Contra Costa County Employees' Retirement Association ("CCCERA") Request for Proposals to Provide Legal Counsel For Labor and Employment

Contra Costa County Employees' Retirement Association ("CCCERA") Request for Proposals to Provide Legal Counsel For Labor and Employment The Contra Costa County Employees' Retirement Association ("CCCERA") invites proposals from experienced attorneys and law firms in response to this Request for Proposals ("RFP") to provide legal counsel for labor and employment matters to CCCERA. CCCERA intends to select one or more attorneys or law firms as approved labor and employment legal services providers, subject to the number and quality of the responses to this RFP and CCCERA's assessment of its needs for labor and employment legal counsel. SECTION I BACKGROUND CCCERA is a contributory defined benefit pension plan covering the employees of the County of Contra Costa and other participating agencies pursuant to the County Employees Retirement Law of 1937, California Government Code Section 31450, et seq. CCCERA was established on July 1, 1945, to provide retirement allowances and other benefits to the safety and general members employed by Contra Costa County. Currently, Contra Costa County and 16 other participating agencies are members of CCCERA. The participating agencies include: Bethel Island Municipal Improvement District Byron, Brentwood, Knightsen Union Cemetery District Central Contra Costa Sanitary District Contra Costa County Employees' Retirement Association Contra Costa Housing Authority Contra Costa Mosquito and Vector Control District First 5 - Children & Families Commission In-Home Supportive Services Authority (IHSS) Local Agency Formation Commission (LAFCO) Rodeo Sanitary District Superior Courts of Contra Costa County Contra Costa Fire Protection District East Contra Costa Fire Protection District Moraga-Orinda Fire Protection District Rodeo-Hercules Fire Protection District San Ramon Valley Fire Protection District

In addition, CCCERA administers retirement, disability, or survivor benefits to retirees or beneficiaries of the following former participating agencies: Alamo-Lafayette Cemetery District City of Pittsburg Delta Diablo Sanitation District Diablo Water District Ironhouse Sanitary District Kensington Fire Protection District Superintendent of Schools - Contra Costa County Office of Education Stege Sanitary District CCCERA is an independent governmental entity separate and distinct from the County of Contra Costa. CCCERA is governed and managed by a 12 member Board of Retirement. Of the twelve members, three are alternates, one for the appointed members, one for safety, and one for retirees. Five Board members are appointed by the Contra Costa County Board of Supervisors, one as an alternate. Four Board members, including the safety alternate, are elected by CCCERA's active membership. Two Board members are elected by the retirees, one as an alternate. The County Treasurer serves as an ex-officio member. Board members, with the exception of the County Treasurer, serve three year terms in office, with no term limits. Pursuant to Senate Bill 673, which was approved by the Governor on August 22, 2014, effective January 1, 2015, CCCERA will become the direct employer for its entire staff, including both represented and unrepresented staff members. CCCERA will be a public agency for purposes of the Meyers-Milias-Brown Act, effective January 1, 2015. A copy of SB 673 is attached. CCCERA's current staff includes 15 unrepresented and 39 represented positions. United Clerical, Technical & Specialized Employees AFSCME, LOCAL 2700 represents 33 CCCERA staff positions. Professional and Technical Engineers IFPTE, Local 21 represents 6 staff positions. CCCERA's current membership includes approximately 10,000 active and deferred members and approximately 8,500 retired members. Net current plan assets total approximately $6.7 billion. SECTION II SCOPE OF SERVICES CCCERA intends to select one or more attorneys and/or law firms as approved labor and employment legal services providers. The attorneys and firms selected will have demonstrable qualifications as follows: a) Experience and expertise in the practice of federal and state law, most specifically in those matters most often encountered in California public sector Page 2

