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HomeMy WebLinkAboutAgenda Report - June 16, 2010 K-01AGENDA ITEM K-01 CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Ordinance No. 1831 Entitled, "An Ordinance of the Lodi City Council Authorizing an Amendment to the Contract Between the City Council of the City of Lodi and the Board of Administration of the California Public Employees' Retirement System" MEETING DATE: June 16,2010 PREPARED BY: City Clerk RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title) adopting the attached Ordinance No. 1831. BACKGROUND INFORMATION: Ordinance No. 1831 entitled, "An Ordinance of the Lodi City Council Authorizing an Amendment to the Contract Between the City Council of the City of Lodi and the Board of Administration of the California Public Employees' Retirement System" was introduced at the regular City Council meeting of May 19, 2010. ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of its introduction. Two readings are therefore required — one to introduce and a second to adopt the ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting; except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances must be read in full either at the time of introduction or at the time of passage, unless a regular motion waiving further reading is adopted by a majority of all council persons present. Cal. Gov't Code§ 36934. Ordinances take effect 30 days after their final passage. Cal. Gov't Code § 36937. This ordinance has been approved as to form by the City Attorney. FISCAL IMPACT: FUNDING AVAILABLE: RJ/jmr Attachment None. None required. I APPROVED: Konr�Bartlam, Interim City Manager N:Wdministration\CLERK\Council\COUNCOM\Ordinance) .DOC ORDINANCE NO. 1831 AN ORDINANCE OF THE LODI CITY COUNCIL AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF LODI AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENTSYSTEM THE CITY COUNCIL OF THE CITY OF LODI DOES ORDAIN AS FOLLOWS: SECTION 1. That an amendment of the contract between the City Council of the City of Lodi and the Board of Administration of the 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 therein set out in full. SECTION 2. The Mayor of the City of Lodi is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 4. This ordinance shall be published one time in the "Lodi News Sentinel", a daily newspaper of general circulation printed and published in the City of Lodi, and shall take effect thirty (30) days from and after its passage and approval. Approved this 16th day of June, 2010 PHIL KATZA IAN Mayor ATTEST: RAN IN JOHL City Clerk State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1831 was introduced at a regular meeting of the City Council of the City of Lodi held May 19, 2010, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held June 16, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, and Mounce NOES: COUNCIL MEMBERS —None ABSENT: COUNCIL MEMBERS — Mayor Katzakian ABSTAIN: COUNCIL MEMBERS — None further certify that Ordinance No. 1831 was approved and signed by the Mayor on the date of its passage and the same has been pub' pursuant to law. RAN OHL City Clerk Approved to Form: D. STEPHEN SCHWABAI?�R� City Attorney California Public Employees' Retirement System EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the city Council City of Lodi The Board cf 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 June 1, 1966, and witnessed April 27, 1966, and as amended effective July 6, 1966, May 1, 1970, July 1, 1973, July 1, 1977, April 1, 1991, July 7, 1993, June 30, 1996, November 15, 1998, June 12, 2000 and May 17, 2003 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective May 17, 2003, and hereby replaced by the following paragraphs numbered 1 through 15 inclusive: All words and terms used herein which are defined in the Public Employees` Retirement taw shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after June 1, 1966 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 cf 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 cf 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 locai 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. PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE HIRED JUNE 1,19660R THEREAFTER. 6. Assets heretofore accumulated with respect to members in the local retirement system have been transferred to the Public Employees' Retirement System 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 pensioners and annuitants under the local system on the effective date of the contract were recalculated, as authorized by Section 20481 of the Government Code, to conform with benefits applicable to persons retiring after the effective date of the contract except that no benefit which would have been payable under the continuation of the local system shall be reduced. 8. The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service prior to June 30, 1977, termination of Social Security, for members whose service has been included in Federal Social Security (2% at age 55 Full and Modified). 9. The percentage of final compensation to be provided for each year Cr credited prior and current service as a local safety member shail be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 10. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21536 (Local System Service Credit Included in Basic Death Benefit). b. Section 21222.1 (Special 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. C. Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for local miscellaneous members only. d. Section 21573 (Third Level of 1959 Survivor Benefits). e. Section 21427 (Improved Nonindustrial Disability Allowance) for local miscellaneous members only, Section 20042 (One -Year Final Compensation) for local safety members only. g, Section 20903 (Two Years Additional Service Credit). h. Section 20434 ("Local Fire Fighter" shall include any officer or employee of a fire department employed to perform firefighting, fire prevention, fire training, hazardous materials, emergency medical services, or fire or arson investigation services as described in Government Code Section 20434). i. Section 20965 (Credit for Unused Sick Leave). i Section 20938 (Limit Prior Service to Members Employed on Contract Date) for elected officials employed on November 15, 1998. k. Section 21024 (Military Service Credit as Public Service). 11. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes cf Section 20834 effective on July 1, 1977, Accumulated contributions of Public Agency shalt 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. 12, 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. 13, 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 cf contract to cover the costs of administering said System as it affects the employees cf 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. 14. 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. 15. 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 d BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF LODI BY LORI MCGARTLAND; CHIEF EMPLOYER SERVICES DIVISION PUBLIC EMPLOAFS' ' RETIREMENT SYSTEM AMENDMENT ER# 626 PEHS-CON-702A Ry PRESIDING OFFICER Witness Date Attest: