O 689 •
ORDINANCE NO. 689
AN ORDINANCE THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS
FOLLOWS:
SECTION 1: That an amendment to the contract between the City Council of the City
of Arroyo Grande and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said amendment being attached
hereto, marked Exhibit, and by such reference made a part hereof as though herein
set out in full.
SECTION 2: The Mayor of the City of Arroyo Grande is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said
Agency.
SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its
adoption, and
SECTION 4: A summary of this Ordinance shall be published in a newspaper
published and circulated in the City of Arroyo Grande at least five (5) days prior to the
City Council meeting at which the proposed Ordinance is to be adopted. A certified
copy of the full text of the proposed Ordinance shall be posted in the office of the City
Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the
names of those City Council members voting for and against the Ordinance shall be
published again, and the City Clerk shall post a certified copy of the full text of such
adopted Ordinance.
On motion of Council Member Barneich, seconded by Council Member Ray, and on
the following roll call vote to wit:
AYES: Council Members Barneich, Ray, Harmon, and Brown
NOES: None
ABSENT: Mayor Hill
the foregoing Ordinance was adopted this 14th day of November, 2017.
ORDINANCE NO. &8q
PAGE 2
JIM ILL, MAYOR
ATTEST:
bUdittel
KELLY ET RE, CITY CLERK
APPROVED AS TO CONTENT:
J ' IFIN&- MAN, CITY MANAGER
APPROVED AS TO FORM:
G "
ATHER WHITHAM, CITY ATTORNEY
Ca1PERS
Exhibit
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Arroyo Grande
•
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
10, 1964, and witnessed June 16, 1964, and as amended effective September 16,
1966, May 24, 1973, July 4, 1980, June 24, 1988, February 12, 1999, October 15, 1999,
September 28, 2000, January 4, 2002, July 2, 2004, December 31, 2004, June 30,
2006, June 27, 2008, June 26, 2009, December 9, 2011, December 21, 2012 and
December 2, 2016 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 19 are hereby stricken from said contract as executed
effective December 2, 2016, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age"shall mean
• age 55 for classic local miscellaneous members, age 62 for new local
miscellaneous members, age 50 for classic local police members entering
membership in the police classification on or prior to December 9, 2011,
age 55 for classic local fire members and for those classic local police
members entering membership for the first time in the police classification
after December 9, 2011 and age 57 for new local safety members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 10, 1964 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 attorney 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) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' 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.
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. EMPLOYEES COMPENSATED ON AN HOURLY BASIS; AND
b. ELECTED OFFICIALS.
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment before and not on or after June 27, 2008 shall be
determined in accordance with Section 21354 of said Retirement Law
subject to the reduction provided therein for Federal Social Security(2% at
age 55 Modified and Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment on or after June 27, 2008 and not entering membership for
the first time in the miscellaneous classification after December 21, 2012
shall be determined in accordance with Section 21354.4 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security(2.5%at age 55 Modified and Full).
8. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification after
December 21, 2012 shall be determined in accordance with Section
21354 of said Retirement Law subject to the reduction provided therein for
Federal Social Security(2%at age 55 Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said
Retirement Law (2% at age 62 Supplemental to Federal Social Security).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member shall be
determined in accordance with Section 21363.1 of said Retirement Law
subject to the reduction provided therein for Federal Social Security (3% at
age 55 Modified).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local police member
entering membership in the police classification on or prior to December 9,
2011 shall be determined in accordance with Section 21362.2 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security(3% at age 50 Modified).
PLEASE DO NOT SIGN "EXHIBIT ONLY" '
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local police member entering
membership for the first time in the police classification after December 9,
2011 shall be determined in accordance with Section 21363.1 of said
Retirement Law subject to the reduction provided therein for Federal
Social Security (3% at age 55 Modified).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Supplemental to Federal Social Security).
14. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21222.1 (One-Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
b. Section 20965 (Credit for Unused Sick Leave).
c. Section 21024 (Military Service Credit as Public Service).
d. Section 21027 (Military Service Credit for Retired Persons).
e. Section 20042 (One-Year Final Compensation) for classic local fire
members and those classic local police members entering
membership on or prior to December 9, 2011 and classic local
miscellaneous members entering membership on or prior to '
December 21, 2012.
f. Section 21548 (Pre-Retirement Option 2W Death Benefit) for local
miscellaneous members only.
g. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
h. Section 20475 (Different Level of Benefits). Section 21363.1 (3%
55 Modified formula) and Section 20037 (Three-Year Final
Compensation) are applicable to classic local police members
entering membership for the first time with this agency in the police
classification after December 9, 2011.
Section 21354.4 (2% @ 55 Modified formula) and Section 20037
(Three-Year Final Compensation) are applicable to classic local
miscellaneous members entering membership for the first time with
this agency in the miscellaneous classification after December 21,
2012.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
i. Section 20516 (Employees Sharing Additional Cost):
From and after December 2, 2016, .5% for new local police
members in the Arroyo Grande Police Officers Association.
From and after December 2, 2016 and until the effective date of this
amendment to contract, 2% for classic local police members in the
Arroyo Grande Police Officers Association.
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Arroyo Grande Police
Officers Association.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall
not exceed the Employer Normal Cost Rate, as that rate is defined
in the CaIPERS Actuarial Valuation for the relevant fiscal year. If
the Cost Sharing Percentage will exceed the relevant Employer
Normal Cost Rate, the Cost Sharing Percentage shall automatically
be reduced to an amount equal to, and not to exceed, the Employer
Normal Cost Rate for the relevant fiscal year.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
July 4, 1980. Accumulated contributions of Public Agency shall be fixed
and determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
16. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
17. Public Agency shall also contribute to said Retirement System as follows:
a. 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.
b. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
18. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
19. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. if more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors In contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effective on the day of ,
BOARD OF ADMINISTRATIQ CITY COUNCIL
PUBLIC EMPLOYEES' RE1 EMENT SYSTEM CITY OF ARROYO GRAN
BY BY IS
ARNITA PAIGE, CHI PRESIDING OFFIC
PENSION CONTRA S AND PREFUNDING
PROGRAMS DIV 4,,,N
PUBLIC EMPL•::
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of Sen
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
the attached Ordinance No. 689 which was introduced at a regular meeting of the
City Council on October 10, 2017; was passed and adopted at a regular meeting
of the City Council on the 14th day of November 2017; and was duly published in
accordance with State law (G.C. 40806).
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 20th
day of November 2017.
/ tthijjjtytL__
KELLY W T t RE, CITY CLERK