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Ordinance - 2217ORDINANCE NO.2217 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF WEST COVINA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHEREAS, the City of West Covina has made a determination regarding the issue of providing PERS Benefit of 3% @ 55 for local fire members entering membership for the first time in the fire classification; and WHEREAS, the City elects to pursue an Urgency Ordinance, which would take effect immediately following adoption, in order to realize the cost saving benefits of the Staffing for Adequate Fire & Emergency Response (SAFER) grant and allow the Human Resources Department to provide employment offers to new fire personnel under the PERS formula of 3% @ 55; and WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employee's Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES ORDAIN AS FOLLOWS: 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 1, and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the West Covina City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law. SECTION 4. This Urgency Ordinance shall take effect and be in force the date following its passage. APPROVED AND ADOPTED on this 19t" day of July 2011 ATTEST: City Clerk Laurie Carrico Mayor S ve H fert I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on the 7th day of June 2011. That thereafter said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 19th day of July 2011, by the following vote of the Council: AYES: Armbrust, Lane, Sanderson, Touhey, Herfert NOES: None ABSENT: None ABSTAIN: None rtv Clerk Laurie Carrico APPROVED AS TO FORM: 4ty AAttor(n/eiy,&rnofd Alvarez-Glasman Exhibit 1 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 West Covina 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 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, June 24, 1997, September 24, 1997, October 2, 1998, November 17, 1998, July 16, 1999, July 8, 2000, August 4, 2001, October 12, 2002, July 1, 2006 and January' 8, 2011 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 19 are hereby stricken from said contract as executed effective January 8, 2011, and hereby replaced by the following paragraphs numbered 1 through 20 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 January 8, 2011, age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after January 8, 2011, 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 amendment to contract and age 55 for local fire, members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 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. 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 b,ut not.limited to interest,, penalties and attorneys fees that may arise as a result of any of the following ' " (a) Public Ageyncy's election to provide retirement benefits, provisions or formulas under'this Contract that are different than the retirenient'benefits, provisions orformulas provided under the Public Agency's prior. non-CaIPERS'' retirement program. (b) Public Agency's election to amend this Contract to provide retirementbenefits, 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 d,ifferent 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 90:1).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); Q. 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.' 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. 6. 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 basis salary at the date of disability retirement reduced by the worker's compensation payments, each month during the retired person's entitlement to such payments. b. A $500 death benefit payable upon death of the retired person described above. 7. 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. 8. 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. 9. 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 Authorityhas transferred.. to, the City of West Covina. The been accurnuiated contributions,` assets and liability for prior and current service under the Former Agency's contract shall be merged pursuant to Section 20508 of th`e Government Code.�'Siufdh merger occurred February 1, 1989. 10. 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 July 1, 2006 shall be, determined in accordance with Section 21354 of said Retirement Law'(2% at age 55 Full). 11. 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 July 1, 2006 and'not entering- membership for'the first time in the miscellaneous classification after January 8, 2011 shall be determined" in`'accordance with Section 21354.4'of said Retirement Law (2.5.�o at age 55Full). 12. 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"blassification after January 8, 20.1.1 shallbe determined in accordance with Section 21353 of said Retirement Law' '(2% at age 60 Full). 13. 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 213622 of said Retirement Law (3% at age 50 Full). 14. The percentage of final.` -compensation to be provided for each year of credited cur'rent service as a locaPfire rierriberentering membership for the first time in the fire classification after"the effective date of this amendment to contract shall be determined'inaccordance with Section 21363.1 of said Retirement Law (3% at age 55 Full). 15. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21389 ` (Second` Opportunity to` Elect 1959 Survivor Benefits): '` Legislation repealed'; said' Section `effective September -27' 1979. b. Section 21536 Death Benefit). (Local System Service Credit Included in Basic C. Section 20903 (Two- Years miscellaneous members only. . I i 1 i b Additional Service Credit) for local d. Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for local safety members only. e. Section 20042 (One -Year Final Compensation). f. Section 20965 (Credit for Unused Sick Leave). g. Section 21622 ($600 Retired Death Benefit) for local fire members only. h. Section 21024 (Military Service Credit as Public Service). Section 21574 (Fourth Level of 1959 Survivor Benefits). j. Section 21548 (Pre -Retirement Option 2W Death Benefit) for local safety members only. k. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) is applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after January 8, 2011. Section 21363.1 (3% @ 55 Full formula) is applicable to local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 16. 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. 17. 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. 18. 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 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. 19. 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. 20. 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 of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF WEST COVINA BY DARRYL WATSON, CHIEF CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT ER# 630 PERS-CON-702A BY PRESIDING OFFICER Witness Date Attest: Clerk