss this request; or 2. Deny Request FINANCIAL STATEMENT: In January 2001, the Public Employees Retirement System (PERS) prepared a "Contract Amendment Cost Analysis" with a valuation basis as of June 30, 1999. The analysis provided information regarding the potential cost to DRFA if it were to amend its contract with PERS to provide the 3% at 50 benefits' to all current members of the plan. The analysis showed that, if DRFA were to amend its PERS contract to provide the 3% at 50 benefits; the change, which would result, is a ·decrease in plan assets of $1,304,706, which represents the potential cost of such an amendment. Since the most recent valuatign is out of date the cost could vary. DESCRIPTION: On April 27,. 2001, the Dublin City Council received the attached · letter from the Alameda County Firefighters./IAFF Local//55 requesting that DRFA change its retirement contracts from 2% at 50 'to 3% at 50. Alameda County recently modified its retirement contract from 2% at. 50 to 3% at 50. All County employees receive 3% at 50 for their years of service with Alameda County FireL 'The fire Union is requesting DRFA modify its contract with PERS so that former DRFA employees receive 3% at 50 for those years of service with DRFA and DSRSD. The DRFA Board of Directors, which consists of the City Managers of Dublin and San Ramon, met regarding the PERS 3% at 50 retirement issue. First, the Board discussed this matter on February 7, 2001, at the request of Alameda County Fire Chief William McCammon. The request came to the DRFA Board COPIES TO: Brian McKenna, President Alameda county Firefighters William J. McCammon, Fire Chief, ACFD Herb Moniz, City Manager, City of San Ramon ITEM NO. _4 e t during the Alameda County Fire Department and San Ramon Valley Fire Protection DiStrict' s..respective meet and confer process in which both agencies were negotiating the additional retirement beneriC At that time, the DRFA Board directed Staff to get a legal opinion regarding DRFA's authority to amend the.. PERS coptract, to determine the Board's legal obligation to meet and confer regarding this matter under the Meyers-Milias-Brown Act (MMBA), and several other legal issues. Second, on April 18, 2001 the DRFA Board met again regarding this matter and after lengthy discussion approved a motion to forward the request to the City Council for consideration provided that anyone making the request identify the public purpose and public benefit of the PERS contract amendment. The DRFA Board never received such a request. Background DRFA was formed in 1988 between the two Cities to provide fire services. In early 1997, the City of San Ramon decided to provide fire services l~y annexation to the San Ramon Valley Fire Protection District. Accordingly, the parties began the process of winding up the affairs of DRFA. Although the original intent was to terminate DRFA entirely, the decision was made to continue it in existence in order to wind up the affairs of DRFA. Accordingly, it was given 0nly very limited powers. The "Joint Exercise of Powers Agreement/Dougherty Regional Fire Authority" (JEPA) was amended in 1997 by the Second Amendment to name the. City Managers of the Cities of Dublin and San Ramon as the Board of Directors and to require concurrence of both members for actiota (JEPA 3.1) The Second Amendment prohibited DRFA from having employees as of July 1, 1997 (JEPA 3.3) and limited the B0ard's powers to those specified in Section 4 of the Second Amendment and no others. The Board's authority is limited to: winding up the affairs of the Authority; performing any contractual obligations of DRFA existing on June 30, 1997; making contracts for medical benefits for retired employees; processing and acting' on workers' compensation claims; suing and being sued; and retaining legal counsel or other consultants to assist in carrying out the above powers. (See Attachment 2) The current DFRA Board of Directors was not given authority to amend DRFA's contract with PERS to change the level of retirement· benefits. Such authority would be necessary in order for the Board of Directors to consider amending the retirement benefits that the former DRFA employees will receive from PERS due