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HomeMy WebLinkAboutDRFA Retiree 3%@50CITY CLERK 540-10 AGENDA STATEMENT JOINT DUBLIN & SAN RAMON CITY COUNCIL MEETING DATE: JUly 24, 2001 SUBJECT: Dublin ATTACHMENTS: RECOMMENDATION: FINANCIAL STATEMENT: Consideration of Amendment to the Dougherty Regional Fire Authority (DRFA) Joint Exercise of Powers Agreement (JEPA) to Allow for Amendment to the DRFA contract with the Public Employees Retirement System (PERS) to Provide Enhanced Retirement Benefits (PERS 3% at 50) to Former Dougherty Regional Fire Authority Employees; to reconstitute the Board of Directors of DRFA; and consideration of termination of DRFA contract with PERS. Report Prepared by Richard C. Ambrose, City Manager of City of JEPA (DRFA) Agreement Second Amendment to JEPA (DRFA) Letters of April 19 and April 27, 2001 from Alameda County Firefighters/IAFF Local No. 55 June 7, 2001 letter from Mayor Houston to Mayor Hudson Determine if there is interest in Amending the JEPA to authorize an amendment of the PERS contract to allow for increased retirement benefits for former DRFA employees; Determine if there is an interest in amending the JEPA to change the composition of the Board of Directors; and Determine if there is an interest in terminating the DRFA' contract with PERS 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 piano 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 cost of such an amendment as of June 30, 1999. Based on the June 30, 1999 PERS valuation, the plan assets equal $6,645,475 (given no amendment). Since the most recent valuation is out of date the cost could vary. COPIES TO: Brian McKenna, President Alameda County Firefighters William J. McCammon, Fire Chief, ACFD Rick Probert, Fire Chief, San Ramon Valley Fire Authority DESCRIPTION: Background DRFA was formed in 1988 between the Cities of Dublin and San Ramon to provide fire services. (See Attachment 1.) In early 1997, the City of San Ramon decided to provide fire services by 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 only 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 action. (JEPA 3.1) The Second Amendment prohibited DRFA from having employees as of July 1, 1997 (JEPA 3.3) and limited the Board'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. 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, 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. On April 27, 2001, the Dublin City Council received the attached letter from the Alameda County Firefighters/IAFF Local #55 (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 Fire. The Fire Union is requesting DRFA modify its contract with PERS so that former DRFA employees receive 3% at 50 for those past years of service with DRFA and DSRSD. The DRFA Board of Directors, which consists of the City Managers of Dublin and San Ramon, met twice regarding the PERS 3% at 50 retirement issue. The Board first discussed this matter on February 7, 2001, at the request of Alameda County Fire Chief William McCammon. The request came to the DRFA Board 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 benefit. At that time, the DRFA Board directed Staff to get a legal opinion regarding DRFA's authority to amend the PERS contract, 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. 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 Councils of both cities for consideration provided that the person making the request identify the public purpose and public benefit of the PERS contract amendment. The DRFA Board never received such a request. On June 5, 2001, the Dublin City Council reviewed a.letter dated April 19, 2001, from Alameda County Firefighters/IAFF Local No. 55 requesting retirement enhancement benefits (PERS 3% at 50) to former Dougherty Regional Fire Authority employees. During this meeting the Dublin City Council voted unanimously to direct Staff to write a letter to San Ramon asking them if they are interested in meeting to reconstitute/change the JEPA as the DRFA Board and look at the issue of 3% ~ 50, closing out the PERS contract, and distributing the excess assets (funds) to both Cities. The City of San Ramon indicated an interest in discussing the DRFA issue, resulting in the Joint City Council Meeting this evening. San Ramon has not received a letter similar to the April 19, 2001 letter from Local 55 to the Dublin City Council. What Does the Enhanced Retirement Benefit Request Represent Financially? In January 2001, at the request of the Fire Union, PERS provided DRFA and Local 55 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 assets in excess of the total present value of retirement benefits for its current members, and was therefore "super-funded" as of June 30, 1999. The Analysis showed that the difference between the total value of retirement benefits for current members and the actuarial value of DRFA's plan assets was $6,645,475, representing the amount, as of June 30, 1999, of DRFA's excess plan assets. These assets are the monies that the Cities of Dublin and San Ramon overpaid into the plan during DRFA's active period and market earnings. As of 6/30/99 Change Due To Post-Amendment Requested Amendment Assets Accrued Liability $ 16,945,195 $ 2,420,839 $ 19,366,034 Assets 23,590,670 1,116,133 24,706,803 Unfimded Liability (6,645,475) 1,304,706 (5,340,769) The analysis above shows 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 cost of such an amendment as of June 30, 1999. If there were such an amendment, the excess plan assets would be reduced by that amount, to $5,340,769 (based on 6/30/99 valuation). Since DRFA's plan was superfunded as of 6/30/99, DRFA's contribution level would continue to be zero; however, there would be a cost to the plan due to a decrease in assets. Thus, if DRFA wishes to terminate its contract with PERS someday, the refund of its excess assets would be significantly less if DRFA were to provide the enhanced retirement benefits than if it decided not to provide those benefits. In light of downturn in the stock market since June 1999, it is likely that the excess assets left over would be significantly less than $5,340,769. It is important to note that, in the unlikely event ora shortage of funds in future years, DRFA would be required to pay the deficit, not inactive employees. Who is Affected By the Request for Enhanced Retirement Benefits? DRFA's June 30, 1999 PERS valuation included 50 inactive DRFA safety members. These are the former employees of DRFA that chose not to retire. Of those 50 members many came to DRFA from the Dublin San Ramon Services District (DSRSD) or another PERS agencies. Those employees brought to DRFA their service credit from DSRSD or another agency. After they left DRFA on July 1, 1997 those 50 former DRFA employees began new employment; thirty-one (31) went to the Alameda County Fire Department and six (6) went to the San Ramon Valley Fire Protection District (SRVFPD), and the remainder went to other agencies, retired, or left the PERS system entirely. 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. 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). 