Agenda packet, regular meeting — Fremont City Council, June 2, 2026

City Council Chambers
3300 Capitol Avenue
Fremont, CA

Fremont City Council

Raj Salwan, Mayor
Yajing Zhang, Vice Mayor
Teresa Keng, District 1
Desrie Campbell, District 2
Kathy Kimberlin, District 3
Yang Shao, District 4
Raymond Liu, District 6

City Staff

Karena Shackelford, City Manager
Rafael E. Alvarado, Jr., City Attorney
Christina Briggs, Assistant City Manager
Brian Stott, Assistant City Manager
Allen DeMers, Deputy City Manager

Kim Beranek, Community Services Director
Geneva Bosques, Communications and
Legislative Affairs Director
Arquimides Caldera, Human Services Director
Zoraida Diaz, Fire Chief
Tina Gallegos, Human Resources Director
Alberto Quintanilla, City Clerk
Kelly King, Maintenance Operations Director
Hans Larsen, Public Works Director
Donovan Lazaro, Economic Development Director
David Persselin, Finance Director
Joel Pullen, Community Development Director
Sanford Taylor, Information Technology Director
Floyd Mitchell, Chief of Police
Fremont City Council Agenda and
Report
June 02, 2026

General Order of Business

1. Preliminary
• Call to Order
• Salute to the Flag
• Roll Call
• Announcements-Mayor and/or City Manager
• Report Out of Closed Session (if applicable)

2. Consent Calendar

3. Ceremonial Items

4. Public Communications

5. Scheduled Items
• Public Hearings
• Appeals
• Reports from Commissions, Boards and
Committees

6. Other Business

7. Items Referred by Councilmembers
• Council Referrals
• Appointments to Boards, Commissions,
Committees
• Legislative Actions
• Report on Committee Assignments

8. Adjournment

Order of Discussion
Generally, the order of discussion after introduction of an item by the Mayor will include comments and
information by staff followed by City Council questions and inquiries. The applicant, or their authorized
representative, or interested citizens, may then speak
on the item; each speaker may only speak once to each
item. At the close of public discussion, the item will be considered by the City Council and action taken. Items
on the agenda may be moved from the order listed.

Consent Calendar
Items on the Consent Calendar are considered to be
routine by the City Council and will be enacted by one
motion and one vote. There will be no separate
discussion of these items unless a Councilmember or
citizen so requests, in which case the item will be
removed from the Consent Calendar and considered
separately. Additionally, other items without a “Request to Speak – Speaker Card” card in opposition may be
added to the consent calendar. The City Attorney will
read the title of ordinances to be adopted.

Agenda and Report - Fremont City Council Meeting - June 02, 2026

June 2, 2026 Fremont City Council Page 2
Important Notice Regarding the City Council Meeting.

This meeting is being conducted utilizing teleconferencing and electronic means Pursuant to Government Code Section 54953.4 (Assembly Bill 707), The live stream of the meeting may be viewed on the City of Fremont’s website at www.Fremont.gov/Channel27, which also provides a link to the live stream; or, on Comcast Channel 27. Please note, Channel 27 is only available to Comcast cable subscribers.

Submission of Public Comments: For those wishing to make public comments at the June 2, 2026 Council meeting, you may either: (1) submit your comments by email prior to the meeting, or (2) by Spoken Public Comment during the meeting.

If you experience technical problems with the telephonic meeting, please contact the City Clerk’s Office at (510)284-4060 or [email protected].

How to submit Public Communications by email prior to the meeting:

Send an email to [email protected] before 1:00 p.m. the day of the meeting. Please identify the agenda item number/letter, and meeting date in the subject line of your email or specify that it is not related to an agenda item. Emails will be compiled by agenda item number/letter, distributed to the City Council and staff, and published in the City's Agenda Center on www.fremont.gov. If you wish to share an attachment/exhibit/photo, include it as a PDF file in your email before the noted deadline. Electronic comments on agenda items for the City Council meeting may only be submitted by email. Comments via text and social media (Facebook, Twitter, etc.) will not be accepted.

How to provide Spoken Public Comment during the meeting:

1. Attend meeting in-person in the Council Chamber, fill out a “Request to Speak – Speaker Card” with the agenda item number & letter, and submit to the City Clerk.

2. By phone 833-430-0037 (toll free). Webinar ID: 878 3254 3665. Click *9 to raise your hand to speak.

3. By online https://us06web.zoom.us/j/87832543665
a. Use a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. Mute all other audio before speaking. Using multiple devices can cause audio feedback. b. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak. c. When the Mayor calls for the item on which you wish to speak, click on “raise hand.” Speakers will be notified shortly before they are called to speak.
d. When called, please limit your remarks to the time limit allotted.

June 2, 2026 Fremont City Council Page 3
The City Council Agendas may be accessed online:
https://www.fremont.gov/government/agenda-center
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act, or if you do not have access to email or the internet, please contact the City Clerk’s Office at (510) 284-4060 or [email protected] at least two working days prior to the meeting for assistance.

June 2, 2026 Fremont City Council Page 4
Agenda
Fremont City Council Regular Meeting
June 02, 2026
City Council Chambers, 3300 Capitol Avenue, Building A
7:00 PM

1. Preliminary
A. Call to Order
B. Salute the Flag
C. Roll Call
D. Announcements-Mayor and/or City Manager
E. Report Out of Closed Session (if applicable)

2. Consent Calendar
Items on the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Calendar and considered separately. Additionally, other items without a “Request to Address Council” card in opposition may be added to the consent calendar. The City Attorney will read the title of ordinances to be adopted.

A. Motion To: Waive Further Reading of Proposed Ordinances (This permits reading the title only in lieu of reciting the entire text.) B. Approval of Minutes - None.

C. Annual Approval of Investment Policy - Annual Approval of Investment Policy and Delegation of Authority to City
Treasurer to Manage Investments
Contact Persons:

Name: Lauren Chu David Persselin
Title: Management Analyst Finance Director
Dept: Finance Department Finance Department
Phone: (510) 494-4635 510-494-4631
E-Mail: [email protected] [email protected]

Recommendation: Adopt a resolution approving the City’s Investment Policy for FY 2026/27 and delegating the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the Finance Director/Treasurer for one year or until earlier revoked by the City Council.

June 2, 2026 Fremont City Council Page 5
D. Fremont Police Managers' Association MOU - Consideration of a Resolution Approving a Successor Memorandum of
Understanding with the Fremont Police Managers' Association (FPMA)
Contact Persons:

Name: Tina Gallegos Brian Stott
Title: Human Resources
Director
Assistant City Manager
Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]

Recommendation: Adopt a resolution approving the tentative agreement reached with the Fremont Police Managers’ Association (FPMA) for a successor MOU and authorizing the City Manager to execute an MOU for the period of July 1, 2026, through June 30, 2029; and direct staff to adjust appropriations in the FY 2026/27 adopted operating budget as necessary to implement the terms of the MOU.

E. Fremont Police Association MOU - Consideration of a
Resolution Approving a Successor Memorandum of
Understanding with the Fremont Police Association (FPA) Contact Persons:

Recommendation: Adopt a resolution approving the tentative agreement reached with the Fremont Police Association (FPA) for a successor MOU and authorize the City Manager to execute a MOU for the period of July 1, 2026, through June 30, 2029; and direct staff to adjust appropriations in the FY 2026/27 adopted operating budget as necessary to implement the terms of the MOU.

June 2, 2026 Fremont City Council Page 6

3. Ceremonial Items
A. Proclamation: National Gun Violence Awareness Day

4. Public Communications
A. Oral and Written Communications
INDUSTRIAL DEVELOPMENT AUTHORITY - None.

PUBLIC FINANCING AUTHORITY - None.

CONSIDERATION OF ITEMS REMOVED FROM CONSENT CALENDAR

5. Scheduled Items
A. FY 2026/27 Proposed Operating Budget - First Public Hearing (Published Notice) on FY 2026/27 Proposed Operating Budget Contact Persons:

Name: David Persselin
Title: Finance Director
Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]

Recommendation:

1. Hold a public hearing.

2. Provide direction to staff on issues pertaining to the FY 2026/27 Proposed Operating Budget.

B. First Public Hearing of City Charter Consideration - Conduct a First Public Hearing (Published Notice) to Consider the Charter Work Plan Recommendations by the Charter Advisory
Committee.

Contact Persons:

Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]

Recommendation:

1. Receive the staff report,

2. Conduct a first public hearing,

3. Provide direction to staff on the draft city charter, including whether the City Council approves the draft city charter for the November 2026 ballot.

June 2, 2026 Fremont City Council Page 7

6. Other Business - None.

7. Items Referred by Councilmembers
A. Councilmember Referrals - None.

B. Appointments to Boards, Commissions, Committees - None.

C. Legislative Actions - None.

D. Report on Committee Assignments

8. Adjournment
June 2, 2026 Fremont City Council Page 8

June 2, 2026 Fremont City Council Page 9

ACRONYMS

ABAG Association of Bay Area Governments HARB Historical Architectural Review Board ACE Altamont Commuter Express HBA Home Builders Association ACFCD Alameda County Flood Control District HCD Housing and Community ACTC Alameda County Transportation
Commission

HRC
Development (State)
Human Relations Commission
HCD Housing and Community
ACWD Alameda County Water District ICMA

JPA
International City/County Management
Association
Joint Powers Authority
ARB Art Review Board
BAAQMD

BART
Bay Area Air Quality Management
District
Bay Area Rapid Transit District
LLMD Lighting and Landscaping Maintenance
District
LOCC League of California Cities
BCDC Bay Conservation & Development
Commission
LOS
MET
Level of Service
Mobile Evaluation Team
BMPs Best Management Practices MOU Memorandum of Understanding BMR Below Market Rate MTC Metropolitan Transportation
CALPERS California Public Employees’ Retirement
System
MTC Metropolitan Transportation
Commission
CBC California Building Code NRSRO Nationally Recognized Statistical Rating Organization
CDD Community Development Department NEPA National Environmental Policy Act CC & R’s Covenants, Conditions & Restrictions NLC National League of Cities CDBG
CEQA
Community Development Block Grant
California Environmental Quality Act
NPDES National Pollutant Discharge Elimination
System
CERT Community Emergency Response Team NPO Neighborhood Preservation Ordinance CIP Capital Improvement Program PC Planning Commission
CNG Compressed Natural Gas PD Planned District
COF City of Fremont PDA Priority Development Area
COPPS Community Oriented Policing and Public
Safety
PUC
PVAW
Public Utilities Commission
Private Vehicle Accessway
CSAC California State Association of Counties PWC Public Works Contract CTC California Transportation Commission RFP Request for Proposals dB Decibel RFQ Request for Qualifications
DEIR Draft Environmental Impact Report RHNA Regional Housing Needs Allocation DU/AC Dwelling Units per Acre ROP Regional Occupational Program EBCE East Bay Community Energy RWQCB Regional Water Quality Control Board EBRPD East Bay Regional Park District SACNET Southern Alameda County Narcotics Enforcement Task Force
EDAC Economic Development Advisory
Commission (City)
STIP State Transportation Improvement
Program
EIR Environmental Impact Report (CEQA) TCRDF Tri-Cities Recycling and Disposal Facility EIS Environmental Impact Statement TOD Transit Oriented Development

EVAW
(NEPA)
Emergency Vehicle Accessway
TS/MRF Transfer Station/Materials Recovery
Facility
FAR Floor Area Ratio UBC See CBC
FEMA Federal Emergency Management Agency VMT Vehicle Miles Travelled FFD Fremont Fire Department VTA Santa Clara Valley Transportation FMC Fremont Municipal Code Authority
FPD Fremont Police Department WMA Waste Management Authority FRC Family Resource Center ZA Zoning Administrator
FUSD Fremont Unified School District ZTA Zoning Text Amendment GIS Geographic Information System
GPA General Plan Amendment

June 2, 2026 Fremont City Council Page 10

UPCOMING MEETING AND CHANNEL 27

BROADCAST SCHEDULE
Date Time Meeting Type Location
June 2, 2026 7:00 p.m. City Council Meeting Council Chambers June 9, 2026 7:00 p.m. City Council Meeting Council Chambers June 16, 2026 7:00 p.m. City Council Meeting Council Chambers June 23, 2026 No meetings
June 30, 2026 No meetings (5th
Tuesday)
July 7, 2026 7:00 p.m. City Council Meeting Council Chambers July 14, 2026 7:00 p.m. City Council Meeting Council Chambers July 21, 2026 7:00 p.m. City Council Meeting Council Chambers July 28, 2026 No meetings
August Recess – No City Council Meetings
September 1, 2026 7:00 p.m. City Council Meeting Council Chambers September 8, 2026 7:00 p.m. City Council Meeting Council Chambers September 15, 2026 7:00 p.m. City Council Meeting Council Chambers September 22, 2026 5:30 p.m. CC/FUSD Liaison
Committee Meeting District Hosts
September 29, 2026 No meetings (5th
Tuesday)
October 5, 2026 5:30 p.m. CC/FUSD
Joint Meeting Council Chambers
October 6, 2026 7:00 p.m. City Council Meeting Council Chambers October 13, 2026 7:00 p.m. City Council Meeting Council Chambers October 20, 2026 7:00 p.m. City Council Meeting Council Chambers

Fremont City Council Meeting: 06/02/26 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Plans, Policies and Studies

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5720) DOC ID: 5720
Updated: 5/28/2026 1:39 PM by Dina Lewis Page 1
Annual Approval of Investment Policy - Annual Approval of Investment Policy and Delegation of Authority to City Treasurer to Manage Investments Contact Persons:

Name: Lauren Chu David Persselin
Title: Management Analyst Finance Director
Div/Dept: Finance Department Finance Department
Phone: (510) 494-4635 510-494-4631
E-Mail: [email protected] [email protected]

Executive Summary: In accordance with California Government Code Section 53646(a)(2), the City Treasurer presents the City’s Annual Investment Policy for the City Council’s consideration and approval at a public meeting. Additionally, the City Council may elect to delegate its authority to invest and reinvest City funds to the City Treasurer for up to one year pursuant to Government Code Section 53607.

Staff recommends that the City Council adopt a resolution approving the City’s investment policy for FY 2026/27 and delegate the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the Finance Director/Treasurer for one year or until earlier revoked by the City Council.

Background: California Government Code Section 53601, et seq. allows the City Council to invest money in its treasury not required for its immediate needs. The investments must be made in accordance with the City’s Annual Investment Policy, approved by the City Council during a public meeting (Gov. Code Section 53646(a)(2)). The City Council may delegate its authority for conducting investment transactions to the City Treasurer annually, for up to one year (Gov. Code Section 53607). On May 6, 2025, the City Council approved the City’s current Investment Policy and delegated investment authority to the City Treasurer for FY 2025/26.

Discussion/Analysis:

City Investment Policy
Once adopted by Council, the Investment Policy sets portfolio management objectives and practices, specifies allowable investment instruments, states the criteria for purchasing those securities, prohibits certain types of security purchases, and fixes the maximum investment horizon (generally five

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Council Staff Report (ID # 5720) Meeting of June 2, 2026 Updated: 5/28/2026 1:39 PM by Dina Lewis Page 2
years). The Treasurer uses these guidelines to manage and safeguard the investment of all public funds held by the City, except for bond proceeds.

Bond proceeds are invested in accordance with financing documents approved by the City Council when bonds are first issued. These investment transactions are executed by the trustees of the respective bond issues under the direction of City staff.

On April 1, 2025, the City Council approved the appointment of PFM Asset Management LLC (“PFM”) to provide investment advisory services to the City. Although PFM actively manages the portion of the City’s cash portfolio not needed to meet near-term obligations, fiduciary responsibility for investments remains with the City. The Treasurer and Finance Department staff ensure that all investments are consistent with the Investment Policy approved by the Council and provide oversight with appropriate checks and balances over the investment process.

Proposed Revisions to Investment Policy
As part of its portfolio management services, PFM has reviewed the City’s proposed FY 2026/27 Investment Policy and has determined that it is in compliance with all applicable California Government Code statutes regulating the investment of public funds. However, PFM has suggested two revisions with which staff concurs.

Senate Bill 595, which took effect on January 1, 2026, changed Government Code Section 53601, the section that governs the investment of public funds, to increase the allowable maturity of commercial paper from 270 to 397 days. Also, Government Code Section 53601.6, which authorizes investment in U.S. government securities with zero or negative yields during periods of negative interest rates, was extended through January 1, 2031.

Delegation of Authority to the City Treasurer
Staff recommends that the City Council delegate its authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the Finance Director/Treasurer for one year or until earlier revoked by the City Council, in accordance with Government Code Section 53607.

Under the delegated authority, the City Treasurer will continue to make a monthly report of investment transactions to the City Council. Each monthly Cash and Investments Report (“Treasurer’s Report”) describes the portfolio’s

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Council Staff Report (ID # 5720) Meeting of June 2, 2026 Updated: 5/28/2026 1:39 PM by Dina Lewis Page 3
composition and recent performance and reports the month’s investment transactions. Within each Treasurer’s Report, the Treasurer certifies that all investments were made in compliance with the Investment Policy and that there are adequate funds to pay City obligations for at least six months.

