Attachment 2 - OrdinanceORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE TOWN COUNCIL OF THE TOWN
OF LOS GATOS AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM.
NOW, THEREFORE, THE PEOPLE OF THE TOWN OF LOS GATOS AND THE TOWN
COUNCIL DO HEREBY ORDAIN AS FOLLOWS:
SECTION I
That an amendment to the contract between the Town Council of the Town of Los Gatos and
the Board of Administration, California Public Employees' Retirement System is hereby
authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such
reference made a part hereof as though herein set out in full.
SECTION II
The Mayor of the Town Council is hereby authorized, empowered, and directed to execute said
amendment for and on behalf of said Agency.
SECTION III
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on the 6th day of August 2019, and adopted by the following vote as an ordinance of the
Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the
3rd day of September 2019. This ordinance takes effect 30 days after it is adopted. In lieu of
publication of the full text of the ordinance within fifteen (15) days after its passage a summary
of the ordinance may be published at least five (5) days prior to and fifteen (15) days after
adoption by the Town Council and a certified copy shall be posted in the office of the Town
Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
1 of 2
Ordinance Council Meeting Date
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
DATE:
2 of 2
Ordinance Council Meeting Date
Ca1PERS
Calitornia
Pablio Employees' Retirement System
EXHIBIT A
MENDMENT TO CON'TRAUT
Between the
BoaLd of Administration
CaIilornia Public Employees' Retuelllellt System
and the
Tr/iv Colllldil
1 own of Los CTaLOs
The Board or Administration, Valiturnia Public Employees' Retirement System,
hereinafter referrer] to as Board, and the yoverniny body ut the above public agency,
hereinafter referred to as Public Agency, baying entered into a oontract emotive April 1,
1972, and witnessed March 1, 1972, and as amended effective August 2, 1 v72, June 1,
1976, Jelly 1, 1970; October 1: 1975, Janaagy 4, 1990, December 1 o, 1992, August 6,
19a7, ,iune 24, 2001, Jane 29, 20U8 and September 15, 2012 which provides for
participation of Public Agency in said Systems,, Guard and Public Agency hereby agree as
follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
errecti„e September 15, 2u12, and hereby replaced by the fallowing paragraphs
numbere'a 1 tbrougrl 19 inclusive:
1. All words and terms used herein which are berined in the Public Employees'
Retirement Caw shall have the meaning as defined therein unless otber4vise
sper;itically provides. "Normal retirement aye" shall mean age 55 for classic
local miscellaneous members entering membership in the miscellaneous
classification on or prior to September 15, 2012, aye 50 tor classic local
miscellaneous members entering membership Tor the Tirat time in the
miscellaneoas classification after September 15, 2u1 z, age n2 Tor nevv local
miscellaneous members. aye 50 tor classic local safely members and 57
ror new local sarety members.
PLEASE Du NOT SIGN "EXHIBIT uNLY"
Z. PU6lic Homy shall participate in the Public Employees' Retirement System
rrom and aner April 1, 1972 maRCiny its employees as hereinafter provided,
members of said System subject to all provisions or the Public Employees'
Retirement Law except such as apply only on election or a cuntrctiny
aye, icy and are not provided tor herein and to all amendments to said Caw
hereafter enacted except those, which by express provisions thereof, apply
only on tie election ur a coontractiny ayes Icy.
3. Public Agency agrees to indemnify, defend and hold harmless Me ualitornia
Public Employees' Retirement System (CaIPERS) and its trustees, agents
and employees, the CaIPERS Board of Administration; and the California
Public Employees' Retirement Fund trim any claims, demands, actions,
losses, liat3ilities, 'damages, judgments, e,.penses and costs, including at
not limited to interest, penalties and attorney Tees that may al i e as a result
of any of the tollowiny:
(a) Pabiic Agency's election to provide retirement Benefits;
provisions or rormala3 under this t,untract that are different than
the retirement benefits, provisions or rormalas provided ander the
Public Agency's prior non-CaIPERS retirement program.
Any di5pate, disagreement, claim, or proceeding (including
without limitation araitraticn, administrative heari, iy, or litiyatior F)
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
'ormolus that are different than such employees' existing
retirement 6enerits, pmvisicns or formulas.
(b)
(c)
Public Agency's agreement with a third party other than i✓aIPERS
to provide retirement benefits; provisions, or formulas that are
ditternt than the retirement Benefits, provisions or formulas
provided under this Contract and provided tar ander the Ualitornia
Public Employees' Retirement [ay..
4. Employees of Public Agency hi the following classes shall become
members or said Retirement System except such in each such class as are
excluaea 15y lavv or this ayrsament:
a. Local Police Officers (herein referred to as local sarety mGmbera);
b. Employees other than local satety members (herein referred to as
local miscellanauas member).
5. In addition to the classes of employees excluded rrom mem6erriip by said
retirement Eavv. the tollowiny classes of employees shall not become
members of said Retirement System:
PLEASE DO NOT SIGN "EXHIBIT ONLY"
a. ACC PERSONS EMPLOYED ON OR PRIOR TO SEPTEMBER 15,
2u i 2 vvRu vvERE MEMBERS OF 1 RE COGAC SYSTEM EXCEPT
THOSE IN EMPLOrtvIEll i UN 5EP u EMBER 15, 2012 WHO
WAIVED THEIR RIGHTS UNDER i RE [VEAL SYS i EM AND
RVSE PERSONS WHO WAIVED THEIR RIGH IS BE i vvEEN
MARuR 1✓rS AND MARUR 26, 1976.
6. Prior to January 1, 1 a75, t"nose members vvflv vvem Faired by Pablic Agency
cn a temporary and/or seasonal basis not to exceed ti months vvcrc
eAcluded trom PERS membership by contract. Government koae section
zu336 superseded MI5 contract provision by providing that any sucll
temporary and/or seasonal employees are eAcladed from PERS
membership subsequent to January 1, 1975. Legislation repealed and
replaced said Section with Government Code Section 203u5 eTrective July
1,1994.
7. Assets iieretorore accomalate'a vvith respect to members under the local
retirement system wllo waived their riyPits under that system Flave been
transferred to the Public Employees' Retirement System on April 1 , 1972 or
detvveen IOlar II 15, and March 26, 1976 and applied against tile liability Tor
prior service incurred thereunder. I hat portion of assets so transferred
wrcicl1 represent Mu accumulated contributions (plus interest thereof)
required of the employees under said local system have been credited to
the individual membership account of eacfl sucn employee Under the Public
Employees' Retirement System.
ale percentage ct final compensation to be provided tor each year of
credited prior and current service Tor classic local miscellaneous members
in employment before and not on or auer June 2v, 2uu3 SFiall de determined
in accordance with Section 21354 of said Retirement Caw, sa6ject to Me
rsdactio,n provided therein for service prior to Jane 30, 1976, termination or
Social Security, Tor member vvhoose service has been included in Federal
Social Security (2% at age 55 Frill and IDloditied).
9. I Fie percentage at final compensation to be provided Tor eaull year of
credited prior and torrent service tor classic local miscellaneous members
in employment on or atter Jane 29, 2008 and not entering membership for
the first time in the miscellaneous classification atter September 15, 2012,
shall be determined in accordance witfl Section 21354.4 o,t said Retirement
Caw, subject to the redaction provided therein for service prior to Jane 3u,
v76, termination of Social Security, tor members whose service !las been
included in Federal Social Security (2.5% at aye 55 Fall and Modified).
10. The percentage of final compensation to 6e provided Tor each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification auer
September 15, Zui2 shall be determined in accordance with Section
21353 of said Retirement Cavv (2v/0 at aye 60 Full).
PLEASE Du NOT SIGN "EXHIBIT ONLy"
i Fie percentauu er final compensation to be provided for each year of
credited prior and current service as a Mew ice --cal miscellaneous member
shall be determined in accordance witf! Section 7522.20 or Baia Retimment
Caw (2% at aye 62 Fall).
12. i Fie percentauu er final cempensatien to be provided tor each year of
credited prior and current service as a Classic local satety member shall be
determined in accordance with Section 21362.2 or Baia Retirement Caw (3%
at aye 50 Fall).
13. 1 Fie percentage aT final compensation n to be provided tor each year of
credited prior and current service as a nGYV Iecal satety memaer shall be
determined in accordance with Section (522.25(d) 'vT Baia Retimment Caw
(2.7% at aye 57 Fall).