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 by that agency; it is the new employer that begins to make contributions to PERS and the employee receives the new agency's contracted PERS benefits and service credits. Local 55's letter of April 27, 2001, (See Attachment 3) implies that inactive DRFA employees will pay 13.7% of their salary to receive the enhanced retirement benefit for service with DRFA and DSRSD. This is not correct. What is correct is that the MOU with Alameda County Fire Department provides for the 3% at 50 PERS retirement benefit, but also requires active Alameda County employees contribute 13.7% of their salary towards the enhanced benefit for service with Alameda County. (By law, such employees contribute 9% of compensation for PERS benefits; it thus appears that Alameda County employees are paying an additional 4.7% to PERS to help fund the increased benefits.) Former DRFA employees will never make a contribution to DRFA (to Alameda County or to any other current employer) for this enhanced retirement benefit, if DRFA provides this benefit. Does a Public Purpose Exist to Grant the Enhanced Retirement Benefit Request? Article XVI, Section 6, of the Califomia 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 nor can it because it is precluded from employing anyone. Even though some of the firefighters 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 funds 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 providing 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 firefighters, and may not provide different retirement benefits for any subgroup of members. Thus, DRFA must treat all former firefighters 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. This will result in all former DRFA employees who have not retired, regardless of who their public employer is, receiving increased retirement benefits for their years of service with DRFA (or its predecessor, the Dublin San Ramon Services District) at the expense of DRFA~s two members, Dublin and San Ramon. 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. A separate issue, unrelated to the request for enhanced retirement benefits, is whether the two City Councils wish to direct the existing Board to begin the process of terminating the contract with PERS and redistributing the excess assets (funds) back to the two Cities which made the overpayments. As discussed above, the amount of excess funds would be significantly less if the retirement enhancement amendment occurs prior to terminating the PERS contract. It was because of the obligation to provide retiree medical benefits that the PERS contract was not terminated in 1997 when DRFA ceased providing fire services to the cities. Staff has determined that it is now possible to provide retiree medical benefits through PERS following termination of the PERS contract. There is, thus, no reason not to terminate the PERS contract. The excess assets will be returned to PERS and then distributed, to the. tWo cities in accordance with the provisions of the JEPA. The termination process is estimated to take 3-4 years. Should the City Councils desire to begin the contract termination process, Staff would recommend PERS conduct an up-to-date valuation analysis. The cost of this analysis would be paid by DRFA and split between the Cities of Dublin and San Ramon. The existing Board currently has the authority to terminate the contract with PERS; giving the existing Board this direction would not require an amendment to the JEPA. Recommendation Staff recommends that the City Councils review the staff report and deny the request to provide enhanced retirement benefits to former DRFA employees; or Determine if there is an interest to amend the JEPA (DRFA) to further consider Local 55's benefit enhancement request and, if so, consider changing the composition of the Board of Directors from the two City Managers to some or all of the two City Councils. If this alternative is selected, Staff of each City can return with the DRFA JEPA amendment for each respective City Council to adopt. Finally, staff recommends that the two City Councils provide direction to the DRFA Board of Directors with respect to whether to initiate the termination of DRFA's contract with PERS. JOINT EXERCISE OF POWERS AGREEMENT DOUG~F~RTY REG'iON~AL FIRE AUTHORIT~ THIS.AGREEMENT is entered into on the effective date hereinafter set forth by and between the member agencies signatory hereto (hereinafter "Member Agencies"). W I T N E S S E T H: WHEREAS, Title 1, Division 7, Chapter 5 of the Government Code of the State of California authorizes said Member Agencies to.enter into agreement for the joint exercise of any power, common to them; and WHEREAS, said Member Agencies possess the power to provide for fire protection and suppression services within their respective jurisdictions; and WHEREAS, the jurisdictional areas of the Member Agencies are contiguous to each other, are developed to substantially the same level of density, and are susceptible to being provided with fire protection services and facilities under common administration and management and with the same equipment, resources and personnel; and WHEREAS, the separate management and administration of each jurisdictional area by each of the respective agencies and using separate equipment, resources and personnel will result in duplication of effort, inefficiencies in administration and excessive costs, all of which, in the judgment of the agencies, ATTACHMENT can be eliminated, al~ to the substantial advantage and benefit of the citizens and taspayers of both agencies, if the administration and management of the fire protection facilities and services employing common equipment, resources and personnel were to be consolidated in a single public agency; and such is the purpose of this Agreement; NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE PREMISES, THE MUTUAL ADVANTAGES TO BE DERIVED THEREFROM AND IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN CONTAINED, IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: ARTICLE I 'DEFINITIONS Unless the context otherwise requires, the words and terms defined in this 'Article shall, for the purpose hereof, have the meaning herein s~ecified. Section 1.1. A¢__~t. "Act" means Article 1 and Article 2 (commencing with Sect&-on 6500) of Chapter 5, Division 7, 'Title 1 of the Government Code of California. Section 1.2. Agreement. "Agreement" means this joint exercise .of powers agreement. Section 1.3. Area. "Area~ and -jurisdictional area" mean that...area within the 'corporate limits of the City of Dublin and the City of San Ramon as they now exist or may hereafter exist and not .within the jurisdictional area of any other fire protection district. -2- Section 1.4. Authority. ,Authority" means the Dougherty Regional Fire Authority created pursuant to this Agreement. Section 1.5. Board of Directors. "Board of Directors" means the governing board~of the Dougherty Regional Fire Authority referred to in Section 1.4. Section 1.6. Bond Law. "Bond Law" means Article 2 of Chapter 5, Division 7, Title 1 of the California Government Code, as