Ordinance - 2004ran
ORDINANCE NO. 12004
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE
CITY OF WEST COVINA AND DECLARING THE URGENCY
THEROF.
WHEREAS, the City of West Covina is a contracting Public Agency of the Public
Employees' Retirement System; and
WHEREAS, California Government Code Section 20903 provides that when the governing
body of a contracting agency determines that because of an impending curtailment of, or change in
the manner of performing service, the best interests of the agency would be served by encouraging
the retirement of local members, the governing body may grant eligible employees two years
additional service credit when certain conditions specified in said section exist; and
WHEREAS, said Section requires the governing body to designate job classification(s),
department(s), or unit(s) eligible for this benefit and to designate a time period during which an
eligible member must retire to receive the additional credit; and
WHEREAS, said period may begin as early as one day following contract amendment, be
no fewer than 90 days, and end no more than 120 days following the governing body's adoption of
an ordinance; and
WHEREAS, the City Council, as the governing body of the City of West Covina has
determined that because of a change in the manner of performing service, the best interests of the
Public Agency would be served by encouraging retirement of local members; and
WHEREAS, the City Council desires to provide two (2) years of additional service credit
pursuant to Section 20903 for eligible local miscellaneous members; and
WHEREAS, eligible employees are limited to the classification of Environmental Services
Director in the Environmental Services Department.
NOW, THEREFORE, BE IT RESOLVED, that said governing body determines that the
period in which eligible members, who meet the above -stated conditions, must retire to be entitled
to the additional credit in the period beginning on September 29, 1997 and ending on December 30,
1997; and, that to be entitled to the additional credit, eligible members, who meet the conditions,
must be employed in the classification of Environmental Services Director on the date of adoption
of this Resolution.
SECTION 1. That an amendment to the contract between the City Council of the City of
• West Covina 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 Council is hereby authorized, empowered, and
directed to execute said amendment for an on behalf of said agency.
millerord.doc
•
SECTION 3. This Urgency Ordinance shall take effect upon adoption, and the contract
r
amendment effective the following day; and, prior to the expiration of 15 days from the passage
thereof shall be published at least once in the San Gabriel Valley Tribune, a newspaper of general
circulation, published and circulated in the County of Los Angeles. This Ordinance shall be
terminated and of no force and effect until such time as Ordinance No. 2004 becomes
effective.
APPROVED AND ADOPTED this 23rd day of September, 1997.
` ' •
ATTEST:.
City Clerk
I HEREBY CERTIFY that the foregoing was duly adopted by the City Council on the 23rd day of
September 1997.
AYES: Herfert, Howard, t1elendez, Touhey
NOES: None
ABSENT: Wong
ABSTAIN: None
City Cleplf
APPROVED AS TO FORM:
0
City Attorney
millerord.doc
EXHIBIT
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF WEST COVINA
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective July 1, 1966, and witnessed May 26, 1966, and as
amended effective November 1, 1968, October 1, 1970, September 16, 1977, December 11,
1978, January 1, 1979, June 1, 1983, December 16, 1983, December 16, 1984, December 16,
1987, February 16, 1989, July 1, 1989, June 17, 1992, January 6, 1994 and June 24, 1997 which
provides for participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed effective June
24, 1997, 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 and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after July 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 of a contracting
agency.
3. 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).
PLEASE
4. 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; AND
b. EMPLOYEES AND FORMER EMPLOYEES RETAINING
RIGHTS, OR RECEIVING BENEFITS ON ACCOUNT OF
RETIREMENT FOR SERVICE UNDER THE LOCAL SYSTEM AS
OF JULY 1,1966.
5. Benefits being received under the local system on July 1, 1966 by persons retired
for disability shall be continued by the Public Employees' Retirement System at
the rate provided in the local system in accordance with Section 20481 of the
said Retirement Law, said rate being constituted as follows:
a. A monthly lifetime allowance in the amount of one-half of the retired
person's basic salary at the date of disability retirement reduced by the
worker's compensation payments, each month during the retired person's
entitlement to such payment.
b. A $500 death benefit payable upon death of the retired person described
above.
6. Public Agency, in accordance with Section 20685 of the Government Code, shall
provide that the normal rate of contribution for those employees who were
members of the Local Retirement System be based on age at entry into said local
system.
7. 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.
8. This contract shall be a continuation of the contract of the San Gabriel Valley Fire
Authority. A portion of the function of the San Gabriel Valley Fire Authority has
been transferred to the City of West Covina. The accumulated contributions,
assets and liability for prior and current service shall be merged pursuant to
Section 20508 of the Government Code. Such merger occurred February 1, 1989.
9. The percentage of final compensation to be provided for each year of credited
prior and current service as a local miscellaneous member shall be determined in
accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
10. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
11. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
b. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits).
Legislation repealed said Section effective September 27, 1979.
C. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
d. Section 20903 (Two -Years Additional Service Credit), Statutes of 1976.
Legislation repealed said Section effective January 1, 1979.
e. Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for local
safety members only.
f. Section 20042 (One -Year Final Compensation).
g. Section 21572 (Increased Level of 1959 Survivor Benefits) for local fire
members only.
h. Section 20965 (Credit for Unused Sick Leave).
i. Section 21622 ($600 Retired Death Benefit) for local fire members only.
j. Section 21024 (Military Service Credit as Public Service), Statutes of
1976 for local fire members only.
k. Section 20903 (Two Years .Additional Service Credit) for local
miscellaneous members.
12. Public Agency, in accordance with Government Code Section 20790, ceased to be
an "employer" for purposes of Section 20834 effective on September 16, 1977.
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.
.,e% .Y.ae
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
BOARD OF ADMINISTRATION -. -J,
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
;.l
q
.J
KENNETH W1 N LkRZION, CHIEF
ACTUARIk EMPLOYER SERVICES DIVISION
PUBLIC 1;&LOYEES' RETIREMENT SYSTEM
day of , 19.
CITY COUNCIL
OF THE
CITY OF WEST COVINA
BY
PRESIDING OFFICER
dI
Witness Date
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA '94229-2709
(916) 326-3420
ft
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 7507
I hereby certify that in accordance with Section 7507 of the Government Code the future annual
costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been
made public at a public meeting of the City Council
(governing body)
of the C i
on
(date)
Resolution/Ordinance.
Date
of West Covina
(public agency)
which is at least two weeks prior to the adoption of the
Gl Qht,Q.vt�
erk/Secretary
Titl
A
PERS-CON-12A (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709 L
(916) 326-3420
CERTIFICATION'?
OF COMPLIANCE WITH I
GOVERNMENT CODE SECTION 20903 ----- -
In accordance with Government Code Section 20903 and the contract between the. Public
Employees' Retirement System, the City Council of the City of West Covina hereby certifies
that:
1. Because of an impending curtailment of, or change in the manner of performing service., the
best interests of the agency will be served by granting such additional service credit.
2. Payment shall be made of the amount equal to the actuarial equivalent of the difference
between the allowance the member receives after receipt of such service credit and the
amount the member would have received without such service credit with respect to all
eligible employees who retire during the specified period.
3. It has elected to become subject to Section 20903 because of impending mandatory
transfers, demotions, and layoffs that constitute at least 1 percent of the job classification,
department or organizational unit, as designated by the governing body, resulting from the
curtailment of, or change in the manner of performing, its services.
4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created
.by retirements under this section or at least one vacancy in any position in any department
or other organizational unit permanently unfilled thereby resulting in an overall reduction
in the work force of such department or organizational unit.
THEREFORE, the City Council of the City of West Covina hereby elects to provide the benefits
of Government Code Section 20903 to all eligible members who retire within the designated
period, SpptPmbPr 29, 1997 through Dpcpmbpr 3n, 1997
CITY COUNCIL
OF THE
CITY OF WEST COVINA
04
. Officer\
A
.4 -A _,,tw Li mg" IPOZA
ecretary
Date
2yr certification -public agency (Rev. 1/96)