HomeMy WebLinkAboutReso 120-16 Fire Dept PreFunding OPEB RESOLUTION NO. 120 - 16
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING THE AGREEMENT REGARDING PRE-FUNDING OF
OPEB LIABILITY BETWEEN ALAMEDA COUNTY FIRE DEPARTMENT
AND CITY OF DUBLIN
WHEREAS, Alameda County Fire Department (ACFD) has provided contractual fire and
emergency response services to City since July 1, 1997; and
WHEREAS, on June 19, 2012 the City Council adopted Resolution No. 119-12 which
approved a 20-year agreement with Alameda County Fire Department for fire services; and
WHEREAS, the City acknowledges that ACFD has incurred an obligation to fund a retiree
healthcare (Other Post-Employment Benefits, or "OPEB") plan for certain of its employees
assigned to provide services in the City since ACFD first began providing services to the City;
and
WHEREAS, ACFD has entered into a contract with California Public Employees'
Retirement System (CaIPERS) to join the California Employers' Retiree Benefit Trust (CERBT),
for the purpose of prefunding its liability, and the City acknowledges receiving a copy of said
contract; and
WHEREAS, ACFD has arranged with CaIPERS to establish trust sub-accounts for each
ACFD contract agency, providing each contracting agency a mechanism for pre-funding its
OPEB obligations independently; and
WHEREAS, on November 6, 2012, City Council authorized the City Manager to enter into
an agreement with ACFD regarding the calculation and funding of the City's fair share of ACFD's
OPEB liability, and authorized an initial contribution of $6.487 million from the General Fund
Reserve for Fire OPEB Liabilities; and
WHEREAS, ACFD has provided the City of Dublin with an Actuarial Valuation of
ACFD's Retiree Medical Benefit Obligations for Fiscal Year 2015-16 which reports the
estimated City share of ACFD's Unfunded Actuarial Accrued Liability to be $10.878
million; and
WHEREAS, the City General Fund Reserve for Fire OPEB Liabilities has a balance of
$9.196 million as of June 30, 2015, from which the City Council will direct Staff to contribute
an amount to the City's sub-account of ACFD's CERBT trust; and
WHEREAS, the City Council has been supportive of prudent fiscal management that
includes identification of potential liabilities and careful planning to finance liabilities over time;
and
WHEREAS, the CaIPERS Trust offer the City the opportunity to have funds designated
for Fire retiree benefits to be professionally managed and invested in a manner consistent with
the long term nature of retiree benefits.
Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby approves the agreement (attached hereto as Exhibit A) with Alameda County Fire
Department.
BE IT FURTHER RESOLVED that the Mayor is authorized to execute the agreement
substantially in the form Attached to Exhibit A.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute additional
documents and to take such other and further action, as necessary and appropriate to carry out
the Intent of this Resolution.
PASSED,APPROVED AND ADOPTED this 21st day of June 2016, by the following vote:
AYES: Councilmembers Biddle, Hart, Wehrenberg, and Mayor Pro Tern Gupta
NOES: None
ABSENT: Mayor Haubert
ABSTAIN: None
Mayor Pro Tern
ATTEST:
I�
•L�-■".1. ■ A. _ f
l - City Clerk / /
Reso No. 120-16,Adopted 6-21-16, Item 8.2 Page 2 of 2
(yob 15
AGREEMENT AND ELECTION OF
rNAME 11u \�"C OF EMPLOYER)
TO PREFUND OTHER POST EMPLOYMENT
BENEFITS THROUGH CALPERS
WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the
Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for
annuitants (Prefunding Plan); and
WHEREAS (2) The California Public Employees' Retirement System (CaIPERS)
Board of Administration (Board) has sole and exclusive control and power over the
administration and investment of the Prefunding Plan,the purposes of which include,
but are not limited to (i) receiving contributions from participating employers and
establishing separate Employer Prefunding Accounts in the Prefunding Plan for the
performance of an essential governmental function (ii) investing contributed amounts
and income thereon, if any, in order to receive yield on the funds and (iii) disbursing
contributed amounts and income thereon, if any, to pay for costs of administration of
the Prefunding Plan and to pay for health care costs or other post employment
benefits in accordance with the terms of participating employers' plans; and
WHEREAS (3) C '--1,.... .=--(NAME,,�O1 EMPLOYER)
(Employer) is a contracting agency under the Public Employees' Medical and Hospital
Care Act (PEMHCA) administered by the Board, and desires to participate in the
Prefunding Plan upon the terms and conditions set by the Board and as set forth
herein; and
WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval
by the Board and (ii) filing a duly adopted and executed Agreement and Election to
Prefund Other Post Employment Benefits (Agreement) as provided in the terms and
conditions of the Agreement; and
WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an
essential governmental function within the meaning of Section 115 of the Internal
Revenue Code as an agent multiple-employer plan as defined in Governmental
Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation
of single-employer plans, with pooled administrative and investment functions;
NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY
MAKES,THE FOLLOWING REPRESENTATION AND WARRANTY AND THAT
THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND
CONDITIONS:
A. Representation and Warranty
Employer represents and warrants that it is a political subdivision of the State of
California or an entity whose income is excluded from gross income under Section 115
(1)of the Internal Revenue Code.