now or hereafter amended, or any other law hereafter legally available for use by the AuthOrity in the authorization and issuance of bonds to finance needed public facilities. Section 1-7. Bylaws. "Bylaws" refers to the operational and organizational directives of the joint powers of the Dougherty' Regional Fire Authority- Section 1.8. Chief Executive Officer. "Chief Executive Officer" means the chair of the Management Committee. Section 1.9. Controller/Treasurer- .Controller/Treasurer" means the Financiai Director and Finance Manager of the Authority having the responsibility and accountability of the Authority's funds. Section 1.10. Fire Chief. "Fire Chief" means the employee of the AuthOrity directly responsible to the Management Committee and primarily responsible for the managerial oversight u£ the operations of the Authority. SectiOn 1.11' Fiscal Year. "Fiscal Year" means the period from July 1st to and including the following June 30th. -3- Section 1.11. Fiscal Year. "Fiscal.Year" means the period from July 1st to and including the following June 30th. Section 1.12. Joint Facilities. "Joint Facilities" means all existing fire protection facilities, equipment, resources' and property to be Owned, managed and operated by the Authority pursuant to Section 5.3 hereof, and, if and when acquired or constructed, any. improvements and additions thereto. Section 1.13. Legislative Bodies. "Legislative Bodies" means the city councils or elected representatives of the Member Agencies of the Authority. Section 1.14. Management Committee. "Management Committee" means the City Manager of each of the Member Agencies of the Authority. Section 1.15. Member Agencies or Agency. "Member Agencies" means both public agencies signatory to this Agreement. "Member Agency" means any'such party. Section 1.16. Quorum. "Quorum" means a majority of the Board of Directors, but in no case less than two (2) persons from each Member Agency, necessary tO conduct business. Section 1.17. Secretary. "Secretary" means the Secretary of the Dougherty Regional Fire Authority. ARTICLE II GENERAL PROVISIONS Section 2.1. Purpose. This Agreement is made pursuant to tb~ Act providing for the joint exercise of powers common to the Agencies. The purpose of this Agreement is to provide for the joint exercise of powers to own, manage, operate and maintain --4-- the Joint Facilities as they now exist and to implement the financing, acquiring, and constructing of additions and improvements thereto and additional facilities and property and thereafter to manage, operate and maintain the Joint Facilities, as so added to and improved, all to the end that the Area is provided with more efficient and economical fire protection service, and, if necessary, to issue and repay revenue bonds of the Authority pursuant to the Bond Law. Each of the Agencies is authorized to exercise all such powers (except the power to issue and repay revenue bonds of the Authority) pursuant to its organic law and the Authority is authorized to issue and provide for the repayment of 'revenue bonds pursuant to the provisions of the Bond Law. Section 2.2. Creation of Authority. Pursuant to the Act, there is hereby created a public entity to be known as the "Dougherty Regional Fire Authority", herein called the "Authority". The Authority is a public entity separate and apart from .the City of Dublin and the City of San Ramon and shall administer this Agreement. The Authority may be commonly referred to as the "Dougherty Regional Fire Department". Section 2.3. Effective Date of'Agreement. This Agreement shall become effective when signed and executed by both Member Agencies. Section 2.4.~ Operational Date of Agreement. This ~Agreement shall become operational on July 1, 1988, or the effective date'of the Authority's contract with the Public Employees Retirement System, whichever occurs later. --5-- Section 2.5 Schedulin~ of Transition. After the effective date of this Agreement and prior to the operational date, the Board of Directors shall adgpt a schedule of performance outlining the transition of services, personnel, equipment, and capital facilities to the Authority. The Management Committee created by this Agreement shall be responsible~ for the implementation of said schedule of performance sufficient to meet the operational date. Section-2.6. Term. This Agreement shall be effective on the date hereof and shall continue in effect until such time as all bonds (if any) and the interest thereon issued by the Authority under the Bond.Law or the Act shall have been paid in full or provision for such payment shall have been made and thereafter until such time as the Authority and the Agency.es shall have paid all sums due and owing pursuant.to this Agreement or pursuant to any contract executed pursuant to this Agreement, and thereafter until terminated pursuant to Article VIII. Section 2.7. Governin~ Board. The Authority shall be administered by a Board of Directors consisting of six (6) members. Three (3) members shall be Council members of the City of Dublin and shall be appointed by the City Council of the City of Dublin, and three (3) members shall be Council members of the City of San Ramon and shall be appointed by the City Council of the City of San Ramon. Each City Council shall appoint an alternate Board member from the City Council who may act in the abSence of a member appointed by that City Council. The Board of Directors shall be called the "Board of Directors of the -6- Dougherty Regional Fire Authority". All.voting power of the Authority shall reside with the Board of Directors. (a) Ail Board members shall serve at the pleasure of the Agency that appointed such member. (b) All vacancies on the Board-shall be filled by the appointing entity within thirty (30) days of the vacancy. Each Director shall cease to be a member of the Board of Directors when such member ceases to hold office as a councilmember of the appointing entity. (c) Members shall receive compensati°n and reimbursement for reasonable and necessary expenses incurred in performance of their duties, as provided in the Bylaws. Section 2.8. Meetings of the Board of Directors., All meetings of the Board of Directors shall be public meetings anless a specific clgsed session is held in accordance with the Government Code. (a) Regular Meetings. The Board of Directors shall provide for regular meetings at a date, time, and place fixed by resolution of the Board of Directors which shall be at least quarterly. (b) Special Meetings. Special meetings of the Board of Directors may be called in accordance with the provisions of Section 54956 of the California Government Code, for the purPose of taking immediate action for emergency measures, as necessary. (c) Call, Notice, and Conduct of Meetings. Ail meetings of the Board of Directors, including without limitati°n, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the provisions of Sections 54950, et seq., of the California Government Code.' Section 2.9. Required Votes; Approvals. The affirmative votes of at least two members of each Agency shall be required to take any action by the Board of Directors and less than a quorum may adjourn from time to time. Section 2.10. Voting. Each member of the Board of Directors shall have one vote. Section 2.11. Minutes. The Secretary Shall cause to be kept minutes of the meetings of the Board of Directors and shall, as soon as pOssible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board of Directors and to each Member Agency. Section 2.12. Bylaws. The Board of Directors may adopt, from time to time, such bylaws, rules, and regulations for the conduct of its meetings and affairs as are necessarY for the purposes hereof. ARTICLE III ORGANIZATIONAL STRUCTURE OFFICERS AND EMPLOIq~ES Section 3.1. Chairperson 'and Vice-Chairperson. The Board of Directors shall elect a Chairperson and Vice-Chairperson from -8- among its members. The Chairperson and Vice-Chairperson.shall rotate from each Member Agency annually such that the Chairperson and Vice-Chairperson shall not be appointed from the same Member Agency. In the event of the disqualification or permanent inability to serve as the Chairperson during the year, another member from the same Agency shall be appointed Chairperson to fulfill the one-year term. (a) The Chairperson shall sign all contracts on behalf of the Authority and shall perform suCh other duties as may be imposed by the Board of Directors. (b) The Vice-Chairperson shall act, sign contracts, and perform all of the Chairperson's duties in the temporary absence of the Chairperson. Section 3.2. Secretary. The Chief Executive Officer shall be the Secretary to the Board and shall countersign all contracts signed by the Chairperson or Vice-Chairperson on behalf of the Authority, perform such other duties as may be imposed by the Board of Directors and cause a copy of this Agreement to be filed with the Secretary of State and the-State of California pursuant to Section 6503.5 of the Act. Section 3.3. Controller/TreaSurer. The Controller/Treasurer of the Authority shall be designated in the Bylaws. The Controller/Treasurer shall be the depository and shall have custody of all of the accounts, funds and money of the Authority from whatever source. The Controller/Treasurer shall have the duties and obligations set forth in Sections 6505 -9- and 6505.5 of. the Joint Exercise of Powers Act of the California Government Code, and shall assure that there shall be strict .accountability of all funds and reporting of all receipts and disbursements of the Authority.. SectiOn 3.4. OffiCers in Charge of Property. Pursuant to Section 6505.6 of the California Government Code (Joint Exercise 'of Powers Act), the Controller/Treasurer shall have charge of, handle, and have access to all accounts, funds, and money of the Authority and all records of the authority relating thereto; and the Secretary shall have charge of, handle, and have access to all other records of the Authority; and the Management Committee shall have charge of, handle, and have access to all physical properties of' the AUthority. Section 3.5. Bonding Persons Having Access to Property. From time to time, the Board of Directors may designate persons, in addition to the Secretary, Controller/Treasurer, and Management Committee, having charge of, handling, or having access to any property of the Authority. The Board of Directors shall also designate the respective amounts of the official' bonds of the Secretary, Controller/Treasurer, and of the Management Committee members and such other persons pursuant to Sectiun 6505.1 of the California Government Code (Joint Exercise of Powers Act). Section 3.6. Management. The regular management of the Authority shall be vested jointly in the Management Committee. The Board of Directors shall annually appoint a Chairperson of the Management Committee who shall be designated as the Chief. -10- Executive Officer of the Authority and a ViCe-Chairperson of the Management Committee who shall act in the absence of the Chief Executive Officer. The Chief Executive Officer shall be rotated annually· such that the Chief Executive Officer is from the same Agency as the Chairperson of the Board. The Management committee shall have the power: (a) To provide for the planning, design, and construction of any additions or improvements to the Joint Facilities·operated by the Authority; (b) Except as otherwise provided in clause (h) of this Section, to execute any contracts for capital costs, costs of special services, equipment, materials, supplies, maintenance, or repair that involve an expenditure by the Authority within the limits and in accordance with procedures to be established by the Authority in the manner provided for local agencies pursuant to Article 7, commencing with Section-54201 of .Chapter 5 of Part 1 of Division 2 of Title 5 of the California Government Code; (c) To appoint and employ all personnel of the Authority required for maintenance and operation of the Joint Facilities, including a Fire Chief, and all other employees authorized by the Authority's budget or by the Board of Directors; (d) To retain any consultants, including labor relations consultants or certified public -11- (i) accountants, as authorized in the Authority's budget; (e) Subject to approval of the Board of Directors, to appoint and employ all personnel of the Authority or consultants required to be employed or retained in connection'with the design of any additions or improvements of the Joint Facilities or construction of new Joint Facilities; (f) To expend funds of the Authority and enter into contracts, whenever required in the combined judgment of. the Management Committee, or for the immediate preservation of the public peace, health, or safety; (g) To sell any personal property of the Authority as may be provided in the Bylaws; (h) To approve demands for payments by the Authority of Fiv~.Thousand Dollars ($5,000.00), or less, which are authorized in the budget; To prepare .and submit to the Board of'Directors in time for revision and adoption by it prior to March'l Of each year, the annual preliminary budget for the next succeeding Fiscal Year referred to in Section 6.1; (j) Generally, to supervise the acquisition, construction, management, maintenance, and operation of the Joint Facilities and personnel of the Authority; ' (k) To perfOrm such other duties' as directed by the Board of Directors and report to the Board of Directors at such times and on such matters as the Board of Directors may direct. Section 3.7. Legal Advisor. The Board of Directors shall have the power to appoint the legal advisor of the Authority who shall perform such duties as may be prescribed by the Board of Directors? Section 3.8. Other Services. The Board of Directors shall have the pOwer to appoint and employ such other consultants and independent contractors as may be necessary for the purposes of this Agreement. Section 3.9. Administrative Support. The Member Agencies hereby each agree to provide to the Authority certain administrative support functions as shall be provided in the Bylaws. These functions shall be divided among the Member Agencies so that each Member Agency provides an equal amount of support services in 'proportion to the other Member Agency and any inequalities in the cost of support services provided shall result in an adjustment to the annual "operating costs" as provided in Section 6.3. Administrative support functions shall include, but not be limited to, financial (including payroll, purchasing and risk management) and personnel (including labor relations). Section 3.10. Non-Liability of Agencies. None of the officers, agents, or employees directly employed by the Authority shall be deemed,.bY reason of their employment by the -13- Authority, to be employed by either Agency or, by. reason of their employment by the Authority, to be subject to any of the. requirements of either Agency. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers' compensation, and other benefits which apply to the a~tivities of the officers, agents, or employees of Member Agencies when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement. ARTICLE IV POWERS OF THE AUTHORITX Section 4.1. General Powers. The Authority shall exercise in the manner herein provided the powers common to each of the Member Agencies, as provided by the laws of the State of California, and all incidental, implied, expressed, or necessary powers for the accomplishment of the pUrposes of this Agreement, subject to the restrictions set forth in Section 4.4. As provided in the California Government Code (commencing with Section 6500), the Authority shall be a public entity separate from the Member Agencies. The Authority shall have the power to finance, acquire., construct, manage· maintain, and operate Joint Facilities. The Authority shall have all of th~ POwets provided in Article 2 of the Joint Exercise of Powers Act, unless specifically prohibited by this document. -14- Section 4.2. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any of the following: (a) To make and enter into contracts; (b) To employ agents or employees; (c) To acquire' construct, manage, maintain, or operate any buildings, works or improvements; (d) To acquire, hold, or dispose of property; (e) To sue and be sued in its own name; (f) To incur debts, liabilities or obligations, subject to the provisions of this Agreement, provided that no debt, liability or obligation shall constitute a debt, liability or obligation upon any Member Agency; (g) To apply for, accept, receive, and disburse grants, loans~ and other aids from any agency for the United States of America or of the State of California; (h) To invest'any money in the treasury pursuant to Government Code Section 6505.5 that is not required for the immediate necessities.of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code; -15- (i) To carry out and enforce all the provisions of this Agreement. Section 4.3. Bonds. The Authority shall have all of the powers provided in Article'2 of the Act (commencing with Section 5640), including the power to issue revenue bonds under the Bond Law. Section 4.4. Restrictions on Exercise of Powers. The power of the Authority shall be exercised in the manner provided in the California Government Code and in the Bond Law, and, except.for those powers set forth in the Bond Law, shall be subject (in accordance with Section 6509 of the Joint Exercise of Powers Act) to the re~trictions upon the manner of exercising such powers that are imposed upon general law cities in the State of California in the exercise of similar powers. Section 4.5. Obligations of Authority. The debts, liabilities, and obligations of the Authority shall not be the debts, liabilities, and obligations of any Member Agency. ARTICLE V METHODS OF PROCEDURE Section 5.1. Assumption of Responsibilities by the Authority. As soon as practical after the effective'date of this Agreement, the respective Member Agencies shall appoint members of the Board of Directors and alternates, and the City Managers of the Member Agencies shall give notice (in the manner required by Section 2.8) of the organizational meeting of the Board of Directors. At said meeting, the Board of Directors shall provide for its regular meetings as required by Section -16- 2.8, elect a Chairperson and Vice-Chairperson, and appoint the Chief Executive Officer, all of whom shall serve until the first regular meeting following the end of the succeeding Fiscal Year. Section 5.2. Delegation of Powers; Transfer of Records, Accounts, Funds, and Property. Each Member Agency hereby delegates to the Authority the power and duty to maintain, operate, and manage any fire protection facilities, equipment, resources, and property of each of the respective Member Agencies within their territorial jurisdiction, including without limitation all fire stations, land, buildings, fire fighting equipment and emergency response equipment, and to employ the necessary personnel to do any and all other things necessary or desirable to provide continued efficient and economical fire protection services to the Member Agencies.' The ~ proper officers and employees of each of the Member Agencies shall'transfer to the Secretary, Controller/Treasurer, and Management Committee of .the Authority, all records, accounts, funds, and property of each of the Member Agencies which relate to the providing of fire protection services and which are necessary or desirable to allow the Authority to function. The records, accounts, funds, and property described herein shall be further identified and defined in an inventory to be developed by the Management Committee during the period b~t-~een the effective date and the operational date of this Agreement. This inventory shall be approved by the Board of Directors'prior to the transfer of. any such records, accounts, funds, and property. Each Member Agency agrees to execute or -17- .authorize the execution of all legal documents necessary to accomplish such said transfer. Section 5.3. Joint Fire Protection Maintenance and Operation Fund. The Board of Directors shall create a joint fire protection maintenance and operation fund (herein called the "operating fund"). Upon the organization of the Board of Directors, the Authority shall assume resPonSibility for the maintenance and operation of the operating fund and shall pay the administrative expenses of the Authority 'and all maintenance and operation.costs of the Joint Facilities from said fund. Each of the Member Agencies shall pay into said fund its proportionate share of th~ maintenance and operation costs of the Joint Facilities, computed on the bases set forth in Section 6.3 of this Agreement. Section 5.4. Capital Acquisition and Replacement Fund. The Board of Directors shall create a capital acquisition and replacement fund ("capital fund") for the purpose of creating a fund for replacement and acquisition of capital equipment and property. Each Agency shall transfer its share of the capital replacement and acquisition fund received from the Dublin-San Ramon Services District into the capital fund and shall annually pay into said'fund its proportionate share of capital replacement costs, as provided in Section 6.3. Any fire connection fees imposed for capital improvements shall be deposited in the capital fund (and shall be accounted