To: Honorable Mayor and Members of City Council
From: Heather Ruiz, Human Resources Director
Prepared By: Ashley Titus, Management Analyst II
TITLE:
Title
CalPERS Contract Amendment for Unrepresented Executive Police Safety
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees Retirement System (CalPERS) and the City Council of the City of Napa; and approve the first reading and introduction of an ordinance amending the contract between the Board of Administration of the California Public Employees Retirement System (CalPERS) and the City Council of the City of Napa
Body
DISCUSSION:
On October 21, 2025, the City Council approved changes to the Police Chief’s compensation and benefits, aligning the CalPERS retirement cost share with the Police Management Unit (PMU). Without this adjustment, candidates for the Police Chief in Tier 2 at 3% @ 55 or Public Employee Pension Reform Act (PEPRA) at 2.7% @ 57 formulas would see an increase in their pension cost share, resulting in a decrease in take-home pay. On November 18, 2025, the City Council approved a resolution formalizing the Unrepresented Police Safety Group in accordance with the Public Employees’ Retirement Law (PERL).
The attached Resolution continues to formally establish the Police Chief’s updated pension cost share. CalPERS regulations require that the City Council adopt a Resolution of Intent, giving the public notice of the intention to approve a specific amendment to the CalPERS contract. The contract itself must be amended by Ordinance, the first reading and introduction of which may be done concurrently with the Resolution of Intent, with the second reading occurring no earlier than 20 days after the first reading. The date of final Ordinance adoption will be February 17, 2026; the Ordinance would be effective March 19, 2026; the contract amendment providing this benefit would be effective with the payroll beginning on March 28, 2026.
FINANCIAL IMPACTS:
Adjusting the Unrepresented Police Executive Safety Group’s cost share to align with the Police Management Unit results in a lower employee contribution rate. As a result, the City’s share of the pension contribution will increase slightly.
The current cost share listed is 5.5%. It will be reduced to 3.5% effective January 1, 2026 resulting in a cost of $2,500 for Fiscal Year 2025/26. Additional changes in future years will be required to be brought to Council for subsequent contract amendments and will be budgeted accordingly in future Fiscal Years.
CEQA:
The Human Resource Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution of Intention
ATCH 2 - Ordinance
EX - Amendment to Contract
NOTIFICATION:
Unrepresented Executive Police Safety Group