12-07-2010 - City Treasurers Report for the Month of September - Item No 5 (2).pdf
City of West Covina
Memorandum
AGENDA
Item No. 5 .
Date December 7, 2010
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: CITY TREASURER’S REPORT FOR SEPTEMBER 2010
RECOMMENDATION:
It is recommended the City Council receive and file this report.
DISCUSSION:
Effective January 1, 2006, Section 53646 of the Government Code states that a city’s chief
fiscal officer may submit quarterly reports to their legislative body. This report is to include
the type of investment, issuer, date of maturity, par and dollar amount invested on all
securities, investments, and money held by the local agency. It must also include a statement
that the portfolio is in compliance with the City’s investment policy, or manner in which it is
not in compliance, and note the ability of the local agency to meet its expenditure
requirements for the next six months, or provide an explanation as to why sufficient money
may not be available.
Although it is no longer a requirement to submit quarterly reports to the local legislative
body, the Finance Department will continue to submit treasurer’s reports to the West Covina
City Council each month.
The September Report shows the City’s portfolio decreased from $47,208,965.13 on August
31, 2010, to $44,306,567.18 on September 30, 2010. Beginning with the May 2001 report,
average maturity information has been provided for investments in the City’s portfolio. The
overall average maturity of the portfolio is 907 days or approximately two and a half years.
Approximately 4 percent of the portfolio is on deposit in various bank accounts. These funds
are available to satisfy obligations as needed. The majority of the portfolio is on deposit in
two investment pools. Approximately 46 percent is held in the State of California Local
Agency Investment Fund (LAIF) and 18 percent is in the Los Angeles County Investment
Pool (LACIP). These funds are completely liquid since the City could withdraw them at any
time. The portfolio also includes two long-term, high interest investments made in the early
1980s which constitute approximately 32 percent of the portfolio.
Bond Detail Report:
The September report also includes a Bond Detail Report. This report shows how Fiscal
Agents are investing City, Community Development Commission and Public Financing
Authority cash, which they hold to service various debts. This information is reported to the
City Council quarterly.
_________________________ ___________________________________
Prepared by: Dennis Swink Reviewed/Approved by: Thomas Bachman
Controller Finance Director
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
SEPTEMBER 30, 2010
TYPES OF DEPOSITS:AUGUST 31 DEPOSITS WITHDRAWALS SEPTEMBER 30
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING $452,289.00 $12,412,984.99 $12,525,218.99 $340,055.00
WELLS FARGO BANK GEN AUTO & LIABILITY - 300,108.27 300,108.27 -
WELLS FARGO BANK WORKER'S COMPENSATION 50,000.00 93,403.90 93,403.90 50,000.00
WELLS FARGO PAYROLL 94,593.96 2,895,464.97 2,908,745.83 81,313.10
SUB-TOTAL $596,882.96 $15,701,962.13 $15,827,476.99 $471,368.10 1.064%
OTHER INVESTMENTS:
WELLS FARGO SWEEP $1,173,694.12 $4,250,338.72 $3,932,186.60 $1,491,846.24 3.367%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)3,688,593.75 - - 3,688,593.75 **8.325%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)10,199,962.50 - - 10,199,962.50 **23.021%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)23,510,174.35 1,000,000.00 4,100,000.00 20,410,174.35 46.066%
LOS ANGELES COUNTY POOL (LACIP)8,039,657.45 4,964.79 - 8,044,622.24 18.157%
SUB-TOTAL $46,612,082.17 $5,255,303.51 $8,032,186.60 $43,835,199.08 98.936%
TOTAL $47,208,965.13 $20,957,265.64 $23,859,663.59 $44,306,567.18 100%
** These two high interest long term investments were made before State Law limited investments to a maximum five-year term.
It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005.
The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 16, 2010.
EARNED INTEREST YIELD THIS PERIOD: 2.995%SIX-MONTH TREASURY BILL YIELD: 0.190%
REVIEWED BY:PREPARED BY:
__________________________________________________________________________________________________
Dennis Swink, City Controller Angel F. Pateña, Revenue Services Supervisor
SUBMITTED BY:APPROVED BY:
__________________________________________________________________________________________________
Thomas Bachman, Assistant City Manager/Finance Director Marian V. Smithson, City Treasurer
City of West Covina Portfolio Details
September 30, 2010
AVERAGE 09/30/2010 08/31/2010
INVESTMENT INVESTMENT ISSUER MATURITY PURCHASE DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET
NUMBER TYPE DATE DATE MATURITY VALUE *VALUE *
1986-06-01 ** FHLMC U.S. GOVERNMENT AGENCY 06/01/16 06/01/86 313400MC4 8.250 7.728 10,199,962.50 9,555,000.00 12,048,281.70 12,024,394.20
2041 10,199,962.50 9,555,000.00 12,048,281.70 12,024,394.20
1985-12-10 ** FNMA U.S. GOVERNMENT AGENCY 12/10/15 12/10/85 313586UB3 10.350 8.418 3,688,593.75 3,000,000.00 4,290,930.00 4,297,500.00 1870 3,688,593.75 3,000,000.00 4,290,930.00 4,297,500.00
1992-04-20 LACIP LOS ANGELES COUNTY TREASURER 04/20/92 526 N/A 1.390 1.390 8,044,622.24 8,044,622.24 8,044,622.24 8,044,622.24
1989-10-19 LAIF STATE OF CALIFORNIA 10/19/89 185 N/A 0.500 0.500 20,410,174.35 20,410,174.35 20,410,174.35 20,410,174.35
907 TOTALS:42,343,352.84 41,009,796.59 44,794,008.29 44,776,690.79
* MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK.
