CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/24/2025
1 SUBJECT:
Resolution approving the Memorandum of Understanding between the City of Pacifica and the Management Unit, Teamsters Local 350 for the period of July 1, 2025 through June 30, 2028.
RECOMMENDED ACTION:
Adopt the resolution approving the Memorandum of Understanding between the City of Pacifica and the Management Unit, Teamsters Local 350; for the period of July 1, 2025, through June 30, 2028, including the revised salary schedule effective November 1, 2025, July 1, 2026, and July 1, 2027. After Council approval, staff will ensure the MOUs are properly cleaned up, and all technical corrections are made, including any remaining typos, fixing the tables of contents, finalizing the documents for signature, and eventually posting online.
STAFF CONTACT:
Zach Harris, Human Resources Manager
650-339-3461
[email protected] <mailto:[email protected]>
Yulia Carter, Assistant City Manager
650-501-6004
[email protected]
Marisol Gómez, Director of Finance and Administrative Services 650-501-0257
[email protected] <mailto:[email protected]>
BACKGROUND / DISCUSSION:
Compensation Framework
The Council reaffirmed its commitment to addressing compensation issues through the adopted Strategic Plan, specifically Strategic Goal #1: Enhance Organizational and Fiscal Stability. The Council authorized the City's management team to pursue labor agreements that include targeted equity adjustments for classifications more than 5% below market, in addition to costof-living adjustments (COLA) for all classifications to help improve market placement for those severely below market and maintain market alignment where it already exists. Per Council’s direction, this strategy places particular emphasis on public safety classifications, which play a critical role in protecting the community and ensuring the continuity of essential emergency and safety services.
While the current labor package reflects the City's best efforts within limited fiscal constraints, it is not sufficient on its own to fully address the City’s market competitiveness. Looking ahead, the labor market is expected to remain a significant challenge in the coming years. Continued Pacifica City Council 2
November 24, 2025
progress will require not only sustained investments in the workforce but also strategic revenue enhancement to provide the resources necessary to improve market placement and maintain service delivery. Without additional ongoing revenue, the City’s ability to attract, retain, and support a high-performing workforce, and deliver critical services to the community, will remain at risk.
The Management Unit, Teamsters Local 350 tentative agreement provides an equity adjustment in years one and two, and an annual COLA wage increase in year three, specified below, and the continuation of the city contribution towards the deferred compensation plan that was set to expire on June 30, 2025.
In addition, a structured equity adjustment was proposed as a Citywide framework to gradually bring all City classifications to market over time, consistent with the City’s previously adopted compensation philosophy. Under the proposed framework, members whose salaries were more than 5% below market, would receive an equity adjustment outlined in the table below, and would additionally receive a one percent (1%) COLA increase for FY 2025-26, and FY 2026-27.
Members who are over the 5% below market threshold would receive a one and a half percent (1.5%) COLA increase for FY 2025-26, and FY 2026-27. Members who are in the 20% below market range would receive a two percent (2%) COLA wage increase, plus a one-time additional step increase to their classification’s top step for a total of seven percent (7%) adjustment to top-step salary in the third year of the contract. Members in the 25+% below market range would receive a 2% COLA and two additional 5% step increases will be added to their classifications in year three, resulting in total 12% adjustment to top-step salary, subject to the standard 5% annual merit-based step progression.
These structured equity adjustments were proposed as a Citywide framework approach to all labor groups in order to gradually bring all City classifications to market over time, consistent with the previously developed compensation philosophy. They are tied directly to how far below market each classification currently falls, based on data from the Citywide Total Compensation Survey conducted by an independent classification and compensation consulting firm.
