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Agenda Item No: 1.e
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: September 22, 2026
Submitted by: Alice Burnett
From: Human Resources
Subject:
RESOLUTION ADOPTING A SIDE LETTER AGREEMENT AMENDING THE
MEMORANDUM OF UNDERSTANDING OF THE CITY OF PLACENTIA POLICE
MANAGEMENT ASSOCIATION TO UPDATE THE UNIFORM ALLOWANCE REPORTING Financial Impact:
There is no budget impact to adopt the attached resolution.
Summary:
The City and the Placentia Police Management Association are parties to a Memorandum of Understanding (MOU) that expires June 30, 2027. The City has historically provided uniforms to regular, full-time uniformed members of the Association and has reported a uniform allowance to CaIPERS for eligible "classic" members.
As part of a CaIPERS review, it was identified that prior MOU language did not expressly document the City's longstanding CaIPERS reporting practice for the uniform allowance. The City and PPMA have agreed to a Side Letter to formally memorialize that practice and establish the applicable reporting language in the MOU.
Recommended Action:
It is recommended that the City Council:
Adopt Resolution No. R-2026-60, A Resolution of the City Council of the City of Placentia, California, amending Resolution No. R-2026-04 adopting a side letter agreement amending the memorandum of understanding of the City of Placentia Police Management Association to update the uniform allowance reporting.
Strategic Plan Statement:
There is no specific Strategic Goal associated with this action.
Discussion:
The Side Letter confirms that, effective July 1, 2008, the City has reported a uniform allowance to CaIPERS for eligible "classic" members in an amount not to exceed $300 per calendar year per employee. The Side Letter also clarifies that the allowance covers the purchase, rental, and/or maintenance of required uniforms and must be prorated and reported in the pay period in which it is earned. Lump -sum reporting is not permitted. 1 The Side Letter further confirms that the uniform allowance is not pensionable compensation for "new members" hired on or after January 1, 2013, consistent with the Public Employees' Pension Reform Act of 2013 (PEPRA).
CaIPERS has reviewed and approved the proposed reporting language. The Side Letter does not create a new benefit, increase compensation, or change the amount of the uniform allowance. Rather, it documents the City's longstanding practice and ensures the MOU accurately reflects applicable CaIPERS reporting requirements.
The PPMA has approved the Side Letter. Staff recommends that the City Council adopt the Resolution approving the Side Letter Agreement and authorize its execution.
Financial Summary:
Adopting the Side Letter will help ensure the City's written labor agreement accurately reflects applicable CaIPERS reporting requirements. Failure to properly document and report pensionable compensation could result in additional review by CaIPERS when an employee retires, which may affect the calculation of retirement compensation and could delay the determination of retirement benefits while CaIPERS evaluates the employee's compensation history.
Attachments
CC RES R-2026-60 - PPMA Side Letter for Uniform Allowance reporting PPMA - Side Letter for Uniform Allowance Reporting 07.01.2008 FINAL - signed.pdf 2 RESOLUTION NO. R-2026-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, AMENDING RESOLUTION
NO. R-2026-04 ADOPTING A SIDE LETTER AGREEMENT
AMENDING THE MEMORANDUM OF UNDERSTANDING
OF THE CITY OF PLACENTIA POLICE MANAGEMENT
ASSOCIATION TO UPDATE THE UNIFORM ALLOWANCE
REPORTING
A. Recitals.
WHEREAS, the City of Placentia ("City") and the Placentia Police Management Association ("PPMA") are parties to Memorandum of Understanding No. 25-27 ("MOU"); and
WHEREAS, the City Council adopted Resolution No. R-2026-04 approving the MOU; and
WHEREAS, the City and PPMA have agreed to a Side Letter Agreement to amend the MOU to clarify and memorialize the City's historical reporting of the uniform allowance to the California Public Employees' Retirement System ("CaIPERS"); and WHEREAS, the proposed language of the Side Letter Agreement has been reviewed and approved by CaIPERS and has been approved by the PPMA.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. Resolution No. R-2026-04 and Memorandum of Understanding No. 25-27 are hereby amended to incorporate the Side Letter Agreement Between the City of Placentia and the Placentia Police Management Association Regarding CaIPERS Reporting of Uniform Allowance, attached hereto as Exhibit A and incorporated herein by reference.
Section 2. The Side Letter Agreement shall amend and become part of Memorandum of Understanding No. 25-27. All other provisions of the MOU shall remain unchanged and in full force and effect.
Section 3. The Director of Human Resources is authorized to execute the Side Letter Agreement on behalf of the City and take such administrative actions as are necessary to implement the Agreement.
