Loading...
HomeMy WebLinkAbout12-8 Amendment to Contract Between City of Costa Mesa and Board of Admin of CalPERSORDINANCE NO. 12-8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF COSTA MESA AND BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. WHEREAS, due to the ongoing economic difficulties, the City of Costa Mesa ("City") recently negotiated and approved revised agreements with its employees whereby all employee groups will contribute additional sums towards the employee portion of their retirement contribution; and WHEREAS, as a result of these negotiations, on or about September 4, 2012, the City Council adopted amendments to the Costa Mesa Fire Association ("CMFA") Memorandum of Understanding ("MOU") and Costa Mesa Fire Management Association ("CMFMA") with the City by way of a Side Letter of Agreement ("LOA"); and WHEREAS, the LOA revises retirement contributions for second tier employees; ' and WHEREAS, the City has been working with the California Public Employment Retirement Systems ("CaIPERS") in order to effectuate the changes to City's MOU with CMFA and CMFMA; and WHEREAS, CaIPERS has stringent timelines for amendment to CaIPERS contracts including a limited window of time each year to amend contracts, processing of only one contract amendment at a time, and a special valuation from CaIPERS that requires time for completion; and WHEREAS, additionally, CaIPERS procedures for contract amendments requires the effective date of the contract amendment as the first day of a payroll period and may not be earlier than the day after the effective date of the Ordinance; and WHEREAS, on October 16, 2012, Resolution of Intention No. 12- was approved by the City Council, and a first reading of the Ordinance authorizing an amendment to the contract occurred; and WHEREAS, a final reading of the Ordinance and a City Council vote on adoption will occur on November 20, 2012. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA ' DOES HEREBY ORDAIN AS FOLLOWS: Section 1. That an amendment to the contract between the City Council of the City of Costa Mesa and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked 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 Costa Mesa is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions ' thereof be declared invalid or unconstitutional. Section 4. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law. PASSED AND ADOPTED this 20' day of November, 2012. Eric R. Bever, Mayor ATTEST: APPROVED AS TO FORM: Brenda Green, Thomas Duarte, City kfamiey ' Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, Interim City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 12-8 was duly introduced for first reading at a regular meeting of the City Council held on the 16th day of October, 2012, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the 20th day of November, 2012, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: BEVER, LEECE, MENSINGER, MONAHAN, RIGHEIMER NONE NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 215t day of November, 2012. QN s& 4_t4 BRENDA GREEN, INTERIM CITY CLERK I hereby certify that the above and foregoing is the original of Ordinance No. 12-8 was duly passed and adopted by the Costa Mesa City Council at the regular meeting held November 20, 2012, and that the summary of the adopted ordinance was published in the Newport Beach -Costa Mesa Daily Pilot on Friday, November 30, 2012. BRENDA GN V INTERIM CITY CLERK CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CalPERS (225-7377) I hereby certify that the CERTIFICATION OF FINAL ACTION OF GOVERNING BODY (governing body) y of Costa M (public agency) of the considered and adopted on November 20 2012 , by an affirmative (date) vote of a majority of the members of said Governing Body, Ordinance / Resolution No. 12 - 8 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 / Resolution in the form furnished by said Board of Administration being attached hereto. Adoption of the retirement benefit increase/change was not placed on the consent calendar. Clerk/Secretary Intterim City Clerk Date I1-�qU-/,�- PERS-CON-5 (Rev. 6109) i, Ca1PERS California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Costa Mesa 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 August 13, 1978, and witnessed August 7, 1978, and as amended effective July 15, 1979, October 25, 1987, October 30, 1992, September 18, 1994, January 4, 1996, June 22, 1998, June 16, 2000, December 31, 2000, May 20, 2001, December 19, 2002, September 28, 2008, August 20, 2009, June 6, 2010, February 27, 2011 and March 11, 2012 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective March 11, 2012, and hereby replaced by the following paragraphs numbered 1 through 18 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 entering membership in the miscellaneous classification on or prior to March 11, 2012 and age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after March 11, 2012; age 50 for local police members and for those local fire members entering membership in the fire classification on or prior to the effective date of this contract to amendment and age 55 for local fire members entering membership for the first time in the fire classification after the effective date of this contract to amendment. 2. Public Agency shall participate in the Public Employees' Retirement System from and after August 13, 1978 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. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) 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: NO ADDITIONAL EXCLUSIONS 6. Assets heretofore accumulated with respect to members in the local retirement system have been transferred to the Public Employees' Retirement System on September 18, 1994 and applied against the liability for prior service incurred thereunder. That portion of the assets so transferred which represent the accumulated contributions (plus interest thereof) required of the employees under said local system has been credited to the individual membership account of each such employee under the Public Employees' Retirement System. 