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HomeMy WebLinkAboutAgenda Packet - January 25, 1988 - CC 00 n' [*T11T / 40 yg� 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)