** These two high interest long term investments were made before State Law limited investments to a maximum five-year term.
Note: The Wells Fargo Sweep account was not included in the calculation of average maturity.
CITY OF WEST COVINA
BOND DETAIL REPORT
September 30, 2010
Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face
Amount Market Value Rate
1988 Lease Revenue Refunding Bonds Reserve Federated Treasury Obligations Federated Investors Co Open 396,611.71 396,611.71 396,611.71 -
1988 Lease Revenue Refunding Bonds Reserve Cash 0.00 0.00 0.00
396,611.71 396,611.71 396,611.71
1988 Lease Revenue Refunding Bonds L/C Fund AIB Irr Letter of Credit L/C #C-413 Allied Irish Bank 8/16/2011 0.00 1.00 0.00 -
1988 Lease Revenue Refunding Bonds L/C Fund Cash 0.00 0.00 0.00
0.00 1.00 0.00
Ending Balances 396,611.71 396,612.71 396,611.71
2002 PFA Lease Revenue Refunding Bond Credit Facility California Strs, Confirming LOC L/C #53 California Strs 6/26/2013 0.00 1.00 0.00 -
2002 PFA Lease Revenue Refunding Bond Credit Facility Union Bank of CA L/C #306S234230 Union Bank 6/26/2012 0.00 1.00 0.00 -
Cash 0.00 0.00 0.00
0.00 2.00 0.00
Ending Balances 0.00 2.00 0.00
2003 Community Center COPs Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 357,861.88 357,861.88 357,861.88 -
2003 Community Center COPs Reserve Account Cash 0.00 0.00 0.00
357,861.88 357,861.88 357,861.88
Ending Balances 357,861.88 357,861.88 357,861.88
2004 WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility Union Bank of CA Irrevocable LC #306S235825 Union Bank 11/18/2011 1.00 1.00 0.00 -
2004 WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility Cash 0.00 0.00 0.00
1.00 1.00 0.00
Ending Balances 1.00 1.00 0.00
2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 2,703.77 2,703.77 2,703.77 -
2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment Cash 0.00 0.00 0.00
2,703.77 2,703.77 2,703.77
Ending Balances 2,703.77 2,703.77 2,703.77
Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face
Amount Market Value Rate
2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 983,584.25 983,584.25 983,584.25 -
2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account Cash 0.00 0.00 0.00
983,584.25 983,584.25 983,584.25
2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account First American Treas Oblig FD CL D First American Funds, Inc.Open 589,387.50 589,387.50 589,387.50 -
2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account Cash 0.00 0.00 0.00
589,387.50 589,387.50 589,387.50
Ending Balances 1,572,971.75 1,572,971.75 1,572,971.75
*Market valuations have been provided by BNY Western Trust Company and U.S. Bank Corporate Trust Services GRAND TOTALS 2,330,150.11 2,330,153.11 2,330,149.11
City of West Covina
Memorandum
AGENDA
Item No. 6 .
Date December 7, 2010
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: CITY TREASURER’S REPORT FOR OCTOBER 2010
RECOMMENDATION:
It is recommended the City Council receive and file this report.
DISCUSSION:
Effective January 1, 2006, Section 53646 of the Government Code states that a city’s chief
fiscal officer may submit quarterly reports to their legislative body. This report is to include
the type of investment, issuer, date of maturity, par and dollar amount invested on all
securities, investments, and money held by the local agency. It must also include a statement
that the portfolio is in compliance with the City’s investment policy, or manner in which it is
not in compliance, and note the ability of the local agency to meet its expenditure
requirements for the next six months, or provide an explanation as to why sufficient money
may not be available.
Although it is no longer a requirement to submit quarterly reports to the local legislative
body, the Finance Department will continue to submit treasurer’s reports to the West Covina
City Council each month.
The October Report shows the City’s portfolio decreased from $44,306,567.18 on September
30, 2010, to $39,966,074.46 on October 31, 2010. Beginning with the May 2001 report,
average maturity information has been provided for investments in the City’s portfolio. The
overall average maturity of the portfolio is 969 days or approximately two and a half years.
Approximately 4 percent of the portfolio is on deposit in various bank accounts. These funds
are available to satisfy obligations as needed. The majority of the portfolio is on deposit in
two investment pools. Approximately 41 percent is held in the State of California Local
Agency Investment Fund (LAIF) and 20 percent is in the Los Angeles County Investment
Pool (LACIP). These funds are completely liquid since the City could withdraw them at any
time. The portfolio also includes two long-term, high interest investments made in the early
1980s which constitute approximately 35 percent of the portfolio.
_________________________ ___________________________________
Prepared by: Dennis Swink Reviewed/Approved by: Thomas Bachman
Controller Finance Director
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
OCTOBER 31, 2010
TYPES OF DEPOSITS:SEPTEMBER 30 DEPOSITS WITHDRAWALS OCTOBER 31
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING $340,055.00 $11,810,064.45 $11,871,830.45 $278,289.00
WELLS FARGO BANK GEN AUTO & LIABILITY - 114,896.77 114,896.77 -
WELLS FARGO BANK WORKER'S COMPENSATION 50,000.00 45,649.58 45,649.58 50,000.00
WELLS FARGO PAYROLL 81,313.10 2,884,283.92 2,892,128.38 73,468.64
SUB-TOTAL $471,368.10 $14,854,894.72 $14,924,505.18 $401,757.64 1.005%
OTHER INVESTMENTS:
WELLS FARGO SWEEP $1,491,846.24 $3,555,199.26 $3,868,277.41 $1,178,768.09 2.949%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)3,688,593.75 - - 3,688,593.75 **9.229%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)10,199,962.50 - - 10,199,962.50 **25.522%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)20,410,174.35 32,815.63 4,000,000.00 16,442,989.98 41.142%
LOS ANGELES COUNTY POOL (LACIP)8,044,622.24 9,380.26 - 8,054,002.50 20.152%
SUB-TOTAL $43,835,199.08 $3,597,395.15 $7,868,277.41 $39,564,316.82 98.995%
TOTAL $44,306,567.18 $18,452,289.87 $22,792,782.59 $39,966,074.46 100%
** These two high interest long term investments were made before State Law limited investments to a maximum five-year term.
It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005.
The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 18, 2010.
EARNED INTEREST YIELD THIS PERIOD: 3.260%SIX-MONTH TREASURY BILL YIELD: 0.180%
REVIEWED BY:PREPARED BY:
__________________________________________________________________________________________________
Dennis Swink, City Controller Angel F. Pateña, Revenue Services Supervisor
SUBMITTED BY:APPROVED BY:
__________________________________________________________________________________________________
Thomas Bachman, Assistant City Manager/Finance Director Marian V. Smithson, City Treasurer
City of West Covina Portfolio Details
October 31, 2010
AVERAGE 10/31/2010 09/30/2010
INVESTMENT INVESTMENT ISSUER MATURITY PURCHASE DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET
NUMBER TYPE DATE DATE MATURITY VALUE *VALUE *
1986-06-01 ** FHLMC U.S. GOVERNMENT AGENCY 06/01/16 06/01/86 313400MC4 8.250 7.728 10,199,962.50 9,555,000.00 12,099,018.75 12,048,281.70
2011 10,199,962.50 9,555,000.00 12,099,018.75 12,048,281.70
1985-12-10 ** FNMA U.S. GOVERNMENT AGENCY 12/10/15 12/10/85 313586UB3 10.350 8.418 3,688,593.75 3,000,000.00 4,286,250.00 4,290,930.00 1840 3,688,593.75 3,000,000.00 4,286,250.00 4,290,930.00
1992-04-20 LACIP LOS ANGELES COUNTY TREASURER***04/20/92 526 N/A 1.390 1.390 8,054,002.50 8,054,002.50 8,054,002.50 8,054,002.50
1989-10-19 LAIF STATE OF CALIFORNIA 10/19/89 191 N/A 0.480 0.480 16,442,989.98 16,442,989.98 16,442,989.98 16,442,989.98
969 TOTALS:38,385,548.73 37,051,992.48 40,882,261.23 40,836,204.18
* MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK.
** These two high interest long term investments were made before State Law limited investments to a maximum five-year term.
*** For this month's report, September 2010 LACIP Earnings Rate and September 2010 LACIP Weighted Average Days to Maturity were used due to the unavailability of October 2010 figures as of the writing of this report.
Note: The Wells Fargo Sweep account was not included in the calculation of average maturity.
City of West Covina
Memorandum
AGENDA
Item No. 7 .
Date December 7, 2010
TO: Andrew G. Pasmant, Executive Director
and the Community Development Commission
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: CDC TREASURER’S REPORT FOR SEPTEMBER 2010
RECOMMENDATION:
It is recommended the Community Development Commission Board receive and file this
report
DISCUSSION:
Effective January 1, 2006, Section 53646 of the Government Code states that a city’s chief
fiscal officer may submit quarterly reports to their legislative body. This report is to include
the type of investment, issuer, date of maturity, par and dollar amount invested on all
securities, investments, and money held by the local agency. It must also include a statement
that the portfolio is in compliance with the City’s investment policy, or manner in which it is
not in compliance, and note the ability of the local agency to meet its expenditure
requirements for the next six months, or provide an explanation as to why sufficient money
may not be available.
Although it is no longer a requirement to submit quarterly reports to the local legislative
body, the Finance Department will continue to submit treasurer’s reports to the West Covina
Community Development Commission Board each month.
The September Report shows the CDC’s portfolio decreased from $16,675,633.57 on August
31, 2010, to $15,925,450.24 on September 30, 2010. To ensure funds are available on short
notice to take advantage of development opportunities, the CDC’s surplus funds are in
investment pools with the State of California Local Agency Investment Pool (LAIF) and the
Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the
City could withdraw them at any time. Approximately 69 percent of the portfolio is on
deposit in LAIF and 30 percent is in LACIP. The remaining 1 percent of available cash is
on deposit in various checking accounts. This report also shows cash holdings for the
Community Facilities District. These funds are used for district operating expenses and debt
service and are invested in a separate LACIP account.
Bond Detail Report:
The September report also includes a Bond Detail Report. This report shows how Fiscal
Agents are investing City, Community Development Commission and Public Financing
Authority cash, which they hold to service various debts. This information is reported to the
City Council quarterly.
