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No. 2009-1265 Page 1 of 9 ORDINANCE NO. 1265 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE TO PROVIDE SECTION 20903 (TWO YEARS ADDITIONAL SERVICE CREDIT) FOR LOCAL MISCELLANEOUS MEMBERS WHO VOLUNTEER FOR EARLY RETIREMENT TO MITIGATE THE NUMBER OF ADDITIONAL INVOLUNTARY LAYOFFS THAT MAYBE BE NEEDED IN THE CITY WHEREAS, the Board of Administration ("Board"), California Public Employees' Retirement System ("PERS") and the City Council of the City of Lake Elsinore ("City") have entered into that certain Contract between the Board and the City (the "Contract") which provides for the participation of the City in PERS and which was effective on July 1, 1965, and witnessed on April 30, 1965, and thereafter amended in December 10, 1983, December 19, 1987, July 14, 1995, May 9, 1997, December 24, 1999, March 22, 2003, and September 12, 2003; and WHEREAS, the Board and the City desire to amend the Contract to provide Section 20903 (Two Years Additional Service Credit) for local miscellaneous members who volunteer for early retirement to mitigate the number of additional involuntary layoffs that maybe be needed in the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. That an amendment to the Contract between the City Council of the City of Lake Elsinore and the Board of Administration, California Public Employees' Retirement System is hereby authorized and approved, a copy of said amendment attached hereto as 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 of the City of Lake Elsinore is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the City. SECTION 3. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. SECTION 4. This Ordinance shall take effect immediately upon passage by a four-fifths vote of the City Council. I I i City Council Ordinance No. 1265 Page 2 of 9 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 23rd day of June, 2009. ROBERT MAGEE MAYOR ATTEST: .DEBORXTHOMSEN W-X CLERK`. v c APPROVED AS TO FORM: 'I ABARA LO OLD CITY ATTORNEY I I I City Council Ordinance No. 1265 Page 3 of 9 EXHIBIT "A" Amendment to the Contract between Board of Administration of the Public Employees' Retirement System (CALPERS) and the City Council City of Lake Elsinore [See Attached] i i I I City Council Ordinance No. 1265 Page 4 of 9 EXHIBIT A Fill California Public Employees' Retirement System i AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Lake Elsinore 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, j i 1965, and witnessed April 30, 1965, and as amended effective December 10, 1983, II December 19, 1987, July 14, 1995, May 9, 1997, December 24, 1999, March 22, 2003 and September 12, 2003 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 September 12, 2003, and hereby replaced by the following paragraphs numbered 1 through 16 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 60 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1965 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. I City Council Ordinance No. 1265 Page 5 of 9 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 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-CaIPERS 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 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. Fill (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 CaIPERS 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 CaIPERS' 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. (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 F members of said Retirement System except such in each such class as are excluded by law or this agreement: City Council Ordinance No. 1265 Page 6 of 9 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). i 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: NO ADDITIONAL EXCLUSIONS 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 those local miscellaneous members in employment prior to December 19, 1987 shall be determined in accordance with Section 21354 of said Retirement Law subject to the reduction provided therein for Federal Social Security (2% at age 55 Modified). 8. The percentage of final compensation to be provided for each year of credited prior and current service for those local miscellaneous members in employment on or after December 19, 1987 and not on or after March 22, 2003, shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full) pursuant to Government Code Section 20515. 9. 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 March 22, 2003, shall be determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full), pursuant to Government Code Section 20515. 10. 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 21368 (1.25% at age 60), r supplemental to Social Security. I_ City Council Ordinance No. 1265 Page 7 of 9 11. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation) for local miscellaneous members only. i j b. Section 20515 (Full Formula Plus Social Security) for past and future service for local miscellaneous members in employment on and after December 19, 1987. Legislation repealed said Section effective January 1, 2002. C. Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance) for local miscellaneous members only. d. Section 21024 (Military Service Credit as Public Service) for local miscellaneous members only. e. Section 20503 (To Remove the Exclusion of Persons Compensated on an Hourly Basis, Prospectively from September 12, 2003). f. Section 20903 (Two Years Additional Service Credit) for local miscellaneous members only. 12. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on December 10, 1983. 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. 13. 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. 14. Public Agency shall also contribute to said Retirement System as follows: a. 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. City Council Ordinance No. 1265 Page 8 of 9 b. 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. 15. 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. 16. 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 23nd day of June, 2009. BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF LAKE ELSINORE BY BY LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION MAYOR ROBERT MAGEE PUBLIC EMPLOYEES' RETIREMENT SYSTEM i Witness Date Attest: City Clerk DEBORA THOMSEN, CMC AMENDMENT ER # 0585 PERS-CON-702A (Rev. 10\05) City Council Ordinance No. 1265 Page 9 of 9 I STATE OF CALIFORNIA COUNTY OF RIVERSIDE ISS CITY OF LAKE ELSINORE I I I, Debora Thomsen, City Clerk of the City of Lake Elsinore, California, hereby certify that an Urgency Ordinance No. 1265 was introduced and adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 23rd day of June 2009 by the following vote: AYES: Mayor Robert Magee, Mayor Pro Tern Melissa Melendez, Councilwoman Amy Bhutta, Councilman Thomas Buckley, Councilman Daryl Hickman NOES: None ABSENT: None ABSTAIN: None Z(Im- DEBORA THOMSEN;=CMC CITY CLERK',; i