HomeMy WebLinkAboutReso 38-23 Approving an Agreement between the City of San Ramon and the City of Dublin regarding Dougherty Regional Fire Authority Additional Discretionary Employer Contributions to CalPERSDocuSign Envelope ID: BD0342AA-8DCB-4ADF-ACFC-A697DCEF3399
RESOLUTION NO. 38 — 23
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AN AGREEMENT BETWEEN THE CITY OF SAN RAMON AND THE CITY OF
DUBLIN REGARDING DOUGHERTY REGIONAL FIRE AUTHORITY ADDITIONAL
DISCRETIONARY EMPLOYER CONTRIBUTIONS TO CALPERS
WHEREAS, Dublin and San Ramon are the sole members of a joint powers authority,
formed under the Joint Exercise of Powers Act (Government Code §§6500-6599.3), known as
the Dougherty Regional Fire Authority ("DRFA" or the "Authority"). It was formed to provide fire
services within the two cities and is a participant in the California Public Employee Retirement
System ("CalPERS"); and
WHEREAS, effective June 30, 1997, San Ramon and Dublin began steps to transfer the
responsibility for fire service from the Authority to the two cities and wind up the affairs of DRFA.
In furtherance of that effort, they entered into that certain Second Amendment to Dougherty
Regional Fire Authority Joint Exercise of Powers Agreement, dated June 24, 1997; and
WHEREAS, since that time, the Parties have continued to contribute funds to manage the
Authority's contractual obligations, including, but not limited to, its contract with CalPERS for the
Safety Plan of the Dougherty Regional Fire Authority (CalPERS ID: 1047451387) (the "Plan");
and
WHEREAS, annually, CalPERS delivers to the Authority a determination of the Plan's
"minimum required employer contribution" (the "Annual Minimum") for the subsequent fiscal year,
which is accompanied by the actuarial valuation report for the previous fiscal year; and
WHEREAS, in prior years, the Parties have by agreement allocated the Annual Minimum
as follows: Dublin, 57.51 % and San Ramon, 42.49%; and
WHEREAS, DRFA's Annual Minimum is determined by the CalPERS actuary based on,
among other things, the Plan's Unfunded Accrued Liability ("UAL"), and CalPERS allows
agencies to make "additional discretionary payments" or "ADPs" as a means of reducing the
UAL (by funding that which was previously unfunded); and
WHEREAS, Dublin desires to make an ADP as a means of reducing its future required
contributions, and Dublin's contribution would reduce the Authority's UAL and thereby its future
Annual Minimum. The Parties agree that the contributing party should exclusively benefit from
making any ADP; and
WHEREAS, Dublin retained an actuarial consultant that prepared a report (the "Actuarial
Report") to determine how the allocation of the Annual Minimum for the 2023-2024 fiscal year
should be altered if Dublin makes an ADP of $3,460,000 prior to July 1, 2023 and to determine
how the Annual Minimum allocation should be calculated in future years; and
WHEREAS, the parties desire to enter into this Agreement to specify how Annual
Minimums will be adjusted based on Dublin's currently proposed ADP and future ADPs.
Reso. No. 38-23, Item 4.3, Adopted 05/16/2023 Page 1 of 2
DocuSign Envelope ID: BD0342AA-8DCB-4ADF-ACFC-A697DCEF3399
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the Agreement between the City of San Ramon and the City of Dublin regarding
the Dougherty Regional Fire Authority.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the
agreement and make any non -substantive changes to carry out the intent of this Resolution.
PASSED, APPROVED AND ADOPTED this 16th day of May 2023, by the following vote:
AYES: Councilmembers Josey, McCorriston, Qaadri and Mayor Hernandez
NOES:
ABSENT: Councilmember Hu
ABSTAIN:
ATTEST:
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Reso. No. 38-23, Item 4.3, Adopted 05/16/2023 Page 2 of 2
DocuSign Envelope ID: BD0342AA-8DCB-4ADF-ACFC-A697DCEF3399
Exhibit A
AGREEMENT BETWEEN THE CITY OF SAN RAMON AND THE CITY OF DUBLIN
REGARDING DOUGHERTY REGIONAL FIRE AUTHORITY ADDITIONAL
DISCRETIONARY EMPLOYER CONTRIBUTIONS TO CALPERS
This Agreement ("Agreement") is made and entered into as of May 16, 2023, by and
between the City of Dublin ("Dublin") and the City of San Ramon ("San Ramon"). Dublin and
San Ramon are referred to collectively as the Parties.
