City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov City Council
REGULAR MEETING AGENDA
Date: 9/15/2026
Time: 6:00 p.m.
Location: Zoom.us/join – ID# 832 1285 7140
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
EARLY STAFF REPORT RELEASE NOTICE
Pursuant to the requirements of City Council Procedure #CC-11-0001, the following staff report is being released 15 days in advance of the City Council meeting:
Consider and adopt a resolution to approve the successor agreement between the City of Menlo Park and the Service Employees International Union, Local 521, for regular and temporary employees expiring June 30, 2029 (Staff Report #26-148-CC)
This notice is posted in accordance with Government Code Sections 54954.2(a) or 54956. Members of the public can view electronic agendas and staff reports by accessing the city website at www.menlopark.gov/agendas and can receive notifications of agenda postings by subscribing at www.menlopark.gov/subscribe. Agendas and staff reports may also be obtained by contacting the City Clerk’s Office at 650-330-6620. (Posted 8/31/2026) Administrative Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov
STAFF REPORT
City Council
Meeting Date: 9/15/2026
Staff Report Number: 26-148-CC
Regular Business: Consider and adopt a resolution to approve the successor agreement between the City of Menlo
Park and the Service Employees International
Union, Local 521, for regular and temporary
employees expiring June 30, 2029
Recommendation
Adopt a resolution to approve the successor agreement between the City of Menlo Park and the Service Employees International Union, Local 521 (SEIU), expiring June 30, 2029 (Attachment A). This agreement pertains to both regular and temporary employees, which were previously governed by separate collective bargaining agreements.
Policy Issues
City Council retains sole authority to enter into a memorandum of understanding (MOU) with recognized labor units. Negotiations related to MOUs are governed by the Meyers-Milias-Brown Act (MMBA), Government Code Section 3500 et seq. MMBA requires that local agencies meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized collective bargaining units. MMBA further requires that the City fully consider proposals made by collective bargaining unit representatives before determining policy or course of action.
Background
Previously, SEIU represented regular employees and temporary employees pursuant to separate MOUs.
The term of the SEIU MOU for regular employees ended June 30, 2026, and for temporary employees, ended Oct. 22, 2011. For the temporary unit, the parties had not bargained on a successor agreement since the labor agreement expired in 2011. SEIU requested to combine the temporary employee bargaining agreement into the regular unit as part of this negotiations process.
The City Council held its initial hearing to receive public input before launching negotiations with SEIU and SEIU Temporary Employees Unit April 14. After the public input hearing, City Council appointed Charles Sakai of Sloan Sakai Yeung & Wong LLP to serve as the City’s chief negotiator. Mr. Sakai received direction to negotiate the successor MOU with SEIU regular and temporary employees. Negotiations commenced in May 2026. The Parties met both on and off-the-record and resolved matters by joint recommendation in August 2026.
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Analysis
Service to the community requires a skilled workforce that is committed to providing the high level of customer service and responsiveness expected by the City Council, residents, businesses, and other community sectors in Menlo Park. SEIU is comprised of non-sworn frontline personnel across all City departments and represents 77 classifications with approximately 150.25 budgeted full-time equivalents (FTEs) in SEIU in fiscal year 2026-27, along with approximately 129 temporary employees.
This report summarizes the joint recommendation negotiated in good faith with SEIU representatives.
SEIU membership has not yet ratified the tentative agreement as of posting the early release staff report 15 days in advance of the Sept. 15 City Council meeting. While the Parties’ joint recommendation conforms to the authority provided to Mr. Sakai, the final action requires City Council approval at a public meeting. Table 1 summarizes the tentative agreement terms with financial impacts. A redline version incorporating these terms into the current MOU will be transmitted for City Council adoption at least 72 hours in advance of its Sept. 15 meeting (Attachment B).