B. Adoption and Approval of the Agreement: Effective Date: Amendment
(1) Employer's governing body shall elect to participate in the Prefunding Plan by
adopting this Agreement and filing with the CaIPERS Board a true and correct original
or certified copy of this Agreement as follows:
Filing by mail, send to: CalPERS Employer Services Division
P.O. Box 942709
Sacramento, CA 94229-2709
Filing in person, deliver
to: Ca1PERS Mailroom
Attn: Employer Services
Division 400 Q Street
Sacramento, CA 95814
(2) Upon receipt of the executed Agreement, and after approval by the Board, the Board
shall fix an effective date and shall promptly notify Employer of the effective date of the
Agreement.
(3) The terms of the Agreement may be amended only in writing upon the agreement
of both CaIPERS and Employer, except as otherwise provided herein. Any such
amendment or modification to the Agreement shall be adopted and executed in the
same manner as required for the Agreement. Upon receipt of the executed amendment or
modification, the Board shall fix the effective date of the amendment or modification.
(4) The Board shall institute such procedures and processes as it deems necessary to
administer the Prefunding Plan, to carry out the purposes of the Agreement, and to
maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such
procedures and processes.
O' Oh r6-
C. Actuarial Valuation and Employer Contributions
(1) Employer shall provide to the Board an actuarial valuation report on the basis of the
actuarial assumptions and methods prescribed by the Board. Such report shall be for the
Board's use in financial reporting and shall be:
(a) prepared and signed by a fellow or associate of the Society of Actuaries
who is also a member of the American Academy of Actuaries or a person
with equivalent qualifications acceptable to the Board;
(b) prepared in accordance with generally accepted actuarial practice and
GASB Statement Nos. 43 and 45; and,
(c) provided to the Board prior to the Board's acceptance of contributions for
the valuation period or as otherwise required by the Board.
(2) The Board may reject any actuarial valuation report submitted to it, but shall not
unreasonably do so. In the event that the Board determines, in its sole discretion, that the
actuarial valuation report is not suitable for use in the Board's financial statements or if
Employer fails to provide a required actuarial valuation, the Board may obtain, at
Employer's expense, an actuarial valuation that meets the Board's financial reporting
needs. The Board may recover from Employer the cost of obtaining such actuarial
valuation by billing and collecting from Employer or by deducting the amount from
Employer's account in the Prefunding Plan.
(3) Employer shall notify the Board of the amount and time of contributions
which contributions shall be made in the manner established by the Board.
(4) Employer contributions to the Prefunding Plan may be limited to the amount
necessary to fully fund Employer's actuarial present value of total projected benefits, as
that term is defined in GASB Statement No. 45, as supported by the actuarial valuation
acceptable to the Board. If Employer's contribution causes its assets in the Prefunding
Plan to exceed the amount required to fully fund projected benefits, the Board may
refuse to accept the contribution.
