COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Graciela Reynoso, Chief Human Resources Officer
DATE: January 20, 2026
SUBJECT: Adoption of a Resolution Amending Resolution No. 2025 -209, to Comply with CalPERS Requirements for Holiday Pay as Pensionable Compensation and to Incorporate the Cesar Chavez Holiday for Fire Battalion Chiefs
Description:
The City Council to consider adopting a Resolution approving an amendment to the Wage and Benefits Package Resolution for the Public Safety Managers.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution amending Resolution No. 2025 -209, approving a Wage and Benefit Package Resolution for the Public Safety Managers to comply with CalPERS Requirements for Holiday Pay as pensionable compensation and to incorporate the Cesar Chavez Holiday for Fire Battalion Chiefs; and
2. Authorize the Mayor to execute the terms of the Resolution.
BACKGROUND:
CalPERS conducted a compensation compliance review of Holiday Pay and determined that Holiday Pay for Fire Battalion Chiefs does not meet the requirements under the California Public Employees’ Retirement Law (PERL) to qualify as pensionable compensation. In the communication regarding this compensation item, CalPERS specifically cited California Code of Regulations (CCR) section 571(b)(1)(F), which states that provisions for special compensation must not reference another document in lieu of disclosing the item.
Currently, the Public Safety Managers Wage and Benefits Package Resolution defines Holiday Pay for Fire Battalion Chiefs by referencing Municipal Code Section 2-20.20 and CAM 78-2. As a result of this reference to a document other than the Wage and Benefits Package Resolution, Holiday Pay is currently not considered pensionable compensation.
To addre ss this issue and comply with California Code of Regulations (CCR) section 571(b)(1)(F), Human Resources proposes amending the Public Safety Managers’ Wage and Benefits Package Resolution to incorporate clear language listing the recognized 2 holidays and conditions of payment directly within the resolution, eliminating reliance on external documents.
The current Public Safety Managers Wage and Benefits Package Resolution states in part, “[t]he City will recognize holidays for Fire Battalion Chiefs commensurate with other fire sworn personnel…” Recently, the Santa Maria City Fire Fighter’s Union Local 2020 negotiated for the addition of Cesar Chavez Day for Shift personnel. To ensure compliance, Human Resources proposes amending the Public Safety Managers Wa ge and Benefits Package Resolution to incorporate Cesar Chavez Day for Fire Battalion Chiefs.
DISCUSSION:
A recommendation to adopt the revised Resolution for the Public Safety Managers Wage and Benefits Package, which incorporates clear language listing the recognized holidays and conditions of payment directly within the Resolution and eliminates reliance on external documents. This will allow Holiday Pay to be considered pensionable compensation.
To ensure compliance with the current Public Safety Managers Wage and Benefits Package Resolution governing Fire Battalion Chief Holiday Pay, it is necessary to include the Cesar Chavez Holiday as a recognized holiday to maintain parity with other fire sworn shift personnel.
A resolution amending Resolution 2025 -209 (Attachment “A”) has been drafted to address the compensation compliance issue. The effective date for this change is July 1, 2022.
Resolution No. 2025 -209 (Attachment “A”) has been further amended to include t he Cesar Chavez Holiday as a recognized holiday for Fire Battalion Chiefs. The effective date for this change is March 31, 2026.
Alternative(s)
A decision by the City Council not to approve the revised Resolution to the Wage and Benefits Package Resolutio n will result in Holiday Pay not being pensionable compensation, negatively impacting the pensions of Fire Battalion Chiefs going forward.
Fiscal Considerations
The estimated cost for adding the Cesar Chavez Holiday is approximately $4,864.39 for calendar year 2026.
3 Impact on the Community
Approval of the amended Wage and Benefits Package Resolution for Public Safety Managers is crucial to maintaining positive employee -employer relations and retaining a well-staffed, qualified workforce, who in turn will continue to support the City’s operational needs.
ATTACHMENT(S)
A. Amended Resolution