ORD 538UORDINANCE NO. 538U
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% @ 60 RETIREMENT BENEFIT
FORMULA AND DECLARING THE URGENCY THEREOF.
WHEREAS, on September 20, 2011, the City Council approved and directed staff
to request a contract amendment with CalPERS to establish a Second Tier based on the
2 %@ 60 retirement benefit formula with the determination of final compensation, based
on the average earnings of the three highest years; and,
WHEREAS, on August 21, 2012, the City Council adopted Resolution No. 2012-
61, a Resolution of Intention to amend the City's contract with CaIPERS to establish the
Second Tier;
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF R AN6HO PALOS.,
VERDES HEREBY ORDAINS AS FOLLOWS:
Section 1: An amendment to the contract between the City Council of the City of
Rancho Palos Verdes and the Board of Administration, California Public Employees'
Retirement System is hereby authorized, a copy of said amendment being attached
hereto and marked as Exhibit "A ", 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 behalf of said Agency.
Section 3: 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.
Section 4: Urgency Findings
The City Council finds and determines that the immediate preservation of the
public peace, hea:tth, and welfare requires that this ordinance be enacted as an urgency
ordinance pursuant to Government Code Section 36937(b) and take effect immediately
upon adoption, It is in the City's interest that the Second Tier retirement benefit formula
p p
become effective immediately so that any new employees that are hired by the City shall
be within the Second Tier, which will save the City monies with respect to the future
retirement benefits that the City will be required to pay for those employees upon their
retirement, assuming the employees are qualified to receive such benefits. Thus, if this
Ordinance does not become effective immediately, but instead becomes effective thirty
days after its second reading, ambiguity and confusion regarding the applicability of the
City's Second Tier could result. Therefore, this Ordinance is necessary for the
immediate preservation of the public peace and welfare and its urgency is hereby
declared.
1491525v1
Ordinance No. 538U
Page 1 of 2
Section 5: This Ordinance is an urgency ordinance and shall take effect
immediately upon adoption.
PASSED, APPROVED and ADOPTED the 2nd day of October 2012.
i
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. 538U was duly and regularly adopted by the City Council of
said City at a regular meeting thereof held on October 2, 2012 and that the same was
passed and adopted by the following roll call vote:
AYES:
Brooks, Campbell, Duhovic, Knight and Misetich
NOES:
None
ABSENT:
None
ABSTAIN:
None
City clerk
1491525v1
Ordinance No. 538U
Page 2 of 2
9 r
C a IA. X-JRS
California
'r
Public Employees' Retirement System
1''•s
k•.e.,r
NT N RA
min C
AM,NDME: TO CO
Between the
Board of Ad�nini strat ion
Calif orn a public Employees' Retirement system
and the
City Council
City :of Rancho Palos Verdes
-------- - ---- - - - ---- -
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
December 1, 1974, and witnessed October 15, 1974, and as amended effective April 1,
1978, September 10, 1983, February 11, 1993, September 2, 2000, April 21, 2001 and
September 29, 2007 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 September 29, 2007, and hereby replaced by the following paragraphs
numbered 1 through 14 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 entering membership in
the miscellaneous classification on or prior to the effective date of this
amendment to contract and age 50 for local miscellaneous members
entering membership for the first time in the miscellaneous classification
after the effective date of this amendment to contract.
Ordinance No. 538U
Exhibit A
Page 1 of 5
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 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 (CalPERS) and its
trustees, agents and employees, the CalPERS 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-- CalPERS 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
CalPERS 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 CalPERS Board of Administration pursuant to
section 355, 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 CalPERS' 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.
Ordinance No. 538U
Exhibit A
Page 2of5
(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. 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. ELECTED OFFICIALS;
b. CROSSING GUARDS;
C. WORD TRAINEES;
d. ADMINISTRATIVE INTERN; AND
e. SAFETY EMPLOYEES.
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 September 29, 2097 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 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 September 29, 2997 and not entering membership
for the first time in the miscellaneous classification 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).
8. The percentage of final compensation to be provided for each year of
credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after the
effective date of this amendment to contract shall be determined in
accordance with Section 21353 of said Retirement Law (2% at age 59
Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21574 (Fourth Level of 1959 Survivor Benefits).
Ordinance No. 538U
Exhibit A
Page 3of5
b. Section 20903 (Two Years Additional Service Credit).
C. Section 20042 (One -Year Final a Compensation) for local
miscellaneous members entering membership on or prior to the
effective date of this amendment to contract.
d. Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local miscellaneous members
entering membership for the first time in the miscellaneous
classification after the effective date of this amendment to contract.
10. Public Agency, in accordance with Government code Section 20790,
ceased to be an "employers' for purposes of Section 20.834 effective on
September 15, 1983. 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 sha11 contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members of said: Retirement System.
12. Public Agency shall also contribute to said Retirement System as follows:
a. contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based 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.
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. Ordinance No. 538U
Exhibit A
Page 4of5
1 4. 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 oard.
V111
B. This amendment shall be effective on the da v of
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY.
KAREN DE FRANK 1::iN.I . EF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #3846845523
PERS- CON -702A
CITY COUNCIL
CITY OF RANCHO PALOS VERDES
PRESIDING OFFICER
Witness Date
Attest:
SZJ2 X-±,-
Clerk
Ordinance No. 538U
Exhibit A
Page 5of5
1iRANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )SS
CITY OF RANCHO PALOS VERDES)
AFFIDAVIT OF POSTING
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 October 3, 2012, she caused to be posted the following document
entitled: ORDINANCE NO. 538U, 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% @ 60 RETIREMENT
BENEFIT FORMULA AND DECLARING THE URGENCY THEREOF, a
copy of which is attached hereto, in the following locations:
City Hall
30940 Hawthorne Blvd.
Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
Ladera Linda Community Center
32201 Forrestal Drive
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
M\
City O '(erk
MFORMSTorm 150 Archived Affidavits (old�Form 150- Affidavit of Posting Ordinance No. 538U.doc