(5) The minimum Employer contribution shall be the lesser of$5000 or be equal to
Employer's Annual Required Contribution as that term is defined in GASB Statement
No. 45. Contributions can be made at any time following the seventh day after the
effective date of the Agreement provided that Employer has first complied with the
requirement s of Paragraph C.
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D. Administration of Accounts, Investments, Allocation of Income
(1) The Board has established the Prcfunding Plan as an agent plan consisting of an
aggregation of single-employer plans, with pooled administrative and investment
functions, under the terms of which separate accounts will be maintained for each
employer so that Employer's assets will provide benefits only under Employer's plan.
(2) All Employer contributions and assets attributable to Employer contributions shall be
separately accounted for in the Prefunding Plan (Employer's Prefunding Account).
(3) Employer's Prcfunding Account assets may be aggregated with prcfunding account
assets of other employers and may be co-invested by the Board in any asset classes
appropriate for a Section 115 Trust.
(4) The Board may deduct the costs of administration of the Prefimding Plan from the
investment income or Employer's Prefunding Account in a manner determined by the
Board.
(5) Investment income shall be allocated among employers and posted to Employer's
Prefunding Account as determined by the Board but no less frequently than annually.
(6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund
projected benefits, the Board may return such excess to Employer.
E. Reports and Statements
(1) Employer shall submit with each contribution a contribution report in the form
and containing the information prescribed by the Board.
(2) The Board shall prepare and provide a statement of Employer's Prefunding Account
at least annually reflecting the balance in Employer's Prefunding Account, contributions
made during the period and income allocated during the period, and such other
information as the Board determines.
F. Disbursements
(1) During any of the first three years following the effective date of this Agreement, no
disbursement shall be made in a fiscal year from the Prefunding Plan to Employer
unless Employer first contributes the full amount of its actuarially determined Annual
Required Contribution during that fiscal year. If during any of the first three years
following the effective date of the Agreement, Employer has contributed the full amount
of its actuarially determined Annual Required Contribution during a fiscal year,
Employer may receive disbursements not to exceed the annual premium cost for
post employment healthcare benefits and other post employment benefits paid during the same
fiscal year.
IUifl f-'
(2) Employer shall notify Ca1PERS in writing in the manner specified by Ca1PERS of
the persons authorized to request disbursements from the Prefunding Plan on behalf of
Employer.
(3) Employer's request for disbursement shall be in writing signed by Employer's
authorized representatives, in accordance with procedures established by the Board.
The Board may require that Employer certify or otherwise establish that the monies will
be used for the purposes of the Prefunding Plan.
(4) Requests for disbursements received on or after the first of a month will be
processed by the 15th of the following month. (For example, a disbursement request
received on or between March 1st and March 31st will be processed by April 15th; and
a disbursement request received on or between April 1st and April 30th will be
processed by May 15th.)
(5) Ca1PERS shall not be liable for amounts disbursed in error if it has acted upon the
instruction of an individual authorized by Employer to request disbursements. In the
event of any other erroneous disbursement, the extent of CaIPERS' liability shall be the
actual dollar amount of the disbursement, plus interest at the actual earnings rate but not
less than zero.
(6) No disbursement shall be made from the Prefunding Plan which exceeds the
balance in Employer's Prefunding Account.
G. Costs of Administration
Employer shall pay its share of the costs of administration of the Prefunding Plan, as
determined by the Board.
H. Termination of Employer Participation in Prefunding Plan
(1) The Board may terminate Employer's participation in the Prefunding Plan if:
(a) Employer gives written notice to the Board of its election to terminate;
(b) Employer ceases to be a PEMHCA participant;
(c) The Board finds that Employer fails to satisfy the terms and conditions of
the Agreement or of the Board's rules or regulations.
(2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing
reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding
Plan, except as otherwise provided below, and shall continue to be invested and accrue
income as provided in Paragraph D.
Rev. 2/7/2007 5
EXHIBIT A -RESOLUTION
(3) After Employer's participation in the Prefunding Plan terminates, Employer may not
make contributions to the Prefunding Plan.
(4) After Employer's participation in the Prefunding Plan terminates, disbursements
from Employer's Prefunding Account may continue upon Employer's instruction or
otherwise in accordance with the terms of the Agreement.
