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Home My WebLink AboutORD 1183ORDINANCE NO. 1183 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM DESERT WHEREAS, the City Council of the City of Palm Desert (hereinafter the "City") and the Board of Administration, Public Employees' Retirement System (hereinafter the "Board"), entered into a contract for participation of the City in said system effective October 26, 1974; and WHEREAS, said contract has been amended, from time to time, on February 7, 1981, July 29, 1989, June 14, 1991, June 28, 1996, and July 31, 2002; and WHEREAS, California Government Code Section 20903 provides that when the governing body of a contracting agency determines that because of the impending curtailment of, or change in the manner of performing service, the best interests of the agency would be served by encouraging the retirement of local members; and WHEREAS, the City and Board desire to amend the contract. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. That an amendment to the contract between the City Council of the City of Palm Desert, California, 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 City Council declares that due to the state of the economy and its inherent impact on the City's revenues, there is an immediate need for implementing this Ordinance. Section 3. The Mayor of the City of Palm Desert, Califomia, is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. ORDINANCE NO. 1183 Section 4. The City Clerk shall certify to the adoption of this ordinance and shall cause it to be published once in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held this 7th day of May, 2009, by the following vote, to wit: AYES: BENSON, FERGUSON, FINERTY, BELLY, and SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: NONE OBERT A. SPI G OR ATTEST: RACH15-1-LE D. KLASSE , CITY CLERK CITY OF PALM DESERT, CALIFORNIA 5 - 13 - o� 2 ORDINANCE NO. 1183 A*" 4� '�, CAPERS California Public Employees' Retirement System EXHIBIT A AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Palm Desert c7A The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the goveming body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective October 26, 1974, and witnessed October 3, 1974, and as amended effective February 7, 1981, July 29, 1989, June 14, 1991, June 30, 1996 and September 7, 2002 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 September 7, 2002, 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. 2. Public Agency shall participate in the Public Employees' Retirement System from and after October 26, 1974 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. 1 of 4 ORDINANCE NO. 1183 PLEASE DO NOT SAGN "Ey"HUT OM" 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. Employees other than local safety members (herein referred to as local miscellaneous members). 4. 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. ALL SAFETY EMPLOYEES; AND b. ALL EMPLOYEES AGE 65 OR OLDER ON CONTRACT DATE. 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 superseded this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994. 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment before and not on or after September 7, 2002 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. 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 September 7, 2002 shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 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 21572 (Increased Level of 1959 Survivor Benefits). C. Section 20965 (Credit for Unused Sick Leave). 2 of 4 ORDINANCE NO. 1183 d. Section 21151 (Industrial Disability Retirement For Local Miscellaneous Members). e. Section 21427 (Improved Nonindustrial Disability Allowance). Section 20042 (One -Year Final Compensation). g. Section 20503 (To Remove the Exclusions of "Crossing Guards" and "Administrative Interns", Prospectively from June 14, 1991). h. Section 20325 (Optional Membership for Part -Time Employees). Section 20903 (Two Years Additional Service Credit). 9. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer' for purposes of Section 20834 effective on February 7, 1981. 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. 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. 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. 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. 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. 3 of 4 ORDINANCE NO. 1183 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 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 BOARD OF ADMINISTRATION. PUBLIC EMPLOYEES' RETJR�SYSTEM BY _ LORI MCGA� D, CHIEF EMPLOY R VICES DIVISION PUBLI ;ILOYEES' RETIREMENT SYSTEM AMENDMENT ER# 1018 PERS-CON-702A (Rev. 10105) 4 of 4 day of , CITY COUNCIL CITY OF PALM DESERT Effil PRESIDING OFFICER Witness Date Attest: