Fremont City Council Meeting: 09/16/25 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5541) DOC ID: 5541
Updated: 9/12/2025 9:52 PM by Alberto Quintanilla Page 1 CITY OF FREMONT EMPLOYEE ASSOCIATION MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the City of Fremont Employee Association (CFEA)
Contact Persons:
Name: Tina Gallegos Brian Stott
Title: Human Resources Director Assistant City Manager
Div/Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: In September 2025, the City of Fremont (City) reached a tentative agreement with the City of Fremont Employee Association (CFEA) for a successor Memorandum of Understanding. The bargaining unit is made up of 267 members. The proposed MOU contains the following changes from the prior agreement term: modest compensation increases and health-benefit allowance increases (inclusive of a parity clause), and language to develop a plan to address positions agreed to be more than 5% out of market. The remaining substantive provisions of the MOU are unchanged. The effective date of the successor MOU will be September 21, 2025 (the start of the first full pay period following notification of PETA ratification), through June 30, 2026.
BACKGROUND: The City’s current MOU with CFEA expired on June 30, 2025. The City’s negotiating team met and conferred with CFEA representatives regarding a successor agreement and signed a tentative agreement on September 12, 2025. The City received notice that CFEA members ratified the tentative agreement on September 12, 2025.
California Government Code Section 3505.1 requires the City Council to vote on the proposed successor MOU at a duly noticed public meeting. The effective date of the successor MOU will be September 21, 2025 (the start of the first full pay period following notification of CFEA ratification) and it will expire on June 30, 2026.
DISCUSSION/ANALYSIS: Significant Memorandum of Understanding Provision Changes:
1. Employee Compensation:
a) Effective the start of the first full pay period following CFEA ratification of the tentative agreement, CFEA members will receive a base wage increase of
1.3%.
2. Health Benefit Allowance:
a) Effective the first of the month following CFEA ratification of the tentative agreement, the unit’s health benefit allowance will be increased by $100 per month (from $2,700 per month to $2,800 per month).
b) Effective January 1, 2026, the unit’s health benefit allowance will be increased by an additional $100 per month (from $2,800 per month to $2,900 per month).
Council Staff Report (ID # 5541) Meeting of September 16, 2025 Updated: 9/12/2025 9:52 PM by Alberto Quintanilla Page 2
3. Parity or “Me Too”:
a) If during the term of this Memorandum of Understanding, the City grants a general, across-the-board wage increase to another bargaining unit greater than 1.3%, the City agrees to extend the equivalent general wage increase to all CFEA classifications listed in Appendix A. This provision does not apply to increases as a result of any market equity increases or increases based on internal relationships. This provision will sunset at 11:59pm on June 30, 2026.
b) If during the term of this Memorandum of Understanding, the City grants a larger Health Benefit Allowance increase to another bargaining unit, the same allowance increase shall be granted to CFEA classifications listed in Appendix A.
FISCAL IMPACT:
1. Compensation Increase:
a) Fiscal Year 2025/26 Anticipated Fiscal Impact: $407,699
2. Health Benefit Allowance
a) Fiscal Year 2025/26 Anticipated Fiscal Impact: $212,968
ENVIRONMENTAL REVIEW:
The proposed approval of a successor MOU is exempt from and not subject to review under the California Environmental Quality Act (CEQA) because, without limitation, it is not a “project” as defined in CEQA Guidelines Section 15378(b)(2) and/or 15378(b)(5), and it has no possibility of having a significant effect on the environment, as specified in CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
ATTACHMENTS:
• CFEA Resolution 2025 CAO Redlines
RECOMMENDATION: Adopt a resolution approving the tentative agreement with the City of Fremont Employees Association (CFEA) and authorizing the City Manager to execute a Memorandum of Understanding (MOU) for the period of September 21, 2025, through June 30, 2026, between the City of Fremont and(CFEA).