_________________________ ___________________________________
Prepared by: Dennis Swink Reviewed/Approved by: Thomas Bachman
Controller Finance Director
COMMUNITY DEVELOPMENT COMMISSION
STATEMENT OF TREASURER'S ACCOUNTABILITY
SEPTEMBER 30, 2010
TYPES OF DEPOSITS:AUGUST 31 DEPOSITS WITHDRAWALS SEPTEMBER 30
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING $51,575.96 $35,938.66 $- $87,514.62
PACIFIC WESTERN NAT BANK RDA PROGRAMS (SBA/FTHB/HPP)17,350.90 60,300.00 60,300.00 17,350.90
SUB-TOTAL $68,926.86 $96,238.66 $60,300.00 $104,865.52
OTHER INVESTMENTS:
LOCAL AGENCY INVESTMENT FUND (LAIF)$11,879,673.31 $- $789,000.00 $11,090,673.31
LOS ANGELES COUNTY POOL (LACIP)4,727,033.40 2,878.01 - 4,729,911.41
SUB-TOTAL $16,606,706.71 $2,878.01 $789,000.00 $15,820,584.72
TOTAL $16,675,633.57 $99,116.67 $849,300.00 $15,925,450.24
COMMUNITY FACILITIES DISTRICT REVENUE FUND
WELLS FARGO BANK C.F.D. CHECKING $23,523.76 $479,591.33 $500,307.62 $2,807.47
LOS ANGELES COUNTY POOL (LACIP)495,705.50 192,108.25 290,000.00 397,813.75
TOTAL FOR C.F.D. REVENUE FUND $519,229.26 $671,699.58 $790,307.62 $400,621.22
It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005.
The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 16, 2010.
EARNED INTEREST YIELD THIS PERIOD: 0.766%SIX-MONTH TREASURY BILL YIELD: 0.190%
REVIEWED BY:PREPARED BY:
__________________________________________________________________________________________________
Dennis Swink, City Controller Angel F. Pateña, Revenue Services Supervisor
SUBMITTED BY:APPROVED BY:
__________________________________________________________________________________________________
Thomas Bachman, Assistant City Manager/Finance Director Marian V. Smithson, City Treasurer
WEST COVINA COMMUNITY DEVELOPMENT COMMISSION
BOND DETAIL REPORT
September 30, 2010
Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Amount Market Value Rate
1998 Housing Set-Aside Bonds Series A, B Bond First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 0.03 0.03 0.03 -
1998 Housing Set-Aside Bonds Series A, B Bond Cash 0.00 0.00 0.000.03 0.03 0.03
1998 Housing Set-Aside Bonds Series A, B Interest Series A First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 33.43 33.43 33.43 -
1998 Housing Set-Aside Bonds Series A, B Interest Series A Cash 0.00 0.00 0.0033.43 33.43 33.43
1998 Housing Set-Aside Bonds Series A, B Interest Series B First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 14.18 14.18 14.18 -
1998 Housing Set-Aside Bonds Series A, B Interest Series B Cash 0.00 0.00 0.0014.18 14.18 14.18
1998 Housing Set-Aside Bonds Series A, B Reserve Series A First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 346,580.02 346,580.02 346,580.02 -
1998 Housing Set-Aside Bonds Series A, B Reserve Series A Cash 0.00 0.00 0.00346,580.02 346,580.02 346,580.02
1998 Housing Set-Aside Bonds Series A, B Reserve Series B First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 102,186.32 102,186.32 102,186.32 -
1998 Housing Set-Aside Bonds Series A, B Reserve Series B Cash 0.00 0.00 0.00
102,186.32 102,186.32 102,186.32
1998 Housing Set-Aside Bonds Series A, B Project Fund Series B First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 114,680.87 114,680.87 114,680.87 - 1998 Housing Set-Aside Bonds Series A, B Project Fund Series B Cash 0.00 0.00 0.00
114,680.87 114,680.87 114,680.87
1998 Housing Set-Aside Bonds Series A, B Principal Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 194.59 194.59 194.59 - 1998 Housing Set-Aside Bonds Series A, B Principal Account Cash 0.00 0.00 0.00
194.59 194.59 194.59
Ending Balances 563,689.44 563,689.44 563,689.44
1999 Tax Allocation Bonds Purchase Fund Municipal Issues WC PFA TABS 11/1/2029 3,800,000.00 3,800,000.00 3,800,000.00 2.750
1999 Tax Allocation Bonds Purchase Fund Cash 0.00 0.00 0.00
3,800,000.00 3,800,000.00 3,800,000.00
Ending Balances 3,800,000.00 3,800,000.00 3,800,000.00
2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 576.88 576.88 576.88 -
2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account F H L M C DISCOUNT NOTE U.S. Treas & Agency 3/1/2011 779,100.62 800,000.00 799,440.00 5.270
2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account Cash 0.00 0.00 0.00779,677.50 800,576.88 800,016.88
2001 RDA Housing Set-Aside T/A Rev Bonds Project Fund First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 50.43 50.43 50.43 -
2001 RDA Housing Set-Aside T/A Rev Bonds Project Fund Cash 0.00 0.00 0.0050.43 50.43 50.43
Ending Balances 779,727.93 800,627.31 800,067.31
Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Amount Market Value Rate
2002 RDA T/A Revenue Refunding Bonds Special Fund First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 0.04 0.04 0.04 -
2002 RDA T/A Revenue Refunding Bonds Special Fund Cash 0.00 0.00 0.00
0.04 0.04 0.04
2002 RDA T/A Revenue Refunding Bonds Reserve Fund First American Government Obligation Fd CL D First American Funds, Inc.Open 1,004,003.50 1,004,003.50 1,004,003.50 -
2002 RDA T/A Revenue Refunding Bonds Reserve Fund Cash 0.00 0.00 0.00
1,004,003.50 1,004,003.50 1,004,003.50
Ending Balances 1,004,003.54 1,004,003.54 1,004,003.54
1996 Special Tax Bonds Bonds Fund First American Treas Oblig Cl d Corp Trust First American Funds, Inc.Open 4,891.26 4,891.26 4,891.26 - 1996 Special Tax Bonds Bonds Fund Cash 0.00 0.00 0.00
4,891.26 4,891.26 4,891.26
1996 Special Tax Bonds Reserve Fund Guaranteed Investment Contract Westdeutsche Landesbank Girozentrale 9/1/2022 5,002,670.40 5,002,670.40 5,002,670.40 7.010 1996 Special Tax Bonds Reserve Fund Cash 0.00 0.00 0.00
5,002,670.40 5,002,670.40 5,002,670.40
Ending Balances 5,007,561.66 5,007,561.66 5,007,561.66
*Market valuations have been provided by U.S. Bank Corporate Trust Services GRAND TOTALS 11,154,982.57 11,175,881.95 11,175,321.95
City of West Covina
Memorandum
AGENDA
Item No. 8 .
