HomeMy WebLinkAbout2022-07-19; City Council; ; California Public Employees’ Retirement System Contract Amendment – Clarification to Lifeguard ExclusionCA Review CKM
Meeting Date: July 19, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Lori Shonley, Human Resources Manager
lori.shonley@carlsbadca.gov, 442-303-2971
Sandra Smith, Senior Human Resources Technician
sandra.smith@carlsbadca.gov, 442-200-8842
Subject: California Public Employees’ Retirement System Contract Amendment –
Clarification to Lifeguard Exclusion
District: All
Recommended Actions
Adopt a resolution approving a resolution of intention to approve an amendment to the city’s
contract with the Board of Administration of the California Public Employees’ Retirement
System to replace the existing membership exclusion for “Senior Instructor/Lifeguard Hired
After November 3, 1993” with a membership exclusion for “Aquatics Instructor, Aquatics
Program Instructor, Lifeguard, and Senior Aquatics Instruction/Lifeguard Hired After November
3, 1993.”
Introduce an ordinance authorizing an amendment to the city’s contract with the California
Public Employees’ Retirement System to exclude from membership employees in the
classifications of “Aquatics Instructor, Aquatics Program Instructor, Lifeguard, and Senior
Aquatics Instructor/Lifeguard hired after November 3, 1993.”
Executive Summary
This action would update the city’s contract with the California Public Employees’ Retirement
System, known as CalPERS, to list the city’s current job classifications for lifeguards and aquatic
instructors in the CalPERS contract as being excluded from CalPERS membership. This will allow
the city to continue employing staff in these important part-time positions for 1,000 hours or
more in a fiscal year without making them CalPERS members and assuming additional pension
costs.
A proposed resolution of intention to approve the amendment is in Exhibit 1. A proposed
ordinance authorizing the amendment is in Exhibit 2.
CalPERS requires the City Council to adopt the resolution and the ordinance to amend the
contract.
July 19, 2022 Item #9 Page 1 of 13
Discussion
All full-time employees of the City of Carlsbad are enrolled as CalPERS members on their first
day of employment with the city. Part-time employees gain CalPERS membership if they exceed
1,000 hours in a fiscal year, or if they have previously been a CalPERS member.
The city’s contract with CalPERS has been amended 23 times since its inception in 1956. The
contract amendment effective Nov. 3, 1993, excluded the Senior Instructor/Lifeguard
classification from membership in the retirement system and, consequently, from the 1,000-
hour limit. At that time, the city did not have multiple lifeguard or instructor classifications, but
since that time, classifications have been added or amended.
The city now has the following classifications in the lifeguard/instructor job family:
•Aquatics Instructor
•Aquatics Program Instructor
•Lifeguard
•Senior Aquatics Instructor/Lifeguard
The city and CalPERS have historically treated all of these positions as exempted from CalPERS
membership, but CalPERS now requires exempted positions to be specifically listed in the
CalPERS contract. This contract amendment will not change the status of employees in these
positions.
Fiscal Analysis
There is no fiscal impact associated with this CalPERS contract amendment.
Next Steps
The City Council may not adopt the ordinance until at least 20 days after it adopts the
resolution of intention. Staff anticipates the ordinance will be submitted to the City Council for
adoption on Aug. 23, 2022. With the council’s approval, staff will process the documents
needed to finalize the contract amendment with CalPERS.
Future amendments to the city’s contract will be brought to the City Council for consideration
and approval.
Environmental Evaluation
This action does not constitute a project within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment.
Public Notification
This item was noticed in keeping with the Ralph M. Brown Act and it was available for public
viewing and review at least 72 hours before the scheduled meeting date.
Exhibits
1.City Council resolution
2.City Council ordinance
July 19, 2022 Item #9 Page 2 of 13
RESOLUTION NO. 2022-187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A RESOLUTION OF INTENTION TO APPROVE AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF CARLSBAD AND
THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and
their employees in the Public Employees' Retirement System by the execution of a contract, and sets
forth the procedure by which said public agencies may elect to subject themselves and their
employees to amendments to said Law; and,
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the
governing body of the public agency of a resolution giving notice of its intention to approve an
amendment to said contract, which resolution shall contain a summary of the change proposed in
said contract; and,
WHEREAS, the following is a statement of the proposed change:
To replace the existing exclusions of "Senior Instructor/Lifeguard Hired After November 3,
1993," and to provide for the exclusions of Aquatics Instructor, Aquatics Program Instructor,
Lifeguard, and Senior Aquatics Instructor/Lifeguard Hired After November 3, 1993.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1.That the above recitations are true and correct.
2.That the City Council approves the resolution of intention (Attachment A) and does hereby
give notice of intention to approve an amendment to the contract between the City of
Carlsbad and the Board of Administration of the Public Employees' Retirement System, a
copy of said amendment being attached hereto as Exhibit 1 to Attachment A and by this
reference made a part hereof.