to their years of service with DRFA. The existing Board's powers can be enlarged only by amendment of the JEPA, which would have to be approved by a majority of the Councils of the two Cities. Such an amendment could provide the current Board with the authority (and then the direction) to amend the contract between DRFA and PERS. Upon direction by the Dublin City Council, Staff wilt transmit the Couneil's action to the City of San Ramon - City Council for similar consideration. It would take a majority of the Councils of the two Cities to authorize the amendment to the JEPA. If this takes place the two City Managers would convene as the 'DRFA Board to consider the request to amend the retirement benefits for former DRFA employees.· Alternatively, again, a majority of the Councils of the two Cities could elect to change the composition of the DRFA Board, so as to enable the Councilmembers to act on the request for enhanced PERS benefits. Financial Analysis In Januar~ 2001, at the request of the Fire Union, PERS provided DRFA and the Fire Union with a "Contract Amendment Cost Analysis" with a valuation basis as of June 30, 1999. The Analysis provided information regarding the potential cost to DRFA if it were to amend its contract with PERS to provide the 3% at 50 benefits to all current members of the plan. The Analysis indicated that DRFA's plan had "suber-funded" as of June 30, i999, The ~ai~i~i)i~i~a!~mat'~the difference between the total v~ue of retiremere benefits for c~ent members ~d. ~e acm~ v~ue of D~A's pl~ ~sets Was $6,645,475, representing ~e mount, as of J~e 30, 1999;?~ofD~h,s excess pl~ ~sets. ~ese ~sets ~e ~e mo~es · at the Cities of Dublin ~d S~ R~on:0~e~id imo ~e'pl~ during D~A's active period '~d m~ket Pr~Amendment Change Due To Plan Post-Amendment Post Amendment & Method Method Change Change. Accrued Liabili~ $ 16,945,195 $ 2,420,839 $ . 19,366,034 Assets . 23,590,670 1,116,133 24,706,803 U~ded Liabili~ (6,645,475) 1,304,706 (5,340,769) The ~ySis above shows ~at, if D~A were tomend its PERS contact to pro~de the 3% m 50 benefits; ~e ch~ge w~ch wo~d result is a decre~e in pl~ assets of $1 ,304,706~ which represents ~e potenti~ cost of such ~ men~ent: If ~ere were such ~ men~ent, the ex~ss pl~ assets would be reduced by tht mount, to $5,340,769 (based .on 6/30/99 v~uation). S~Ce D~A's pl~ was superlded ~ of 6/30/99, D~A's c0n~bu~on level would cominue to be zero; however, ~ere would be a cost to ~e pl~ due to a decrease in assets. ~us, if D~A wishes m te~inate its contact ~th PERS someday, the re~d of its excess assets would be signific~tly less if D~A were to provide ~e e~ced retirement benefits ~ if k decided not to provide ~ose benefits. In light of do~mm ~ ~e stuck m~ket s~ce Jme 1999, it is likely ~at ~e excess assets le~ over wo~d be si~fic~tly less th~ $5,340,769. In ~e ~likely event of a shoaage of ~ds in ~e ye~s, D~A ,wO~d be required to pay the deficit, not hactive employees. Loc~ 55's le~er of April 27, 2001, implies ~at i~cfive D~A employ~s ~ll.pay '13.7% of ~eir s~ to receive ~e e~ced retirement benefit for se~ice Mth D~A ~d DSRSD2 ~is is not co~ect, what is co~ect is ~at ~e MOU wi~ Almeda Co~ Fire Depmem provides for ~e 3% at 50 PERS retirement benefit, bm also requires 'active Alme~ Co~ employees con~bute 13.7% of ~eir s~y tow~ds the e~ced benefit for semite ~ Al~eda Co~. Foyer D~A employees will never m~e a contribution to D~A (or ~da Co~) for ~s e~ced re~ement benefi~ if D~A provides ~s benefit. If ~e Co~cil dete~ines ~ere is ~ ~terest in discuss~g this request wi~ ~e Ci~ of S~ ion or sho~d D~A te~inate its contact ~ PE~, S~ woffid reco~end ~ up-to-date independent v~uation ~ysis be conducted to veri& ~e fm~cial ~ysis provided by PERS is accurate. ~e cost of this ~ysis would be au~orized by D~A ~d split be~een ~e Cities .of Dublin ~d S~ ion. Conchsion D~A's J~e 30, 1999 v~uation included 50 i~ctive D~A s~e~ members. These ~e..fomer employees of D~A ~at chose not to retire. Of ~ose 50 members m~y cme to D~A ~!i~:i~e' Dublin S~ Rmon Se~ices District (DSRSD) or ~other PERS agencies. Those employees brought to D~A ~eir se~ice credit from DSRSD or ~o~er agency. A~er they le~ D~A on J~y 1, !997 ~ose 50 fomer D~A employees beg~ new employment; ~-one (31) went to ~e ~ameda Co~ Fire Dep~ent and six (6) went to ~e S~ Rmon V~ley Fke Protection Dis~ct (SRVFPD), ~d ~e remainder went to other agencies or le~ ~e PERS system enfirel~. Because they began employment with a new agency these inactive DRFA employees. began~ receiving benefits and PERS 'service credit under their respective new employers; similarly those DSRSD"' employees that came to DRFA began receiving service credit under DRFA not DSRSD. When DRFA ceased operations on June 30, 1997 it became an inactive employer. Based on a review of this matter with the City Attomey's Office, the DRFA Board has no obligation or authority to meet and confer.with former or retired employees under the Meyers-Milias-Brown Act (Government Code Section 6505). The function of negotiations does not exist. Similarly, former DSRSD employees are inactive members of that agency and there is no obligation to meet and confer over wage and benefit matters. In the same way; miscellaneous' employees that move from one PERS agency to another can not go'back to negotiate wage and benefit enhancements. When an employee separates from one agency contributions' to PERS are terminated; the new employer then begins their contributions and the employee receives the new agency' s contracted PERS benefits and service credits. ' Article XVI, Section 6, of the California Constitution provides in relevant part: "The Legislature shall have no power. ~ '. to make any gift or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation whatever..."this is called the gift of public funds doctrine, which requires .expenditures of pubic agencies to be for a public purpose. It is difficult to identify a "public purpose" that would justify this expenditure for DRFA. DRFA does not currently employ any of the. individuals that would benefit from the increased retirement benefits not can it because it is precluded from employing anyone. Even though some of the fire fighters who would benefit from this increase currently provide services to the City of Dublin, DRFA does not receive the benefit of those services. Enhancing retirement benefits for former employees who currently work for SRVFPD may also constitute an unlawful gift of public Bands because there is not "public purpose" being served by DRFA in making this expenditure. Moreover, since DRFA is not trying to attract or retain any current of future firefighter employees, the ~'normal" purpose of an enhanced pension benefits does not apply. Under the Government Code, amendments to PERS contracts may not provide for retirement benefits for some but not all local fire fighters, and may not provide different retirement benefits for any subgroup of members. Thus, DRFA must treat all of their former fire fighters the same with regard to retirement benefits.. DRFA cannot provide different benefits for former employees now employed by Alameda County, by SRVFPD, or other public agencies. On April 19 and April 27, 2001, the Dublin City Council received the attached letters from the Alameda County Firefighters/IAFF Local #55. To date, the San Ramon City Council has received .no correspondence regarding this matter. Recommendation Staff recommends that the City Council review the staff report and deny the request; or determine if there is an interest to meet with the City of San Ramon to discuss the request. ALAMEDA CO'UNTY .FIREFIGHTERS .' 414 - 13th Street, Suite 300 · Oakland, CA 94612 INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 55 April 27, 2001 :" ',,- .?~' "' .i. · Honorable Council Members City of Dublin 100 Civic Plaza Dublin, CA 94680 RE: DRFA PERS (Safety) 3% @ 50 Benefit Dear Council Members: The purpose of this correspondence is to follow-up my letter dated 04/19/01 'referencing the PERS 3% @ 50 benefit for our deferred DRFA members. I hereby request that the City of Dublin City Council place on their agenda and address, as soon as practicable, the aforementioned topic. It is of paramount importance that this issue is resolved as expeditiously as possible. Our former DRFA members deserve retirement benefits that are consistent with their sister & brother firefighters throughout our organization. Likewise, they will begin contributing 13.7% of their salary in June to receive this benefit but would be unable to do so without action by the City Councils of Dublin & San Ramon. Your prompt attention in this matter would be greatly appreciated. If I can provide any further information and/or assistance please feel free to contact me at (5 i0) 914-6028 Sincerely, Brian M McKerma, President Alameda county Firefighters / IAFF Local #55 I:\BMCKENNA\Foltow-up Houston 3% ~ 50.doe ALAMED.A COUNTY FIREFIGHTERS · . 