O 597ORDINANCE NO. 597
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE CITY AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM FOR
LOCAL MISCELLEANOUS MEMBERS AND LOCAL
POLICE MEMBERS
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
21354.4 (2.5% @ 55 Full and Modified formula) for local miscellaneous members.
WHEREAS, ,the City of Arroyo Grande wishes to adopt the provisions of Section
21362.2 (3% @ 50 Modified formula) for local police 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 April 26, 2008.
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.
ORDINANCE NO. 597
PAGE 2
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, and Mayor Ferrara
NOES: None
ABSENT: Council Member Arnold and Mayor Pro Tem Fellows
the foregoing Ordinance was passed and adopted this 25th day of March 2008.
ORDINANCE N0.5`~/
PAGE 3
TONYFERRA AYOR
ATTEST:
~~~
KELLY W TM E, CITY CLERK
APPROVED AS TO CONTENT:
S ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TI THY J: MEL, CITY ATTORNEY
~~,
CaIPERS
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 and June 30,
2006 which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby Stricken from said contract as executed
effective June 30, 2006, and hereby replaced by the following paragraphs
numbered 1 through 14 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 all amendments
to said Law hereafter enacted except those, which by express provisions
thereof, apply only on the election of a contracting agency.
3. ,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).
4. 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.
5. The percentage of final compensation to be provided for each year of
credited prior and cun•ent service as a local miscellaneous member in
employment before and not on or after the effective date of this
amendment to contract 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).
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 on or after the effective date of this amendment to contract
shall be determined in accordance with Section 21354.4 of said
i Retirement Law subject to the reduction provided therein for Federal
Social Security (2.5% at age 55 Modified and Full).
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7. 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). '
8. 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).
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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 corcect 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 ,• .
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY , C~~et `
LORI MCGARTLAhID;'CHIEF
EMPLOYEF~~ERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
CITY OF ARROYO GRANDE ,,~~~
PRESIDING OFFICER°`
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,Witness Date
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Attest:
Clerk
AMENDMENT ER#0545
PERS-CON-702A (Rev. 1005)
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. 597 which was
introduced at a regular meeting of the City Council/Redevelopment Agency on
February 26, 2008; was passed and adopted at a regular meeting of the City
Council/Redevelopment Agency of the City of Arroyo Grande on the 25~" day of
March 2008; 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 8~" day
of April 2008.
KELLY ETM RE, CITY CLERK