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
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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
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""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)