Fremont City Council Meeting: 07/07/26 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5785) DOC ID: 5785
Updated: 7/1/2026 5:35 PM by Alberto Quintanilla Page 1 City of Fremont Employee Association MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the City of Fremont Employee Association (CFEA)
Contact Persons:
Name: Tina Gallegos Brian Stott
Title: Human Resources Director Assistant City Manager
Div/Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: In June 2026, the City of Fremont (City) reached a tentative agreement with the City of Fremont Employee Association (CFEA) for a three-year successor Memorandum of Understanding (MOU). The bargaining unit is made up of 259 members. The proposed MOU incorporates compensation increases, health-benefit allowance increases, enhanced tuition reimbursement allowance, market equity adjustments for positions identified to be out-of-market, and language modifications related to meal periods and parental leave. All other substantive provisions of the MOU remain unchanged.
Background: The City’s current MOU with CFEA expires on June 30, 2026.
The City’s negotiating team met and conferred with CFEA representatives and reached a Tentative Agreement on June 26, 2026. The City received notice that CFEA members ratified the Tentative Agreement on June 29, 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 changes to provisions of the MOU include:
1. Employee Compensation:
General Salary Increases (GSI):
a) The salaries for the classifications listed in Appendix A of this MOU shall be increased by 3% effective the start of the first full pay period in July 2026.
Council Staff Report (ID # 5785) Meeting of July 7, 2026 Updated: 7/1/2026 5:35 PM by Alberto Quintanilla Page 2 b) The salaries for the classifications listed in Appendix A of this MOU shall be increased by 3% effective the start of the first full pay period in July 2027.
c) The salaries for the classifications listed in Appendix A of this MOU shall be increased by 3% effective the start of the first full pay period in July 2028.
Market Equity Increases:
Based on the City’s market survey, the salaries assigned to the following classifications shall be increased by the amounts indicated below:
a) Effective the first full pay period in July 2026:
i. 1.0% for Buyer, Executive Assistant, Police Records
Supervisor, Senior Code Enforcement Officer, and Tiny
Tots Specialist.
ii. 2.0% for Hazardous Materials Inspector and Veterinary Technician.
iii. 3.0% for Economic Development Specialist and Fire
Prevention Inspector.
iv. 4.0% for Senior Hazardous Materials Inspector.
b) Effective the first full pay period in July 2027:
i. 1.0% for Buyer, Executive Assistant, and Hazardous
Materials Inspector.
ii. 2.0% for Veterinary Technician.
iii. 3.0% for Economic Development Specialist and Fire
Prevention Inspector.
iv. 4.0% for Senior Hazardous Materials Inspector.
c) Effective the first full pay period in July 2028:
i. 1.0% for Hazardous Materials Inspector.
ii. 2.0% for Economic Development Specialist and Veterinary Technician.
iii. 3.0% for Fire Prevention Inspector and Senior Hazardous Materials Inspector.
2. Health Benefit Allowance:
Council Staff Report (ID # 5785) Meeting of July 7, 2026 Updated: 7/1/2026 5:35 PM by Alberto Quintanilla Page 3 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. Tuition Reimbursement:
a) The maximum reimbursement shall increase by $2,000, for a total of $4,000 per employee per fiscal year. The bargaining unit’s maximum of $30,000 per fiscal year remains unchanged.
Fiscal Impact:
1. Compensation Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $926,637 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $1,881,073 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $2,864,142
2. Health Benefit Allowance Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $126,427 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $363,848 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $574,174
3. Market Equity Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $53,222 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $100,467 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $140,259
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 Council Staff Report (ID # 5785) Meeting of July 7, 2026 Updated: 7/1/2026 5:35 PM by Alberto Quintanilla Page 4 specified in CEQA Guidelines Section 15061(b)(3), each as a separate and independent basis for CEQA compliance.
Links: None.
ATTACHMENTS:
• CFEA Resolution 2026
Recommendation: Adopt a resolution approving the tentative agreement reached with the City of Fremont Employee Association (CFEA) 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.