414-13th Street' Suite 30'0 -' Oakland, CA 94612 ' "~' ~ INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS L 0 C A'L 55 REC N D OF DUBLIN A~d] 19, 200~ Honorable City Council Members City of Dublin I00 Civic Plaza Dublin, CA 94680 Dear Council Members The Alameda County Fire Department (ACFD) has been working with the Dougherty Regional Fire Authority (DFRA) Board of Directors to provide a change in the retirement benefits for .those individuals who worked for DRFA and became members of the ACFD or the San Ramon Valley Fire Protection District (SRVPD). The ACFD and the SRVPD have adopted the 3% @50 retirement benefit. The firefighters, who have· a long history of serving the Cities of Dublin and San Ramon, are requesting that their retirement benefits be consistent with the retirement benefits of the organizations into which they were consolidated when DRFA was dissolved. The Alameda County Firefighters Local #55 believes that it is important for all of our members to have similar benefits, and as such has requested the City of Dublin's assistance in securing this change in benefits. Timing of the establishment of the benefit is essential, so We would appreciate your earliest attention to this matter. If I can provide any further information and/or assistance please feel free 'to contact me at (510) 914-6028 ln ly, . . em .a, PreslLent ' irefig ers / IAFF Local #55 C :\temp\gTuVIcKennaHouston. doc RESOLUTION NO. 79 - 97 A RESOLUTION OF THE CITY COUNCIL O1~ ~ CITY O1~ DUBr_~I. AMENDING JOINT EXERCISE OF POWERS AGREE1VIENT · DOUGHERTY REGIONAL FIRE AUTHORflY WHEREAS, by Resolution No. 15-88, the City Council approved the "joint Exercise of Powers Agreement/Dougherty Regional Fire Authority", which was subsequently executed by the Mayor, and WHEREAS, the "Joint Exercise of Powers Agreemcmt/Dougherty Redohal Fire Authority: can be amended, as provided. in Section 9.4 of said Agreement upon approval of the-City Councils of the Cities of Dublin and San Ramon; and ~8, the City Councils of the Cities of DubIin and San lhmon approvcd the '~irst Amendment to ~[oint Exercise of:Powers Agreement/Dougherty Regional Fire Aulhority", effeclive Dec, ember 15, 1988; and WI~-~AS, the City Manager has presented to the Council and has recommended approval of the "Second Amendment to .Joint Exercise of:Powers Agreement/Dougherty Regional Fire Authority", a copy ofwhich is attached hereto as Exh~it A; and · .... WHEREAS, the Council is familiar with the contents ofExht'bit A. NOW, ~ORE, the Dublin City Council does hereby approve the "Second Amendmeat to Dougherty Regional Fire Authority Joint Exercise of P0wers Agreement", and authorizeS'the Mayor to execute said Amendment. PASSED, APPROVEDAND ADOPTED this 17th day of June, 1997. AYES: Councilmembers Barnes, Burton, ttowara~ Lockhart and Mayor Houston NOES: None ABSENT: None . " Mayor .... K~/G/~ l 7-~ 7/~M~d~ ATTACHMENT 2 SECOND AMENDMENT TO DOUGHERTY REGIONAL FIRE AUTHORITY JOINT EXERCISE OF POWERS AGREEMENT This is the Second Amendment to the Joint Exercise of Powers Agreement (which, together with the First Amendment thereto is referred' Go .as "JEPA") entered into betWeen.the Cities Of s~n Ramon and Dublin t0 create the Doughstry Regional .Fire Authority (hereinafter referred to as "Authority") The. City of San Ramon has elected to exercise its right under Paragraph 8.1 of the JEPA to terminate the $EPA and the Authority effective June 30, 1997. Paragraph 8.1 of the JEPA provides that: "'Upon termina- tion, any obligation of the. Authority which. continues following termination shdll be b6rne by the Member Agencies based on the percentage determined pursuant to Paragraph 8.3" However, in the course of 'planning for termination of