EXHIBIT 1
July 19, 2022 Item #9 Page 3 of 13
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 19th day of J.!!!y, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, A.costa.
None.
Norby.
MATT J:t1[!iff
_fvFAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
July 19, 2022 Item #9 Page 4 of 13
~ -----
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF CARLSBAD
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System by the
execution of a contract, and sets forth the procedure by which said public
agencies may elect to subject themselves and their employees to amendments to
said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the
governing body of the public agency of a resolution giving notice of its intention
to approve an amendment to said contract, which resolution shall contain a
summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To replace the existing exclusions of “Senior Instructor/Lifeguard
Hired After November 3, 1993,” and to provide for the exclusions
of Aquatics Instructor, Aquatics Program Instructor, Lifeguard,
and Senior Aquatics Instructor/Lifeguard Hired After November
3, 1993.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby
give notice of intention to approve an amendment to the contract between said
public agency and the Board of Administration of the Public Employees'
Retirement System, a copy of said amendment being attached hereto, as an
"Exhibit" and by this reference made a part hereof.
By:_________________________________
Presiding Officer
_________________________________
Title
________________________________
Date adopted and approved
(Amendment) CON-302 (Rev. 3/9/2016 rc)
Attachment A
July 19, 2022 Item #9 Page 5 of 13
Exhibit 1 to
Attachment A
California
Public Employees’ Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees’ Retirement System
and the
City Council
City of Carlsbad
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 January
1, 1956, and witnessed December 23, 1955, and as amended effective July 1, 1957, January 1, 1959, March 5, 1959, March 18, 1975, April 1, 1975, August 18, 1977, June 21, 1980, January 1, 1981, June 21, 1982, November 22, 1982, June 26, 1989, November 16, 1990, July 3, 1992, November 3, 1993, June 30, 1995, June 3, 1996, January 1, 1997,
June 14, 1997, June 25, 2001, December 22, 2003, December 20, 2004, October 4, 2010,
and November 27, 2011, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A.Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective November 27, 2011, and hereby replaced by the following paragraphs
numbered 1 through 19 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 classic
local miscellaneous members, age 62 for new local miscellaneousmembers, age 50 for classic local safety members and age 57 for new localsafety members.
July 19, 2022 Item #9 Page 6 of 13
A
CalPERS
2. Public Agency shall participate in the Public Employees' Retirement System
from and after January 1, 1956, 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 System (CalPERS) and its trustees, agents
and employees, the CalPERS 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 attorney 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) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency’s election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees’ 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.
4. 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).
July 19, 2022 Item #9 Page 7 of 13
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:
a. AQUATICS INSTRUCTOR, AQUATICS PROGRAM
INSTRUCTOR, LIFEGUARD, AND SENIOR AQUATICS
INSTRUCTOR/LIFEGUARD HIRED AFTER NOVEMBER 3, 1993. 6. This contract shall be a continuation of the contract of the Carlsbad Municipal Water District, hereinafter referred to as "Former Agency". The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred February 17, 1992. 7. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
in employment before and not on or after December 20, 2004, shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service on and after June 1, 1958, the effective date of Social Security coverage, and prior to December
31, 1980, termination of Social Security, for members whose service has
been included in Federal Social Security (2% at age 55 Full and Modified). 8. The percentage of final compensation to be provided for each year of credited prior and current service for classic local miscellaneous members
in employment on or after December 20, 2004, and not entering
membership for the first time in the miscellaneous classification after November 27, 2011, shall be determined in accordance with Section 21354.3 of said Retirement Law, subject to the reduction provided therein for service on and after June 1, 1958, the effective date of Social Security
coverage, and prior to December 31, 1980, termination of Social Security,
for members whose service has been included in Federal Social Security (3% at age 60 Full and Modified). 9. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification after November 27, 2011, shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
July 19, 2022 Item #9 Page 8 of 13
11.The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member enteringmembership in the safety classification on or prior to October 4, 2010, shallbe determined in accordance with Section 21362.2 of said Retirement Law(3% at age 50 Full).
12.The percentage of final compensation to be provided for each year ofcredited current service as a classic local safety member enteringmembership for the first time in the safety classification after October 4,2010, shall be determined in accordance with Section 21362 of said
Retirement Law (2% at age 50 Full).
