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 # 5780) DOC ID: 5780
Updated: 7/1/2026 5:24 PM by Alberto Quintanilla Page 1 Professional Engineers & Technicians Association MOU - Consideration of a Resolution Approving a Successor Memorandum of Understanding with the Professional Engineers & Technicians Association (PETA) 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 Professional Engineers & Technicians Association (PETA) for a three-year successor Memorandum of Understanding (MOU). The bargaining unit is made up of 35 members. The proposed MOU incorporates compensation increases, health-benefit allowance increases, and modifications and enhancements to the liquidation of general leave for current employees. All other substantive provisions of the MOU remain unchanged.
Background: The City’s current MOU with PETA expires on June 30, 2026.
The City’s negotiating team met and conferred with PETA representatives and reached a Tentative Agreement on June 25, 2026. The City received notice that PETA members ratified the Tentative Agreement on June 25, 2026. 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 the 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 # 5780) Meeting of July 7, 2026 Updated: 7/1/2026 5:24 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.
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).
Council Staff Report (ID # 5780) Meeting of July 7, 2026 Updated: 7/1/2026 5:24 PM by Alberto Quintanilla Page 3
3. Liquidation of General Leave:
The maximum liquidation limit will be increased from 40 to 60 hours and a new 15-18 years of service tier will be added to provide equity of this benefit with other miscellaneous non-safety bargaining groups.
Years of
Service
Maximum
Accruable
Leave
75%
Qualifying
Balance
Maximum
Liquidation
Limit
15-18 396 Hours 297 Hours 40 Hours
19+ 396 Hours 297 Hours 60 Hours
Fiscal Impact:
1. Compensation Increase:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $167,057 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $339,126 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $516,356
2. Health Benefit Allowance:
a) Fiscal Year 2026/27 Anticipated Fiscal Impact: $407,489 b) Fiscal Year 2027/28 Anticipated Fiscal Impact: $834,178 c) Fiscal Year 2028/29 Anticipated Fiscal Impact: $853,378
3. Leave Liquidation Enhancement:
a) Fiscal Year 2027/28 Anticipated Fiscal Impact: $8,549 b) Fiscal Year 2028/29 Anticipated Fiscal Impact: $12,031
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.
ATTACHMENTS:
• PETA Resolution 2026
Council Staff Report (ID # 5780) Meeting of July 7, 2026 Updated: 7/1/2026 5:24 PM by Alberto Quintanilla Page 4 Recommendation: Adopt a resolution approving the tentative agreement reached with the Professional Engineers & Technicians Association (PETA) 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.