HomeMy WebLinkAboutOrdinance 2726 N.C.S. 05/18/20201
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
EFFECTIVE DATE
OF ORDINANCE
June 18, 2020
Introduced by
Kevin McDonnell
Seconded by
Kathy Miller
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF PETALUMA AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies
and their employees in the Public Employees' Retirement System (PERS) by the execution of a
contract, and sets forth the procedure by which public agencies may elect to subject themselves
and their employees to amendments to said Law; and
WHEREAS, the City of Petaluma, by action of the City Council in accordance with the Public
Employee's Retirement Law, has entered into a contract with PERS effective January 1, 1950, and
subsequently amended, with the most recent amendment occurring July 02, 2018, which PERS
contract provides for participation of the City and its employees in PERS; and
WHEREAS, one of the steps in the procedures to amend a public agency contract with PERS
is the public agency governing body's adoption of a resolution giving notice of its intention to
approve a contract amendment, which resolution shall contain a summary of the proposed
contract change; and
WHEREAS, on April 20, 2020, the Petaluma City Council adopted Resolution No. 2020-047
N.C.S. giving the following summary of a proposed change to the City's PERS contract in
accordance with the agreement reached with City bargaining Unit 7 regarding such change and
the Public Employees' Retirement Law to provide for contributions of specified unit members to the
City's cost of participating in the City's PERS agreement:
To become subject, from and after the effective date of the amendment, to Section 20516
of the Public Employees' Retirement Law (Employees Sharing Additional Cost) to provide for
employee cost sharing of 2% for classic local fire members in the International Association of
Fire Fighters Unit 7; and
WHEREAS, in accordance with Sections 20471 and 20474 of the Public Employees' Retirement
Law, adoption of Resolution No. 2020-047 N.C.S. giving notice of a proposed amendment to the
Ordinance No. 2726 N.C.S.
Page 1
1 City's PERS contract must occur not less than 20 days prior to the date at which this ordinance is
2 adopted; and
3
4 WHEREAS, in accordance with Section 20474 of the PERS Law, an election of the employees
5 affected by the proposed amendment to the City's PERS contract will be conducted and
6 canvassed, and this ordinance may only be adopted if a majority of the affected employees do
7 not vote to disapprove of the proposed amendment;
8
9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
10
11 Section 1: An amendment of the contract between the City Council of the City of Petaluma
12 and the Board of Administration, California Public Employees' Retirement System is hereby
13 authorized, a copy of said amendment being attached hereto, marked "Exhibit A," and by such
14 reference made a part hereof as though herein set out in full.
15
16 Section 2: The Mayor is hereby authorized, empowered, and directed to execute said
17 amendment for and on behalf of the City.
18
19 Section 3: In accordance with Section 20474 of the Public Employees' Retirement Law, the
20 City and its affected employees shall become subject to the amendment attached as Exhibit A
21 beginning the first day of the first pay period following the effective date of this ordinance and
22 subsequent effective date of amendment.
23
24 Section 4: This Ordinance shall take effect thirty (30) days after the date of its adoption.
25
26 Section 5: If any section, subsection, sentence, clause, phrase or word of this ordinance is for
27 any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent
28 jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity
29 of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares
30 that it would have passed and adopted this ordinance and each and all provisions thereof
31 irrespective of the fact that any one or more of said provisions be declared unconstitutional,
32 unlawful or otherwise invalid.
33
34 Section 6: The City Clerk is hereby directed to publish or post this ordinance or a synopsis for
35 the period and in the manner provided by the City Charter and other applicable law.
36
37 INTRODUCED and ordered posted this 20th day of April 2020.
38
39 ADOPTED this 18th day of May 2020 by the following vote:
40
41 Ayes: Mayor Barrett, Vice Mayor Fischer, Healy, Kearney, King, McDonnell, Miller
42 Noes: None
43 Abstain: None
44 Absent: None
Ordinance No. 2726 N.C.S. Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
ATTEST:
Claire Cooper, CMC, City Clerk
Teresa Barrett, Mayor
APPROVED AS TO FORM:
Eric Danly, City Attorney
Ordinance No. 2726 N.C.S.
Page 3
California
Public Employees' Retirement System
A-M-ENDMENT TO CONTRACT
Between the
•. • of •
California•Employeesf Retirement System
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, January 16, 2003, October 7, 2008, November 15, 2012,
December 28, 2012, June 19, 2017, February 26, 2018 and July 2, 2018 which provides for
participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective July
2, 2018, and hereby replaced by the following paragraphs numbered 1 through 17
inclusive:
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 classic local
miscellaneous members entering membership in the miscellaneous classification
on or prior to December 28, 2012, age 60 for classic local miscellaneous members
entering membership for the first time in the miscellaneous classification after
December 28, 2012, age 62 for new local miscellaneous members, age 50 for
classic local safety members entering membership in the safety classification on or
prior to November 15, 2012, age 55 for classic local safety members entering
membership for the first time in the safety classification after November 15, 2012
and age 57 for new local safety members.
Ordinance No. 2726 N.C.S. Page 4
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. 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 but not limited to interest, penalties and
attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or
formulas under this Contract that are different than the retirement
benefits, provisions or formulas provided under the Public Agency's prior
non-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including without
limitation arbitration, administrative hearing, or litigation) between Public
Agency and its employees (or their representatives) which relates to
Public Agency's election to amend this Contract to provide retirement
benefits, provisions or formulas that are different than such employees'
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 different than
the retirement benefits, provisions or formulas provided under this
Contract and provided for under the California Public Employees'
Retirement Law.
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);
C. Employees other than local safety members (herein referred to as local
miscellaneous members).
Ordinance No. 2726 N.C.S. Page 5
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:
6. The percentage of final compensation to be provided for each year of credited prior
and current service as a classic local miscellaneous member entering membership
in the miscellaneous classification on or prior to December 28, 2012 shall be
determined in accordance with Section 21354 of said Retirement Law (2% at age
55 Full).
7. The percentage of final compensation to be provided for each year of credited
current service as a classic local miscellaneous member entering membership for
the first time with this agency in the miscellaneous classification after December 28,
2012 shall be determined in accordance with Section 21353 of said Retirement Law
(2% at age 60 Full).
8. The percentage of final compensation to be provided for each year of credited prior
and current service as a new local miscellaneous member shall be determined in
accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
9. The percentage of final compensation to be provided for each year of credited prior
and current service as a classic local safety member entering membership in the
safety classification on or prior to November 15, 2012 shall be determined in
accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
10. The percentage of final compensation to be provided for each year of credited
current service as a classic local safety member entering membership for the first
time with this agency in the safety classification after November 15, 2012 shall be
determined in accordance with Section 21363.1 of said Retirement Law (3% at age
55 Full).
11. The percentage of final compensation to be provided for each year of credited prior
and current service as a new local safety member shall be determined in
accordance with Section 7522.25(d) of said Retirement Law (2.7% at age 57 Full).
12. 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) for classic local safety
members entering membership on or prior to November 15, 2012 and classic
local miscellaneous members entering membership on or prior to December
28, 2012.
C. Section 20965 (Credit for Unused Sick Leave).
Ordinance No. 2726 N.C.S. Page 6
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.
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 21574 (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).
k. Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full
formula) and Section 20037 (Three -Year Final Compensation) are applicable
to classic local safety members entering membership for the first time with
this agency in the safety classification after November 15, 2012.
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to classic local miscellaneous members
entering membership for the first time with this agency in the miscellaneous
classification after December 28, 2012.
Section 20516 (Employees Sharing Additional Cost):
From and after June 19, 2017 and until July 2, 2018, 3% for local
miscellaneous members in the American Federation of State, County and
Municipal Employees Unit 1 Confidential, American Federation of State,
County and Municipal Employees Unit 2 Maintenance, American Federation
of State, County and Municipal Employees Unit 3 Clerical and Technical,
Petaluma Professional and Mid -Managers Association Unit 4 Professional,
Petaluma Professional and Mid -Managers Association Unit 9 Mid Managers,
and Petaluma Professional and Mid -Managers Association Unit 11
Confidential.
From and after February 26, 2018, 3% for local miscellaneous members in
the Unrepresented Executive Management group, Department Heads Unit 8
and Public Safety Mid -Management Association Unit 10.
Ordinance No. 2726 N.C.S. Page 7
From and after February 26, 2018, 3% for local safety members in the
Department Heads Unit 8 and Public Safety Mid -Management Association
Unit 10.
From and after July 2, 2018, 4% for local miscellaneous members in the
American Federation of State, County and Municipal Employees Unit 1
Confidential, American Federation of State, County and Municipal
Employees Unit 2 Maintenance, American Federation of State, County and
Municipal Employees Unit 3 Clerical and Technical, Petaluma Professional
and Mid -Managers Association Unit 4 Professional, Petaluma Professional
and Mid -Managers Association Unit 9 Mid Managers, and Petaluma
Professional and Mid -Managers Association Unit 11 Confidential.
From and after the effective date of this amendment to contract, 2% for
classic local fire members in the International Association of Firefighters, Unit
7.
The portion of the employer's contribution that the member agrees to
contribute from his or her compensation, over and above the member's
normal contribution ("Cost Sharing Percentage"), shall not exceed the
Employer Normal Cost Rate, as that rate is defined in the CaIPERS Actuarial
Valuation for the relevant fiscal year. If the Cost Sharing Percentage will
exceed the relevant Employer Normal Cost Rate, the Cost Sharing
Percentage shall automatically be reduced to an amount equal to, and not to
exceed, the Employer Normal Cost Rate for the relevant fiscal year.
13. 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.
14. 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.
15. 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
Ordinance No. 2726 N.C.S. Page 8
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.
16. 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.
17. 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 PETALUMA
BY BY
ARNITA PAIGE, CHIEF PRESIDING OFFICER
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID #5476407298 PERS-CON-702A
Ordinance No. 2726 N.C.S. Page 9