7. Benefits paid to pensioner or annuitants under the local system on or prior to September 18, 1994 shall be continued and paid at their existing rates by the Public Employees' Retirement System as authorized by Section 20481 of the Government Code. 8. The percentage of final compensation to be provided for local miscellaneous members in employment before and not on or after September 28, 2008 for each year of credited prior service is 0% and the percentage of final compensation to be provided for each year of credited current service is 100% and determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 9. The percentage of final compensation to be provided for local miscellaneous members in employment on or after September 28, 2008 and not entering membership for the first time in the miscellaneous classification after March 11, 2012 for each year of credited prior service is 0% and the percentage of final compensation to be provided for each year of credited current service is 100% and determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full). 10. 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 March 11, 2012 shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 11. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member and for those local fire members entering membership in the fire 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 (3% at age 50 Full). 12. The percentage of final compensation to be provided for each year of credited current service as a local fire member entering membership for the first time in the fire classification after the effective date of this amendment to contract shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). 13. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One -Year Final Compensation) for local miscellaneous members, local police members and for those local fire members entering membership on or prior to the effective date of this amendment to contract. b. Section 20965 (Credit for Unused Sick Leave). C. Sections 21624 and 21626 (Post -Retirement Survivor allowance) for local miscellaneous members, local police members and for those local fire members entering membership on or prior to the effective date of this amendment to contract. d. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. e. Section 20903 (Two Years Additional Service Credit). f. Section 20938 (Limit Prior Service to Members Employed on Contract Date) for local safety members only. g. Section 21536 (Local System Service Credit Included in Basic Death Benefit) for local safety members only. h. Section 21427 (Improved Nonindustrial Disability Allowance) for local fire members only. i. Section 21031 (Public Service Credit for Limited Prior Service) for local miscellaneous members only. j. Section 21024 (Military Service Credit as Public Service). k. Section 21027 (Military Service Credit for Retired Persons). I. Section 21023.5 (Public Service Credit for Peace Corps, AmeriCorps VISTA, orAmeriCorps Service). M. Section 20516 (Employees Sharing Cost of Additional Benefits): Section 21354.4 (2.5% @ 55 Full formula) for local miscellaneous members entering membership on or prior to March 11, 2012. From and after February 27, 2011 the miscellaneous employees of Public Agency shall be assessed an additional 2.469% of their compensation for a total contribution rate of 10.469% pursuant to Government Code Section 20516. Section 21362.2 (3% @ 50 Full formula) for local police members and for those local fire members entering membership on or prior to the effective date of this amendment to contract. From and after February 27, 2011 the police employees and fire employees entering membership on or prior to the effective date of this amendment to contract of Public Agency shall be assessed an additional 5% of their compensation for a total contribution rate of 14% pursuant to Government Code Section 20516. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) without Section 20516 (Employees Sharing Costs of Additional Benefits) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after March 11, 2012. Section 20475 (Different Level of Benefits). Section 21362 (2% @ 50 Full formula) and Section 20037 (Three -Year Final Compensation) without Sections 21624 and 21626 (Post - Retirement Survivor Allowance) and without Section 20516 (Employees Sharing the Cost of Additional Benefits) applicable to local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 14. Public Agency, in accordance with Government Code Section 20834, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20834, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20834. 15. 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. 16. 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 21573 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 and local safety 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. 17. 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. 18. 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 30th day of December , 2012 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF COSTA MESA BY BY KAREN DE FRANK, CHIEF PRESIDING OFFICER CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM ll-ao-ia- witness Date Attest: I'll r 6 MINK16rip ' AMENDMENT CaIPERS ID #5937664258 PERS-CON-702A CLASSIFIED r) r� r, I _ ADVERTISING T !_! J J P teal 0y 0002 Fame. Caadee Nov 26 2012,10 52 am �1E2_�'�d��w�'� �. Q08 AtiQO1C0 (ZiilttN!b Salasverson'. UANSAUGOW Pd ne Ad 435292910 Account Information - - - —• Ad Information Phone%: (714)754-5221 Stan date 11-30-12 S13e 1x 114670 Name: City of Costa Mesa (Parent) Siopdat9 11-30-12 Billed shoe 11.50 TCNInc6 Address: 77 Fair Or Insertions 1 Keyword Costa Mesa, CA 92626 <'. Rale code &Legal Costa Mesa Ad type Liner _ Taken by 0602 Pothole Gamino AcctM: C000067980 '. Class: 13000 Legal Notices es --- Grass pace: $ 109.25 . ?" Pubs:TCNDaIty Pilot Net price: $ 109.25 Client, City of Costa Mese-City Clerk And Due: 5109.25 Placed by: Brenda Green E Nota: Amount Due is subject to Fax C: (714)754-0942 cnwge due b asccunu. cella - .0 news tees. aromm<narase Ad Copy: ORDINANa NO. 12 9 SUMMARY OFADOPTID DMINAN(E add Ie the City ranee, n Fax sb Ned,. tae will aero mn dHitt 39 days ate of edoo iR 1 the City of 3NEEN, Ity Clerk of We .. . _ -.. ad proof pg.I --- rgoo Angeles slimes CLASSIFIED ADVERTISING P®oy 0W2Panicla Gamins Nov 28.201210.52ar, $.lest !sert Ad $35292970 Pnone _. ad Proof Pg. 2.._..