DATE:
September 3, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
John I. Kennedy, City Attorney
SUBJECT:
Resolution Of Intention To Approve An Amendment To Contract Between The Board Of Administration Of The California Public Employees’ Retirement System And The City Council Of The City Of Emeryville Introduction And First Reading Of An Ordinance Of The City Council Of The City Of Emeryville Authorizing An Amendment To The Contract Between The City Of Emeryville And The Board Of Administration Of The California Public Employees’ Retirement System (PERS) To Provide For The Merger Of The Management Of Emeryville Services Authority’s (MESA) PERS Contract Into The City Of Emeryville’s PERS Contract Recommendation
Staff recommends that the City Council adopt the attached Resolution of Intention to approve an amendment to the contract between The Board of Administration, California Public Employees’ Retirement System (PERS) and the City Council of the City of Emeryville and introduce and waive first reading of the attached Ordinance, which approves an amendment to the contract between the Board of Administration, California Public Employees’ Retirement System (PERS) and the City of Emeryville, to provide for the merger of Management of Emeryville Services Authority’s (MESA) PERS contract into the City of Emeryville’s PERS contract.
Background
On September 1, 1999, MESA entered into a contract with PERS to provide employees of MESA with retirement benefits through PERS in accordance with the Public Employees’ Retirement Law (PERL). On June 24, 2022, PERS issued a final determination letter finding that a former City Manager was a common law employee of the City for the purposes of PERL and not a common law employee of MESA and that this employee should be retroactively enrolled in PERS under the City’s contract. After an appeal of this determination was filed, a settlement agreement was entered into requiring that MESA’s PERS contract be merged into the City’s PERS contract so that all current and former individuals enrolled in the MESA contract are enrolled into the City’s PERS contract.
Discussion
In order to implement the contract amendment, the City must amend its current contract with PERS by an ordinance approved by the City Council. Prior to adopting the ordinance, the City Council must first adopt a Resolution of Intention indicating its intent to approve a contract amendment. Pursuant to Government Code Section 20471, there must be a 20-day period between the adoption of the Resolution of Intention and final adoption of the Ordinance. The first reading of the Ordinance to amend the contract is scheduled for the September 3, 2024 City Council meeting. If the first reading is approved, the final adoption of the Ordinance will be scheduled for the October 1, 2024 City Council meeting. The Ordinance will be effective October 31, 2024.
The Resolution of Intention requires the signature of the presiding officer, the Mayor of the City Council of the City of Emeryville, and the date it was adopted. In addition to providing the copy of the Resolution of Intention, the City must provide the following certifications to PERS:
Certification of the Governing Body’s Action (completed by the City Clerk – original), Certification of Compliance with Government Code Section 7507 (completed by the City Clerk) As a condition of the settlement agreement, the merger process requires the City Council to approve an amendment to the existing contract between PERS and the City. After the contract amendment process and merger have been completed, PERS will dissolve MESA’s PERS plan within thirty days.
Fiscal Impact
PERS’ disclosure requirements mandate the following language is disclosed relative to the costs of the contract amendment, and that the future annual costs or benefits be made public at a public meeting at least two weeks prior to the adoption of the final Ordinance. We have been informed by PERS that there will be no fiscal impact to the City as a result of the merger of MESA’s PERS contract into the City’s PERS contract.
ENVIRONMENTAL ANALYSIS
This ordinance is exempt from CEQA in that it is not a “Project” pursuant to state CEQA Guidelines 15378; and that it can be seen with certainty that there is no possibility that adoption of the ordinance may have a significant effect on the environment, pursuant to state CEQA Guidelines 15061(b)(3). staff communication with the public
None
Conclusion
Staff recommends that the City Council of the City of Emeryville take the following actions:
Adopt the Resolution of Intention and authorize the Mayor and the Clerk to execute the required documents.
Introduce the ordinance by title only.
Provide for public comment.
Adopt the first reading of the Ordinance
PREPARED BY: John I. Kennedy, City Attorney
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Resolution of Intention Exhibit A: Proposed Amendment to Contract Certification of Governing Body’s Action
Certification of Compliance with Government Code Section 7507 Ordinance
Resolution of Intention and Ordinance Authorizing Amendment to the PERS Contract City Council Meeting | September 3, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM