CITYOF MENDOTA
..Cantaloupe Center Of The World"
VICTOR MARTINEZ
Mayor
LIBERTAD "LIBERTY" LOPEZ
Mayor Pro Tem
JOSE ALONSO
JOSEPH R. RIOFRIO
OSCAR ROSALES
AGENDA
MENDOTA CITY COUNCIL
Regular City Council Meeting
City Council Chambers
643 Quince Street
Mendota, California 93640
April 11,2023
6:00 PM
CRISTIAN GONZALEZ
City Manager
JOHN KINSEY
City Attorney
The Mendota City Council welcomes you to its meetings, which are scheduled for the 2nd and 4th Tuesday of every month. Your interest and participation are encouraged and appreciated. Notice is hereby given that Council may discuss and/or take action on any or all of the items listed on this agenda. PIease turn your cell phones on vibrate/off while in the council chambers.
Any public writings distributed by the City of Mendota to at least a majority of the City Council regarding any item on this regular meeting agenda will be made available at the front counter at City Hall, located at 643 Quince Street Mendota, CA 93&10, during normal business hours, 8 AM - 5 PM. ln compliance with the Americans with Disabilities Act, individuals requiring special assistance to participate at this meeting please contact the City Clerk at (559) 655-3291 or (559) 577-7692. Notification of at least forty-eight hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to the meeting.
Si necesita servicios de interpretaci6n para participar en esta reuni6n, comuniquese con la Secretaria de la Ciudad al (559) 655-3291 o (559) 577-7692 entre las 8 a.m. y las 5 p.m. de lunes a viernes. La notificaci6n de al menos veinticuatro horas antes de la reuni6n permitir6 al personal adoptar las disposiciones necesarias para garantizar su participaci6n en la reuni6n.
CALL TO ORDER
ROLL CALL
FLAG SALUTE
INVOGATION
FINALIZE THE AGENDA
1. Adjustments to Agenda
2. Adoption of final Agenda
CITIZENS' ORAL AND WRITTEN PRESENTATIONS
At this time, members of the public may address the City Council on any mafter not listed on the agenda involving mafters within the jurisdiction of the City Council. Please complete a "request to speak" form and limit your comments toTHREE(3)MINUTES. PleasegivethecompletedformtotheCityClerkpriortothestartofthemeeting. Allspeakers shall observe proper decorum. The Mendota Municipal Code prohibits the use of boisterous, slanderous, or profane language. All speakers must step to the podium and state their names and addresses for the record. Please watch the time.
City Council Agenda 1 April 11,2023
643 Ouince Street Mendota, Galilornia 93640
Telephone: (559) 655-3291 Fax: (559) 655-4064
TDD/TTY 866-735-2919 (English) TDD/[TY 866-833-4703 (Spanish) ci.mendota.Ga.us
The City ol Mendota is an equal opportunity provider and employer 1 2
APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING
Minutes of the specialCity Councilmeeting held on March 27,2023 and the regular City Council meeting of March 28,2023.
Notice of waiving of the reading of all resolutions and/or ordinances introduced and/or adopted under this agenda.
CONSENT CALENDAR
Matters listed under the Consent Calendar are considered to be routine and will be enacted by one motion and one vote. There will be no separate discussion of these items. lf discussion is desired, that item will be removed from the Consent Calendar and will be considered separately.
MARCH 23,2023 THROUGH MARCH 30, 2023
WARRANT LIST CHECK NOS. 53065 THROUGH 53109
TOTAL FOR COUNCIL APPROVAL - $558,7 10.52
PUBLIC HEARING
Council discussion and consideration of Ordinance No. 23-01, authorizing an amendment to the contract between the Board of Administration, California Public Employees' Retirement System and the City of Mendota. a. Receive report from Administrative Seryices Director Lekumberry b. lnquiries from City Councilto staff
c. Mayor Martinez opens the public heaing
d. Once all comment has been received, Mayor Maftinez c/oses the public hearing
e. Councilconsrders waiving the second reading and adoption of Ordinance No.23-01
DEPARTMENT REPORTS AND INFORMATIONAL ITEMS
Finance Director
a) Grant Update
City Engineer
a) Update
City Attorney
a) Update
City Manager
a) Business licenses
1 1
1 2.
3 4
City Council Agenda 2 April 11,2023
MAYOR AND COUNCIL REPORTS AND INFORMATIONAL ITEMS
1. Council Member(s)
2. Mayor
CLOSED SESSION
1, CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code section 54956.9 (one potential case)
ADJOURNMENT
CERTIFICATION OF POSTING
l, Celeste Cabrera-Garcia, City Clerk of the City of Mendota, do hereby declare that the foregoing agenda for the Mendota City Council Regular Meeting of April 11, 2023, was posted on the outside bulletin board located at City Hall, 643 Quince Street, on Friday, Apn| 7,2023, at 12:00 p.m
lerk
City Council Agenda 3 April 11,2023
Minutes of City Council Meeting 1 March 27, 2023
MINUTES OF MENDOTA
SPECIAL CITY COUNCIL MEETING
Special Meeting March 27, 2023
Meeting called to order by Mayor Martinez at 6:33 PM.
Roll Call
Council Members Present: Mayor Victor Martinez, Mayor Pro Tem Libertad “Liberty” Lopez, Council Members Jose Alonso and
Joseph Riofrio
Council Members Absent: Council Member Oscar Rosales
Flag salute led by Council Member Riofrio in honor of our Armed Forces and the victims and those affected by the Tennessee school shooting.
FINALIZE THE AGENDA
1. Adjustments to Agenda.
2. Adoption of final Agenda.
A motion was made by Council Member Riofrio to adopt the agenda seconded by Mayor Pro Tem Lopez; unanimously approved (4 ayes, absent Rosales).
CITIZENS ORAL AND WRITTEN PRESENTATIONS
None offered.
BUSINESS
1. Discussion Forum:
a. Open discussion on road conditions and plan for repairs Mayor Martinez introduced the item and discussion was held on ongoing road repair projects in the City, including the associated costs; road repair projects that have been Minutes of City Council Meeting 2 March 27, 2023
completed in recent years; the need to educate community members on how to properly navigate roundabouts; the need to make the City more wheelchair accessible; the need to repair sidewalks that were lifted due to overgrown tree roots; the need to clean up mud build up in the City caused by the recent rainstorms; the need for both the City and community members to work together; and the need to increase community participation in City led meetings.
b. Update on ongoing community projects; and
c. Other
Mayor Martinez introduced the item and discussion was held on the status of the inclusive playground at Rojas-Pierce Park; the Pool Park Rehabilitation Project; the Rojas-Pierce Park Expansion Project-Phase 2; the Mendota Police Department and City Council Chambers Project; a proposed new housing development; a community trash cleanup up program; the need for community members to volunteer at City events; the 2023 Earth Day event; the quarterly Community Clean Up events held with Mid Valley Disposal; the issue of stray dogs in the City and possible solutions; smoke shops in the City and possible regulations; the approval process for new businesses coming into the City; mobile food vendors in the City; the need to address speeding vehicles in the City; and the possibility of assisting a community member with his living situation.
ADJOURNMENT
With no more business to be brought before the Council, a motion for adjournment was made at 8:04 p.m. by Council Member Riofrio, seconded by Mayor Pro Tem Lopez; unanimously approved (4 ayes, absent Rosales).
