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agenda-report FREMONT ASSOCIATION OF MANAGEMENT EMPLOYEES (FAME) MOU - Authorize City Manager to Approve a Side Letter of Agreement Amending the Memorandum of Understanding with FAME to Implement Targeted Market Equity Salary Adjustments

Fremont City Council
March 3, 2026

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agenda-report FREMONT ASSOCIATION OF MANAGEMENT EMPLOYEES (FAME) MOU - Authorize City Manager to Approve a Side Letter of Agreement Amending the Memorandum of Understanding with FAME to Implement Targeted Market Equity Salary Adjustments
Meeting
March 3, 2026
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Fremont City Council
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134 KB
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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 # 5656) DOC ID: 5656
Updated: 2/27/2026 5:06 AM by Dina Lewis Page 1

FREMONT ASSOCIATION OF MANAGEMENT EMPLOYEES (FAME) MOU - Authorize City Manager to Approve a Side Letter of Agreement Amending the Memorandum of Understanding with FAME 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 Fremont Association of Management Employees (FAME) amending the current Memorandum of Understanding (MOU) between the two parties to provide market equity salary increases for certain classifications. As part of the recently concluded labor negotiations, staff conducted a market-based compensation study of FAME represented positions. The study identified several FAME 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 FAME 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: Communications Manager, Deputy Fire Chief, Fire Marshal, Parks Planning and Design Manager, Senior Plan Check Professional, Plan Check/Permit Center Manager, Police Records Administrator, and Public Safety Communications Manager.

In February 2026, the City completed an updated total compensation study that confirmed that the following classifications were greater than 5% below the market median:

Classification Below-Market Position
Fire Marshal -13%
Police Records Administrator -12%
Senior Plan Check Professional -10% Permit Center Manager Deputy Fire Chief -9%
Communications Manager -8%
Public Safety Communications Manager -7%

In response to these findings, the City and FAME met and conferred regarding potential market equity adjustments to address this matter.

Council Staff Report (ID # 5656) Meeting of March 3, 2026 Updated: 2/27/2026 5:06 AM by Dina Lewis Page 2
DISCUSSION/ANALYSIS: Through the meet and confer process, Human Resources staff and FAME reached a tentative agreement on appropriate salary increases to these positions to bring them closer to the market median. Specifically, the parties agreed to enter into a side letter of agreement to amend Chapter 2, Article 1 of the FAME MOU, effective the first full pay period following FAME’s notice to the City of agreement with the side letter, to provide:

A. 2.0% market equity salary increase for the classifications of Public Safety Communications Manager, Communications Manager, and Deputy Fire Chief B. 3.0% market equity salary increase for the classifications of Police Records Administrator, Fire Marshal, Senior Plan Check Professional, and Permit Center Manager
FISCAL IMPACT: The total Fiscal Year 2025/26 financial impact of the proposed compensation increases is estimated to total $45,984.

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 Fremont Association of Management Employees, amending the current Memorandum of Understanding between the parties to implement a market equity salary increase of 2% for the Public Safety Communications Manager, Communications Manager, and Deputy Fire Chief classifications, and a market equity salary increase of 3% for the Police Records Administrator, Fire Marshal, Senior Plan Check Professional, and Permit Center Manager classifications.

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