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O 637 ORDINANCE NO. 637 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 POLICE MEMBERS WHEREAS, the City of Arroyo Grande, County of San Luis Obispo, State of California 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 20475 (different level of benefits) for local Police members; and WHEREAS, the City of Arroyo Grande wishes to adopt the provisions of Section 21363.1 (3% @ 55 Modified formula) for local police members; and WHEREAS, the City of Arroyo Grande wishes to adopt the provisions of Section 20037 (three-year final compensation) 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 December 1, 2011. 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. 637 PAGE 2 On motion of Council Member Costello, seconded by Council Member Ray, and on the following roll call vote, to wit: AYES: Council Members Costello, Ray, Guthrie, Brown, and Mayor Ferrara NOES: None ABSENT: None the foregoing Ordinance was�passed and adopted this 25�`' day of October 2011. ORDINANCE NO. (p37 PAGE 3 T FE , MAYOR ATTEST: . KELLY ET RE, CITY CLERK � APPROVED AS TO CONTENT: E N ADAMS, CITY MANAGER . APPROVED AS TO FORM: �� . TIM HY J. CA M , CITY ATTORNEY li,. � , . 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 and June 26, 2009 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 June 26, 2009, and hereby replaced by the following paragraphs numbered 1 through 16 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, age 50 for local police members entering membership in the police classification on or prior to the effective date of this amendment to contract, age 55 for local fire members and for those local police members entering membership for the first time in the police classification after the effective date of this amendment to contract. l+ nr t'�!� ,r.i^;�� �,�,�:�� cr��r�_1,�.�-� �rl•"''� , » 1� �fIVL Li� I`F�J I �.riir.;'J L/�\� i6Ui 11l�i�� 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 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 CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. - r'�C�, n�— � ^ nl^? nl/�n! 6t,-�.rl ;!'��i .^t' �� �.r±t f+ LI"��3t_ �:1,� le�i i �ii�iW ��`\i i�l.�l l ��i'dd.� (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (fl 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. 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). r — ;l �1t- r-.� R�/t"f' %lina_� LFi;.� ���.-r- ^,^ a ;i. ;�'_.._;7�;_ l..��i i`�li i c:�i �f:�S L`;ti;�.:i�i i v��•_; 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 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. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member 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 subject to the reduction provided therein for Federal Social Security (3% at age 50 Modified). 10. 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 21363.1 of said Retirement Law subject to the reduction provided therein for Federal Social Security (3% at age 55 Modified). 11. 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 local . miscellaneous members; local fire members and those local police members entering membership on or prior to the effective date of this amendment to contract. �.�. /'.� - ' ^-r- �:�'°, ��.•a�-T !-:�!1 fl�{ ({. ... ..� k ' � � r,t v� L1 Ei i l':J 1 le::✓.•'� E-i�� •::�i � LJ i ._.. I L:_ 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 Modiifed 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. 12. 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. 13. 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. 14. 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. 15. 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. 16. 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 PUBL`IC,EMPLOYEES' RETIREMENT SYSTEM CITY OF ARROYO GRANDE �1,!.-�.�. r`��� BY ����� `<�t� � DARRYL WATSON, �-t�l "� RR�IDING OFFICER CUSTOMER ACCOUN�'"S'.E�/ICES DIVISION `�"� PUBLIC EMPLOYEES' RETffZ�IVI.�NT SYSTEM C,�,�, ''�:'��,�. '';�� � ��( ��. • � Witness Date`L�?r� v' f , Attest: ���`fr• f:;:�. ��,,.. : �'�l`) . 4 rr. i. . �����'� Clerk � AMENDMENT ER#545 PERS-CON-702A � � 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. 637 which was �introduced at a regular meeting of the City Council/Redevelopment Agency on . � September 27, 2011; was passed and adopted at a regular meeting of the �City Council of the City of Arroyo Grande on the 25th day of October 2011; 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 26tn day of October 2011. KELL W MORE, CITY CLERK � . .