REPORT TO COUNCIL
SUBJECT
Title
Approve a Memorandum of Understanding Between the City of Sunnyvale and the Sunnyvale Public Safety Managers’ Association (PSMA), and Adopt Resolutions (1) Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category M (Public Safety Captains and Public Safety Deputy Chiefs); and (2)
For Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Public Safety Managers’ Association
Report
BACKGROUND
A Tentative Agreement has been reached between the City of Sunnyvale (City) and the Sunnyvale Public Safety Managers Association (PSMA) on a Successor Memorandum of Understanding (MOU). PSMA represents seven Public Safety Captains and three Public Safety Deputy Chiefs. 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 PSMA will expire on December 31, 2025. Representatives from the City and PSMA began the meet-and-confer process in June 2025 and met six times to reach an agreement. The City was notified on October 30, 2025 that PSMA 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 negotiation cycle focused on aligning compensation for Public Safety Managers with the recent revisions to the Public Safety Officers Association MOU, ensuring internal equity and supporting recruitment and retention efforts. Changes will take effect as of January 4, 2026 unless otherwise specified. The significant provisions of the new PSMA 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) if the Public Safety Officers Association MOU is extended from 2027 to 2028.
Salary
Members of PSMA received the same percentage of salary increase or decrease as Public Safety Lieutenants with a bachelor’s degree, Emergency Medical Technician (EMT) premium, and pay for the Intermediate Peace Officer Standards and Training (POST) certification. This MOU proposes to revise the calculation of salary rates for Public Safety Captain and Deputy Chief of Public Safety to minimize compaction between Public Safety managers and their direct reports. Rather than applying the same percent increase from the survey results for Lieutenants to Captains, the Public Safety Captain salary rate will be 15% above the total monthly cash compensation of Public Safety Lieutenant. Total monthly cash compensation will be comprised of:
• Top step/top of the range on the salary table;
• Holiday-in-lieu pay;
• Emergency Medical Technician certification pay;
• Education Incentive for Bachelor’s degree;
• Highest Peace Officer Standards and Training certification pay;
• Highest Longevity/Career Incentive pay.
The Deputy Chief of Public Safety salary rate will be 12% above the Public Safety Captain total monthly cash compensation.
Education Incentive Premium
The education incentive premium will change from a separate salary range to a stand-alone flat amount paid each pay period. The rate for possessing a graduate degree is $325 per pay period for Captain and $375 for Deputy Chief. These rates will increase to $350 and $400, respectively, in July 2027.
Certification Pay - Emergency Medical Technician (EMT)
Effective the first full pay period in January 2026, employees will begin receiving 4% additional pay in recognition of their acquisition and maintenance of EMT certification to align with the premium PSOA members currently receive.
Certification Pay - Peace Officer Standards and Training (POST)
Effective the first full pay period in January 2026, Captains will begin receiving $900 per pay period, and Deputy Chiefs will begin receiving $1,000 per pay period for the acquisition and maintenance of a POST certification of Supervisor or above. These rates will increase to $925 and $1,050, respectively, in July 2027.
Management Incentive Pay
Management incentive pay will increase from 5% to 5.5% and will apply to all hours paid.
Longevity Pay
Effective the first full pay period in January 2026, Captains will begin receiving $550 per pay period, and Deputy Chiefs will begin receiving $625 per pay period in recognition of at least 5 years of service with the City of Sunnyvale. These rates will increase to $575 and $650, respectively, in July 2027.
Automobile Allowance and Vehicle Use
The monthly automobile allowance for employees without a take-home vehicle will increase from $310 to $460.
Medical Cash-in-lieu
Employees who waive City medical coverage will now receive a flat monthly $400 medical cash-in-lieu payment, replacing the previously tiered amount based on coverage waived. This change results in an increase of $186.58 per month.
Retirement
All Classic employees in PSMA will pay the full 9% member share of retirement contributions, and the City will cease paying or reporting 6% Employer-Paid Member Contributions (EPMC). Although there are no current PEPRA members of PSMA, this change will encourage PEPRA members in PSOA to promote into PSMA as they become eligible.
Peace Officers Research Association of California - Retiree Medical Trust
The City will administer employee payroll deductions to be sent to the PORAC Retiree Medical Trust. The trust will be funded by PSMA employee contributions and the City will have no financial obligation beyond administrative costs.
Holiday Leave and In-Lieu Pay
As of the first pay day in January 2026, Captains will receive $500 per pay period and Deputy Chiefs will receive $550 per pay period as Holiday-in-Lieu pay. These rates will increase to $525 and $575, respectively, in July 2027. This is recognition of their scheduled staffing regardless of holidays. As of January 1, 2026, 30 hours of floating holiday will be eliminated.
Management Duty Preference
A form has been developed for employees to document their duty preference for assignment rotations.
General Language Cleanup
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 PSMA are funded by the General Fund. The adopted 2025/26 Budget includes assumptions for total compensation but does not fully account for the impact of this successor MOU. As the majority of the changes in the successor MOU are not effective until January 4, 2026, the impact of the successor MOU for FY 2025/26 is estimated to be approximately $200,000. The successor MOU increases General Fund costs by an estimated $336,000 in FY 2026/27 and $7.0 million over 20 years, compared with the PSMA 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 Public Safety Managers’ Association; and Adopt Resolutions (1) Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category M (Public Safety Captains and Public Safety Deputy Chiefs); and (2) For Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Public Safety Managers’ Association.
2. Do not authorize the City Manager to execute the Memorandum of Understanding between the City of Sunnyvale and the Public Safety Managers’ Association, and do not adopt the related resolutions.
3. Provide other direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to execute the Memorandum of Understanding between the City of Sunnyvale and the Public Safety Managers’ Association; and Adopt Resolutions (1) Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category M (Public Safety Captains and Public Safety Deputy Chiefs); and (2) For Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees' Retirement System for Employees of the Public Safety Managers’ Association.
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, Human Resources
Reviewed by: Matt Paulin, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Memorandum of Understanding between the City of Sunnyvale and the Public Safety Managers’ Association, 2026-2028 - redlined version
2. Memorandum of Understanding between the City of Sunnyvale and the Public Safety Managers’ Association, 2026-2028 - final version
3. Resolution Amending the City’s Salary Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase Salaries for Pay Plan Category M (Public Safety Captains and Public Safety Deputy Chiefs)
4. Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees’ Retirement System for Employees of the Public Safety Managers’ Association