_______________________________
Victor Martinez, Mayor
ATTEST:
_______________________________
Celeste Cabrera-Garcia, City Clerk
Minutes of City Council Meeting 1 March 28, 2023
MINUTES OF MENDOTA
REGULAR CITY COUNCIL MEETING
Regular Meeting March 28, 2023
Meeting called to order by Mayor Martinez at 6:00 PM.
Roll Call
Council Members Present: Mayor Victor Martinez, Mayor Pro Tem Libertad “Liberty” Lopez, Council Members Jose Alonso,
Joseph Riofrio and Oscar Rosales
Council Members Absent: None
Flag salute led by Mayor Martinez
Invocation led by Police Chaplain Robert Salinas
FINALIZE THE AGENDA
1. Adjustments to Agenda.
2. Adoption of final Agenda.
A motion was made by Council Member Riofrio to adopt the agenda, seconded by Council Member Rosales; unanimously approved (5 ayes).
Council Member Rosales wished Council Member Riofrio a Happy Birthday.
PRESENTATIONS
1. City Council to recognize Ana Raquel Hernandez for her success with her YouTube Channel “Cocinando con Raquel”.
Ana Raquel Hernandez was recognized by the City Council for her success with her YouTube Channel and social media sites “Cocinando con Raquel”.
Minutes of City Council Meeting 2 March 28, 2023
Ms. Hernandez thanked the City Council and commented on the recognition.
The City Council congratulated Ms. Hernandez on her success and thanked her for representing Mendota and her culture.
CITIZENS ORAL AND WRITTEN PRESENTATIONS
Patricia Gamez – reported that there is a community mailbox in front of her home that has a red curb; that she has received citations for parking her vehicle in front of the mailbox event on days that there is no United States Postal Service; that personal circumstances make it difficult for her to not park in front of her home, along the red curb; and requested that the City consider allowing vehicles to park in front of the community mailboxes on the days that there is no postal service.
Discussion was held on Ms. Gamez’s inquiry.
APPROVAL OF MINUTES AND NOTICE OF WAIVING OF READING
1. Minutes of the regular City Council meeting of March 14, 2023 and the special joint City Council and Mendota Unified School Board of Trustees meeting of March 22, 2023.
2. Notice of waiving of the reading of all resolutions and/or ordinances introduced and/or adopted under this agenda.
A motion was made by Council Member Rosales to approve items 1 and 2, seconded by Mayor Pro Tem Lopez; unanimously approved (5 ayes).
CONSENT CALENDAR
1. MARCH 9, 2023 THROUGH MARCH 21, 2023
WARRANT LIST CHECK NOS. 53014 THROUGH 53064
TOTAL FOR COUNCIL APPROVAL = $494,057.41
2. Proposed adoption of Resolution No. 23-21, approving the quotes submitted by National Auto Fleet Group and Cook’s Communications and authorizing the purchase of two vehicles for the Police Department.
3. Proposed authorization of the Mayor to execute a letter of support for the proposed one-time relief package to support hospital care for Medi-Cal patients.
4. Proposed authorization of the Mayor to execute a letter of support for funding for the National Farmworker Jobs Program.
A motion was made by Council Member Rosales to approve items 1 through 4, seconded by Mayor Pro Tem Lopez; unanimously approved (5 ayes).
Minutes of City Council Meeting 3 March 28, 2023
BUSINESS
1. Council discussion and consideration of Resolution No. 23-22, authorizing the City Manager to purchase vehicles for the Public Utilities and Public Works Departments from Geweke Ford in an amount not to exceed $110,000.00 plus taxes and fees and execute all documents necessary to effectuate the purchase.
Mayor Martinez introduced the item and City Manager Gonzalez provided the report.
Discussion was held on the information shared by Mr. Gonzalez.
Chief Plant Operator Angel provided additional information on the item.
Discussion was held on the information shared by Mr. Angel.
A motion was made by Mayor Pro Tem Lopez to adopt Resolution No. 23-22, seconded by Council Member Rosales; unanimously approved (5 ayes).
2. Council discussion and consideration of Resolution No. 23-23, approving the proposal submitted by Townsend Public Affairs for State and Federal Advocacy Trip Support Services and authorizing the City Manager to execute all documents necessary to effectuate the proposal.
Mayor Martinez introduced the item and City Clerk Cabrera-Garcia provided the report.
Discussion was held on the information shared by Ms. Cabrera-Garcia.
A motion was made by Mayor Pro Tem Lopez to approve Resolution No. 23-23, seconded by Council Member Rosales; unanimously approved (5 ayes).
DEPARTMENT REPORTS AND INFORMATIONAL ITEMS
1. Animal Control, Code Enforcement, and Police Department a) February Monthly Reports
Chief of Police Smith provided the monthly report for the Code Enforcement department, including weed abatement enforcement efforts; and the enforcement of illegal semi-truck parking.
Discussion was held on the City’s efforts to enforce illegal semi-truck parking; and the department issuing Council Member Rosales’s brother a citation for illegal parking.
Mayor Pro Tem Lopez left the Council Chambers and returned at 7:41 p.m.
Chief Smith provided the monthly report for the Animal Control department, including Minutes of City Council Meeting 4 March 28, 2023
monthly statistics and the dog pound’s current capacity.
Discussion was held on the maximum dog capacity for the dog pound.
Chief Smith provided the monthly report for the Police Department, including monthly statistics.
Discussion was held on the report provided by Chief Smith, including current personnel recruitment efforts.
2. City Attorney
a) Update
City Attorney Kinsey reported on the investiture for Judge Ana de Alba who serves as a United States District Judge for the United States District Court for the Eastern District of California and shared how Judge de Alba is an inspiration for young Latinas on the West side of the Central Valley.
3. City Manager
a) Mobilized vendor update
City Manager Gonzalez provided an update on motorized and sidewalk vendors, including the vendors who have current licensing; the City’s efforts to oversee and manage the flooding issues; the status of the cleanup and beautification program; the status of the inclusive park; and the status of the Police Department/City Council Chambers project.
Discussion was held on motorized and sidewalk vendors; the status of the cleanup and beautification program; the possibility of implementing a beautification subcommittee; and the status of the inclusive playground.
MAYOR AND COUNCIL REPORTS AND INFORMATIONAL ITEMS
1. Council Member(s)
Council Member Rosales inquired about a staff appreciation luncheon and requested that Ana Raquel Hernandez be a guest of honor at the 2023 Mendota Fireworks Show.
Joseph Amador thanked City Manager Gonzalez and Chief Smith for their work.
Council Member Riofrio commented on the incorporation dates of various cities; and the history of Mendota.
Discussion was held on selling Mendota merchandise; and creating a donor list for the Mendota Community Corporation and the City.
Mayor Pro Tem Lopez commented on the great work of the community, staff, and City Minutes of City Council Meeting 5 March 28, 2023
Council.
Council Member Alonso congratulated Ana Raquel Hernandez and her husband on the success of “Cocinando con Raquel”; reported on the upcoming Public Safety Subcommittee meeting on April 3rd, and reported on an upcoming meeting he will have with an organization based in New York.
2. Mayor
Mayor Martinez reported on ongoing City efforts and projects; the efforts of the Chamber of Commerce; creating a new soccer field; and on the Town Hall Meeting that was held on March 27th.
Discussion was held on upcoming self-help housing meeting and the possibility of installing fencing at the Lindgren-Lozano Park.