employment, particularly those related to labor relations under the Meyers-Milias- Brown Act, Government Code Section 3500, et seq.; b) Current membership in the State Bar of California and admitted to practice in all Federal and State Courts in California; c) Capability and availability to perform legal services promptly and in a manner that permits CCCERA's administration to meet established deadlines, to act expeditiously in employee relations matters, and to operate in an effective and efficient manner; d) Experience with training and education of public sector management in subject matters such as labor relations and collective bargaining, FMLA, FLSA, etc. e) Excellent verbal and written communication skills; and f) Cost effectiveness. SECTION III CONTRACT PERIOD The term of the retainer agreement will be for a three year period. CCCERA may, in its sole discretion, terminate the contract at any time during that term. CCCERA may, in its sole discretion issue up to two one year extensions of the retainer. CCCERA makes no representation as to the amount of labor and employment legal work, if any, that may be given to any approved provider during the contract period. SECTION IV GENERAL INFORMATION No Contact No contact with CCCERA Board members, CCCERA General Counsel, and other CCCERA staff regarding the contents of this RFP will be allowed during the pendency of this RFP. Due Date Seven printed copies of your proposal and one CD or thumb drive containing electronic copies of all submitted documents are due no later than 5:00 p.m. on October 3, 2014, in a sealed package or packages. All proposals must be delivered to: CCCERA 1355 Willow Way Suite 221 Concord CA 94520 Attention: Gail Strohl Page 3

No Reimbursement For RFP Expenses CCCERA will not provide reimbursement for any fees, expenses, or other costs incurred in connection with this RFP including the costs of preparing the response, providing any additional information and attending an interview or interviews. All material submitted in response to this RFP will become the sole property of CCCERA. CCCERA expressly reserves the right to utilize any and all ideas submitted in the proposals received unless covered by legal patent or proprietary rights. Interviews Interviews may be conducted at CCCERA's discretion. All attorneys and firms selected for interview will be notified of the interview date(s) at least one week in advance. Confidentiality All responses to this RFP become the property of CCCERA and will be kept confidential until such time as a recommendation for award of a retainer agreement has been announced. Thereafter, submittals are subject to public inspection and disclosure under the California Public Records Act. If a respondent believes that any portion of its submittal is exempt from public disclosure, such portion may be marked "confidential." CCCERA will use reasonable and legally permissible means to ensure that such confidential information is safeguarded to the extent that CCCERA, in its independent judgment, concludes that the information is in fact exempt from disclosure, but CCCERA will not be liable for inadvertent disclosure of such materials, data and information. Proposals marked "confidential" in their entirety will not be honored and CCCERA will not deny public disclosure of all or any portion of submittals so marked. By submitting information with portions marked "confidential", the respondent represents it has a good faith belief that such material is exempt from disclosure under the California Public Records Act and agrees to reimburse CCCERA for, and to indemnify, defend and hold harmless CCCERA, its officers, fiduciaries, employees and agents from and against: (a) any and all claims, damages, losses, liabilities, suits, judgments, fines, penalties, costs and expenses including, without limitation, attorneys' fees, expenses and court costs of any nature whatsoever (collectively, "Claims") arising from or relating to CCCERA's non-disclosure of any such designated portions of a proposal if disclosure is deemed required by law or court order. Page 4

SECTION V PROPOSAL REQUIREMENTS Following is a list of the information to be provided. A proposal that does not include the information required below may be deemed non-responsive and subject to rejection. In setting forth its qualifications, each attorney and or law firm shall provide, in concise but adequate detail, the information sought below. Responses shall be limited to 10 single-sided pages (not including resumes or attorney bios). 1. Name, address, telephone number, fax number and e-mail address of attorney/firm. 2. Name of contact person and telephone number for purposes of following up on the proposal. 3. Description of the firm, including the size of the firm, the size of the firm's labor and employment law staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of the professional staff to be employed in this engagement. 4. Narrative about the history of the firm, including date of inception, experience with local California public sector, state and federal labor and employment law. 5. State the names of the attorneys who would be assigned to CCCERA and provide their resumes. Identify the attorney in charge and, for this attorney, provide three client references relating to engagements similar to the one described in this RFP. Include agency or municipality name, person to contact, address and telephone number. 6. Narrative of the qualifications of the person(s) proposed to work with CCCERA, including but not limited to: a) Legal training, years of practice, area of specialization (include date of admittance to the California Bar); b) Years of public and private sector employment law practice; c) Litigation and arbitration experience and demonstration of a satisfactory track record; d) Identify any professional affiliations; e) Detail experience and expertise in labor and employment matters, including but not limited to the following areas: Labor contract interpretation and administration Labor and employment law consultation and advice Collective bargaining Mediation/Arbitration Fact-finding Unfair labor practices Bargaining unit clarification/modification/decertification Page 5

