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May 5, 2026, Item #3
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
May 5, 2026
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk ~
Carrie Gallagher, City Clerk
(858) 668-4530 or [email protected]
CITY COUNCIL
Second Reading and Adoption of Ordinance No. 881 entitled "An Ordinance of the City Council of the City of Poway, California, Authorizing an Amendment to the Contract between the City Council of the City of Poway and the Board of Administration of the California Public Employees' Retirement System (Cal PERS)" The introduction and first reading of the above-entitled Ordinance was approved at a Regular City Council Meeting on April 7, 2026. There were no speakers.
The Ordinance is now presented for second reading and adoption by title only.
Vote at first reading:
Recommended Action:
AYES:
NOES:
PIKUS, MAEDA, VAUS
NONE
ABSTAINED: NONE
ABSENT: DE HOFF
DISQUALIFIED: NONE
It is recommended the City Council adopt Ordinance No. 881.
Environmental Review:
None.
Fiscal Impact:
None.
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May 5, 2026, Item #3
Public Notification:
An ordinance summary notice was published in the Poway News Chieftain on Thursday, April 16, 2026.
A certified copy of this Ordinance will also be posted in the Office of the City Clerk in accordance with Government Code section 36933.
Attachments:
A. Ordinance No. 881
Reviewed/Approved By:
JtL
Tracy Stevens
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
Ap~2
ChrlsHazeltine
City Manager
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May 5, 2026, Item #3
ATTACHMENT A
ORDINANCE NO. 881
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AUTHORIZING AN AMENDMENT TO
THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF POWAY AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
(CALPERS)
WHEREAS, the City Council of the City of Poway does ordain as follows:
SECTION 1: That an amendment to the contract between the City Council of the City of Poway and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked as Exhibit A, and by such reference made a part hereof as though herein set out in full.
SECTION 2: The Mayor of the City Council of the City of Poway is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency.
EFFECTIVE DA TE: This Ordinance shall take effect and be in force thirty (30) days after its adoption.
CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933.
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May 5, 2026, Item #3
Ordinance No. 881
INTRODUCED AND FIRST READ at a Regular meeting of the City Council of the City of Poway, California, held the 7th day of April, 2026, and thereafter.
PASSED AND ADOPTED at a Regular meeting of said City Council held the 5th day of May, 2026, by the following vote, to wit:
AYES:
NOES:
ABSTAINED:
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
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May 5, 2026, Item #3
Exhibit A
A
CalPERS
California
Public Employees' Retirement System
-===♦-===
Ordinance No. 881
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Poway
__ ....._.........., • ..__._.===
The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective February 1, 1981, and witnessed January 28, 1981, and as amended effective December 6, 1982, December 19, 1986, April 3, 1989, June 25, 1990, January 7, 1991, July 7, 1993, September 8, 1993, September 20, 2000, December 6, 2000, June 25, 2001, December 23, 2002, November 17, 2004, and January 9, 2012, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A Paragraphs 1 through 17 are hereby stricken from said contract as executed effective January 9, 2012, and hereby replaced by the following paragraphs numbered 1 through 19 inclusive:
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Ordinance No. 881
1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for classic local miscellaneous members entering membership in the miscellaneous classification on or prior to January 9, 2012, age 60 for classic local miscellaneous members entering membership for the first time in the miscellaneous classification after January 9, 2012, age 62 for new local miscellaneous members, age 50 for classic local safety members entering membership in the safety classification on or prior to January 9, 2012, age 55 for classic local safety members entering membership for the first time in the safety classification after January 9, 2012, and age 57 for new local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from and after February 1, 1981, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency.
3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CalPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' existing retirement benefits, provisions or formulas.
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May 5, 2026, Item #3
Ordinance No. 881
(c) Public Agency's agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law.
4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members); b. Employees other than local safety members (herein referred to as local miscellaneous members).
5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. POLICE OFFICERS.
6. This contract shall be a continuation of the benefits of the contract of the Poway Municipal Water District, hereinafter referred to as "Former Agency", pursuant to Section 20567.2 of the Government Code, Former Agency having ceased to exist and having been required by law to be succeeded by Public Agency on February 1, 1981. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under Former Agency's contract with respect to the Former Agency's employees. Legislation repealed said Section effective January 1, 1988.
7. This contract shall be a continuation of the benefits of the contract of the Pomerado County Water District, hereinafter referred to as "Former Agency", pursuant to Section 20567.2 of the Government Code, Former Agency having ceased to exist and having been required by law to be succeeded by Public Agency on February 1, 1981. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under Former Agency's contract with respect to the Former Agency's employees. Legislation repealed said Section effective January 1, 1988.
8. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member entering membership in the miscellaneous classification on or prior to January 9, 2012, shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
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Ordinance No. 881
9. The percentage of final compensation to be provided for each year of credited current service as a classic local miscellaneous member entering membership for the first time in the miscellaneous classification after January 9, 2012, shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full).
10. The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
11. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member entering membership in the safety classification on or prior to January 9, 2012, shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full).
12. The percentage of final compensation to be provided for each year of credited current service as a classic local safety member entering membership for the first time in the safety classification after January 9, 2012, shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
13. The percentage of final compensation to be provided for each year of credited prior and current service as a new local safety member shall be determined in accordance with Section 7522.25(d) of said Retirement Law (2.7% at age 57 Full).
14. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 20903 (Two Years Additional Service Credit) for local miscellaneous members only.
b. Section 20042 (One-Year Final Compensation) for those classic local miscellaneous members entering membership on or prior to January 9, 2012.
c. Section 21574.5 (Indexed Level of 1959 Survivor Benefits). d. Section 21548 (Pre-Retirement Option 2W Death Benefit). e. Section 21024 (Military Service Credit as Public Service). 9 of 10
May 5, 2026, Item #3
Ordinance No. 881
f. Section 20475 (Different Level of Benefits): Section 21353 (2% @ 60 Full formula) and Section 20037 (Three-Year Final
Compensation) are applicable to classic local miscellaneous members entering membership for the first time with this agency in the miscellaneous classification after January 9, 2012.
Section 21363.1 (3%@ 55 Full formula) is applicable to classic local safety members entering membership for the first time with this agency in the safety classification after January 9, 2012.
15. Public Agency, in accordance with Government Code Section 20834, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be fixed and determined as provided in Government Code Section 20834, and such contributions hereafter made shall be held by the Board as provided in Government Code Section 20834.
16. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System.
17. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574.5 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law.
c. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 10 of 10
May 5, 2026, Item #3
Ordinance No. 881
18. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law.
19. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board.
~
B. This a~ ..... ment shall be effective on the day of ··~ -------- BOARD OF ADMl~TRATION
PUBLIC EMPLOYEE'!fj}lETIREMENT SYSTEM
&;,~ .,,, ,,
BY ?:'~
MELODY BENAVIDES, CHIEF~
PENSION CONTRACTS AND PR~NDING
PROGRAMS DIVISION 0~
PUBLIC EMPLOYEES' RETIREMENT~.STEM
AMENDMENT CalPERS ID# 1599501570
PERS-CON-702A
CITY COUNCIL
CITY OF POWAY
BY __ ~...a-,.---------
PRESI~ OFFICER
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