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 # 5781) DOC ID: 5781
Updated: 7/1/2026 5:25 PM by Alberto Quintanilla Page 1 Fremont Association of Management Employees MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Fremont Association of Management Employees (FAME)
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 Fremont Association of Management Employees (FAME) for a three-year successor Memorandum of Understanding (MOU). The bargaining unit is made up of 123 members. The proposed MOU incorporates compensation increases, health-benefit allowance increases, and market equity adjustments for positions identified to be out-of-market. All other substantive provisions of the MOU remain unchanged.
Background: The City’s current MOU with FAME expires on June 30, 2026.
The City’s negotiating team met and conferred with FAME representatives and reached a Tentative Agreement on June 26, 2026. The City received notice that FAME 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 MOU provisions 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 # 5781) Meeting of July 7, 2026 Updated: 7/1/2026 5:25 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 Communications Manager, Deputy Fire Chief, and Public Safety Communications Manager
ii. 2.0% for Permit Center Manager and Senior Plan Check Professional
iii. 3.0% for Fire Marshal and Police Records Administrator
b) Effective the first full pay period in July 2027:
i. 1.0% for Communications Manager, Deputy Fire Chief,
Permit Center Manager and Senior Plan Check Professional ii. 2.0% for Police Records Administrator
iii. 3.0% for Fire Marshal
c) Effective the first full pay period in July 2028:
i. 1.0% for Deputy Fire Chief, Permit Center Manager and Senior Plan Check Professional
ii. 2.0% for Fire Marshal and Police Records Administrator
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).
Council Staff Report (ID # 5781) Meeting of July 7, 2026 Updated: 7/1/2026 5:25 PM by Alberto Quintanilla Page 3
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).
Fiscal Impact:
1. Compensation Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $736,155 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $1,494,395 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $2,275,381
2. Health Benefit Allowance Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $72,426 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $211,747 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $343,706
3. Market Equity Increases:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $35,087 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $62,368 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $86,071
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:
• FAME Resolution 2026
Recommendation: Adopt a resolution approving the tentative agreement reached with the Fremont Association of Management Employees (FAME) 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.