HomeMy WebLinkAbout1585ORDINANCE NO. 1585 (2012 Series)
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SAN LUIS OBISPO AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM
WHEREAS, the City of San Luis Obispo has contracted with the California Public
Employees' Retirement System (Ca1PERS) for retirement benefits for its sworn Police Safety
employees and Miscellaneous employees since July 1, 1952; and
WHEREAS, over the years, the City has amended its retirement benefit structure to reflect
changes as negotiated during the meet - and - confer process with each bargaining group; and
WHEREAS, the City is amending its contract with Ca1PERS to provide for the 2% @ 50
Retirement Formula and three year average final compensation for its sworn Police Safety
employees hired after this contract amendment with Ca1PERS; and
WHEREAS, the City is amending its contract with Ca1PERS to provide for the 2% @ 60
Retirement Formula and three year average final compensation for its Miscellaneous employees
hired after this contract amendment with Ca1PERS; and
WHEREAS, the City has reached agreement with all of its represented bargaining units
and has entered into memoranda of agreement with those bargaining units pursuant to which the
parties have agreed to implement the aforementioned retirement formulas;
WHEREAS, during the negotiation process, Public Employees Pension Reform Act was
passed by the Legislature and signed by the Governor to become effective January 1, 2013, which
will eliminate the aforementioned bargained retirement formulas, and
WHEREAS, the City will be unable to implement the bargained for retirement formulas
and satisfy the requirements of its memoranda of agreements, unless this ordinance is adopted as an
urgency measure to become effective prior to January 1, 2013; and
WHEREAS, if the City is unable to implement the bargained for retirement formulas, it
will be substantially detrimental to the long -term financial welfare of the City; and
WHEREAS, in order for the City to amend its contract with Ca1PERS to provide the
bargained formulas, pursuant to Government Code Section 20471, there must be at least a 20 -day
period between the adoption of the Resolution of Intention and the adoption of the final Ordinance.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. That an amendment to the contract between the City Council of the City of
San Luis Obispo and the Board of Administration, California Public Employees' Retirement System
0 1585
Ordinance No. 1585 (2012 Series)
Page 2
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 San Luis Obispo is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of the City, to be effective the first full
pay period following adoption of this ordinance, beginning December 6, 2012.
SECTION 3. This ordinance is an urgency ordinance and shall take effect immediately
upon adoption. The City Council hereby declares that the need for the adoption of this ordinance as
an urgency measure is to preserve the public peace, health or safety. If this ordinance is not adopted
as an urgency measure, the City would not be able to comply with negotiated employee contracts
for the "Miscellaneous" and "Police Safety" employee groups, which require amendment to the
retirement benefits prior to December 31, 2012. Breach of terms of negotiated agreements
undermines labor stability and, in this case, would adversely impact the City's ability to achieve
labor cost reductions deemed necessary by this Council to support the City's long term fiscal
sustainability.
SECTION 4. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This urgency ordinance shall go into
effect immediately upon its final passage.
INTRODUCED at a regular meeting of the City Council held on this 7th day of November,
2012, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 4th day of
December 2012, on the following vote:
AYES
NOES:
ABSENT:
Council Members Ashbaugh, Carpenter and Carter,
and Mayor Marx
None
None
ATTEST:
Maeve KeQedy Grings
City Clerk
APP TO RM:
nntI
J. istine Dietrick
City Attorney
Vice Mayor Smith
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer, Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
I hereby certify that the
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
City Council
(governing body)
CitV of San Luis nhisnn
of the
(public agency) - --
considered and adopted on December 4 2012 , by an affirmative
(date)
vote of a majority of the members of said Governing Body, Ordinance / Rjusaki lan No.
1585 (2 012 ) approving the attached contractual agreement between the Governing
Body of said Agency and the Board of Administration of the California Public
Employees' Retirement System, a certified copy of said Ordinance / Resolution in the
form furnished by said Board of Administration being attached hereto.
Adoption of the retirement benefit increase/change was not placed on the consent
calendar.
Maeve Kennedy Grimes
City Clerk
Title
Date December 6, 2012
PERS-CON-5 (Rev. 6/09)
city of SAn Luis OBISW
MINIM,;
CERTIFICATION
I, Maeve Kennedy Grimes, City Clerk, do hereby certify that the foregoing
is a true and correct copy of Ordinance No. 1585 (2012 Series), adopted by the
San Luis Obispo City Council on December 4, 2012.
WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.
DATED: December 6. 2012
-4�a- L
Mae a KennJGrime
City Clerk
The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
CaIF'GRS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of San Luis Obispo
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,
1952, and witnessed June 9, 1952, and as amended effective October 1, 1962, October
3, 1963, October 1, 1974, June 1, 1976, December 1, 1976, December 20, 1978,
January 16, 1980, May 1, 1980, July 1, 1980, July 1, 1983, July 1, 1986, July 23, 1987,
November 16, 1989, August 8, 1993, November 5, 1999, January 7, 2000, July 6, 2000,
September 21, 2001 March 28, 2002, July 18, 2002, January 30, 2003, February 27,
2003, July 14, 2005, December 29, 2005 and August 30, 2012 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree
as follows:
A. Paragraphs 1 through 15 are hereby stricken from said contract as executed
effective August 30, 2012, and hereby replaced by the following paragraphs
numbered 1 through 17 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 and 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; age 50 for local
police members and for those local fire members entering membership in
the fire classification on or prior to August 30, 2012 and age 55 for local
fire members entering membership for the first time in the fire
classification after August 30, 2012.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1952 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.
3. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS 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 - CaIPERS 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
CaIPERS 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 CaIPERS' 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:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. 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. CROSSING GUARDS.
6. 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 January 30, 2003 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
7. 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 January 30, 2003 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 21354.5 of said Retirement Law (2.7% at age 55 Full).
8. 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 21354 of said Retirement Law (2% at age 60
Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local fire member entering
membership in the fire classification on or prior to August 30, 2012 and for
those local police members entering membership in the police
classification on or prior to the effective date of this amendment to contract
shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
10. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification after August 30, 2012 shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a local police member entering membership for
the first time in the police classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21362 of said Retirement Law (2% at age 50 Full).
12. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
b. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
C. Sections 21624, 21626 and 21628 (Post- Retirement Survivor
Allowance) for local safety members only.
d. Section 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One -Year Final Compensation) for local fire
members entering membership on or prior to August 30, 2012 and
for those local police members and local miscellaneous members
entering membership on. or prior to the effective date of this
amendment to contract.
f. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
g. Section 21024 (Military Service Credit as Public Service).
h. Section 21548 (Pre- Retirement Option 2W Death Benefit).
Section 20475 (Different Level of Benefits). Section 21363.1 (3%
@ 55 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local fire members entering
membership for the first time in the fire classification after August
30, 2012.
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to local miscellaneous
members entering membership for the first time in the
miscellaneous classification after the effective date of this
amendment to contract.
Section 21362 (2% @ 50 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to local police members
entering membership for the first time in the police classification
after the effective date of this amendment to contract.
13. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
June 1, 1976. 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.
14. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior. and future service liability with
respect to local miscellaenous members and local safety members of said
Retirement System.
15. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 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 fire members.
b. 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 police members and local miscellaneous members.
C. 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.
d. 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.
16. 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.
17. 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 SAN LUIS OBISPO
BY
KAREN DE FRANK, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #7574628515
PERS- CON -702A
BY 716A" 7c, er
PRE§ ING OFFICER
Witness Date
Attest:
Clerk �J
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