Date December 7, 2010
TO: Andrew G. Pasmant, Executive Director
and the Community Development Commission
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: CDC TREASURER’S REPORT FOR OCTOBER 2010
RECOMMENDATION:
It is recommended the Community Development Commission Board receive and file this
report
DISCUSSION:
Effective January 1, 2006, Section 53646 of the Government Code states that a city’s chief
fiscal officer may submit quarterly reports to their legislative body. This report is to include
the type of investment, issuer, date of maturity, par and dollar amount invested on all
securities, investments, and money held by the local agency. It must also include a statement
that the portfolio is in compliance with the City’s investment policy, or manner in which it is
not in compliance, and note the ability of the local agency to meet its expenditure
requirements for the next six months, or provide an explanation as to why sufficient money
may not be available.
Although it is no longer a requirement to submit quarterly reports to the local legislative
body, the Finance Department will continue to submit treasurer’s reports to the West Covina
Community Development Commission Board each month.
The October Report shows the CDC’s portfolio decreased from $15,925,450.24 on
September 30, 2010, to $14,964,300.98 on October 31, 2010. To ensure funds are available
on short notice to take advantage of development opportunities, the CDC’s surplus funds are
in investment pools with the State of California Local Agency Investment Pool (LAIF) and
the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since
the City could withdraw them at any time. Approximately 67 percent of the portfolio is on
deposit in LAIF and 32 percent is in LACIP. The remaining 1 percent of available cash is
on deposit in various checking accounts. This report also shows cash holdings for the
Community Facilities District. These funds are used for district operating expenses and debt
service and are invested in a separate LACIP account.
_________________________ ___________________________________
Prepared by: Dennis Swink Reviewed/Approved by: Thomas Bachman
Controller Finance Director
COMMUNITY DEVELOPMENT COMMISSION
STATEMENT OF TREASURER'S ACCOUNTABILITY
OCTOBER 31, 2010
TYPES OF DEPOSITS:SEPTEMBER 30 DEPOSITS WITHDRAWALS OCTOBER 31
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING $87,514.62 $496,514.34 $428,043.24 $155,985.72
PACIFIC WESTERN NAT BANK RDA PROGRAMS (SBA/FTHB/HPP)17,350.90 41,234.67 41,234.67 17,350.90
SUB-TOTAL $104,865.52 $537,749.01 $469,277.91 $173,336.62
OTHER INVESTMENTS:
LOCAL AGENCY INVESTMENT FUND (LAIF)$11,090,673.31 $18,103.82 $1,053,000.00 $10,055,777.13
LOS ANGELES COUNTY POOL (LACIP)4,729,911.41 5,275.82 - 4,735,187.23
SUB-TOTAL $15,820,584.72 $23,379.64 $1,053,000.00 $14,790,964.36
TOTAL $15,925,450.24 $561,128.65 $1,522,277.91 $14,964,300.98
COMMUNITY FACILITIES DISTRICT REVENUE FUND
WELLS FARGO BANK C.F.D. CHECKING $2,807.47 $92,100.00 $2,114.75 $92,792.72
LOS ANGELES COUNTY POOL (LACIP)397,813.75 2,507.93 - 400,321.68
TOTAL FOR C.F.D. REVENUE FUND $400,621.22 $94,607.93 $2,114.75 $493,114.40
It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005.
The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 18, 2010.
