CC RESOLUTION 5394RESOLUTION NO. 5394
A RESOLUTION ADOPTING A SIDE LETTER AGREEMENT BETWEEN
MEMBERS OF THE SUPERVISORY AND PROFESSIONAL
EMPLOYEES' ASSOCIATION ("SPEA") AND THE CITY OF EL
SEGUNDO TO SHARE THE COSTS OF THE EMPLOYER
CONTRIBUTION PURSUANT TO GOVERNMENT CODE SECTION
20516
The City Council of the City of El Segundo does hereby resolve as follows:
SECTION 1- The City of El Segundo Supervisory and Professional Employees'
Association ("SPEA") and the City of El Segundo, are currently parties to a Memorandum
of Understanding ("MOU") with a term of October 1, 2018, through September 30, 2022.
SECTION 2: The MOU provides that "effective on the first day of the first full pay -period
in September 2021, miscellaneous employees defined as "classic" members by the
California Pension Reform Act of 2013 (A13340) agree to pay an additional one percent
(1 %) for a total required employee contribution of eight percent (8%) (pre-tax) of
compensation" (2018-2022 SPEA MOU, Art. IV, Sec. 1, Subd. (e); Para. i.).
SECTION 3: The City did not start the withholding in September 2021 or withhold the
agreed upon amount from "classic" members during the term of the MOU.
SECTION 4: Representatives from the City and SPEA met and conferred in good faith to
reach a Side Letter Agreement to start the withholding while they negotiate a successor
MOU.
SECTION 5: The parties reached agreement on the Side Letter Agreement in or around
January 2023.
SECTION 6: In January and February 2023, members of SPEA voted to ratify the Side
Letter Agreement to start the withholding while the City completes the formal CaIPERS
contract amendment process.
SECTION 7: The following language shall replace the language provided at Article IV
Section 1 Subdivision (e) Paragraph i. of the 2018-2022 MOU between the City and
SPEA, and shall be incorporated into the successor MOU between the City and SPEA:
Effective the first pay period following the City's submission
to CalPERS of the forms necessary in order for CalPERS to
review and approve a proposed amendment to the City's
contract with CalPERS, and pursuant to Government Code
section 20516, subdivision (f), employees who are
considered to be "classic members" (i.e., all employees that
RESOLUTION NO. 5394
PAGE 1 of 3
do not qualify as "new" members under the Public
Employees' Pension Reform Act of 2013 ("PEPRA")) shall
contribute an additional one percent (1 %) of their
compensation earnable toward the employer's required
contribution to the California Public Employees' Retirement
System ("CalPERS") for retirement benefits.
The one percent (1 %) contribution by "classic members"
shall be made via payroll deductions and shall be
administered by the City.
As a result of the additional contribution, the total withholding
for employees who qualify as "classic members" shall
increase from the current seven percent (7%) statutory
member contribution to eight percent (8%), which shall
include the one percent (1 %) cost -sharing amount.
The City shall continue such withholding pursuant to
Government Code section 20516, subdivision (f), until such
time as the City amends its contract with CalPERS, at which
time the employee contribution rate shall be governed by the
terms of that contract.
SECTION 8: The City Clerk is directed to certify the adoption of this Resolution; record
this Resolution in the book of the City's original resolutions, and make a minute of this
adoption of the Resolution in the City Council's records and the minutes of this meeting.
SECTION 9: This Resolution will become effective immediately and will remain effective
unless repealed or superseded.
PASSED AND ADOPTED RESOLUTION NO, 5 94 this 21st day of February, 2023.
Drew Boyles, Mayor
A EaT: .Kepi
Tracy "W e er, City Clerk
AP7 AS TO C3RM.
Mark D. H s , City Actor y
RESOLUTION NO. 5394
PAGE 2 of 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5394 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 21St day of February, 2023, approved and signed by the
Mayor Pro Tem, and attested to by the City Clerk, by the following vote:
AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk,
Council Member Giroux, and Council Member Baldino
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of February,
2023.
