Agenda Item No: N.11
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-53 HR Side Letters of Agreement for CalPERS Reporting Purposes
Approving and Adopting Side Letters of Agreement Relating to Special Compensation for CalPERS Reporting Purposes
Funding Source: N/A
Contact: Farbod Pirouzmand; (707) 428-7397
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City received a California Public Employees’ Retirement System ( CalPERS) compensation compliance determination finding that Emergency Medical Technician (EMT) and Paramedic pay language in the Fairfield Professional Firefighters’ Association (FPFA) Memorandum of Understanding (MOU) and the Preparatory/Briefing Time Premium Pay language in the Fairfield Police Management Associations’ (FPMA) MOU were not compliant as written for CalPERS reporting purposes. Approval and adoption of the attached resolution will formalize the special compensation language in applicable MOUs and maintain the City’s compliance with applicable CalPERS reporting requirements.
DISCUSSION
The City received a CalPERS compensation compliance determination identifying that the EMT and Paramedic pay provisions in the Fairfield Professional Firefighters’ Association MOU, as well as the Preparatory/Briefing Time Premium Pay language within the Fairfield Police Management Associations’ MOU, were not compliant for CalPERS reporting purposes as written. The City subsequently worked with CalPERS to revise and clarify the applicable special compensation language through side letters so that the languag e conforms to CalPERS reporting requirements while reflecting compensation that had previously been approved and adopted by the City.
California Code of Regulations, Title 2, Section 571 requires that reportable special compensation for classic members be contained in a written labor policy or agreement that is duly approved and adopted by the employer’s governing body in accordance with applicable public meeting laws. Formal approval of the attached side letters by resolution is therefore necessary to validate the City’s reporting of this compensation to CalPERS and to ensure retirement benefits are calculated based on compliant governing documents.
Although the City has already been providing the affected compensation, no new compensation is being estab lished through this action. Rather, this item is administrative in nature and is intended solely to approve the updated side letters containing CalPERS -compliant special compensation language, formalize the documentation supporting existing compensation, a nd maintain the City’s compliance with applicable CalPERS reporting requirements.
Staff recommend approval of the attached resolution approving the side letters for CalPERS reporting purposes.
FINANCIAL IMPACT
The proposed resolution to adopt and approve the side letters of agreement regarding special compensation will not increase staffing costs in the department’s budget.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to adopt the resolution, however, the City will be unable to formally approve the updated special compensation language in the side letters as required for CalPERS reporting purposes. This option will place the City out of compliance with CalPERS regulations regarding the validation of sp ecial compensation for retirement benefit calculations. No alternative action is recommended.
COORDINATED WITH
Finance Department
STAFF CONTACT
Farbod Pirouzmand, Assistant City Manager/Director of Human Resources (707) 428-7397
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Side Letter of Agreement between FPFA and City of Fairfield Attachment 4: Side Letter of Agreement between FPMA and City of Fairfield