14. Public Ayen;y elected ana elects to Se subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in rsaaic Death
Benefit).
b. Sections z1b24 and 21bz6 (Post -Retirement Survivor Allowance).
c. Section 21574 (Fourth Level of 155u Survivor Benerita).
a. Suction 20042 (One -Year Final Compensation) for those classic
local miscellaneous memBer entering membership on or prior to
September 15, z012 ana for local surety mem6Gr.
e. Section 21024 (Militaiyy Service Credit as Public Service).
f. Section 20475 (Dirreivnt Level DT Benefits): Section 21353 (2% at
age ou Full formula) and Section 2u037 (i Firee-Year Final
Compensation) are applicable to local misceilaneous member
enteriny membership for the first time with this agency in tPiu
miscellanoas classification after September 15, 2012.
Y.
Section zu5 io (Employees SPiariny Additional uust):
From and after the effective date of this amendment to contract, 3%
rer classic local police members in the Los Gatos Police Officer's
Association
PLEISt DO NOT SIGN "EXHIBI i ONLY"
i Pie portion oT the employer's contri5atiol l that the member agrees
to contribute from Pais or her compensation, over and above the
member's normal contribution i,"Uost Snaring PEMerltaye'), shall not
exceed the Employer Normal Cost Rate, as Mat rate i3 defined in the
UaIPERS Actuarial valuation for the relevant fiscal year. Ir the Cost
Sharing Percentaje will exceed the relevant Employer Normal Cost
Rate, t!e Uost Snaring Percentage shall automatically Be reduced to
an amount equal to, and not to exceed, tile Employer Normal Cost
Rate for the relevant fiscal year.
15. Public Agency, in accordance with Uovernment Code Section 2u7yu,
ceased to Be an "employer" for purposes at Section 20834 effective on July
1, 1976. Accumulated contributions or Public Ayenay shall Be tiAed and
determined as provided in Government uoae Section 20834, and
accumulated contributions thereafter shall be held by the Board as provided
in goverment Code Section 20834.
16. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liaaility with
respect to local miscellaneous members and local safety members or Baia
Retirement System.
17. Public Agency shall also contribute to said Retiree lent System as follows:
a. Luntribatiof is required per covered member on account or Ulu 195y
Survivor Benetits provided ander Section 21574 of said Retirement
Cavv. (Subject to annual change.) In addition: ail assets and liabilities
of Public Agency and its employee3 shall Be pooled in a single
account; based on term insurance rates, for survivor DT all local
miscellaneous members and local safety members.
B. A reasonable amount, as tiAed by the Board, payable in one
installment witPiin nu days UT ante oT contract to cover the costs of
administering said System as it affects Mu employees et Public
Agency, not including the costs of special valuations or Of the
periodic investigation and valuations required by law.
c. R reasonable amount, as TiAea By the Board, payable in one
tf l
installment as the occasions arise, to cover e costs or special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law,
18. Contributions required or Public Agency and its employees shall Be subject
to adjustment by Board on account or amendments to the Public
Employees' Retirement Law, and on account or the experience under Me
Retirement System as determined by the periodic investigation and
valuation required By aaia Retirement Caw.
19. uontri6ation5 mWairaa ut Pa6Iic Agency and its employees shall be paid by
Public Agency to Me Retirement System vvithin fifteen days atter the end of
the period to which said contridutions rem. as may 6e piescri6ed 6y
Board regulation. It more or less than the correct amount UT ;intriBMtibn5
is paid to any period, proper adjustment shall be made in connection with
sudsequent remittances. Adjustments oil account of errors in contributions
required of any employee may de made 6y direct payments between the
employee and the Board.
6. i Rid amendment Shall d
ective on the day of
BOARD OF ADMINIS i RA i +LR . i OvvN COUNCIL
POBLIC EMPLOYEES' R REMEf i SyS i EIGI i uvvf uF CuS GA I US
6r BY
ARNITA PAIGE, ClikEr PRESIDING UFFIGE0
PENSION CONTACTS AND PREFOIQDING
PROGRAMS 1 SIGN t'J
PUBDV EIDI `* YEES' RE r IREMENT SYSTEM
�GJ
Qv
AMENDm!la, Calrerls ID #45159482z8s
R Rs-r.vld-7vzri
vvitness
Attest:-4v
GlerR