DATE: December 15, 2025
TO:
Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Diane Pitman, Administrative Service Director
DEPARTMENT: Administrative Services
SUBJECT: AMENDING THE CITY/DISTRICT PAY PLAN FOR FISCAL YEAR 2025-2026, EFFECTIVE JANUARY 1, 2026
RECOMMENDATION
It is recommended that the City Council/Estero Municipal Improvement District Board of Directors (herein referred to as "City Council") adopt resolutions amending the City/District Pay Plan for Fiscal Year 2025-2026, effective January 1, 2026.
BACKGROUND/ANALYSIS
The City/District approves a Pay Plan at a regularly scheduled meeting as part of the budget adoption process and amends the Pay Plan if there are changes during the fiscal year. The following changes are recommended for the City Council's consideration and approval.
Effective January 1, 2026, the new minimum wage for The City of Foster City will be $17.85 per hour for organizations that employ 26 or more employees.
Currently, there are four hourly/Part-Time/Seasonal positions (Building Service Assistant, Clerical Assistant, Recreation Leader I, and Department Intern) with Step 1 salaries that are below the new minimum wage. The salaries for these classifications will be adjusted to bring them into compliance with the established minimum wage, effective January 1, 2026.
To meet CalPERS requirements under Government Code 20636 and CCR section 570.5, which requires public agencies to provide a publicly available pay schedule, staff is bringing this forward to ensure the City's pay schedule is updated with the newly approved pay rate. Staff requests approval of the resolutions to approve the new Pay Plan for Fiscal Year 2025-2026, which will be effective January 1, 2026. Upon approval, staff will publish the updated Pay Plan on the City's website for public access.
California Environmental Quality Act
CEQA General Rule Exemption
FISCAL IMPACT
There are no current employees impacted by this increase in the minimum wage, therefore there is no immediate fiscal impact. However, the increase could marginally impact the cost of future hires, depending on the step in the salary plan at which they are hired. This potential cost is de minimis and well within current budget capacity.
CITY COUNCIL VISION, MISSION AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – City/District Pay Plan for FY 2025-2026 Redlined Attachment 4 – City/District Pay Plan for FY 2025-2026 Final