the. Authority, 'the Board of Directors has determined that the obligation of the Authority to provide medical 'benefits to its retired employees can be best met by continuing the 'AuthOrity in existence for limited. purposes beyond June 30, 1997. This will allow the Authority.to maintain the contractual relationship with the Public Employees Retirement System ~.h~ough which these medical benefits are currently provided. The purpose of this' amendment is to allow for continua. tion of .the Authority beyond June 30, 1997, for .the limited purposes of winding up the affairs of the Authority as set forth herein. IT IS AGREED as follows: 1 EXHIBIT -~-- .;'-.:? ~ !. .....'i:m.~:=-!'~:~.~ ..=~-:, >. Term This Second Amendraft shall become effective ' --, ~.,..~jL.:~-,,,~.~.. :=;fC=j~], ........ ~ .........."~! .,,,,,.~: ;,,., ,.=~ =I .~ ~.~ ~-.,i,,!.== =,~' <J'~; ~"' .:,i~ ~'~:~i'~. .~,.== ~,~,;<i' .~ ~f~ '~,~G~.'.~,~ · "' when appr~;a""'~]'=bo~ ~e city of =Blin and ~e city. of san R~on and == shall= ~ .=~ain' =~n =ef-~e=t ~til. =te~inated .pursuant to A~icle 2 Continuation-of...~Auth~rit~- Nei~er · . ".Au~ority shal, l =te~ina~e..~.om ~e 3,0, 1997,ae a result of ~e notice of teanation giv~ by ~ C~ty.~.of San R~on on June 27, · =.l=e=ee=,~>~m~.bu~ s~a!-t~c0n~inu~=!n.e. ff~==:.f°r the limited purposes set 3 Administration .o~ Au~oritV .... ~ .=... . 3 1 Go.v~nin~ Board. Co~encing July 1, 1997, ~he Au~ority'shall~be a~infstered. by a Bold-of Directors consisting , , .... ~ ., ~= ,=.:, =e=~'., ?. · % ~Jc ~=G~'~,'~ . L: .= ~]"~-j.'= ~=" ' i~~ , ' ( ' o~'.~the. C~ty.Ma~a~ere' of' ;~e' Cities of San Ramon ~d D~lin.. ~e ............ = ., .~,.,. ,' '~oardT..sha~..meet as-.needed' .but a~' least. onoe.. each year ~nd shall ~ ........... .. ...... .,,.. , ,., ,~, ,, ~, , , ~,~, ,, ~, ~ ~.., ,~, ~ ,.,, ~ .. ',,~. ~, ~ .~.'~ , .'~ ~Z ' ~ ".? reimb~semen~, ~.~for reaso~able and, neces~y e~enses. incited in . . ......... ., ,.. · .,. ., =~ , ~ ., ~ ~,~ ~,.~' ~ ,'.,~ . ~.~-~1~.,~, ,~.',~ '.~,.. =perfo~an~e ,-~ ..~ei~'. duties ~y ac~i0n by ~e~ Board re, ires the concur.rence~,..o~ .b,o~ m~s A ~0r~= oonsis~s of both meters. =All meetings of the Board shall be ..conducted in accordance wi~ ~e ........................ · ,, ,.. . ..... ,~ ,, ~ '~"~,, ~,. ~,..,,,,,,~,,~, ~ ,~ '~.',;~, Ra. lph=.M. Bro~ .Ac~. .... ~.~ .- ..= ...., 3 ~2 Of.~icers .... The Management. Co~ittee is .... ...... , ." .. abelished ef~e~ti~e' July I 199~-. The offices of Secretary and · ........ , ..... ., Con~rol~e~ITreas~er shat~ .be' filled.. as .designated' by t~e Bylaws. .- . ,~ ........ = ...... ,., .,., ,.,, ,~,. , .., ,~ .~ -.. ~,~,~.~, . ,~ ' 'j, u,~, ,,. ' - ~'. ,.'. '~. ~'~ "~ ~i'g ], C~ ', ' ' ~ ' ~ ~=.~ .¥.~,~ .......~.3 ..a .~Dl.oVees. E~f.ecti~e July · 1. 1997. the .,-,... . Au~ority shall have no ~ployees. .,...... .~:=. ....... .... ~ ...Powers. of...~e .Au~oritv. The..Bo~d. o~ Directors .... ~ -, .... , ..... ,. shall have the following.specific powers and no otherS, beginning July 1, 1997: 4.1 To wind up. the .affairs of the Authority; 4.2 To perform any contractual obligations of the Authority existing.on June 30, 1997; 4.3 TO make and administer contracts which provide medical benefits to retired employees of the Authority; · . 4.4 To process and act upon worker compensation claims filed with the Authority or to contract for the processing of such claims; 4.5 To sue.and be sued in its own name;.and " 4.6 To retain legal counsel or other consultants to assistin carrying out t~e powers authorized unde~ this p~ragraph. 5. Disposition of Personal Property Owned by Authority. .. Personal property assets, however and whenever acquired, held by the Authority-on June .30, 1997, Shall be distributed 'as follows: All vehicles,' to01~, equipment and supplies considered by the San Ramon Valley Fire ~rotection District as necessary to serve its newly acquired service area shall be distributed tO the City of San -Ramon for transfer to the San Ramon Valley Fire Protection District. Likewise, all vehicles, tools, equipment and supplies considered by the Alameda County Fire PrOtection District as necessary to serve its newly acquired service area shall be distributed to the City of Dublin for use by'the ~lameda County Fire Protection District. All.vehicles, tools, equipment and supplies unclaimed by 3 the San Ramon Valley Fire Protection District or the City of Dublin on behalf of the Alameda County Fire Protection District without resolution of the' conflicting claims by June 30, 1997 shall be offered for sale to the below-listed agencies in the fellowing order: , a. Alameda County Fire Protection District/San Ramon Valley .Fire Protection District. b.. Cities of San Ramon and Dublin.