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DATE: December 15, 2025
TO: Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: APPROVING THE FOSTER CITY POLICE OFFICER
ASSOCIATION (FCPOA) LETTER OF UNDERSTANDING AND
MANAGEMENT GROUP COMPENSATION AND BENEFITS
PLAN EFFECTIVE JANUARY 1, 2026
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (hereinafter referred to as “City Council”) adopt the attached resolutions approving a Letter of Understanding (LOU) with the Foster City Police Officer Association (FCPOA) and a revised Compensation and Benefits Plan for the unrepresented Management employees, effective January 1, 2026, adding Juneteenth as a recognized holiday and updating the holiday-in-lieu pay calculation to reflect the new holiday.
EXECUTIVE SUMMARY
On April 7, 2025, the City Council approved a revised Memorandum of Understanding with the American Federation of State, County and Municipal Employees (AFSCME) providing Juneteenth (June 19) as a recognized holiday every year. The Compensation and Benefits Plan (CBP) for the unrepresented Management Employees was updated on May 5, 2025 to include Juneteenth and also included a revised calculation for holiday-in-lieu pay for Police Captains and Lieutenants. Recently, management has reached a tentative agreement with the FCPOA through the attached LOU to provide a similar holiday benefit as negotiated with AFSCME and provided to unrepresented
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management. This required a revision to the current MOU to include Juneteenth retroactively to January 1, 2025. Instead of calculating a retroactive revision to the holiday-in-lieu pay, the attached FCPOA LOU provides a lump sum equivalent to the percentage increase for calendar year 2025 and a revision to the holiday-in-lieu pay calculation effective January 1, 2026. It also provides a retroactive premium pay for any Dispatchers that worked the Juneteenth holiday in 2025. This premium pay is already negotiated in the current MOU and will now include Juneteenth as an eligible holiday for Dispatchers. During negotiations with the FCPOA, it was determined that the holiday-in- lieu pay in the CBP for Police Captains and Lieutenants was incorrect and is being updated effective January 1, 2026, to match the amount in the FCPOA.
BACKGROUND/ANALYSIS
The current FCPOA MOU is approved through June 30, 2026. Having consistent observed holidays across the City is a best practice and a goal of City Council. In April 2025, a new AFSCME MOU was approved by City Council granting a holiday for Juneteenth starting with June 19, 2025. In May 2025, the CBP was updated to also include Juneteenth as an observed holiday, starting in 2025, with a calculated amount of holiday-in-lieu pay for Police Captains and Lieutenants. Management approached the FCPOA to negotiate a LOU to provide the Juneteenth holiday to all FCPOA employees and also allow FCPOA employees to participate in the new CARES Leave pilot program. The attached LOU, once executed, will provide the following to the FCPOA:
Additional holiday: Employees within classifications represented by FCPOA shall be retroactively compensated for the Juneteenth holiday, June 19, 2025, in accordance with the terms of the MOU. Dispatchers that worked Juneteenth will receive the premium pay or comp time and Sworn Peace Officers will have their holiday in-lieu percentage revised to 5.85% retroactive to January 1, 2025. However, the parties agree to settle the retroactive payment by paying each actively employed sworn employee, as of August 1, 2025, $100 for each month the employee was in a paid status and eligible for the holiday in-lieu pay. Such payment will be made minus regular and customary withholdings.
CARES Pilot Program: Employees with classifications represented by FCPOA will be eligible to participate in the Foster City CARES leave two-year pilot program to provide salary continuation for employees with qualifying FMLA/CFRA leaves.
The current CBP for Management employees was approved on May 5, 2025. The revised CBP is recommended for City Council approval to update the holiday-in-lieu section of the CBP. In May 2025, the CBP was revised to add Juneteenth as an annual holiday. This equated to a revision of the holiday-in-lieu pay calculation for Police Captains and Lieutenants. It was determined that the percentage of compensation was incorrectly calculated at 5.78% and should’ve been in the amount of 5.85%. Once City Council approves the attached resolutions, Police Captains and Lieutenants will receive a 5.85% holiday-in-lieu pay effective January 1, 2026 and an adjustment retroactive to 1 0
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May 1, 2025 based on the incorrect calculation. Attached is an updated CBP which includes the recommended change.
The above revisions will help with consistency and parity with regards to holidays and the CARES Leave pilot program.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
The provisions proposed in the revised FCPOA LOU and CBP that impact FY 2025- 2026 are estimated at $36,000 which can be absorbed in the current FY 2025-2026 budget due to unspent salaries in the Police Department. The impact of future holiday- in-lieu pay adjustments will be reflected in the budgets of their respective fiscal years.
No supplemental appropriation is needed at this time.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Foster City Police Officers Association Letter of Understanding Attachment 4 – Compensation and Benefits Plan for unrepresented Management Employees effective January 1, 2026