HomeMy WebLinkAbout602ORDINANCE 602
AN ORDINANCE OF THE CITY COUNCIL OF THE TOWN OF
LOS ALTOS HILLS AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE TOWN OF LOS ALTOS HILLS AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM
WHEREAS, the Town of Los Altos Hills ("Town") entered into a contract with the Board of
Administration of the California Public Employees' Retirement System ("Ca1PERS") effective
July 1, 1967, amended effective June 1, 1976, July 1, 1998, January 1, 2006, September 1, 2011,
and January 1, 2013, which provides for participation in Ca1PERS ("Contract"); and
WHEREAS, the Ca1PERS' Office of audit services ("OFAS") conducted and provided a Public
Agency Review ("PAR") in March of 2021; and
WHEREAS, the purpose of the PAR was to determine how the Town applies the retirement
exclusion in the Contract for all hourly employees ("Contract Exclusion"); and
WHEREAS, the Town is adhering to the membership eligibility requirements in Government
(Gov.) Code section 20305 and amending the Contract because the Contract Exclusion for all
hourly employees is invalid as it is superseded by Gov. Code section 20305(b); and
WHEREAS, the Town now desires to remove the Contract Exclusion from the Contract.
NOW, THEREFORE, the City Council of the Town of Los Altos Hills does ORDAIN as
follows:
Section 1.
FINDINGS. The City Council of the Town of Los Altos Hills finds that all Recitals are true and
correct and incorporated herein by reference.
Section 2.
CONTRACT AMENDMENT. That an amendment to the contract between the Town of Los
Altos Hills and the Board of Administration, California Public Employees' Retirement System is
hereby authorized, a copy of said amendment being attached hereto as Exhibit A, and by such
reference made a part hereof as though herein set out in full.
Section 3.
The City Manager of the Town of Los Altos Hills is hereby authorized, empowered, and directed
to execute said amendment for and on behalf of the Town.
Section 4.
SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or
circumstance is held invalid or unconstitutional, the remainder of this 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 of the Town of Los Altos Hills hereby declares that it would have
passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof
Ordinance 602 Page 1
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 AND PUBLICATION. This ordinance shall become effective thirty (30)
days from the date of its adoption. Within 15 days after the passage of this ordinance, the Town
Clerk shall cause the Ordinance or a summary thereof to be published once with the names of
those Town Councilmembers voting for or against it in a newspaper of general circulation in the
Town of Los Altos Hills, as required by the law.
Section 6.
The City Council hereby finds approval of this Ordinance is exempt from the California
Environmental Quality Act (Public Resources Code §§ 21000 et seq., "CEQA," and 14 Cal.
Code Reg. §§ 15000 et seq., "CEQA Guidelines") as this action does not qualify as a "Project"
as defined in California Government Code Section 15378(b) of the Guidelines for California
Environmental Quality Act."
INTRODUCED: August 18, 2022
PASSED: September 15, 2022
AYES: Mayor Tyson, Vice Mayor Swan, Councilmembers Mok, Schmidt and
Tankha
NOES: None
ABSTENTIONS: None
ABSENT: None
ATTEST:
APPROVED AS TO FORM:
wcll�
City Attorney
5177019.1
BY:
ayor George T n
Ordinance 602
Page 2
Calf RS
California
Public Employees' Retirement System
0 Between the
Board of Administration
California Public Employees' Retirement System
and the
Town Council
Town of Los Altos Hills
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,
1967, and witnessed June 16, 1967, and as amended effective June 1, 1976, July 1,
1998, January 1, 2006, and September 1, 2011, which provides for participation of
Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective September 1, 2011, 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 55 for classic local miscellaneous members entering
membership in the miscellaneous classification on or prior to September
1, 2011, age 60 for classic local miscellaneous members entering
membership for the first time in the miscellaneous classification after
September 1, 2011, and age 62 for new local miscellaneous members.
Ordinance 602 Page 3
2. Public Agency shall participate in the Public Employees' Retirement
System from and after July 1, 1967, 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. Employees other than local safety members (herein referred to as
local miscellaneous members).
Ordinance 602 Page 4
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:
a. SAFETY EMPLOYEES; AND
b. - ELECTIVE OFFICIALS.
6. Removal of the exclusion of "Persons Compensated On An Hourly Basis,"
pursuant to Section 20503, is declarative of agency's previous
interpretation and does not mandate any new classes of employees into
membership.
7. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
entering membership in the miscellaneous classification on or prior to
September 1, 2011, shall be determined in accordance with Section
21354 of said Retirement Law, subject to the reduction provided therein
for service prior to March 31, 1976, termination of Social Security, for
members whose service has been included in Federal Social Security
(2% at age 55 Full and Modified).
8. 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 in the miscellaneous classification after
September 1, 2011, shall be determined in accordance with Section
21353 of said Retirement Law (2% at age 60 Full).
9. 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).
10. Public Agency elected and elects to be subject to the following optional
provisions;
a. Sections 21624 and 21626 (Post -Retirement Survivor Allowance).
b. Section 21024 (Military Service Credit as Public Service).
C. Section 21574 (Fourth Level of 1959 Survivor Benefits).
Ordinance 602 Page 5
d. Section 20475 (Different Level of Benefits): Section 21353 (2% @
60 Full formula) is applicable to classic local miscellaneous
members entering membership for the first time with this agency in
the miscellaneous classification after September 1, 2011.
e. Section 20503 (To Remove the Exclusion of "Persons
Compensated On An Hourly Basis," prospectively from the effective
date of this amendment to contract).
11. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
June 1, 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 future service liability with
respect to local miscellaneous 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.
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.
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.
Ordinance 602 Page 6
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 0MINISTRATION
PUBLIC EM ,(EES' RETIREMENT SYSTEM
tJ '
BY VO
MELODY BENAVIDEZ
PENSION CONTRACT
PROGRAMS DIVISION
PUBLIC EMPLOYEES'
IEF
JD PREFUNDING
AMENDMENT CaIPERS ID #4185235217
PERS-CON-702A
NT SYSTEM
TOWN COUNCIL
TO" OF LOS ALTOS HILLS
BY kA
PRESIDINLLOFFICER
Witness Date
Attest:
Clerk
Ordinance 602 Page 7