Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: READOPTION OF THE FISCAL YEAR 2026-27 SALARY
SCHEDULE AND APPROVAL OF A SIDE LETTER
AGREEMENT WITH THE COTATI EMPLOYEES’
ASSOCIATION
Date: July 28, 2026
Written by: Angela Courter, Director of Administrative Services Recommendation
It is recommended the City council adopt resolutions to; (1) Readopt the City's Salary Schedule for fiscal year 2026/27 to correct a typographical error identified in the salary rate for the Police Lieutenant position; and (2) Approve the attached Side Letter Agreement between the City of Cotati and the Cotati Employees Association (CEA) amending Section 9.01(A) of the 2026– 2031 Memorandum of Understanding regarding retirement benefits for Classic Members – Tier
1. Background
At its June 23, 2026, meeting, the City Council adopted the City's Salary Schedule in accordance with California Code of Regulations, Title 2, Section 570.5, and other applicable requirements.
Following adoption, staff identified a typographical error in the salary rate listed for the Police Lieutenant position on the adopted Salary Schedule. The error was limited to the document presented to the City Council and does not reflect the salary rate that was approved through the City's budget process or implemented through payroll.
The affected position has been compensated at the correct salary rate, and the Fiscal Year 2026- 27 budget was prepared and adopted using the correct amount. Readopting the Salary Schedule will ensure the publicly adopted document accurately reflects the approved salary rate.
In addition, staff conducted a review of updated CalPERS contribution rate as compared to City MOU’s and identified that historical retirement contribution language previously adopted for the Cotati Employees Association (CEA) to reduce the employee portion of contributions by 2% in lieu of establishing City matching for the 457(b) deferred compensation plan, was not incorporated into subsequent versions of the MOU. Although the provisions have continued to be administered correctly since their adoption, the corresponding language was inadvertently omitted as successor MOUs were prepared.
The attached Side Letter Agreement incorporates the previously agreed-upon retirement contribution language into the current MOU to ensure the agreement accurately reflects the longstanding practices of the parties and provides a complete and transparent record of the applicable retirement provisions.
Analysis/Discussion
The proposed readoption of the Fiscal Year 2026-27 Salary Schedule is an administrative action to correct a typographical error in the salary rate listed for the Police Lieutenant position. The correction does not change any salary approved by the City Council through the budget process, nor does it affect employee compensation, which has been administered using the correct salary rate since the beginning of the fiscal year. Readopting the Salary Schedule ensures the City's publicly adopted salary schedule accurately reflects the approved compensation and remains compliant with applicable California regulations.
The proposed Side Letter Agreement is also administrative in nature. While the omitted language was not carried forward into the written agreement, the retirement contribution calculations and payroll deductions have continued to be administered in accordance with the historical agreement and the parties' long-standing practice.
Approval of the Side Letter will incorporate the previously adopted provisions into the current MOU, improving consistency between the City's labor agreements and the way they have historically been administered. The Side Letter does not establish new retirement benefits, modify existing contribution obligations, or result in any additional fiscal impact. Rather, it updates the written agreement to accurately reflect provisions that have been in effect for more than a decade, enhancing transparency, consistency, and clarity for future administration of the MOU.
Together, these actions improve the accuracy of the City's governing personnel documents, ensure consistency between adopted agreements and their implementation, and support transparent and effective administration of employee compensation and benefits.
Financial Considerations
The correction to the Salary Schedule has no fiscal impact, as the position has been compensated at the correct salary rate and the Fiscal Year 2026-27 budget includes the correct amount.
Approval of the Side Letter Agreement also has no additional fiscal impact. The agreement clarifies the retirement provisions contained within the existing MOU and does not create any new or increased financial obligations beyond those previously negotiated and anticipated.
Environmental Issues
This action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment.