RESOLUTION ADOPTING A SIDE LETTER AGREEMENT AMENDING THE MEMORANDUM OF UNDERSTANDING OF THE CITY OF PLACENTIA POLICE MANAGEMENT ASSOCIATION TO UPDATE THE UNIFORM ALLOWANCE REPORTING

There is no budget impact to adopt the attached resolution. 

The City and the Placentia Police Management Association are parties to a Memorandum of Understanding (MOU) that expires June 30, 2027. The City has historically provided uniforms to regular, full-time uniformed members of the Association and has reported a uniform allowance to CalPERS for eligible “classic” members.

As part of a CalPERS review, it was identified that prior MOU language did not expressly document the City’s longstanding CalPERS reporting practice for the uniform allowance. The City and PPMA have agreed to a Side Letter to formally memorialize that practice and establish the applicable reporting language in the MOU.

It is recommended that the City Council:

Adopt Resolution No. R-2026-60, A Resolution of the City Council of the City of Placentia, California, amending Resolution No. R-2026-04 adopting a side letter agreement amending the memorandum of understanding of the City of Placentia Police Management Association to update the uniform allowance reporting.

There is no specific Strategic Goal associated with this action. 

The Side Letter confirms that, effective July 1, 2008, the City has reported a uniform allowance to CalPERS for eligible “classic” members in an amount not to exceed $300 per calendar year per employee. The Side Letter also clarifies that the allowance covers the purchase, rental, and/or maintenance of required uniforms and must be prorated and reported in the pay period in which it is earned. Lump-sum reporting is not permitted.

The Side Letter further confirms that the uniform allowance is not pensionable compensation for “new members” hired on or after January 1, 2013, consistent with the Public Employees’ Pension Reform Act of 2013 (PEPRA).

CalPERS has reviewed and approved the proposed reporting language. The Side Letter does not create a new benefit, increase compensation, or change the amount of the uniform allowance. Rather, it documents the City's longstanding practice and ensures the MOU accurately reflects applicable CalPERS reporting requirements.

The PPMA has approved the Side Letter. Staff recommends that the City Council adopt the Resolution approving the Side Letter Agreement and authorize its execution.

Adopting the Side Letter will help ensure the City's written labor agreement accurately reflects applicable CalPERS reporting requirements. Failure to properly document and report pensionable compensation could result in additional review by CalPERS when an employee retires, which may affect the calculation of retirement compensation and could delay the determination of retirement benefits while CalPERS evaluates the employee's compensation history.