Human Resources Department
www.santa-ana.org/HR
Item # 13
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 6, 2026
TOPIC: First Amendment to the Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association and Side Letter regarding Uniform Allowance
AGENDA TITLE
Approve a First Amendment to the Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association and a Side Letter Regarding Uniform Allowance
RECOMMENDED ACTION
1. Authorize the City Manager to execute a First Amendment to the Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association for the period of January 1, 2024 through June 30, 2027, to change the final decision for a disciplinary appeal, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. A-2026-XXX).
2. Authorize the City Manager to execute a Side Letter Agreement between the City of Santa Ana and the Santa Ana Police Officers Association for Uniform Allowance to ensure reportable compensation compliance (Agreement No. A-2026-XXX).
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The City Council approved a Memorandum of Understanding (MOU) between the City of Santa Ana and the Santa Ana Police Officers Association (POA) on June 16, 2024. The City and POA now desire, after meeting and conferring, to modify Article 16.2 of the MOU to revise the disciplinary appeals procedure.
The current process includes advisory arbitration, followed by City Manager final decision on disciplinary appeals. The modification would provide binding arbitration as the final step in hearing disciplinary appeals. This streamlines the process by enforcing the arbitrators decision, and eliminates further determination by the City Manager. This revised process is consistent with Confidential Association of Santa Ana (CASA), Santa Ana Management Association (SAMA), and Santa Ana Police Management Association (PMA) MOUs.
First Amendment to the MOU between the City of Santa Ana and the Santa Ana Police Officers Association and Side Letter regarding Uniform Allowance October 6, 2026
In addition to the recommended amendment to the MOU, the City is requesting approval of a mutually agreed Side Letter regarding clarification of language associated with uniform allowance language already included in the MOU.
The City has received multiple letters from CalPERS questioning the reporting of Uniform Allowance for POA members. Letters from CalPERS noted that, “Uniform Allowance will not be included in future calculations because the applicable MOUs do not specify a time basis for employees to be paid.” Specifically, the MOU did not specify that the amounts listed for Uniform Allowance were monthly amounts and therefore the Uniform Allowance was not considered reportable compensation for multiple recently retired employees.
CalPERS requires its contracting agencies to report the value of uniforms as a form of special compensation pursuant to Government (Gov.) Code section 20636 and 20636.1, and section 571 the California Code of Regulations (CCR). Correcting the time basis for the reporting of Uniform Allowance is necessary to ensure compliance with reporting requirements. Inaccurate reporting of compensation can cause inaccurate calculation of retirement benefits that may result in under or overpayment for both members and employers. CalPERS allows corrections to be made retroactively up to five years via a side letter.
This Side Letter updates Article 13.11 and establishes that the uniform amounts are monthly and notes that they have been in effect since January 1, 2021, as this issue existed over multiple iterations of this MOU. After consulting with the Audit Compliance and Resolution Unit of CalPERS, the revised language included in the Side Letter would resolve any outstanding concerns for the reporting of Uniform Allowance, and ensure compliance with reportable compensation to CalPERS. The Side Letter does not increase the compensation of POA members, as the updated language simply clarifies and maintains the intention of the past and current MOUs.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with these actions.
FISCAL IMPACT
There is no additional fiscal impact associated with this action.
EXHIBITS
1. First Amendment to the Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association
2. Side Letter regarding Uniform Allowance
Submitted By: Lori Schnaider, Executive Director of Human Resources Approved By: Alvaro Nuñez, City Manager