Title
Adopt a Resolution of Intention to Approve an Amendment to the Contract between the Board of Administration of the California Public Employees’ Retirement System; and
First Reading and Introduction of an Ordinance to Include Provisions Pursuant to Government Code 20516 “Cost Sharing” for Unrepresented Executive Safety Employees
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
At the City Council meeting on April 3, 2023, the City Council approved a resolution to initiate the employee cost-sharing process with CalPERS for “Unrepresented Executive Safety Employees” who are not part of a bargaining unit. As permitted by Government Code Section 20516, unrepresented executive safety employees, which includes the Police Chief, agree to pay a portion of the employer’s CalPERS contribution.
To formalize this provision with CalPERS, the City Council must next adopt a Resolution of Intention to approve an amendment to the CalPERS contract and introduce an Ordinance authorizing an amendment to the contract. Thereafter, the City Council will consider adoption of the Ordinance authorizing an amendment to the contract on July 17, 2023, as instructed in the CalPERS-approved timelines.
RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution of intention to approve an amendment to the City’s contract with the California Public Employees’ Retirement System (CalPERS) to allow employee cost sharing of the employer contribution rate.
DISCUSSION
As an unrepresented executive safety employee, the Police Chief has agreed to the following cost-sharing schedule:
§ As soon as administratively possible, the Police Chief will contribute one percent (1%) towards the employer’s pension contribution rate.
§ Effective July 1, 2024, the Police Chief will contribute a total of one and half-of-a-percent (1.5%) towards the employer’s pension contribution rate.
§ Effective July 1, 2025, the Police Chief will contribute a total of two percent (2%) towards the employer’s pension contribution rate.
CalPERS requires that specific procedures be followed to amend the City’s contract. The following steps will be taken to complete the contract amendment process:
1. The City Council must adopt a Resolution of Intention to amend the contract.
2. A secret ballot election among affected employees will be held.
3. The Ordinance will be presented to the City Council for adoption on July 17, 2023.
Previous Action
On April 3, 2023, by Resolution No. 2023-035, the City Council approved the Resolution between the City of San Leandro and Unrepresented Executive Safety Employees and executed Amendment No. 1 to the Employment Agreement for Police Chief Abdul Pridgen.
Fiscal Impacts
There is no fiscal impact with the approval of this resolution. The fiscal impact of the cost sharing was presented when Amendment No.1 to the Employment Agreement for Police Chief Abdul Pridgen, and a Resolution to approve Employee Cost-sharing under Government Code Section 20516 by Unrepresented Executive Safety Employees was approved.
ATTACHMENTS
Attachment A: Resolution
Attachment B: Ordinance
Attachment C: Amendment to CalPERS contract
PREPARED BY: Yana Taran, Sr. Human Resources Analyst, Human Resources Department