Agenda Item No: L.3
AGENDA REPORT
DATE: December 16, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-260 HR Terms and Conditions of the Benefits Summary for Series 100 Employees
Amending and Adopting the Terms and Conditions of the Benefits Summary for Series 100 Executive Management-Represented Classifications
Funding Source: $82,904; General Fund
Contact: Farbod Pirouzmand (707) 428-7397
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The city manager proposes to amend the existing terms and conditions and adopt a new Benefits Summary applicable to Series 100 Executive Management-represented classifications. This action is necessary to maintain internal equity, consis tent with the City’s established compensation philosophy and guidelines. The need for these amendments arises from the new terms established during successful labor negotiations with the unions for staff reporting to Series 100- represented classifications.
DISCUSSION
Recent s uccessful negotiations with various bargaining units ha ve inadvertently skewed the internal compensation alignment between supervisory and division head levels. To ensure adherence to the City's compensation philosophy, which provides essential guidelines for updating compensation and mitigating compaction, remedial adjustments are required to restore intended structural relationships and enhance the City’s ability to attract and retain highly qualified personnel.
Approval of the new agreement represents a fiscally responsible action, with a one-time cost of $129,386 upon implementation, and annual savings of $46,482 in the first year, for a net total cost of $82,904 in the first year. By the tenth year, the annual savings will be $37,101 per year.
The costs for such adjustments are made possible through significant concessions by executive management staff, specifically the forfeiture of a portion of the prior fi scal year’s salary adjustment, supplemented by a cost -neutral adjustme nt achieved through a reduction in personal leave hours. This approach maintains structural alignment and upholds the City’s compensation philosophy without a significant impact on the General Fund.
Amendments to the successor Benefits Summary are described in the table below:
Benefit
Summary of Change
Compensation –
Equity Adjustment
Provided a 3% equity adjustment to the maximum salary range, achievable due to the forfeited portion of the fiscal year 2024-2025 salary adjustment – this is not an automatic cost-of-living adjustment (COLA) for executives
Constructive Receipt Committed to adhere to the outcomes of the upcoming meet and confer process with bargaining units regarding leave cash -out practices and compliance with federal Internal Revenue Service (IRS) rules Deferred
Compensation
401(a)
Reduced employer contribution to 10% for employees promoted or hired into Series 100 represented classifications on/after January 1, 2026 Off-Salary
Schedule Pay
Issued a 3% one -time non -PERSable cash payment in alignment with FGMA
Personal Leave Reduced annual accrual by 22.42 hours, adding the equivalent value of
1.08% to salary as a base wage adjustment; e stablished a maximum accrual limit where none existed previously
Sick Leave Established a maximum accrual limit where none existed previously and process to address excess balances upon implementation ; eliminated payoff upon resignation or termination
The redlined Benefits Summary is attached to this report.
FINANCIAL IMPACT
The total projected net cost to the General Fund (Fund 101) is $ 82,904 in the first year, and savings of $37,101 by the tenth year.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The c ouncil may choose not to approve the new Benefits Summary for Series 100 Executive Management-represented classifications and direct staff to amend different terms than stated above.
COORDINATED WITH
City Manager’s Office and Finance Department
STAFF CONTACT
Farbod Pirouzmand, Assistant City Manager/Director of Human Resources (707) 428-7397
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A: Red-lined Series 100 Benefits Summary