City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: August 11, 2025
Report #:2507-4928
TITLE
Adoption of Memorandums of Agreement with the Palo Alto Police Officers’ Association (PAPOA) and the Palo Alto Police Managers Association (PMA) for Terms Ending June 30, 2028, and Corresponding Salary Schedules; CEQA Status – Not a Project
RECOMMENDATION
Staff recommend that the City Council:
1) Adopt the Memorandum of Agreement (MOA), and all associated salary schedules, between the City of Palo Alto and the Palo Alto Police Officers’ Association (PAPOA); 2) Adopt the Memorandum of Agreement (MOA), and all associated salary schedules, between the City of Palo Alto and the Palo Alto Police Managers Association (PMA).
BACKGROUND
As a public agency under California law, the City of Palo Alto must meet and confer in good faith with recognized employee organizations on matters relating to wages, hours, and terms and conditions of employment. Following thoughtful and thorough negotiations, City representatives reached tentative agreement with PAPOA. PAPOA has ratified the tentative agreement.
These agreements align with the City's labor strategy to emphasize recruitment and maintaining competitive salaries to attract top talent, to continue improving employee retention and reduce turnover, and to foster a positive work environment to continue being an Employer of Choice. Each agreement builds upon key themes of equity, competitiveness, and operational sustainability as well as focusing on fiscal responsibility. The current agreements expired on June 30, 2025.
ANALYSIS
The agreements continue the City’s successful approach of cost of living adjustments and medical increases aligned across all bargaining groups. As with our other labor groups, the agreements include tailored market-based targeted adjustments intended to attract new
recruits and retain our current staff. Additionally, certification related compensation is adjusted to encourage growth, knowledge and talent development within the organization. Across California, police departments continue to have significant recruiting challenges to hire officers.
As reported to Council on June 16, PAPOA has 9 vacancies.1 The City’s goal with this new agreement is to halt costly turnover and maintain the community ‘s public safety service expectations.
Term: through June 30, 2028 (3-year term)
Cost of Living Adjustment:
FY 2026: 3%
FY 2027: 3%
FY 2028: 3%
Medical Contributions:
August 2025: alignment with SEIU (all units will be on one flat rate) Jan 2026: None
Jan 2027: Avg. of 4% increase in flat-rate contributions Jan 2028: 4% increase in flat-rate contribution
Market-Based or Certification Based Enhancements outlined by group:
PAPOA – Palo Alto Police Officers’ Association
Unit Description: The Palo Alto Police Officers’ Association represents the City’s sworn Police Officer, Agents and Sergeants. This unit is comprised of 78 full time equivalent “FTE” and is responsible for serving on the frontline of public safety, enforcing laws, and engaging with the community.
This agreement helps address the hard-to-fill positions by maintaining a competitive market placement and creating professional growth incentives to attract and retain qualified staff.
Specific adjustments for PAPOA include:
Market Based Adjustment:
oFY 2025: 0.75%
1 City Council Meeting, June 16, 2025, Item 23,
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16147 oFY 2026: 0.5%
oFT 2028: 0.5%
Deferred Compensation for PEPRA increased from $50 per mo., to $150 per mo. Detective Pay special compensation of 5%
Advance POST certificate increased from 2.5% to 5% in July 2026 PMA – Palo Alto Police Manager’s Association
Unit Description: The Palo Alto Police Managers’ Association (PAPMA) represents the City’s sworn Police Lieutenants and Captains. The unit is comprised of 7 FTE who provide upper and middle management level leadership within the Police Department, overseeing personnel and training programs, managing field services (including patrol and emergency response) and directing investigative operations.
This agreement retains the current structure in place to support internal growth within the department by maintaining the spread between Sergeants and Lieutenants. Furthermore, the agreement helps retain our experienced managers and appeals to prospective police managers.
Specific Adjustments include:
Market Based Adjustment: 1% annually starting in FY 2026 Deferred Compensation: FY 2027: $250 per month, FY 2028: $400 per month Excess Management Benefit Increase from $2,500 to $3,000 annually starting in FY 2026
FISCAL/RESOURCE IMPACT
Adoption of the Memorandum of Agreements for PAPAO and PMA will result in estimated cost increases of $6.4 million in the General Fund over the three-year term, ending June 30, 2028. The first-year contract costs were incorporated into the FY 2026 Adopted Budget, and costs for years two and three of the contracts were included in the General Fund long-range financial forecast; however, final estimates may vary based on actual staffing levels, classification changes, and health plan enrollment. Staff will incorporate these agreements into the development of future long-range forecasts and operating budgets.
STAKEHOLDER ENGAGEMENT
All MOAs and compensation plans were ratified by the respective bargaining units and reviewed by internal stakeholders. Following Council adoption, documents will be publicly posted.
ENVIRONMENTAL REVIEW
The proposed Council action is not a project under the California Environmental Quality Act (CEQA), as it involves organizational and administrative activities. (CEQA Guidelines, Section 15378(b)(2))
ATTACHMENTS
Attachment A: MOA – PAPOA
Attachment B: Salary Schedule - PAPOA
Attachment C: MOA – PMA
Attachment D: Salary Schedule - PMA
APPROVED BY:
Sandra Blanch, Human Resources Director