Fiscal Impact: None.

Environmental Review: Action on this item represents a fiscal, organizational and administrative governmental activity that will not result in physical changes in the environment. Therefore, it is not a project subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.

ATTACHMENTS:
• Draft Resolution - 2026-27 Investment Policy

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Resolution 2026-XX Page 1 of 15
RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT APPROVING A STATEMENT OF INVESTMENT POLICY (FY 2026/27)

WHEREAS, pursuant to California Government Code section 53646, the Treasurer of the City of Fremont has proposed a Statement of Investment Policy (FY 2026/27) for consideration by the City Council, which is attached hereto as Exhibit “A” and incorporated herein by reference; and

WHEREAS, the City Council wishes to delegate the authority to invest all public funds held by the City to the City Treasurer for a period of one year effective July 1, 2026, as authorized by California Government Code Section 53607;

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Fremont, as follows:

SECTION 1. The Fremont City Council approves and adopts the City of Fremont Statement of Investment Policy for FY 2026/27.

SECTION 2. The authority to invest and reinvest all public funds held by the City of Fremont, and to sell or exchange the securities so purchased, in compliance with the terms of the approved Statement of Investment Policy (FY 2026/27) is hereby delegated to the City Treasurer for a period of one year effective July 1, 2026, or until earlier revoked by the City Council.

ADOPTED June 2, 2026, by the City Council of the City of Fremont by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________
Mayor

ATTEST: APPROVED AS TO FORM:

___________________________ ________________________________ City Clerk City Attorney

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 2 of 15 EXHIBIT A to RESOLUTION 2026-XX

CITY OF FREMONT
STATEMENT OF INVESTMENT POLICY (FY 2026/27)
Effective July 1, 2026

POLICY
It is the policy of the City of Fremont to invest public funds in a prudent manner which will provide the highest yield consistent with the maximum security and preservation of invested principal, while meeting the daily cash flow demands of the City, and conforming to all applicable federal, state and local statutes governing the investment of public funds.

SCOPE
This investment policy applies to all financial assets of the City and excludes retirement and deferred compensation funds. Financial assets are reported in the City’s Annual Comprehensive Financial Report and are accounted for in the following funds:
• General Fund
• Special Revenue Funds
• Capital Projects Funds
• Debt Service Funds
• Internal Service Funds
• Trust and Custodial Funds
• Any new fund created by the City Council unless specifically exempted The provisions of the related bond indentures or resolutions shall govern investments of bond proceeds. A glossary of terms is attached hereto as Attachment “1” and is incorporated herein by reference.

PRUDENCE
The City shall manage its temporarily idle cash investments under the “prudent investor” standard, as defined by California Government Code Section 53600.3, which shall be applied in the context of an overall portfolio. Investment officers shall manage the City’s funds with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 3 of 15

OBJECTIVES
The objectives for investing and managing public funds and the order of priority are as follows:
• Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions, as well as investing in high investment grade securities. • Liquidity: The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Liquidity refers to the ability to sell an investment at any given moment with a minimal chance of losing some portion of principal or interest.
• Yield: The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio.

DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from the California Government Code. Management responsibility for the investment program is hereby delegated to the Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer.

The Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this investment policy. The procedures should include references to safekeeping, Public Securities Association repurchase agreements, wire transfer agreements, collateral/depository agreements, banking services contracts, and other investment- related activities. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

The Treasurer can designate a staff person(s) to be responsible for investment transactions and to sign as a secondary signature on time deposits and other public fund accounts. Regardless of any other person so designated, the Treasurer is expressly authorized to so designate the City’s Treasury Analyst as having this capacity. The City may engage the support services of outside professionals in regard to its investment program, as long as it can be clearly demonstrated that these services produce a financial advantage and protection of the portfolio.

ETHICS AND CONFLICTS OF INTEREST
The Treasurer and all investment personnel shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. The Treasurer and all investment personnel shall disclose to the City Manager any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the City’s investment portfolio.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 4 of 15

AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS
The Treasurer will maintain a list of financial institutions that are authorized to provide investment capacity selected on the basis of their creditworthiness, financial strength (minimum capitalization of $10,000,000), experience (at least five years of operation), and references. In addition, a list will also be maintained of approved security broker/dealers, primary or regional, who are authorized to provide investment and financial advisory services in California. If the City retains an investment advisor, the investment advisor may use its own list of approved issuers and authorized broker/dealers to conduct transactions on behalf of the City provided that the list is made available to the City upon request. No public deposit shall be made except in a qualified public depository as established by state laws.

An annual audited financial statement is required to be submitted by each financial institution and broker/dealer. The registration status and standing of all brokers/dealers shall be verified with the National Association of Securities Dealers, the Securities and Exchange Commission or other applicable self-regulatory organizations.

Annually and before engaging in investment transactions with a broker/dealer, the firm shall sign a certification form attesting that the individual responsible for the City’s account with that firm has reviewed the investment policy and that the firm understands the policy and intends to present only those investment transactions appropriate under the policy.

AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by California Government Code Section 53601 to invest in the following types of securities:
• Bonds and notes issued by the City of Fremont and the Fremont Public Financing Authority, regardless of the term to maturity for such bonds and notes. This extension of the maximum five-year term specified in California Government Code Section 53601 applies only to such bonds and notes issued by the above entities constituting the City and its affiliated public agencies.
• United States Treasury bills, notes, bonds, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. • Registered state warrants or treasury notes or bonds issued by the State of California in the third highest rating category or better by a nationally recognized statistical rating organization (NRSRO). Purchases may not exceed 30% of surplus funds. • Registered treasury notes or bonds of any of the other 49 states in addition to California in the third highest rating category or better by a NRSRO. Purchases may not exceed 30% of surplus funds.
• Bonds, notes, warrants or other evidence of debt issued by a local agency within the State of California in the third highest rating category or better by a NRSRO. Purchases may not exceed 30% of surplus funds.
• Obligations issued by agencies or instrumentalities of the U.S. Government.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 5 of 15 • Bankers’ acceptances with a term not to exceed 180 days. Not more that 40% of surplus funds can be invested in bankers’ acceptances and no more than 30% of surplus funds can be invested in the bankers’ acceptances of any single commercial bank. The financial institutions must be rated in the highest short-term rating category by a NRSRO. • Prime commercial paper may not exceed 397 days and must carry the highest rating issued by Moody’s Investors Service or Standard & Poor’s Corporation. Commercial paper may not exceed 40% of total surplus funds. Eligible paper shall be issued by corporations that are organized and operating within the United States, having total assets in excess of $500,000,000, rated A-1, and if the issuer has issued long-term debt, it must be rated in the third highest rating category or better by a NRSRO.
• Negotiable certificates of deposit issued by federally or state chartered banks or associations, a state or federal credit union, or by a federally licensed or state licensed branch of a foreign bank.

Purchases may not exceed 30% of surplus funds and must be rated in the third highest rating category or better by a NRSRO.
• Repurchase agreements that comply with statutory requirements, are documented by a written agreement, are fully collateralized by delivery to an independent third party custodian or the counterparty’s bank’s trust department or safekeeping department, and are for a term of one year or less. The market value of the collateral shall be 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less frequently than monthly.

Repurchase agreements shall only be made with primary dealers of the Federal Reserve Bank of New York. Reverse repurchase agreements and securities lending transactions are not to be entered into unless specifically authorized by the City Council. • Medium term notes with a maximum maturity of five years, by corporations organized and operating in the United States or by depository institutions licensed by the United States, or any state operating within the United States, and rated in the third highest rating category or better by a NRSRO. No more than 30% of surplus funds can be invested in this type of security. • The Local Agency Investment Fund (LAIF) maintained by the State of California. • Shares of beneficial interest issued by diversified management companies investing solely in the securities and obligations authorized by this section categorized as money market mutual funds.

Such funds must carry the highest credit rating by a NRSRO. No more than 20% of surplus funds can be invested in such funds. The companies shall retain an investment adviser registered with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations as authorized by this section, and with assets under management in excess of $500,000,000. The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that these companies may charge.
• Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 of the California Government Code that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 6 of 15 investment adviser that meets all of the following criteria. The adviser is registered or exempt from registration with the Securities and Exchange Commission. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. The adviser has assets under management in excess of five hundred million dollars.
• Insured or collateralized time deposits or savings accounts secured in accordance with the provisions of Sections 53651 and 53652 of the California Government Code. If the collateral is government securities, 110% of market value to the face amount and accrued interest of the deposit is required. If secured by first mortgages and first deeds of trust, the market value must be 150% of the face amount and accrued interest of the deposit. The collateral must be held by a third party.
• Mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds. For securities eligible for investment not issued or guaranteed by the United States Treasury, federal agencies and government-sponsored enterprises, the following limitation apply: securities must be rated in a rating category of “AA” or its equivalent or better by a NRSRO; securities must have a maximum remaining maturity of five years or less; no more than 20% of surplus funds may be invested in these securities. • United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Securities in this category must be rated in the second highest rating category or better by a NRSRO. No more than 30% of surplus funds may be invested in these securities.

Required ratings will be deemed to be the rating on the date of purchase.

A five-year maximum remaining maturity is allowed unless an extension of maturity is granted by the City Council. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this Policy shall not have a forward settlement date exceeding 45 days from the time of investment.

Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Treasurer will perform a timely review and decide whether to sell or hold the investment.

Prohibited Investments. In accordance with Section 53651 of the California Government Code, the City shall not invest any funds in inverse floaters, range notes or interest-only strips that are derived from a pool of mortgages or in any security that could result in zero interest accrual if held to maturity, except as provided in the subsequent paragraph.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 7 of 15 Notwithstanding the prohibitions stated in the above paragraph, effective January 1, 2021, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates.

This paragraph shall remain in effect only until January 1, 2031, and as of that date is repealed. This limitation shall not apply to investments in shares of beneficial interest issued under the Investment Company Act of 1940 that are authorized investments under Section 53601 of the California Government Code.

Additionally, pursuant to City Council policy adopted October 9, 2018, the City shall not invest any funds in securities issued by firms whose general business activities are classified as “Energy - Oil, Gas & Coal” according to the Bloomberg Industry Classification System.

INVESTMENT POOLS/MUTUAL FUNDS
A thorough analysis of any pooled investments such as LAIF, money market funds, or local government investment pools held by the City shall be conducted by the City Treasurer on an annual basis. The analysis shall include a review of the pools investment p olicy, underlying securities, and an assessment of risk management procedures.

SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery versus payment (DVP) basis. All securities purchased or acquired shall be held by a third-party custodian having a custodial agreement with the City and shall be evidenced by a safekeeping receipt. The custodian must be a federal or state association, a trust company or a state or national bank who is a member of the Federal Reserve System.

DIVERSIFICATION
The City will diversify its investments by security type, except for securities issued by the U.S.

Government and its agencies, and by institution to reduce or eliminate risk of loss. The following guidelines shall apply:
• Maturities selected shall provide for stability and liquidity. • No more than 5% of surplus funds shall be invested in the securities of any issuer regardless of security type, excluding U.S. Treasuries, Federal Agencies, and pooled investments such as LAIF, money market funds, or local government investment pools.

REPORTING
The Treasurer shall submit to each member of the City Council a monthly report. The report shall contain a complete description of the portfolio, including the types of investments, issuers, maturity dates, par values and current market values. In the case of funds invested in the Local Agency Investment Fund (LAIF), funds invested by external investment managers, funds held by trustees or fiscal agents, and moneys administered by plan administrators of retirement or deferred compensation plans, current statements from those institutions will satisfy the reporting requirements. The report will also include a certification of the following:

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 8 of 15 • All investment activities since the last report have been made in full compliance with the investment policy.
• The City will meet its expenditure requirements for the next six months.

INTERNAL CONTROL
The Treasurer shall establish investment procedures that provide for adequate internal control. An annual process of independent review of the procedures will be part of the regular audit procedures performed by the City’s external auditor.

PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and the City’s cash flow needs. The basis to be used to determine whether market yields are being achieved shall be the funds most comparable to the portfolio and the U.S. Treasury note or bill with a maturity close to the average life of the portfolio.

ADOPTION
The investment policy shall be adopted annually by resolution of the City Council.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 9 of 15 Attachment “1”

CITY OF FREMONT

STATEMENT OF INVESTMENT POLICY

GLOSSARY

The following technical words are included in the policy because they are common treasury and investment terminology.

Accrued Interest: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

Agencies: Debt instruments issued by the U.S. government agencies, departments, government- sponsored corporations and related instrumentalities to finance their own programs. Some examples of these agencies are the Federal Farm Credit Bank and the Federal Home Loan Bank.

Asked: The price at which securities are offered. The offer price is the cost of the security to the buyer.

Bankers’ Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.

Basis Points: Refers to the yield on bonds. Each percentage point of yield in bonds equals 100 basis points (1/100% or 0.01%). If a bond yield changes from 7.25% to 7.39%, that is a rate change of 14 basis points.

Benchmark: A passive index used to compare the performance, relative to risk and return, of an investor’s portfolio.

Bid: The price offered by a buyer of securities. This is payment that the seller gets when a security is sold.

Broker: A broker brings a buyer and seller together for a commission.

Callable: Securities subject to payment of the principal amount and accrued interest prior to the stated maturity date, with or without premium.

Certificate of Deposit (CD): A time deposit with a specific maturity, evidenced by a certificate issued by commercial banks and savings institutions, that usually returns principal and interest to the lender at the end of the loan period. CDs differ in terms of collateralization and marketability, as follows:

Negotiable Certificates of Deposit – Generally, a short-term debt instrument that usually pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs mature within six months, while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 10 of 15 Non-Negotiable Certificates of Deposit – CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for these non-negotiable CDs, but includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, including principal and interest. Amounts deposited above this amount are required to be collateralized by the financial institution.

Collateral: Securities, evidences of deposit or other property which a borrower pledges to secure repayment of a loan or to secure deposits of public moneys.

Commercial Paper: An unsecured short-term promissory note issued by corporations, with maturities ranging from two to 397 days.

Corporate Notes and Bonds: Debt instruments, typically unsecured, issued by corporations, with original maturities in most cases greater than one year and less than 10 years.

Coupon: The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. Also, a certificate attached to a bond evidencing interest due on a payment date.

Credit Rating: Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. Standard & Poor’s and Fitch Ratings use the same system, starting with their highest rating, of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody’s Investors Service uses Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, and D. Each of the services uses pluses (+) and minuses (-), or numerical modifiers to indicate steps within each category. The top four letter categories are considered investment-grade ratings.

Credit Risk: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market’s perception of a corporation’s credit will cause the market value of a security to fall, even if default is not expected.

CUSIP Number: An identifying number developed by the Committee on Uniform Security Identification Procedures, under the auspices of the American Bankers Association, to provide a uniform method of identifying municipal, U.S. government, and corporate securities. The CUSIP number is a nine-character identifier unique to the issuer, the specific issue and the maturity, if applicable (the first six characters identifying the issuer, the next two identifying the security, and the last digit providing a check digit to validate the accuracy of the preceding CUSIP number).

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Debenture: A bond secured only by the general credit of the issuer.

Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 11 of 15 money for the securities. Delivery versus receipt is delivery of securities with an exchange of signed receipt for the securities.

Discount: The difference between the price of a security and its value at maturity, when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

Discount Securities: Non-interest bearing money market instruments that are issued below the face amount and redeemed at maturity at full face value, such as U.S. Treasury Bills.

Diversification: Dividing investment funds among a variety of securities offering independent returns, maturities and market risks.

External Investment Managers: Professional money managers who administer pooled investments on behalf of local governments and are paid on a fee for service basis. A local agency may delegate discretionary or non-discretionary authority. Discretionary authority allows the manager to make trades proactively in compliance with a set of investment criteria. With non-discretionary authority, the manager must obtain the local agency’s approval for investment transactions.

Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

Federal Funds Rate: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

Federal Home Loan Banks (FHLB): Government-sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLB is to liquefy the housing-related assets of its members who must purchase stock in their district Bank.

Federal National Mortgage Association (FNMA or Fannie Mae): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act of 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. FNMA is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed rate mortgages. FNMA’s securities are highly liquid and widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac): This agency was established in 1970 to help maintain the availability of mortgage credit for residential housing.

Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis.

The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market as a means of influencing the volume of bank credit and money.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 12 of 15 Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.

Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holders are protected by the full faith and credit of the U.S. government. GNMA securities are backed by the FHA, VA, or FMHA mortgages. The term “pass-throughs” is often used to describe GNMA securities.

Guaranteed Investment Agreement: A contract with a financial institution to guarantee a certain investment return on moneys invested under the agreement. It is usually provided by a highly rated financial company, in most instances an insurance company or a commercial bank. It is sometimes used as a convenient means of managing bond proceeds that are subject to yield restrictions or rebate. The return may be fixed or may float at a level related to the yield on the bonds (bond proceeds) or an index.

Liquidity: An asset that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable in size.

Liquidity Risk: The chance that a security, sold prior to maturity, will be sold at a loss of value. For a local agency, the liquidity risk of an individual investment may not be a critical as how the overall liquidity of the portfolio allows the agency to meet its cash needs.

Local Agency Investment Fund (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment.

Market Risk: The chance that the value of a security will decline as interest rates rise. In general, as interest rates fall, prices of fixed income securities rise. Similarly, as interest rates rise, prices fall.

Market risk also is referred to as systematic risk or risk that affects all securities within an asset class similarly.

Market Value: The price at which a security is trading and could presumably be purchased or sold at a particular point in time.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establishes each party’s rights in the transactions. It specifies the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Medium-Term Note: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 13 of 15 Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

Nationally Recognized Statistical Rating Organization (NRSRO): A designation granted by the U.S. Securities and Exchange Commission (SEC) to credit rating agencies that are considered credible and reliable in the United States.

Offer: The price asked by a seller of securities. When buying securities, the investor asks for an offer.

Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Par Amount or Par Value: The principal amount of a note or bond that must be paid at maturity.

Par, also referred to as the “face amount” of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100% of its principal amount.

Portfolio: Collection of securities held by an investor. The purpose of a portfolio is to reduce risk by diversification.

Premium: The difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks and a few unregulated firms.

Prudent Person Rule: A standard of conduct where a person of discretion and intelligence who is seeking a reasonable income and preservation of principal acts with care, skill, prudence and diligence when investing, acquiring, exchanging, selling, and managing funds. The test of whether the rule is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

Rate of Return: The yield of a security based on the ratio of the coupon income to the purchase or market price.

Repurchase Agreement: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and a simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.

Reverse Repurchase Agreement: An agreement of one party (for example, a financial institution) to purchase securities at a specified price from a second party (such as a local agency) and a

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 14 of 15 simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specified date.

Risk: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

Safekeeping: A service to customers rendered by financial institutions for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection. Other services normally provided include marking the portfolio to market value, and reporting investments held and investment activities.

Safety: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities and Exchange Commission (SEC): An agency created by Congress to protect investors in securities transactions by administering securities legislation.

Structured Notes: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons) into their debt structure. Their market performance is affected by the fluctuation of interest rates, the volatility of the imbedded options, and shifts in the shape of the yield curve.

Supranational Debt: International or multi-lateral financial agency debt, will capitalized, with strong credit support from contingent capital calls from member countries. Large Supranational Debt is rated AAA by most NRSROs and is highly liquid, with availability in a wide range of maturities.

Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Treasury bills have a maximum maturity of one year.

Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. government and having initial maturities of more than 10 years.

Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. government and having initial maturities from two to 10 years.

Variable Rate Notes: Securities which pay interest at rates that can fluctuate during the life of the security.

When Issued: A conditional transaction that takes place between the time a new issue is offered and the time of physical delivery of the bonds. It is understood between the buyer and the seller that a transaction will occur when and if the bonds are issued.

Yield: The rate of annual income return on an investment, expressed as a percentage. Income yield is obtained by dividing the current dollar income by the current market price for the security. Net

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy)

Resolution 2026-XX Page 15 of 15 yield or yield to maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the purchase date to the maturity date.

Yield Curve: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

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Attachment: Draft Resolution - 2026-27 Investment Policy (5720 : Annual Approval of Investment Policy) Fremont City Council Meeting: 06/02/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5751) DOC ID: 5751
Updated: 5/29/2026 7:29 AM by Alberto Quintanilla Page 1 Fremont Police Managers' Association MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Fremont Police Managers' Association (FPMA)
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 May 2026, the City of Fremont (City) reached a tentative agreement with the Fremont Police Managers’ Association (FPMA) for a successor Memorandum of Understanding (MOU). The bargaining unit consists of 12 members. The proposed MOU incorporates modest compensation increases, health-benefit allowance increases, and modifications and enhancements to longevity pay. All other substantive provisions of the MOU remain unchanged.

Background: The City’s MOU with FPMA expires on June 30, 2026. The City’s negotiating team met and conferred with FPMA representatives regarding a successor agreement and signed a tentative agreement on May 28, 2026. The City received notice that FPMA members ratified the tentative agreement. The effective date of the successor MOU will be July 1, 2026, and will expire on June 30, 2029. California Government Code Section 3505.1 requires the City Council to vote on the proposed successor MOU at a duly noticed public meeting.

Discussion/Analysis: Significant Memorandum of Understanding Provision Changes:

1. Employee Compensation:

General Salary Increases (GSI) - The salaries for the classifications listed in Appendix A of this MOU shall be increased by:

a) 2% effective the start of the first full pay period in July 2026.

b) 3% effective the start of the first full pay period in July 2027.

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Council Staff Report (ID # 5751) Meeting of June 2, 2026 Updated: 5/29/2026 7:29 AM by Alberto Quintanilla Page 2 c) 4% effective the start of the first full pay period in July 2028.

Compaction Adjustments – In recognition of the compaction between the Police Sergeant and Police Lieutenant classifications, the salaries for the Police Lieutenant classification shall be increased by the following amounts. Compaction Adjustments and GSI are additive (not compounded).

a) 1.0% effective the start of the first full pay period in July 2026 (total combined compaction and GSI of 3.0%).

b) 1.0% effective the start of the first full pay period in July 2027 (total combined compaction and GSI of 4.0%).

c) 1.0% effective the start of the first full pay period in July 2028 (total combined compaction and GSI of 5.0%).

2. Health Benefit Allowance:

a) Effective January 1, 2027, the unit’s health benefit allowance will be increased by an additional $200 per month (from $2,900 per month to $3,100 per month).

b) Effective January 1, 2028, the unit’s health benefit allowance will be increased by an additional $200 per month (from $3,100 per month to $3,300 per month).

c) Effective January 1, 2029, the unit’s health benefit allowance will be increased by an additional $200 per month (from $3,300 per month to $3,500 per month).

3. Longevity Pay:

a) Effective the start of the first full pay period in July 2026, Police Lieutenants and Police Captains will be entitled to the following:

Police Lieutenants and Police Captains who have completed 8 years of qualifying service shall receive longevity pay equal to

2.5% of their current base pay.

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Council Staff Report (ID # 5751) Meeting of June 2, 2026 Updated: 5/29/2026 7:29 AM by Alberto Quintanilla Page 3 Police Lieutenants and Police Captains who have completed 24 years of qualifying service shall receive an additional 2.3% of their current base pay (total = 4.8%).

b) Effective the start of the first full pay period in July 2027, Police Lieutenants and Police Captains will be entitled to the following:

Police Lieutenants and Police Captains who have completed 8 years of qualifying service shall receive longevity pay equal to

2.5% of their current base pay.

Police Lieutenants and Police Captains who have completed 10 years of qualifying service shall receive an additional 2.5% of their current base pay (total = 5.0%).

Police Lieutenants and Police Captains who have completed 24 years of qualifying service shall receive an additional 2.3% of their current base pay (total = 7.3%).

c) Effective the start of the first full pay period in July 2028, Police Lieutenants and Police Captains will be entitled to the following:

Police Lieutenants and Police Captains who have completed 8 years of qualifying service shall receive longevity pay equal to

2.5% of their current base pay.

Police Lieutenants and Police Captains who have completed 10 years of qualifying service shall receive an additional 2.5% of their current base pay (total = 5.0%).

Police Lieutenants and Police Captains who have completed 16 years of qualifying service shall receive an additional 3.0% of their current base pay (total = 8.0%).

Fiscal Impact:

1. Compensation Increase:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $108,000 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $261,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $461,000

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Council Staff Report (ID # 5751) Meeting of June 2, 2026 Updated: 5/29/2026 7:29 AM by Alberto Quintanilla Page 4

2. Health Benefit Allowance:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $8,000 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $24,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $38,000

3. Longevity Pay Enhancement:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $71,000 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $147,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $245,000

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.

Links: None

ATTACHMENTS:
• FPMA Resolution June 2026

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RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT

APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF FREMONT AND FREMONT POLICE MANAGERS’
ASSOCIATION FOR A TERM, EFFECTIVE JULY 1, 2026, THROUGH JUNE 30, 2029

WHEREAS, the Fremont Police Managers’ Association (“FPMA” and the City of Fremont (“City”) have expressed a desire to continue their bargaining relationship as governed by the California Government Code Section 3500, et seq.; and
WHEREAS the parties have met and conferred in good faith in accordance with California Government Code Section 3500, et seq.; and
WHEREAS, such meetings have resulted in an agreement of a successor Memorandum of Understanding for the period of July 1, 2026, through June 30, 2029.

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Fremont as follows:

SECTION 1 . The City Council approves the tentative agreement reached with FP MA for a successor MOU, the terms set forth in the staff report dated June 2, 2026, and incorporated herein by this reference.

SECTION 2. The City Council authorizes the City Manager to execute a successor MOU effective July 1, 2026 through June 30, 2029, and to implement the successor MOU.

ADOPTED, June 2, 2026, by the City Council of the City of Fremont, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor

ATTEST: APPROVED AS TO FORM:

City Clerk City Attorney

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Attachment: FPMA Resolution June 2026 (5751 : Fremont Police Managers' Association MOU) Fremont City Council Meeting: 06/02/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5750) DOC ID: 5750
Updated: 5/29/2026 7:47 AM by Alberto Quintanilla Page 1 Fremont Police Association MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Fremont Police Association (FPA)
Contact Persons:

Executive Summary: In May 2026, the City of Fremont (City) reached a tentative agreement with the Fremont Police Association (FPA) for a three- year successor Memorandum of Understanding (MOU). The bargaining unit is made up of 191 members and is comprised of Police Officers and Police Sergeants. The proposed MOU incorporates compensation increases, health- benefit allowance increases, and modifications and enhancements to longevity pay to aid with recruitment and retention efforts. All other substantive provisions of the MOU remain unchanged.

Background: The City’s current MOU with FPA expires on June 30, 2026.

The City’s negotiating team met and conferred with FPA representatives and reached a Tentative Agreement on May 27, 2026. The City received notice that FPA members ratified the Tentative Agreement on May 27, 2026. The effective date of the successor MOU will be July 1, 2026, and will expire on June 30, 2029. California Government Code Section 3505.1 requires the City Council to vote on the proposed successor MOU at a duly noticed public meeting.

Discussion/Analysis: Significant Memorandum of Understanding Provision Changes:

1. Employee Compensation:

General Salary Increases (GSI) – The salaries for the classifications listed in Appendix A of this MOU shall be increased by:

a) 2% effective the start of the first full pay period in July 2026.

b) 3% effective the start of the first full pay period in July 2027.

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c) 4% effective the start of the first full pay period in July 2028.

Market Equity Increases – In recognition of the difficulty in recruiting and retaining Police Officers, and based on the City’s market survey (and the known and anticipated increases in wages for employees in the police officer classification employed by agencies in the City’s historic labor market), the salaries for the classifications listed in Appendix A of this MOU shall be increased by the following amounts:

a) 1.0% effective the start of the first full pay period in July 2026 (total combined market equity and GSI of 3.0%).

b) 1.0% effective the start of the first full pay period in July 2027 (total combined market equity and GSI of 4.0%).

c) 1.0% effective the start of the first full pay period in July 2028 (total combined market equity and GSI of 5.0%).

2. Health Benefit Allowance:

a) Effective January 1, 2027, the unit’s health benefit allowance will be increased by an additional $200 per month (from $2,900 per month to $3,100 per month).

b) Effective January 1, 2028, the unit’s health benefit allowance will be increased by an additional $200 per month (from $3,100 per month to $3,300 per month).

c) Effective January 1, 2029, the unit’s health benefit allowance will be increased by an additional $200 per month (from $3,300 per month to $3,500 per month).

3. Longevity Pay:

a) Effective the start of the first full pay period in July 2027, Police Officers and Sergeants will be entitled to the following:

Police Officers and Police Sergeants who have completed 8 years of qualifying service shall receive longevity pay equal to 2.5% of their current base pay.

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Police Officers and Police Sergeants who have completed 10 years of qualifying service shall receive an additional 2.5% of their current base pay (total = 5%).

Police Officers and Police Sergeants who have completed 24 years of qualifying service shall receive an additional 2.3% of their current base pay (total = 7.3%).

b) Effective the start of the first full pay period in July 2028, Police Officers and Sergeants will be entitled to the following:

Police Officers and Police Sergeants who have completed 8 years of qualifying service shall receive longevity pay equal to 2.5% of their current base pay.

Police Officers and Police Sergeants who have completed 10 years of qualifying service shall receive an additional 2.5% of their current base pay (total = 5%).

Police Officers and Police Sergeants who have completed 16 years of qualifying service shall receive an additional 3.0% of their current base pay (total = 8.0%).

c) Effective the start of the first full pay period in July 2028, Police Officers and Sergeants hired prior to July 1, 2015, will be entitled to the following:

Police Officers and Police Sergeants who have completed 26 years of qualifying service shall receive an additional 4.6% of their current base pay (total = 12.6%).

Police Officers and Police Sergeants who have completed 27 years of qualifying service shall receive an additional 2.3% of their current base pay (total = 14.9%).

Police Officers and Police Sergeants who have completed 28 years of qualifying service shall receive an additional 1.2% of their current base pay (total = 16.1%).

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Fiscal Impact:

1. Compensation Increase:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $1,298,000 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $3,079,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $5,396,000

2. Health Benefit Allowance:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $114,000 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $329,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $527,000

3. Longevity Pay Enhancement:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: No Impact b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $484,000 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $931,000

Links: None

ATTACHMENTS:
• FPA Resolution June 2026

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RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT

APPROVING A MEMORANDUM, OF UNDERSTANDING BETWEEN

THE CITY OF FREMONT AND FREMONT POLICE ASSOCIATION
(FPA) FOR A TERM, EFFECTIVE JULY 1, 2026 THROUGH JUNE 30, 2029.

WHEREAS, the Fremont Police Association (“FPA”) and the City of Fremont (“City”) have expressed a desire to continue their bargaining relationship as governed by the California Government Code Section 3500, et seq.; and

WHEREAS the parties have met and conferred in good faith in accordance with California Government Code Section 3500, et seq.; and

WHEREAS, such meetings have resulted in an agreement of a successor Memorandum of Understanding for the period of July 1, 2026 through June 30, 2029.

NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF FREMONT AS FOLLOWS:

SECTION 1 . The City Council approves the tentative agreement reached with FPA for a successor MOU, the terms set forth in the staff report dated June 2, 2026, and incorporated herein by this reference.

SECTION 2. The City Council authorizes the City Manager to execute a successor MOU with FPA effective July 1, 2026 through June 30, 2029, and to implement the successor MOU.

ADOPTED, June 2, 2026, by the City Council of the City of Fremont, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mayor

ATTEST: APPROVED AS TO FORM:

City Clerk City Attorney

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Attachment: FPA Resolution June 2026 (5750 : Fremont Police Association MOU) Fremont City Council Meeting: 06/02/26 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Budget

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5727) DOC ID: 5727
Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 1 FY 2026/27 Proposed Operating Budget - First Public Hearing (Published Notice) on FY 2026/27 Proposed Operating Budget
Contact Persons:

Name: David Persselin
Title: Finance Director
Div/Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]

Executive Summary: The purpose of this report is to recommend that the City Council hold a public hearing on the FY 2026/27 Proposed Operating Budget. The second public hearing and adoption are scheduled for June 9, 2026.

Background: The following information has been extracted from the Budget Overview section of the FY 2026/27 Proposed Operating Budget document.

It sets the context for the proposed budget by describing the challenges and opportunities the City will address and the major initiatives underway.

Consistent with the City Council’s foundational principal of fiscal sustainability, General Fund budgeted expenditures for the coming year of $289.1 million have been limited to fit within the projected ongoing resources without the use of the Budget Uncertainty Reserve. Although projected revenue growth is sufficient to maintain staffing and services at their current levels, it does not provide capacity to restore the $3.2 million of ongoing maintenance support that was eliminated to balance the FY 2025/26 adopted budget or the $3.1 million of ongoing personnel, supplies, and services reductions that were needed to rebalance the FY 2025/26 budget after labor negotiations concluded.

The proposed budget continues to incorporate the City Council’s and community’s highest priorities by maintaining funding for economic development, reducing homelessness, and ensuring public safety.

The following are highlighted in this overview:
• FY 2026/27 Fiscal Outlook
• Economic Update
• Key Budget Assumptions
• Discussion of Unmet Needs

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Discussion/Analysis:

FY 2026/27 Fiscal Outlook
Staff anticipates that the local economy will grow modestly during FY 2026/27 and total General Fund ongoing resources (revenues and transfers in) of $291.0 million are projected to increase by 3.0% over estimated actual ongoing resources in FY 2025/26.

Property tax and sales tax are the City’s most significant revenue sources.

