Title
Staff Report to Waive First Reading and Introduce an Ordinance to Amend the Contract between the Board of Administration of the California Public Employees’ Retirement System and the City of San Leandro to Include Provisions Pursuant to Government Code Section 20516 “Cost Sharing” for Classic Local Police Members in Accordance with the San Leandro Police Officers Association (SLPOA) Memorandum of Understanding
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt an ordinance authorizing an amendment to the contract between the City of San Leandro and the Board of Administration of the California Public Employees’ Retirement System (CalPERS) to allow employee cost sharing of the employer contribution rate.
BACKGROUND
On April 17, 2017, the City Council adopted a Resolution of Intention as part of the CalPERS process to amend the City’s contract with CalPERS. Following the April 17th meeting, an employee election was held, as required by CalPERS, to approve the employee cost sharing of the City’s required contribution and the vote was successfully passed by a majority of employees. The CalPERS process now requires an Ordinance be adopted by the City Council in order to complete the contract amendment.
DISCUSSION
In accordance with the MOU between the San Leandro Police Officers Associations (SLPOA) and the City of San Leandro, the employees agreed to the following cost-sharing schedule:
• Effective July 1, 2017, employees will pay an additional one percent (1%) towards the employer’s pension contribution rate for a total employee contribution of 10%.
• Effective July 1, 2018, employees will pay an additional one percent (1%) towards the employer’s pension contribution rate for a total employee contribution of 11%.
• Effective July 1, 2019, employees will pay an additional one percent (1%) towards the employer’s pension contribution rate for a total employee contribution of 12%.
CalPERS requires that specific procedures be followed in order to amend an agency’s contract, and must be repeated each year the contribution rate changes. The following steps are required to complete the process:
1. A Resolution of Intention to amend the contract must be adopted by the City Council. (Completed on April 17, 2017)
2. A secret ballot election among the employees affected must be held. (Completed on April 24, 2017)
3. An Ordinance to amend the contract must be adopted by the City Council.
The Ordinance is being introduced to amend the CalPERS contract to include the cost sharing provision as allowed in Section 20516 of the Public Employee’s Retirement Law.
Fiscal Impacts
There is no fiscal impact with the approval of this ordinance. The fiscal impacts of the MOU were addressed concurrent with its adoption in December 2016.
Previous Action
• Resolution of Intention 2017-054 to approve an amendment to contract between the Board of Administration California Employee’s Retirement System and the City Council City of San Leandro.
• Resolution 16-648 Approving the Memorandum of Understanding between the City of San Leandro and the San Leandro Police Officers’ Association (SLPOA) for the period January 1, 2016 through December 31, 2019.
PREPARED BY: Emily Hung, Human Resources Manager, City Manager’s Office