EARNED INTEREST YIELD THIS PERIOD: 0.771%SIX-MONTH TREASURY BILL YIELD: 0.180%
REVIEWED BY:PREPARED BY:
__________________________________________________________________________________________________
Dennis Swink, City Controller Angel F. Pateña, Revenue Services Supervisor
SUBMITTED BY:APPROVED BY:
__________________________________________________________________________________________________
Thomas Bachman, Assistant City Manager/Finance Director Marian V. Smithson, City Treasurer
City of West Covina
Memorandum
AGENDA
ITEM NO. 9
DATE December 7, 2010
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: ORDINANCE - RETIREMENT BENEFIT
- MISCELLANEOUS EMPLOYEES
RECOMMENDATION:
In order to implement the change in retirement benefit from 2.5%@55 to 2%@60 for
miscellaneous employees entering membership for the first time in the miscellaneous
classification, as previously approved in the Memorandums of Understanding and the City's Last
Best and Final Offer with five miscellaneous bargaining units, it is recommended that the City
Council adopt the following Ordinance:
ORDINANCE NO. - AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF WEST
COVINA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM.
DISCUSSION:
At the City Council meeting of October 19, 2010, the City Council introduced an ordinance for
adoption authorizing an amendment to the Public Employees' Retirement System (PERS)
contract. This ordinance is now being presented for the second reading.
The effective date of the ordinance, once adopted, will be January 7, 2010. The effective date of
the PERS amendment to the contract is January 8, 2011.
Thomas Bachman, Assistant City Manager
Attachment: Ordinance to Amend PERS Contract
Staff Report dated October 19, 2010
CC PERS 2%@60 AMENDMENT Final Ordinance
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY
COUNCIL OF THE CITY OF WEST COVINA AND THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the City of West Covina has made a determination regarding
the issue of providing PERS Benefit of 2%0,60 for miscellaneous employees entering
membership for the first time in the miscellaneous groups; and
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;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST
COVINA DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the City Council
of the City of West Covina and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said amendment being attached hereto,
marked "Exhibit", and by such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of West Covina is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. The City Clerk shall certify the adoption of this Ordinance
and shall cause same to be posted or published in the manner as required by law.
SECTION 4: This Ordinance shall take effect and be in force thirty (30)
days from and after the date of its passage.
Passed and approved this 7th day of December 2010.
Mayor Shelley Sanderson
ATTEST:
City Clerk Laurie Carrico
Z: CC PERS 2%@60 AMENDMENT Final Ordinance
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, do hereby
certify that the foregoing Ordinance No. was regularly introduced and
placed upon its first reading at a regular meeting of the City Council on the 19th day of
October 2010. That, thereafter, said ordinance was duly adopted and passed at a meeting
of the City Council on the 7th day of December 2010, by the following vote:
AYES:
NOES:
ABSENT:
City Clerk Laurie Carrico
Approved as to form:
City Attorney Arnold Alvarez-Glasman
CC PERS 2%@60 AMENDMENT Final Ordinance
CalPERS
California
Public Employees' Retirement System
40-
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of West Covina
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 July 1,
1966, and witnessed May 26, 1966, and as amended effective November 1, 1968,
October 1, 1970, September 16, 1977, December 11, 1978, January 1, 1979, June 1,
1983, December 16, 1983, December 16, 1984, December 16, 1987, February 16,
1989, July 1, 1989, June 17, 1992, January 6, 1994, June 24, 1997, September 24,
1997, October 2, 1998, November 17, 1998, July 16, 1999, July 8, 2000, August 4,
2001, October 12, 2002 and July 1, 2006 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective July 1, 2006, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
1. All words 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 55 for local miscellaneous members entering membership in
the miscellaneous classification on or prior to the effective date of this
amendment to contract; age 60 for local miscellaneous members entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract; and age 50 for local safety
members.
Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1966 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.
Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CalPERS) and its
trustees, agents and employees, the CalPERS 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 attorneys 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-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS 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.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. 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:
Local Fire Fighters (herein referred to as local safety members);
Local Police Officers (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
In 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. PERSONS COMPENSATED ON AN HOURLY BASIS; AN
EMPLOYEES AND FORMER EMPLOYEES RETAINING RIGHTS,
OR RECEIVING BENEFITS ON ACCOUNT OF RETIREMENT
FOR SERVICE UNDER THE LOCAL SYSTEM AS OF JULY 1,
1966.
Benefits being received under the local system on July 1, 1966 by
persons retired for disability shall be continued by the Public Employees'
Retirement System at the rate provided in the local system in accordance
with Section 20481 of the said Retirement Law, said rate being constituted
as follows:
A monthly lifetime allowance in the amount of one-half of the retired
person's basis salary at the date of disability retirement reduced by
the worker's compensation payments, each month during the
retired person's entitlement to such payments.
A $500 death benefit payable upon death of the retired person
described above.
Public Agency, in accordance with Section 20685 of the Government
Code, shall provide that the normal rate of contribution for those
employees who were members of the Local Retirement System be based
on age at entry into said local system.
Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder. That portion of the assets so transferred which
represent the accumulated contributions (plus interest thereof) required of
the employees under said local system has been credited to the individual
membership account of each such employee under the Public Employees'
Retirement System.
9. This contract shall be a continuation of the contract of the San Gabriel
Valley Fire Authority. A portion of the function of The San Gabriel Valley
Fire Authority has been transferred to the City of West Covina. The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred February 1, 1989.
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after July 1, 2006 shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55
Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after July 1, 2006 and not entering membership for the
first time in the miscellaneous classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21354.4 of said Retirement Law (2.5% at age 55 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
accordance with Section 21353 of said Retirement Law (2% at age 60
Full).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
14. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21389 (Second Opportunity to Elect 1959 Survivor
Benefits). Legislation repealed said Section effective September
27, 1979.
b. Section 21536 (Local System Service Credit Included in Basic
Death Benefit).
c. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
d. Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only.
e. Section 20042 (One-Year Final Compensation).
Section 20965 (Credit for Unused Sick Leave).
Section 21622 ($600 Retired Death Benefit) for local fire members
only.
Section 21024 (Military Service Credit as Public Service).
Section 21574 (Fourth Level of 1959 Survivor Benefits).
Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
safety members only.
k. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) is applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after the effective date of this amendment to contract.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 16, 1977. Accumulated contributions of Public Agency shall
be fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
16. 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.
17. Public Agency shall also contribute to said Retirement System as follows:
Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
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 special valuations or of the
periodic investigation and valuations required by law.
c. 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
the periodic investigation and valuations required by law.
18. 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.
19. 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. If 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 WEST COVINA
BY BY
LORI MCGARTLAND, CHIEF PRESIDING OFFICER
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT ER# 630
PERS-CON-702A
HUMAN RESOURCES DEPARTMENT
WEST COMA, MEMORANDUM
DATE: October 19, 2010
TO: Andrew G. Pasmant, City Manager and
and City Council
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: Addendum to Item D-3d
Retirement Benefit
- Miscellaneous Employees
- October 19, 2010 Council Meeting
Please note that the RECOMMENDATION paragraph should read,
"In order to implement the change in retirement benefit from 2.5%@,55 to 2%@60 for
miscellaneous employees entering membership for the first time in the miscellaneous
classification, as previously approved in the Memorandums of Understanding and the City's Last
Best and Final Offer with five miscellaneous bargaining units, the City Council is requested to
adopt the Resolution of Intention to Approve an Amendment to Contract Between the Board of
Administration California Public Employees' Retirement System and the City Council of the
City of West Covina, and introduce the following ordinance:"
Ciry of West Covina
Memorandum
AGENDA
ITEM NO. D-3d
DATE October 19, 2010
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman Assistant City Manager
SUBJECT: RETIREMENT BENEFIT
- MISCELLANEOUS EMPLOYEES
RECOMMENDATION:
In order to implement the change in retirement benefit from 2.5%@55 to 2%@60 for
miscellaneous employees entering membership for the first time in the miscellaneous
classification, as previously approved in the Memorandums of Understanding and the City's Last
Best and Final Offer with five miscellaneous bargaining units, the City Council is requested to
introduce the following ordinance:
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA, CALIFORNIA,
AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF
THE CITY OF WEST COVINA AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
DISCUSSION:
At their regular meeting of August 4, 2010, the City Council approved the Memorandums of
Understanding (MOUs) between the City and the Mid-Management Employees' Association,
Confidential Employees' Association, and a Side Letter Agreement with the General Employees'
Association, and imposition of the City's Last Best and Final Offer to the Maintenance Employees'
Association and Non-Sworn Safety Support Employees' Association. Included in the MOUs, Side
letter Agreement, and City's Last Best and Final Offers were the implementation of the 2%@60
retirement benefit for those miscellaneous employees hired on or after January 1, 2011. Also
included in these agreements was the provision that all new employees would also pay the 7%
employee contribution. These actions were the first step taken by the City towards pension
reform and controlling rising pension costs.
In order to effect such a contract amendment, PERS requires several steps: 1) adoption of a
Resolution of Intention to amend the contract, 2) conducting a first reading of an ordinance to
amend the contract; and 3) adoption of a final Ordinance (or adopting an urgency Ordinance if time
does not allow a 30-day waiting period between the first reading and final adoption). At least
twenty days (20) must elapse between the adoption of the Resolution of Intention and final or
urgency Ordinance. Staff will present an Ordinance for adoption at the November 16, 2010
meeting. The effective date of the CalPERS Amendment to Contract is January 1,2011.
FISCAL IMPACT
This action is the first step of a long-term strategy to control the City's future pension costs. The
2% @ 60 formula will not result in immediate savings but will generate savings into the future as
new employees are hired. The provision for new employees paying the 7% employee contribution
will result in immediate savings to the City as new employees are hired.
Thomas Bachman, Assistant City Manager
And Finance Director
Attachments: City of West Covina Ordinance for Adoption
PERS Resolution of Intention to Approve an Amendment to Contract
CC PERS 2.%@60 AMENDMENT EFF 11
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF WEST COVINA
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 Section 20475 (Different Level of Benefits).
Section 21353 (2% @ 60 Full formula) is applicable to local
miscellaneous members entering membership for the first
time in the miscellaneous classification after the effective
date of this amendment to contract.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the
Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" and by this reference made a part hereof.
By:
Presiding Officer
Title
Date adopted and approved
(Amendment)
CON-302 (Rev. 4/96)
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY
COUNCIL OF THE CITY OF WEST COVINA AND THE BOARD
OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
WHEREAS, the City of West Covina has made a determination regarding
the issue of providing PERS Benefit of 2%@60 for miscellaneous employees entering
membership for the first time in the miscellaneous groups; and
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;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST
COVINA DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the City Council
of the City of West Covina and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said amendment being attached hereto,
marked Exhibit, and by such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of West Covina is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. The City Clerk shall certify the adoption of this Ordinance
and shall cause the same to be posted or published in the manner as required by law.
SECTION 4: This Ordinance shall take effect and be in force thirty (30)
days from and after the date of its passage.
