Fremont City Council Meeting: 03/03/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5657) DOC ID: 5657
Updated: 2/27/2026 5:20 AM by Dina Lewis Page 1
CITY OF FREMONT EMPLOYEE ASSOCIATION (CFEA) MOU – Authorize City Manager to Approve a Side Letter of Agreement Amending the Memorandum of Understanding with CEFA to Implement Targeted Market Equity Salary Adjustments
Contact Persons:
Name: Tina Gallegos
Title: Human Resources Director
Div/Dept: Human Resources
Phone: 510-494-4652
E-Mail: [email protected]
Executive Summary: This report requests that the City Council authorize the City Manager, or designee, to enter into a side letter of agreement with the City of Fremont Employee Association (CFEA) amending the current Memorandum of Understanding (MOU) between the two parties to provide for market equity adjustments to the salaries of certain classification. As part of the recently concluded labor negotiations, staff conducted a market-based compensation study of CFEA represented positions. The study identified several CFEA-represented classifications as being more than 5% below the labor market median.
The proposed market equity salary increases represent a key step in addressing hiring and retention challenges and ensuring City salaries remain fair and competitive within the surrounding labor market.
BACKGROUND: As part of the recently concluded negotiations for a full successor MOU, the City and CFEA agreed to continue discussions on a plan to address salaries for the following classifications that were identified in the City’s compensation study as being greater than 5% below market: Buyer, Economic Development Specialist, Fire Prevention Inspector, Police Records Supervisor, Senior Hazardous Materials Inspector, and Veterinary Technician .
In February 2026, the City completed an updated total compensation study that confirmed that the following classifications were more than 5% below the market median:
Classification Below-Market Position
Senior Hazardous Materials Inspector -18%
Economic Development Specialist -16%
Fire Prevention Inspector -16%
Veterinary Technician -13%
Police Records Supervisor -7%
Buyer -8%
In response to these findings, the City and CFEA met and conferred regarding potential market equity adjustments to address this matter.
Council Staff Report (ID # 5657) Meeting of March 3, 2026 Updated: 2/27/2026 5:20 AM by Dina Lewis Page 2
DISCUSSION/ANALYSIS: Through the meet and confer process, Human Resources staff and CFEA reached a tentative agreement on appropriate salary increases for these positions to bring them closer to the market median. Specifically, the parties agreed to enter into a side letter of agreement to amend Article 2, Section 1 of the CFEA MOU , effective the first full pay period following CFEA’s notice to the City of agreement with this side letter , to provide for:
A. 2% market equity salary increase for the classifications of Buyer and Police Records Supervisor; and
B. 3.0% market equity salary increase for the classifications of Economic Development Specialist, Fire Prevention Inspector, Senior Hazardous Materials Inspector, and Veterinary Technician.
FISCAL IMPACT: The total Fiscal Year 2025/26 financial impact of the proposed compensation increases is estimated to total $44,790.
ENVIRONMENTAL REVIEW: This action is not a project as defined by Pub. Res. Code Section 21065 and California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2), as an administrative, fiscal, personnel and policy action. The action is further exempt under CEQA Guidelines Section 15378(b)(4), as the creation of a government funding mechanism or other government fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION: Authorize the City Manager, or designee, to enter into a side letter of agreement with the City of Fremont Employee Association, amending the current Memorandum of Understanding between the parties to implement a market equity increase of 2% for the Buyer and Police Records Supervisor classifications, and a market equity increase of 3% for the Economic Development Specialist, Fire Prevention Inspector, Senior Hazardous Materials Inspector, and Veterinary Technician classifications.