REPORT TO COUNCIL
SUBJECT
Title
Approve a Memorandum of Understanding Between the City of Sunnyvale and the Communication Officers Association, and Adopt a Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Communication Officers Association
Report
BACKGROUND
A Tentative Agreement has been reached between the City of Sunnyvale (City) and the Communication Officers Association (COA) on a Successor Memorandum of Understanding (MOU). COA represents full-time non-management dispatcher employees. This report recommends approval of the MOU, which, if approved by the City Council, will be in effect from January 1, 2026, through December 31, 2028.
The current MOU between the City and COA expired on December 31, 2025. Representatives from the City and COA began the meet-and-confer process in September 2025 and met five times to reach an agreement. A Tentative Agreement was reached on December 1, 2025, and the City was notified on December 14, 2025 that COA membership ratified the Tentative Agreement.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, 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.
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
This round of negotiations with the Communication Officers Association (COA) focused on areas of mutual interest, including recruitment and retention, and pay elements in the salary survey that were not comparable to those of Sunnyvale’s comparator agencies. In addition, the composition of the COA membership has changed from a majority of Classic CalPERS members to a majority of Public Employees' Pension Reform Act (PEPRA) members since the last contract was negotiated. The significant provisions of the new COA MOU are as follows:
Term
January 1, 2026, through December 31, 2028. The agreement shall be extended for an additional year (through December 31, 2029) unless either party provides notice prior to the expiration of the agreement of their desire to open negotiations.
Salary Survey
Change the salary survey methodologies, effective with the next salary survey in January 2026. Major changes are:
• Salary survey for the Public Safety Dispatcher will be based on a PEPRA member.
• Survey items:
o Remove the CalPERS Employer-Paid Member Contribution (EPMC), which is currently paid for Classic CalPERS members. Replace with CalPERS member cost-sharing contributions toward the agency rate. This change is to align with the COA demographics; the majority of COA members are PEPRA members ineligible for EPMC by law.
o Include additional compensation items, including education incentive, POST certification, holiday-in-lieu, and the employer’s contribution to deferred compensation. These changes capture the most typical compensation items offered by the survey agencies.
• Increase the total compensation from 5% to 9.5% above the surveyed agencies’ average. This change is intended to enhance the City’s competitiveness in the current dispatcher job market, support recruitment and retention, and restore the percentage to pre-great recession levels.
• If, during the term of the contract or mutually agreed extension, an annual salary survey results in an increase of 6% or more, then the first time this occurs, 5% of that increase will be used to establish a sixth pay step for each COA salary grade. This approach is intended to support fiscal stability by limiting the full impact of the increase to employees who are already at the top step, encouraging retention through additional merit increase opportunities.
Certification Pay
New benefit - COA employees will begin receiving incentive pay for the acquisition and maintenance of a Public Safety Dispatcher Certificate awarded through the California Commission on Peace Officer Standards and Training (POST) with the following schedule and amount:
Effective January 2026:
|
|
Intermediate POST |
Advanced POST |
|
Dispatcher (exclude Lateral and in-Training) |
$100 per pay period |
$200 per pay period |
|
Senior Dispatcher |
$150 per pay period |
$250 per pay period |
Effective July 2027:
|
|
Intermediate POST |
Advanced POST |
|
Dispatcher (exclude Lateral and in-Training) |
$125 per pay period |
$225 per pay period |
|
Senior Dispatcher |
$175 per pay period |
$275 per pay period |
Education Incentive Program
Change the education incentive from 2.5% for a bachelor’s degree to the following.
|
|
Effective January 2026 |
Effective July 2027 |
|
Dispatcher |
$150 per pay period |
$155 per pay period |
|
Senior Dispatcher |
$175 per pay period |
$180 per pay period |
Bilingual Pay
Increase the bilingual pay for qualified employees from up to $85 per month (varies by proficiency level), to $200 per month for all proficiency levels, effective January 2026.
