Title
Staff Report for the City of San Leandro City Council Adoption of an Ordinance that Amends the Contract Between the City of San Leandro and the Board of Administration of the California Public Employees’ Retirement System (CalPERS) to Provide Section 20516 (Employee Cost Sharing) for the Executive Management Group in Accordance with the Approved City Manager Employment Agreement and for Local Police Members in Accordance with the San Leandro Police Officers Association Memorandum of Understanding.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt the ordinance that authorizes an amendment to the City’s contract with the California Public Employees’ Retirement System (CalPERS) to increase the employee cost sharing of the employer contribution rate for the San Leandro Executive Management Group and for the San Leandro Police Officers Association (SLPOA).
BACKGROUND
On March 4, 2019, the City Council adopted a resolution of intention to approve an amendment to the contract between the Board of Administration of CalPERS and the San Leandro City Council. The City Council also conducted a first reading of an ordinance authorizing the amendment to the contract with CalPERS and the San Leandro City Council to Provide Section 20516 (employee cost sharing) for the San Leandro Executive Management Group in accordance with the City Manager’s employment agreement and for Police employees in accordance with the SLPOA Memorandum of Understanding.
For the City Manager, the change will result in the employee paying an additional 1% towards the employer’s pension contribution rate for a total employee contribution of 11% effective July 1, 2019. SLPOA employees will also pay an additional one percent (1%) towards the employer’s pension contribution rate for a total employee contribution of 12% effective July 1, 2019.
DISCUSSION
In order to implement the provisions of the City Manager’s employment agreement and the San Leandro Police Officers Association MOU, the City Council must amend the City’s contract with CalPERS by July 1, 2019. Approval of the ordinance is the final step to amend the CalPERS contract to modify the terms of the employee cost sharing.
Fiscal Impacts
There is no fiscal impact with the approval of this resolution. The fiscal impact of the cost sharing was presented when the City Manager’s employment agreement and the SLPOA MOU were approved.
Previous Action
City of San Leandro Resolution No. 2019-061 is the required Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employee’s Retirement System and the City of San Leandro.
First Reading of an Ordinance Authorizing an Amendment to the Contract with the Board of Administration of CalPERS to Provide Section 20516 (1% employee cost sharing) for Local Police Members in Accordance with the Memorandum of Understanding.
Attachments:
• Draft Amendment to CalPERS contract
PREPARED BY: Emily Hung, Human Resources Manager, City Manager’s Office