Property tax revenues are estimated to total $152.5 million in FY 2025/26, and staff projects those revenues will increase to $158.2 million in FY 2026/27, an increase of 3.7%. The estimated increase in secured property value for FY 2026/27 is based on the California Consumer Price Index, property transfer tax data for calendar year 2025 and preliminary information from the County Assessor. High mortgage rates continue to reduce the number of home sales to historically low levels.

With two quarters of available data, we are estimating FY 2025/26 sales tax revenue of $67.3 million and projecting FY 2026/27 sales tax revenue of $69.1 million, a 2.7% increase. Although the total revenue over the first two quarters is higher than anticipated, the State is investigating suspected sales tax misallocations by businesses which could be temporarily inflating our revenue numbers. Backing out an estimate for potentially misallocated revenue, we can still see underlying year-over-year growth of close to 3%.

Business taxes are projected to yield $14.9 million in FY 2025/26. While this represents a 13.8% increase from the prior year, much of the gain results from several large payments we’ve received in the construction-related business tax revenue category along with a delayed payment attributable to FY 2024/25. The FY 2026/27 business tax estimate of $15.1 million assumes historical growth in the general business tax category and a continuation of construction activity at the current level.

Hotel/motel occupancy tax revenues are estimated to total $6.9 million in FY 2025/26 and increase to $7.3 million in FY 2026/27. The strong growth in the current year estimate reflects one-time impacts from the Super Bowl in February 2026 and the World Cup in June 2026. The FY 2026/27 projection assumes growth returns to the most recent three-year average.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 3 The FY 2026/27 proposed operating budget maintains the General Fund Contingency Reserve at 16.7% of budgeted expenditures and transfers out, or $48.3 million, a level consistent with City Council policy and the recommended practice of the Government Finance Officers Association of the United States and Canada. The General Fund Budget Uncertainty Reserve is projected to end FY 2025/26 at $4.3 million.

Economic Update
The national economy is expected to continue expanding at a moderate rate.

The Federal Reserve anticipates growth in the low 2% range in 2026 and 2027. Calendar year 2025 saw the national economy expand at a healthy

2.1% annual rate, but down from 2.8% in calendar year 2024. While the volatile path of tariff policy contributed to that slowdown, consumer spending consistently offset reductions in other areas of the economy as businesses hesitated to increase hiring or expand production. The advance estimate for the first quarter of 2026 reports that gross domestic product (GDP) increased by 2.0%.

The employment situation has remained stable, with the April 2026 unemployment rate of 4.3% the same as March, just slightly down from February, and consistent with reported levels over the last year. The reluctance of businesses to expand or add staff in the face of the evolving global trade environment, combined with the potential for artificial intelligence to replace certain job types, has led to what some have characterized as a “no-hire, no-fire” labor market.

Inflation has remained somewhat elevated throughout the past year, with the Federal Reserve’s preferred measure remaining at or close to 3% compared with its 2% target. However, the closure of the Strait of Hormuz at the end of February, following the commencement of military actions against Iran, immediately led to a jump in gasoline and fuel prices which is now just beginning to contribute to higher costs for goods and services. The press release from the most recent meeting of the Federal Reserve Open Market Committee on April 29th notes that: “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.”
Given the probability of elevated inflation over the next several months, if not longer, the Federal Reserve is unlikely to cut its interest rate target from the current level until the end of 2026 or early 2027. With no change in

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 4 monetary policy, 30-year mortgage rates are expected to remain above 6% for the foreseeable future.

The City’s revenue forecast assumes the economy will continue to grow at a moderate pace, supporting modest revenue growth for sales tax and business tax, but that continued high mortgage rates and interest rates will suppress property sales and development activity at least through the end of 2026.

On a cautionary note, global oil and gas supply disruptions continuing into FY 2026/27 would increase the likelihood of an economic slowdown or possibly a recession. If that were to occur, staff would return to the City Council with recommendations for any necessary budget adjustments.

Key Budget Assumptions
Based on the data we have at this time and economic forecasts from a range of sources, we are making the following key assumptions for the FY 2026/27 proposed budget:

1. The local economy will grow modestly during FY 2026/27. Ongoing FY 2026/27 resources are estimated to grow by 3.0%. The largest contributor to the increased resource estimate is property tax (up

3.7%). The General Fund’s top five revenue categories, property tax, sales tax, business tax, hotel/motel tax, and franchise fees, comprising

91.3% of total General Fund resources, are estimated to increase by

3.4% from the FY 2025/26 level.

2. As the City is currently engaged in a collective bargaining process with its employee groups, the FY 2026/27 proposed budget includes a placeholder salary adjustment of 2.0%.

3. The FY 2026/27 proposed budget includes ongoing funding of $3.8 million for capital maintenance activities for sidewalks, facilities maintenance, park and street median capital replacement, and capital improvements to achieve compliance with ADA standards.

4. In accordance with City Council policy, an additional pension contribution of $1.2 million to pay down the City’s unfunded liability more rapidly has been incorporated into the proposed General Fund budget.

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5. Total expenditures in the FY 2026/27 proposed budget include a savings assumption of $19.7 million (approximately 6.6% of total budgeted expenditures in FY 2026/27) to reflect the City’s historical experience of under-spending total allocated resources, primarily due to salary savings from vacant positions.

6. The General Fund Contingency Reserve will be maintained at 16.7% of total budgeted expenditures and transfers out, the minimum level recommended by the Government Finance Officers Association of the United States and Canada (GFOA).

7. The proposed budget does not include funding to increase the General Fund Budget Uncertainty Reserve, but establishing or maintaining that reserve at an appropriate level will be considered a top priority. As part of the FY 2025/26 Year-End Report in Fall 2026, staff will bring forward recommendations for allocating any available ending unreserved fund balance to address one-time priority projects, programs, unfunded liabilities, or reserve augmentation.

Unmet Needs
Fremont is a great place to live, work and do business. However, like many cities throughout California, our City faces long-term fiscal challenges that impact the City’s ability to maintain quality of life services at the level residents want and deserve. Important quality of life services we must continue to protect, maintain and improve include:
• Police/Fire protection and emergency response services • Garbage and recycling services
• Maintaining public parks
• Streets/Roads repair
• Protecting the safety of drivers, bikers, and pedestrians.

We continue to grapple with increasing needs for public safety services and the growing cost of maintaining Fremont’s roads and other infrastructure.

The construction of new residential units as well as commercial and industrial development throughout the City is necessitating increased police and fire response to protect public safety. The majority of Fremont’s public infrastructure was constructed many years ago and now requires either an increased level or increased frequency of repairs, compounded by not having had adequate resources to spend on maintenance in the past. Moreover, as

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 6 Fremont continues to grow, additional infrastructure is added that must be maintained, further stretching the City’s limited maintenance resources.

Finally, new requirements result in increased costs. Some of these requirements are voluntary, such as the City’s commitment to improving traffic and pedestrian safety and traffic congestion, and encouraging alternative forms of transportation, through implementation of the Mobility Action Plan. Components of the Mobility Action Plan, such as completion of the Safe Routes to Schools program, traffic signal modernization, and construction of major bicycle and pedestrian infrastructure are costly and will necessitate development of enhanced funding sources. Similarly, components of the Climate Action Plan including electric vehicle charging infrastructure for City vehicles and converting City buildings from gas to electric heating call for major investments. Other new requirements, which are regulatory in nature, have increased dramatically over the last few years, and have added significant costs to City operations. The City’s Americans with Disabilities Act (ADA) Transition Plan is projected to need over $100 million over the next 25 years.

Anticipating the slowdown in revenue growth for FY 2025/26 that we’re now experiencing, the adopted General Fund budget was balanced by reducing ongoing funding for capital maintenance activities by $3.2 million. Later in the year, the City Council approved additional ongoing reductions, totaling $3.1 million across all City departments, to offset higher personnel costs resulting from negotiated labor agreements. While the FY 2026/27 proposed General Fund operating budget contemplates no additional service reductions, the only increase in staffing is to add a position to provide administrative support for the Mayor and City Councilmembers. As noted in the key budget assumptions, because the City is engaged in labor negotiations, the proposed budget also includes a 2% placeholder salary adjustment.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 7 Major City Initiatives
The City of Fremont continues to support and invest in major strategic growth initiatives while navigating an operating environment characterized by everchanging conditions and macroeconomic uncertainty. These initiatives are important elements of our diversified tax base strategy to preserve and expand Fremont’s General Fund over time and position the City for sustainable economic growth and fiscal stability.

Development: Fremont continues to experience strong development momentum, driven by sustained demand from advanced manufacturing, life sciences, clean energy, robotics, and AI hardware companies. Major private‑sector investments across key employment districts -- Warm Springs, Bayside, Pacific Commons, Ardenwood, and City Center -- are transforming former underutilized sites into high‑value employment campuses, mixed‑use destinations, and modern industrial facilities.

Collectively, these projects generate significant job growth, attract emerging technologies, support vital infrastructure upgrades, and reinforce Fremont’s position as one of Silicon Valley’s most competitive markets for innovation, manufacturing, and long‑term economic expansion.

Warm Springs Innovation District
The Warm Springs Innovation District remains one of Fremont’s most strategically important employment centers, distinguished by its scale, transportation access to Warm Springs BART Station, I-680, SR-262, and I- 880, and concentration of advanced manufacturing and technology firms.

Spanning approximately 850 acres, the district offers a unique “blank canvas” environment large enough to support next‑generation industrial development while providing the infrastructure and land use protections necessary for high‑intensity production uses.

Warm Springs continues to attract major employers in clean technology, semiconductors, robotics, energy storage, and biomedical production.

Companies such as Tesla, Lam Research, Delta Products, Seagate, Western Digital, ThermoFisher, and Boston Scientific all maintain significant operations in the district. This clustering effect reinforces Fremont’s position as one of the nation’s most important hubs for advanced hardware manufacturing and integration.

The district’s momentum is further highlighted by several major development projects. In 2025 the City celebrated the groundbreaking for

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 8 the Fremont Innovation Center, a 70,000-plus-square-foot advanced manufacturing facility that transforms a long-vacant commercial parcel into a new manufacturing site. Upon completion, the project is expected to generate more than 100 permanent high-tech jobs, contribute over $2 million in infrastructure funding, and activate a key strategic location.

Meanwhile, 49000 Milmont Drive, completed in late 2025, is a 267,000- square-foot advanced manufacturing building now fully leased by Tesla for robotic manufacturing operations. This project further strengthens Warm Springs as a hub for high-tech employment and next-generation mobility innovation. Additionally, the Sobrato Warm Springs Advanced Manufacturing Campus is a proposed 22-acre master-planned development featuring 420,000 square feet of new manufacturing and R&D space expected to break ground in September 2026.

Overall, the Warm Springs Innovation District continues to mature into a flagship employment hub, combining major private‑sector investment, high‑value industrial land uses, transformative infrastructure projects, and long‑term planning strategies that reinforce Fremont’s economic leadership in Silicon Valley.

Bayside Technology Park
Bayside Technology Park continues to reinforce its position as one of Fremont’s most active and strategically significant advanced manufacturing districts. With more than 20 million square feet of flexible R&D and industrial space and strong demand from global technology firms, Bayside remains a premier location for companies scaling production, R&D, semiconductor work, and AI‑driven technologies. As industrial demand accelerates -- fueled by reshoring manufacturing, the growth of AI hardware, and ongoing innovation across clean energy and biomedical sectors -- Bayside plays a critical role in attracting high‑value investment to Fremont.

A major highlight for Bayside is the groundbreaking of Phase 1 of Campus at Bayside, a 473,250‑square‑foot advanced manufacturing project located at 47100 Lakeview Boulevard. This project represents one of the largest industrial investments breaking ground in Silicon Valley in 2025. The development showcases Fremont’s competitive edge as a manufacturing hub and is expected to create up to 2,500 new manufacturing and R&D jobs at full build‑out. Phase 1 has already been fully pre-leased with the groundbreaking for Phase 2 in the pipeline.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 9 Prologis has acquired multiple strategic sites at the Siemens campus and is proposing a new 200,000‑square‑foot advanced manufacturing project, reinforcing their deep and long‑standing presence in Fremont’s industrial market. With this upcoming project, Prologis’ Fremont portfolio includes 55 buildings totaling 4.6 million square feet, with nearly all of this space leased to manufacturing and technology companies.

A defining advantage for Bayside is the City’s collaboration with LS Power to bring major utility upgrades to the district. The $500 million “Power the Bay” project is connecting nearly 1 gigawatt of solar‑generated power to Fremont’s Bayside transmission station, with an associated 75-megawatt local grid distribution expansion to support advanced manufacturing growth.

This transformative infrastructure investment also provides five miles of dedicated fiberoptic conduit to the City for future high‑speed broadband needs.

Pacific Commons and Fremont Auto Mall
The Pacific Commons area is a disproportionate driver of General Fund revenues for the City due to the sales tax revenues provided by the Fremont Auto Mall -- one of the largest auto malls in California -- and Pacific Commons Shopping Center, one of the largest outdoor shopping malls in the country. Fremont’s Auto Mall continues to show resiliency in the face of changing macroeconomic conditions, with new dealership franchises continuing to locate there.

This includes Enterprise Mobility Solutions, which in 2025 opened a new 3‑in‑1 dealership, rental center, and commercial truck facility -- its largest dealership in California. In Pacific Commons Shopping Center, H Mart announced the purchase of a 100,000-square-foot former Kohl’s building, where it plans to build a flagship multi-level food and entertainment hub, its largest investment in company history.

Immediately adjacent to the shopping center is Pacific Commons South. A

2.5 million-square-foot modern industrial development, Pacific Commons South continues to play a major role in Fremont’s economic growth, supporting job creation, industrial reinvestment, and new retail activity. The master-planned, 10-building campus is leased to many of the region’s leading technology companies, including Meta, Quanta Computer, Bloom Energy, UPS, and Amazon.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 10 Nearby, the recently developed, 400,000-square-foot Fremont Tech Center campus has reached full occupancy, generating approximately $4 million in one‑time impact fees and an estimated 650 full‑time jobs. It exemplifies Fremont’s ability to reposition former retail sites into high‑value employment centers
Ardenwood Technology Park
Ardenwood Technology Park offers a more idyllic setting amongst Fremont’s industrial employment districts. Strategically located 2.5 miles from the Peninsula at the eastern landing of the Dumbarton Bridge, the district offers unmatched regional access -- providing a shorter or reverse commute for workers traveling from the Peninsula, South Bay, and the greater East Bay.

Employers consistently cite Ardenwood’s central location and high‑quality campus environment as key advantages for scaling operations.

Ardenwood is home to one of Fremont’s largest concentrations of biotechnology, life science, and advanced technology companies. Recent expansions include Meta, Nextpower, Novo Nordisk, Boehringer Ingelheim, and Alexza Pharmaceuticals, each deepening their manufacturing and R&D footprints in the district.

With its combination of locational advantages, high‑value employers, flexible zoning, and access to world‑class amenities, Ardenwood Technology Park remains one of Fremont’s most competitive and future‑ready districts for biotechnology, clean energy, semiconductor, and office‑based innovation.

Untapped development capacity still exists in Ardenwood, supported by greenfield sites and higher density zoning, which staff expect to materialize into new employment centers and General Fund revenues in the coming years.

Downtown and City Center
Downtown Fremont and the broader City Center area continue to evolve.

Envisioned as Fremont’s primary gathering hub, this centrally located district is defined by its walkable street grid, proximity to regional transit, and concentration of civic, commercial, and residential uses. The 110‑acre Downtown Community Plan area, framed by Fremont Boulevard, Mowry Avenue, Paseo Padre Parkway, and Walnut Avenue, sits at the heart of the larger 430‑acre City Center Community Plan area, both of which provide the long‑term land use framework guiding Fremont’s downtown revitalization.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 11 The City has invested heavily in creating the foundation for a vibrant mixed‑use district. A walkable street grid with enhanced pedestrian linkages connects Downtown to the nearby Fremont BART Station, while public and private developments have delivered new urban amenities, civic spaces, and a growing mix of retail and residential opportunities. Within a one‑mile radius of Downtown, there are already 15,000 residents and a 20,000- person workforce primarily geared toward healthcare and retail, and the district benefits from adjacency to major commercial anchors including the Fremont Hub, Gateway Plaza, and Fremont Plaza shopping centers.

Several transformative projects are shaping the next wave of Downtown and City Center growth:
• The Hub and Gateway Plaza Redevelopment (Kimco Projects) Two significant redevelopment projects at The Hub and Gateway Plaza, led by Kimco Realty, were unanimously approved by the Planning Commission and later upheld by City Council. These projects will bring over 500 units of multifamily housing, new retail space, community amenities, and enhanced streetscapes -- transforming primarily surface‑parked shopping centers into mixed‑use anchors that strengthen Downtown’s commercial core.
• Capitol Avenue and Capitol Square
Capitol Avenue continues to serve as Downtown Fremont’s emerging “retail spine,” supported by strong retail leasing activity. In 2025, the Capitol Square development reached full “lease‑up” of its 11 ground-floor commercial spaces, reinforcing the burgeoning district’s capacity to attract small businesses, restaurants, wellness services, and locally owned shops.
• Downtown Event Center (DTEC)
The City‑owned Downtown Event Center, opened in 2021, has become a major event venue hosting thousands of attendees annually. It is a central activation hub for industry events and community gatherings. This facility supports both community programming and Downtown’s growing cultural identity.

