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DATE: June 1, 2026
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
Marlene Subhashini, Assistant City/District Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: FOSTER CITY POLICE OFFICERS ASSOCIATION (FCPOA) MEMORANDUM OF UNDERSTANDING EFFECTIVE JULY 1,
2026 THROUGH JUNE 30, 2029
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (hereinafter referred to as “City Council”) adopt the attached resolutions (Attachments 1 and 2) approving the Memorandum of Understanding (MOU), effective July 1, 2026 to June 30, 2029, for the Foster City Police Officers Association (FCPOA).
EXECUTIVE SUMMARY
The current MOU for employees represented by FCPOA is set to expire on June 30, 2026. The City’s labor negotiation team and the FCPOA negotiation team met several times to discuss a successor agreement. Members of the FCPOA unit ratified a tentative agreement on May 27, 2026. The good faith efforts of the two bargaining teams have resulted in a three-year MOU that includes increases in compensation (wages, health benefit contributions, education incentive pay, specialty assignment pay, and longevity pay) and updated language changes.
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BACKGROUND/ANALYSIS
The current MOU with FCPOA is set to expire on June 30, 2026. Hiring and retaining police officers (sworn) and dispatchers (non-sworn) has been an ongoing challenge for many cities. The Foster City Police Department (FCPD) has been unable to reach full staffing levels for the past three years. This has reduced the total number of patrol teams by one entire patrol team, resulted in most administrative specialty assignments being vacated so officers can return to patrol duties, and required current police officers to fill in for shortages and work overtime, contributing to staff burnout. The City has also lost experienced officers to other cities.
Management’s goal during these negotiations was to establish a three-year agreement to help make Foster City competitive from a total compensation perspective. The City’s labor negotiation team and the FCPOA negotiation team met several times starting in February 2026 to discuss a new three-year contract. Members of the FCPOA bargaining unit ratified a tentative agreement on May 27, 2026. The tentatively agreed upon changes to the MOU are:
Term: Three years, effective July 1, 2026 to June 30, 2029 Wages:
Market Salary Adjustments: Effective July 1, 2026, the following classifications will receive a market salary adjustment to assist the City in recruiting and retaining:
oPolice Dispatcher 2.5%
oLead Police Dispatcher 2.5%
oPolice Dispatch Supervisor 5.0%
oPolice Officer 5.0%
oPolice Corporal 5.0%
oPolice Sergeant 5.0%
Effective July 1, 2026, add a 6 th step to the salary ranges for Police Officer, Corporals, and Sergeants
Effective July 1, 2026, an across-the-board increase for all bargaining unit classifications equal to a percentage movement of the San Francisco-Hayward- Oakland CPI-U April 2025 to April 2026, with a minimum of 3% and a maximum of 5%.
Effective July 1, 2027, an across-the-board increase for the classifications of Police Dispatcher, Police Lead Dispatcher, and Police Dispatcher Supervisor increase equal to a percentage movement of the San Francisco-Hayward- Oakland CPI-U April 2026 to April 2027, with a minimum of 4% and a maximum of 5%.
Effective July 1, 2027, the classifications of Police Officer, Police Corporal, and Police Sergeant shall receive a five percent (5%) across-the-board increase to base salary.
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Effective July 1, 2028, an across-the-board increase for the classifications of Police Dispatcher, Police Lead Dispatcher, and Police Dispatcher Supervisor increase equal to a percentage movement of the San Francisco-Hayward- Oakland CPI-U April 2027 to April 2028, with a minimum of 4% and a maximum of 5%.
Effective July 1, 2028, the classifications of Police Officer, Police Corporal, and Police Sergeant shall receive a five percent (5%) across-the-board increase to base salary.
Flexible Benefit Plan (Medical, Dental, Vision):
Effective January 1 of each year of the MOU, the Employer’s contribution toward the Flexible Benefit Plan will be increased by the percentage increase in the CalPERS Kaiser Basic Premium Region 1 rate.
No Plan Contribution: Effective July 1, 2026, the no plan contribution will be $600 for new enrollees and will be frozen at the current amount of $1544 for non- sworn and $1655 for sworn and shall remain at such amount for the duration of such election.
Effective January 1, 2027, the city/district will pay 100% of the employees’ dental and vision election which shall include the employee and any covered dependents.
Uniform Allowance:
Increase uniform allowance from $900 a fiscal year to $1,200 a year for sworn and from $400 to $600 a fiscal year for non-sworn
Education/POST Incentive Pay:
Effective July 1, 2026, education incentive pay for possession of a Bachelor’s degree or P.O.S.T Intermediate Certificate will increase from 3.5% to 5% of a sworn employee’s monthly basic salary. The Education Incentive Pay for possession of a Master’s Degree or P.O.S.T Advanced Certificate will increase from 7% to 10% of a sworn employee’s monthly basic salary.
Effective July 1, 2026, the certification pay for dispatchers shall be increased from $200 to 2% for possessing an Intermediate POST Dispatcher Certificate and from $300 to 5.5% for possessing an Advanced POST Dispatcher Certificate Special Assignment Pay:
Motorcycles - Increased $275 to 5% per month above their base pay.
Field Training Officer - Increased from $2.00 per hour to 5% of their base pay per hour.
Canine Handler - Increased $275 to 5% per month above their base pay. 1 2
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Dispatcher Special Training Assignment Pay - Increased from $2.00 per hour to 5% of their base pay per hour.
Night Shift Differential - Formerly only provided to dispatchers $1.10 per hour.
Officers and dispatchers who work night shift will receive 5% above their base rate of pay for all hours worked between 5:00 pm and 7:00 am.
Detective Assignment - Sworn personnel who are assigned to a detective assignment will receive 5% increase to their base monthly salary during such assignment.
Administrative Sergeant – A Police Sergeant who is assigned as the administrative sergeant will receive 5% increase to their base monthly salary during such assignment.
Special Weapons And Tactics (SWAT) – Sworn personnel assigned to SWAT will receive 3% increase to their base monthly salary during such assignment.
Crime Prevention - Sworn personnel assigned to crime prevention will receive 3% increase to their base monthly salary during such assignment.
Longevity Pay:
Effective July 1, 2026, sworn employees who have achieved the corresponding years of service shall be eligible to receive longevity pay as set forth:
Seven (7) years of service: two and one-half percent (2.5%) Eleven (11) years of service: five percent (5%)
Fifteen (15) years of service: seven and one-half percent (7.5%) Nineteen (19) years of service: ten percent (10%)
*Maximum 10%
Wellness Stipend:
Revised the vision and professional development reimbursement to a wellness stipend which was previously $200 a fiscal year to $250. The previous reimbursement was for dispatchers only and this is now open to all employees covered under this MOU.
In addition, the parties did have some language changes which will help in administering the contract and certain provisions of the contract that did not have a cost impact.
Staff is recommending the City Council approve the MOU with an effective date of July 1, 2026 (Attachment 3). Upon adoption, negotiation team members will sign the attached MOU and staff will implement the provisions of the MOU.
California Environmental Quality Act
Not Applicable
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FISCAL IMPACT
The provisions negotiated in this agreement are estimated to cost $1.2 million in FY 2026-27 and $1.4 in FY 2027-28, and have been included in the proposed FY 2026-27 and FY 2027-28 budget which is scheduled for approval at the June 15, 2026 City Council meeting. The impact of future wage adjustments will be reflected in the budgets of their respective fiscal years. No additional 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 (FCPOA) Memorandum of Understanding, effective July 1, 2026 through June 30, 2029 Attachment 4 – Foster City Police Officers Association (FCPOA) Memorandum of Understanding, effective July 1, 2026 through June 30, 2029 with red-lined edits