Representation in matters of employment law (Courts, Public Employment Relations Board, Department of Labor, arbitrations, etc.) Labor strategizing with public management and/or governing body 7. Identify the accessibility of the proposed designated lead Attorney, and the response time that the individual would offer to CCCERA. 8. State whether the firm, its officers, partners, principals, agents, or employees, that are expected to perform services under this RFP, have been disciplined, admonished, warned, or had any license, registration, charter, certification, or any similar authorization to engage in the legal profession suspended or revoked for any reason. 9. Has the firm been disqualified or terminated by any public agency or County? If so please explain under what circumstances this disqualification or termination occurred. 10. Identify the nature of any potential conflict of interest your firm might have in providing services to CCCERA. Also specifically state whether your firm has ever represented the County of Contra Costa, the Board of Supervisors for the County of Contra Costa, any of the CCCERA participating agencies listed on pages 1 and 2 of this RFP, and/or any employee groups or employee associations within CCCERA. If so, state the name of each such client, the nature of your representation and the time frame of your representation. 11. Identify any past, pending or threatened litigation or administrative or state ethics board or similar body proceedings to which you, your firm or any of your partners are a party and which would either materially impair your ability to perform the services enumerated herein and for which this RFP is issued or, if decided in an adverse manner, materially adversely affect the financial condition of your firm. Rates, Costing and Billing Information Proposer billing rates are fixed for the three year initial term of the contract. Proposals shall contain the following: 1. State the rates at which the services of attorneys or other paraprofessionals would be provided to CCCERA for the next three years. Include: a. For each attorney whose resume is provided please list the standard hourly rate for this provider and the hourly rate you propose to charge CCCERA. Page 6

b. Please note that CCCERA expects not to pay for travel time unless substantive work takes place during the travel time. Please address if and how travel time will be billed by all providers. 2. In addition, each proposer may propose any alternative fee structure deemed appropriate as a supplement to the fees requested above. 3. State any special considerations with respect to billing or payment of fees and expenses that your firm offers and that you believe would differentiate it from other Proposers and make your firm's services more cost effective to CCCERA. 4. CCCERA expects to receive the lowest rate charged by your firm for its governmental and/or non-profit clients. If for any reason your firm is not prepared to do so, please indicate your reasons. SECTION VI EVALUATION AND SELECTION Evaluation Criteria CCCERA will evaluate the proposals and make a recommendation to the full CCCERA Board for approval. The Selectors will consider the following factors: 1. Experience and expertise in the practice of federal and state law, most specifically in those matters most often encountered in California public sector employment, particularly those related to labor relations under the Meyers-Milias-Brown Act. 2. Experience with training and education of public sector management in subject matters such as labor relations and collective bargaining, FMLA, FLSA, etc. 3. Quality and depth of expertise and prior capability in providing similar services. 4. Capability and availability to perform legal services promptly and in a manner that permits CCCERA's administration to meet established deadlines, to act expeditiously in employee relations matters, and to operate in an effective and efficient manner 5. Anticipated cost of legal services and disbursements, including such factors as hourly rates, discounts, creative alternate fee arrangements and cost-effectiveness 1. 1 Although proposed fees will be given significant weight in the selection process, CCCERA reserves the right to negotiate with any firm selected, lower fees or a different fee structure. Page 7

6. Information provided by client references. 7. Interviews, if conducted. 8. Overall organization, completeness, and quality of proposal, including cohesiveness, conciseness, and clarity of response. Selection Process CCCERA will initially review all proposals to determine responsiveness. Any proposal that does not address all requested requirements or is incomplete will be rejected. CCCERA will evaluate all responsive proposals based on the criteria stated above. Reviewers may afford firms the opportunity to clarify proposals for the purpose of assuring a full understanding of their responsiveness to the RFP. CCCERA may conduct interviews with Proposers found to be most qualified to perform the services required, based upon the criteria listed in this RFP. If so, Proposers will be notified in advance of the proposed interview date. All Proposers will be notified in writing once one or more firms have been selected. SECTION VII PROPOSAL INSTRUCTIONS AND CONDITIONS 1. This RFP does not commit CCCERA to award a contract, pay any costs incurred in the preparation of a response, or procure or contract for services of any kind whatsoever. CCCERA reserves the right, in its sole discretion, to negotiate with any or all firms considered, or to cancel this RFP in whole or in part. 2. Proposers may be requested to clarify the contents of their proposal. 3. A proposing firm may be required to participate in negotiations and to submit hourly fee, price, costing, technical or other revisions to its proposal which may result from such negotiations. 4. All material submitted in response to this RFP will become the sole property of CCCERA. Proposal Submission Proposals must include a cover letter indicating the mailing address of the office from which the proposal is submitted, the name of the individual who will represent the firm as the primary contact person for the proposal, and the telephone, fax and e-mail information of the primary contact person. Page 8

Administrative Specifications 1. All proposals must be irrevocable for 180 days and signed by an authorized officer of the firm. 2. Successful Proposers must agree to provide CCCERA with audit access on request during the term of the contract and for 7 years thereafter. 3. CCCERA at any time, in its sole discretion, may terminate its contract with the selected firm(s), or postpone or delay all or any part of the contract, upon written notice to the selected firm(s). SECTION VIII CONTRACT APPROVAL CCCERA's selection of one or more successful Proposer(s) shall not be binding until it has been approved by CCCERA's Board of Retirement. Page 9

Senate Bill No. 673 CHAPTER 244 An act to amend Sections 31468, 31529.9, 31557.3, and 31580.2 of, and to add Section 31522.9 to, the Government Code, relating to county employees retirement. [Approved by Governor August 22, 2014. Filed with Secretary of State August 22, 2014.] legislative counsel s digest SB 673, DeSaulnier. County employees retirement: Contra Costa County. The County Employees Retirement Law of 1937 authorizes counties and districts to establish retirement systems pursuant to its provisions in order to provide pension benefits to their employees. The law defines a district for these purposes and includes specified county retirement systems within that definition. The law generally provides that the personnel of a county retirement system are county employees, but also authorizes the board of retirement in specified counties to appoint certain personnel who are designated employees of the retirement system. This bill would make the Contra Costa County retirement system a district for purposes of the County Employees Retirement Law of 1937. The bill would authorize the board of retirement to appoint a retirement administrator and other personnel as required to accomplish the necessary work of the board and would authorize the administrator to make appointments on its behalf. The bill would provide that these employees are employees of the retirement system, not the county, and would except them from civil service provisions and merit system rules that would otherwise apply. The bill would make the retirement board a public agency for purposes of collective bargaining and provide that the compensation of the personnel so employed by the board is an expense of the system. The bill would require the retirement system to retain, for a 90-day transition period, nonprobationary county employees employed at the retirement system s facilities who were covered by a memorandum of understanding, as specified. The bill would provide that, during the 90-day transition period, probationary employees would maintain only those rights they had pursuant to their employment with the county. The bill would require the retirement system to recognize as the exclusive representative of the former county employees who are retained, as specified, those recognized employee organizations that represented the employees when they were employed by the county, and would require that the initial terms and conditions for those employees be as previously established. The bill would make technical and conforming changes in relation to these provisions. 93

Ch. 244 2 The people of the State of California do enact as follows: SECTION 1. Section 31468 of the Government Code is amended to read: 31468. (a) District means a district, formed under the laws of the state, located wholly or partially within the county other than a school district. (b) District also includes any institution operated by two or more counties, in one of which there has been adopted an ordinance placing this chapter in operation. (c) District also includes any organization or association authorized by Chapter 26 of the Statutes of 1935, as amended by Chapter 30 of the Statutes of 1941, or by Section 50024, which organization or association is maintained and supported entirely from funds derived from counties, and the board of any retirement system is authorized to receive the officers and employees of that organization or association into the retirement system managed by the board. (d) District also includes, but is not limited to, any sanitary district formed under Part 1 (commencing with Section 6400) of Division 6 of the Health and Safety Code. (e) District also includes any city, public authority, public agency, and any other political subdivision or public corporation formed or created under the constitution or laws of this state and located or having jurisdiction wholly or partially within the county. (f) District also includes any nonprofit corporation or association conducting an agricultural fair for the county pursuant to a contract between the corporation or association and the board of supervisors under the authority of Section 25905. (g) District also includes the Regents of the University of California, but with respect only to employees who were employees of a county in a county hospital, who became university employees pursuant to an agreement for transfer to the regents of a county hospital or of the obligation to provide professional medical services at a county hospital, and who under that agreement had the right and did elect to continue membership in the county s retirement system established under this chapter. (h) District also includes the South Coast Air Quality Management District, a new public agency created on February 1, 1977, pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of Division 26 of the Health and Safety Code. (1) Employees of the South Coast Air Quality Management District shall be deemed to be employees of a new public agency occupying new positions on February 1, 1977. On that date, those new positions are deemed not to have been covered by any retirement system. (2) No retirement system coverage may be effected for an employee of the South Coast Air Quality Management District who commenced employment with the district during the period commencing on February 1, 1977, and ending on December 31, 1978, unless and until the employee 93