ADJOURNMENT
With no more business to be brought before the Council, a motion for adjournment was made at 7:23 p.m. by Council Member Alonso, seconded by Council Member Rosales; unanimously approved (5 ayes).
_______________________________
Victor Martinez, Mayor
ATTEST:
_______________________________
Celeste Cabrera-Garcia, City Clerk
CITY OF MENDOTA
CASH DISBURSEMENTS
03/23/23 - 03/30/23
CK# 053065 - 053109
Check Date Check Number Check Amount Vendor Name Cash Account Invoice Description March 23, 2023 53065 $ 5.77 NEW YORK LIFE INS. CO. GENERAL
LIFE INSURANCE
March 23, 2023 53066 $ 2,546.98 THE BANK OF NEW YORK MELLON SEWER MENDOTA JPFA LEASE REVENUE BOND, SERIES 2022
March 28, 2023 53067 $ 200.00 SWRCB SEWER
DERRICK & OLLER ROUNDABOUT SR 33 AT SR 180 MENDOTA CA
March 29, 2023 53068 $ 887.14 ACME ROTARY BROOM SERVICE STREETS (1) 58" 413 HF SCHWARZE AVALANCHE MAIN BROOM
March 29, 2023 53069 $ 64.54 ADT SECURITY SERVICES WATER SECURITY SERVICES FOR 4/04/23-5/03/23 WATER PLANT
March 29, 2023 53070 $ 1,628.67 ALERT-0-LITE STREETS, SEWER (35) DELINEATOR 42" DIAMONDTUBE OIL, (10) 1000' YEL CAUTION TAPE (STORM/FLOODING) (1) VINL SIGN SHOULDER CLOSE
March 29, 2023 53071 $ 65.00 BALANCED COMFORT GENERAL
REIMBURSEMENT FOR PAYMENT- INCORRECT BUILDING PERMIT
March 29, 2023 53072 $ 1,049.41 CORBIN WILLITS SY'S INC. GENERAL,WATER,SEWER ENHANCEMENT AND SERVICE FEES APRIL 2023- MOMS
March 29, 2023 53073 $ 14,283.36 CORE & MAIN LP WATER
(100) 1 CTS SS INSERT PIPE RING, (5) STRT BALL SERVICE VALVE, (4) P15403N NO LEAD, (1)18 B3211-6 FLG, (4) 18 SIP EZGRIP PVC March 29, 2023 53074 $ 600.00 DALE DRUMMOND POLYGRAPH SERVICE GENERAL (2) POLYGRAPH REPORTS (PD)
March 29, 2023 53075 $ 129.94 DEPT. OF CONSERVATION GENERAL 2022 4TH QTR SEISMIC HAZARD AND STRONG MOTION
March 29, 2023 53076 $ 29,777.96 FRESNO COUNTY SHERIFF GENERAL, WATER DISPATCH SERVICES FOR JULY 2022, DISPATCH SERVICES FOR
FEBRUARY 2023, RMS JMS FEE FOR APRIL 2023 (PD)
March 29, 2023 53077 $ 275.00 INSYARATH, KHAMPHOU GENERAL POLICE STATISTICS FOR FEBRUARY 2023
March 29, 2023 53078 $ 1,400.00 LAW & ASSOCIATES GENERAL (2) LAW ENFORCEMENT BACKGROUND INVESTIGATION
March 29, 2023 53079 $ 300.00 LEAGUE OF CALIFORNIA CITIES GENERAL 2023 LOCAL STREETS AND ROADS NEEDS - ASSESSMENT
March 29, 2023 53080 $ 302.98 LEAF GENERAL
(2) KYROCERA COPIER LEASE PAYMENT 04/15/23
March 29, 2023 53081 $ 154.00 MENDOTA 1 SMOG GENERAL
2015 FORD POLICE INTERCEPTOR - CHECK BAR LIGHT, 2020 FORD
POLICE INTERCEPTION - CHECK BODY COVER (PD)
March 29, 2023 53082 $ 271.85 METRO UNIFORM GENERAL
(1) KINETIC 8" GTX- J.GURROLA
March 29, 2023 53083 $ 1,537.22 MID VALLEY DISPOSAL, INC STREETS SERVICE FOR MARCH 01-15 2023: CITY YARD REFUSE
March 29, 2023 53084 $ 436.31 OFFICE DEPOT GENERAL, WATER, SEWER (1) FOLDER, (2) COLLAPIBLE CART,(1)STICKY NOTES, (1)HP BLACK TONER March 29, 2023 53085 $ 26,560.00 RRM DESIGN GROUP GENERAL,WATER,SEWER TASK X.1: CONSTRUCTION TEST AND INSPECT SERVICES
March 29, 2023 53086 $ 301,269.76 SILVERFOX ELECTRIC, INC. GENERAL ROJAS PIERCE PARK EXPANSION - PHASE 2 PAYMENT #2
March 29, 2023 53087 $ 386.80 UNION PACIFIC RAILROAD COMPANY STREETS PUBLIC ROADWAY ENCROACHMENT MARIE 9TH & BELMONT- APRIL 2023 March 29, 2023 53088 $ 297.44 THARP'S FARM SUPPLY SEWER, STREETS (10) HOSE CLAMPS, (2) NYLON ADAPTORS - (STORM / FLOODING) March 29, 2023 53089 $ 1,280.13 THE HOME DEPOT CREDIT CARD WATER, STREETS, GENERAL (2) MILWAUKEE 3/8 ERGO, (3) MILWAUKEE DIAMOND PLUS HS, (2) 500 LM STEEL FLASHLIGHT,(7) TOGGLED LED 2 PK
March 29, 2023 53090 $ 825.38 TRIANGLE ROCK PRODUCTS,LLC STREETS, SEWER
SAND FOR SAND BAGS (STORM / FLOODING)
March 29, 2023 53091 $ 145.62 UNIFIRST CORPORATION GENERAL, WATER, SEWER (3)COM MATS, WET MOP, DRY MOP, TERRY CLOTHS
March 29, 2023 53092 $ 496.88 USA BLUEBOOK WATER, SEWER (1)TEE CONNECTOR 1/2 TUBE, (3) HEAVY DUTYY TRASH BAGS
March 29, 2023 53093 $ 283.89 VALLEY FARM SUPPLY STORES INC. GENERAL (4) CHAIN LOOP, (5) STIHL AUTOCUT 25-2 NO BLISTER
March 29, 2023 53094 $ 450.00 VETERINARY MEDICAL CENTER GENERAL
REMAINDER OF OPEN BALANCE
CITY OF MENDOTA
CASH DISBURSEMENTS
03/23/23 - 03/30/23
CK# 053065 - 053109
March 29, 2023 53095 $ 300.00 VORTAL GENERAL,WATER,SEWER CITY WEBSITE HOSTING AND MAINTAINCE FEBRUARY AND MARCH 2023 March 29, 2023 53096 $ 719.76 VULCAN MATERIALS COMPANY GENERAL, WATER COLD MIX 3/8 SC8 QTY:6.70 (STORM / FLOODING)
March 29, 2023 53097 $ 375.00 CITY OF FRESNO- POLICE DEPARTMENT GENERAL LEADERSHIP TRAINING ASSESSMENT SUPERVISON - S.JURADO (PD) March 29, 2023 53098 $ 6,546.00 LEAGUE OF CALIFORNIA CITIES GENERAL MEMBERSHIP DUES FOR CALANDER YEAR 2023
March 29, 2023 53099 $ 480.00 TED'S AG SERVICE
GENERAL,
WATER,SEWER,STREETS
(6) INSTALL MODEM ON CARD READER AND REPLACE LOCK
March 29, 2023 53100 $ 134,067.00 CITY OF MENDOTA PAYROLL GENERAL PAYROLL TRANSFER FOR 03/13/23 - 03/26/23
March 30, 2023 53101 $ 703.60 AT&T WATER,SEWER,GENERAL
CITYWIDE PHONE SERVICES 02/25/23 - 03/24/23
March 30, 2023 53102 $ 925.43 FOUNTAIN PEOPLE, INC GENERAL (2) TRANSMITTER BOARD, ACTIVATOR
March 30, 2023 53103 $ 10,397.85 FRESNO COUNTY CLERK GENERAL,WATER,SEWER
ELECTION SERVICE - COM CITY COUNCIL, COM TRANSACTION & USE TAX
MEASURE
March 30, 2023 53104 $ 375.00 NEXUS ADMINISTRATORS, INC. GENERAL, WATER, SEWER QUARTERLY 2023 RETIREMENT PLAN BASE FEE
March 30, 2023 53105 $ 451.40 PETTY CASH
GENERAL, WATER, SEWER,
REFUSE
PETTY CASH EXPENSE TAG #770-780 01/11/23-03/27/23
March 30, 2023 53106 $ 10,000.00 TOWNSEND PUBLIC AFFAIRS, INC. GENERAL ADVOCACY SUPPORT SERVICES 2023
March 30, 2023 53107 $ 2,546.98 UMPQUA BANK GENERAL
LOAN PAYMENT 12/16/22- 04/01/23
March 30, 2023 53108 $ 1,805.47 WANGER JONES HELSLEY PC ATTORNEY GENERAL LEGAL SERVICE RE: SPECIAL LEGAL FEES 02/15/23, LEGAL SERVICE RE:
1269 MARIE ST CITY FEE
March 30, 2023 53109 $ 1,105.00
CALIFORNIA DEPARTMENT OF TAX & FEE
ADMINISTRATUIN GENERAL, WATER, SEWER
USE TAX PERIOD END: 12/23/22
$ 558,710.52
1 AGENDA ITEM – STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: JENNIFER LEKUMBERRY, DIRECTOR OF ADMINISTRATIVE SERVICES & ASSISTANT CITY
MANAGER
VIA: CRISTIAN GONZALEZ, CITY MANAGER
SUBJECT: CALPERS CONTRACT AMENDMENT TO ADD THE SAFETY CATEGORY DATE: APRIL 11, 2023
ISSUE
Shall the City Council hold the public hearing and consider adopting No. 23-01?
BACKGROUND
In 2016, the City of Mendota (“City”) entered into a contract with the Board of Administration, California Public Employees' Retirement System (“CalPERS”). This agreement excluded the safety category as a result of the majority of those safety category employees voting against membership.
In the current Memorandum of Understanding (“MOU”) between the City and Operating Engineers Local Union No.3, which represents the Mendota Police Officers Association (“OE3/MPOA”), under Article I (E), there is an agreement for a reopener to discuss and consider CalPERS, with the intention to implement CalPERS on or around July 1, 2023, contingent on the Mendota Transactions and Use Tax Measure (“Measure H”) being approved by the voters in the November 2022 election. Prior Measure H passing, the City Council directed the City Manager to move forward with CalPERS for the safety category. As a result, the City requested a valuation report in August 2022.
Measure H was approved in the November 2022 general election to provide additional funding for essential City of Mendota services, including, but not limited to, improving parks and roads.
Measure H implements a new 1.25% transactions and use tax, providing an estimated $493,498 annually unless repealed, subject to publicly available annual audits with all funds benefitting Mendota residents.
The City’s negotiation team met with OE3/MPOA and with City Council separately, providing both groups the valuation report which provided projected costs. Staff was directed to move forward with the CalPERS contract amendment to include the safety category and eliminate the match for the 401k plan effective the same pay period in which the safety category for CalPERS becomes effective. The City met and conferred with OE3/MPOA and reached an agreement to move forward with the CalPERS contract amendment to include the safety category and eliminate the match for the 401k plan effective the same pay period in which the safety category for CalPERS becomes effective.
2 On March 24, 2023, the City Council adopted resolution 23-19, approving an amendment to the contract between the Board of Administration, California Public Employees' Retirement System and the City of Mendota; introduced and waived the first reading of Ordinance No. 23-01; and scheduled the public hearing for April 11, 2023.
ANALYSIS
The City Council of the City shall not include any group in a contract with the Board of Administration of CalPERS if a majority of that group’s members vote to disapprove the proposed plan. (Gov. Code, § 20470.) After the City Council adopted Resolution No. 23-19, employee ballots were given to all eligible safety category employees so they could cast their vote independently regarding the proposed plan and all 14 votes were submitted in favor of the proposed plan.
Provided by Finance Director Banda:
Ideally, the Police Department/City Council Chambers (“PD/CC Project”), would be complete, and the City would be in the first year of budgeting and paying for the debt service, prior to considering implementation of CalPERS for public safety. With the information NHA presented last year, the City would only be able to take on a debt service payment of $125,000.00 if CalPERS for the safety category were to be implemented. Based on the last presentation for the PD/CC Project the debt service would be $232,000.00. It is important to clarify that at the time of the presentations mentioned above, the City did not include the American Rescue Plan Act funds as a factor and the City did not have confirmation of Measure H passing. These additional sources of funds may have offset the City ability to pay the debt service for the PD/CC, however it is important to note that the revenue streams generated from cannabis and sales tax are unpredictable.
FISCAL IMPACT
Provided by Finance Director Banda:
FY22/23- $9,381.57* (Only including the 2023 pay periods 12 and 13) based on the 12.78% employer cost rate.
FY23/24- $129,213.17* based on the 13.54% employer cost rate. *The Finance Director prepared the fiscal impact estimates by including only the base pay of the currently active employees that fall under the safety category. Once the City is informed of what incentive pays are considered reportable compensation by CalPERS, then the numbers will be recomputed and they will increase. Lastly, we currently have 3 positions vacant (1-R-124 Police Officer; 1-Police Officer; & 1-Sergeant) which are not included in the calculation, and it is important to note that any additional safety positions added will increase the costs respectively.
RECOMMENDATION
Staff recommends that the City Council hold the public hearing and consider Ordinance No. 23- 01 for adoption.
3 Attachments:
1. Actuarial Valuation Report for Proposed PEPRA Safety Police Plan for City of Mendota
2. Approved Resolution No. 23-19
3. Ordinance No. 23-01
4. Contract Amendment
California Public Employees’ Retirement System Actuarial Office 400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov November 2022
Proposed PEPRA Safety Police Plan for City of Mendota
(CalPERS ID: 7745628127)
New Category Actuarial Valuation Report as of November 30, 2022
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service Dear Employer,
Enclosed please find a copy of the actuarial valuation conducted to determine the required contributions if the Safety Police Plan of the City of Mendota elects to participate in the California Public Employees’ Retirement System (CalPERS). This valuation is based on a valuation date and a contract start date of November 30, 2022.
CalPERS staff actuaries are available to discuss the contents of this report with you.
In the event your public agency elects to contract for the new category, your employees will be entitled to retirement benefits as provided by CalPERS per the Public Employees' Retirement Law. The contract for CalPERS membership will specify that, to the extent, if any, your employees may claim entitlement to additional benefits resulting from prior membership in a different retirement plan, such benefits will be the responsibility of your agency alone, and not of CalPERS.
Required Contribution
The rates shown above will be in effect unless there are further benefit or funding changes. If the membership or asset information is significantly different at the actual contract date, or if the actual contract effective date is delayed beyond the proposed effective date of November 30, 2022 by more than 90 days, the employer contribution rates shown above may have to be recalculated. The contribution rates shown above were based on the results of the June 30, 2020 and June 30, 2021 valuations.
The Employer Amortization of Unfunded Accrued Liability will be invoiced monthly, in an amount equal to onetwelfth of the annual amount, beginning the July following the contract date. As such, the FY 2023-24 payment of $0 assumes a contract date during FY 2022-23. The Estimated Employer Normal Cost for FY 2022-23 will depend on the number of applicable payroll reporting periods during the Fiscal Year.
In accordance with PEPRA, the member contribution rates shown above are set at 50% of the expected normal cost rate for the benefits that will apply to your PEPRA Safety Police Plan during the fiscal years provided. Note that the member contribution rate may change over time if the total normal cost for PEPRA members fluctuates by more than 1% of payroll in future valuations.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability PEPRA Employee Rate
2022-23 12.78% $0 13.00%
2023-24 13.54% $0 13.75%
Projected Results
2024-25 13.5% $0 TBD
Risk Analysis
The actuarial calculations supplied in this communication are based on a number of assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise the employer’s rates from year to year. So, the rates will fluctuate, especially due to fluctuations in investment return.
The actuarial methods and assumptions used in determining your rate can be found in Section 2, Appendix A. A list of class 1 benefit provisions used in determining your rate is included in Section 1 of the report. A description of these provisions can be found in Section 2, Appendix B.
Please see the Contribution Volatility and Other Risks section of this report for a discussion of factors that can lead to volatility in actuarial valuation results, including required contributions, in the future.
If your agency would like to consider other benefit formulas or other combinations of benefit provisions, please contact us and we will be pleased to assist you.
Sincerely,
SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
New Category
Actuarial Valuation
as of November 30, 2022
For the
ProposedPEPRA Safety Police Plan of the
City of Mendota,
2.7% @ 57 PEPRA Safety Formula with
3-year Final Average Compensation and
0% Prior Service
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
Proposed PEPRA Safety Police Plan of
the
City of Mendota
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Employer Contributions 4
Plan’s Funded Status 5
Projected Employer Contributions 5
Subsequent Events 6
Assets and Liabilities
Development of the Plan’s UAL 8
Schedule of Plan’s Amortization Bases 9
Amortization Schedule and Alternatives 10
Risk Analysis
Future Investment Return Scenarios 13
Discount Rate Sensitivity 14
Mortality Rate Sensitivity 14
Maturity Measures 15
Hypothetical Termination Liability 17
Participant Data 18
List of Class 1 Benefit Provisions 18
Plan’s Major Benefit Options 19
PEPRA Member Contribution Rates 20
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 1
Actuarial Certification
This report was prepared in order to provide the employer with information about the cost of benefits and the contributions required in order to assist in the decision as to whether or not to contract for the benefits.
Use of this report for other purposes is inappropriate.
Section 2 of this report is based on the member and financial data as of June 30, 2021 provided by employers participating in the Safety Pool to which the proposed plan will belong and the benefit provisions under the CalPERS contracts for those agencies.
As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the risk pool that will contain your PEPRA Safety Police Plan has been performed in accordance with generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool of the June 30, 2021 valuation date and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.
Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the plan, it is my actuarial opinion that the proposed employer contribution as of November 30, 2022 has been properly and accurately determined in accordance with the principles and standards stated above.
The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.
TONY CUNY, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Subsequent Events
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 3
Introduction
This report presents the results of the November 30, 2022 new category actuarial valuation of the PEPRA Safety Police Plan of the City of Mendota. This actuarial valuation sets the required employer contributions for Fiscal Years 2022-23 and 2023-24.
Purpose of Section 1
This Section 1 report for the PEPRA Safety Police Plan of the City of Mendota of the California Public Employees’ Retirement System (CalPERS) was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of November 30, 2022; • Determine the minimum required employer contribution for this plan for the fiscal years July 1, 2022 through June 30, 2023 and July 1, 2023 through June 30, 2024; and • Provide actuarial information as of November 30, 2022 to the CalPERS Board of Administration and other interested parties.
The pension funding information presented in this report should not be used in financial reports subject to GASB Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is required.
The measurements shown in this actuarial valuation may not be applicable for other purposes. The employer should contact their actuary before disseminating any portion of this report for any reason that is not explicitly described above.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; and changes in plan provisions or applicable law.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 4
Required Employer Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 13.54%
Plus
Required Payment on Amortization Bases1
1) Monthly Payment $0
Or
2) Annual Prepayment Option* $0
Required PEPA Member Contribution Rate Required PEPRA Member Contribution Rates 13.75% The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).
Fiscal Year Fiscal Year
2022-23 2023-24
Development of Normal Cost as a Percentage of Payroll1
Base Total Normal Cost for Formula 25.78% 27.290%
Surcharge for Class 1 Benefits2
None 0.000% 0.000%
Plan’s Total Normal Cost 25.78% 27.29%
Plan's Employee Contribution Rate 13.00% 13.75%
Employer Normal Cost Rate 12.78% 13.54%
Projected Payroll for the Contribution Fiscal Year3 $850,254 $874,061 Estimated Employer Contributions Based on Projected Payroll Plan’s Estimated Employer Normal Cost4 TBD $118,348
Plan’s Payment on Amortization Bases 0 0
Estimated Total Employer Contribution TBD $118,348
1 The Monthly Employer Dollar UAL Payment will be charged beginning the July following the contract date. As such, the FY 2023-24 Monthly UAL payment of $0 assumes a contract date during FY 2022-23. This payment is only to pay for prior service
2 Appendix C of Section 2 contains the list of class 1 benefits with their corresponding surcharges. 3 Payroll from the prior year is assumed to increase by the 2.8% payroll growth assumption. 4 The Plan’s Estimated Employer Normal Cost for FY 2022-23 will depend on the number of applicable payroll reporting periods during the Fiscal Year. The FY 2023-24 amount assumes payments made for the entire Fiscal Year.
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 5
Plan’s Funded Status
November 30, 2022
1. Present Value of Projected Benefits (PVB) $3,481,662
2. Entry Age Normal Accrued Liability (AL) 0
3. Plan’s Market Value of Assets (MVA) 0
4. Unfunded Accrued Liability (UAL) [(2) - (3)] 0
5. Funded Ratio [(3) / (2)] N/A
This measure of funded status is an assessment of the need for future employer contributions based on the selected actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. For a measure of funded status that is appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.
Projected Employer Contributions
The table below shows projected employer contributions (before cost sharing) for the next six fiscal years.
Projected results reflect the adopted changes to the discount rate described in Appendix A, “Statement of Actuarial Data, Methods and Assumptions” of the Section 2 report. The projections also assume that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22)
Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Normal Cost % 13.54% 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Payment $0 $0 $0 $0 $0 $0
For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years where there is a large increase in UAL the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.