APPROVED AND ADOPTED ON this
day of
Mayor Shelley Sanderson
ATTEST:
City Clerk Laurie Carrico
Z: CC PERS 2.%0,60 AMENDMENT EFF 1111
Ordinance No. An Ordinance Of The
City Council Of The City Of West Covina, California,
Authorizing An Amendment To The Contract Between
The City Council Of The City Of West Covina And The
Board Of Administration Of The California Public
Employees' Retirement System. — Page 2
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, do hereby
certify that the foregoing Ordinance No. was regularly introduced and
placed upon its first reading at a regular meeting of the City Council on the day of
. That, thereafter, said ordinance was duly adopted and passed at a
meeting of the City Council on the day of , by the following
vote:
AYES:
NOES:
ABSENT:
City Clerk Laurie Carrico
Approved as to form:
City Attorney Arnold Alvarez-Glasman
Z: CC PERS 2.%0,60 AMENDMENT EFF 1111
Ak4
CalPERS
EXHIBIT
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of West Covina
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 July 1,
1966, and witnessed May 26, 1966, and as amended effective November 1, 1968,
October 1, 1970, September 16, 1977, December 11, 1978, January 1, 1979, June 1,
1983, December 16, 1983, December 16, 1984, December 16, 1987, February 16,
1989, July 1, 1989, June 17, 1992, January 6, 1994, June 24, 1997, September 24,
1997, October 2, 1998, November 17, 1998, July 16, 1999, July 8, 2000, August 4,
2001, October 12, 2002 and July 1, 2006 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective July 1, 2006, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
All words 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 55 for local miscellaneous members entering membership in
the miscellaneous classification on or prior to the effective date of this
amendment to contract; age 60 for local miscellaneous members entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract; and age 50 for local safety
members.
PLEASE DO NOT SIG LEXHINT ONLY'
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1966 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.
Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CalPERS) and its
trustees, agents and employees, the CalPERS 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 attorneys 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-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS 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.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
n ri rAT r-vij n r-s,t
Lij 1\1; olulv, 1 cL'i'
4. 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:
Local Fire Fighters (herein referred to as local safety members);
Local Police Officers (herein referred to as local safety members);
Employees other than local safety members (herein referred to as
local miscellaneous members).
In 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. PERSONS COMPENSATED ON AN HOURLY BASIS; AN
EMPLOYEES AND FORMER EMPLOYEES RETAINING RIGHTS,
OR RECEIVING BENEFITS ON ACCOUNT OF RETIREMENT
FOR SERVICE UNDER THE LOCAL SYSTEM AS OF JULY 1,
1966.
Benefits being received under the local system on July 1, 1966 by
persons retired for disability shall be continued by the Public Employees'
Retirement System at the rate provided in the local system in accordance
with Section 20481 of the said Retirement Law, said rate being constituted
as follows:
A monthly lifetime allowance in the amount of one-half of the retired
person's basis salary at the date of disability retirement reduced by
the worker's compensation payments, each month during the
retired person's entitlement to such payments.
A $500 death benefit payable upon death of the retired person
described above.
Public Agency, in accordance with Section 20685 of the Government
Code, shall provide that the normal rate of contribution for those
employees who were members of the Local Retirement System be based
on age at entry into said local system.
Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
incurred thereunder. That portion of the assets so transferred which
represent the accumulated contributions (plus interest thereof) required of
the employees under said local system has been credited to the individual
membership account of each such employee under the Public Employees'
Retirement System.
r n r 17:1,nN1 ,,F.:\fuiD IT ir) V 95
This contractcontract shall be a continuation of the contract of the San Gabriel
Valley Fire Authority. A portion of the function of The San Gabriel Valley
Fire Authority has been transferred to the City of West Covina. The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred February 1, 1989.
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after July 1, 2006 shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55
Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after July 1, 2006 and not entering membership for the
first time in the miscellaneous classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21354.4 of said Retirement Law (2.5% at age 55 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
• accordance with Section 21353 of said Retirement Law (2% at age 60
Full).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
14. Public Agency elected and elects to be subject to the following optional
provisions:
•
a. Section 21389 (Second Opportunity to Elect 1959 Survivor
Benefits). Legislation repealed said Section effective September
27, 1979.
Section 21536 (Local System Service Credit Included in Bas
Death Benefit).
c. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only.
Section 20042 (One-Year Final Compensation).
c, c,t. 10! LF:WDE .•!1_
Section 20965 (Credit for Unused Sick Leave).
Section 21622 ($600 Retired Death Benefit) for local fire members
only.
Section 21024 (Military Service Credit as Public Service).
Section 21574 (Fourth Level of 1959 Survivor Benefits).
Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
safety members only.
k. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) is applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after the effective date of this amendment to contract.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 16, 1977. Accumulated contributions of Public Agency shall
be fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
16. 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.
Public Agency shall also contribute to said Retirement System as follows:
Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
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 special valuations or of the
periodic investigation and valuations required by law.
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
the periodic investigation and valuations required by law.
18. 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.
19. 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. If 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 tl4e,
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
— BY
LORI MCG.T.b.AND, CHIEF
EMPLOY‘FR`SERVICES DIVISION
PUBLFCtMPLOYEES' RETIREMENT SYSTEM
day of
ITY COUNCIL
ITY OF WEST COVINA
BY
PRESIDING OFFICER
Witness Date ,
Attest: r "-N
• y
Clerk
AMENDMENT ER# 630
PERS-CON-702A