(5) After thirty-six (36) months have elapsed from the effective date of the Agreement:
(a) Employer may request a trustee to trustee transfer of the assets in
Employer's Prefunding Account. Upon satisfactory showing to the Board
that the transfer will satisfy applicable requirements of the Internal
Revenue Code and the Board's fiduciary duties, then the Board shall
effect the transfer within one hundred twenty (120) days. The amount to
be transferred shall be the amount in the Employer's Prefunding Account
as of the disbursement date and shall include investment earnings up to
the investment earnings allocation date immediately preceding the
disbursement date. In no event shall the investment earnings allocation
date precede the transfer by more than 120 days.
(b) Employer may request a disbursement of the assets in Employer's
Prefunding Account. Upon satisfactory showing to the Board that all of
Employer's obligations for payment of post employment health care
benefits and other post employment benefits and reasonable
administrative costs of the Board have been satisfied, then the Board shall
effect the disbursement within one hundred twenty (120) days. The
amount to be disbursed shall be the amount in the Employer's Prefunding
Account as of the disbursement date and shall include investment earnings
up to the investment earnings allocation date immediately preceding the
disbursement date. In no event shall the investment
earnings allocation date precede the disbursement by more than 120 days.
(6) After Employer's participation in the Prefunding Plan terminates and at such time
that no assets remain in Employer's Prefunding Account, this Agreement shall
terminate.
(7) If,for any reason, the Board terminates the Prefunding Plan, the assets in Employer's
Prefunding Account shall be paid to Employer after retention of(i) amounts
sufficient to pay post employment health care benefits and other post employment benefits
to annuitants for current and future annuitants, and (ii) amounts sufficient to pay
reasonable administrative costs of the Board.
viJZ-
(8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and if
no provision has been made by Employer for ongoing payments to pay post employment
health care benefits and other post employment benefits to annuitants for current and
future annuitants, the Board is authorized to and shall appoint a third party administrator
to carry out Employer's Prefunding Plan. Any and all costs associated with such
appointment shall be paid from the assets attributable to contributions by Employer.
(9) If Employer should breach the representation and warranty set forth in Paragraph A.,
the Board shall take whatever action it deems necessary to preserve the tax-exempt status
of the Prefunding Plan.
1. General Provisions
(1) Books and Records.
Employer shall keep accurate books and records connected with the performance of
this Agreement. Employer shall ensure that books and records of subcontractors,
suppliers, and other providers shall also be accurately maintained. Such books and
records shall be kept in a secure location at the Employer's office(s) and shall be available
for inspection and copying by CaIPERS and its representatives at any time.
(2) Audit.
(a) During and for three years after the term of this Agreement, Employer
shall permit the Bureau of State Audits, Ca1PERS, and its authorized
representatives, and such consultants and specialists as needed, at all
reasonable times during normal business hours to inspect and copy, at the
expense of Ca1PERS, books and records of Employer relating to its
performance of this Agreement.
(b) Employer shall be subject to examination and audit by the Bureau of State
Audits, Ca1PERS, and its authorized representatives, and such
consultants and specialists as needed, during the term of the Agreement and
for three years after final payment under the Agreement. Any examination
or audit shall be confined to those matters connected with the performance
of the Agreement, including, but not limited to, the costs of administering
the Agreement. Employer shall cooperate fully with the Bureau of State
Audits, Ca1PERS, and its authorized representatives, and such consultants
and specialists as needed, in connection with any examination or audit. All
adjustments, payments, and/or reimbursements determined to be necessary
by any examination or audit shall be made promptly by the appropriate
party.
Rev. 2/7/2007 7
EXHIBIT A -RESOLUTION
130101
(3) Notice.
(a) Any notice, approval, or other communication required or permitted under
this Agreement will be given in the English language and will be deemed
received as follows:
1. Personal delivery. When personally delivered to the recipient.
Notice is effective on delivery.
2. First Class Mail. When mailed first class to the last address of the
recipient known to the party giving notice. Notice is effective three
delivery days after deposit in a United States Postal Service office
or mailbox.