~ 'Any other governmental. agency. All remaining items not distributed or purchased provided above shall.be sold at public auction with sales proceeds distributed in accordance with the JEPA provisions relating to distribution o~ cash. This paragraph shall not affect distribution of Authority real .'property and improvements, all of which continu~ to be governed by applicable provisions of the'~EPA .and by Paragraph 6 below. 6. DisPosition of Real Property Owned by Authority. Section 8.3 .of' the JEPA provides that on termination of the Authority, title to any real property conveyed to the Authority by either city be transferred back to that city. Additional real propertyhas'been acquired subsequent to creation oft he Authority. It is intended that such real property be treated the same as the original real property referenced in Section 8.3 of the=JEPA with the'result that title to all real property and improvements thereon shall be transferred by the Authority on or before ~une 30, ~997, to the city in which such real property is located 7. Allocation of Operating Costs for FY 1996-97. Not- withstanding. Section 6.3(b) of the JEPA, the cost of any performance pay bonuses give~ during FY 1996-97 and any costs associated wi~h the Board's action on April 21, 1997 approving · amendment of its contract with the Public Employees Retirement System to provide additional service credit options pursuant to Government Code ~S20903 a/~d 20903.5 for the Battalion Chief/Fire Marshal (Fire Prevention Division) and the Battalion Chief (Operations Division) positions shall be paid by the City of San Ramon. 8. ~attalion chief Incremental Cost.' The City of San .Ramon shall reimburse the City of Dublin for the "incremental cost" · incurred and paid by the City of Dublin in its contract with .the county of Alameda for provision of fire service (the "Dublin Fire Contract") for payment'.of compensation to Battalion Chief T.J. Welch as follows: During the first five years of the Dublin Fire ...Contract,'San Ramon'~hall reimburse Dublin in the amount of 50% of the "incremental cost;" during the second five years of the Dublin Fire Contract~ San Ramon shall reimburse Dublin in the amount of " 100% of the "incremental cost;~, and'during the following five years of the D'ublin Fire Contract, Dublin shall be responsible for 100% of the "incremental cost." As used herein, the incremental cost" shall mean 27% of T.J, Welch's total Compensation .as a Battalion Chief with the Alameda County Fire District until such time that the Alameda County Fire District forms a third battalion or T.J. 5 Welch moves into another position other than the position he will hold on july 1, 1997. San Ramon' shall reimburse Dublin within 30 days of submission by Dublin of. an invoice for such costs. 9. conflicts Between J~TPA and SecondAmendment. In the 'event o~ any conflict, express or implied, between this Second Amendment and the JEPA, the ~rovisions of'this Second Amendment shall prevail~ IN WITNESS WHEREOF, the parties have executed this Second Amendment On the dates indicated below. CITY OF SAN RAMON Dated~ By: PATRICIA BOOM, Mayor APPROVED AS TO FORM: ATTEST: · bob SAXEJ City Attorney ~UDY MACFARLANE, City Clerk CITY OF DUBLIN · Dated: By:. " GUY HOUSTON, Mayor 'APPROVED AS TO FORM: ATTEST: ELIZABETH H: SILVER KAY KECK, City Clerk City Attorney ramon19. doc/md ~--~. ,]un 05 O1 01:44p 1RFF LOCflL 55 DlUUd',uo"' ~ ALAMEDA COUNTY FIRE !GHTERS 41 4 - 13th Street, Su}te 300 · Oakland, CA 948~ 2 INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 55 June 3,2001 Honorable City Council Members City of Dublin 100 Civic Plaza Dublin, CA 94680 RE: DIH~A PERS (Safety') 3% (~ 50 Benefit Dear City Council Members: This letter