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06 Amend the Contract Between Town Council and the Board of Administration of the California Public Employee's Retirement System TOWN OF TRUCKEE California ORDINANCE ORDINANCE 2011 -06 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TRUCKEE, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE TOWN COUNCIL OF THE TOWN OF TRUCKEE AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEE'S RETIREMENT SYSTEM THE TOWN COUNCIL OF THE TOWN OF TRUCKEE, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. That an amendment to the contract between the Town Council of the Town of Truckee and the Board of Administration, California Public Employee's 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 set out in full. Section 2. The Mayor of the Town of Truckee is hereby authorized, empowered; and directed to execute said amendment of and on behalf of said Agency. Section 3. This Ordinance shall take effect immediately on the date of its adoption ; and upon passage thereof shall be published at least once in the Sierra Sun, a newspaper of general circulation, publish and circulated in the Town of Truckee and thenceforth and thereafter the same shall be in full force and effect. Section 4. Declaration of Urgency and Finding in Supporting Immediate Adoption. This ordinance shall take effect immediately after its first reading as an urgency measure 'under Government Code Section 65858 and Parr v. Municipal Court (1971). The immediate enactment of this urgency measure is necessary for the preservation of the public peace, health, and safety. The Town Council makes the following express factual findings to support urgency adoption of this ordinance. 1. The ordinance enacts and memorializes the provisions of labor agreements negotiated under the Meyers - Milias -Brown Act and must take effect immediately to insure critical public safety and law enforcement services provided by the Town in order to continue to preserve the public peace, health, and safety. 2. Immediate adoption of this ordinance is required by state law to effectuate certain provisions regarding the retirement program for Town employees contained in the labor agreements referenced above. 3. The immediate cost savings which will accrue to the Town as a result of adjustments in its retirement program will allow the Town to avoid reductions in critical public safety and law enforcement services which would otherwise result in disruption to the preservation of the public peace, health, and safety. Ordinance 2011 -06 Page 2 The foregoing Ordinance was introduced and adopted as an urgency measure by a four /fifths (4/5) vote of the Truckee Town Council at a regular meeting of the Truckee Town Council held on the 15 day of September, 2011; Council Member Green, moved for the immediate adoption, the motion was seconded by Council Member Dee, and was carried by the following vote: AYES: Council Members: Green, Brown, Wallace Dee, Vice Mayor deRyk Jones and Mayor Anderson. NOES: None. ABSENT: None. RICHARD ANDERSON, Mayor ATTEST: APPROVED AS TO FORM: / • dip/ 1 1 .:I. 3-6 - 11-41 :2) Judy P ce, MM$ own Clerk . Dennis Crabb, Town Attorney CaIPERS California Public Employees' Retirement System 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 November 20, 1994, and witnessed December 13, 1994, and as amended effective July 21, 2002 and July 6, 2003 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 July 6, 2003, and hereby replaced by the following paragraphs numbered 1 through 15 inclusive 1 All words and terms used herein which are defined in the Public Employees' Retireirnent Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement agile" shall rnean age 55 for local!, miscellaneous members, age 50 for local safety members entering membership in the safety classification on or prior to the effective date of this amendment to contract and age 55 for local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. 2. Public Agency shall participate in the Public Employees' Retirement System frorn and after November 20, 11994 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 Systern (CalPERS) and its trustees, agents and employees,, the CaIP Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expense's 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 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 CalPERS' Board of Administration. �11 The termination of this Contract e ither 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. Empiloyees 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 Police Officers (herein referred to as local safety members); b. 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 mernbers of said Retirement System,,. 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 July 6, 2003 , shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 5 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 July 6, 2003 and not 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 213,54.5 of said Retirement Law (2.7% at age 55 Full). & 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 21354.4 of said Retirement Law (2.5% at age 55 Full). 9. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member entering membership in the safety classification on or prior to the effective date of this amendment to contract shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 10. The percentage of final compensation to be provided for each year of credited current service as a local safety member entering membership for the first time in the safety classification after the effective date of this amendment to contract shal'I be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full). 11. Public Agency elected and elects to be suibject to the following optional provisions: a. Section 20042 ((one-Year Final Compensation) for those local miscellaneous members and local safety members entering membership on or prior to the effective date of this amendment to contract. b. Section 208 o-Years Additional Service Credit), Statutes • 1976. Legislation repealed said Section effective january 1, 1979 for local miscellaneous memWers, C. Section 20965 (Credit for Unused Sick Leave). d. Section 21024 (Military Service Credit as Public Service). e. Sections 216;24 and 21626 (Post-Retirlement Survivor Allowance). f. Section 20903 (Two Years Additional Service Credit) for local police members., 9. Section 20 (Different Level of Benefits). Section 21354.4 (2.5% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this arnendiment to contract. Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three- Year Final Compensation) are applicable to local safety members entering membership for the first time in the safety classification after the effective date of this, amendment to contract. 12, 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 imembers and local safety members of said Retilrernent 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 21573 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. Contributions, required per covered imember on account of the 19159 Survivor Benefits provided under Section, 21574.5 of said Retirement Law. (Suibject 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 safety members. C. 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. d A reasonable amount, as fixed by the Board, payabIe in one installment as the occasions arise, to cover the costs of special valuations on account of empIoyees of Public Agency, and costs of the periodic investigation and valuations required by law. 14. 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. 15. 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 shafl 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 day of jwwxzmp� I U91 10115 in a AA 10 W-9XA Q 011115*1=1 BT KAREN DE FRANK, CHIEF CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY Attest: Clerk AMENDMENT ER# 1654 PE RS -GO N-702A