City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Stephanie Van Steyn, Director of Human Resources |
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Date: |
February 17, 2026 |
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Subject: |
Amendment to CalPERS Contract for the following employee groups: 1) Manteca Firefighters IAFF Local 1874 (Fire Unit); 2) Manteca Mid-Manager Association; 3) Manteca Police Employees’ Association; 4) Unrepresented Executive Management Group; and 5) Unrepresented Management/Confidential Employees’ Unit |
Recommendation:
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Adopt a resolution approving an amendment to contract between the Board of Administration California Public Employees Retirement System (CalPERS) and the City Council of Manteca to provide provisions of Retirement Law (Government Code) section 20516, Employee Cost Sharing and waive the first reading of substitution of the tile and introduce an ordinance of the City Council of the City of Manteca, state of California, adding chapter 2.48.045 to the Manteca Municipal Code to amend the contract between the California Public Employee Retirement System and the City of Manteca per Government Code Section 20516.
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Background:
CalPERS retirement benefits are funded with member (employee) contributions and employer contributions. Under Government Code section 20516 of the California Public Employees’ Retirement Law (PERL), a contracting agency and its employees may agree, in writing, to share the costs of the employer contribution.
Manteca Firefighters IAFF Local 1874 (Fire Unit) - Employee Cost Sharing
Pursuant to the approved memorandum of understanding (MOU) with the Fire Unit effective July 1, 2025, through June 30, 2026, Fire Unit Classic members pay 9% towards the employer contribution. Pursuant to this MOU, the parties agreed the City would amend its CalPERS contract to include formal cost-sharing as soon as administratively possible.
Manteca Mid-Manager Association (MMA) - Employee Cost Sharing
Pursuant to the approved memorandum of understanding (MOU) with MMA effective July 1, 2023, through June 30, 2026, MMA members pay 5.75% towards the employer contribution. The City and MMA subsequently signed a side letter agreement to the MOU, approved by City Council on December 16, 2025, in which the parties agreed the City would amend its CalPERS contract to include formal cost-sharing as soon as administratively possible.
Manteca Police Employees Association (MPEA) - Employee Cost-Sharing
Pursuant to the approved memorandum of understanding (MOU) with MPEA effective July 1, 2023, through June 30, 2026, MPEA members pay 11% towards the employer contribution. The City and MPEA subsequently signed a side letter agreement to the MOU, approved by City Council on December 16, 2025, in which the parties agreed the City would amend its CalPERS contract to include formal cost-sharing as soon as administratively possible.
Unrepresented Employees - Employee Cost-Sharing
The Unrepresented Management/Confidential Employees’ Unit members are paying 5.75% towards the employer cost pursuant to their Compensation and Benefits Plan. The Unrepresented Executive Management Group is paying 8% towards the employer cost pursuant to their respective Compensation and Benefits Plan. At the City Council meeting on December 16, 2025, resolutions covering the Unrepresented groups were also approved, agreeing for the City to amend its CalPERS contract to include formal cost-sharing as soon as administratively possible.
Below are the intended employee contribution amounts under the CalPERS contract cost-sharing:
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Employee Group |
Tiers to Cost-Share 20516(b) |
Percentage of Cost-Share (employer portion) |
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Manteca Firefighters IAFF Local 1874 (Fire Unit) |
Safety Fire Classic Tier I |
9% |
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Mid-Manager Association (MMA) |
Miscellaneous Tier I Miscellaneous Tier II PEPRA |
5.75% |
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Manteca Police Employees’ Association (MPEA) |
Miscellaneous Tier I Miscellaneous Tier II PEPRA |
11% |
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Unrepresented Executive Management |
Miscellaneous Tier I Miscellaneous Tier II Safety Police Tier I (Police Chief) Safety Fire Tier I (Fire Chief) Safety Police Tier II (none at this time) PEPRA Miscellaneous PEPRA Safety Police (none at this time) PEPRA Safety Fire (none at this time) |
8% |
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Unrepresented Management & Exempt-level confidential employees’ unit |
Miscellaneous Tier I Miscellaneous Tier II Safety Fire Tier I (Deputy Fire Chief)- currently 2 positions filled at Safety Tier I Safety Police Tier I and II (none at this time) PEPRA Miscellaneous PEPRA Safety Police (none at this time) PEPRA Safety Fire (none at this time) |
5.75% |
To amend the contract with CalPERS to include the provisions of section 20516, the City Council must adopt a Resolution of Intention (Attachment 1) to Approve an Amendment to Contract (Attachment 2-Exhibit to the Resolution) and adopt an Ordinance Authorizing an Amendment to Contract. The Ordinance must be adopted no less than 20 calendar days following the adoption of the Resolution of Intention.
A Certification of Governing Body’s Action will be required (Attachment 3). Government Code section 7507 requires that the future annual costs or benefit change of the proposed contract amendment be made public at a public meeting at least two weeks prior to the adoption of the final Ordinance. The City will certify compliance on the Certification of Compliance with Government Code section 7507 (Attachment 4); and a Certification of Compliance with Government Code Section 20516 (Attachment 5) must also be completed upon adoption of the Resolution of Intention.
Section 20474 requires a secret ballot election by the employees when amending a retirement contract to provide a benefit that changes the employees’ contribution rate. The secret ballot election must be conducted after the adoption of the Resolution of Intention and before the adoption of the Ordinance. A secret ballot election for these employee groups will be conducted, and the results of the election will be certified on the Certification of Employee Election (Attachment 6). Sample employee ballots are attached for informational purposes (Attachment 7). If the majority of each respective units’ members approve the proposed plan, the City’s CalPERS contract will be amended.
Assuming favorable employee election results, the Ordinance (Attachment 8) will be placed on the City Council agenda for a Council meeting in mid-March or April 2026. The effective date of the contract amendment will be the first day of the payroll period following the effective date of the final Ordinance. The contract amendment will cover applicable members of the Fire Unit, MMA, MPEA, Unrepresented Management/Confidential Employees’ Unit and the Executive Management group.
Fiscal Impact:
Amending the City’s contract with CalPERS to include the provisions of Government Code section 20516, Cost Sharing, will not increase City expenditures for retirement benefits. These employee groups are already paying their respective contributions towards the employer’s share as part of an “informal” method through the MOU.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Exhibit to the Resolution - Amendment to CalPERS Contract
3. Attachment 3 -Certification of Governing Body’s Action (CON-12)
4. Attachment 4 -Certification of Compliance with Government Code Section 7507 (CON-12A)
5. Attachment 5 - Certification of Compliance with Government Code Section 20516 (CON-500)
6. Attachment 6 - Certification of Employee Election Form (CON-15)
7. Attachment 7 - Cost Sharing Ballots (C10022)
8. Attachment 8 - Ordinance