3 Ch. 244 shall have elected whether to become a member of the retirement association established in accordance with this chapter for employees of Los Angeles County or the retirement association established in accordance with this chapter for employees of San Bernardino County. The election shall occur before January 1, 1980. Any employee who fails to make the election provided for herein shall be deemed to have elected to become a member of the retirement association established in accordance with this chapter for the County of Los Angeles. (3) The South Coast Air Quality Management District shall make application to the retirement associations established in accordance with this chapter for employees of Los Angeles County and San Bernardino County for coverage of employees of the South Coast Air Quality Management District. (4) An employee of the South Coast Air Quality Management District who commenced employment with the district during the period commencing on February 1, 1977, and ending on December 31, 1978, and who has not terminated employment before January 1, 1980, shall be covered by the retirement association elected by the employee pursuant to paragraph (2). That coverage shall be effected no later than the first day of the first month following the date of the election provided for in paragraph (2). (5) Each electing employee shall receive credit for all service with the South Coast Air Quality Management District. However, the elected retirement association may require, as a prerequisite to granting that credit, the payment of an appropriate sum of money or the transfer of funds from another retirement association in an amount determined by an enrolled actuary and approved by the elected retirement association s board. The amount to be paid shall include all administrative and actuarial costs of making that determination. The amount to be paid shall be shared by the South Coast Air Quality Management District and the employee. The share to be paid by the employee shall be determined by good faith bargaining between the district and the recognized employee organization, but in no event shall the employee be required to contribute more than 25 percent of the total amount required to be paid. The elected retirement association s board may not grant that credit for that prior service unless the request for that credit is made to, and the required payment deposited with, the elected retirement association s board no earlier than January 1, 1980, and no later than June 30, 1980. The foregoing shall have no effect on any employee s rights to reciprocal benefits under Article 15 (commencing with Section 31830). (6) An employee of the South Coast Air Quality Management District who commenced employment with the district after December 31, 1978, shall be covered by the retirement association established in accordance with this chapter for employees of San Bernardino County. That coverage shall be effected as of the first day of the first month following the employee s commencement date. (7) Notwithstanding paragraphs (2) and (4) above, employees of the South Coast Air Quality Management District who were employed between 93

Ch. 244 4 February 1, 1977, and December 31, 1978, and who terminate their employment between February 1, 1977, and January 1, 1980, shall be deemed to be members of the retirement association established in accordance with this chapter for the employees of Los Angeles County commencing on the date of their employment with the South Coast Air Quality Management District. (i) District also includes any nonprofit corporation that operates one or more museums within a county of the 15th class, as described by Sections 28020 and 28036 of the Government Code, as amended by Chapter 1204 of the Statutes of 1971, pursuant to a contract between the corporation and the board of supervisors of the county, and that has entered into an agreement with the board and the county setting forth the terms and conditions of the corporation s inclusion in the county s retirement system. (j) District also includes any economic development association funded in whole or in part by a county of the 15th class, as described by Sections 28020 and 28036 of the Government Code, as amended by Chapter 1204 of the Statutes of 1971, and that has entered into an agreement with the board of supervisors and the county setting forth the terms and conditions of the association s inclusion in the county s retirement system. (k) District also includes any special commission established in the Counties of Tulare and San Joaquin as described by Section 14087.31 of the Welfare and Institutions Code, pursuant to a contract between the special commission and the county setting forth the terms and conditions of the special commission s inclusion in the county s retirement system with the approval of the board of supervisors and the board of retirement. (l) (1) District also includes the retirement system established under this chapter in Orange County. (2) District also includes the retirement system established under this chapter in San Bernardino County at such time as the board of retirement, by resolution, makes this section applicable in that county. (3) District also includes the retirement system established under this chapter in Contra Costa County. SEC. 2. Section 31522.9 is added to the Government Code, to read: 31522.9. (a) The board of retirement of a county may appoint a retirement administrator and other personnel as are required to accomplish the necessary work of the board. The board may authorize the administrator to make these appointments on its behalf. Notwithstanding any other law, the personnel so appointed shall not be county employees but shall become employees of the retirement system, subject to terms and conditions of employment established by the board of retirement, including those set forth in memoranda of understanding executed by the board of retirement and recognized employee organizations. (b) Sections 31522.1 and 31522.2 shall not apply to a retirement system that appoints personnel pursuant to this section. (c) The retirement system that appoints personnel pursuant to this section is a public agency for purposes of the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4). 93