3. Certified mail. When mailed certified mail, return receipt requested.
Notice is effective on receipt, if delivery is confirmed by a return
receipt.
4. Overnight Delivery. When delivered by an overnight delivery
service, charges prepaid or charged to the sender's account, Notice
is effective on delivery, if delivery is confirmed by the delivery
service.
5. Telex or Facsimile Transmission. When sent by telex or fax to the
last telex or fax number of the recipient known to the party giving
notice. Notice is effective on receipt, provided that (i) a duplicate
copy of the notice is promptly given by first-class or certified mail
or by overnight delivery, or (ii) the receiving party delivers a written
confirmation of receipt. Any notice given by telex or fax shall be
deemed received on the next business day if it is received after 5:00
p.m. (recipient's time) or on a nonbusiness day.
6. E-mail transmission. When sent by e-mail using software that
provides unmodifiable proof(i) that the message was sent, (ii) that
the message was delivered to the recipient's information processing
system, and (iii) of the time and date the message was delivered to
the recipient along with a verifiable electronic record of the exact
content of the message sent.
Addresses for the purpose of giving notice are as shown in Paragraph 8.(1) of the
Agreement.
IS IC
(b) Any correctly addressed notice that is refused, unclaimed, or undeliverable
because of an act or omission of the party to be notified shall be deemed
effective as of the first date that said notice was refused, unclaimed, or
deemed undeliverable by the postal authorities, messenger or overnight
delivery service.
(c) Any party may change its address, telex, fax number, or e-mail address by
giving the other party notice of the change in any manner permitted by this
Agreement.
(d) All notices, requests, demands, amendments, modifications or other
communications under this Agreement shall be in writing. Notice shall be
sufficient for all such purposes if personally delivered, sent by first class,
registered or certified mail, return receipt requested, delivery by courier
with receipt of delivery, facsimile transmission with written confirmation
of receipt by recipient, or c-mail delivery with verifiable and unmodifiable
proof of content and time and date of sending by sender and delivery to
recipient. Notice is effective on confirmed receipt by recipient or 3
business days after sending, whichever is sooner.
(4) Modification
This Agreement may be supplemented, amended, or modified only by the mutual
agreement of the parties. No supplement, amendment, or modification of the Agreement
shall be binding unless it is in writing and signed by the party to be charged.
(5) Survival
All representations, warranties, and covenants contained in the Agreement, or in any
instrument, certificate, exhibit, or other writing intended by the parties to be a part of
their Agreement shall survive the termination of the Agreement until such time as all
amounts in Employer's Prefunding Account have been disbursed.
(6) Waiver
No waiver of a breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of the Agreement shall be effective unless it is in writing and
signed by the party waiving the breach, failure, right, or remedy. No waiver of any
breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure,
right, or remedy, whether or not similar, nor shall any waiver constitute a continuing
waiver unless the writing so specifies.
1b1
(7) Necessary Acts, Further Assurances
The parties shall at their own cost and expense execute and deliver such further
documents and instruments and shall take such other actions as may be reasonably
required or appropriate to evidence or carry out the intent and purposes of the Agreement.
A majority vote of Employer's Governing Body at a public meeting held on the
day of the month of 2007, authorized entering into the
Agreement.
Signature of the Presiding Officer:
Printed Name of the Presiding Officer:
Name of Governing Body:
Name of Employer:
Date:
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
ACTUARIAL AND EMPLOYER SERVICES BRANCH
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
To be completed by CaIPERS
The effective date of the Agreement is:
Rcv. 2/7/2007 10
AGREEMENT REGARDING PRE-FUNDING OF OPEB LIABILITY
BETWEEN
ALAMEDA COUNTY FIRE DEPARTMENT
AND
CITY OF DUBLIN
THIS AGREEMENT is made and entered into this A.'day of '° °`k . f 2016, which date
is designated for purposes of reference only, by and between the ALAMEDA COUNTY FIRE
DISTRICT ("Alameda County Fire Department" or "ACFD"), a dependent fire district formed
under the Fire Protection District Law of 1987. (Health and Safety Code Sections 13800 et seq.)
and governed by the Alameda County Board of Supervisors as its Board of Directors, and the
CITY OF DUBLIN ("City"), a municipal corporation(collectively"the Parties").
RECITALS
Definitions.
As used in this Agreement:
1. "Ca1PERS"means California Public Employees' Retirement System,
2. "Side Fund" means the City's proportionate share of the ACFD unfunded actuarial fl
accrued liability for OPEB as estimated by valuations prepared by ACFD's actuarial
consultant (e.g. June 30, 2015 GASB 45 Actuarial Valuation for Fiscal Years 2016/17
and 2017/18). The parties specifically acknowledge that the actual monetary amount of �,
the City's proportionate share is estimated by the actuarial valuations but has not yet (''
been definitively determined and that parties will negotiate in good faith to definitively
determine that amount.
3. "Normal Cost"means value of benefits earned or attributed to the current year.
4. "OPEB"means Other Post-Employment Benefits,
5. "CERBT" means California Employers' Retiree Benefit Trust administered by
Cal PERS.
WHEREAS, ACFD has provided contractual fire and emergency response services to City since
•
July 1, 1997; and
WIIEREAS, ACFD currently provides services to City pursuant to the Agreement Between the
City of Dublin and the Alameda County Fire District Regarding Fire and Emergency Response
Services, entered into on or about July 19, 2012 (the "2012 Fire Services Agreement"); and
WHEREAS,ACFD provides fire and emergency response services to other jurisdictions ("Other
Contracting Agencies")pursuant to separate contracts with those agencies; and
• 1
WHEREAS, ACFD provides its employees, including those that provide services in and/or for
City, certain post-retirement medical benefits. Pursuant to the labor agreements in effect at the
time of execution of this Agreement, to be eligible for such benefits, employees must be
employed with ACFD for at least five (5) years and must have at least twenty (20) years of
CaIPERS service credit.
WHEREAS,the 2012 Fire Services Agreement provides, at Section 5(b):
Retiree Healthcare Plan Unfunded Liability
The City acknowledges that ACFD has incurred an obligation to fund a retiree
healthcare plan for certain of its employees assigned to provide services in the
City since ACED first began providing services to the City on July 1, 1997, The
parties hereby agree to negotiate, in good faith, an agreement establishing a fair
and equitable framework whereby the City shall fund its proportionate share of
ACFD's obligation to provide a retiree healthcare plan for its employees, both
retroactively and to the extent that said obligation continues to accrue during the
term of this Agreement.
The City shall be responsible for its proportionate share of retiree health care
plan unfunded liability remaining with the ACFD plan if the contract for fire
services with ACFD is terminated.
WHEREAS, the Parties have not yet definitively negotiated an agreement "establishing a fair
and equitable framework whereby the City shall fund its proportionate share of ACFD's
obligation to provide a retiree healthcare plan for its employees," due to the complexities
involved in negotiating such an agreement. ACFD has provided the City and the Other
Contracting Agencies a methodology for allocating the unfunded liability that will serve as a
framework for those negotiations; and
WHEREAS, the ACFD's fire service agreements currently require the City and the Other
Contracting Agencies to pay a proportionate share of the medical premium costs that it pays to
current retirees, and the Parties anticipate that the agreements will continue to include such a
requirement; and
WHEREAS, ACFD has entered into a contract with Ca1PERS to join the California Employers'
Retiree Benefit Trust (CERBT), for the purpose of prefunding its liability, and City
acknowledges receiving a copy of said contract; and
WHEREAS, ACFD and Ca1PERS have created sub-accounts within ACFD's trust account for
the purpose of allowing each contracting agency a mechanism for pre-funding its OPEB
obligations independent of the pre-funding choices of the other agencies; and
2
WHEREAS, the Parties desire that City have the option to prefund its proportionate share of
ACFD's OPEB obligation using the CERBT sub-account established for City; and
WHEREAS, the Parties expect, but do not represent or warrant, that pref coding will reduce the
long term OPEB obligation and lead to an OPEB cost that, over time, is more Ievel as a
percentage of payroll, due to the higher investment returns expected (but not guaranteed) from a
Trust; and
WHEREAS, an agency's pre-funding contributions will benefit only that agency and will not
subsidize the retiree medical benefits of any other agency.
