PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
Meeting Date: August 5, 2025
TITLE:
Side Letter Agreements to Memorandum of Understanding with Pismo Beach Police Officers Association, and Full-Time Non-Represented Employees Resolution
RECOMMENDATION:
Adopt a Resolution:
1. Approving a Side Letter Agreement to the Memorandum of Understanding with the Pismo Beach Police Officers Association (POA); and
2. Approving a Side Letter Agreement to the Full-Time Non-Represented Employees Resolution.
DISCUSSION:
On June 3, 2025, and June 17, 2025, respectively, the City Council adopted Resolution R-2025-033 and Resolution R-2025-043, approving a three-year Memorandum of Understanding (MOU) with the Pismo Beach Police Officers Association bargaining team and the Full-Time Non-Represented Employees Resolution for the period of July 1, 2025, through June 30, 2028 (Fiscal Years 2026, 2027, and 2028).
Following approval, staff identified a provision that is no longer in full compliance with California Public Employees’ Retirement Law (PERL) as administered by CalPERS.
Specifically, as staff began implementing the approved salary and benefit changes, CalPERS identified language in the Longevity section regarding prior service credit for sworn law enforcement personnel that does not align with updated compliance requirements. CalPERS is now requesting that references to sworn service at agencies other than the City of Pismo Beach be explicitly defined using applicable sections of the California Penal Code.
To proactively address this issue and ensure continued compliance with CalPERS requirements, staff recommend revising the Longevity language within both the Police Officers Association MOU and the Full-Time Non-Represented Employees Resolution.
Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) approving the Police Officers Association MOU Side Letter Agreements (Attachments 2); and Full- Time Non-Represented Employees Resolution (Attachment 3).
FISCAL IMPACT:
There is no fiscal impact by adopting the attached resolutions, as this is an administrative change to comply with CalPERS requirements.
Council Agenda 8-5-2025 9.E-1
ATTACHMENTS:
1. Resolution
2. Side Letter Agreement to the MOU with POA
3. Side Letter Agreement to the Full-Time Non-Represented Employees Resolution Prepared by:
Bianka Buchanan, Human Resources Officer
Submitted by: Mike James, Assistant City Manager
City Manager Approval:
Council Agenda 8-5-2025 9.E-2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROVING A SIDE LETTER AGREEMENT TO THE MEMORANDUM
OF UNDERSTANDING WITH PISMO BEACH POLICE OFFICERS ASSOCIATION (POA), AND APPROVING A SIDE LETTER AGREEMENT TO THE FULL-TIME NON-
REPRESENTED EMPLOYEES RESOLUTION
WHEREAS, the Memorandum of Understanding (MOU) is the collective bargaining agreement between the City of Pismo Beach and the Police Officers Association; and WHEREAS, on June 3, 2025, the City Council adopted Resolution R-2025-033 approving a three-year MOU with the Pismo Beach Police Officers Association for the period of July 1, 2025, through June 30, 2028 (Fiscal Years 2026, 2027, and 2028); and WHEREAS, the Full-Time Non-Represented Resolution is a wage and benefits resolution between the City of Pismo Beach and the Full-Time Non-Represented employees; and WHEREAS, on June 17, 2025, the City Council adopted Resolution R-2025-043 approving a three-year wage and benefits resolution for the Full-Time Non-Represented employees for the period of July 1, 2025, through June 30, 2028 (Fiscal Years 2026, 2027, and 2028); and
WHEREAS, a Side Letter Agreement is proposed to address language in the Longevity Pay section regarding prior service credit for sworn law enforcement personnel that does not align with updated compliance requirements; and
WHEREAS, to ensure compliance with California Public Employees’ Retirement Law (PERL) as administered by CalPERS, the City Council recommends amending the language to comply with CalPERS requirements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves Side Letter Agreements to both the Memorandum of Understanding with Pismo Beach Police Officers Association (POA), and the Full-Time Non-Represented Employees Resolution for July 1, 2025, through June 30, 2028, as attached to staff’s report dated August 5, 2025.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of August 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Attachment 1
Council Agenda 8-5-2025 9.E-3
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Attachment 1
Council Agenda 8-5-2025 9.E-4
SIDE LETTER AGREEMENT BETWEEN
THE CITY OF PISMO BEACH,
CALIFORNIA
(HEREINAFTER CALLED “CITY”)
AND
PISMO BEACH POLICE OFFICERS ASSOCIATION
(HEREINAFTER CALLED “POA”)
WHEREAS, the City and POA have an existing Memorandum of Understanding from July 1, 2025, through June 30, 2028; and
WHEREAS, the City and POA negotiated in good faith and through newly learned information from CalPERS determined language within the Longevity Pay section of the MOU was not fully in compliance; and
WHEREAS, the City and POA mutually acknowledge that this Side Letter and the process for remedying the oversight shall be non-precedential.
NOW THEREFORE, City and POA hereby agree to modify the following section of the Memorandum of Understanding (MOU):
[the following paragraph to be added as amended]
ARTICLE 9. LONGEVITY
Effective the first full pay period in July 2025 or following ratification and approval of the City Council and POA membership (whichever is later), all sworn and non-sworn bargaining unit positions will receive longevity pay for consecutive years of service within the defined group with the City of Pismo Beach, as follows:
•Completion of five (5) years or more: 2.5%
•Completion of ten (10) years or more: additional 2.5% (5% total) •Additional years of service shall be credited as follows: Service credit for longevity pay may include prior sworn law enforcement service as defined under California Penal Code §830 or its equivalent in other jurisdictions, limited to municipal, state, or federal law enforcement agencies. Credit will be given at a rate of ½ years of service with the City of Pismo Beach for each one year of prior sworn service as defined above.
This Side Letter Agreement identifies those articles, sections, and subsections of the Memorandum of Understanding between the City and the POA that the parties have mutually agreed to revise. All other terms of the Memorandum of Understanding remain in full force and effect.
Attachment 2
Council Agenda 8-5-2025 9.E-5
CITY OF PISMO BEACH Representative PISMO BEACH POLICE OFFICERS ASSOCIATION Representative
_______________________________ __________________________________ Date: ___________ Date: ___________
Attachment 2
Council Agenda 8-5-2025 9.E-6
SIDE LETTER AGREEMENT BETWEEN
THE CITY OF PISMO BEACH,
CALIFORNIA
(HEREINAFTER CALLED “CITY”)
AND
FULL-TIME NON-REPRESENTED EMPLOYEES
(HEREINAFTER CALLED “FT NON-REP”)
WHEREAS, the City and FT Non-Rep have an existing Resolution from July 1, 2025, through June 30, 2028; and
WHEREAS, the City, through newly learned information from CalPERS determined language within the Longevity Pay section of the Resolution was not fully in compliance; and WHEREAS, the City mutually acknowledge that this Side Letter and the process for remedying the oversight shall be non-precedential.
NOW THEREFORE, City hereby agrees to modify the following section of the Full-Time Non-Represented Resolution (FT Non-Rep):
[the following paragraph to be added as amended]
SECTION 3. LONGEVITY
Effective the first full pay period in July 2025 or following ratification and approval of the City Council, non-represented employees shall receive longevity pay for consecutive years of service within the defined group with the City of Pismo Beach, as follows:
•Completion of five (5) years or more: 2.5%
•Completion of ten (10) years or more: additional 2.5% (5% total) •Additional years of service shall be credited as follows: Service credit for longevity pay may include prior sworn law enforcement service as defined under California Penal Code §830 or its equivalent in other jurisdictions, limited to municipal, state, or federal law enforcement agencies. Credit will be given at a rate of ½ years of service with the City of Pismo Beach for each one year of prior sworn service as defined above.
This Side Letter Agreement identifies those articles, sections, and subsections of the Memorandum of Understanding between the City and the POA that the parties have mutually agreed to revise. All other terms of the Memorandum of Understanding remain in full force and effect.
CITY OF PISMO BEACH Representative PISMO BEACH POLICE OFFICERS ASSOCIATION Representative
Attachment 3
Council Agenda 8-5-2025 9.E-7
_______________________________ __________________________________ Date: ___________ Date: ___________
Attachment 3
Council Agenda 8-5-2025 9.E-8