for on the basis of origination by Member Agency) and shall be used for capital acqUisiti°ns. -18- ARTICLE VI BUDGET/COSTS MAINTENANCE AND OPERATION/OTHER COSTS. Section 6.1. Annual Budget. The Board of Directors shall adopt a preliminary budget for maintenance and operation costs, capital costs, costs of special services, and bond interest and redemption expenses (if any) annually priOr to March 1 of each year and shall adopt a final budget prior to June 30 of each year. The budget for Fiscal Year 1988-89 shall be approved by each Agency and provided to the Board at its. organizational meeting. Section 6.2. Records and Accounts. The~Authority shall cause to be kept accurate and correct books of account, showing in detail the capital-costs, costs of special services and maintenance, and operation costs of the Joint Facilities, and all financial transactions ofthe Member Agencies relating to the Joint Facilities, which books of account shall correctly show any receipts and also any costs, expenses, or charges paid or to be paid by each of the Member Agencies. Said books and records shall be open to inspection at all times during normal business hours by any representative of a Member Agency, or by any accountant or other person authorized by a Member .Agency to inspect said boOks or records. The Controller/Treasurer shall, in accordance with Sections 6505 and 6505.6 of ~e California Government Code (Joint Exercise of Powers Act), cause the books of account and other financial records of the Authority to be audited annually by an independent public acc°untant or certified public accountant. -19- Section 6.3. (a) (b) Allocation of Costs and Expenses: Generally. Annual Estimate. After adoption of the preliminary budget and prior to April 1 of each year, the Authority shall furnish to each of the Member Agencies .an estimate of the total annual maintenance and operation costs, capital costs, costs of special services, and bond interest and redemption expenses (if any). Operating Costs. The proportion of annual maintenance and operation costs (referred to as "operating costs") to be borne by each Agency shall be based on the assessed valuation of all property within the jurisdictional area of each Member Agency as follows: The assessed valuation of all property within the Jurisdictional area of each Member Agency, as shown on the latest assessment rolls used for distribution of taxes ("assessment rolls"), shall be added togeth'er and the percentage thereof that the total assessed value for each Member Agency bears to the whole will be the percentage of operating costs of the Authority to be' borne by that Member Agency. The percentage to be used for the succeeding Fiscal Year shall be determined by the Management Committee each year prior to April 1, based on the assessment rolls for that Fiscal Year. In the event that the Management Committee is unable to -20- (c) (d) agzee on the percentage for any year, the Board shall determine' the percentage. As used herein, "assessed valuation" shall, in the case of property within a redevelopment area,~mean the assessed valuation plus any increments in value. The percentage for Fiscal Year 1988-89 shall be determined by the Board at its first meeting~and shall be based on the assessment rolls for Fiscal Year 1987-88. Capital Acquisition Costs, Costs of Special Services, Bond Expenses. Costs of acquiring new equipment o~ constructing new facilities, costs of special services and bond interest and redemption expenses (if any) shall be borne by each Member Agency as may be agreed by the Legislative Bodies of the two Member Agencies. At the time new equipment is purchase (with the exclusion of replacement equipment) or new facilities are constructed or real'property is purchased, the Legislative Bodies shall determine the method of disposing of such assets upon termination. Capital Replacement Costs. The prOporti°n of capital replacement costs to be borne by each Member Agency annually shall be based on the percentage for each year as determined pursuant to Section 6.3(b). -21- (e) Mello-Roos SPecial Tax. Either Agehcy or the Authority may use the proceeds of a special tax imposed pursuant~to Government Code Section 53311, et seq., ("Mello-Roos Community Facilities Act of 1982") to pay for construction of a new fire station or to pay operating costs of a new fire station. Section 6.4. Payment of Costs. Beginning on the operational date of this Agreement, and monthly in advance thereafter for each Fiscal Year, each Member Agency agrees to pay the Authority its allocated share of the total estimated annual costs and expenses', as set forth in Section 6.3, subsections (a) to (d). The AUthority shall submit to each of the Member Agencies .a final detailed statement of the final costs and expenses for the Fiscal year, allocated in the same manner as estimated expenses were allocated, within three (3) months after the close of each Fiscal Year,. whereupon final adjustments of debits and credits shall be made by the Authority. If the amount of any allocated share of any estimated item of expense due from a Member Agency was less than the final allocation of such item to such Member Agency, such Member Agency shall forthwith pay the difference to .the Authority. If the amount of any allocated share of any estimated items of expense from a Member Agency was in excess of the final allocation of such item to such Member Agency, the Authority shall credit such excess t° the appropriate account of such Member Agency. -22- Section 6.5. Sources of Funds. Each Member Agency shall provide the funds reqDired to be paid by it to the Authority under this Agreement from any source of funds legally available to such Member Agency for such purpose. Section 6.6. Additional Charges to Members. Member Agencies shall be held financially responsible for direct additional costs encumbered by the Authority in the implementation of special programs, projects, and services in addition to normal fire prevention and suppression activities requested by the respective Member Agency's City Council, or city administrative staff for that specific Member Agency. ARTICLE VII OWNERSHIP; ENFORCEMENT Section 7.1 Ownership of Joint Facilities. Prior to the operational date, each ~ember Agency shall convey to the Authority the real and personal property described in Exhibit A "hereto which real and. personal property will thereafter b~ owned, managed and operated by the Authority. Section 7.2. Enforcement by 'Authority~ The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific perfor.mance, necessary or permitted by law, to enforce this Agreement. ARTICLE VIII TERMINATION Section 8.1. Termination- This Agreement shall continue until terminated by a Member Agency of the Authority in the . -23- manner hereinafter provided. Upon termination, any obligation of the Authority which continues following termination shall be borne by the Member Agencies based on the percentage determined pursuant to paragraph 8.3. Section 8.2. Effective Dates of Termination- Such termination shall not under any circumstances become effective until June 30, next'succeeding