SIDE LETTER OF AGREEMENT BETWEEN CITY OF COTATI
AND COTATI EMPLOYEES ASSOCIATION
RE: CalPERS CONTRIBUTION FOR CLASSIC (TIER 1) MEMBERS
JULY 15, 2026
This side letter agreement between the City of Cotati ("City") and the Cotati Employees Association ("'Association") (collectively referred to as the "parties") confirms the following understandings between the parties.
1. This side letter of agreement shall amend Section 9.01 subsection A to the 2026-2031 MOU between the parties. The parties agree that the MOU shall be amended as follows.
Section 9.01. Public Employees' Retirement System (PERS) A. Classic Members - Tier 1: The following benefits were put into effect for Cotati Employees Association members hired on or before Aprl 127, 2011, which is the date of adoption of the amended City contract with CaPERS:
1. Employees are covered under the "2.7% at 55, single highest years' salary formula." This plan provides for a monthly retirement allowance at age 55 that is equal to the number of years of service multiplied by 0.027 and then multiplied by the average monthly compensation earned during the single highest-paid year of service. Employees may retire at age 55, with five (5) or more years of PERS-credited service.
2. Employees also receive the PERS Section 21574 Fourth Level of 1959 Survivor Benefits.
This benefit costs four dollars ($4) per month per employee. The City shall match two dollars ($2) per month of the cost with each employee. There will be a payroll deduction of one dollar ($I) per semi-monthly pay period.
3. Employees shall contribute 9.371% of the cost for the following retirement benefit enhancements implemented in 2007:
-Section 21354.5 - 2.7% at 55 Full and Modified formula -Section 20042 - One Year Final Compensation
-Section 21574 - Fourth Level of 1959 Survivor Benefits The 9.371 percentage is based on the 2007 PERS actuarial for benefit enhancements (7.546%) plus 2011 rate increase applying to the benefit enhancements (1.825%).
Future increases in the employer contribution may result in a change to the employees' contribution rate to facilitate sharing of costs and continued employee payment for the agreed-upon enhancements. The City and the Association agree to meet each year of the term of this Agreement regarding cost sharing of any increase to the employer contribution.
4. Effective July 1, 2012, employees hired before the date the City adopts a resolution to establish a second pension tier for Classic Members will pay an additional three percent (3%) of the employee contribution to CaPERS for pension.
5. Effective July 1, 2012, Tier 1 Classic employees' contribution to the cost for the 2007 retirement benefits enhancements for CalPERS, will be reduced by two percent (2%) in lieu of the City match for contributions to employee deferred-compensation retirement (457(b)) plan.
SIDE LETTER OF AGREEMENT BETWEEN CITY OF COTATI
AND COTATI EMPLOYEES ASSOCIATION
RE: CalPERS CONTRIBUTION FOR CLASSIC (TIER 1) MEMBERS
JULY 15, 2026
2. The foregoing is in accordance with the parties' understanding.
3. The Association agrees that the City has met its obligation to meet and confer on the contents of this Side Letter.
4. This Side Letter sets forth the full and entire understanding of the parties regarding the matters set forth herein. Any other prior or existing understanding or agreements by the parties whether formal or informal regarding any such matters are hereby superseded or terminated in their entirety.
5. No agreement, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by the parties hereto and, if required, approved and implemented by the City Council of Cotati.
6. The waiver of any breach, term, or condition of this Side Letter of Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.
7. This Side Letter will expire on June 30, 2031, and the changes listed herein will be incorporated into the successor MOU, unless otherwise negotiated by the parties.
APPROVED AND ACCEPTED
FOR THE CITY FOR THE ASSOCIATION
So whee
Date: 715-2026
Date: