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City of San Leandro <br />City Council <br />Meeting Date: April 21, 2025 <br />Agenda Number: 10.a. <br />Agenda Section: ACTION ITEMS <br />File Number: 25-153 <br />File Type: Staff Report <br />Adopt a Resolution of Intention and Introduce an Ordinance to Approve an Amendment to the Contract <br />between the Board of Administration of the California Public Employees’ Retirement System and the City <br />of San Leandro to Include Provisions Pursuant to Government Code Section 20516 “Cost Sharing” for <br />Unrepresented Executive Safety Employees <br />COUNCIL PRIORITY <br />·Infrastructure <br />SUMMARY <br />As permitted by Government Code Section 20516, employees may agree to pay a portion of the <br />employer’s CalPERS contribution. In 2023, the City Council approved the participation of the <br />unrepresented executive safety employees in the cost sharing program; these employees’ cost <br />share is currently 1.5%. For FY 2025-2026, the employee cost share will increase an additional <br />0.5% for an employee cost share of 2.0%. CalPERS requires the City Council to adopt a new <br />resolution when there is a change in the cost share percentage due to the unrepresented status of <br />this group. <br />RECOMMENDATIONS <br />Staff recommends that the City Council approve an additional 0.5% employee cost share towards <br />the employer’s contribution rate, resulting in a total employee cost share of 2.0% for <br />unrepresented executive safety employees effective July 1, 2025. <br />BACKGROUND <br />CalPERS mandates that any changes to the employee cost share for unrepresented groups be <br />formally approved by the governing body. This approval process ensures that adjustments to the <br />cost-sharing requirements are reviewed and validated regularly within pension regulations. <br />Analysis <br />CalPERS requires that specific procedures be followed to amend an agency’s contract. The <br />following steps are being taken to complete the contract amendment process: <br />1.The City Council must adopt a Resolution of Intention to amend the contract. <br />2.A secret ballot election among the employees affected must be held. <br />3.The Ordinance will be presented to the City Council for adoption on May 19, 2025. <br />Page 1 City of San Leandro Printed on 9/4/2025