Downtown Fremont is one of the rare opportunities in the Bay Area to build a downtown from the ground up. Since the adoption of the Downtown

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 12 Community Plan in 2012 and the City Center Community Plan in 2016, the area has seen:
• A new civic plaza and event center
• High‑density residential entitlement and construction activity • Growth in ground‑floor commercial tenants
• New six-story office headquarters for Fremont Bank
• Increasing interest in mixed‑use redevelopment of older commercial centers
These developments collectively reinforce Downtown Fremont as a growing regional destination for living, working, shopping, and cultural activity.

Business Attraction: Fremont’s business attraction efforts continue to strengthen the City’s advanced industry ecosystem, drawing high‑growth companies across manufacturing, clean energy, life sciences, and next‑generation technology sectors. Through proactive outreach, real estate and permitting support, and close coordination with regional partners, the City helps companies expand and establish new operations in Fremont.

This high‑touch, relationship‑driven approach supports job creation, innovation, and long‑term fiscal stability while reinforcing Fremont’s position as one of the Bay Area’s most competitive markets for industrial and technology investment. These activities contributed significantly to Fremont’s record‑setting year in 2025, during which the City led all Silicon Valley submarkets with nearly five million square feet of commercial space leased, and captured 70% of all advanced manufacturing leases in the Bay Area, reflecting its dominant position in the industrial and hardware technology sectors.

Fremont supported significant expansions by leading firms such as AMAX, Bionova Scientific, Bloom Energy, Boehringer Ingelheim, Lam Research, Nextpower (formerly Nextracker), Novo Nordisk, Novo Pneuma (formerly Alexza Pharmaceuticals), Quanta Manufacturing, Raxium, TD Synnex, Tesla, Wisk Aero, and Wistron. These expansions represent some of the region’s most active and capital‑intensive industrial investments.

Fremont also successfully attracted many fast‑growing and emerging companies in next‑generation technologies including Aivres, Agility Robotics,

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 13 Avidex Industries, Kuprion, Stacked Energy, Tandem PV, and Mitac Information Systems. These companies selected Fremont for its advanced manufacturing ecosystem, workforce talent, and robust public‑private support infrastructure.

Advanced Industry Sector Highlights
Fremont continues to strengthen its role as a national hub for advanced industries, supported by major investments in biomedical manufacturing, clean energy, semiconductor technology, autonomous mobility, and AI‑driven hardware. The City’s business‑friendly environment, deep manufacturing expertise, and coordinated utility and permitting support create ideal conditions for companies scaling complex and power‑intensive production operations.

The biomedical and life sciences sector remains one of Fremont’s fastest‑growing clusters, with more than 150 companies contributing to ongoing research and advanced manufacturing. Recent expansions by firms such as Bionova Scientific, Boehringer Ingelheim, and Novo Nordisk continue to deepen the city’s specialized talent base and reinforce long‑term stability through high‑skilled employment and production capacity.

Clean‑energy and battery innovation also continue to accelerate, driven by companies that leverage Fremont’s industrial capabilities and infrastructure readiness. Bloom Energy and Stacked Energy are expanding clean‑energy and storage technology manufacturing across the city, while firms throughout the cleantech ecosystem benefit from federal incentives and Fremont’s strategic support for power‑intensive operations. Together, these investments bolster Fremont’s position as a national leader in energy‑transition technologies.

Semiconductors, AI hardware, and high‑performance computing remain key pillars of Fremont’s advanced industry landscape. Semiconductor and related companies such as Nova Systems and Lam Research continue to grow their presence. Fremont has emerged as one of the country’s most important hubs for AI server and computing hardware. The City now hosts 33 AI server manufacturing facilities totaling approximately four million square feet -- one of the largest concentrations globally -- up from just six facilities three years ago. These companies collectively drive demand for power infrastructure, support next‑generation computing innovation, and enhance Fremont’s competitiveness in global technology supply chains.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 14 Retail and Commercial Vibrancy
Retail and commercial vibrancy remain central pillars of Fremont’s economic development strategy, supporting both quality‑of‑life and the success of small businesses across the city. Through coordinated outreach, targeted programming, and strategic partnerships with property owners and brokers, the City continues to cultivate a vibrant retail ecosystem that strengthens Fremont’s neighborhood business districts, Downtown, and destination shopping areas.

Downtown and City Center Retail Activity
Downtown Fremont continues to evolve into a vibrant, walkable district supported by new ground‑floor commercial spaces and strong tenant activity. The City assisted numerous retailers with navigating opening requirements, helping to expand the district’s mix of food, beverage, wellness, and specialty retail offerings. New businesses in the City Center area include: Angry Chickz, Dosa Dash, Palmetto, Paradox Barbershop, Pints of Joy, Pizza My Heart, Pour Decisions, Shugetsu, Stardust, The Kebab Shop, Waxing the City, and Zaitoon.

Downtown’s mixed‑use projects continue to show strong performance:
• Capitol Square, Downtown’s first mixed‑use development, is fully leased with eleven local businesses, including Banter Bookshop, Paradox Barber Shop, and Din Ding Dumpling House.
• The Beacon and The Tolman developments have activated their ground‑floor commercial spaces with businesses such as Pour Decisions, Waxing the City, and Palmetto Super Foods.

The City also invests in placemaking events that bring thousands of visitors Downtown. Activations like the 2nd Annual Holidays at the Plaza, Downtown Dog Days, Downtown Dance, Fremont Restaurant Week, and other family‑friendly events collectively attracted more than 10,000 attendees, driving both foot traffic and economic activity for small businesses.

Citywide Retail Vibrancy
Commercial vibrancy is an important priority across Fremont’s neighborhoods beyond Downtown. In collaboration with property owners, retail brokers, and commercial managers, the City continues to support reinvestment and tenant attraction in key commercial corridors. Notable new

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 15 retail openings citywide include: Bikanervala, Bintang, Bun Bun Chinese Food, Cassa Jam, Chicha San Chen, Extra Coffee Roasting Company, H Mart, Miniso, Qamaria Yemeni Coffee, Sourdough & Co., Umika Sushi, Wadaya, Wushiland Boba, and X20 Studios.

The City also launched Access Fremont, a free high‑speed public Wi‑Fi initiative serving commercial districts. Introduced in October 2025, the program enhances visitors’ experience and supports small‑business operations across Fremont’s key retail nodes.

Pacific Commons Retail Anchors and Major Investments
Pacific Commons remains a major regional retail destination, bolstered by significant new anchor investments:
• H Mart purchased a two‑story, 100,000‑square‑foot building to establish its largest California grocery store and its most substantial investment to date. The new flagship location will include dine‑in restaurants, a bar, live music, and a food hall experience.
• Miniso celebrated the grand opening of its new flagship North America location at Pacific Commons -- its largest store outside of Asia -- showcasing the district’s ability to attract high‑profile global retailers.

These anchor projects position Pacific Commons as a continued powerhouse for regional retail, complementing the district’s robust advanced manufacturing presence.

Capital Projects: The City has an ongoing Capital Improvement Program (CIP) that provides investments to improve infrastructure related to the City’s transportation system, parks, and building facilities. Primary funding for these investments comes from development impact fees; State gas taxes; County transportation funds; grants from federal, State, and regional sources; and ongoing and one-time transfers from the General Fund. In the recent past, significant projects completed include the West Access Bridge and Plaza at the Warm Springs BART Station and Dusterberry Neighborhood Park.

Notable projects in construction include:
• Central Park Community Center and Event Hall, a $51 million project planned for completion in Spring 2028.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 16 • Park Restroom Modernization Program, a multi-year program to replace or remodel 18 old park restrooms with project completions occurring in 2026 (8 locations), 2027 (6 locations), and 2028 (4 locations). • Vallejo Mill Historic Park Improvements, with a new dog park and pickle ball courts, is planned for completion in Spring 2026.
• Electric Vehicle Charging for City Fleet Vehicles, providing an expansion of charging capacity at the Maintenance Center, Development Center, and City Hall, is planned for completion in Summer 2026.

Looking ahead, the City’s past Capital Budget approvals and the adopted five-year CIP (FY 2025/26 through FY 2029/30) include projects and programs valued at $236 million. The highlights of planned projects and capital investments are as follows.

Capital Maintenance
Preservation and maintenance of existing City assets is a primary focus of the CIP. The highest level of funding in Capital Maintenance is allocated to ongoing annual projects to repave City streets, repair sidewalks, curbs and gutters in the worst condition, and build ADA curb ramps. This also includes maintenance and capital replacement funding for parks, landscaped median islands, street lighting, and buildings, as well as a 50/50 grant program to assist residents with sidewalk repairs and street tree replacements. Other funded projects include:
• Buildings with aging heating, ventilation and air conditioning (HVAC) systems will have old natural gas units replaced with new electrical equipment, where feasible, and will align with Fremont’s clean energy goals. Projects planned for construction over the next three years include: Fire Stations 1, 4, 5, 7 and 10; Police Center dispatch center; Warm Springs and Centerville community centers; Centerville Library, and the Maintenance Center office building.
• Historic buildings planned for new roof systems include the Centerville Train Depot (2026), Chadbourne Carraige House (2026), and Patterson House (2027).
• Planning for replacing approximately 16,000 LED streetlights citywide to ensure replacement before they reach the end of their expected life.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 17 It is noted that $3.2 million of annual funding from the General Fund for pavement maintenance and parks capital replacement was eliminated beginning in FY 2025/26 which is expected to result in a decline in pavement conditions and delayed replacement of aging parks infrastructure.

Transportation
The Transportation CIP includes investments for traffic operations and signal system improvement, bicycle and pedestrian facilities, and major projects. • Investments in traffic operations and signal projects include annual expenditures to maintain existing traffic signals, modernize equipment for more efficient operations, construct new traffic signals at priority locations to improve safety, and to respond to community interests/concerns related to traffic operations.
• The City receives dedicated funds from the County Measure BB program and State grants for “complete streets” projects to enable better travel opportunities for walking and bicycling. This program helps deliver priority projects identified in the City’s updated Active Transportation Plan and Safe Routes to Schools program.
• A significant element of the City’s Transportation CIP is oriented toward major and regional projects. This includes the City’s support for developing the new Irvington BART Station; connecting communities with trails by building bridges over freeways in the I-880/Innovation and I- 680/Sabercat areas; and modernizing freeway interchanges at I- 680/Mission and I-880/ Decoto. In addition, the City has been approved to receive $62 million in grant funding for multimodal transportation projects in the Dumbarton/Decoto corridor, the Peralta/Mowry corridor, and the Fremont Boulevard corridor.

Parks and Recreation
The Parks CIP includes investments to implement the Parks and Recreation Master Plan adopted by the City Council in March 2022. Significant projects to enhance parks and recreation programs in Fremont include the following:
• Centerville Community Park Expansion, increasing the park size from 10 to 20 acres, with construction planned to start in Summer 2026. This expansion will include a new playground, group and individual picnic areas, large and small field areas, and a new parking lot to accommodate

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 18 added users. Four pickleball courts, adult exercise equipment, and three bocce ball courts will expand and diversify Fremont’s non-youth offerings. • Palm Avenue Community Park project will develop 12 acres of park in a currently park-deficient area of Fremont. With the opening of this park, approximately 2,700 people will have new access to a public park within a ten-minute walk of their homes, moving Fremont closer to its goal of improved park equity.
• The Parks CIP also funds other ongoing projects for improvements such as new ADA upgrades, benches, and trails to add pathways and benches to existing parks, in alignment with other City efforts, such as the Age- Friendly Fremont Action Plan.

Legislative Advocacy: The City continues to be proactive with its legislative advocacy efforts and has forged ahead with building partnerships at the federal, State, and regional levels to ensure the interests and concerns of Fremont and the region are preserved. The City’s Legislative Framework, approved by the City Council, establishes guiding principles and priorities, and serves as the City’s foundation for pursuing major initiatives and funding opportunities. Adopting a legislative framework enables City staff and lobbyists to actively advocate for, influence, and monitor State and federal legislation that best represents Fremont’s interests.

The City Council held its annual retreat in February 2026 to establish four priority policy areas for the City in FY 2026/27, which included (1) Economic Development and Financial Sustainability, (2) Reduce Homelessness, (3) Public Safety, and (4) Charter City Initiative. The City’s legislative advocacy efforts for FY 2026/27 will focus on addressing these priorities.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 19 Economic Development and Fiscal Sustainability
Continue to strengthen Fremont’s economic competitiveness and long-term fiscal health by prioritizing strategic business attraction and retention, workforce development, and targeted investments that enhance Downtown vibrancy. Align economic development, community identity, and quality-of- life initiatives with long-term budget sustainability, while establishing measurable outcomes that can be clearly communicated to community and stakeholders.

Reduce Homelessness
Build on progress and strengthen outcome orientation in Fremont’s homelessness response. Emphasize coordinated strategies that connect housing availability, service delivery, and measurable outcomes such as outreach effectiveness, shelter placements, navigation capacity, and transitions to stable housing. Strengthen regional coordination and public transparency regarding results and challenges.

Public Safety
Sustain and enhance public safety staffing and service capacity, while improving how public safety trends, strategies, and outcomes are communicated to the community. Continue to support recruitment and retention and reinforce public confidence through transparent, data-driven reporting and engagement.

Charter City Framework
This priority reflects the Council’s direction to initiate a structured work plan to evaluate the option of a City Charter, including the formation of an advisory committee and coordination with City staff to support analysis and public engagement. The intent of this work program is to conduct the evaluation and associated community engagement in a manner that would position a Charter City proposal for potential placement on the November 2026 ballot, subject to Council review and consideration as the evaluation proceeds.

During the California State Legislature’s 2025 Legislative Cycle, the Governor signed more than 700 bills into law. Some of the themes/topics addressed at the Legislature in 2025 included education, labor/workforce, transportation, infrastructure, environment, health and social services, housing, public safety, and local government administration/operations. At

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 20 the national level, in 2025, the United States Convened for the 1st session of the 119th Congress, and the Trump administration succeeded the Biden administration. This change brought new leadership across various federal agencies and shifts in federal policies to reflect the new administration’s priorities. Notably, in 2025, the President signed H.R. 1 (One Big Beautiful Bill Act) into law, which included a series of provisions relating to taxes and various federal programs, as well as increasing the statutory debt limit.

Other major legislative developments at Congress included S. 2651 (ROAD to Housing Act) and H.R. 4669 (FEMA Act of 2025), among others. Heading into the 2026 Legislative Cycle, City staff will monitor and review bills and regulatory changes that affect our community and local economy.

In 2025, Congressman Ro Khanna advocated to help secure $850,000 in federal Community Project Funding for the City’s Auto Mall Parkway Center Median Project, which was ultimately included in a consolidated appropriations package for FY 2026 that the President signed into law in February 2026. Further, in March 2026, Congressman Eric Swalwell submitted the City’s Lake Elizabeth Improvement Project ($3 million) and the Traffic Safety Improvement Project at Dusterberry Community Park ($3 million) for FY 2027 Community Project Funding. Additionally, Congressman Ro Khanna submitted the City’s Hetch-Hetchy Trail Gap Closure Project at Scott Creek Road ($3 million) and Walnut Avenue to Dixon Landing Road Quiet Zone Corridor Project ($4 million) for FY 2027 Community Project Funding. City staff will continue to monitor the progress of these funding requests, and will seek additional regional, state, and federal funding opportunities to further advance the City’s priority objectives.

Over the next year, staff will continue to work with our legislative advocates to prioritize and track legislation, while continuously evaluating the legislative climate to identify new areas of opportunity, with the overarching goal of improving quality of life and creating an equitable future for all, consistent with the City’s vision, goals, and policies.

Conclusion
Fremont prides itself on being a fiscally responsible, lean organization, making the most of the resources entrusted to us. This proposed budget focuses our limited ongoing revenues on the most essential City services while continuing to defer certain maintenance activities.

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Council Staff Report (ID # 5727) Meeting of June 2, 2026 Updated: 5/28/2026 9:49 AM by Alberto Quintanilla Page 21 To the extent additional resources become available, we will work to ensure that they are used to address the City Council’s and community’s highest priorities.

Fiscal Impact: The City Council is not being asked to take action tonight on the FY 2026/27 Proposed Operating Budget other than to hold a public hearing and provide comments to staff. A second public hearing and adoption of the budget are scheduled for June 9, 2026.

Environmental Review: This agenda item is not subject to the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15378 as it is not defined as a “project.” Link: The FY 2026/27 Proposed Operating Budget is posted on the City’s website at
https://www.fremont.gov/government/departments/finance/financial- reports.

Recommendation:

1. Hold a public hearing.

2. Provide direction to staff on issues pertaining to the FY 2026/27 Proposed Operating Budget.

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Fremont City Council Meeting: 06/02/26 07:00 PM
3300 Capitol Avenue Div/Dept: City Attorney's Office
Fremont, CA 94538 Category: Plans, Policies and Studies

SCHEDULED
Sponsors:

COUNCIL STAFF REPORT (ID # 5736) DOC ID: 5736
Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 1 First Public Hearing of City Charter Consideration - Conduct a First Public Hearing (Published Notice) to Consider the Charter Work Plan Recommendations by the Charter Advisory Committee.

Contact Persons:

Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Div/Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]

Executive Summary: On March 3, 2026, the City Council approved a Charter Work Plan and established a Charter Advisory Committee (”Committee”) tasked with developing a recommendation on a potential charter for the City of Fremont. The City of Fremont’s Charter Advisory Committee held six public meetings from March 23, 2026, to April 27, 2026, during which it developed recommendations on topics outlined in a City Council-approved charter work plan. The City Council will now hold two public hearings to review and consider these recommendations, including a draft city charter. At a third City Council meeting, the Council will decide whether to submit a Charter to the November 2026 ballot for consideration by Fremont voters.

Background: At the City Council’s regular meeting on February 17, 2026, Vice Mayor Yajing Zhang presented a referral to consider transforming the City of Fremont from a general law city to a charter city and to do so in time to place a new Charter on the ballot for voter consideration in the November 2026 election. The City Council directed staff to develop a work plan and resolution to target the placement of a potential charter on the November 2026 ballot. Additionally, the City Council’s approval of the Vice Mayor’s referral established a seven-member, Mayor-appointed Charter Advisory Committee (“Committee”), tasked with providing recommendations responsive to a Council-approved work plan.

During the City Council’s regular meeting on March 3, 2026, City staff presented a draft work plan to facilitate the development of a new City Charter within the City Council’s prescribed timeline. Following the presentation, the City Council approved a work plan that included the following topics for the Committee's consideration:

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 2 • Governance models;
• Hiring authority;
• Meeting structures;
• Principles of accountability, transparency, and non-interference; • Term limits options;
• Council compensation considerations; and
• City Council staffing options

Subsequently, the City Council held a special meeting on March 20, 2026, to approve Mayor Raj Salwan’s appointment of seven members to the Committee. The Committee scheduled six public meetings from March 23, 2026, to April 27, 2026, to achieve its responsibilities specified in the City Council-approved referral and work plan and to facilitate public review and input into the charter deliberation process.

The Charter Advisory Committee held six public meetings during March and April of 2026. City staff facilitated the meetings and provided information and analysis on each of the City Council's workplan topics before the Committee made final recommendations at its last meeting. Attachment A provides a summary of the Committee Meetings and final recommendations.

Discussion/Analysis:

Below is a summary of data relevant to the Work Plan topics established by the City Council. Similar data was provided to the Charter Advisory Committee and served as the basis for its recommendations.

A. DATA ON CHARTER CITIES

Government Structure
According to data published by the California State Controller’s Office, there are currently 357 general law cities and 125 charter cities in California.

Currently, the City of Fremont is a general law city under the laws of the State of California. The City of Fremont voters considered and rejected a city charter proposal in 1998.

California cities operate under three primary forms of government: Council- Manager, Mayor-Council, or Strong Mayor. In a survey of statewide comparative data from both Bay Area cities and other major cities, as shown in Attachment B, the vast majority of cities operate under the Council- Manager form of government.

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• Council-Manager Government: This is the most common model in California and is currently used by the City of Fremont. In this structure, the City Council sets policy and appoints a professional city manager to act as the city’s chief executive officer, responsible for drafting budgets, typically appointing department heads, and overseeing day-to-day operations. This model emphasizes nonpartisan professionalism, technical proficiency, clear role separation, and operational stability. It is often viewed as the model that best supports administrative expertise and reduces political interference in city management.

• Strong Mayor Government: This form of government centralizes political and administrative authority in an elected mayor who functions as a full-time chief executive. A strong mayor may: appoint some department heads, propose the city budget, manage daily operations, and possess veto power over council legislation. This model is used in only two California cities (San Diego and San Francisco). While proponents argue it can streamline decision-making and strengthen executive leadership, risks can include increased partisanship, concentration of authority, and potential imbalance amongst elected officials and in legislative-executive power.

• Mayor-Council Government: This form of government represents a shared-power model in which authority is distributed between the mayor and the city council. The mayor remains the chief executive but requires council confirmation for many key appointments and shares responsibility for legislation and budgeting. Unlike the fully centralized strong-mayor system, this model blends political leadership with checks and balances, aiming to preserve accountability while enabling a more politically responsive executive branch. The Cities of Oakland, Los Angeles, and Fresno are examples of how appointment authority, administrative oversight, and legislative powers are divided under this model. This model distributes operational decision-making more equally between all of the elected officials while de-emphasizing the role of the City Manager.

Greater political influence over operational issues under a strong mayor or Mayor-Council form of government may impact the stability of a city organization. As a local example, since 2000, when Oakland transitioned to a

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 4 Mayor-Council form of government, the City has had 9 permanent City Administrators and 5 interim (temporary) City Administrators.

It’s also worth noting that a change in the form of government may not result in higher performance across a range of important indicators. When comparing Fremont with the cities listed in the comparative analysis from Attachment B across key indicators such as crime rate, poverty rate, and unemployment, Fremont performs in the 90th percentile or higher. (American Community Survey, US Census Bureau). This performance supports Fremont’s consistent ranking as ‘Happiest City’ and one of the best cities to raise a family in national surveys.

Term Limits
State law does not set minimum or maximum term limits for city councils or prohibit city councils from lowering or raising term limits. Sections 2.05.100 and 2.05.110 of the Fremont Municipal Code (FMC) provide that Fremont City Councilmembers and the Mayor may serve up to two consecutive four- year terms, respectively.

City Council Staff Support
An analysis of surveyed cities revealed that fewer than half of the surveyed cities budget any direct staff for the City Council. A wide variability in staffing levels exists for those that do, ranging from a single administrative role in smaller cities to dozens of aides, analysts, and assistants in larger cities like Oakland and San José. Significant compensation disparities exist as well, ranging from $80k to over $270k for a given position, depending on the role (administrative, analytical, executive).

In the City of Fremont, for positions that would be most appropriate to support the City Council, total ongoing compensation ranges from $122,162 to $235,604 annually. The administrative analyst position that has previously supported the City Council has an ongoing total compensation of $169,103 annually.

City Council Compensation
Salary for the Mayor and City Council is governed by state law and the FMC.

California Government Code Section 36516 authorizes city councils to enact an ordinance providing that each member of the city council receives a salary depending on the population of the city. Section 36516.1 authorizes a city council to provide a mayor with compensation in addition to that which he or she receives as a council member.

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State law permits adjustments to city council salaries (a) by an amount not exceeding the greater of either 5 percent for each calendar year from the operative date of the last adjustment of the salary or (b) by an amount up to inflation measured by the Consumer Price Index, which shall not exceed 10 percent for each calendar year. Under the FMC, City Council compensation increases are reviewed during each budget cycle and are considered commensurate with the Consumer Price Index in an amount not to exceed 4 percent.

In Fremont, the Mayor and City Council are compensated commensurate with a ‘part-time’ role. Relative to other surveyed charter cities with part- time mayors and city councils in Fremont’s compensation market, Fremont’s elected officials currently receive total compensation amounts lower than the median, with the mayor earning $60,949 and councilmembers earning $36,694 annually. These figures are 87% and 70% of the market median, respectively.

A key reason for lower total compensation levels is the allocation of health benefit allowance (HBA), which is currently set at $455/month. For the current half-time (50%) regular City represented employees, the HBA is $1,450/month. Increasing the HBA for Mayor and City Council to this same level would add an additional $17,400 to annual total compensation amounts and result in total compensation of $72,886 (106% of market median) and $48,631 (93% of market median), respectively.

The HBA amount for full-time represented employees is $2,900 per month.

Increasing the HBA for the Mayor and City Council to this level would result in total compensation of $90,286 and $66,031, respectively. Note, under State law, the HBA for a part-time elected official may only be increased commensurate with the equivalent part-time employee HBA rate. However, the City Council may define ‘part-time’ as a percentage and recommend an HBA increase to match that percentage (i.e., if part-time is defined as 75%, an HBA equal to 75% of the full-time employee rate is permitted).

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 6 Executive Roles and Appointment Authority
Across the surveyed cities, the mayor in a council-manager form of government is a voting member of the city council, with no designated veto powers or authority to cast tie-breaking votes. Veto power is often present in a strong mayor or mayor-council form of government, where the mayor is not a voting member of the legislative body.

While mayoral and council authorities were structurally similar across surveyed cities with a council-manager form of government, there were some variations, mostly in Southern California charter cities. For example, in the cities of Long Beach and San Bernardino, the mayor is not a voting member of the legislative body but does hold veto power on council items.

In the City of Alameda, its charter authorizes the mayor to take command of the city police and fire departments and govern the city by proclamation during an emergency. In the City of Fremont’s current organization, the City Manager directs the operations of the Emergency Operations staff in the event of an emergency.

Regarding appointment authority, in most council-manager cities, including the City of Fremont, the city council appoints the city manager/administrator and the city attorney. In this model, the city manager/administrator serves as the city’s chief executive officer and is responsible for the appointment of department heads and other city employees. In the staff’s survey of charter cities with a Council-Manager form of government:

• 38% appoint the City Manager and City Attorney (similar to Fremont). • 20% also appoint City Clerk.
• 28% also appoint a City Treasurer/Auditor.
• One City authorizes appointment of all department heads (Piedmont).

Beyond this, a small number of surveyed charter cities authorize their city councils to confirm additional staff members, such as the city clerk or other specific executive positions.

In some cities, the appointment of the city manager/administrator, department heads, and/or mayoral and city council staff is directly vested in the mayor. For example, in the Cities of San Jose and Stockton, the mayor directly appoints a public information officer. Further, the Cities of Stockton, Sacramento, and Chula Vista, and the City and County of San Francisco are examples in which the mayor appoints direct staff to support the office of the mayor and/or the legislative body.

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Interviews with top California public sector executive recruiters offered the following observations regarding how the additional influence of elected officials in the appointment process could affect the ability to recruit or retain top talent:
• Reduces candidate pool because it signals a shift away from Council/Manager form of government, which top candidates generally seek;
• When Council confirmation exists, it functions as ratification of an appointment decision;
• Many cities have informal processes for informing and seeking input from the Mayor/City Council regarding key appointments.

B. COMMITTEE RECOMMENDATIONS

The Committee’s final recommendations with respect to the City Council- approved charter work plan are as follows:

Topic Recommendations Is Charter
Required?
Government
Structure
Maintain a Council-Manager
form of government (Charter
City).

Yes, if the intent is
to have a charter.

No, if the sole intent
is to maintain the
Council-Manager
form of government.

Term Limits
City Council Term Limits:

Increase to three consecutive
four-year terms.

No.

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 8 Mayor Term Limits: Increase
to three consecutive four-year
terms.

No.

Council
Compensation
and Office
Support
Status: The Mayor and City
Council to maintain their
current part-time status.

No.

Council Salary: Match the HBA
of elected officials to that of
the City’s full-time
represented employees.

This
recommendation is
not permissible
under state law,
assuming the City
Council and Mayor
maintain their part-
time status. The
HBA shall be no
greater than that
received by non-
safety employees.

Staffing Options: Allocate 1.5
employees to support the
Mayor and City Council.

No.

Executive Roles
Appointment Authority: City
Manager maintains
appointment authority of City
Department Heads (except
the City Attorney), subject to
confirmation by the City
Council.

No.

The Committee’s recommendations can largely be achieved through existing legislative (e.g., ordinances) or administrative authorities under the City of Fremont’s current general law structure. Other than the creation of a city charter, a charter is not necessary to pursue the Committee’s

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 9 recommendations. The current provisions of the California Government Code do not prohibit a general law city from (1) increasing city council and mayoral term limits, (2) allocating direct staff to support the city council and mayor, and (3) providing authority for the city council to confirm the city manager’s appointments.

One of the Committee’s recommendations was to raise the Health Benefit Allowance (HBA) of Fremont’s Mayor and City Councilmembers, commensurate with the City’s full-time represented employees, while maintaining their part-time status. Under state law, this recommendation is not allowed regardless of whether a city operates under general law or charter status. The City Council may define ‘part-time’ as a percentage and recommend an HBA increase to match that percentage (i.e., if part-time is defined as 75%, an HBA equal to 75% of the full-time employee rate is permitted).

Community Engagement
City staff have conducted community engagement activities throughout this process, as directed in the charter work plan. Since the City Council’s adoption of the work plan, City staff have published articles and communication pieces on the City’s social media platforms, the printed City News newsletter, the home page of the City website, and the weekly digital city newsletter, Fremont Connection, to inform Fremont residents and communities about the ongoing charter initiative. City staff also developed and published a dedicated webpage on the City website
(fremont.gov/chartercity) and created A-frame boards with a QR code that directs visitors to that webpage, for use and visibility at the City’s community events and the City Hall lobby. Staff also facilitated discussion of the charter process in conjunction with councilmember townhall meetings and various other community meetings.

Fiscal Impact:

Description Cost
The estimated cost to place a proposed City
Charter on the November 2026 ballot
$610,690 - $854,966
(one-time)
Potential annual cost (estimate) of total
compensation for the Mayor and
Councilmembers, ranging from a ’part-time’ to
a ‘full-time’ HBA scenario
$364-672 - $486,472
per year

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Council Staff Report (ID # 5736) Meeting of June 2, 2026 Updated: 5/29/2026 7:48 AM by Alberto Quintanilla Page 10 Total annual cost (estimate) of 1.5 employees
directly supporting the Mayor and
Councilmembers
$253,655 per year

The net increase to the City’s annual ongoing General Fund expenditures resulting from potential increases to the Mayor’s and Councilmembers’ compensation, and from the allocation of 1.5 employees to staff the Mayor and Councilmembers, is estimated to be $337,214 to $459,014 (depending on the level of HBA increase). Should the City Council decide to place a charter on the November 2026 ballot for consideration by Fremont voters, there may also be unknown additional costs associated with implementing the charter.

The expense for placing a measure on the ballot is calculated by the City’s total registered voters multiplied by the County Registrar of Voters' election cost per registered voter. The Registrar of Voters estimates that the election cost per voter for the November 3, 2026, general election will range between $5 to $7. The City currently has 122,138 registered voters. An estimate of the one-time cost of placing the measure on the 2026 ballot ranges from $610,690 to $854,966.

Environmental Review: Not applicable.

ATTACHMENTS:
• RecommendationsSummary_CharterAdvisoryCommittee
• Draft City of Fremont Charter
• Attachment B Cities Survey
• First Public Hearing_City Charter Presentation

Recommendation:

1. Receive the staff report,

2. Conduct a first public hearing,

3. Provide direction to staff on the draft city charter, including whether the City Council approves the draft city charter for the November 2026 ballot.

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1 CHARTER ADVISORY COMMITTEE RECOMMENDATIONS

Background
On February 17, 2026, the Fremont City Council approved a referral submitted by Vice Mayor Yajing Zhang to consider transforming the City of Fremont (“City”) from a general law city to a charter city and direct staff to initiate the process for preparing a new City Charter. On March 3, 2026, the Fremont City Council directed City staff to initiate a process for the development of a City Charter in time to place on the November 2026 election ballot. The Council approved a City Charter work plan that included the following topics for consideration.

The City Council’s approval of the work plan also established a seven-member, Mayor-appointed Charter Advisory Committee (“Committee”). Subsequently, on March 20, 2026, the City Council approved Mayor Raj Salwan’s appointment of seven community members to the Committee. The work plan contemplated six Committee meetings from March 23, 2026, to April 27, 2026, to formulate recommendations on the work plan topics for the City Council’s consideration.

Overview of Committee Actions/Recommendations
Over the course of its prescribed meetings, the Committee received staff presentations and discussed the work plan topics . Ultimately, the Committee reached a consensus on work plan topics and made the following recommendations:
• Government Structure
The Committee received a staff presentation regarding forms of government , Fremont’s current form of government, and comparative data regarding this topic.

COMMITTEE RECOMMENDATION: Maintain a Council-Manager form of government (Charter City)

• Term Limits
The Committee received comparative data regarding term limits.

COMMITTEE RECOMMENDATION:
o City Council Term Limits: Increase to three consecutive four-year terms

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Attachment: RecommendationsSummary_CharterAdvisoryCommittee (5736 : First Public Hearing of City Charter Consideration)

2 o Mayor Term Limits: Increase to three consecutive four-year terms

• Council Compensation and Office Support
The Committee received a staff presentation, including market analysis of Mayor/City Council compensation and what compensation adjustments are permitted under general law versus requiring a Charter.

COMMITTEE RECOMMENDATION:

o Status: The Mayor and City Council to maintain their current part-time status. o Council Salary: Match the Health Benefit Allowance (HBA) of elected officials to that of the City’s full-time represented employees.
o Staffing Options: Allocate 1.5 employees to support the Mayor and City Council

• Executive Roles
The Committee received a staff presentation regarding appointment authority, including comparative data, Fremont’s current structure/practices, and executive recruiter perspectives.

