City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00545 2/25/2025 Consent Item 17.
(Pass for Publication) Ordinance Authorizing An Amendment to the Contract Between the City and the California Public Employees' Retirement System; Resolution Approving the Resolution of Intention To Approve an Amendment To the City’s Contract With the Board of Administration of the California Public Employees’ Retirement System File ID: 2025-00545
Location: Citywide
Recommendation: 1) pass for publication the title of the ordinance authorizing an amendment to the contract between the City of Sacramento and the California Public Employees’ Retirement System, as required by Sacramento City Charter section 32(c) for consideration on March 18, 2025; 2) approve a resolution approving the resolution of intention to approve an amendment to the City’s contract with the Board of Administration of the California Public Employees’ Retirement System.
Contact: Samantha Hardy, Human Resources Manager, (916) 808-7657, [email protected], Department of Human Resources Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance
3-Exhibit 1 (CalPERS Contract Amendment)
4-Resolution Approving Resolution of Intention
5-Exhibit A (CalPERS Resolution of Intention)
6-Exhibit B (CalPERS Contract Amendment)
Description/Analysis
Issue Detail: On August 20, 2024, the City Council approved a resolution to initiate the CalPERS contract amendment process to include the retirement cost sharing specified in the Personnel Resolution Covering Unrepresented Officers and Employees (Unrep Reso). Amending the contract between the City of Sacramento and CalPERS is a multi-step process as required by the Public Employees’ Retirement Law and CalPERS.
The next step of the process is for City Council to approve a resolution of intention to amend its
File ID: 2025-00545 2/25/2025 Consent Item 17.
contract with CalPERS, and then to separately enact an ordinance authorizing an amendment to the City’s contract with CalPERS, as required by the California Government Code. The City Council already passed this same ordinance for publication on January 28, 2025; however, CalPERS requires a minimum of twenty (20) days between the pass for publication date and the date City Council adopts the ordinance. As a result, this ordinance must be passed for publication again to ensure compliance with CalPERS. On the same date, the City Council also approved a similar resolution to approve the resolution of intention. (Resolution No. 2025-0026.) We recommend the City Council supersede it with the approval of this resolution, so the approvals of both the ordinance and resolution coincide.
Retirement cost share amounts paid by Unrepresented officers and employees who are CalPERS Classic members are paid in addition to their CalPERS member retirement contribution rate.
Amending the City’s contract with CalPERS allows the cost share amount paid by the employee to be credited to the employee’s CalPERS account. This action does not change the City’s retirement contribution to CalPERS. The current estimated annual value of the retirement cost sharing included in the Unrep Reso is $198,000.
Policy Considerations: Approval of the resolution of intention continues the administrative process required by CalPERS to include the existing cost sharing specified in the Unrep Reso in the City’s contract with CalPERS.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by CEQA [CEQA guidelines Sections 15061(b)(3); 15378(b)(2)].
Sustainability: There are no sustainability considerations applicable to this action.
Commission/Committee Action: None.
Rationale for Recommendation: The resolution of intention is required by CalPERS to add the cost sharing for Unrepresented Classic officers and employees into the City’s contract with CalPERS.
Financial Considerations: The savings from retirement cost sharing are already included in budgeted labor costs associated with the Unrep Reso, and this action does not increase the City’s retirement contribution to CalPERS.
Local Business Enterprise (LBE): Not applicable.
ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SACRAMENTO AND THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO
SECTION 1.
An amendment to the contract between the City Council of the City of Sacramento and the Board of Administration of the California Public Employees’ Retirement System is authorized. A copy of the amendment is attached to this ordinance as Exhibit 1.
SECTION 2.
The Mayor of the City of Sacramento is authorized, empowered, and directed to execute the amendment for and on behalf of the City of Sacramento.
Exhibit 1
RESOLUTION NO.
Adopted by the Sacramento City Council
Approving the Resolution of Intention to Approve an Amendment To the City’s Contract With the Board of Administration of the
California Public Employees’ Retirement System
BACKGROUND
A. Pursuant to the Personnel Resolution Covering Unrepresented Officers and Employees, all unrepresented Cal PERS Classic Police Safety members shall pay three percentage points of the City’s contribution to CalPERS, unrepresented CalPERS Classic Fire Safety m embers shall pay twelve percentage points of the City’s contribution to CalPERS, and unrepresented CalPERS Classic Miscellaneous members shall pay one percentage point of the City’s contribution to CalPERS.
B. Pursuant to Public Employees’ Retirement Law, th e City of Sacramento must approve a Resolution of Intention to amend the CalPERS contract.
C. On January 28, 2025, the City Council approved a similar resolution of intention . (Resolution No. 2025-0026.) This resolution supersedes it.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1.
The Resolution of Intention (Exhibit A) providing notice of the City's intent to approve an amendment to the contract between the City of Sacramento and the Board of Administration of the California Public Employees' Retirement System (Exhibit B) is approved.
Section 2.
Resolution No. 2025-0026 is hereby rescinded.
Section 3.
Exhibits A and B are a part of this Resolution.
TABLE OF CONTENTS:
Exhibit A – CalPERS Resolution of Intention
Exhibit B – CalPERS Contract Amendment
Exhibit B