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HomeMy WebLinkAbout2000-13 - Urgency Ordinance Authorizing an Amendment to the Contract Between the City and the Board of Administration of the California Public Employees' Retirement SystemORDINANCE NO. 2000_13 • AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does hereby ordain as follows: Section 1. That an amendment to the contract between the City of Newport Beach 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 set out in full. Section 2. The Mayor of the City of Newport Beach is hereby authorized, empowered and directed to execute said amendment for and on behalf of the City. Section 3. This Ordinance shall take effect immediately. Section 4. The City Council finds and declares this Ordinance to be necessary as an emergency measure for the preservation of the public peace, health or safety as follows: (a) The City Council has entered into numerous labor agreements pursuant to which the •City has committed to provide employees with the retirement benefit (benefit) represented by the contract attached as Exhibit "A" effective July 1, 2000 or as soon thereafter as possible. (b) The City has experienced significant and unexpected delays in processing the proposed contract through the Public Employees Retirement System. (c) In light of these delays, the City could be considered to have breached these labor agreements if it failed to provide the benefit pursuant to an ordinance and contract that are effective as soon as possible. (d) The City would be exposed to potential damages or possible disruptions in providing municipal services if the City breached the labor agreements. (e) City Council adoption of this Ordinance as an emergency measure is the only way the City can ensure that it has faithfully performed obligations pursuant to these labor agreements and the only way to ensure no disruption or reduction in municipal services. • Adopted and approved this 11`h day of July 2000 by the following vote: AYES, COUNCILMEMBERS Glover, Debay, Ridgeway, O'Neil, NAYS, COUNCILMEMBERS None Mayor Noyes ABSTAIN, COUNCILMEMBERS None ABSENT, COUNCILMEMBERS Tho son, Adams John . Ngfy6s, Ma or Attest: City Clerk CaIPERS California Public Employees' Retirement System EXHIBIT Between the Board of Administration California Public Employees' Retirement System and tine City Council City of Newport Beach 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, 1945, and witnessed April 27, 1945, and as amended effective March 1, 1948, November 1, 1951, April 1, 1956, October 31, 1970, September 18, 1971, December 11, 1971, September 24, 1977, December 18, 1977, June 17, 1978, March 24, 1979, June 30, 1979, January 12, 1989, December 2, 1989 and June 12, 1996 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 June 12, 1996, and hereby replaced by the following paragraphs numbered 1 through 12 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. 3 .11 .EASE DO NOT SIGN "EXHIBIT ONLY' • 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945 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. Ocean Beach Lifeguards (included as local safety members); d. Employees other than local safety members (herein referred to as local miscellaneous members). 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. CADETS; AND b. RESERVE OFFICERS. 5. 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). 6. 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). 7. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20421 ( "Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). b. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. A �• ?LEASE DO NOT SIGN "EXHIBIT ONE, C. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. g. Section 20042 (One -Year Final Compensation). B. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on September 24, 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. 9. 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. 10. 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. b. 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 safety members. C. 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. 5 • d. 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. 11. 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. 12. 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 `� \ PUBLIC EMPLOYEES' RETIRE SYSTEM ``- . RY KENNETH W ACTUARIAL PUBLIC EME day of CITY COUNCIL CITY OF NEWPORT BEACH BY ii�ON, CHIEF PRESIDING OFFIC.;. ILO YER SERVICES DIVISION ES' RETIREMENT SYSTEM G* 0 ibss Date O�IF, �O Attest: Clerk AMENDMENT PERS- CON•702A (Rev. 6\96) In • 1] STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2000 -13 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 11th day of July, 2000, and that the same was so passed and adopted by the following vote, to wit: Ayes: Glover, Debay, Ridgeway, O'Neil and Mayor Noyes Noes: None Absent: Thomson, Adams Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 12th day of July 2000. (Seal) CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2000 -13 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of general circulation on the following date, to wit: July 8, 2000. %% In witness whereof, I have hereunto subscribed my name this�'1, day of O OL 2000. '9 -A City Clerk City of Newport Beach, California City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2000 -13 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of general circulation on the following date, to wit: July 8, 2000. %% In witness whereof, I have hereunto subscribed my name this�'1, day of O OL 2000. '9 -A City Clerk City of Newport Beach, California