Table 1: Tentative agreement items with financial impact to City Item Description Cost / (savings)
Term
The tentative agreement (TA) provides for a threeyear term beginning September 15, 2026, and ending on June 30, 2029. Given that negotiation of a
successor agreement is not required for fiscal years
2027-28 and 2028-29, the City is estimated to save
approximately $30,000 per year, which reflects legal
costs and internal staff time required to support
negotiations.
($60,000)
Pay rates –
Overall wage
adjustments
The TA includes an across-the-board general salary
increase (GSI) to all pay rates in this unit, as follows:
• 4.0% effective the pay period following
Council adoption on Sept. 20, 2026
• 3.0% effective the pay period following July
1, 2027
• 3.0% effective the pay period following July
1, 2028
These costs include the corresponding increase to
other City-provided benefits that are tied to wages
(i.e., life insurance, long-term disability insurance,
accidental death and dismemberment insurance,
Medicare and workers’ compensation).
$778,832
$608,950
$627,218
$2,015,000
Pay rates –
Market-based
adjustments
A total compensation study was performed in March
2026 related to water classifications. Effective the
pay period following Council adoption on Sept. 20,
2026, the following market-based equity adjustments
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Table 1: Tentative agreement items with financial impact to City Item Description Cost / (savings)
will be made:
• Water job family
• Water system operator I/II/senior 6.95%
• Water quality specialist…………..6.95%
Additionally, the City agrees to a minimum
commitment of $500,000 to implement the results of
the citywide classification and compensation study.
The parties agree to meet with the City’s retained
consultant, Gallagher, to provide feedback on
recommended survey jurisdictions and related total
compensation components by Dec. 31, 2026. This
study is underway and is expected to be completed
by April 2027.
Market-based equity adjustments are independent of
the GSI, and will be implemented in an additive (noncompounded) fashion. $34,717
Additional market-based equity
adjustments will be negotiated
and incorporated into the fiscal
years 2027-28 and 2028-29
budgets with a minimum
commitment of $500,000
across the two fiscal years.
Flexible
benefits plan
contributions
The TA includes set contribution rates for 2027 plus
an across the board increase in flexible benefits plan
contribution based on the annual Consumer Price
Index (CPI) for the San Francisco Bay Area:
• 2027:
• $3,115.00 per month - family coverage
• $2,396.16 per month - two-person
coverage
• $1,198.08 per month - single coverage
• 2028 CPI increase between 2-4%
• 2029 CPI increase between 2-4%
$69,204
The fiscal year 2026-27
budget includes this CPI
adjustment.
$88,239
$232,948
$390,392
Fixed and
floating
holidays
The TA adds Juneteenth as a fixed holiday and
reduces the number of floating holiday hours by an
equivalent amount from a total of 42 hours to 34
hours. These hours can be used for a day of
reflection, holiday closure, or other vacation needs
throughout the year.
Temporary employees who work the actual date of a
fixed holiday will receive time and one-half pay for
hours worked.
No-cost item.
Certification
pay
Effective the pay period following July 1, 2027, the
City will establish a Certification Recognition
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Table 1: Tentative agreement items with financial impact to City Item Description Cost / (savings)
Program to incentivize employees to obtain and
maintain specific certificates that are above and
beyond what is required in the minimum
qualifications of their job classification or otherwise required for their job. Certification pay will be
provided at the $50, $100, or $150 per month level
for a maximum of $300 per month.
Estimated $58,800 per year.
Call back pay
Call back pay is provided when an employee is
required to report to work on a day when they were
not scheduled or to return to work after completing
their regular work day after leaving the workplace.
The TA allows call back pay to be combined with
standby pay and clarifies that there can be no
overlap between call-backs.
Estimated $15,000 per year.
Standby pay
Standby pay is provided when an employee is
placed on standby outside of their regular work shift
so that they remain available to respond and work
should the need arise.
The TA increases standby pay from 2 hours for each
weekday assigned to standby to a consistent 3 hours
regardless of the day.
Employees agreeing to be placed on standby is a
critical component of the City’s ability to respond in
urgent circumstances, such as winter storms.
Estimated $56,000 per year.
Bilingual pay
A new verbal proficiency level has been added at the
rate of $40 / pay period in recognition of the need for conversational and basic reading/writing skills to
assist members of the public when performing their
job duties.
The existing bilingual pay that requires a higher level of proficiency in speaking, reading and writing is now
recognized as the advanced level. Effective the pay
period following July 1, 2027, the advanced level will
increase from $65 to $75 / pay period.
Estimated $17,465 per year.
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Table 1: Tentative agreement items with financial impact to City Item Description Cost / (savings)
Commuter
benefit
This is a new provision that outlines existing practice to participate in the Caltrain GoPass program. The
City will continue to purchase GoPasses for a fixed
number of users each calendar year, based on the
number of full-time City employees. Unused passes
will be made available to temporary employees on a
first-come, first-served basis.
The City also participates in the BayPass pilot
program that is linked to users’ GoPass accounts.
These passes will be made available to the extent
permitted and subject to the pilot’s continuation.
No additional cost. The City
spends approximately $89,247
/ year for employees to
participate in the GoPass and
BayPass programs.
Incorporation
of temporary
employees
into regular
unit
Specific provisions in the MOU for the regular unit
have been identified to apply to temporary
employees and clarifying language has been added
to update procedures where needed.
Most items remain status quo where temporary
employees are not granted benefits. However, the
following items have changed:
• Paid-time off (PTO) will accrue at a rate of 1
hour for every 25 hours worked with a
maximum accrual of 100 hours, which is an
increase from the current 1 hour for every 30
hours worked and a maximum accrual of 80
hours.
• Starting January 2027, newly-hired temporary
employees will be credited 8 hours upon hire,
or 12 hours if assigned to pre-school
programs, for illness purposes only.
• PTO has no cash value upon separation.
• The City will provide 2 hours’ notice when
canceling a temporary employee’s shift, and if
the City fails to do so, will pay for the
difference between two hours and the actual
notice provided (e.g., 1 hour pay if only 1
hour notice).
Estimated $14,000 per year.
Misc.
language
updates
Additional clarifying and clean-up language has been
incorporated throughout the MOU, including listing
additional protected statuses in the nondiscrimination section, clarifying military leave for civilian deployments, advertising for promotional
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Table 1: Tentative agreement items with financial impact to City Item Description Cost / (savings)
opportunities and transfers, updating the dues
deduction section and membership information
provided, updating the new employee orientation
noticing requirements, updating the tuition
reimbursement procedure, correcting a typo in the
grievance procedure, removing meet and consult
language, increasing rest periods following
emergency work from 8 hours to 10 hours and
paying overtime if required to work during the rest
period, updates the work schedule language
including incorporating the 12-hour dispatch
schedule and adding a 5% differential for temporary
schedule changes in Public Works, and clarifying the
definition of “weekend” as Saturday and Sunday to
underscore existing payroll practice.
De minimis cost.
Total Three-year contract term total $2,787,639
The tentative agreement provides three years of stability and known increases for SEIU across all areas of wages and benefits, including a reopener tied to the citywide classification and compensation study that is anticipated to be completed in April 2027, as described in Table 1. The 4% wage increase in year 1 of the agreement aligns with the one-year agreement with the American Federation of State, County, and Municipal Employees, Local 829 (AFSCME), ending June 30, 2027. The classification and compensation study will update the City’s classifications to meet current operational needs and evaluate the City’s competitiveness in the labor market in terms of salary and benefits. Implementing the results with SEIU and AFMSCE at the same time will help ensure alignment within job families between frontline employees and their supervisors and avoid salary compaction.
The economic package outlined above balances the need for fiscal stability with the goal of recruiting and retaining top talent in service to the community. One measure of fiscal sustainability is the relationship between the TA’s economic package and inflation as measured by the Consumers Price Index, All Urban Consumers (CPI-U), for the San Francisco area. The San Francisco Area CPI as of June 2026 showed an increase of 3.8% as compared to June 2025. Another measure of fiscal sustainability is the relationship between the TA and the amounts included in the fiscal year 2026-27 budget and General Fund five-year forecast. These items include 3% placeholder wage increases and 4% increases to benefit costs, taking into consideration increasing costs for employee pension and inflationary assumptions for non-salary items.
The terms of the successor agreement are an important component of recruiting and retaining qualified employees. Competition for top talent is significant. Providing a comprehensive package that maintains the City’s market position and provides incentive for promoting within the City supports retention of our highly qualified and experienced staff.
Staff Report #: 26-148-CC
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Impact on City Resources
The total cost of this three-year agreement for SEIU regular and temporary employees is $2,787,639 with an average annual cost of $929,213. Funding for temporary employees is included in departments’ operating budgets, with the number of employees and hours worked varying throughout the fiscal year.
Temporary employees are not included in the authorized full-time equivalents (FTEs) in the fiscal year 2026-27 budget. Factoring in the wage and benefit placeholders previously incorporated into the proposed fiscal year 2026-27 budget, an additional $347,652 is being requested for SEIU regular employees in the personnel budget and $108,324 in the operating budget for temporary employees.
Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines Sections 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.
Public Notice
Public notification was achieved by posting the report 15 days prior to the City Council meeting of Sept.
15. Attachments
A. Resolution
B. Redlined version of successor MOU
Report prepared by:
Brittany Mello, Administrative Services Director
Report reviewed by:
Stephen Stolte, Assistant City Manager
RESOLUTION NO. XXXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK
APPROVING THE COMPREHENSIVE MEMORANDUM OF UNDERSTANDING WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 521, WITH A TERM OF SEPTEMBER 15, 2026, THROUGH JUNE 30, 2029 WHEREAS, the City of Menlo Park (City) received a report on expiring labor agreements April 14, 2026, in accordance with the City Council’s policy on Public Input and Outreach Regarding Labor Negotiations; and
WHEREAS, the Memorandum of Understanding (MOU) between the City and the Service Employees International Union, Local 521 (SEIU) expired June 30, 2026, for the regular unit and October 22, 2011, for the temporary employees unit; and WHEREAS, Negotiators for the City and SEIU began the meet and confer process May 2026, and met both on- and off-the-record and resolved matters by Joint Recommendation in August 2026; and
WHEREAS, City and SEIU have met and conferred in good faith and signed a comprehensive Tentative Agreement August 26, 2026; and
WHEREAS, the SEIU bargaining unit is scheduled to ratify the Tentative Agreement prior to the September 15, 2026, City Council meeting; and
WHEREAS, the terms of the successor MOU make changes to the wages, flexible benefits plan contributions, call back, standby and bilingual pays, adds certification pay, and includes various clean-up language regarding non-economic terms and has a term September 15, 2026, through June 30, 2029.
NOW, THEREFORE BE IT RESOLVED, by the Menlo Park City Council that:
1. City approves the Tentative Agreement with SEIU for a successor MOU with a term of September 15, 2026, through June 30, 2029, as set forth in Exhibit A attached and incorporated by reference; and
2. City Council authorizes necessary appropriations in the fiscal year 2026-27 budget for all additional costs related to implementation of the successor MOU; and
3. City Council authorizes the city manager to execute the successor MOU; and
4. City Manager may approve formatting edits to the successor MOU. //
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ATTACHMENT A
I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the fifteenth day of September, 2026, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of September, 2026.
Judi A. Herren, City Clerk
Exhibit:
A. Successor Memorandum of Understanding
Redlined version of successor Memorandum of Understanding This document will be posted at least 72 hours in advance of the City Council meeting September 15, 2026.
ATTACHMENT B