O 609ORDINANCE NO. 609
AN ORDINANCE OF THE CfTY COUNCIL OF THE CffY OF ARROYO GRANDE
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CEN AND
THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM FOR LOCAL MISCELLANEOUS MEMBERS
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS:
WHEREAS, the City of Arroyo Grande, County of San Luis Obispo, State of California ("City") is
duly authorized and existing under the laws of said State; and
WHEREAS, the City of Arroyo Grande has contracted with the Board of Administration of the
California Public Employees' Retirement System to provide retirement benefits to the
employees; and
WHEREAS, the City of Arroyo Grande wishes to adopt the provisions of Section 20903
(Two Years Additional Service Credit) for Local Miscellaneous Members.
NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Arroyo Grande, 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 City.
SECTION 3. This ordinance shall take effect on June 12, 2009.
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 Guthrie, seconded by Council Member Fellows, and on the
following roll call vote to wit:
AYES: Council Members Guthrie, Fellows, Costello, and Mayor Ferrara
NOES: None
ABSENT: Council Member Arnold
the foregoing Ordinance was adopted this 12"' day of May 2009
ORDINANCE NO. !per
PAGE 2
TO R AYOR
ATTEST:
KELLY ET E, CITY CLERK
APPROVED AS TO CONTENT:
ST~VEI~DAM ,CITY MANAGER
APPROVED AS TO FORM:
TIM HY J. CA ,CITY ATTORNEY
~ i%_
CalPERS
EXHIBIT
Califomia
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, Califomia 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
and June 27,2008 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective June 27, 2008, and hereby replaced by the following paragraphs
numbered 1 through 15 inclusive:
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; age 55 for local fire
members and age 50 for local police members.
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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 a!1 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 Agencys 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 90.1) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CaIPERS 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 terrnination 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.
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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. 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 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 local miscellaneous member in
employment on or after June 27, 2008 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 prior and current service as a local police member 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).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a 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).
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10. 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).
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.
11. 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 Govemment Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as
provided in Govemment Code Section 20834.
12. 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.
13. Public Agencyshall 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.
14. 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.
15. 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 ARROYO GRANDE
BY
LORI MCGARTLAND, CHIEF
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
~..
BY
PRESIDING OFFICER
Witness Date
-• Attest:
Clerk
AMENDMENT ER# 0545
PERS-CON-702A (Rev. 10\OS)
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
the attached is a true, full, and correct copy of Ordinance No. 609 which was
introduced at a regular meeting of the City Council on April 14, 2009; was passed
and adopted at a regular meeting of the City Council of the City of Arroyo Grande
on the 12t" day of May, 2009; 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 13~'
day of May 2009.
KELLY ETM E, CITY CLERK