AGREEMENT
I. The foregoing recitals are true and correct,
2. City may pre-fund its proportionate share of ACFD's OPEB liability by contributing to the
sub-account designated for City within the ACFD CERBT. Until such time as its share of
ACFD's OPEB liability has been definitively allocated, City may pre-fund its sub-account
up to the amount of its then current Side Fund, Any such pre-funding shall be in accordance
with this Agreement. The yearly calculation used to calculate the City's Side Fund is as
follows:
Beginning of Year Side Fund Balance
+Allocated Portion of the full Pre-Funding Normal Cost
-Allocated Benefit Payments
+Allocated(Gains)/Losses
+Interest to the End of the Year
End of Year Agency Side Fund Balance
3. No portion of City's CERBT sub-account balance will be used to offset any other agency's
side fund balance. To the extent any Other Contracting Agency pre-funds its side fund using
the CERBT, its contributions will go into its individual CERBT sub-account and will offset
its proportionate share of ACFD's OPEB liability.
4. Access, Administration and Disbursements.
a. ACFD will make reasonable efforts to ensure that CaIPERS provides online access for
City to view its sub-account activity. City shall be responsible for providing the
necessary information and authority to allow CaIPERS to provide such access.
h. City will be responsible for the cost of administration and maintenance of its subaccount,
which cost will be deducted from City's sub-account and reflected on City's quarterly
statements.
c. City may elect to have disbursements made from its sub-account to satisfy obligations it
otherwise has to pay ACFD for costs that can be funded with disbursements from the
account,
3
d. Notwithstanding paragraph 4.c., City cannot withhold payment(s) due pursuant to the
2012 Fire Services Agreement in reliance on making withdraw request(s)from Ca1PERS
through ACFD or pending a disbursement from the sub-account.
e. City shall make all deposits and disbursement requests through ACFD. City shall submit
its requests for deposits and disbursements in writing signed by City's authorized
representative to ACFD. City will make the check payable to CERBT. ACFD will
submit City's requests to Ca1PERS within 15 business days. City acknowledges that at
least 2 months of turnaround time may be required for its requested deposits or
disbursements to be finalized and reflected in the sub-account. ACFD will reimburse the
City within 15 business days the receipt of the disbursement from CERBT.
f. No disbursement shall be made from the sub-account if the sub-account has an
insufficient balance for such disbursements.
g. Disbursement cannot exceed the annual premium and other costs of post-employment
healthcare benefits and OPEB as defined in GASB 43.
h. ACFD shall not be liable for amounts disbursed in error if it has acted upon written
instructions of an individual authorized by the City to request disbursement. If ACFD
makes a disbursement in error, it will correct the amount by reconciling the following
quarter's payment.
i. ACFD shall promptly provide information to City regarding any changes to the
retirement status of ACFD employees. City is responsible for identifying disbursement
eligible items. ACFD will provide City with data requested by City to assist City in its
efforts to identify disbursement eligible expenditures.
5. Mutual Indemnification. The following mutual indemnification is entered into between
ACFD and the City. For purposes of this Section, references to ACFD or the City shalt
include the public entity, all of its current and past employees and managers, all elected or
appointed officials, all constituent departments, committees, successors, subsidiaries, related
entities, independent contractors, attorneys, agents, and assigns.
Except as otherwise specifically provided in this Agreement or any attachment hereto ACFD
shall defend, indenmify, and hold harmless the City from and against any and all claims,
losses, damages, liabilities, and expenses, including but not limited to attorneys' fees, based
or asserted upon any act or omission of ACFD in connection with or arising out of the
performance by ACFD of this Agreement and with regard to any alleged illegality or
unconstitutionality of a County ordinance.
