TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Michelle Tamez, Senior Human Resources Analyst
SUBJECT:
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Second Reading and Adoption of Ordinance No. 633-26 and Ordinance No. 634-26 Amending the City of Murrieta and Murrieta Fire District Contracts with the California Public Employees’ Retirement System (CalPERS) to Include Public Employees’ Pension Reform Act (PEPRA) Language
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ABSTRACT
The proposed action provides for the second reading and adoption of Ordinance No. 633-26 and Ordinance No. 634-26, which amend the City of Murrieta and Murrieta Fire District contracts with the California Public Employees’ Retirement System (CalPERS) to incorporate Public Employees’ Pension Reform Act (PEPRA) language. These administrative amendments ensure the contracts accurately reflect current statutory requirements and do not change retirement benefits or contribution rates.
RECOMMENDATION
recommendation
Conduct the second reading and adopt Ordinance No. 633-26 entitled: An Ordinance of the City Council of the City of Murrieta, California, Approving an Amendment to the Contract Between the City Council of the City of Murrieta and the Board of Administration of the California Public Employees’ Retirement System to Include Public Employees’ Pension Reform Act (PEPRA) Language;
Acting as the Board of Directors of the Murrieta Fire Protection District, conduct the second reading and adopt Ordinance No. 634-26 entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting as the Murrieta Fire District, Approving an Amendment to the Contract Between the Board of Directors of the Murrieta Fire District and the Board of Administration of the California Public Employees’ Retirement System to Include Public Employees’ Pension Reform Act (PEPRA) Language; and
Authorize the City Manager or designee to execute the documents and forms necessary to effectuate the City of Murrieta and Murrieta Fire District Contracts with CalPERS to incorporate PEPRA language.
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PRIOR ACTION/VOTE
On June 2, 2026, the City Council adopted Resolution Nos. 26-4937 and MFD 26-227 and also introduced Ordinances Nos. 633-26 and 634-26 for approval of an Amendment to CalPERS Contracts to include Public Employees’ Pension Reform Act (PEPRA) language for the City of Murrieta and the Murrieta Fire District (Vote: 5-0).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal of: maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency relating to an administrative priority. Amending the City’s contract with CalPERS to incorporate PEPRA language ensures legal compliance, strengthening internal controls and standardizing pension administration. Incorporating PEPRA provisions helps manage long-term pension liabilities, improves financial predictability, and reduces risk.
DISCUSSION
On June 2, 2026, the City Council adopted Resolution No. 26-4937 and Resolution No. MFD 26-227 and introduced Ordinances Nos. 633-26 and 634-26 for first reading. The proposed ordinances amend the City and Murrieta Fire District contracts with CalPERS to formally incorporate PEPRA provisions into the contracts, consistent with current State law and CalPERS requirements. The CalPERS contract amendments were requested by CalPERS.
The amendments are administrative in nature and do not modify employee retirement benefits, contribution rates, or pensionable compensation limits. Adoption of the ordinances completes the contract amendment process and ensures the City and Murrieta Fire District contracts remain consistent with applicable statutory requirements.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
FISCAL IMPACT
There is no fiscal impact associated with the proposed ordinances. Retirement benefits and contributions will continue to be administered in accordance with State law and existing City policies.
ATTACHMENTS
ATT 1 - Ordinance No. 633-26
ATT 2 - Ordinance No. 634-26