a minimum of twelve (12) months following the giving of written notice of termination by City Council resolution to the other~ Member Agency's City Manager. Section 8.3. Disposition of Assets. Except as provided in Section 6.3(c), upon the termination of this Agreement, any assets acquired by the Authority during the period of its existence and still on hand and all cash reserves ("assets and cash'reserves") shall be distributed to the Member Agencies in the following manner: The total amount of maintenance and operating costs paid by each Member Agency into the operating · fund during the entire existence of the Authority shall be added together and the percentage which each Agency's total bears to the whole shall be determined. The assets and cash reserves shall be divided between the Agencies based on the above percentage, based on appraised value of the assets at the time of termination, provided that the real property conveyed to the Autherity by each Agency, as described in Exhibit A, shall be excluded from such distribution and appraisal and shall be convayed to each such Agency upon termination. In the event the .agencies cannot agree on the distribution of assets and cash reserves, an arbitrator shall be selected by the Board to -24- determine the distributiOn of assets and cash reserves. If the Board cannot agree on the selection of an arbitrator, each Agency shall select an arbitrator, and the two arbitrators shall select a third, who together shall decide the manner of distribution of assets and cash reserves, on the basis of this Agreement. The arbitrator(s) may retain the services of an appraiser to assist them and the decision of the.arbitrator(s) shall be final. The costs of arbitration (including appraisers' fees) shall be borne by the Agencies equally. ARTICLE IX MISCELLANEOUS Section 9.1. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing language in the section referred, to or to define or limit the scope of. any provision of this Agreement. Section 9.2. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. Section 9.3. Law Governing. This Agreement is made.under the Constitution and laws of the State of California and is to be so .construed. Section 9.4. Amendments. (a) This Agreement ma~ be amended at any time, except as limited by contract with bond holderS, if any.' (b) All amendments to the Agreement must be in writing, and must be approved by the City Councils -25- of the Member Agencies prior to becoming effective. Section 9.5. severability. In the event any provision of this Agreement is'determined to be illegal or invalid for any reason, all other provisions and articles of this Agreement shall remain in full'force and effect unless and until otherwise determined. The illegality of any provision of this Agreement shall in no way affect the legality and enforceability of any other provisions of this Agreement. Section 9.6. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Member Agencies. No Member Agency may assign any right or obligation hereunder without written consent of the other Member Agencies. Section 9.7. Notice. Notice of. any Member Agency to any other Member Agency shall be given in the manner and to the addresses established in the attached Bylaws for this purpose. EXECUTION OF AGREEMENT IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereupon duly authorized and their official seals'to be hereto affixed on the dates as shown herein. Dated: ATTEST: City Clerk, Ci6~ o~Dublin -26- City Attorney, City of Dublin ATTEST: ~i~y Clerk, City~f San ~ On ~ayoz, City of San Ramon APPROVED AS TO FORM: ' ~l-ty~Attorney, Cit+y o~ San I~Jnon . -:27- RESOLUTION NO. 79 - 97 A RESOLUTION OF TIlE CITY COUNCIL OF TNF. CITY OF DIJB!,IN AMENDING JOINT EXERCISE OF POWERS AGKEEMENT · DOUGn'F.~TY REGIONAL FIRE AUTHORITY WI-IEKEAS, by Kcsolution No. 15-88, the City Council approved the ":Joint Exercise of?owers Agreement/Dougherty Regional Fire Authority", which was subsequently executed by the Mayor,, and WI-IEREAS, the ,'Joint Exercise of Powers Agreemeat~ougherty RegiOnal Fke Authority:. can be amended, as provided.in Section 9.4 of said Agreement upon approval of the-City Councils of the Cities of Dubliu and San Ramon; and WI:rg.'KEAS, the City Councit~ of the Cities of Dublin and San l~_~mon approved the 'First Amendment to $oint Exercise of Powers Agreement/Dougherty Regional Fire Authority", effeative December 15, 1988; and WNEKEAS, the City Manager has .presented to the Council and has recommended approval of the "Second Amendment t° ,~oint Exerc/se of Powers Agreemeat/Dou~erty P. egional Fire Authority", a copy · of which is attached hereto as Exhibit A; and NOW,' ~OKE,.the Dublin City Council does hereby approve the "Second Ame~4m~mt to Do~ Regional Fire Authority Joint F, xerc'me ofP0wers A~reement~, md authorizes the lvhyor to execute s~id Amendment. PA~S~D, APPROVED.AND ADOPTED tb~ 17th day of~Iune, 1997. AYES: ' Counciimembers Barnes, Burton, HOWard, Lockhart and Mayor Houston NOES: None ABSENT: None ABSTAIN: None Mayor K2 /G/6-17- 9 7/rea odrf a. d oa ATTACHMENT 2 SECOND AHEND~NT TO DOUC~H~RTY ~GIONAL ~IR~. AUTHORITy JOINT EXERCISE OF POWERS AGREEMENT This is the Second Amendment to the Joint Exercise of Powers Agreement (which, together with the Fi=stAmendmentthereto is referred' Go .as "JEPA") entered int° between'the cities Of' S&n Ramon and Dublin tO create the Dougherty Regional.Fire Authority (hereinafter referred to as ,'Authority") The. CLty of San Ramon has elected to exercise its right under Paragraph 8.1 of the JEPA .to terminate the JEPA 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 sh~ll 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 li~ited-purposes beyond June 30,~ 1997. This will allow the Authority to maintain the contractual relationship with the Public Employees Retirement System through 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 F. XXIBIT · J :,~,,~1.,.,~: Te~:.. This..~cond :A~Ddm~n~ ~ha.ll become effective when approve~byl both ~e City of :Dublin a~ the City of San R~on and shall~,,-remain ~'in e~-~e=t until te~nate~ pursuant to Article 2 Continuation .o~,.:Authorit~. Nei~er Au~o=~y shal~ 'te~na~ o~ notice o~-ee~nat~o~- give. bY ~ City~.. of San ~on on June 27, 1.996,:,~.~bu= sha,lt ~continue .in ~ff~ot:::,for =he limited p~oses set 3. Administration .of Au~orit~. 3 i Governinq Boar~. Co~enc!ng July 1, 1997, the Au~or~ty'sha,ll be a~in.~stered, by a ~oard of Directors consisting . . ~ ~ ~':, ~ '. . . :, ~= .~: o~.' ~e ..City Ma~a~er~' of..~]~e.~.citi~s of San Ramon' ~d D~lin. The 'Board. shall meet as .needed' but at,least once, each year and shall =e=eive ~no .~=ompensa~ion ~r.om .the Au~ori~ wi~ ~e excepeion of reimb~s~en=.,..~for reasonable and, ,necess~y exRenses .incurred in pe~.fo~anoe .o~ ::~he~' duties. ~y. a0~i0,n by the ~Boa=d centres the conourremce~ .of .bo~ m~s. A ~or~ consists of both me,ers. Ail .meetings of the BOard shall be ~conducted in accordanpe wi~ the Ralph'M. Brown Act, ..... · 3.2 officer~,. ' e abolish ~ ef'~e=ti~e July 1, i997.. The Management committee is .The offices of Se~r~y and con~rolier/Treasurer shall.be' filled as designated'by the Bylaws. ~.3 ~. ~E~fecti~e July .%::~ 19.9~, the Authority shall have no ~mployees. 4.. P~wers. cf.,the .Authority. The Board of Directors 2 'shall have the following.specific powers and ~o.othe~s,, 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 ·4.6 To sue and be sued in its own name; .and To retain legal counsel or oth~rconsultants to assist in carrying out t~e powers authorized unde~ this paragraph. 5. DisDosition 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 veh±cles,' 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 t° the City of San .~amon for transfer to the San Ramon Valley Fire Protection District. Likewlse, all vehicles, too.ls, 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 Alameda County Fire Protection District. All.vehicles, taols, 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 o'f the' conflicting claims by June 30, 1997 shall be offered for' sale to the below-listed agencies in the following 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 as 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 JEPA .and by Paragraph 6 6. DisDosition 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 property hasbeen acquired subsequent to creation of the Authority. It is intended that such real property be treated the same as the original real property referenced in Section 8.3 of theJEPA with the result that title to all real property and improvements thereon shall be transferred by the Authority on or before June 30, 1997, Not- any. to the city in which such real property is located. 7. A~loc~tion of Operatin~ Costs for FY 1996-97~ withstanding. Section 6.3(b) of the JEPA, the cOSt of performance pay bonuses give~ during FY 1996-97 and any costs associated with 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 and 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 Ra~On. 8. ~attai±on chief Incremental Cost. · The city of San .Ra~on shall reimburse the city of Dublin for the "incremental cost" 'incurred and pa~d by .the City of Dublin in ~ts contract with .the county of Alameda for provision of f~re 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 shall reimburse Dublin in the amount of 50% of 'the "incremental cost;" during the second five years of the Dublin Fire Contract, San Ramon shall reimbur, se Dublin in the amount of 100% of the '.'incremental cost;~' and during the following five years of the Dublin 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 JEPA and Second Amendment~ In the 'event o~ any' conflict, express or implied, between this Second Amendment and the JEPA, the ~rovisions of this Second Amendm'ent shall prevail.. IN WITNESS WHEREOF, the parties have executedthis Second Amendment On the dates indicated below. CITY OF SAN RAMON' Dated': By: APPROVED AS TO FORM: PATRICIA BOOM, Mayor ATTEST: · BOB SAX~, City Attorney JUDY MACFARLANE, City Clerk CITY OF DUBLIN -Dated: By: GUY HOUSTON, Mayor · APPROVED AS TO FORM: ELIZABETH H. SILVER city Attorney ATTEST: KAY KECK, city Clerk ramon19.d~c/m:l 6 ALAMEDA COUNT .FIREFIGHTERS 414 - 13th Street, sUite' 300 Oakland, CA 94612 · INTERNATIONALASS'OCIATION OF FIRE FIGHTERS April 27, 2001 Honorable CoUncil Members City of Dublin 100 Civic Plaza Dublin, CA 94680 LOCAL 55 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 ancVor assistance please feel free to contact.me at (510) 914-6028 Sincerely, Brian M McKenna, President Alameda County Firefighters / IAFF Local #55 I:\BMCKENNAkFolIow-up Houston 3% (~ 50.doc ATTACHMENT 3 ALAMED.A COUNTY FIREFIGHTERS · 414'-13th Stree:tl Suite 30'0 ."oakland, CA'94612 INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS L O C A'L 55 O]TY OF DUSL¢N April 19, 2001 Honorable City Council Members City of Dublin 100 Civic Plaza Dublin, CA 94680 Dear Council Members The Alameda County Fire Department (ACFD) has been working with the Dougherty Regional Fire Au~ority (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% 650 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 C:\temp\97WlcKennaHouston.doc 100 Civic Plaza, Dublin, California 94568 Website: http://www, ci,dubtin,ca, us June 7, 2001 Honorable Mayor David E. Hudson City of San Ramon 2222 Camino Ramon San Ramon, California 94583 Re: 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 Dear Mayor Hudson: On June 5, 2001, the Dublin City Council received a request from the Alameda County Firefighters/IAFF Local No. 55 to provide retirement enhancement benefits (3% at 50) to former Dougherty Regional Fire Authority (DRFA) employees. The City's Agenda Statement is enclosed for you review and covers this subject in greater detail. Also, Mr. McKenna, President of IAFF Local No. 55 submitted a letter to the City Council on June 5 and I have included his letter herein. The current DFRA Board of Directors, which Consists of the two city managers, 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 DRFA Joint Exercise of Powers Agreement (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 to amend the contract between DRFA and PERS if the Board considered it prudent to do so, or could require an amendment of the PERS contract to provide the enhanced retirement benefits that have been requested. The amendment to the JEPA could also reconstitute the Board of Directors to include Councilmembers'from each City or the full City Councils. During the June 5, 2001, City Council Meeting the Dublin City Council approved a motion to forward this letter to inquire about the City of San Ramon's interest in discussing an amendment to the DRFA - JEPA. Area Code (925) - .City Manager 833-6650 - City Council 833-6650 · Personnel 833-6605 · Finance 833-6640 · Public Works/Engineering 833-6630 · Parks & Community Services Planning/Code Enforcement 833-6610 · Building Inspection 833-6620 · Fire PreveATTACHMENT 4 Printed on Recycled Paper Honorable Mayor David E. Hudson City of San Ramon Page 2 In addition, and regardless of your interest, if any, in pursuing enhanced retirement benefits for former DRFA employees, the.Dublin City Council is interested in having the two Cities discuss terminating the DRFA contract with PERS to obtain any excess assets that were overpaid by our respective Cities and dispersing those monies Proportionally back to our agencies. The enclosed staff report goes in to more detail about the potential amount of the excess assets and the.procedure for obtaining those assets. The Dublin City Council is very interested in discussing this matter with your agency. On behalf of our City Council, I am requesting that your agency place this item on its next available Council Agenda for consideration and respond to us in writing with your decision as to whether you would be interested in holding a joint City Council meeting to discuss this matter. Sincerely, Gu~. Houston Mayor Enclosures: Dublin City Council Report dated June 5, 2001 w/attachments Letter from Brian McKenna, Local No. 55 CC: Dublin City Council Herb Moniz, City Manager, City of San Ramon Richard C. Ambrose, City Manager Libby Silver, City Attorney William J. McCammon, Fire Chief, ACFD Brian McKenna, President Alameda County Firefighters