For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 6
Subsequent Events
The contribution requirements determined in this actuarial valuation report are based on demographic and financial information as of June 30, 2021. Changes subsequent to that date are not reflected. Investment returns below the assumed rate of return may increase future required contributions while investment returns above the assumed rate of return may decrease future required contributions.
The projected employer contributions on Page 5 are calculated under the assumption that the discount rate remains at 6.8% going forward and that the realized rate of return on assets for FY 2021-22 is 6.8%.
This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.
Assets and Liabilities
• Development of the Plan’s UAL
• Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 8
Development of the Plan’s UAL
1. Plan’s Accrued Liability: $0
2. Plan’s Market Value Assets: $0
3. Plan’s Unfunded Accrued Liability: (1) - (2) $0
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 9
Schedule of Plan’s Amortization Bases
The schedule of the plan’s amortization bases is below. • The assets, liabilities, and funded status of the plan are measured as of the date the new category is adopted: November 30, 2022. • The required employer contributions determined by the valuation are for Fiscal Year 2023-24.
Amounts for Fiscal 2023-24
Reason for Base
Date
Established
Ramp
Up/Down
2023-24
Escalation
Rate
Amortization
Period
Balance
6/30/21
Payment
2021-22
Balance
11/30/22
Payment
2022-23
Balance
6/30/23
Scheduled
Payment
for 2023-24
PRIOR SERVICE 06/30/21 No Ramp 0.000% N/A $0 $0 $0 $0 $0 $0 TOTAL $0 $0 $0 $0 $0 $0
If the total Unfunded Liability is negative (i.e., plan has a surplus), the scheduled payment is $0, because the minimum required contribution under PEPRA must be at least equal to the normal cost.
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 10
Amortization Schedule and Alternatives
The amortization schedule on the previous page shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.
Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule.
The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability.
Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.
In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over a reasonable period.
The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 11
Amortization Schedule and Alternatives
Alternate Schedules
Current Amortization
Schedule N/A Year Amortization N/A Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 N/A N/A N/A N/A N/A N/A
6/30/2024
6/30/2025
6/30/2026
6/30/2027
6/30/2028
6/30/2029
6/30/2030
6/30/2031
6/30/2032
6/30/2033
6/30/2034
6/30/2035
6/30/2036
6/30/2037
6/30/2038
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Totals N/A N/A N/A
Interest Paid N/A N/A N/A
Estimated Savings N/A N/A
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Hypothetical Termination Liability
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 13
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.
The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2041.
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of a one or two standard deviation investment loss in FY 2021-22 on the FY 2024-25 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2024-25.
Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $0
(5.2)% (1 standard deviation loss)
Normal Cost Rate 13.54% 13.5%
UAL Contribution $0 $0
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29
3.0% (5th percentile)
Normal Cost Rate 13.5% 13.5% 13.5% 13.5% 13.5%
UAL Contribution $0 $110 $530 $1,500 $3,200
10.8% (95th percentile)
Normal Cost Rate 13.9% 14.3% 14.1% 14.5% 14.8%
UAL Contribution $0 $0 $0 $0 $0
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 14
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.50% and 2.30%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of November 30, 2022 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Real Rate of Return Assumption
As of November 30, 2022 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 34.35% 27.29% 21.95%
b) Accrued Liability $0 $0 $0
c) Market Value of Assets $0 $0 $0
d) Unfunded Liability/(Surplus) [(b) - (c)] $0 $0 $0
e) Funded Status N/A N/A N/A
Sensitivity to the Price Inflation Assumption
As of November 30, 2022 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 28.79% 27.29% 24.69%
b) Accrued Liability $0 $0 $0
c) Market Value of Assets $0 $0 $0
d) Unfunded Liability/(Surplus) [(b) - (c)] $0 $0 $0
e) Funded Status N/A N/A N/A
Mortality Rate Sensitivity
The following table looks at the change in the plan costs and funded ratio as of November 30, 2022 under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.
As of November 30, 2022 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 27.65% 27.29% 26.95%
b) Accrued Liability $0 $0 $0
c) Market Value of Assets $0 $0 $0
d) Unfunded Liability/(Surplus) [(b) - (c)] $0 $0 $0
e) Funded Status N/A N/A N/A
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 15
Maturity Measures
As pension plans mature they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.
One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability November 30, 2022
1. Retired Accrued Liability 0
2. Total Accrued Liability 0
3. Ratio of Retiree AL to Total AL [(1) / (2)] N/A
Another way to look at the maturity level of CalPERS and its plans is to look at the ratio of actives to retirees. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures, and members retire, the ratio starts declining. A mature plan will often have a ratio near or below one. The average support ratio for CalPERS public agency plans is 0.82.
Support Ratio November 30, 2022
1. Number of Actives 14
2. Number of Retirees 0
3. Support Ratio [(1) / (2)] N/A
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 16
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.
Asset Volatility Ratio (AVR)
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.
Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures.
Liability Volatility Ratio (LVR)
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.
Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to investment return and changes in liability. For example, a plan with LVR ratio of 8 is expected to have twice the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility. The AVR, described above, will tend to move closer to the LVR as a plan matures.
Contribution Volatility November 30, 2022
1. Market Value of Assets $0
2. Payroll 850,254
3. Asset Volatility Ratio (AVR) [(1) / (2)] 0.0
4. Accrued Liability $0
5. Liability Volatility Ratio (LVR) [(4) / (2)] 0.0
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 17
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of November 30, 2022. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.
A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while funding risk is limited. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 2-year period centered around the June 30, 2021 valuation date.
Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
@ 1.00%
Funded
Status
Unfunded
Termination
Liability
@ 1.00%
Hypothetical
Termination
Liability1,2
@ 2.25%
Funded
Status
Unfunded
Termination
Liability
@ 2.25%
$0 $0 0.0% $0 $0 0.0% $0
1 The hypothetical liabilities calculated above include a 5% contingency load in accordance with Board policy. Other actuarial assumptions can be found in Appendix A of the Section 2 report. 2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S.
Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021.
In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with the plan actuary before beginning this process.
This information is intended to give the employer an estimate of the cost to terminate the plan. However, once a plan enters into contract with CalPERS, a plan is prohibited from terminating in the first five years.
CalPERS New Category Actuarial Valuation – November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 18
Participant Data
The table below shows a summary of your plan’s member data upon which this valuation is based:
November 30, 2022
Reported Payroll $850,254
Projected Payroll for Contribution Purposes $874,061
Number of Members
Active 14
Transferred 0
Separated 0
Retired 0
List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Rate Plan belonging to the Safety Pool Page 19
Plan’s Major Benefit Options
Shown below is a summary of your agency’s proposed major optional benefits. A description of principal standard and optional plan provisions can be found in Appendix B of Section 2.
Benefit Group
Benefit Provision Police
Benefit Formula 2.7% @ 57
Social Security Coverage Yes
Full/Modified Supplemental
Employee Contribution Rate 13.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2W Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500
Survivor Allowance (PRSA) No
COLA 2%
CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost rate is dependent on the plan of retirement benefits, actuarial assumptions and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate change by more than 1% from the base total normal cost rate, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.
The table below shows the determination of the PEPRA member contribution rates effective July 1, 2022, based on 50% of the total normal cost rate as of the June 30, 2020 valuation.
Basis for Current Rate Rates Effective July 1, 2022
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
TBD Safety Police PEPRA Level 26.044% 13.00% 25.78% (0.264%) No 13.00% The table below shows the determination of the PEPRA member contribution rates effective July 1, 2023, based on 50% of the total normal cost rate as of the June 30, 2021 valuation.
Basis for Current Rate Rates Effective July 1, 2023
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
TBD Safety Police PEPRA Level 26.044% 13.00% 27.29% 1.246% Yes 13.75% CalPERS New Category Actuarial Valuation - November 30, 2022 Proposed PEPRA Safety Police Plan of the City of Mendota
2.7% @ 57 PEPRA Safety with 3-year Final Average Compensation, 0% Prior Service CalPERS ID: 7745628127
Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section
BEFORE THE CITY COUNCIL
OF THE
CITY OF MENDOTA, COUNTY OF FRESNO
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MENDOTA CONFIRMING ITS
INTENTION TO APPROVE AN AMENDMENT
TO THE CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION, CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM AND
THE CITY OF MENDOTA
RESOLUTION NO.23.19
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide for a new police member category with Section 7522.2(d) (2.7Yo @ 57 Supplemental formula) with 0% prior service.
NOW, THEREFORE, BE ,f RESOLVED, by the City Council of the City of Mendota, that the City of Mendota does hereby give notice of its intention to approve an amendment to the contract between said public agency and the Board of Administration, Public Employees' Retirement System, a copy of said amendment is attached hereto as an "Exhibit" and made a part he by this reference r Marti nea [/layor
I
ATTEST.
I, Celeste Cabrera-Garcia, City Clerk of the City of Mendota, do hereby certify that the foregoing resolution was duly adopted and passed by the City Council at a regular meeting of said Council, held at the Mendota City Hall on the 14th day of March, 2023, by the following vote:
AYES: 5 - Mayor Martinez, Mayor Pro Tem Lopez, Gouncilors Alo Riofrio, and Rosales
0 0
0 rera
NOES:
ABSENT:
ABSTAIN: a
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2 ,
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a
CaIPERS
EXHIBIT
California
Public Employees' Retirement System
-+>-
AMENDMENT TO CONTRACT
Between the
Board of Adrninistration
California Public Employees' Retirement System
and the
City Council
City of Mendota
The Board of Administration, Califomia Public Employees'RetirementSystem, hereinafter refuned to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective August 22,2014, and witnessed July 13, 2016, which provides for participation of Public Agenry in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective August 22, 2016, and hereby replaced by the following paragraphs numbered 1 through 11 inclusive:
1. Allwords and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 62 for local miscellaneous members and age 57 for localsafety members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after Augusl 22, 2016, making its employees as hereinafter provided, members of said System subiect to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enactEd except those, which by express provisions thereof, apply only on the election of a contracting agency.
3. PublicAgency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Emptoyees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attomey fees that may arise as a result of any of the following:
(a) PublicAgency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefrts, provisions or formulas.
(c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided underthis Contract and provided for underthe California Public Employees' Retirement Law.
Employees of PublicAgency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Police Officers (herein referred to as local safety members); Ernployees other than local safety members (herein referred to as local miscellaneous members).
4. 5.
b.
Any exclusion(s) shal! remain in effect until such time as the Public Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non-compliance with any federal tax laws or regulations. lf such a detennination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract. !n addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become rnembers of said Retirement System:
FIREFIGHTERS; AND
TUIEMBERS OF THE GOVERNING BODY.
The percentage of final compensation to be provided for local miscellaneous members for each year of credited prior service is 070 and the percentage of linal compensation to be provided for each year of credited cunent service is 100% and determined in accordance with Section 7522.20 of said Retirement Law (2o/o at age 62 Supplementalto Federal Social Security).
The percentage of final compensation to be provided for Iocal safety members for each year of credited prior service is 0olo and the percentage of final compensation to be provided for each year of credited current service is 1007o and determined in accordance with Section 7522.25(d) of said Retirement Law (2.7o/o at age 57 Supplementalto Federa! Social Security).
Public Agency shall contribute to said Retirernent System the contributions determined by actuarial valuations of prior and future service liability Wth respect to local miscellaneous members and local safety members of said Retirement System.
9. Public Agency shall also contribute to said Retirement Systern as follows:
a A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the ernployees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law.
A reasonable amount, as fxed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of
10. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on ac@unt of amendments to the Public Employees' Retirement Law, and on account of the experfence under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law.
a.
b.
,tt 9.
7 8.
b.
B
11. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board r€gulation. lf more or less than thE correct amount of contributions is paid for any period, proper adjusfinent shall be made in connection with subsequent remittances. Adjustments on account of enors in contributions required of any employee may be made by direct payrnents between the employee and the Board.
amendrnent shall be effective on the _ day of D
-
BOARD
PUBLIC
MELODY BENAVI CHIEF
PENSION
PROGRAMS DIVISI
PUBLIC EMPLOYEES'
NISTRATION CITY COUNCIL
RETIREMENT SYSTEM CITY OF MENDOTA
BY
%t
PREFUNDING
ENT SYSTEM
PRESIDING ER
Wtness Date
Attest:
%^
%
%.
%
Clerk
AMENDMENT CaPERS ID #7745628127
PERS-CON.702A
BEFORE THE CITY COUNCIL
OF THE
CITY OF MENDOTA, COUNTY OF FRESNO
AN ORDINANCE OF THE CITY COUNCIL ORDINANCE NO. 23-01
OF THE CITY OF MENDOTA AUTHORIZING
AN AMENDMENT TO THE CONTRACT
BETWEEN THE BOARD OF
ADMINISTRATION, CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM
AND THE CITY OF MENDOTA
WHEREAS, by adopting Resolution Nos. 23-04 and 23-19, the City Council of the City of Mendota indicated its intention to amend its existing agreement (the “Agreement”) with the Board of Administration (“Board”) of the California Public Employees’ Retirement System (“CalPERS”); and
WHEREAS, the City Council wishes to amend this Agreement to provide CalPERS offerings to a new police member (safety) category with Section 7522.2(d) (2.7% @ 57 Supplemental formula) with 0% prior service.
NOW, THEREFORE, the City Council of the City of Mendota does ordain as follows:
SECTION 1. That an amendment to the contract between the City Council of the City of Mendota and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment is attached hereto, marked “Exhibit,” and by such reference made a part hereof as though fully set forth herein.
SECTION 2. The City Manager of the City of Mendota is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the City of Mendota.
SECTION 3. This ordinance shall become effective and in full force at 12:00 midnight on the 31st day following its adoption. Within fifteen (15) days of the adoption of this Ordinance, a summary thereof, including the names of the City Council Members voting for and against it, shall be prepared by the City Attorney for publication in the City of Mendota through the Firebaugh-Mendota Journal, and a certified copy of the Ordinance shall be posted in the office of the City Clerk. * * * * * * * * * *
The foregoing ordinance was introduced on the 14th day of March, 2023 and duly passed and adopted by the City Council of the City of Mendota at a regular meeting thereof held on the 11th day of April, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Victor Martinez, Mayor
ATTEST:
______________________________
Celeste Cabrera-Garcia, City Clerk
APPROVED AS TO FORM:
______________________________
John Kinsey, City Attorney
EXHIBIT
CaIPERS
ry
AN4IENDNIIENT TO CONTRACT
Galifornia
Public Employees' Retirement System
Between the
Board of Administration
California Public Employees' Retirement System
and the
Ciuy CounciX
City of Mendota t
The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective August 22,2016, and witnessed July 13,2016, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A Paragraphs 1 through 10 are hereby stricken from said contract as executed effective August 22, 2016, and hereby replaced by the following paragraphs numbered 1 through 11 inclusive:
1 Allwords and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 62 for local miscellaneous members and age 57 for local safety members.
Public Agency shall participate in the Public Employees' Retirement System from and after August 22, 2016, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 2 3 Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law.
Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a
b
Local Police Officers (herein referred to as local safety members); Employees other than local safety members (herein referred to as local miscellaneous members).
Any exclusion(s) shall remain in effect until such time as the Public Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non-compliance with any federal tax laws or regulations. lf such a determination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract.
4. 5
6 ln addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. FIREFIGHTERS; AND
b. MEMBERS OF THE GOVERNING BODY.
The percentage of final compensation to be provided for local miscellaneous members for each year of credited prior service is 0% and the percentage of final compensation to be provided for each year of credited current service is 100o/o and determined in accordance with Section 7522.20 of said Retirement Law (2o/o at age 62 Supplemental to Federal Social Security).
The percentage of final compensation to be provided for local safety members for each year of credited prior service is 0% and the percentage of final compensation to be provided for each year of credited current service is 100% and determined in accordance with Section 7522.25(d) of said Retirement Law (2.7o/o at age 57 Supplementalto Federal Social Security).
Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System.
L Public Agency shall also contribute to said Retirement System as follows:
A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of specialvaluations or of the periodic investigation and valuations required by law.
7 I
a.
b
10 A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law.
Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. lf more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board.
B. This amendment shall be effective on the day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF MENDOTA
BY BY
MELODY BENAVIDES, CHIEF
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
PRESIDING OFFICER
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS lD #7745628127
PERS-CON.7O2A
11 1
AGENDA ITEM – STAFF REPORT
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: NANCY BANDA, FINANCE DIRECTOR
VIA: CRISTIAN GONZALEZ, CITY MANAGER
SUBJECT: GRANTS UPDATE
DATE: APRIL 11, 2023
GRANTS UPDATE
SB 1383 – Staff will host an educational workshop on Friday, April 21st, from 9 am to 12 pm. Staff will be scheduling dates to conduct home visits to educate the public on the new organics law. We are hoping we will have volunteers from the Adelante Mendota program.
Proposition 64 – The movie night for Adelante Mendota was canceled due to weather.
We will be rescheduling this event to be held on Friday, April 21st, at Rojas-Pierce Park with the showing of “Frozen II.” Staff will be working on Quarter January – March 2023 reporting.
Floodplain Maps – A site visit with the U.S. Army Corps of Engineers will be held in May 2023.
COPS Hiring Program – Staff will be researching the next grant cycle to apply for funding.
Clear California Local Grant Program – Staff will be assisting Townsend Affairs in submitting a grant application for a pocket park, litter clean-up events, and improvements at Pool Park.
Tire-Derived Product – Staff submitted pictures for all citywide sites where tire mulch will be installed as part of reporting requirements.
In – Progress Grants:
Rojas-Pierce Park Expansion Project – County of Fresno, Urban Community Development Block Grant (CDBG) Program
Rojas-Pierce Park Expansion Project – Per Capita Program Rojas-Pierce Park Expansion Project – CDBG-CV
COPS Hiring Program – Department of Justice
Proposition 64 – Board of State and Community Corrections Urban Flood Protection Grant – California Natural Resources Agency Automatic Meter Read Project – State Water Board
Tire-Derived Product – Cal Recycle
SB 1383 – Cal Recycle
Office of Traffic Safety – STEP Program for October 2022 thru September 2023 Water Storage and Booster Pump – County of Fresno
Floodplain Maps – U.S. Army Corps of Engineers
455 W. Fir Avenue
Clovis, CA 93611
Tel: (559) 449-2700
Fax: (559) 449-2715
www.provostandpritchard.com
G:\Mendota_City of-3336\3336OG01_On-Going\100\110 Status Reports\City Eng Council Report.docx Engineering Surveying Planning Environmental GIS Construction Services Hydrogeology Consulting Clovis Bakersfield Visalia Modesto Los Banos Chico Merced Sacramento Memorandum
To: City Council via Cristian Gonzalez, City Manager
From: Michael Osborn, City Engineer
Jeff O’Neal, City Planner
Subject: City Engineer’s Report to City Council
Date: April 4, 2023
Engineering Projects:
1. Rojas Pierce Park:
• Construction of Phase 2 Expansion Project (field lighting) with CDBG funding • Completed
2. Well 10 and Water Main Relocation
• Design in progress; coordination with USBR and BB Limited
3. Citywide RRXG Improvements:
• Coordinating crossing improvements with Railroad, Caltrans & CPUC • Construction anticipated in Winter 2023
4. MJHS Safe Routes to School Project
• Construction with ATP funding in progress
• Complete: May 2023
5. 2022 Local Street Reconstruction Project
• Construction with SB1 funding
• Starts: 4/10/2023
• Complete: 5/15/2023
6. Backwash Reclaim Project
• Design is underway; looking for funding opportunities for construction
7. Mendota Stormwater Improvement Project
• Prop 68 UFPGP funded: Out to Bid
• Construction anticipated in Summer/Fall 2023
8. Derrick & Oller Roundabout
• CEQA & NEPA completed
• Design in progress
• Construction anticipated in Spring 2024
9. Westside Water Tank & Booster Pump
• ARPA funded design is underway
• Construction anticipated in Fall 2023
10. 5
th & Quince Street Reconstruction:
• Design underway
• Construction funded with STBG funds in FFY 23/24
To: City Council via City Manager April 4, 2023
City Engineer’s Report to City Council Page 2 of 2
G:\Mendota_City of-3336\3336OG01_On-Going\100\110 Status Reports\City Eng Council Report.docx Planning/Development Projects
1. Rojas Pierce Park Annexation
• Continuing discussions with USBR about whether and how the WWD land retirement program affects the project.
2. Regional Housing Needs Allocation
• Participating in Fresno COG meetings for 6
th Cycle multijurisdictional Housing
Element
3. Safe Routes to School Master Plan
• Final Draft Plan out for public comment
• Completion in Spring 2023
Grant Applications:
1. Amador & Smoot Extension:
• $874,000 in STBG & CMAQ TPP funds; Construction authorization in FFY 23/24 On-going (this month):
1. Representation of the City at FCOG TTC
2. Coordination of road projects with Caltrans
3. Assistance to Finance Director for grant opportunities
4. Coordination with USACOE for Panoche Creek flood study Overall P&P Staff engaged (month of March):
• Engineers: 12
• Planners: 1
• Surveyors: 0
• Environmental Specialist: 0
• GIS/CAD Specialists: 2
• Construction Manager: 0
• Project Administrator: 1
Abbreviations:
EOPCC – Engineer’s Opinion of Probable Construction Cost NTP – Notice to Proceed
CUCCAC – California Uniform Construction Cost Accounting Commission
STBG – Surface Transportation Block Grant
CMAQ – Congestion Mitigation and Air Quality (grant)
ATP – Active Transportation Plan (grant)
RFP – Request for Proposal
RFA- Request for Authorization (for grant funding)
FCOG – Fresno Council of Governments
ADA – Americans with Disabilities Act
DBE – Disadvantaged Business Enterprise
TTC – Technical Transportation Committee (through FCOG) RTP/SCS – Regional Transportation Plan, Sustainable
Communities Strategies