Except as otherwise specifically provided in this Agreement or any attachment hereto, the
City shall defend, indemnify, and hold harmless ACFD from and against any and all claims,
losses, damages, liabilities, and expenses, including but not limited to attorneys' fees, based
or asserted upon any act or omission of City, in connection with or arising out of the
performance by City of this Agreement and with regard to any alleged illegality or
unconstitutionality of a City ordinance,
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6. Notices. All notices required or permitted hereunder shall be deemed sufficiently given if
delivered by hand or mailed, by United States mail, postage prepaid, certified or registered
mail, addressed to the Patties at the addresses set forth below or to such other address as
may, from time to time to designated in writing.
Alameda County Fire Department City of Dublin
Alameda County Fire Chief City Manager
6363 Clark Avenue 100 Civic Plaza
Dublin, CA 94568 Dublin, CA 94568
7. Term. The term of this contract is from the date first written above until 11:59 p.m. on June
30, 2032, unless sooner terminated in accordance with the provisions herein.
8. Termination. This Agreement may be terminated effective June 30 of any fiscal year, by
mutual agreement of the parties, by giving written notice of termination to the other party
not later than September 1 of the same fiscal year.
9. Transfer of Sub-account in Event of Transfer ACFD Employees to City or Another Agency.
The parties acknowledge the possibility that City could itself provide fire service or contract
with another entity for the provision of fire service, in which case it is likely that certain
ACFD employees would transfer to City or to the other entity. In such event, the Parties
agree to negotiate in good faith an allocation of the ACFD unfunded actuarial accrued
liability for OPEB that will be assumed by the City or another entity for the provision of fire
service. In such event, ACFD agrees to transfer to the City's trust account any excess assets
in the City's CERBT sub-account (i.e., those funds that remain after available funds have
been applied to the portion of the City's proportionate share of the unfunded actuarial
accrued liability that remains with ACFD). ACFD shall cease allocating unfunded liability
to the City following such an event if the City fully funds its proportionate share of ACFD's
OPEB liability and the excess assets held in the City's sub-account have been transferred to
the City.
10. Survival. The obligations of this Agreement, which by their nature would continue beyond
the termination on expiration of the Agreement, shall survive termination or expiration.
11. Severability. If a court of competent jurisdiction holds any provision of this Agreement to
be illegal, unenforceable, or invalid in whole or in part for any reason, the validity and
enforceability of the remaining provisions, or portions of them, will not be affected, unless
an essential purpose of this Agreement would be defeated by the loss of the illegal,
unenforceable, or invalid provision.
12. Modification. This Agreement may be supplemented, amended or modified only by a
writing signed by both parties.
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13. Waiver. No waiver of any breach, failure, right, or remedy under this agreement shall be
deemed a waiver of any other breach, failure, right or remedy, nor shall any waiver
constitute a continuing waiver unless so specified in a writing signed by both parties.
14, Further Obligations. The parties recognize that this Agreement cannot represent a complete
expression of all issues, which may arise during the performance of the Agreement,
Accordingly, ACED and City agree to meet and confer in good faith over any issue not
expressly described herein to the end that the City will retain the option of pre-funding its
share of ACFD's OPEB obligation in accordance with applicable laws, regulations, and
accounting standards.
15. Signatory. By signing this agreement, signatory warrants and represents that he/she
executed this Agreement in his/her authorized capacity and that by his/her signature on this
Agreement,he/she or the entity upon behalf of which he/she acted, executed this Agreement.
[SIGNATURES FOLLOW ON NEXT PAGE]
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ALAMEDA COUNTY FIRE DISTRICT Approved as to form Donna R, Ziegler,
County Counsel:
By By:
Scott Haggerty, President - Heather Littlejohn,
Board of Directors Deputy County Counsel
ATTEST: Clerk, Board of Supervisors Alameda County, California I hereby certify under penalty of
perjury that the President of the Board of Supervisors was duly authorized to execute this document on
behalf of the County of Alameda by a majority vote of the Board on i .� ;%Li rc',
2016
By e _ a _.x ,� � Date. •
CITY OF DUBLIN
By: • Date:
David Haubert, Mayor
Attest:
Caroline P. Soto, City Clerk
Approved as to form and legality:
John Bakker,
City Attorney
1 14,1001 2515479.6
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