RECITALS
WHEREAS, Dublin and San Ramon are the sole members of a joint powers authority,
formed under the Joint Exercise of Powers Act (Government Code §§6500-6599.3), known as
the Dougherty Regional Fire Authority ("DRFA" or the "Authority"). It was formed to provide
fire services within the two cities and is a participant in the California Public Employee
Retirement System ("CalPERS").
WHEREAS, effective June 30, 1997, San Ramon and Dublin began steps to transfer the
responsibility for fire service from the Authority to the two cities and wind up the affairs of
DRFA. In furtherance of that effort, they entered into that certain Second Amendment to
Dougherty Regional Fire Authority Joint Exercise of Powers Agreement, dated June 24, 1997.
WHEREAS, since that time, the Parties have continued to contribute funds to manage the
Authority's contractual obligations, including, but not limited to, its contract with CalPERS for
the Safety Plan of the Dougherty Regional Fire Authority (CalPERS ID: 1047451387) (the
"Plan").
WHEREAS, annually, CalPERS delivers to the Authority a determination of the Plan's
"minimum required employer contribution" (the "Annual Minimum") for the subsequent fiscal
year, which is accompanied by the actuarial valuation report for the previous fiscal year.
WHEREAS, in prior years, the Parties have by agreement allocated the Annual Minimum
as follows: Dublin, 57.51% and San Ramon, 42.49%.
WHEREAS, DRFA's Annual Minimum is determined by the CalPERS actuary based on,
among other things, the Plan's Unfunded Accrued Liability ("UAL"), and CalPERS allows
agencies to make "additional discretionary payments" or "ADPs" as a means of reducing the
UAL (by funding that which was previously unfunded).
WHEREAS, Dublin desires to make an ADP as a means of reducing its future required
contributions, and Dublin's contribution would reduce the Authority's UAL and thereby its
future Annual Minimum. The Parties agree that the contributing party should exclusively benefit
from making any ADP.
WHEREAS, Dublin retained an actuarial consultant that prepared a report (the "Actuarial
Report") to determine how the allocation of the Annual Minimum for the 2023-2024 fiscal year
should be altered if Dublin makes an ADP of $3,460,000 prior to July 1, 2023 and to determine
how the Annual Minimum allocation should be calculated in future years.
DocuSign Envelope ID: BD0342AA-8DCB-4ADF-ACFC-A697DCEF3399
WHEREAS, the parties desire to enter into this Agreement to specify how Annual
Minimums will be adjusted based on Dublin's currently proposed ADP and future ADPs.
NOW, THEREFORE, the parties agree as follows:
1. Dublin 2022-2023 Additional Discretionary Payment; 2023-2024 Annual Minimum.
Dublin intends to make a $3,460,000 ADP prior to June 30, 2023, and it will notify
CalPERS two weeks in advance, in accordance with CalPERS requirements. Provided that it
does so, the Parties' respective shares of the 2023-2024 Annual Minimum shall be Dublin,
39.08%, and San Ramon, 60.92%.
2. Determination of Future Annual Minimums.
The Parties' respective shares shall be adjusted (a) annually based upon the CalPERS
Annual Valuation Report, (b) whenever either Party makes an ADP, and (c) when a Party
requests, and the other Party agrees, to make an adjustment based on CalPERS's interim
investment results using CalPERS's spreadsheet or other tool provided by CalPERS. The
adjustment shall be made using the methodology used in the Actuarial Report or such
methodology agreed upon by the parties.
3. Potential Future Additional Discretionary Payments
Either Party may elect in the future to make ADPs, and, if they do so, the Parties'
respective shares of the next scheduled Annual Minimum shall be adjusted using the
methodology used in the Actuarial Report or such methodology agreed upon by the parties.
4. Effective Date And Term
This Agreement shall become effective as of [date] and shall remain in effect until
terminated by either party upon written notice to the other party.
5. Entire Agreement
This Agreement contains the entire agreement between the parties relating to the subject
matter hereof and supersedes all prior agreements and understandings, whether written or oral.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
State of California.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.
DocuSign Envelope ID: BD0342AA-8DCB-4ADF-ACFC-A697DCEF3399
CITY OF SAN RAMON CITY OF DUBLIN
OocuSigned by:
By. 33AF5F69CF5F472
Name: Steven Spedowfski
Its: Interim City Manager
5341148.2
By:
Name: Linda Smith
Its: City Manager