Adopted May 20, 2022 1
CIRA
AGRE
EMENT FOR APPORTIONMENT OF
RETIREMENT OBLIGATIONS
Ca
lifornia Intergovernmental Risk Authority
CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY
AGREEMENT FOR APPORTIONMENT OF RETIREMENT OBLIGATIONS
Adopted May 20 2022 2
TH
IS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties’ signatory to the Joint Powers Authority Agreement hereafter “JPA Agreement. All such Member Entities are listed in Appendix "A", which is attached hereto and made a part hereof.
RECITALS
Whereas the California Intergovernmental Risk Authority (CIRA), formerly the Public A
gency Risk Sharing Authority of California (PARSAC), is an entity formed under California Government Code Section 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.
Whereas the Redwood Empire Municipal Insurance Fund (REMIF) is an entity formed under California Government Code Section 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.
Whereas, the jurisdiction of PARSAC was expanded with the addition of member agencies of REMIF, and its name changed to the California Intergovernmental Risk Authority, effective July 1, 2021.
Whereas, to avoid the involuntary termination of the REMIF CalPERS pension contract as a result of the transfer of all employees to CIRA, the CalPERS pension contract of REMIF was merged into the CIRA CalPERS contract, effective July 1, 2021.
Whereas California Government Code § 6508.2 requires that the member agencies of a joint powers agency (“AGENCY”) that contracts with CalPERS, mutually agree to a 100% apportionment of the AGENCY’s retirement liability prior to the adoption of an notice of termination of the AGENCY’s participation in CalPERS.
Adopted May 20,2022 3
N
ow, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follow:
AGREEMENT
ARTICLE I
DEFINITIONS
The following terms shall have the following definitions:
A. “Agreement” s hall mean this California Intergovernmental Risk Authority Agreement for Apportionment of Retirement Obligations.
B. “Board” or “Board of Directors” shall mean the governing body of CIRA.
C. “CIRA” shall mean the California Intergovernmental Risk Authority created by that certain Joint Powers Agreement dated May 25, 2017, then known as PARSAC, most recently amended effective July 1, 2021 (JPA Agreement).
D. “Deposit Premium ” shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each Program of CIRA and REMIF.
E. “Memb er Entity” shall mean any California public entity which is a party signatory to the JPA Agreement including any other agency for which the governing body of the Member Entity sits as the governing board of such other agency.
F. “Program Year” shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments.
G. “Program” s hall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims.
Adopted May 20, 2022 4
H. “Public Entity” shall mean a county, city, whether general law or chartered, city and county, town, district, political subdivision, joint powers authority, or any board, commission, or agency thereof providing a municipal service, excluding school districts.
I. “CalPERS” sh all mean California Public Employees’ Retirement System.
J. “Retirement Liability” shall mean the liability that CIRA possesses to all former or current employees of CIRA for retirement benefits owed to them pursuant to a contract between CIRA and CalPERS and arising by reason of those employees participation in CalPERS calculated on a terminated basis pursuant to sections 20570 -20593 of the Government Code.
K. “Retrospective Premium ” s hall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program.
L. “Retrospective Premium Adjustment” s hall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount.
ARTICLE II
PA
RTIES TO THE AGREEMENT
Each Member Entity is a party to this Agreement . Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from the JPA Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining.
Adopted May 20, 2022 5
ARTI
CLE III
PURPOSE
This Agreement is entered into by the Member Entities in order to:
A. Provide for an apportionment among current and former CIRA and REMIF Member Entities of 100% of CIRA’s Retirement Liability consistent with the requirements of Government Code sections 6508.1 and 6508.2 as enacted and amended effective January 1, 2019. The Member Entities of CIRA, as of the date of this Agreement, are set forth in Appendix A. The following are set forth in Appendix B:
• Former Member Entities of CIRA on or after July 1, 2021; • Members of CIRA prior to July 1, 2021; and
• Members of REMIF prior to July 1, 2021 .
B. The debts, liabilities or obligations incurred by either PARSAC or REMIF prior to July 1, 2021 shall not constitute the debts, liabilities or obligations of the other.
Notwithstanding the preceding, CIRA is the successor to the CalPERS pension obligations of REMIF pursuant to California Government Code section 20508. As such, the liability to CalPERS with respect to service credited under REMIF’s CalPERS contract, and the continuing liability to CalPERS of CIRA with respect to service credit accrued both prior to and after July 1, 2021 under CIRA’s CalPERS contract, shall be the contractual liability of CIRA. Periodically, but not more than every three years, CIRA will retain an actuary to determine the share of the estimated termination liability of CIRA which is allocable to CIRA and REMIF for service accrued prior to July 1, 2021. The allocation of liability, and Adopted May 20, 2022 6
the
payment of related contributions, with respect to service credit accrued prior to July 1, 2021 and thereafter is set forth below.
ARTICLE IV
METHOD OF APPORTIONMENT OF RETIREMENT LIABILITY
A. In the event of a decision by the governing Board of CIRA to adopt a notice of intent to terminate its contract with CalPERS, the Member Entities agree that 100% of CIRA’s Retirement Liability shall be funded by all current and former CIRA, and REMIF Member Entities based on a pro rata share of the former and current Member Entities’ historical Deposit Premium in the Workers’ Compensation and Liability self-funded Programs. The apportionment of the Retirement Liability shall be calculated as set forth above, and the unfunded Retirement Liability then existing shall be paid as follows: The unfunded Retirement Liability then existing shall be paid prior to any distribution of assets as provided in ARTICLE XIV and XV of the JPA Agreement and prior to the payment of any equity that may be determined as the result of the Retrospective Premium Adjustment process as set forth in ARTICLE XIV. (For example, should a Member Entity have remaining equity in either the Workers’ Compensation or Liability program, at the time of CIRA’s dissolution or CIRA’s termination of CIRA’s contract with a public retirement system, the Member Entity’s equity shall first be applied to reduce that Member Entity’s share of the apportionment of the Unfunded Retirement Liability.)
