COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Graciela Reynoso, Chief Human Resources Officer
DATE: February 17, 2026
SUBJECT: Adoption of a Resolution Amending Resolution No. 2026‑ 01 on CalPERS Special Compensation and Fire Battalion Chief Holiday Pay
Description:
The City Council to consider 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. 2026-01, authorizing and approving a Wage and Benefits Package for Public Safety Managers to update special compensation items and align Fire Battalion Chief holiday pay with CalPERS requirements; and
2. Authorize the Mayor to execute the terms of the Resolution.
BACKGROUND:
The Public Safety Managers (PSM) Resolution requires an amendment to address special compensation issues recently identified by CalPERS. Item 26 of the PSM Resolution currently lists “Fire Department Administrative Battalion Chief/Training Battalion Chief – Premium Pay” as a single category of special compensation. CalPERS has determined that Administrative Battalion Chief Premium Pay —reported by the City as Fire Staff Premium —is not pensionable for Battalion Chiefs because they are not classified as rank‑ and‑ file employees.
To ensure compliance, Human Resources recommends revising Resolution Item 26 to remove Administrative Battalion Chief Premium Pay and retain only the Training Battalion Chief Premium Pay, which is reported appropriately as Training Premium and is considered pensionable.
Additionally, CalPERS conducted a compensation compliance review of Holiday Pay and determined that special compensation (i.e. bilingual pay, education incentive, etc.) should not be included in the calculation of Ho liday Pay, as it is not explicitly stated within the PSM resolution.
2 Currently, the Public Safety Managers Wage and Benefits Package Resolution states that Fire Battalion Chiefs will receive the “equivalent of 144 hours of compensation (at the fifty- six (56) hour base rate of pay).” It does not reference the fact that special compensation should be included in the calculation of Holiday Pay.
To address this issue and comply with CalPERS requirements, Human Resources proposes amending the Public Safety Managers Wage and Benefits Package Resolution to incorporate clear language listing the special compensation items that should be included in the calculation of Holiday Pay.
DISCUSSION:
A recommendation to adopt the revised resolution for the Public Safety Managers Wage and Benefits Package, which includes the removal of Administrative Battalion Chief Premium Pay, while retaining Training Battalion Chief Premium Pay. This will provide clarity and ensure that Training Battalion Chief Premium Pay is pensionable.
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 all applicable special compensation items. This will ensure Holiday Pay is calculated appropriately and per CalPERS requirements.
An amendment to Resolution 2026-01 (Attachment “A”) has been drafted to address the special compensation issue. The effective date for this change is January 1, 2022.
Resolution 2026 -01 (Attachment “A”) has been further amended to include the list of special compensa tion items that should be included in Holiday Pay calculations. The effective date for this change is July 1, 2022.
Alternative(s)
A decision by the City Council not to approve the revised Resolution to the Wage and Benefits Package Resolution will result in the exclusion of special compensation (training premium). Additionally, Holiday Pay will be calculated at an incorrect rate, negatively impacting the pensions of Fire Battalion Chiefs going forward.
Fiscal Considerations
No Fiscal Impac t with these ch anges. CalPERS employer contribution rates are developed through an annual actuarial valuation of each agency’s pension plan and these changes are only updating the past practices.
3 Impact on the Community
Approval of the amended Wage and Benefits Packag e 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
A. Resolution