The equity adjustments range from 1% to 5% in years 1-2 of the contract, and COLA are outlined in the table below:
In year 3, all employees receive a 3% COLA adjustment, except for those classifications eligible for extra steps based on their current market placement. Those classes will receive 2% COLA in the third year of the contract
With Pacifica's persistently low staffing levels and below-market employee compensation Pacifica City Council 3
November 24, 2025
compared peer agencies, and limited revenue sources to fund critical services, infrastructure and other capital needs, this labor package represents a significant and strategic Council investment in the City workforce. It reflects the Council’s strong commitment to maintaining high-quality municipal services by supporting City staff, even within a constrained fiscal environment, as a key priority for long-term organizational stability.
The terms of the agreements for the Management Unit, Teamsters Local 350 are listed below:
Management Unit, Teamsters Local 350:
In FY 2025-26, and FY 2026-27, the Management Unit, Teamsters Local 350 job classifications that are less than 5% below market range will receive a one and a half percent (1.5%) equity wage increase. Job classifications in the 5-10% below market range will receive two percent (2%) equity wage increase. Job classifications in the 10.1-15% below market range will receive three percent (3%) equity wage increase. Job classifications in the 15.1-20% below market range will receive four percent (4%) equity wage increase. In FY 2027-28 all job classifications will receive a three percent (3%) COLA wage increase.
ALTERNATIVE ACTION:
The City Council may choose not to approve the proposed Memoranda of Understanding (MOUs) at this time and may direct staff to return to the negotiating table to pursue additional modifications. However, because these agreements are the result of a meet-and-confer process conducted in good faith under the Meyers-Milias-Brown Act (MMBA), any material changes would require the agreement of the respective labor group(s) and may delay implementation.
RELATION TO CITY GOALS AND WORK PLAN:
The recommended action is consistent with the following Council goal: “Enhance organizational and fiscal stability” includes strategies to improve staff retention, recruitment, mental health, and wellness resources and increase staffing for rising workloads.
FISCAL IMPACT:
The FY 2025-26 fiscal impact associated with the Management Unit, Teamsters Local 350 is estimated to be approximately $155k. The second year fiscal impact of the contract is estimated to be $162k. The third year fiscal impact of the contract is estimated to be $214k.
The current FY 2025-26 Budget will be amended during the mid-year budget review to include this increased cost and corresponding salary savings for a net zero change across all affected funds. The following FY 2026-27, and FY 2027-28 budgets will also include built-in salary savings assumptions to accommodate the increased salaries and benefits over the life of these agreements.
ORIGINATED BY:
Human Resources
ATTACHMENT LIST:
Pacifica City Council 4
November 24, 2025
MGMT 350 Salary Schedule 25-26 (PDF)
MGMT 350 Salary Schedule 26-27 (PDF)
MGMT 350 Salary Schedule 27-28 (PDF)
350 MOU Redline (DOCX)
Pacifica City Council 5
November 24, 2025
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PACIFICA AND THE MANAGEMENT UNIT, TEAMSTERS LOCAL 350 FOR THE PERIOD OF JULY 1, 2025, THROUGH JUNE 30, 2028
WHEREAS, a Memorandum of Understanding has been negotiated in good faith in accordance with the Meyers-Milias-Brown Act (“MMBA”) and agreed to by the Management Unit, Teamsters Local 350 bargaining unit has ratified the Memorandum of Understanding; and WHEREAS, said Memorandum of Understanding, as ratified by the Management Unit, Teamsters Local 350 and as reviewed by the City Attorney, is attached hereto along with revised salary schedules for the Management Unit, Teamsters Local 350; and WHEREAS, the parties have reached an agreement on successor Memoranda of Understanding and a successor Compensation and Benefits Plan NOW, THEREFORE, be it resolved by the City Council of the City of Pacifica that certain wages, salaries, fringe benefits, and working conditions as described in said Memorandum of Understanding with members of the Management Unit, Teamsters Local 350, copy attached (ATTACHMENT 4), are hereby authorized for the period of July 1, 2025, through June 30, 2028; BE IT FURTHER RESOLVED, that in accordance with California Government code 570.5(a), the salary schedules listed under Appendix B1, B2, and B3 of the Memorandum of Understanding are approved and adopted.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 24th day of November, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney