DATE: October 7, 2025
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt Resolutions to Execute the following Side Letter of Agreements between the City of Hayward and the Hayward Fire Chiefs ’ Association ( “HFCA”):
Voluntary Employee Beneficiary Association ( VEBA) Plan Side Letter of Agreement; Memoranda of Understanding (MOU), Section 12.01 Fire Education Incentive Program Side Letter of Agreement ; MOU, Sections 13.06 and 13.07 Emergency Medical Technician (EMT) Certifi cation/Emergency Medical Technician Paramedic (E.M.T.P.) Side Letter of Agreement
RECOMMENDATION
That the Council adopts the resolution s (Attachments II, III, and IV) for the side letter of agreements amending Hayward Fire Chiefs’ Association (HFCA) VEBA participation p; MOU, Section 12.01 Fire Education Incentive Program ; MOU, Section 13.06 Emergency Medical Technician (EMT) Certifica tion; and MOU, Section 13.07 Emergency Medical Technician Paramedic Certification (E.M.T.P.).
BACKGROUND
A recent review of the MOU between the City and the HFCA, covering the contract term from July 1, 2024, through June 30, 2029, identified several discrepancies requiring updates.
Specifically, revisions are needed to the VEBA side letter of agreement, an extension of th e Education Incentive coverage period beyond the current contract, and the removal of expired language related to Paramedic Pay.
The update to the VEBA side letter of agreement is required to ensure compliance with IRS rules. Th e City has also identified discrepancies in MOU Section 12.01 (Fire Education Incentive Program), Section 13.06 (Emergency Medical Technician Certification), and Section
13.07 (Emergency Medical Technician Paramedic Certification). These appear to be oversights, as the original intent was to update the language during the most recent contract negotiations for the term July 1, 2024, through June 30, 2029. To address this, the City proposes correcting these provisions to ensure that eligible HFCA members are not negatively impacted upon retirement.
DISCUSSION
The City and the Union have met and discussed in good faith and agree to amend the VEBA side letter of agreement, MOU, Section 12.01 Fire Education Incentive Program, to retroactively cover the period beginning July 1, 2007, thr ough June 30, 2024, and extends through the duration of the current MOU period of July 1, 2024, through June 30, 2029. MOU, Section 13.06 Emergency Medical Technician (EMT) Certification, and MOU, Section 13.07 Emergency Medical Technician Paramedic Certification (E.M.T.P.), for the current MOU period of July 1, 2024, through June 30, 2029.
The VEBA side letter of agreement between the City of Hayward and HFCA allows eligible employees to accumulate funds in a tax -exempt trust to pay qualified medical exp enses, including certain post-retirement benefits. The City does not contribute to employee VEBA accounts. This amendment updates the side letter to accurately reflect the current provisions for required enrollment and participation, in compliance with IRS rules.
The side letter of agreement between the City of Hayward and HFCA amends MOU Se ction
12.01 (Fire Education Incentive Program) to retroactively cover the period from July 1, 2007, through June 30, 2024, and extends through the current MOU term of J uly 1, 2024, through June 30, 2029. Previous versions of this section tied the education benefit to years of service with the City, a structure that did not meet the requirements for special compensation under CalPERS regulations. In 2024, the language was amended to remove the years -of-service component; however, the amendment did not specify retroactive application. This side letter corrects that oversight to ensure that retiring members have all eligible compensation appropriately counted toward their retirement income.
The side letter of agreement between the City of Hayward and HFCA amends MOU Section 13.06 (Emergency Medical Technician Certification) and Section 13.07 (Emergency Medical Technician Paramedic Certification). The current MOU does not acc urately reflect the agreement reached effective July 1, 2018, to roll the special pay fo r eligible employees with EMT and/or E.M.T.P. certification into base salary, with no separate special pay provided. No member of the unit has received compensation bey ond the amount already incorporated into base salary; therefore, no overpayments have occurred. This side letter ensures that the MOU language is consistent with the established agreement and long-standing City practice.
FISCAL IMPACT
There is no fiscal impact associated with this report.
STRATEGIC INITIATIVES
This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
Human Resources staff will work with CalPERS to address any related issues resulting from the amendments herein.
Prepared by: Marisa Guerrero, Human Resources Manager
Recommended by: Ian Tecson, Director of Human Resources
Approved by:
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Jayanti Addleman, Interim City Manager