Title
Report regarding a resolution approving a side letter agreement amending Article 4 of the Memorandum of Understanding between the City and AFSCME Local 829 (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
Approve a resolution approving the Side Letter Agreement amending Article 4 of the Memorandum of Understanding between the City and AFSCME Local 829 regarding Communications Dispatcher educational incentive pay and compliance with the California Public Employee's Retirement Law (PERL).
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BACKGROUND/DISCUSSION
The City contracts with the California Public Employees' Retirement System (CalPERS) to provide for a pension program for all full-time regular employees, including employees represented by the American Federation of State, County and Municipal Employees (AFSCME) Local 829. CalPERS provides pension and health benefits for more than 1.5 million California public employees. Retirement benefits are calculated based on years of service, age at retirement, and final compensation. CalPERS conducts periodic audits to ensure compliance with reporting special compensation as defined by the California Public Employees' Retirement Law (PERL).
In December 2025 the City was notified that the education incentive component of the Communications Dispatcher compensation plan, as described in Article 4 the Memorandum of Understanding ("MOU") between the City and AFSCME, must be excluded from reportable compensation, as the City's policy did not comply with PERL regarding special compensation (C.C.R. ?571 and 571.1). The current MOU provides that Communications Dispatchers may receive an incentive of 2.5% of salary for an Associate degree or 60 accredited units.
Although the MOU provision regarding education incentive has been in place for over twenty years and has not previously been excluded by CalPERS, on October 16, 2025, CalPERS issued a circular letter clarifying requirements for education incentive pay and these requir...
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