Shift Differential
New benefit - COA employees will begin receiving 5% differential pay for the hours worked between 6 p.m. to 6 a.m. the next day, effective January 2026.
Special Assignment Differential
New benefit - Scheduling Public Safety Dispatchers - The assigned COA employee will begin receiving 5% differential pay for the actual hours performing the scheduling responsibilities, effective January 2026.
Classification Study - A new article requiring the City to complete a classification study for a Senior Public Safety Dispatcher incumbent who is performing a broader scope of responsibilities than other employees in the same classification. The classification study shall be completed by March 1, 2026, with a targeted implementation date of April 1, 2026. The incumbent currently performing the wider range of duties will receive a 10% pay during this interim period. This premium will remain in place until the study, the meet-and-confer process, and the resulting classification changes are fully implemented.
Retirement
All CalPERS Classic members in COA will pay the full 8% (for Tier 1) or 7% (for Tier 2) member contribution effective February 15, 2026. The City will cease paying or reporting the 4% Employer-Paid Member Contributions (EPMC). The attached resolution is required by CalPERS to complete this change.
Deferred Compensation
New benefit - City will contribute $138.46 per pay period to the deferred compensation plan of COA employees, effective January 2026.
Peace Officers Research Association of California - Retiree Medical Trust (PORAC RMT)
New article stating that the City is amenable to COA joining the PORAC RMT or another retirement medical investment plan. The Trust shall be funded solely by employee contributions.
Health Contribution
Increase the City’s contribution toward the City’s health insurance cafeteria plan from $815 to $1,700 per month, effective January 2026.
Holiday Leave and In-Lieu Pay
The current MOU provides for holiday- and floating holiday-in-lieu pay for a total of 4.15 hours of pay per pay period.
Effective January 2026, floating holiday in-lieu pay will be eliminated. The holiday-in-lieu pay will be replaced with a flat rate according to the following schedule.
|
|
Effective January 2026 |
Effective July 2027 |
|
Dispatcher |
$315 per pay period |
$340 per pay period |
|
Senior Dispatcher |
$365 per pay period |
$390 per pay period |
General Language clean up
Remove historical date-specific language, organize like contract terms together, provide gender-neutral language, correct typos and grammatical issues, update with legislative changes, and clarify language.
FISCAL IMPACT
Employees represented by COA are funded by the General Fund. The FY 2025/26 Adopted Budget includes assumptions for total compensation but does not fully account for the impact of this successor MOU. The majority of the changes in the successor MOU are not effective until January 2026. The impact of the successor MOU for FY 2025/26 is estimated to be approximately $208,000, which can be absorbed within the current operating budget.
The successor MOU increases General Fund costs by an estimated $333,000 in FY 2026/27 and $8.0 million over 20 years, compared with the COA salary and benefit costs projected in the FY 2025/26 Adopted Budget and Resource Allocation Plan. These impacts will be included with the FY 2026/27 Recommended Budget.
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.
ALTERNATIVES
1. Authorize the City Manager to execute the Memorandum of Understanding between the City of Sunnyvale and the Communication Officers Association (Attachment 2 to the report), and adopt a Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Communication Officers Association (Attachment 3 to the report).
2. Do not authorize the City Manager to execute the Memorandum of Understanding between the City of Sunnyvale and the Communication Officers Association, and do not adopt the related resolution.
3. Provide other directions to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to execute the Memorandum of Understanding between the City of Sunnyvale and the Communication Officers Association (Attachment 2 to the report), and adopt a Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Communication Officers Association (Attachment 3 to the report).
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: Vienne Choi, Principal Human Resources Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager/Interim Director, Human Resources Department
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Memorandum of Understanding between the City of Sunnyvale and the Communication Officers Association, 2026-2028 - redlined version
2. Memorandum of Understanding between the City of Sunnyvale and the Communication Officers Association, 2026-2028 - final version
3. Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Communication Officers Association