Section 4. This Resolution shall take effect upon adoption.
Resolution No. R-2026-60
3 APPROVED and ADOPTED this 22nd day of September 2026.
Chad P. Wanke, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 22nd day of September 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution No. R-2026-60
4 Side Letter Between The
City Of Placentia And The Recognized Employee Organization Placentia Police Management Association Regarding CaIPERS Reporting of Uniform Allowance This Side Letter of Agreement (Agreement) between the City of Placentia (City) and the Placentia Police Management Association (Association) (collectively "Parties") is entered into with respect to the following:
WHEREAS, the Parties are currently parties to a Memorandum of Understanding (MOU) with a term that expires on June 30, 2027;
WHEREAS, the Parties recognize that the City has historically provided uniforms to regular, full-time uniformed members of the Association and has reported a uniform allowance to the California Public Employees' Retirement System ("CaIPERS") for eligible "classic" members;
WHEREAS, although the parties have consistently administered and treated the uniform allowance as reportable compensation to CaIPERS, the Memorandum of Understanding in effect for portions of prior years did not expressly memorialize the reporting language;
WHEREAS, the Parties acknowledge that the omission of express CaIPERS reporting language from certain Memoranda of Understanding was inadvertent and was not intended to alter, discontinue, or eliminate the City's longstanding payroll administration or CaIPERS reporting practice;
AGREEMENT
1. The parties acknowledge and agree that, effective July 1, 2008, the City has reported, and the Association has accepted the reporting of, a uniform allowance for eligible "classic" members to CaIPERS in an amount not to exceed Three Hundred Dollars ($300.00) per calendar year per employee.
2. The parties further acknowledge that this Side Letter is intended solely to memorialize the parties' historical agreement and consistent past practice regarding CaIPERS reporting of the uniform allowance beginning July 1, 2008.
This Side Letter does not create a new benefit, increase compensation, or modify the amount of the uniform allowance previously provided and reported.
3. The Parties acknowledge that the following language accurately reflects the compensation practice and CaIPERS reporting that has been consistently 5 administered by the City beginning July 1, 2008, and shall continue unless modified through collective bargaining:
"The City will purchase uniforms for all regular, full-time uniformed members of this Association. A uniform allowance, covering the purchase, rental, and/or maintenance of required uniforms, shall be reported to CaIPERS for `classic' members in the amount not to exceed $300 per calendar year per employee." The uniform allowance shall be prorated and reported in the pay period in which it is earned. Lump -sum reporting of the uniform allowance is not permitted.
Uniform allowance is not considered pension reportable compensation for 'new members' hired after January 1, 2013, pursuant to the Public Employee Pension Reform Act of 2013 (PEPRA)."
4. This Side Letter is entered into solely for the purpose of documenting the parties' mutual understanding and historical practice regarding CaIPERS reporting and shall be attached to the applicable Memorandum of Understanding.
For the City
Alice Burnett, Director of Human Resources
row/ M�tCewzie
For the Association Tom McKenzie (Aug 20 2026 11:47:56 PDT) Lt. Tom McKenzie, PPMA President
Date: 08/20/2026
08/20/2026
Date:
6 PPMA Side Letter for Uniform Allowance reporti
ng_07.01.2008_F INAL
Final Audit Report 2026-08-20
Created: 2026-08-20
By: Alice Burnett ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAA_015IsNaKrQgRrcKFKYQDHuSyS49piWX "PPMA Side Letter for Uniform Allowance reporting_07.01.2008_ FINAL" History
Document created by Alice Burnett ([email protected]) 2026-08-20 - 6:46:16 PM GMT
Document emailed to Alice Burnett ([email protected]) for signature 2026-08-20 - 6:46:20 PM GMT
Document emailed to Tom McKenzie ([email protected]) for signature 2026-08-20 - 6:46:20 PM GMT
Email viewed by Alice Burnett ([email protected])
2026-08-20 - 6:46:30 PM GMT
Email viewed by Tom McKenzie ([email protected])
2026-08-20 - 6:47:33 PM GMT
66 Document e -signed by Tom McKenzie ([email protected]) Signature Date: 2026-08-20 - 6:47:56 PM GMT - Time Source: server - Signature Appearance Selected: TYPE (Q Document e -signed by Alice Burnett ([email protected]) Signature Date: 2026-08-20 - 6:49:46 PM GMT - Time Source: server - Signature Appearance Selected: IMAGE Q Agreement completed.
2026-08-20 - 6:49:46 PM GMT
E3 Adobe Acrobat Sign
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