5 Ch. 244 (d) The compensation of personnel appointed pursuant to this section shall be an expense of administration of the retirement system, pursuant to Section 31580.2, except as provided in Sections 31529.5, 31529.9, and 31596.1. (e) The board of retirement and the board of supervisors may enter into agreements as they determine are necessary and appropriate in order to carry out the provisions of this section. (f) The retirement system, upon the effective date of this section, shall retain, for a 90-day transition employment period, nonprobationary employees who, upon the effective date of this section, were covered by a county memorandum of understanding and employed by the county at the retirement system s facilities, unless just cause exists to terminate the employees or legitimate grounds exist to lay off these employees. If during the 90-day period the retirement system determines that a layoff of these employees is necessary, the retirement system shall retain the employees by seniority within job classification. The terms and conditions of employment of the employees retained pursuant to this subdivision shall be subject to the terms and conditions established by the applicable memoranda of understanding executed by the board of retirement and the recognized employee organizations. During the 90-day transition period, probationary employees shall maintain only those rights they initially acquired pursuant to their employment with the county. (g) Subject to the employees rights under the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4), the retirement system, upon the effective date of this section, shall recognize as the exclusive representative of the employees retained pursuant to subdivision (f) the recognized employee organizations that represented those employees when employed by the county. The initial terms and conditions for those employees shall be as previously established by the applicable memoranda of understanding executed by the county and recognized employee organizations. (h) This section shall apply only in Contra Costa County. SEC. 3. Section 31529.9 of the Government Code is amended to read: 31529.9. (a) In addition to the powers granted by Sections 31522.5, 31522.9, 31529, 31529.5, 31614, and 31732, the board of retirement and the board of investment may contract with the county counsel or with attorneys in private practice or employ staff attorneys for legal services. (b) Notwithstanding Sections 31522.5, 31522.7, 31529.5, and 31580, the board shall pay, from system assets, reasonable compensation for the legal services. (c) This section applies to any county of the 2nd class, 7th class, 9th class, 14th class, 15th class, or the 16th class as described by Sections 28020, 28023, 28028, 28030, 28035, 28036, and 28037. (d) This section shall also apply to any other county if the board of retirement, by resolution adopted by majority vote, makes this section applicable in the county. SEC. 4. Section 31557.3 of the Government Code is amended to read: 93

Ch. 244 6 31557.3. On the date a district, as defined in subdivision (l) of Section 31468, is included in the retirement system, any personnel appointed pursuant to Sections 31522.5, 31522.9, and 31529.9 who had previously been in county service shall continue to be members of the system without interruption in service or loss of credit. Thereafter, each person entering employment with the district shall become a member of the system on the first day of the calendar month following his or her entrance into service. SEC. 5. Section 31580.2 of the Government Code is amended to read: 31580.2. (a) In counties in which the board of retirement, or the board of retirement and the board of investment, have appointed personnel pursuant to Section 31522.1, 31522.5, 31522.7, or 31522.9, the respective board or boards shall annually adopt a budget covering the entire expense of administration of the retirement system which expense shall be charged against the earnings of the retirement fund. The expense incurred in any year may not exceed the greater of either of the following: (1) Twenty-one hundredths of 1 percent of the accrued actuarial liability of the retirement system. (2) Two million dollars ($2,000,000), as adjusted annually by the amount of the annual cost-of-living adjustment computed in accordance with Article 16.5 (commencing with Section 31870). (b) Expenditures for computer software, computer hardware, and computer technology consulting services in support of these computer products shall not be considered a cost of administration of the retirement system for purposes of this section. O 93