COMMITTEE RECOMMENDATION:

o Appointment Authority: City Manager maintains appointment authority subject to confirmation by the City Council.

Estimated Fiscal Impact
Description Cost
The estimated cost to place a proposed City Charter on the November 2026 ballot
$610,690 - $854,966
(one-time)
Total annual cost (estimate) of total compensation for the Mayor and Councilmembers, inclusive of a ‘full-time’ HBA scenario $486,472 per year* Total annual cost (estimate) of 1.5 employees directly supporting the Mayor and Councilmembers $253,655 per year*
*The net increase to the City’s annual, ongoing General Fund expenditure is estimated to be $459,014.

The City Council will hold three meetings (two public hearings and one final meeting) to review the Committee’s recommendations and consider submitting the proposed City Charter to Fremont voters in the upcoming November 3, 2026, election. The City Council’s first public hearing will take place during its regularly scheduled meeting on June 2, 2026.

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Attachment: RecommendationsSummary_CharterAdvisoryCommittee (5736 : First Public Hearing of City Charter Consideration) [DRAFT] CITY CHARTER OF THE CITY OF FREMONT
Public Hearing No. 1
June 2, 2026

ARTICLE I. INTRODUCTION

Section 100: Purpose

The purpose of this Charter is to achieve greater city control over municipal affairs and to establish the framework for a responsive, democratic, and efficient government for the City of Fremont. This Charter outlines the powers, structure, and responsibilities of the City’s government, ensuring accountability to the residents while promoting effective governance.

Section 101: Name and Boundaries

The City of Fremont (“City”) is a chartered municipal corporation of the State of California under the name of “City of Fremont.” The territory of the City shall be that contained within its boundaries as now established, with the power and authority to change the same in the manner provided by law.

ARTICLE II. SUCCESSION PROVISIONS

Section 200: Rights and Labilities

The City shall continue to own, possess and control all rights and property of every kind and nature, owned, possessed or controlled by it at the time this Charter takes effect and shall be subject to all of its debts, obligations and liabilities.

Section 201: Continuation of Laws and Contracts

All ordinances, codes, resolutions, rules, regulations, and portions thereof, and all City contracts duly executed and in force at the time this Charter takes effect, and not in conflict or inconsistent with this Charter, shall continue in force until such time they are duly repealed, amended, changed, or superseded by proper authority as provided by this Charter.

Section 202: Continuation of Present Officers and Employees

Subject to the provisions of this Charter, the present officers and employees of the City shall continue to perform the duties of their respective offices and employments under the same conditions as those of the existing offices and positions until the election or appointment and qualification of any successors, subject to such removal and control as provided in this Charter or applicable law.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 2 of 8 ends

Section 203: Continuation of Pending Actions

No action or proceeding, whether administrative, civil or criminal, pending at the time this Charter takes effect, brought by or against the City or any officer, office, department or agency thereof, shall be affected or abated by the adoption of this Charter or anything herein contained.

ARTICLE III. POWER AND STRUCTURE

Section 300: Powers of City

The City shall have the full power and authority to make and enforce all laws and regulations with respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter and in the Constitution of the State of California (“State”). It shall also have the power to exercise, or act pursuant to, any and all rights, powers, privileges or procedures, heretofore or hereafter established, granted or prescribed by any law of the State, by this Charter, or by other lawful authority, or which a municipal corporation might or could exercise, or act pursuant to, under the Constitution of the State or federal law. The enumeration in this Charter of any particular power shall not be held to be exclusive of, or any limitation upon, this general grant of power. The City shall have the power and may act pursuant to any procedure established by any law of the State, unless a different procedure is established by this Charter or by ordinance.

Section 301: Form of Government

The municipal government established by this Charter shall continue to be the "Council- Manager" form of government as established by the Fremont Municipal Code at the time that this Charter takes effect and by the laws of the State of California. The City Council shall establish City policy, and the City Manager shall carry out that policy on the terms set forth herein or by other lawful authority.

ARTICLE IV. MAYOR AND COUNCIL

Section 400: General Powers and Duties

All powers of the City shall be vested in the City Council subject to the express limitations of this Charter. The City Council shall provide for the exercise of all City powers and the performance of all duties and obligations imposed on the City by state and federal laws. Except as otherwise required by law, the role of the City Council is legislative and includes the power to set policy, approve contracts and agreements, and undertake other rights and obligations consistent with this Charter and the City’s Municipal Code, while deferring to the discretion of the City Manager to choose the appropriate means to achieve the City Council’s policies and goals.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 3 of 8 ends

Section 401: Composition

The City Council shall consist of six (6) members elected by district and one (1) Mayor elected at large. The term "City Council," "Council," "legislative body," or other similar terms as used in this Charter or any other provision of law shall be deemed to refer to the collective body composed of the Mayor and six City Council members unless another provision of this Charter or other law expressly provides to the contrary.

Section 402: Term of Offices

The term of office for the Mayor and each Councilmember shall be four years.

Section 403: Term Limits

The term limits set forth in this section of the Charter shall supersede any conflicting provision in the municipal code.

(a) No Mayor who has served terms comprising twelve consecutive years as mayor shall be qualified for further service in that office until he or she has a break in service in that office of at least four years.

(b) No Councilmember who has served terms comprising twelve consecutive years as a Councilmember shall be qualified for further service in that office until he or she has a break in service in that office of at least four years.

(c) The term limits imposed by this section shall not prevent a person who is disqualified from serving as Mayor from serving as a councilmember or a person who is disqualified from serving as a Councilmember from serving as Mayor. However, any person who has served terms comprising twenty-four consecutive years in the offices of the Mayor and the City Council shall be disqualified from further service in either office until that person has a break in service from both offices of at least four years.

(d) Time spent in office while serving less than a full term shall not be counted in computing consecutive years in any office.

(e) Time spent in office prior to the enactment of the Charter shall not be counted in computing consecutive years in any office.

(f) In computing the number of years served in office, full, four-year terms shall count as four years of service even if the period encompassed by such terms may not be exactly four years in duration.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 4 of 8 ends

Section 404: Compensation for Mayor and Members of City Council

Compensation in the form of salary and benefits for the Mayor and City Council members shall be established by ordinance. Adjustments in compensation shall take into consideration a survey of comparable cities within the region. Any increase to the councilmembers’ salaries shall become effective only upon commencement of a new council term of office following adoption of an ordinance authorizing the increase. Any increase to the mayor’s additional compensation (the amount that exceeds the councilmembers’ salary amount) shall become effective as set forth in the ordinance adopting the increase. The Mayor and Council members shall receive reimbursement for actual and necessary expenses incurred in the performance of their duties of office in accordance with established City policy.

Section 405: City Council Staff

The City Council may authorize the retention of administrative staff to assist the Mayor and City Council in the performance of their duties. The title(s), compensation, and terms of employment of such employees shall be established by ordinance or resolution of the City Council.

ARTICLE V . CITY MANAGER

Section 500: Appointment

The Office of the City Manager shall continue as established under Chapter 2.10 of the Fremont Municipal Code except as set forth in this Charter. There shall be a City Manager who shall be appointed by the City Council. The City Manager shall be selected solely on the basis of executive and administrative qualifications. The City Manager shall serve at the pleasure of the City Council.

Section 501: Powers and Duties

The City Manager shall be head of the administrative branch of the City government. The City Manager shall be responsible to the City Council for the proper administration of all affairs of the City. In addition to the general powers as administrative head, and not as a limitation thereon, the City Manager shall have the following powers and duties:

(a) Enforcement of Laws. To see that all laws and ordinances of the City are duly enforced and that all franchises, permits and privileges granted by the City are faithfully observed.

(b) Command of Officers and Employees. Except as otherwise provided in this Charter, to control, order and give direction to all heads of departments, and to subordinate officers and employees of the City through their department head; to transfer employees from one department to another; and to consolidate or combine offices, positions, departments, or units under the City Manager’s direction.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 5 of 8 ends

(c) Appointment, Removal, and Powers Over Certain Officers. Except as otherwise provided in this Charter, to appoint all heads or directors of departments of the City and all subordinate officers and employees with power to discipline and remove any officer or employee so appointed, subject to any civil service rules established by Charter or by ordinance. All officers and employees of the City appointed by the City Manager who are exempt from the civil service may be suspended or removed at the pleasure of the City Manager. Except for the purpose of inquiry, the Council and its members shall deal with the administrative service solely through the City Manager, or City Attorney for legal matters, and neither the Council nor any member thereof shall give orders to any of the subordinates of the City Manager or City Attorney, either publicly or privately.

(d) Representation of City. To represent the City in its negotiations and working relationships with the state, the county, and other governmental jurisdictions; provided, that any contracts negotiated for the exchange of services from any such other governmental jurisdiction shall be subject to approval by the City Council.

(e) Attendance at Council Meetings. To attend all meetings of the City Council unless excused therefrom by the City Council.

(f) Recommend Ordinances. To recommend to the City Council for adoption such measures or ordinances as he/she deems necessary or expedient.

(g) Advise on Finances. To keep the City Council at all times fully advised as to the financial conditions and needs of the City.

(h) Preparation of Budget. To prepare and submit the proposed annual budget and the proposed annual salary plan to the City Council for its approval.

(i) Purchase of Supplies. To purchase all the supplies for all of the departments or divisions of the City. No expenditures shall be submitted or recommended to the City Council except on report or approval of the City Manager.

(j) Investigations of City Affairs. To make investigations into the affairs of the City or any department or division thereof and any contract for the proper performance of any obligations running to the City.

(k) Investigation of Complaints. To investigate all complaints in relation to matters concerning the administration of the City government and in regard to the service maintained by public utilities in the City, and to see that all franchises, permits, and privileges granted by the City are faithfully performed and observed.

(l) Supervision of Public Property. To exercise general supervision over all public buildings, public parks, and all other public property which are under the control and jurisdiction of the City Council.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 6 of 8 ends

(m) Devotion of Entire Time to Duties. To devote full time to the duties of the office of City Manager and the interest of the City.

(n) Performance of Delegated Duties. To perform such other duties and exercise such other powers as may be delegated to the City Manager from time to time by ordinance or resolution or other action of the City Council.

(o) Attendance at Commission and Board Meetings. To attend any and all meetings of any commissions or boards heretofore or hereafter created by the City Council upon direction of the City Council or as determined necessary by the City Manager.

(p) Delegation of Council Authority. To approve, on behalf of the City, administrative matters otherwise within the authority of the City Council which the City Council has by resolution or other legal authority authorized to be approved by the City Manager or the City Manager’s designee during a scheduled recess of the City Council.

ARTICLE VI. OFFICERS AND EMPLOYEES

Section 600: Officers of the City

The officers of the City of Fremont shall consist of the City Council, a City Manager, a City Attorney, a City Clerk, a Chief of Police, a Fire Chief, and directors of Community Development, Community Service, Finance, Human Resources, Human Services, Information Technology, Maintenance, Public Works, and such other subordinate officers, assistants, deputies and employees as the Council may deem necessary to provide by ordinance or resolution.

Section 601: Appointment and Removal

The City Manager and City Attorney shall be appointed by and serve at the pleasure of the City Council. Removal of the City Manager or City Attorney shall be only by a vote of at least four members of the City Council at a regular meeting of the City Council; provided, that the vote of five members of the City Council shall be required to remove a City Manager or City Attorney within 60 days after that officer’s appointment or within the 60 days after any election at which one or more members are elected to the City Council.

Except as otherwise provided in this Charter, all officers and department heads of the City shall be appointed by the City Manager and shall serve at the pleasure of the City Manager. The appointment of an officer or department head by the City Manager shall become effective upon confirmation by the City Council by an affirmative vote of four members taken at a meeting of the City Council.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 7 of 8 ends

ARTICLE VII. CITY ATTORNEY

Section 700: Appointment

The office of City Attorney is hereby established. The City Attorney shall be appointed by and serve at the pleasure of the City Council. To be eligible for appointment as City Attorney, the person appointed shall be an attorney-at-law duly licensed under the laws of the State of California and shall have practiced law for at least five years prior to assuming the duties of City Attorney.

Section 701: Powers and Duties

The City Attorney shall be responsible for the proper administration and operations of the City Attorney’s Office. The City Attorney shall have power and be required to:

(a) Advise the City. Represent and advise the Council and all City officers on all matters of law pertaining to their offices.

(b) Representation of City. Represent and appear for the City in any and all actions and proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee or former City officer or employee in any and all actions and proceedings in which any such City officer or employee is concerned or is a party, for any action arising out of the officer or employee's employment or by reason of the officer or employee's official capacity.

(c) Prosecution of Cases. Prosecute on behalf of the people criminal cases arising from violations of the provisions of this Charter and the ordinances of the City, and prosecute such cases arising from violations of state law when the district attorney consents thereto.

(d) Attendance at Council Meetings. Attend all meetings of the Council and provide advice to the City Council when requested to do so.

(e) Provide Legal Advice. Give advice or an opinion in writing whenever requested to do so by the Council or any of the officers, boards or commissions of the City.

(f) Approve Contracts as to Form. Approve the form of all City contracts and all bonds given to the City, by endorsing an approval thereon in writing.

(g) Prepare Ordinance and Resolutions. Prepare any and all proposed ordinances or resolutions for the City and amendments thereto.

(h) Other Duties. Perform such other duties consistent with this Charter as may be required by the City Council.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration)

Draft Charter, City of Fremont Public Hearing No. 1

Page 8 of 8 ends

ARTICLE VIII. GENERAL PROVISIONS

Section 800: Compliance with State Law

This Charter shall comply with the Constitution of the State of California, and any provisions herein that may conflict with state law shall be deemed superseded by the applicable state statutes. This Charter takes precedence and supersedes any conflicting provision of the Fremont Municipal Code and City ordinances. Provisions of the Fremont Municipal Code and City ordinances not in conflict with this Charter shall remain in full force and effect.

Section 801: Amendments

This Charter may be amended only by majority vote of the electorate in accordance with the procedures of the State Elections Code, as applicable to charter cities.

Section 802: Severability

If any provision of this Charter is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall remain in full force and effect to the fullest extent permitted by law.

Section 803: Effective Date

This Charter shall become effective upon its filing with the Secretary of State following approval by a majority vote of the electorate of the City of Fremont during a regular election held on [date].

Adopted this ____ of ____________, 2026, by the citizens of the City of Fremont.

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Attachment: Draft City of Fremont Charter (5736 : First Public Hearing of City Charter Consideration) Form of Government Overview
1 5.B.c
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Attachment: Attachment B Cities Survey (5736 : First Public Hearing of City Charter Form of Government Overview
2 5.B.c
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Attachment: Attachment B Cities Survey (5736 : First Public Hearing of City Charter Charter City Initiative
JUNE 2, 2026
1 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Introduction/Agenda

1. Receive a Presentation on the following topics :
• City Council Charter Initiative and Work Plan
• City of Fremont: Overview of Current Structure
• General and Charter Cities Overview
• Form of Government: Overview and Comparative Data
• Appointment Authority: Overview and Comparative Data
• Compensation and Staffing: Overview and Comparative Data • Charter Advisory Committee Recommendations

2. Conduct a Public Hearing

3. Deliberate and Provide Direction to Staff
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter Initiative Background
and Approved Workplan
3 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Background – Council Action
• On February 17, 2026, the City Council approved Vice-Mayor Yajing Zhang’s referral to direct staff to initiate the process for preparing a new City Charter for consideration by Fremont voters in November 2026.
4 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Background – Council Action
• On March 3, 2026, the City Council approved the staff recommendation to:

1. Adopt a resolution establishing a seven-member Charter Advisory Committee;

2. Approve preliminary Charter development workplan and direct staff to proceed with implementation; and

3. Announce a call for applications to serve on the Charter Advisory Committee.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Background – Timeline
6 Community engagement
activities to inform the public
and solicit input
March 18 – May 8
City Council’s adoption of Vice
Mayor Zhang’s referral
February 17
City Council’s adoption of a resolution
establishing the Charter Advisory
Committee (CAC) and Workplan
March 3
City Council
Approves the
Mayor’s CAC
Appointments
March 20
CAC conducts meetings to
accomplish the Workplan
March 18 – April 27

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Background – Timeline
7 Completion of CAC’s
Recommendation
Memorandum
April 27
City Council Meeting –
Public Hearing #1
June 2
City Council Meeting –
Public Hearing #2
July 7
City Council Meeting –
Final Vote
July 28
Deadline for Placement
of proposed City Charter
on ballot
August 7

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Background – Workplan
The City Council established the following topics in its Charter Work Plan:
8 Governance Structure:
• Form of Government
• Council Authority
• Meeting Structure
• Council Voting
Executive Roles:
• Executive Authority
• Appointment Authority
Term Limits:
• Council Term Limits
• Mayor Term Limits
Council Compensation
and Office Support:
• Council Salary
• Staffing Options
• Budget Considerations

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City of Fremont:

Overview of Current Structure
9 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City of Fremont – Current Structure
• General Law City: A general law city under the laws of the State of California. • Form of Government: Operates as a Council-Manager form of government where the City Council is responsible for policy decisions and the City Manager is responsible for management of the day-to-day operations of the City.
• Council Composition: Composed of six Councilmembers elected by district and one Mayor elected at-large, serving a four-year term with a two-term limit.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City of Fremont – Current Structure
• City Council Authority: Responsible for setting policy, adopting the budget, approving City legislation, and appointing City Manager and City Attorney. • Mayoral Functions: Mayor is a member of the City Council and votes as such.

Mayor also serves as chair and ceremonial head of the City government. • Council Staffing: The City Council is supported by staff in the City Manager’s Office and City Clerk’s Office.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City of Fremont – Current Structure
Council Compensation:
• Salary: Mayor and Councilmembers receive a monthly salary of $4,623.83 and $2,602.56, respectively.
• Benefits: Elected officials may also receive $455.00 in health benefit allowance and a 7.25%-7.5% contribution to their retirement plan with the City.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of General and Charter Cities:

Overview and Comparative Data
13 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of General Law City and Charter City Overview
14 General Law City
Derive their corporate
powers from general
laws enacted by the
California legislature.
(357 cities)
Charter City
Derive their corporate
powers directly from the
California Constitution,
subject to limitations of their
respective charters and
enactments of the legislature
on matters of statewide
concern. (125 cities)

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter City Overview
• California Constitution: The state constitution authorizes voters to adopt a city charter.
• Charter Drafting: There are two ways to initiate the drafting of a charter:
(1) A city’s voters elect a charter commission to draft a charter, or (2) A city council drafts the charter.
• Fremont Process: The City Council selected the second option. 15 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter City Overview
• City Constitution: A charter operates as a “constitution” for a city. • Home Rule: The “home rule” provision of the California Constitution (art XI, section 5(a)) affirmatively grants charter cities supremacy over “municipal affairs.”
• Impact: This means that a charter city is subject only to conflicting provision in the state of federal constitutions and preemptive state law on matters of statewide concern.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter City Overview
• Municipal Affairs: The California Constitution (art. XI, § 5(b)) provides broad categories of “municipal affairs” that a charter city has supremacy over, including:
(1) The regulation and government of a city police force (2) Subgovernment in all or part of a city
(3) Conduct of city elections
(4) Appointment or election of municipal officers and employees • Courts: Beyond these core functions, the courts determine what constitutes a municipal affair versus a matter of statewide concern on a case-by-case basis.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter City Overview
• Alameda County: Eight cities in Alameda County have adopted a charter, most with a Council-Manager form of government:
18 1. Alameda

2. Albany

3. Berkeley

4. Emeryville

5. Hayward

6. Oakland

7. Piedmont

8. San Leandro
• Charter length ranges from 2 pages (Emeryville) to 121 pages (Oakland).

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter City Overview
• Common Reasons for Charter Adoption:
(1) Special local conditions create needs that cannot be adequately met by the general laws (e.g., power to implement a real property transfer tax) (2) To tailor the organization and elective offices to address unique local needs (e.g., establish local elections rules, change form of government) (3) Free themselves from the requirements of some California general laws (e.g., establish council salaries different from Gov. Code requirements). 19 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government:

Overview and Comparative Data
20 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
Data on Governance Models for California Cities:
• 482 incorporated cities in California
• 357 general law cities
• 125 charter cities
(Source: California State Controller’s Office)
• 98% of cities operate under a Council-Manager form of government. • Five cities operate as a Strong Mayor or Mayor-Council form of government:
• Los Angeles, San Diego, San Francisco, Oakland, and Fresno. 21 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
Council-Manager Form of Government:
• City Council has the authority to set policy, appoint a city manager to execute council policy, and appoint certain city officials (e.g., city attorney and city clerk).

Note: In a general law city, city councils are empowered to appoint city officers, including the city manager, the city attorney, the city treasurer, the city clerk, the police chief, and the fire chief, among others.
22 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 23 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 24 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
Strong Mayor Government:
• Political and administrative authority is concentrated in the Mayor.

Mayor is a full-time position with authority to hire a city administrator, hire many department heads, present a budget to the city council, and has veto power over city council legislation.
25 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 26 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
Mayor-Council Government:
• This is a shared power structure. Mayor and City Council share governing authority over appointment of officers and personnel, legislation, and budget. The mayor may have authority to appoint chief administrative officer and staff for the mayor and city council, but subject to confirmation by the city council.
27 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 28 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
29 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
30 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Form of Government Overview
Variation of Form:
• San Bernardino, CA: Mayor presides over the meeting with no voting authority. Mayor serves as a tie-breaking vote and may veto an item approved by fewer than five votes.
• Long Beach, CA: Mayor may deliberate at City Council meetings and has veto power over legislation.
• Alameda, CA: Mayor may take command of the Police and Fire Departments and govern by proclamation during an emergency. 31 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City Council Appointment Authority:

Overview and Comparative Data
32 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City Council Appointment Authority
33 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Mayor-Council Appointment Authority
34 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of City Council Appointment Authority
(Charter Cities – 25 City Survey)
35 In the surveyed charter cities with a Council-Manager form of government:
• 38% appoint the City Manager and City Attorney (similar to Fremont). • 20% also appoint City Clerk.
• 28% also appoint a City Treasurer/Auditor.
• One City authorizes appointment of all department heads (Piedmont). * Note: Some cities authorize their city councils to confirm department heads. 58%

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Key Considerations
36 Key considerations regarding additional appointment authority for the City Council:
• May result in shared sense of investment and accountability in appointment decisions.
• May provide sense of greater public trust in City leadership and appointment decisions.
• Appointment decisions may be guided by political influence instead of merit/qualifications.
• May impact recruiting and result in fewer qualified candidates.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Executive Recruiter Feedback
• Across California cities, City Council engagement in additional appointments uncommon
• Reduces candidate pool because it signals a shift away from Council/Mgr form of government, which top candidates seek
• When Council confirmation exists, it's seen more as ratification of a hiring decision
• Many cities have informal processes for informing and seeking input from Mayor/City Council regarding key appointments
37 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Compensation and Staffing:

Overview and Comparative Data
38 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of General Law City Council Salary Limitations
California Government Code Section 36516.
…..
(E)
In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month
…..
(4)
The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5) No ordinance shall be enacted or amended to provide automatic future increases in salary. 39 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Fremont Compensation Structure
• The Fremont Municipal Code 2.05.060 governs current salaries and compensation increases for Fremont City Councilmembers and the Mayor.
• California Government Code Section 36516 authorizes city councils, via ordinance, to set salaries and salary increases.
• California Government Code Section 36516.1 authorizes city councils, via ordinance, to authorize additional compensation for the mayor in addition to the base councilmember salary.
40 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Fremont Compensation Structure
41 Fremont Municipal Code: Compensation increases shall be reviewed during each budget cycle and increases shall be considered commensurate with the Consumer Price Index – All Urban Consumers, San Francisco-Oakland-Hayward Metropolitan Area in an amount not to exceed four percent. Any increase to the councilmembers’ salaries shall become effective only upon commencement of a new council term of office following adoption of an ordinance authorizing the increase. Any increase to the mayor’s additional compensation (the amount that exceeds the councilmembers’ salary amount) shall become effective as set forth in the ordinance adopting the increase.

Last City of Fremont Official Pay Increase: 7.2% (annualized at 3.1% per year) enacted on December 10, 2024
Next City of Fremont Official Pay Increase: Consideration in 2026 for possible December 2026 Implementation

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Compensation Considerations
42 Total Compensation: All forms of compensation inclusive of salary, health benefits, and all other benefits with financial value are included in analysis Regional Markets: Focus on comparative agencies within same region to align cost of living and community factors
Part-time vs. Full-time: These are practical descriptions and are not legal definitions.

Typical features of a “part-time” council or mayoral position include the ability for that official to maintain additional outside employment and lower levels of pay.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Key Considerations for Compensation

POTENTIAL ADVANTAGES OF FULL-TIME

PAID COUNCIL AND MAYOR
-Full pay may align better with community
expectations and workload/time
commitment demands of the position
-Full time pay may broaden the pool of
potential candidates by reducing economic
barriers to achieving office
-Full-time pay may allow representatives to
focus more (or all) of their time on the work
of the elected body

POTENTIAL DISADVANTAGES OF FULL-

TIME PAID COUNCIL AND MAYOR
-Creating an economic incentive to achieve
and maintain office may create a permanent
political class of representatives in the future
-Future representatives, dependent upon
maintaining a salary, may act to preserve that
economic benefit, to the exclusion of long-
term good governance
-Full-time assignment would suggest that
representatives may not maintain concurrent
outside employment, limiting some types of
candidates

43 For further reading: Stanford Law Review – Compensating City Councils (review.law.stanford.edu/wp- content/uploads/sites/3/2018/03/70-Stan.-L.-Rev.-839.pdf)

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter Cities Surveyed for Comparison
Alameda
Albany
Berkeley
Emeryville
Hayward
Mountain View
Oakland
Palo Alto

Piedmont
Richmond
San Jose
San Leandro
San Mateo
Santa Clara
Santa Rosa
Sunnyvale
Vallejo
44 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 45 Survey Summary and Cost Implications
Modeled Group Median Compensation Annual Cost Implications of Model (applied to 6 CMs)
All Surveyed Agencies $59,320 ($135,757)
Part Time Agencies Only $51,992 ($91,783)
Full Time Agencies Only $147,392 ($664,185)
Current Fremont Compensation $36,694 N/A
Modeled Group Median Compensation Annual Cost Implications of Model
All Surveyed Agencies $70,017 ($9,067)
Part Time Agencies Only $63,863 ($2,914)
Full Time Agencies Only $254,940 ($193,990)
Current Fremont Compensation $60,949 N/A
Councilmember
Mayor

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Fremont Compensation Structure
46 Elected Position Monthly Salary Monthly
Benefits
Monthly Total
Compensation
Annual Total
Compensation
Fremont Mayor $4,624
$455 $5,079 $60,949
Fremont Councilmember $2,603 $455 $3,058 $36,694
Fremont Municipal Code: Health Benefit Allowance is not regulated by State Law. The City Council could adjust its current HBA via resolution under existing law/structure.

Current City of Fremont represented full-time employee HBA: $2,900/month Annual value of adjusting HBA to align with full-time COF represented employees: $29,340/year

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 47 Potential HBA Increase (Part-Time)
Elected Position Monthly Salary Monthly
Benefits
Monthly Total
Compensation
Annual Total
Compensation
Fremont Mayor $4,624 $455 $5,079 $60,949
Fremont Councilmember $2,603 $455 $3,058 $36,694
Current:

If Mayor and Councilmembers receive HBA benefit commensurate with the City of Fremont’s ‘part-time’ employees:

Elected Position Monthly Salary Monthly
Benefits*
Monthly Total
Compensation
Annual Total
Compensation
Median Total
Compensation-
Part-Time Cities
Fremont Mayor $4,624 $1,450* $6,074 $72,886 $63,863
Fremont
Councilmember $2,603 $1,450* $4,053 $48,631 $51,992
*This reflects 50 percent of the monthly HBA amount for the ‘full-time’ City of Fremont employees.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of 48 Potential HBA Increase (Full-Time)
Elected Position Monthly Salary Monthly
Benefits
Monthly Total
Compensation
Annual Total
Compensation
Fremont Mayor $4,624 $455 $5,079 $60,949
Fremont Councilmember $2,603 $455 $3,058 $36,694
Current:

If Mayor and Councilmembers receive HBA benefit commensurate with the City of Fremont’s ‘full-time’ employees:

Elected
Position
Monthly
Salary
Monthly
Benefits
Monthly Total
Compensation
Annual Total
Compensation
Median Total
Compensation –
Full-Time Cities
(only 3 in survey)
Median Total
Compensation –
All Surveyed Cities
Fremont Mayor $4,624 $2,900 $7,524 $90,286 $254,940 $70,017 Fremont
Councilmember $2,603 $2,900 $5,503 $66,031 $147,392 $59,320

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Legal Limitation for HBA Increase
49 • Under State law, the HBA for a part-time elected official may only be increased commensurate with the equivalent part-time employee HBA rate.
• City Council may define ‘part-time’ as a percentage and recommend an HBA increase to match that percentage (i.e., if part-time is defined as 75%, an HBA equal to 75% of the full- time employee rate is permitted).

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Staffing Survey*
Agency Pop. Position Title Top of Range
Salary**
# of Budgeted
Positions
City of San Jose*** 990,138
Administrative Assistant $100,900 2
Executive Assistant $109,894 9
Principal Office Specialist $90,679 1
Secretary to Mayor $105,574 1
Senior Office Specialist $81,485 2
Staff Specialist $100,900 1
50 * Survey results are displayed for Cities with apparent direct staff budgeted to elected officials in published budget documents.
** Salary range only. Total compensation typically includes additional 30%-40% benefit load/expense. *** Council aids are not included in City of San Jose published document but would be accounted for in a more comprehensive staffing survey.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Staffing Survey*
Agency Pop. Position Title Top of Range
Salary**
# of Budgeted
Positions
City of Oakland 439,418
Council Admin Assistant $84,033 5.5
Council Assistant $130,362 16.4
Exec Asst to the City Council $118,290 1
Special Asst. to Mayor III $245,912 12
City of Berkeley 120,257
Assistant to Mayor $170,895 4
Legislative Aid $153,586 19
City of Santa Clara 130,256
Assistant to City Manager $274,020 1
Assistant to Mayor & Council $165,412 1
Management Analyst $167,957 1
51 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Staffing Survey*
Agency Pop. Position Title Top of Range
Salary**
# of Budgeted
Positions
City of Richmond 115,505
Administrative Analyst $109,315 2
Administrative Assistant $99,831 1
Associate Management Analyst $144,508 1
Executive Assistant I $91,274 1
Project Coordinator $158,959 1
52 * Survey results are displayed for Cities with apparent direct staff budgeted to elected officials in published budget documents.
** Salary range only. Total compensation typically includes additional 30%-40% benefit load/expense.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Staffing Survey*
Agency Pop. Position Title Top of Range
Salary**
# of Budgeted
Positions
City of San Leandro 87,826 Administrative Assistant II $95,968 1 City of Vallejo 124,268 Executive Assistant to the
Mayor $88,568 1
City of Alameda 77,238 Principle Executive Assistant $121,700 .5 53 * Survey results are displayed for Cities with apparent direct staff budgeted to elected officials in published budget documents.
** Salary range only. Total compensation typically includes additional 30%-40% benefit load/ expense.

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Charter Advisory Committee Recommendations
54 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Workplan
The Charter Advisory Committee developed recommendations on Work Plan topics:
55 Governance Structure:
• Form of Government
• Council Authority
• Meeting Structure
• Council Voting
Executive Roles:
• Executive Authority
• Appointment Authority
Term Limits:
• Council Term Limits
• Mayor Term Limits
Council Compensation
and Office Support:
• Council Salary
• Staffing Options
• Budget Considerations

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Governance Structure
Committee Recommendation:
• Maintain a Council-Manager form of government
operating under a city charter.
• Mayor and City Council to maintain their
current part-time status.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Executive Roles
Committee Recommendation:
• City Manager maintains appointment authority
over department heads (except for City Attorney),
subject to confirmation by the City Council.
57 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Council Compensation and Office Support
Committee Recommendation:
• Match the Health Benefit Allowance (HBA) of elected
officials to that of the City’s full-time represented
employees.
• Allocate 1.5 employees to support the Mayor
and City Council.
58 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Term Limits
Committee Recommendation:
• City Council: Increase the term limit to
three consecutive four-year terms.
• Mayor: Increase the term limit to three
consecutive four-year terms.
• Currently, the offices of Mayor and Council
have a two-term limit each.
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Implementation of Recommendations
Implementation Options: Each of the Charter Advisory
Committee’s recommendations can be implemented by:

1. Adoption of City ordinances under existing general law authority, or

2. Adoption of City charter.
60 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Fiscal Impact
Description Cost
Estimated cost to place a proposed City Charter on the November 2026 ballot $610,690 - $854,966 (one- time)
Potential annual cost (estimate) of total compensation for the Mayor and Councilmembers, ranging from a ‘part-time’ to a ‘full-time’ HBA scenario $364-672 - $486,472
per year*
Total annual cost (estimate) of 1.5 employees directly supporting the Mayor and Councilmembers $253,655 per year*
61 *The net increase to the City’s annual, ongoing General Fund expenditure is estimated to be $337,214 to $459,014

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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of Next Steps

1. Council Questions for Staff;

2. Open the Public Hearing;

3. Close the Public Hearing;

4. Council Comments; and

5. Council Direction.
62 5.B.d
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Attachment: First Public Hearing_City Charter Presentation (5736 : First Public Hearing of

Fremont City CouncilJune 2, 2026

Fremont City Council
June 2, 2026