Staff Report
City Council
Item No. 3.D
Meeting Date: April 8, 2026
From: Asusena H. Soren, Human Resources Manager
Title: CCPOA CalPERS Compliance
RECOMMENDATION:
To authorize the City Manager to extend the current side letter with the Cathedral City Police Officers Association (CCPOA), updating MOU language to ensure compliance with CalPERS reporting requirements for special compensation.
BACKGROUND:
Historically, Cathedral City has provided various special compensation items to its police personnel in recognition of specialized training, education, and certifications that enhance their ability to better serve the community. On March 20, 2025, a Memorandum of Understanding (MOU) was executed between the City of Cathedral City (City) and the CCPOA for the term of January 1, 2025, through December 31, 2027. These special compensation items were included in the MOU.
Special compensation in the MOU must meet the definitions outlined in CCR section 571 for classic members or CCR section 571.1 for new members in order to be reportable to the California Public Employees’ Retirement System (CalPERS), which defines special compensation as compensation in addition to base pay that must meet specific criteria to be considered pensionable. For such compensation to be included in retirement benefit calculations, however, it must be properly documented in labor agreements (MOU’s) and meet all statutory and regulatory requirements.
To properly document these items to be able to include retirement benefit calculations, a side letter was executed on June 26, 2025, making the correction to the effective date of the MOU, January 1, 2025.
DISCUSSION:
In January of 2026, CalPERS conducted a compliance review and found that while the current side letter corrected the findings to January 1, 2025, it did not address the previous five (5) years. Generally, CalPERS’ compliance reviews encompass a five (5) year period.
After discussion with CalPERS and the CCPOA President, it was determined the best course of action to address the findings was to modify the original side letter and make it retroactive to January 1, 2021.
The City intends on updating the current MOU language during the next round of negotiations in 2027.
FISCAL IMPACT:
There is no fiscal impact associated with this item. The recommended changes affect reporting language only and do not alter compensation amounts. However, proper CalPERS reporting ensures accurate retirement benefit calculations and helps prevent potential future CalPERS audit findings that could result in retroactive adjustments.
FIVE-YEAR STRATEGIC PLAN:
Goal A - SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity, and inclusion driven employee programs and experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards.
ATTACHMENTS:
1. New CCPOA Side Letter, 04.08.2026, effective 01/01/2021
2. Original CCPOA Side Letter, 05.20.2025, effective 01/01/2025