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HomeMy WebLinkAbout2022-08-30; City Council; ; Adoption of Ordinance No. CS-428 – California Public Employees’ Retirement System Contract Amendment – Clarification to Lifeguard ExclusionCA Review CKM Meeting Date: Aug. 30, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Ana Marie Alarcon, Deputy City Clerk ana.alarcon@carlsbadca.gov, 442-339-2809 Subject: Adoption of Ordinance No. CS-428 – California Public Employees’ Retirement System Contract Amendment – Clarification to Lifeguard Exclusion Districts: All Recommended Action Adopt Ordinance No. CS-428 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/Discussion 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. Ordinance No. CS-428 was introduced and first read at the City Council meeting held on July 19, 2022. On a motion by Mayor Pro Tem Blackburn, seconded by Council Member Bhat-Patel, the City Council voted 4-0-1, with Council Member Norby absent, to introduce Ordinance No. CS- 428. The second reading allows the City Council to adopt the ordinance, which will become effective 30 days after its adoption. Fiscal Analysis There is no fiscal impact associated with this CalPERS contract amendment. Next Steps The City Clerk Services Manager will have the ordinance, or a summary of the ordinance, published in a newspaper of general circulation within 15 days following adoption of the ordinances. Aug. 30, 2022 Item #9 Page 1 of 10 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.Ordinance No. CS-428 Aug. 30, 2022 Item #9 Page 2 of 10 Exhibit 1 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 January 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 cause 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. Aug. 30, 2022 Item #9 Page 3 of 10 INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 19th day of J..!!!y, 2022, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 30th day of August, 2022, by the following vote, to wit: AYES: NAYS: Blackburn, Bhat-Patel, Acosta, Norby. None. ABSENT: Hall. APPROVED AS TO FORM AND LEGALITY: �/(� CINDIE K. McMAHON, City Attorney It for MATT HALL, Mayor FAVIOLA MEDINA, City Clerk Services Manager (SEAL) Aug. 30, 2022 Item #9 Page 4 of 10 {:JVk 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 miscellaneous members, age 50 for classic local safety members and age 57 for new local safety members. Aug. 30, 2022 Item #9 Page 5 of 10 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). Aug. 30, 2022 Item #9 Page 6 of 10 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). Aug. 30, 2022 Item #9 Page 7 of 10 11.The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member entering membership in the safety classification on or prior to October 4, 2010, shall be 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 of credited current service as a classic local safety member entering membership 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 of credited prior and current service as a new local safety member shall be determined 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 optional provisions: a.Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance). b.Section 20425 ("Local Police Officer" shall include employees of a police 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 entering membership 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 Survivor Benefits). Aug. 30, 2022 Item #9 Page 8 of 10 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. Aug. 30, 2022 Item #9 Page 9 of 10 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, 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. 18.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. 19.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 _____ 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 "P L E A S E D O N O T S I G N E X H I B I T O N L Y ""PLEASE DO NOT SIGN EXHIBIT ONLY"Aug. 30, 2022 Item #9 Page 10 of 10 ._'4_ CalPERS California Public Employees' Retirement System Financial Office I Pension Contracts and Prefunding Programs Division P.O. Box 942703, Sacramento, CA 94229-2703 888 CalPERS (or 888-225-7377) I TTY: (877) 249-7442 I www.calpers.ca.gov I hereby certify that the CERTIFICATION OF FINAL ACTION OF GOVERNING BODY (governing body)., (public agency) of the considered and adopted on __________ __, ___ __, by an affirmative vote of a (date) majority of the members of said Governing Body, Ordinance/Resolution No. _____ _ approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said Ordinance/Resolution in the form furnished by said Board of Administration being attached hereto. Adoption of the retirement benefit increase/change was not placed on the consent calendar. Clerk/Secretary Title Date --------- PERS-CONS (Rev. 1/31/20)