B. Any unfunded Retirement Liability allocated to CIRA for serviced accrued prior to July 1, 2021, shall first be reduced by applying the proceeds from the sale of real property identified as 1525 Response Road, Sacramento, CA, 95815 (the “CIRA Property”) as provided in Adopted May 20, 2022 7
Re
solution No. 2019-03, attached hereto as Exhibit C, prior to the determination of the amounts owed by the members of CIRA prior to July 1, 2021 under the apportionment provided herein.
In the event that REMIF disposes of the real property identified as 414 West Napa Street, Sonoma, CA 95476 (REMIF Property), any unfunded Retirement Liability allocated to REMIF for service accrued prior to July 1, 2021 shall first be reduced by applying the proceeds from the sale of the REMIF Property as provided in Resolution 2019-03, attached hereto as Exhibit C , prior to the determination of the amounts owed by the members of REMIF prior to July 1, 2021 under the apportionment provided herein.
C. The apportionment of the Retirement Liability of CIRA among the former and current members of CIRA and REMIF, as identified in Appendix A and B, and the obligation to pay their share of the CIRA Retirement Liability as provided herein, shall be a separate and independent obligation from the obligation of the Member Entities arising upon termination, expulsion or withdrawal of a Member Entity or upon termination of the JPA Agreement including but not limited to ARTICLES XII, XIII, XIV, and XV of that Agreement.
ARTICLE V
TERM OF AGREEMENT
This Agreement shall become effective as of the date hereof and shall continue in full force and effect for the purpose of paying 100% of the Retirement Liability of CIRA pursuant to the apportionment among former and current members of CIRA and REMIF, as identified in Appendix A and B,, as provided for herein.
Adopted May 20, 2022 8
ARTI
CLE VI
SEVERABILITY
Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby.
ARTI
CLE VII
AGREEMENT COMPLETE
The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. If any provision of this Agreement conflicts with a provision of the Bylaws, Memoranda of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern.
ARTICLE VIII
AMENDMENTS
This Agreement may be amended by a two -thirds vote of the Board present and voting at any duly convened regular or special meeting; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Member Entities may, by resolution or ordinance, grant their director and alternate on the Board explicit authorization to approve and execute amendments to this Agreement on behalf of the Member Entity without the necessity of a resolution or ordinance of the legislative body of the Adopted May 20, 2022 9
Me
mber Entity confirming or ratifying such amendment. Any such amendment shall become effective immediately, unless otherwise stated therein.
ARTI
CLE IX
EXECUTION OF COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but altogether shall constitute one and the same Agreement.
California Intergovernmental Risk Authority [“CIRA’]
Dat
e: By: ________________________________
CIRA General Manager
Attest: ______________________________
CIRA Deputy Secretary
Me
mber Entity: _______________________
Dat
e: By: ________________________________
Name/Title
Atte
st: ______________________________
City/Town Clerk
Adopted May 20, 2022 10
APP
ENDIX A
CAL
IFORNIA INTERGOVERNMENT RISK AUTHORITY
(CI
RA)
MEM
BER ENTITIES
City
of Amador City
City of Arcata
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Cloverdale
City of Coalinga
City of Cotati
City of Eureka
City of Ferndale
City of Fort Bragg
City of Fortuna
City of Grass Valley
City of Healdsburg
City of Highland
City of Lakeport
City of Menifee
City of Nevada City
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of Rohnert Park
City of San Juan Bautista
City of Sebastopol
City of Sierra Madre
City of Sonoma
City of St. Helena
City of South Lake Tahoe
City of Tehama
Adopted May 20, 2022 11
Ci
ty of Trinidad
Town of Truckee
City of Twentynine Palms
City of Ukiah
City of Watsonville
City of Wheatland
City of Wildomar
City of Wilits
City of Windsor
Town of Yountville
City of Yucaipa
Town of Yucca Valley
Adopted May 20, 2022 12
APP
ENDIX “B”
PUB
LIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]
MEMBER ENTITIES
City
of Amador City
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Coalinga
City of Ferndale
City of Grass Valley
City of Highland
City of Menifee
City of Nevada City
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of San Juan Bautista
City of South Lake Tahoe
City of Tehama
City of Trinidad
Town of Truckee
City of Twentynine Palms
City of Watsonville
City of Wheatland
City of Wildomar
Town of Yountville
City of Yucaipa
Town of Yucca Valley
Adopted May 20, 2022 13
REDW
OOD EMPIRE MUNICIPAL INSURANCE FUND
(REMIF)
City o
f Arcata
City of Cloverdale
City of Cotati
City of Eureka
City of Fort Bragg
City of Fortuna
City of Healdsburg
City of Lakeport
City of Rohnert Park
City of Sebastopol
City of Sonoma
City of St. Helena
City of Ukiah
City of Willits
City of Windsor
APPE
NDIX “B”
PUBL
IC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]
FORMER MEMBER ENTITIES
City o
f Alturas
City of Canyon Lake
City of Carlsbad
City of Elk Grove
City of Hesperia
City of Pacific Grove
City of Rialto
City of Ridgecrest
City of Rio Dell
City of West Hollywood
REDW
OOD EMPIRE MUNICIPAL INSURANCE FUND
(REM
IF)
City o
f Crescent City
APPENDIX C