Title
Second Reading to Adopt an Ordinance to Authorize an Amendment to 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 20516 “Cost Sharing” for Unrepresented Executive Safety Employees
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
On September 16, 2024, the City Council adopted a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System and the City of San Leandro to update the employee cost sharing percentage towards the employer’s contribution rate for Unrepresented Executive Safety Employees, which includes the Police Chief. The next step in the process required by CalPERS is for the City Council to adopt an ordinance to authorize the contract amendment.
RECOMMENDATIONS
Staff recommends that the City Council adopt an ordinance to approve an amendment to the City’s contract with the California Public Employees’ Retirement System (CalPERS) to increase the employee cost share percentage from 1% to 1.5% for unrepresented executive safety employees.
DISCUSSION
CalPERS mandates that any changes to the employee cost share for unrepresented groups must be formally approved by the governing body each year. This annual approval process ensures that adjustments to the cost-sharing requirements are reviewed and validated regularly within pension regulations.
At the September 16, 2024 City Council meeting, the Resolution of Intention was adopted and the Ordinance was introduced. On October 1, 2024, a ballot election was conducted, and the result was verified approving the contract amendment for the updated cost sharing percentage.
A final reading of the Ordinance is presented to the City Council for adoption. If adopted, the contract amendment will be effective December 1, 2024, which is 30 days after the adoption of the Ordinance and the first day of a payroll period.
Staff will present another resolution in 2025 when the cost share percentage is scheduled to increase again.
Fiscal Impacts
There is no fiscal impact with the approval of this resolution. The fiscal impact was incorporated into the budget when the Police Chief’s employment agreement was approved.
ATTACHMENTS:
Attachment A: Ordinance
Attachment B: Amendment to CalPERS contract
PREPARED BY: Yana Taran, Sr. Human Resources Analyst, Human Resources Department