ORD 461 ORDINANCE NO. 461
AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF RANCHO
PALOS VERDES AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM FOR THE 2.5%
@ 55 RETIREMENT FORMULA
WHEREAS,- at a Budget Policy Issues Workshop held on April 29, 2006,
the City Council directed staff and the Finance Advisory Committee (FAC) to
study possible changes to the City's employee retirement benefit plan.
WHEREAS, upon completing its assignment on March 7, 2007, the FAC
recommended that the City increase the pension benefit formula from 2% @ 55
to 2.5% @ 55, with a salary contribution from employees.
WHEREAS, at a Budget Policy Issues Workshop held on March 24, 2007,
the City Council decided to proceed with the FAC's recommendation to improve
the City's pension benefit formula and directed staff to initiate the contract
amendment with California Public Employees' Retirement System.
WHEREAS, staff requested and received an updated actuarial valuation
and the necessary documents to amend the contract from the California Public
Employee's Retirement System.
WHEREAS, on June 19, 2007, the City Council considered the actuarial
valuation and the proposed amendments at a public meeting.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES HEREBY ORDAINS AS FOLLOWS:
Section 1: The City Council hereby authorizes an amendment to the
contract between the City of Rancho Palos Verdes and the Board of
Administration of the California Public Employee's Retirement System, 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 Rancho Palos Verdes is hereby
authorized, empowered and directed to execute said amendment for and on the
behalf of said Agency.
Section 3: This Ordinance shall take effect 30 days after the date of its
adoption.
Section 4: The City Clerk shall certify to the adoption of this ordinance and
shall cause the same to be posted in the manner prescribed by law.
PASSED, APPROVED and ADOPTED this 21st day of August 2007.
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, do hereby
certify that the whole number of members of the City Council of said City is five;
that the foregoing Ordinance No. 461 passed first reading on July 17, 2007, was
duly and regularly adopted by the City Council of said City at a regular meeting
thereof held on August 21, 2007 and that the same was passed and adopted by
the following roll call vote:
AYES: Clark, Stern and Mayor Long
NOES: Gardiner and Wolowicz
ABSENT: None
ABSTAIN: None
LeA,4_____
City Clerk
Ordinance No. 461
Page 2 of 2
CALIFORNIA PUBLIC SLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch •
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CaIPERS (225-7377)
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the City Council of the
(governing body)
City of Rancho Palos Verdes
(public agency)
adopted on August 21 2007 , by an affirmative vote of a majority
(date)
of the members of said Governing Body, Ordinance
(Ordinance or Resolution)
No. 461 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
(Ordinance or Resolution)
in the form furnished by said Board of Administration being attached hereto.
Clerk/Secretary
City Clerk
Title
Date August 22, 2007
PERS-CON-5(Rev. 1/96)
EXHIBIT
Ordinance No. 461
A I,
CA1PERS
California
Public Employees' Retirement System
....aisa...awspmm.4441pr■111111.11111.1.11111101.1.1
AMENDMENT TO CONTRACT
B:etweea the
Board of Administration
California Public Employees Retirement System
*04, the
Cs.ty Council
City of Rancho. Pa los •Verdes
""'"""imaimmailm. : limmaymiamaimaw'm
The Board of Administration, California Public Employees' Retirement Sys#em,
hereinafter referred to as Board, and the goveming body of the above public
agency, hereinafter referred to as Public Agency, having entered into a contract
effective December 1, 1974, and witnessed October 15, 1974, and as amended
effective April 1, 1978,'September 16, 1983, February 11, 1993, September 2, 2000
and April 21, 2001 which provides for participation of Public Agency in said System,
Board and.Public Agency hereby agree as follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective April 21, 2001, and hereby replaced by the following paragraphs
numbered 1 through 12 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.
2. Public:Agency-shall participate in the Public Employees' .Retirement
System .:from and after December 1, 1974 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. riot•:provided for herein
and to ::a:ll....:•amendm:ents to said. Law .hereafter enacted except those,
which by express provisions..thereof, apply only. on the election of a
.caritracting agency.
3. Employees of Public Agency in the following classes shall become
members.0 :.said...Retirement System .except..su.ch in each such class
as are excluded by law or this agreement:
a. Employees other than local safety members (herein referred to
..es.local:miscellaneous memllers):
4. ln...additio.rt:.te the classes of employees..exoluded from.:membership by
said Retirement Law, the following.�cla ses of --employees shall not
become members of-aaid Retirement-System:
a EL :CT :O.FFICIALS,
b. CROSSING GUARDS .-
c. WORK TRAINEES; .
.d DMINIST TIV INT ERN, AND
e. SAFETY EMP OYE.ES..
5. 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 the• effective. date of this
amendment to contract shall be determined in accordance with
Section 21354 of said Retirement Law(2% at age '55 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 Retirement Law(2.5% at age 55 Full).
7. Public Agency elected and elects.:.-to be ::subject to the following
•optional provisions: •
a. Section 21574 (Fourth Level of 1.959..Survivor Benefits).
b. Section 20903 (Two Years.:AdOitional:SprAce.:Credit).
c.. Section 20042...(0116,Year Final Compensation).
8. Public ItQency,..in accpoloope,:wit0.:Goverpoloot:ic00..$6ction.20790,
Oes.:pd. 0,:Op an 701)0.10Yett7j:for.s'ititifpos00:s of Section 20834 effective
on September 1.8;4983...Accumulated contributions of Public Agency
shall be :fiked.• 4ncl:..:.det60.)1ined. as provided in .:Government -:Code
•
Section 20834, and accumulated contributions thereafter shall be held
by:.ithes:Board'as. pr6.014011660VernhiOnt'Codo:Settign 20834. .-
9. Public Agency 0101 oPtitri4ute..• to said. Retirement. .$yStern the
contributions determined s valuations of prior.and future
service::.liability s with•respect to local miscellaneous ttierrib6r .::Of said
.*Retfremet).t..: ystOm..
•0. Public Agency shall. also contribute to said..-Retirement System as
follows:
a. QOlittib0000$.,.r.04:4404.:por:-Ooverp0•:,.,mentidr on account of the
1959 iS(it‘ii*tot.!*tinefi*:::ptOvidott'Ohder- Section 21574 of said
Retirement Law. (Subject to annual change.) In addition, all
assets and lioNlitieS,::.0:::Pubjic..:.Agencypnd its employees shall
be pooled in a single aco:olt.:Oaspd: on term insurance rates,
for survivors of all local miscellaneous members.
b. 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.
c. 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.
11. 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.-regtfittdby said Retirement Law.
12. Contributions requjrqd. 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
arnouht of dontributions 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.
LePB. This amendment shall be effective on the R7 .-day of .6:80teotet- , 1007.
BOARD OF ADMINISTRATION CITY COUNCI
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF - ./A• PALOS RDES
Ao.
BY BY
LO 1E7GA TLAND, •IEF PRESID G OFFICER
EMPLOYE SERVICES DIVISION
PUBLIC EMPLOYEES'iliETIREMENT SYSTEM
ô7
atetai" .42, 4-4
Witnes atre
Attest:
64, (
Clerk
AMENDMENT ER#1020
PERS-CON-702A(Rev.10\05)
RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES)
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the appointed City Clerk
of the City of Rancho Palos Verdes;
That on August 22, 2007, she caused to be posted the following document
entitled: Ordinance No. 461 -AN ORDINANCE OF THE CITY OF
RANCHO PALOS VERDES AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE CITY OF RANCHO PALOS
VERDES AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
FOR THE 2.5% @ 55 RETIREMENT FORMULA, a copy of which
is attached hereto, in the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit
of posting.
City Clerk