...Title
Adopt a Resolution to Approve Side Letters of Agreement with the San Leandro Police Officers’ Association and the San Leandro Police Management Association to Amend the Holiday Pay Language to Comply with CalPERS Regulations
...Staffreport
COUNCIL PRIORITIES
• Infrastructure
SUMMARY & RECOMMENDATION
Staff recommend that the City Council adopt a resolution approving proposed Side Letters of Agreement between the City of San Leandro and the San Leandro Police Officers’ Association (SLPOA) and the San Leandro Police Management Association (SLPMA) relating to holiday pay language to comply with CalPERS regulations.
BACKGROUND
The City of San Leandro contracts with the California Public Employees’ Retirement System (CalPERS) to provide a defined benefit pension for employees. In accordance with the terms and conditions memorialized in the Memoranda of Understanding between the City of San Leandro, SLPOA, and SLPMA, employees receive a 7% holiday pay premium because they work in positions that require scheduled staffing without regard to holidays. The City, SLPOA, and SLPMA agree that it is the parties’ intent that Holiday Pay is a pensionable and reportable item of special compensation to CalPERS.
Analysis
Following a recent compliance review, CalPERS determined that Holiday Pay reported by the City did not meet the criteria as defined by Government Code Section 20636 and California Code of Regulations (CCR) Section 571. Specifically, the City’s written labor agreements do not contain a list of approved holidays and conditions of payment. The CalPERS Compensation Compliance & Audit Resolution Unit, Employer Account Management Division advised the City that MOUs must contain precise conditions of payment that reflect the basis for the holiday pay percentage and must contain the approved holidays recognized by the City.
To comply with CalPERS’ regulations, the City and the SLPOA met and conferred, and agreed to amend language in the two most recent Memoranda of Understanding between the City of San Leandro and SLPOA. The City also met and conferred and agreed to amend the language in the two most recent Memoranda of Understanding between the City of San Leandro and SLPMA. The City submitted the draft Side Letters of Agreement - amending previous Memoranda of Understanding - to CalPERS for review and has received confirmation that the revised language for holiday pay in the proposed Side Letters, qualify as compliant and reportable Special Compensation under CCR 571 (Classic) and CCR 571.1 (PEPRA).
Previous Actions
• On January 20, 2020, the City Council approved the MOU between the City and SLPOA for the period January 1, 2020 through December 31, 2022 by Resolution No. 2020-004
• On December 5, 2022 the City Council approved the subsequent MOU between the City and SLPOA for the period January 1, 2023 through June 30, 2028 by Resolution No. 2022-210
• On February 18, 2020 the City Council approved the MOU between the City and SLPMA for the period January 1, 2020 through December 31, 2022 by Resolution No. 2020-034
• On December 19, 2022 the City Council approved the subsequent MOU between the City and SLPMA for the period January 1, 2023 through June 30, 2028 by Resolution No. 2022-215
Financial Impacts
There are no financial impacts associated with this action.
ATTACHMENTS
A. Resolution Amending the SLPOA and SLPMA MOU
B. Side letter of Agreement to Amend the SLPOA MOU
C. Side letter of Agreement to Amend the SLPMA MOU
PREPARED BY: Tiffany Johnston, Human Resources Manager, Human Resources Department