REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City’s Salary Resolution and Schedule of Pay to Increase Salaries for Pay Plan Category M (Public Safety Managers Association) Effective July 6, 2025
Report
BACKGROUND
The 2022-2025 Memorandum of Understanding (MOU) with the Public Safety Managers Association (PSMA) provides that “Members in the bargaining group will receive the same percentage of salary increase or decrease as the Public Safety Officers Association Lieutenant position.” In addition, there should be a minimum differential of 15% between Public Safety Lieutenant with EMT, Intermediate POST, and bachelor’s degree premiums and the Public Safety Captain salary. (MOU Article 12.2 - Salary Adjustments). The PSMA represents Public Safety Captains and Public Safety Deputy Chiefs.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality workforce, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
The proposed increases are in accordance with the provisions of the MOU between the City and PSMA.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
Based on the current MOU with the Public Safety Officers’ Association (PSOA), a salary survey was conducted to determine salary adjustments for Public Safety Officers. Public Safety Lieutenants' salary rates were then set at a 20% differential above Public Safety Officers. The adjusted PSOA salary rates effective for July 6, 2025, were approved by the Council, in accordance with the contracted MOU, on June 17, 2025 (RTC 25-0643).
The PSMA MOU provides that PSMA classifications receive the same percent increase as Public Safety Lieutenants. The minimum salary differential calculation in the PSMA MOU is based on a salary rate calculation that included Public Safety Lieutenant base pay, plus EMT, Intermediate POST, and bachelor’s degree incentive pays. During the recent PSOA MOU negotiations, the EMT and Intermediate POST premiums were separated from base salary to comply with CalPERS reporting requirements. To ensure that the PSMA salary rate this year is consistent with the terms of the PSMA MOU, the City and PSMA executed a side letter on June 3, 2025, clarifying that the EMT and Intermediate POST premiums remain included in the calculation of Public Safety Captain’s minimum differential. (see Attachment 1).
Based on the PSOA salary rates and PSMA MOU requirements, it is recommended that the Schedule of Pay of the Salary Resolution be amended to reflect new pay rates for PSMA positions, increased from current rates as follows, effective July 6, 2025:
Public Safety Captain: 11.02%
Public Safety Deputy Chief: 11.02%
As these terms and conditions have been negotiated with PSMA and the City Council approved the MOU, this action is recommended to ensure compliance with the agreement.
FISCAL IMPACT
The FY 2025/26 Recommended Budget includes assumptions for increases in total compensation, which include salaries, benefits, and retirement. Salary adjustments also affect salary-related benefits, including retirement. The impact of the recommended increases exceeds the assumptions used in the FY 2025/26 Recommended Budget by an estimated $275,000 in FY 2025/26 and $7.9 million over the next twenty years. Due to the timing of this resolution in conjunction with the adoption of the FY 2025/26 Budget, salaries and benefits expenses will be tracked throughout FY 2025/26, and staff will return to Council at a later date if a budget modification is necessary. Additionally, the approved compensation philosophy for department directors includes a pay differential between the Director of Public Safety and the Deputy Chief of Public Safety to prevent salary compaction. Changes to the salary ranges for unclassified department directors (pay plan category F) are currently under review and will be presented to Council at a later date. These increases will be included in the operating budget as part of the FY 2026/27 operating budget development cycle.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Adopt a Resolution amending the City’s Salary Resolution and Schedule of Pay to increase Salaries for Pay Plan Category M (Public Safety Managers Association) effective July 6, 2025.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
_X_ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Michelle Ahlberg, Human Resources Manager
Reviewed by: Tina Murphy, Director of Human Resources
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. PSMA Side Letter
2. Resolution