Item 7 - CalPERS Cost Sharing
PREPARED BY: Lisa Velasco
Human Resources Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/03/2019 ITEM NO: 7
DATE: August 22, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt an Ordinance between the Board of Administration California Public
Employees’ Retirement System and the Town Council to add Government
Code Section 20516, Employees Sharing Additional Cost, for Classic Local
Police Members in the Los Gatos Police Officers’ Association
RECOMMENDATION:
Adopt an Ordinance (Attachment 1) between the Board of Administration California Public
Employees’ Retirement System and the Town Council to add Government Code Section 20516,
Employees Sharing Additional Cost, for Classic Local Police Members in the Los Gatos Police
Officers’ Association.
BACKGROUND:
At the August 6, 2019 meeting, the Town Council adopted a Resolution of Intention and
introduced an Ordinance to add Employees Sharing Additional Cost to the California Public
Employees’ Retirement System (CalPERS) contract. The purpose of the amendment to the
CalPERS contract is to implement the cost-sharing provision contained in the existing
Memorandum of Understanding (MOU) between the Town of Los Gatos and the Police Officers’
Association (POA).
DISCUSSION:
A formal amendment to the retirement contract between the Town of Los Gatos and CalPERS is
required to implement Section 20516 (Employees Sharing Additional Cost). The previously
completed steps of the amendment process included Town Council adoption of a Resolution of
Intention, a first reading to introduce an Ordinance, and a secret ballot election of the
employees impacted by the change. The last step remaining in the process is the
recommendation to Council to adopt the Ordinance. If Council approves the recommendation,
PAGE 2 OF 2 SUBJECT: Adopt an Ordinance between the Board of Administration California Public
Employees’ Retirement System and the Town Council to add Government Code
Section 20516, Employees Sharing Additional Cost, for Classic Local Police Members
in the Los Gatos Police Officers’ Association DATE: August 22, 2019
DISCUSSION (continued):
the effective date of the amendment and the commencement of the additional three percent
(3%) contribution for a total of 12% will be October 6, 2019.
CONCLUSION:
Staff recommends that Council adopt an Ordinance to add Government Code Section 20516,
Employees Sharing Additional Cost, for Classic Local Police Members as the last step in the
CalPERS contract amendment process to comply with the provisions of the current POA MOU.
FISCAL IMPACT:
There is no fiscal impact related to the recommended actions because the Town is complying
with the provisions of the existing POA MOU and the related CalPERS procedures necessary to
implement the pension contract amendment. The overall fiscal impact related to the approval
of the POA MOU was outlined in the staff report presented at the October 16, 2018 Town
Council meeting and is expected to be cost neutral.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Ordinance Between the Town Council and the Board of Administration of the California
Public Employees’ Retirement System
1 of 2
Ordinance Council Meeting Date
ORDINANCE ______
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE TOWN COUNCIL OF THE TOWN
OF LOS GATOS AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM.
NOW, THEREFORE, THE PEOPLE OF THE TOWN OF LOS GATOS AND THE TOWN
COUNCIL DO HEREBY ORDAIN AS FOLLOWS:
SECTION I
That an amendment to the contract between the Town Council of the Town of Los Gatos and
the Board of Administration, California Public Employees’ Retirement System is hereby
authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such
reference made a part hereof as though herein set out in full.
SECTION II
The Mayor of the Town Council is hereby authorized, empowered, and directed to execute said
amendment for and on behalf of said Agency.
SECTION III
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los
Gatos on the 6th day of August 2019, and adopted by the following vote as an ordinance of the
Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on the
3rd day of September 2019. This ordinance takes effect 30 days after it is adopted. In lieu of
publication of the full text of the ordinance within fifteen (15) days after its passage a summary
of the ordinance may be published at least five (5) days prior to and fifteen (15) days after
adoption by the Town Council and a certified copy shall be posted in the office of the Town
Clerk, pursuant to GC 36933(c)(1).
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTACHMENT 1
2 of 2
Ordinance Council Meeting Date
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
A