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HomeMy WebLinkAboutOrdinance 2313 N.C.S. 10/06/20081 2 3 4 5 6 7 8 EFFECTIVE DATE OF ORDINANCE October 6, 2008 Introduced by Mike O'Brien ORDINANCE NO. 2313 N.C.S. Seconded by Teresa Barrett URGENCY ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF PETALUMA AND BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM ALLOWING THE CITY TO OFFER TWO ADDITIONAL YEARS OF SERVICE CREDIT TO MISCELLANEOUS, POLICE AND FIRE EMPLOYEES WHEREAS, on September 15, 2008, the City Council adopted Resolution No. 2008-185 N.C.S., a Resolution of Intention to Approve an Amendment to Contract between the Board of Administration of the California Public Employees Retirement System ("PERS") and the City Council of the City of Petaluma; and, WHEREAS, on September 15, 2008, the City Council introduced an Ordinance authorizing the amendment to the City's contract with PERS to implement the contract amendment identified in the Resolution of Intention; and, WHEREAS, the contract amendment which is the subject of the Resolution of Intention, the Ordinance introduced September 15, 2008 and this Ordinance would allow the City to provide two years additional service credit pursuant to Government Code Section 20903 in cases in which doing so would permit retirement of certain miscellaneous members and local safety members of the City's workforce; and, WHEREAS, the City recently identified revenue shortfalls and a severe imbalance with projected expenditures in its General Fund account sufficient to have required the City to delay adoption of a General Fund budget for Fiscal Year 2008-2009 until accurate revenue projections and cost-cutting measures can be identified; and, WHEREAS, employee salaries and benefits comprise approximately 78% of general fund expenditures; and, WHEREAS, all possible cost-cutting measures applicable to programs and services have been identified by City staff and management, but are believed by City management to be insufficient to reconcile general fund expenditures with projected revenue for Fiscal Year 2008- 2009 without requiring additional reduction of the City workforce; and, WHEREAS, providing additional service credit to potential retirees could increase the number of City employees electing retirement and/or early retirement; and, Ordinance No. 2313 N.C.S. Page 1 WHEREAS, increasing the number of City employees electing retirement or early retirement could result in cost savings which may reduce the number of City employee layoffs which would otherwise be needed to balance Fiscal Year 2008-2009 budget expenditures with projected revenues; and, WHEREAS, expected cost savings from the salaries and benefits for employees eligible for retirement pursuant to the PERS contract modification would be significant, with the magnitude of savings dependent on the number of employees who might opt to participate; and, WHEREAS, implementing the amendment to the City's PERS contract to facilitate possible retirement of City employees at the earliest possible time will maximize cost savings in the current fiscal year; and, WHEREAS, the Petaluma City Council Rules, Policies and Procedures, § VI.13.2 provides that ordinances may be adopted by majority vote of the Council members present, except for those ordinances which require a larger number of votes for approval; and, WHEREAS, the Charter of the City of Petaluma provides at Article XII, Section 76A that an urgency ordinance may be adopted to take immediate effect when that ordinance is governed by a particular provision of state law prescribing the manner of its passage and adoption; and, WHEREAS, Government Code section 36937 provides that an urgency ordinance may take immediate effect if passed by a 4/5 majority of the membership of the City Council and is necessary for the immediate preservation of the public peace, health or safety. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Petaluma as follows: Section 1. Findings. The above recitals are hereby declared to be true and correct and findings of the City Council of the City of Petaluma. Section 2. Contract Amendment Authorized. An amendment to the contract between the City of Petaluma 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 herein set out in full. Section 3. Mayor Authorized to Execute Amendment. The Mayor of the City Council is hereby authorized and directed to execute said amendment for and on behalf of the City of Petaluma. Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. Section 5. Effective Date. This ordinance is hereby declared to be necessary for the immediate preservation of the public peace, health, and safety of the City of Petaluma on the basis of the facts stated herein and shall, after its initial passage by a four -fifths vote of the Ordinance No. 2313 N.C.S. Page 2 members of the City Council, take effect immediately and be in force from and upon the date of its passage. Section 6. Duration. This ordinance shall be of no further force and effect upon the effective date of Ordinance 2312 N.C.S., a non -urgency Ordinance of the City of Petaluma Authorizing an Amendment to the Contract between the City of Petaluma and Board of Administration of the California Public Employees' Retirement System, introduced on September 15, 2008. Section 7. Posting/Publishing of Notice. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ORDERED POSTED, and ADOPTED this day of 6th day of October 2008, by the following vote: AYES: Barrett, Nau, O'Brien, Vice Mayor Rabbitt, Mayor Torliatt NOES: None ABSENT: Freitas, Harris ABSTAIN: None ATTEST: Claire Cooper, CMC, City Clerk APPROVED AS TO FORM: Ordinance No. 2313 N.C.S. Page 3 CaNERS California Public Employees' Retirement System Between the Board of Administration California Public Employees' Retirement System and the City Council City of Petaluma 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 January 1, 1950, and witnessed October 18, 1949, and as amended effective August 1, 1959, November 1, 1959, March 1, 1965, June 1, 1965, April 1, 1969, January 1, 1974, November 1, 1980, November 1, 1981, July 1, 1982, January 1 1987, December 28, 1987, January 1, 1992, January 4, 1996, June 30, 1996, May 4, 1998, April 5, 1999, June 30, 2001 and January 16, 2003 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 January 16, 2003, 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. Ordinance No. 2313 N.C.S. Page 4 i 2. Public Agency shall participate in the Public Employees' Retirement System from and after January 1, 1950 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). 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: NO ADDITIONAL EXCLUSIONS 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 21362.2 of said Retirement Law (3% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21222.1 (One -Time 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. b. Section 20042 (One -Year Final Compensation). C. Section 20965 (Credit for Unused Sick Leave). d. Section 21326 (One -Time 1 % to 7% Increase For Local Miscellaneous Members Who Retired or Died Prior to July 1, 1974). Legislation repealed said Section effective January 1, 2002. Ordinance No. 2313 N.C.S. Page 5 e. Sections 21624, 21626 and 21628 (Post -Retirement Survivor Allowance) for local fire members only. Section 21024 (Military Service Credit as Public Service). g. Section 21674 (Fourth Level of 1959 Survivor Benefits) for local safety members only. h. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. 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). Section 20903 (Two Years Additional Service Credit). 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on November 1, 1980. 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. Ordinance No. 2313 N.C.S. Page 6 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 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY LORI MCGARTLAND,'CHIEF EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT ER# 0293 PERS-CON-702A (Rev. 10\05) day of CITY COUNCIL CITY OF PETALUMA Attest: Clerk Ordinance No. 2313 N.C.S. Page 7