HomeMy WebLinkAbout2000-16 - Urgency Ordinance Authorizing an Amendment to the Contract Between the City and the Board of Administration of the California Public Employees' Retirement System.ORDINANCE NO. 2000 -16
• 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 September 1, 2000 or as soon thereafter as possible.
(b) The City has experienced significant and unexpected delays in determining how to
provide the benefit in the "cost neutral" fashion required by pre- existing labor agreements.
(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 22nd day of August 2000 by the following vote:
• Attest:
City Clerk
AYES, COUNCILMEMBERS Thomson, Glover, Adams, Debay, Ridgeway,
NAYS, COUNCILMEMBERS None O'Neil, and Mayor Noyes
ABSTAIN, COUNCILMEMBERS Non/?
John E.
•
Ca1PERS
California
Public Employees' Retirement System
Exhibit A
Between the
Board of Administration
California Public ]Employees' Retirement System
and the
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, June 12, 1996 and July 12, 2000
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 July 12, 2000, 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 55 for local safety
members.
• 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 21363.1 of said Retirement Law
(3% at age 55). The required member contribution rate is 9% of
reportable compensation.
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.
• 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. 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).
8. 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 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.
• 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 99 day of �.
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPORT BEACH
•
BY
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT
PERS- CON•702A (Rev. 8\96)
BY
PRESIDING OFFICER
Witness Date
Attest:
Clerk
•
STATE OF CALIFORNIA }
COUNTY OF ORANGE } as.
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 -16 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
22nd day of August, 2000, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil and Mayor Noyes
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 23rd day of August 2000.
(Seal)
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF NEWPORT BEACH }
City Clerk
City of Newport Beach, California
CERTIFICATE OF PUBLICATION
as.
I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby
certify that Ordinance No. 2000 -16 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: August 26, 2000.
In witness whereof, I have hereunto subscribed my name this 4W4 day of
�' 2000.
41 M- �LA"
City Clerk
City of Newport Beach, California