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: |
December 16, 2025 |
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Subject: |
Approve the agreements and updated plan documents for the Unrepresented Employees (Confidential Employees’ and Executive Management), Manteca Police Employees’ Association, and Mid-Manager Association regarding the intent to amend the City’s CalPERS Contract to include formal cost-sharing, pursuant to California Government Code Section 20516(b) |
Recommendation:
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Approve the updates regarding the intent to amend the City’s CalPERS contract to include formal cost-sharing agreements under California Government Code Section 20516(b), through the following: a Side Letter Agreement with the Manteca Police Employees’ Association (MPEA), a Side Letter Agreement with the Mid-Manager Association (MMA), adopt a resolution signed by Unrepresented Employees, updates to the Unrepresented Management/Confidential Employees’ Unit (CEU) Compensation and Benefit Plan, and updates to the Executive Management Compensation and Benefit Plan.
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Background:
Last year, the City amended its CalPERS contract to include formal cost-sharing for the Manteca Police Officers’ Association (MPOA) and the Manteca Public Safety Management Association (MPSMA). When the City agreed to a successor Memorandum of Understanding (MOU) with the Fire Unit in September 2025, the MOU also included the agreement for the City to amend its CalPERS contract to include formal cost-sharing for their unit. Subsequently, other units at the City followed suit and agreed to be included in the formal cost-sharing arrangement which can only be accomplished by a CalPERS contract amendment pursuant to California Government Code Section 20516(b). Previously, the agreements were “informal” and only covered under Government Code Section 20516(f), which has tax disadvantages.
Human Resources has since met and conferred with the MPEA and MMA units, both of which have agreed to be part of the upcoming CalPERS contract amendment for formal cost-sharing. As a result, the City has entered into side letter agreements with these units (attached). Additionally, the Unrepresented Management/CEU and Executive Management units have also agreed to participate in the contract amendment process for cost-sharing under Government Code Section 20516(b). A resolution, with signatures, is therefore attached for Council’s approval tonight.
Fiscal Impact:
There is no fiscal impact from approving the MPEA side letter, MMA side letter, or the updates to the Unrepresented/CEU Compensation and Benefits Plan and Executive Management Compensation and Benefits Plan. Employees in these groups are already contributing to the employer’s retirement contribution through the “informal” method outlined in their respective MOUs and the Unrepresented Compensation and Benefit Plan documents.
CalPERS requires that the explicit agreement to cost-sharing under 20516(b) be approved by Council to initiate the contract amendment. The benefits of formalizing the cost-sharing arrangement are that employees’ additional contributions may be designated as pre-tax, pursuant to IRS regulations, and the additional contributions will be credited to CalPERS as a member contribution.
Below are the current contributions towards the employer share for each of these units, which will remain unchanged:
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Employee Group |
% contributed towards employer share |
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MPEA |
11.00% (Classic and PEPRA) |
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MMA |
5.75% (Classic and PEPRA) |
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Unrepresented/CEU exempt-level employees |
5.75% (Classic and PEPRA) |
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Unrepresented/Executive Management |
8.00% (Classic and PEPRA) |
Documents Attached:
1. Attachment 1 - Unrepresented Resolution with Signatures
2. Attachment 2 - MPEA Side Letter
3. Attachment 3 - MMA Side Letter
4. Attachment 4 - Unrepresented Management/Confidential Employees’ Unit Compensation and Benefits Plan
5. Attachment 5 - Unrepresented Executive Management Compensation and Benefits Plan