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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Side Letter Agreement Between the City and Glendale Police Officers’ Association (GPOA)
1. Motion Approving Side Letter Agreement Modifying Language in the GPOA Memorandum of Understanding (“MOU”) effective July 1, 2024 to June 30, 2027 to Clarify Intent of Specified Special Compensation Items
COUNCIL ACTION
Item Type: Action Item
Approved for 6/23/2026 calendar
EXECUTIVE SUMMARY
As a contracting agency of the California Public Employees’ Retirement System (CalPERS), the City of Glendale is subject to statutory and regulatory requirements that govern whether compensation is reportable for pension calculation purposes. The Public Employees’ Retirement Law (PERL), the Public Employees’ Pension Reform Act of 2013 (PEPRA), and the California Code of Regulations (CCR) require that contracting agencies must accurately reflect information related to compensation items in approved documentation. For compensation paid in addition to base salary, this must include the relevant intent, eligibility criteria, and conditions of payment.
By way of letter dated November 17, 2025, CalPERS determined that compensation paid and reported to CalPERS for Administrative Assignment Program and Police Agent Program were not compliant under the PERL for a retired Police Officer. The basis for the determination was that the conditions of payment were not contained in a written labor policy or agreement, a requirement under the PERL. The City submitted an appeal on behalf of the Police Officer on January 23, 2026. Separately, in a letter dated November 5, 2025, CalPERS determined that compensation paid and reported as Longevity Pay and Motorcycle Patrol Premium on behalf of a current Police Officer was also non-compliant. The basis for the determination was that the payment of such items was not consistent with the terms contained in the relevant written labor policy or agreement, a requirement under the PERL.
The City has been working with special counsel from Best Best & Krieger, with expertise on CalPERS requirements, to prepare a side letter to the July 1, 2024 through June 30, 210c
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2027 Memorandum of Understanding between the City and the Glendale Police Officers’ Association containing revised language to address the concerns raised by CalPERS. The side letter has been submitted to the CalPERS MOU Review Unit for a compliance statement. If the compliance statement is not received in time, this item will be deferred to a subsequent meeting.
RECOMMENDATION
1. Approve the Side Letter modifying the Longevity Pay, Police Agent Lead Program, Motorcycle Duty, and Police Administrative Officer Pay bringing it into compliance for GPOA employees, past retirees, and future retirees.
ANALYSIS
Special compensation encompasses items paid in addition to base salary that align with the exclusive list of items identified under Title 2 California Code Regulations (“CCR”) section 571(a) for classic CalPERS members and CCR section 571.1(b) for PEPRA CalPERS members. Further, all special compensation must meet the requirements listed under Title 2 CCR section 571(b) for classic CalPERS members and section 571.1(a) for PEPRA CalPERS members.
Longevity Pay
The City’s longevity compensation aligns with “Longevity Pay” special compensation for CalPERS as defined under CCR sections 571 and 571.1.
Longevity Pay is defined in CCR section 571 as follows:
“Additional compensation to employees who have been with an employer, or in a specified job classification, for a certain minimum period of time exceeding five years.”
CalPERS determined the “sworn police officer” eligibility criterion used in the GPOA MOU did not qualify as a specified job classification, and it must be based on “police officer” only. After researching the matter, City staff determined there is no difference in application of longevity pay between “sworn police officer” and “police officer” either historically or for future periods. As such, the Side Letter removes the word “sworn.” Police Agent Program
Compensation reported to CalPERS as Detective Division Premium was for Police Agent Program pay and most closely aligns with the definition of “Lead Worker/Supervisor Premium” special compensation CCR sections 571 and 571.1.
Lead Worker/Supervisor Premium is defined in CCR section 571 as follows:
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“Compensation to employees who are routinely and consistently assigned to a lead or supervisory position over other employees, subordinate classifications, or agency-sponsored program participants.”
Based on discussions with the City and GPOA, Special Counsel suggested that Police Agent Program be renamed to “Police Agent Lead Program,” given the intent to compensate employees for the additional lead duties. Further conforming revisions were made within the Side Letter to clarify the requirements of the program.
Motorcycle Duty
Compensation related to Motorcycle Duty aligns with “Motorcycle Patrol Premium” special compensation for CalPERS as defined under CCR sections 571 and 571.1.
Motorcycle Patrol Premium is defined in CCR section 571 as follows:
“Compensation to local police officers and county peace officers who are routinely and consistently assigned to operate and/or patrol on motorcycle.” The Side Letter makes straightforward clarifications to align with the definition of Motorcycle Patrol Premium by specifying that employees are routinely and consistently assigned and operate a two-wheeled vehicle when receiving the compensation.
Administrative Assignment Program
Compensation for the Administrative Assignment Program most closely aligns with the definition of “Police Administrative Officer” special compensation CCR sections 571 and 571.1.
Police Administrative Officer is defined in CCR section 571 as follows:
“Compensation to rank and file police officers, county peace officers and school police or security officers who are routinely and consistently assigned to police administration to provide support for the police chief and command staff in the operation of the police department.”
After review, City staff determined that the compensation reported to CalPERS as Police Administrative Officer related to the Administrative Assignment Program. Current GPOA language identifies that the compensation applies to employees working schedules other than a 3/12 schedule, and CalPERS determined that this was an impermissible eligibility criterion for Police Administrative Officer compensation. Through research and discussions with GPOA, it was determined that all 3/12 assignments are non- administrative in nature, and that the only employees who receive Administrative 410c
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Assignment Program compensation work in specific assignments that routinely perform administrative roles to support the Police Department.
As such, Special Counsel suggested revised language in the Side Letter to conform with the City’s practice. Specifically, that eligibility for Administrative Assignment Program relies on being in one of the specified roles that routinely performing administrative work, which aligns with CalPERS' definition of “Police Administrative Officer.”
STAKEHOLDERS/OUTREACH
N/A.
FISCAL IMPACT
There is no fiscal impact associated with this report.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is exempt from CEQA/NEPA requirements as it is an administrative activity.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. The Council could choose not to approve the Side Letter. Failure to approve the Side Letter will fail to bring the specified special compensation into compliance for pension calculation purposes and result in adverse impact to retirees.
ADMINISTRATIVE ACTION
Submitted by:
Paula Adams, Chief Human Resources Officer
Prepared by:
Isabel Safie, Special Counsel
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
1. Side letter agreement between the City of Glendale and the Glendale Police Officers’ Association