shall confirm my receipt of the City of Dublin City Council agenda statement (City Clerk File #540-01, Item #5.1) prepared by Richard C. Ambrose, City Manager for the June 5, 200t meeting. Mr. Ambrose's response to my request for 'modification of the DRFA PERS contract concludes that "no public purpose" could be identified that would ]usti/> this amendment. It is our belief that this conclusion does not take into consideration the myriad of beneficial public purposes that occur as a result of this PERS modification. The requested 3% @ 50 PERS modification results in the older most tenured employees being replaced by younger. lower salaried, entry-level employees with full term (usually 28 + years) of PERS contributing years ahead of them. Most of these retirees hold promoted positions at the highest step levels of their respective ranks; their replacements are promoted at lower step levels with several years necessary to reach maximum salary steps. Likewise, older employees traditionally have a higher rate of injury and longer rehabilitation times. Longer tenured employees have achieved the highest vacation accrual levels and' are then replaced by employees receiving the lowest accrual rates. Most enTry-level employees today are hired with paramedic certification eliminating the costly practice of training existing personal to maintain service levels. Also unique to the cities of Dublin 'and San Ramon is the po{ential benefit of being able to terminate or transfer administrative responsibilities and future staff involvement with respect to the PERS contract. This may also provide the possibility that excess reserves could be returned to their respective cities. All of the aforementioned examples result in lower operating overhead and increased cost effectivet~ess thereby directly impacting the public good. Employer contribution rates t~r PERS IABMCKENNA\Dublin Staff Report Response.doe JUN-05-~-001 01:43PM TEL)510B34081~ ID)DUBLIN CITY MGR OFFC pRGE:00~ R=98~' 51083~u~1~ Jun~05 01 01:44p I~FF LOCAL 58 ! retirements are driven lower due to an average employee age reduction resulting in a lower per employee cost that is passed on to the contracting agencies in the form of lower selwice costs. Not to be overlooked is the maintenance of organizational moral when all employees are provided equal benefit within the department. The City of San Leandro recently concluded that it was in the best interest of the public mid foirner employees to amend their PERS contract to 3% @ 50 to include 85 former San Lemidro Firefighters because it was the proper action to take in honoring the communities continued commitment to the dedicated men and women who have selflessly and proudly served the public interest. It is my distinct hope that the honorable and progressive Ci.ty of Dublin comes to the same conclusion. Your consideration & support in this matter would be greatly appreciated. if I can provide any further information and/or assistance please feet free to contact me at (510) 914-6028 Sinc'~?Y' c~>President ' Si>/j>(~~y~ers / IAFL Local #55 I:\BMCKENNA\Dublin Staff Report Response, doe JUN-05-8001 01: 45PM TEL)510854081~ ID )DUBLIN CITY MGR OFFC PAGE: 003 R=98x Jun_05 O1 01:44p 1RFF LOCRL 55 51Us~'~u~l~ p.l INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS LOCAL 55 AFFILIATED WITH: STEVE SPLENDORIO, PREBIDEArF &FL-CXO J.~4ES E, SM[h'H, VICE PRESIDEhT CALIFORNIA LABOR FEDEI~ATION DENNIS J. RAINERO, SECRErARY-Tt~EA.YURER CENTRAL LABOR COUNCIL OF ALAMEDA COUNTY INTERNATIONAL ASSOCIATION OF I=IREFtGHTERS CALIFORNIA PROFI~IONAL FIREFIGHTERS 414 - 13TM STKEET, SUITi~ 300 OAKLAND, CA 94611 (510) 83,~-9672 FAX: (510) 834-0812 FAX TRANSMISSION Date.' ~- 5"- O/ Nu?nber of pages including this cover page: WARNING: This message is intended only far the use of the individual or entky to wb2ch it is addressed and may conudn information that is privileged, confidential, and exempt from disclosure under applicable law. If y,m am not the intended recipient, you arc hereby notified fixat any use, dis.~m.inadon, dis~ibution. or co!vying of this cornmutilation is s~rictly prohibited. If you have received ~s JUN-05-2001 01: 42PM TEL)5108340818 ID)DUBLIN CITY MGR OFFC PAGE: 001 R=98~'