September 15, 2026
Human Resources
DATE: September 15, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager
Sharrone Taylor, Director of Human Resources
Subject:
Side Letter with Richmond Police Officers Association
Regarding Special Compensation Practices
FINANCIAL IMPACT: There is no financial impact associated with this item.
The Side Letter clarifies existing CalPERS reporting
practices and does not result in any additional cost to the City.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The City Council is being asked to approve a Side Letter Agreement between the City of Richmond and the
Richmond Police Officers Association to clarify the
reporting of special compensation to the California Public Employees’ Retirement System (CalPERS).
RECOMMENDED ACTION:
ADOPT a resolution executing a Side Letter with the
Richmond Police Officers Association (RPOA) regarding
special compensation of the California Public Employees’ Retirement System – Human Resources Department
(Nickie Mastay/Sharrone Taylor 510-620-6602).
AGENDA
REPORT
September 15, 2026
DISCUSSION:
The City of Richmond (City) and the Richmond Police Officers Association (RPOA) have a Memorandum of Understanding (MOU) that sets forth the terms and conditions of employment for employees represented by the RPOA. The parties executed an MOU covering the term of July 1, 2022, through June 30, 2025. The 2022-2025 and previous MOUs have provided various items of special compensation that are reportable to California Public Employees’ Retirement System (CalPERS) for pension purposes.
The City has been reviewing the rules governing the reporting of special compensation to CalPERS to ensure compliance with such rules.
The City met and conferred in good faith with the RPOA regarding a Side Letter to ensure compliance with California Public Employees’ Retirement System (CalPERS) rules governing pensionable compensation. City Council approval is required to execute the Side Letter.
There is no fiscal impact because the Side Letter is clarifying existing practices regarding special compensation rate calculations.
NEXT STEPS:
City staff recommend adoption of the resolution to execute the Side Letter between the City and RPOA regarding CalPERS special compensation practices.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution and Side Letter