Id
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TraivWeaver, City Clerk
of the City of El Segundo,
California
RESOLUTION NO. 5394
PAGE 3 of 3
Agreement No. 5759A
SIDE LETTER AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND THE EL
SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES ASSOCIATION
This Side Letter of Agreement ("Agreement") between the City of El Segundo ("City") and
the El Segundo Supervisory and Professional Employees Association ("SPEA")
(hereinafter referred to as the "Parties") is entered into with respect to the following:
WHEREAS, the Parties are currently parties to a Memorandum of Understanding
("MOU") with a term of October 1, 2018 through September 30, 2022; and
WHEREAS, the MOU provides that "effective on the first day of the first full pay -
period in September 2021, miscellaneous employees defined as "classic" members by
the California Pension Reform Act of 2013'(AB340) agree to pay an additional one percent
(1 %) for a total required employee contribution of eight percent (8%) (pre-tax) of
compensation" (2018-2022 SPEA MOU, Art. IV, Sec. 1, Subd. (e); Para. i.);
WHEREAS, the City did not start the withholding in September 2021 or withhold
the agreed upon amount from "classic" members during the term of the MOU; and
WHEREAS, the Parties are interested in starting the withholding while they
negotiate a successor MOU.
WHEREAS, the following sets forth the Parties' Agreement:
Within two (2) weeks of the City Council adopting the resolution approving this side
letter, the City will send an executed copy of this side- letter to the California Public
Employmees' Retirement System ("CaIPERS") requesting an amendment to the City's
contract with CaIPERS in order for the contract to reflect that the additional one percent
(1%) that the City is providing to CaIPERS is a contribution by members, not the City;
As soon as is practicable following the City's receipt of "Resolution of Intention
Packet" from CaIPERS, SPEA will conduct an election of the "classic" members in the
bargaining unit. As soon as is practicable following the completion of the election, the City
will submit to the City Council a resolution authorizing the contract amendment. As soon
as is practicable following the City Council's vote on the resolution, the City will submit to
CaIPERS the forms necessary for CaIPERS to review and approve the proposed contract
amendment;
In the first full pay period following the City's submission to CaIPERS of the forms
necessary for CaIPERS to review and approve the proposed contract amendment, the
City will deduct from each "classic" member's compensation earnable an additional one
percent (1 %). Until such time as CaIPERS approves the contract amendment, this
additional one percent (1%) will constitute an employer contribution;
10362972.2 EL140-137-1/31/23
Agreement No. 5759A
When CaIPERS approves the contract amendment, the City will notify SPEA and
will change how the City reports the contributions to CaIPERS such that SPEA members
receive credit for the additional one percent (1 %) as a member contribution; and
The following language shall replace the language provided at Article IV Section
1 Subdivision (e) Paragraph i. of the 2018-2022 MOU between the City and SPEA, and
shall be incorporated into the successor MOU between the City and SPEA:
Effective the first pay period following the City's submission
to CaIPERS of the forms necessary in order for CaIPERS to
review and approve a proposed amendment to the City's
contract with CaIPERS, and pursuant to Government Code
section 20516, subdivision (f), employees who are
considered to be "classic members" (i.e., all employees that
do not qualify as "new" members under the Public
Employees' Pension Reform Act of 2013 ("PEPRA")) shall
contribute an additional one percent (1 %) of their
compensation earnable toward the employer's required
contribution to the California Public Employees' Retirement
System ("CaIPERS") for retirement benefits.
The one percent (1%) contribution by "classic members"
shall be made via payroll deductions and shall be
administered by the City.
As a result of the additional contribution, the total withholding
for employees who qualify as "classic members" shall
increase from the current seven percent (7%) statutory
member contribution to eight percent (8%), which shall
include the one percent (1%) cost -sharing amount.
The City shall continue such withholding pursuant to
Government Code section 20516, subdivision (f), until such
time as the City amends its contract with CaIPERS, at which
time the employee contribution rate shall be governed by the
terms of that contract.
10362972.2 LL140-137-1131/23
Agreement No. 5759A
FOR THE CITY OF EL SEGUNDO
Z-j3-Z3
Darrell George, City Manager
Date
Rebecca Redyk, Date
Director of Human Resources
r
2j Zo'Z"3
Bander Volbe g, Date
Labor Negotiato
FOR THE EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES
ASS I TION
LaTodya Fair, President
Mari errito, "Treasurer
ra, Vice President #2
RD94ado, Vice President #1
Eva Gettler, ge&to/
Vicky B rker
Labor Negotiator
10362972.2 EL 140-137 -1 /31123
2/9/�az 3
Date
Date
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Date
P11-/ 2-da-3
Date
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Date
02/09/2023
Date