CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
9/14/2026
1 SUBJECT:
Amendments to the Pacifica Police Supervisors Association (PPSA) and Pacifica Police Management Association (PPMA) Memorandum of Understanding (MOU) and prior MOUs regarding CalPERS special compensation requirements and a negotiated PPMA retiree health savings benefit.
RECOMMENDED ACTION:
Approve amendments to the Pacifica Police Supervisors Association (PPSA) and Pacifica Police Management Association (PPMA) Memorandum of Understanding (MOU) and prior MOUs regarding CalPERS special compensation requirements and a negotiated PPMA retiree health savings benefit.
STAFF CONTACT:
Zach Harris, Human Resources Manager
650-339-3461
[email protected]
Marisol Gómez, Director of Finance and Administrative Services 650-501-0257
[email protected]
Yulia Carter, Assistant City Manager
650-501-6004
[email protected]
BACKGROUND:
The City requested review by the California Public Employees’ Retirement System (CalPERS) of certain special compensation provisions contained in the PPSA and PPMA MOUs. Through that review, CalPERS identified provisions requiring clarification to ensure that eligibility requirements and reporting practices are consistent with the Public Employees’ Retirement Law and applicable CalPERS regulations.
The City subsequently worked with CalPERS and the affected bargaining units to revise the current 2025-2028 PPSA/PPMA MOU and to clarify corresponding provisions contained in prior MOUs. The historical amendment is intended to memorialize the eligibility requirements, amounts, conditions of payment, and CalPERS reporting treatment that applied during the respective MOU periods and is not intended to create or expand compensation beyond what was otherwise provided under those agreements.
Separately, during negotiations for the 2025-2028 MOU, the City and PPMA agreed to return to discussions regarding the percentage of accrued sick leave contributed to the retiree health savings (RHS) plan upon retirement or separation. The parties have now completed those discussions and reached agreement to increase the applicable PPMA contribution from 50 percent to 75 percent.
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DISCUSSION:
The proposed actions consist of three related but distinct components.
Current MOU CalPERS Clarifications
The proposed revisions to the 2025-2028 PPSA/PPMA MOU clarify special compensation provisions to better align the language with CalPERS requirements and the guidance provided during its review. Revisions include, among other items:
• Clarifying eligibility for POST Certificate Pay and other applicable special compensation provisions based on bargaining unit and classification requirements; • Removing eligibility language based on “permanent” or “full-time” status where that language could create an unintended distinction among otherwise eligible employees; • Clarifying Acting Assignment Pay and the requirements applicable to temporary upgrade assignments;
• Clarifying Longevity Pay eligibility and removing the “full-time” service requirement; and • Clarifying the administration and reporting of holiday pay, including that this compensation is reported to CalPERS in the pay period in which it is earned.
These changes are intended to provide clearer and more consistent language for administration of special compensation and CalPERS reporting.
Historical MOU Amendment
The parties have also prepared an amendment addressing corresponding provisions contained in the 2018-2021, 2021-2023, and 2023-2025 MOUs.
The historical amendment clarifies the eligibility requirements, payment amounts, conditions of payment, and CalPERS reporting treatment applicable during each respective MOU period. It preserves the compensation structure applicable during those periods while providing language consistent with the clarifications made through the CalPERS review.
The historical amendment does not establish a new compensation program or retroactively increase compensation. Rather, it memorializes and clarifies the provisions applicable during the respective MOU periods to support accurate administration and CalPERS reporting.
PPMA Retiree Health Savings (RHS) Contribution
Separate from the CalPERS-related revisions, the City and PPMA completed discussion of an outstanding item from negotiations concerning the retiree health savings benefit.
Under the existing provision, 50 percent of an eligible PPMA employee’s accrued sick leave is contributed to the designated RHS plan upon retirement or separation from City employment.
The parties have agreed to increase that contribution to 75 percent.
This change represents a negotiated modification to the PPMA benefit and is separate from the CalPERS special compensation revisions described above.
ALTERNATIVE ACTION:
The City Council may decline to approve the proposed amendments and provide alternative Pacifica City Council 3
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direction to staff. Doing so would require staff to return to the affected bargaining units regarding any provisions not approved and could delay implementation of the CalPERS-related clarifications.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the proposed amendments supports Goal #1 with effective personnel administration, compliance with applicable retirement reporting requirements, and the City’s ongoing efforts to maintain clear and consistently administered labor agreements.
FISCAL IMPACT:
The revisions related to CalPERS special compensation are primarily clarifying in nature and are not intended to create new compensation benefits.
The PPMA RHS amendment increases the percentage of eligible accrued sick leave contributed to the RHS plan from 50 percent to 75 percent upon qualifying for retirement or separation. The actual fiscal impact will vary based on the accrued sick leave balances of eligible PPMA employees and the timing of employee retirements or separations.
The estimated fiscal impact ranges from $0, if no qualifying retirements or separations occur during the applicable period, to a maximum of approximately $100k if all eligible staff retire in the same fiscal year. The City annually evaluates and updates its personnel liabilities based on payroll data, accrued leave balances, applicable payout provisions, and other relevant assumptions. Because the proposed amendment changes the value of eligible accrued sick leave payable upon qualifying for retirement or separation, its impact would be incorporated into this existing annual liability assessment and is not expected to materially change the City’s overall budget planning process. Actual cash impacts would occur as eligible employees retire or otherwise qualify for the RHS contribution.
ORIGINATED BY:
Human Resources
ATTACHMENT LIST:
Exhibit A: PPMA.PPSA MOU 2025-2028 - Update - signed (PDF) Exhibit B: PPMA.PPSA MOU 2025-2028-Amendment - signed (PDF) Pacifica City Council 4
September 14, 2026
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING
AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY
OF PACIFICA AND THE PACIFICA POLICE SUPERVISORS ASSOCIATION (PPSA) AND
PACIFICA POLICE MANAGEMENT ASSOCIATION (PPMA), INCLUDING CLARIFICATIONS
RELATED TO CALPERS SPECIAL COMPENSATION REQUIREMENTS AND A NEGOTIATED
CHANGE TO THE PPMA RETIREE HEALTH SAVINGS (RHS) BENEFIT WHEREAS, the City of Pacifica (“City”) and the Pacifica Police Supervisors Association (“PPSA”) and Pacifica Police Management Association (“PPMA”) are parties to a Memorandum of Understanding covering the period July 1, 2025 through June 30, 2028 (“2025-2028 MOU”); and WHEREAS, the City requested review by the California Public Employees’ Retirement System (“CalPERS”) of certain special compensation provisions contained in the PPSA and PPMA MOUs; and
WHEREAS, following that review, the City worked with CalPERS and the affected bargaining units to clarify certain eligibility requirements, conditions of payment, and reporting provisions applicable to special compensation under the Public Employees’ Retirement Law and applicable CalPERS regulations; and
WHEREAS, the City and PPSA/PPMA have agreed to amendments to the 2025-2028 MOU that clarify provisions concerning POST Certificate Pay, education incentive pay, special assignment pay, acting assignment pay, longevity pay, holiday pay, and other related compensation provisions; and
WHEREAS, the City and PPSA/PPMA have also agreed to an amendment addressing corresponding provisions contained in prior MOUs covering July 1, 2018 through June 30, 2021, July 1, 2021 through June 30, 2023, and July 1, 2023 through June 30, 2025; and WHEREAS, the amendment to the prior MOUs is intended to clarify and memorialize the eligibility requirements, amounts, conditions of payment, and CalPERS reporting treatment applicable to compensation provided under the respective MOUs and is not intended to create or expand an entitlement to compensation beyond that otherwise provided under the applicable MOU; and
WHEREAS, separate from the CalPERS-related revisions, the City and PPMA agreed during negotiations for the 2025-2028 MOU to continue discussions regarding the percentage of accrued sick leave contributed to the designated retiree health savings (“RHS”) plan upon retirement or separation from City employment; and
WHEREAS, the City and PPMA have completed those discussions and agreed to increase the applicable RHS contribution from fifty percent (50%) to seventy-five percent (75%) of eligible accrued sick leave, subject to the terms and conditions contained in the amended MOU; and
WHEREAS, the City Council has reviewed the proposed amendments and finds that approval is in the best interests of the City and supports the consistent administration of the Pacifica City Council 5
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City’s labor agreements and retirement reporting obligations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica as follows:
Section 1. The foregoing recitals are true and correct and are incorporated into this Resolution by reference.
Section 2. The City Council hereby approves the amendments to the 2025-2028 Memorandum of Understanding between the City of Pacifica and the Pacifica Police Supervisors Association and Pacifica Police Management Association, substantially in the form presented to the City Council and attached hereto as Exhibit A.
Section 3. The City Council hereby approves the Amendment to the prior Memoranda of Understanding between the City of Pacifica and the Pacifica Police Supervisors Association and Pacifica Police Management Association, substantially in the form presented to the City Council and attached hereto as Exhibit B, including the effective dates applicable to the respective historical MOU periods as set forth therein.
Section 4. The City Council hereby approves the negotiated modification to the PPMA retiree health savings benefit increasing the applicable contribution of eligible accrued sick leave from fifty percent (50%) to seventy-five percent (75%), pursuant to the terms and conditions contained in the amended 2025-2028 MOU.
Section 5. The City Manager, or designee, is authorized to execute the approved amendments on behalf of the City and to make non-substantive, technical, or conforming revisions necessary to effectuate the intent of this Resolution, subject to approval as to form by the City Attorney.
Section 6. The City Manager, Human Resources Manager, and their respective designees are authorized to take all actions reasonably necessary to implement the amendments approved by this Resolution, including making any required payroll and CalPERS reporting adjustments consistent with applicable law and CalPERS requirements.
Section 7. This Resolution shall take effect immediately upon its adoption. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 14th day of September, 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Pacifica City Council 6
September 14, 2026
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney