HomeMy WebLinkAboutAgenda Packet - January 25, 1988 - CC 00
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Finance Dept * 213 E Foothill Blvd * Box 1395 * Azusa 91702-1395
(818) 334-5125
TO: HONORABLE MAYOR AND MEMBERS OF •;4 CITY COUNCIL
,mr‘ FROM:: GEOFF CRAIG, DIRECTOR OF FINANC. ►`70104
DATE: JANUARY 25, 1988
SUBJECT: 1959 SURVIVOR BENEFIT : SAFETY MEMBERS
At the January 4, 1988, regular meeting, Council began the
process of amending its contract with the Public Employees'
Retirement System (PERS) to include the 1959 Survivor Benefit
for safety members. The final step in the process is the second
° reading of the attached ordinance and adoption of an urgency
ordinance so that it will take effect immediately.
FINDINGS
In the Memoranda of Understanding (MOU) with the Azusa Police
Relief Association, the City has committed to providing the 1959
Survivor Benefit to all Safety (police) employees. This amend-
ment to the city's contract with PERS will provide a monthly
benefit of approximately $400 to the survivor of an employee who
dies prior to retirement. This contract amendment is overdue
and until it becomes effective, the city may be at risk due to
its inability to effectively carry out its obligations pursuant
to the MOU. As the result, staff is recommending both the second
reading of the attached ordinance and passage of an emergency
ordinance which will place this amendment into effect almost
immediately. Benefits under this provision would thus begin on
February 7, 1988.
RECOMMENDATION
It is recommended that Council adopt for second reading the
attached ordinance authorizing an amendment to the contract
between the City Council of the City of Azusa and the Board of
Administrators of the Public Employees' Retirement System
and pass the attached urgency ordinance by a similar title.
djw
c: Joan Francone, Personnel Assistant/Officer * ' *
/ /7g
Com .
ORDINANCE NO. 2365
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AZUSA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF AZUSA AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES ' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF AZUSA DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the Contract between
the City Council of the City of Azusa 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 of Azusa is hereby
authorized, empowered, and directed to execute said amendment
for and on behalf of said agency.
SECTION 3 . Pursuant to Government Code Sections 36934
and 36937, the City Council of the City of Azusa hereby declares
this ordinance to be an urgency ordinance requiring the immediate
enactment thereof because the same is necessary for the immediate
preservation of the public peace, health, safety and general
welfare of the City and its citizens, and accordingly, the
provisions of this ordinance shall become effective at once as an
urgency ordinance. The facts constituting such urgency are that
the City may be at risk due to its inability to effectively carry
out its obligations pursuant to its Memorandum of Understanding
with the Azusa Police Officer's Association, thereby adversely
affecting the health, safety and general welfare of the citizens
of the community.
SECTION 4 . This ordinance shall become effective
immediately upon its adoption and be in effect for thirty days.
SECTION 5. The City Clerk shall certify the passage of
this ordinance as an urgency ordinance and shall cause the same
to be published as
required by law.
PASSED AND APPROVED this 1st day of February, 1988.
OffrifirlY2614:2)
MAYOR
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I, ADOLPH SOLIS, City Clerk of the City of Azusa, do hereby
certify that the foregoing Ordinance No. 2365 was duly adopted
and passed as an urgency ordinance at a regular meeting of the
City Council on the 1st day of February, 1988, by the following
vote, to wit:
AYES: COUNCILMEMBERS: AVILA, CRUZ , LATTA, MOSES
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: COOK
ADOLPH/.OLIS, TY CLE
* * * COP Y
�,..'e `` EXHIBIT A
.4 o
AMENDMENT TO CONTRACT
VVVV BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
tNV
�"► PUBLIC EMPLOYEES' RETIREMENT SYSTEM
VIC
AND THE
CITY COUNCIL
OF THE
CITY OF AZUSA
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after referred to as Public Agency, having entered into a contract effective
January 1, 1949, and witnessed December 20, 1948, and as amended effective July
1, 1956, September 1, 1958, March 2, 1959, May 1, 1960, September 3, 1967,
December 22, 1968, July 15, 1973, April 20, 1975, January 18, 1981, July 1,
1984 and January 12, 1986, which provides for participation of Public Agency in
said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective January 12, 1986, and hereby replaced by the following paragraphs
numbered 1 through 12 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. "Normalretirement age"
shall mean age 60 for local miscellaneous members and age 55 for local
fire members and age 50 for local police members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after January 1, 1949 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 contract-
ing 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) .
* * * COPY
4. In addition to the classes of employees excluded from membership by
said• tetirement Law, the following classes of employees shall not
becOb members of said Retirement System:
A; NO ADDITIONAL EXCLUSIONS
4N:9.
'5.i� 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 excluded from PERS membership by contract. Government Code
Section 20336 supersedes this contract provision by providing that any
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975.
61G 6. The fraction of final compensation to be provided for local miscel-
` laneous members for each year of credited prior and current service
shall be determined in accordance with Section 21251.13, subject to
the reduction provided therein for service on or after March 1, 1958
and prior to March 31, 1975 for members whose service has been
included in Federal Social Security (2% at age 60 Full and Modified) .
7. The fraction of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be
determined in accordance with Section 21252.1 of said Retirement Law
(One-half pay at age 55 Full) .
8. The fraction of final compensation to be provided for each year of
credited prior and current service as a local, police member shall be
determined in accordance with Section 21252.01 of said Retirement Law
(2% at age 50 Full) .
9. The following additional provisions of the Public Employees'
Retirement Law, which apply only upon election of a contracting
agency, shall apply to the Public Agency and its employees:
a. Sections 21263, 21263.1 and 21263.3 (Post-Retirement Survivor
Allowance) .
b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits) for local miscellaneous
members and local police members only.
c. Section 20024.2 (One-Year Final Compensation) for local police
members only.
* * * COP Y
10. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.185 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 10.282 percent until June 30, 2000 on account of the
44e liability for current service benefits. (Subject to annual
change. )
ii•Or
b. With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
(1) 0.052 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 26.534 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change. )
(3) 0.075 percent until June 30, 2000 on account of the
liability for the 1959 Survivor Program. (Subject to annual
change. )
c. A reasonable amount, as fixed by the Board, payable in one in-
stallment 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 in-
stallment 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.
11. 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.
* * * COPY
12. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty 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 be2fitfective on the day of
s , 19 .
BOARD OF ADMINISTRAT CITY COUNCIL
PUBLIC EMPLOYEES' REMENT SYSTEM OF THE
t3
��
CITY OF AZUSA ,.."
e
BY BY ( ��
SANDRA ''LUND Presiding O.kficer
ASSI i EXECUTIVE OFFICER _ C %
BEN SERVICES
Witns Date
e t:
Clerk
PERS-CON-702 (AMENDMENT)
(Rev. 9/86)
J
ORDINANCE NO. 2364
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AZUSA AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF AZUSA
AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES ' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF AZUSA does ordain as follows:
SECTION 1. That an amendment to the Contract between
the City Council of the City of Azusa 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 of Azusa is hereby
authorized, empowered, and directed to execute said amendment for
and on behalf of said agency.
SECTION 3 . This Ordinance shall take effect thirty
(30) days after the date of its adoption, and prior to the
expiration of fifteen (15) days from passage thereof shall be
published at least once in the Azusa Herald, a newspaper of
general circulation, published and circulated in the City of
Azusa and thenceforth and thereafter the same shall be in full
force and effect.
ADOPTED AND APPROVED THIS
YOR
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I, ADOLPH SOLIS, City Clerk of the City of Azusa, do hereby
certify that the foregoing Ordinance No. 2364 was regularly
introduced and placed upon its first reading at a regular meeting
of the City Council on the 18th day of January , 1988. That
thereafter, said Ordinance was duly adopted and passed at a
regular meeting of the City Council on the 1st
day of February , 1988, by the following vote, to wit:
AYES: COUNCILMEMBERS: AVILA, CRUZ , LATTA, MOSES
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: COOK
ADOL'H S•r S, CI CL �7
1
* * TYD COP Y
�,•'�• r`` EXHIBIT A
AMENDMENT TO CONTRACT
_ ` VVVV BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
�� OU
t� PUBLIC EMPLOYEES' RETIREMENTN SYSTEM
CITY COUNCIL
OF THE
CITY OF AZUSA
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency, herein-
after referred to as Public Agency, having entered into a contract effective
January 1, 1949, and witnessed December 20, 1948, and as amended effective July
1, 1956, September 1, 1958, March 2, 1959, May 1, 1960, September 3, 1967,
December 22, 1968, July 15, 1973, April 20, 1975, January 18, 1981, July 1,
1984 and January 12, 1986, which provides for participation of Public Agency in
said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective January 12, 1986, and hereby replaced by the following paragraphs
numbered 1 through 12 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 55 for local
fire members and age 50 for local police members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after January 1, 1949 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 contract-
ing 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) .
* * copyY
4. In addition to the classes of employees excluded from membership by
said. etirement Law, the following classes of employees shall not
beo a members of said Retirement System:
G.* NO ADDITIONAL EXCLUSIONS
.5 <.• 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 excluded from PERS membership by contract. Government Code
;\ Section 20336 supersedes this contract provision by providing that any
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975.
6. The fraction of final compensation to be provided for local miscel-
laneous members for each year of credited prior and current service
shall be determined in accordance with Section 21251.13, subject to
the reduction provided therein for service on or after March 1, 1958
. and prior to March 31, 1975 for members whose service has been
included in Federal Social Security (2% at age 60 Full and Modified) .
7. The fraction of final compensation to be provided for each year of
credited prior and current service as a local fire member shall be
determined in accordance with Section 21252.1 of said Retirement Law
(One-half pay at age 55 Full) .
8. The fraction of final compensation to be provided for each year of
credited prior and current service as a local police member shall be
determined in accordance with Section 21252.01 of said Retirement Law
(2% at age 50 Full).
9. The following additional provisions of the Public Employees'
Retirement Law, which apply only upon election of a contracting
agency, shall applyto the Public Agency and its employees:
a. Sections 21263, 21263.1 and 21263.3 (Post-Retirement Survivor
Allowance) .
b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits) for local miscellaneous
members and local police members only.
c. Section 20024.2 (One-Year Final Compensation) for local police
members only. -
o �
* * * COPY
10. Public Agency shall contribute to said Retirement System as follows:
a. With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.185 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 10.282 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change. )
.1e0r
b. With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said
Retirement System:
421)
(1) 0.052 percent until June 30, 2000 on account of the
liability for prior service benefits. (Subject to annual
change. )
(2) 26.534 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change. )
(3) 0.075 percent until June 30, 2000 on account of the
liability for the 1959 Survivor Program. (Subject to annual
change. )
c. A reasonable amount, as fixed by the Board, payable in one in-
stallment 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 in-
stallment 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.
11. 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.
* * * COPY
12. Contributions required of Public Agency and its employees shall be
paid by Public Agency to the Retirement System within thirty 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 begs fective on the day of
BOARD OF ADMINISTRATW ' CITY COUNCIL
PUBLIC EMPLOYEES' RFS iEMENT SYSTEM OF THE
CITY OF AZUSA
BY ri BY
SANDRA LUND Presiding Officer
ASSI EXECUTIVE OFFICER
BEN SERVICES
l _
Witns Date
*est:
Clerk
PERS-CON-702 (AMENDMENT)
(Rev. 9/86)