13.The percentage of final compensation to be provided for each year ofcredited prior and current service as a new local safety member shall bedetermined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
14.Public Agency elected and elects to be subject to the following optionalprovisions:
a.Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance).
b.Section 20425 ("Local Police Officer" shall include employees of apolice department who were employed to perform identification or
communication duties on August 4, 1972, and who elected to be local
safety members).
c.Section 20965 (Credit for Unused Sick Leave).
d.Section 20042 (One-Year Final Compensation) for those classic
local safety members entering membership on or prior to October 4,2010, and those classic local miscellaneous members enteringmembership on or prior to November 27, 2011.
e.Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f.Section 21024 (Military Service Credit as Public Service).
g.Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
h.Section 21583 (Additional Opportunity to Elect 1959 SurvivorBenefits).
July 19, 2022 Item #9 Page 9 of 13
i. Section 20434 ("Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire prevention, fire training, hazardous materials, emergency medical services, or fire or arson investigation services as described in Government Code Section 20434).
j. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members only. k. Section 20475 (Different Level of Benefits): Section 21362 (2% @
50 Full formula) and Section 20037 (Three-Year Final
Compensation) are applicable to classic local safety members entering membership for the first time with this agency in the safety classification after October 4, 2010.
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three-
Year Final Compensation) are applicable to classic local miscellaneous members entering membership for the first time with this agency in the miscellaneous classification after November 27, 2011.
15. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on August 18, 1977. 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. 16. 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. 17. 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 and local police members.
b. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 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 fire members.
July 19, 2022 Item #9 Page 10 of 13
c.A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs ofadministering said System as it affects the employees of PublicAgency, not including the costs of special valuations or of theperiodic investigation and valuations required by law.
d.A reasonable amount, as fixed by the Board, payable in oneinstallment as the occasions arise, to cover the costs of specialvaluations on account of employees of Public Agency, and costs ofthe periodic investigation and valuations required by law.
18.Contributions required of Public Agency and its employees shall be subjectto adjustment by Board on account of amendments to the PublicEmployees' Retirement Law, and on account of the experience under theRetirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
19.Contributions required of Public Agency and its employees shall be paid byPublic Agency to the Retirement System within fifteen days after the end ofthe 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 withsubsequent remittances. Adjustments on account of errors in contributionsrequired of any employee may be made by direct payments between theemployee and the Board.
B.This amendment shall be effective on the _____ day of _______________, ______.
BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CITY OF CARLSBAD
BY____________________________________ BY______________________________ MELODY BENAVIDES, CHIEF PRESIDING OFFICER PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
________________________________ Witness Date
Attest:
________________________________
Clerk
AMENDMENT CalPERS ID #3747905882 PERS-CON-702A
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""PLEASE DO NOT SIGN EXHIBIT ONLY"July 19, 2022 Item #9 Page 11 of 13
Item #9 Page 12 of 13July 19, 2022
EXHIBIT 2
ORDINANCE NO. CS-428
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF CARLSBAD AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
WHEREAS, the City Council of the City of Carlsbad entered into a contract with the Board of
Administration, California Public Employees' Retirement System on Janu ary 1, 1956; and
WHEREAS, the contract requires amendment to clarify the positions that are exempt from
California Public Employees' Retirement System membership.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California,
ordains as follows that:
1. The above recitations are true and correct.
2. That an amendment to the contract between the City Council of the City of Carlsbad
and the Board of Administration, California Public Employees' Retirement System is
hereby authorized, a copy of said amendment being attached hereto, marked
Attachment A, and by such reference made a part hereof as though herein set out in
full.
3. The Mayor of the City Council is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of said Agency.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City
Clerk shall certify the adoption of this ordinance and cau se the full text of the ordinance or a summary
of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general
circulation in the City of Carlsbad within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 19th
day of ,!Q!y, 2022, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the __ day of ___ _, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
CINDIE K. McMAHON, Assistant City Attorney
MATT HALL, Mayor
FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
Page 13 of 13July 19, 2022 Item #9
Ordinance –CalPERS
Contract Amendment
Lori Shonley, Human Resources Manager
Sandra Smith, Senior Human Resources Technician
Human Resources Department
July 19, 2022
TODAY’S PRESENTATION
•Proposed action
•Background/Discussion
•Next steps
ITEM 9: CalPERS Contract Amendment
PROPOSED ACTION
Adopt an ordinance amending our CalPERS
contract. The amendment clarifies which
positions are exempt from the requirement to
enroll employees who work 1,000-hours or
more in CalPERS membership.
ITEM 9: CalPERS Contract Amendment
BACKGROUND/DISCUSSION
•The Nov. 3, 1993, CalPERS contract amendment
exempted Senior Instructor/Lifeguard from
CalPERS membership.
•Since that time, additional classifications have
been added to the Lifeguard and Aquatics Instructor job family.
•CalPERS requires a contract amendment to explicitly name all positions in the job family which are exempt from CalPERS membership.
ITEM 9: CalPERS Contract Amendment
Next Steps
Approve ordinance introduction
Adopt final ordinance Aug. 23, 2022
ITEM 9: CalPERS Contract Amendment