Council approves successor memorandum of understanding with Public Safety Officers Association; raises pay components and updates benefits

The City Council authorized the city manager to execute a three‑year successor memorandum of understanding (MOU) with the Public Safety Officers Association (PSOA) on March 18, approving changes to the compensation survey methodology, certain pay elements, and benefits aimed at recruitment and retention.

Human Resources Director Tina Murphy told council negotiations began in mid‑2024, produced a tentative agreement in February 2025 and were ratified by PSOA membership on March 3. The successor MOU would run from January 1, 2025 through December 31, 2027, with an option to extend through 2028. Staff said PSOA ratified the agreement by an overwhelming majority (about 98% of voting members).

Key elements: staff described changes intended to align compensation with a PEPRA (Public Employees’ Pension Reform Act) workforce profile and with market comparators: the city will use a 12‑year PEPRA employee benchmark for the pay survey and will combine the public safety officer and lieutenant surveys (with a 20% lieutenant differential) rather than running separate, smaller surveys.

Compensation and benefits changes approved by the Council include: - Elimination of the 6% city‑paid employer‑paid member contribution (EPMC) for Classic CalPERS members and conversion to employee‑paid member contributions (classic members pay 9%): CalPERS‑reporting resolution adopted by council as part of the package (staff set the EPMC change to take effect July 1, 2025). - Increase in the city medical contribution from $515/month to $1,200/month; increase in cash‑in‑lieu payments (employees who waive city coverage) from a max of about $213/month to $400/month. - Expanded premium and incentive pays: bilingual pay increased to $200/month; canine premium pay set at the Sunnyvale minimum wage; post‑certification pay increased and converted to a flat amount; education incentive (bachelor’s 2.5%, master’s/JD 5%) converted to a flat amount July 2025 and increased July 2027; career/ longevity incentive added at years 12, 16 and 20. - Eligible employees may receive deferred compensation contributions up to $100 per pay period.

Costs: staff presented the fiscal impact as modest for the current fiscal year (about $263,000 across city funds), with first‑year cost estimated at about $2.4 million and a 20‑year projection of roughly $70.7 million (staff noted most implementation items phase in July 1, 2025 or later).

Council discussion praised the negotiation process and staff work; Vice Mayor Sall made the motion to approve and Councilmember Chang seconded. The resolution and MOU were approved 6‑0. Council asked staff to continue work on a staffing study for the Department of Public Safety (an RFP is planned for 2026) and to monitor budget impacts in coming months.