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HomeMy WebLinkAbout529 • ORDINANCE NO. 529 AN ORDINANCE OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE TOWN COUNCIL OF THE TOWN OF LOS ALTOS HILLS AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. NOW,THEREFORE,the Town Council of the Town of Los Altos Hills does ordain as follows: SECTION 1. That an amendment to the contract between the Town Council of the Town of Los Altos Hills and the Board of Administration of the 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 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. SEVERABILITY The provisions of this chapter are hereby declared to be severable. If any provision, clause, word, sentence, or paragraph of this chapter or the application thereof to any person, establishment, or circumstance shall be held valid, such invalidity shall not affect the other provisions of this Chapter. SECTION 4.EFFECTIVE DATE This ordinance shall be effective 30 days after the date of its adoption. Before the expiration of 15 days after the adoption of this ordinance, a summary hereof shall be published once, with the name of the members of this Council voting for or against the same in a newspaper or general circulation published in the Town of Los Altos Hills. INTRODUCED: June 16,2011 PASSED: July 21,2011 AYES: Summit,Larsen,Mordo,Radford,Waldeck NOES: None ABSTENTIONS: None ABSENT: None Ordinance No.529 Page 1 BY: Ginger S mit,Mayor ATTEST: - City Clerk- APPROVED AS TO FORM: City Attorney Ordinance No.529 Page 2 CaIPERS EXHIBIT A California Public Employees' Retirement System A M M MENT TO CONTRACT 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 and January 1, 2006 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs I through 11 are hereby stricken from said contract'as executed effective January 1, 2006, and hereby replaced by the following paragraphs numbered 1 through 13 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 entering membership in the miscellaneous classification on or prior to the effective date of this amendment to contract and age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract Ordinance No.524 Page 3 PLEASE DO NOT SIGN "EXHIBIT ONLY" 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 (CalPERS) and its trustees, agents and employees, the CalPERS 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 attorneys 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-CalPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CalPERS 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. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the CalPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CalPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. Ordinance No.529 Page 4 PLEASE DO NOT SIGN "EXHIBIT ONLY" (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 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). 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; b. PERSONS COMPENSATED ON AN HOURLY BASIS; AND C. ELECTIVE OFFICIALS. 6. The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous member entering membership in the miscellaneous classification on or prior to the effective date of this amendment to contract 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). 7. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 8. 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). Ordinance No.529 Page 5 PLEASE DD NOT SIGN "EXHIBIT ONLY" C. Section 21574 (Fourth Level of 1959 Survivor Benefits). d. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60 Full formula) is applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 9. 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 Govemment Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Govemment Code Section 20834. 10. 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. 11. 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. 12. 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 No.529 Page 6 13. 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 qm account of errors in contributions required of any employee may l° de by direct payments between the employee and the Board. +�'� B. This amendment shall be effective on the of , PUBLIC OMPLOYADMINISTRATION REMENT SY �OWN OFF LOSI IALTOS HILLS V511 BY BY DARRYL WATSON, CHIEF PRESIDING OFFICER �' CUSTOMER ACCOUNT SERVICES DIVISION ®6 PUBLIC EMPLOYEES` RETIREMENT SYSTEM' 06 ti Witness Date CO\ Attest: Clerk AMENDMENT ER#690 PERS-CON-702A Ordinance No.529 Page 7