HomeMy WebLinkAboutOrd 2007-3085-A
ORDINANCE NO. 3085-A
URGENCY ORDINANCE OF THE CITY OF CHULA VISTA
AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
WHEREAS, the City has experienced unexpected revenue shortfalls for Fiscal Year 2008
and Fiscal Year 2009 and is seeking cost saving measures to balance the budget; and
WHEREAS, the City Manager and Office of Budget and Analysis have determined the
City could realize significant cost savings through an early retirement program; and
WHEREAS, the current California Public Employee Retirement Law allows an early
retirement incentive; and
WHEREAS, Government Code Section 20903 provides two years additional CalPERS
service credit to members who retire during a designated period; and
WHEREAS, the City must certify that it is its intention that if any early retirements are
granted after receipt of service credit pursuant to Section 20903, that any vacancies created or at
least one vacancy in any position in any department or other organizational unit shall remain
permanently unfilled, thereby resulting in an overall reduction in the workforce of the
department or organizational unit; and
WHEREAS, this benefit needs to be implemented as soon as possible to avoid possible
detrimental financial consequences to the City.
The City Council of the City of Chula Vista does ordain as follows:
Section 1. That an amendment to the contract between the City Council of the City of
Chula Vista and the Board of Administration, California Public Employees' Retirement System
to provide Section 20903 (two years) to local miscellaneous and safety members is authorized by
this Ordinance. A copy of the amendment is attached and marked as Exhibit A, and by this
reference is made a part of the Ordinance.
Section 2. The Mayor of the City of Chula Vista is hereby authorized, empowered, and
directed to execute the amendment for and on behalf of the City.
Section 3. Pursuant to Section 311 of the Chula Vista Charter, the City Council hereby
declares that this Ordinance shall be effective immediately as an urgency measure upon its first
reading and adoption ifit passes by a four-fifth's vote of the City Council. This Ordinance shall
expire when Ordinance No. 3084 takes full force and effect.
p7fltted by;;2:J
Marcia RaSKin
Human Resources Director
Approved as to form by
(A-l~
Ann Moore
City Attorney
Ordinance No. 3085-A
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 6th day of November, 2007, by the following vote:
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ATTEST:
Chcry~~
f Susan igelow,
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
)
)
)
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certifY that the foregoing
Ordinance No. 3085-A was passed as an urgency measure on the 6th day of November 2007.
Executed this 6th day of November 2007.
L, ~t'AJ.' ~:u
tJ v' usan Bigelow, MM , ity Clerk
.___~J
Ordinance No. 3085-A
pag..:A.
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CalPERS
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Chula Vista
.
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
October 1, 1948, and witnessed August 31, 1948, and as amended effective October 1,
1951, November 1, 1955, January 1, 1960, January 1, 1961, September 1, 1967,
September 28, 1973, October 4, 1973, October 8, 1976, April 16, 1981, January 8,
1982, September 28, 1984, July 3, 1987, October 13, 1989, September 27, 1990,
November 16, 1990, January 4, 1991, September 6, 1991, October 7, 1994, June 28,
1995, May 29,1998, April 7, 2000, July 1, 2002, December 27,2002, June 27, 2003
and August 20, 2004 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 15 are hereby stricken from said contract as executed
effective August 20, 2004, and hereby replaced by the following paragraphs
numbered 1 through 15 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 60 for local miscellaneous members and age 50 for local safety
members.
EXHIBIT A.
O d. N 3085 A ~ . ,.,' " .,-
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2. Public Agency shall participate in the Public Employees' Retirement
System from and after October 1, 1948 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. Effective October 4, 1993 and prior to January 1, 1975, those members
who were hired by Public Agency on a temporary and/or seasonal basis
not to exceed 6 months were exciuded from PERS membership by
contract. Govemment Code Section 20336 superseded this contract
provision by providing that any such temporary and/or seasonai
employees are excluded from PERS membership subsequent to January
1, 1975. Legislation repealed and replaced said Section with Government
Code Section 20305 effective July 1, 1994.
6. This contract shall be a continuation of the contract of the Montgomery
Fire Protection District, hereinafter referred to as "Former Agency". The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred January 1, 1986.
a. All benefits provided under this contract shall apply to all past
service for former employees of the Montgomery Fire Protection
District.
EXHIBIT A
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Ordinance No. 3085-A
Page 5
7. 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 December 27, 2002 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
8. 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 December 27, 2002 shall be determined in
accordance with Section 21354.3 of said Retirement Law (3% at age 60
Full).
9. 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).
10. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20965 (Credit for Unused Sick Leave).
b. Section 20425 ("Local Police Officer" shall include employees of a
police department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be
local safety members on or before September 28, 1973).
c. Section 21325 (One-Time 3% to 15% Increase For Local
Miscellaneous Members Who Retired or Died Prior to January 1,
1974). Legislation repealed said Section effective January 1, 2002.
d. Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only.
e. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 213622% @ 50 Full formula for local safety members.
From and after September 28, 1984 to July 1, 1985 the safety
employees of Public Agency shall be assessed an additional
0.341 % of their compensation for a total contribution rate of 9.341 %
pursuant to Govemment Code Section 20516.
f. Section 21574 (Fourth Level of 1959 Survivor Benefits).
g. Section 20042 (One-Year Final Compensation).
EXHIBIT A.
Ordinance No. 3085-A
Page 6
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h. Section 20426 ("Local Police Officer" shall include any officer or
employee of a police department employed to perform
communication duties and who elected to become a local safety
member on August 25, 1973).
1. Section 21024 (Military Service Credit as Public Service).
j. Section 21623.5 ($5,000 Retired Death Benefit).
k. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance) for local miscellaneous members only.
1. 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
Govemment Code Section 20434).
m. Section 20903 (Two Years Additional Service Credit).
11. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
October 8, 1976. 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.
12. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and Mure service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
13. 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.
EXHIBIT A
Ordinance No. 3085-A
Page 7
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.
14. 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.
15. 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' RE'vIREMENT SYSTEM CITY OF CHULA VISTA
-, ,
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BY .' "
LORI MCGARTl:A,ND, CHIEF
EMPLOYER S:ERvICES DIVISION
PUBLIC EMPl-OYEES' RETIREMENT SYSTEM
BY .' ,
PRESIDING OFFJC~
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Witness oate
Attest:
Clerk
AMENDMENT ER# 0195
PERS-CON-702A(Rev.10\05)
EXHIBIT A