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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: January 21, 2026
To: Honorable Mayor and City Council Members
From: Andrea Russell, Director of Human Resources
Department: Human Resources
Subject: Adopting the Executive Compensation and Benefits Plan; and Amending the Executive Group Salary Schedule
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California,
1. Adopt Resolution No. 2026-001 of the Mayor and City Council of the City of San Bernardino, California, approving the Executive Compensation and Benefits Plan and repealing Resolution No. 2022-59; and
2. Amend the Executive Group Salary Schedule effective 7/7/2025 and the Citywide Salary Schedule for Full-Time, Part-Time, Temporary, and Seasonal Employees effective 1/5/2026
City Manager's Comments
No comments
Executive Summary
As of September 3, 2025, the City successfully completed labor negotiations with all eight (8) bargaining groups and finalized all applicable MOU’s/Resolutions. Following the approval of the final MOU, staff began working on the update to the Executive Group Compensation and Benefits Plan Resolution, as the terms of Resolution No. 2022-59 also expired on June 30, 2025.
The actions requested within this item will correct language included in the original resolution to accurately reflect the intent and application of the language, bring it into compliance with CalPERS and IRS guidelines, ensure that the Executive Group Compensation and Benefits Plan addresses inconsistencies among the application of benefits to some Group members, addresses compaction between the Public Safety Executive and subordinate classifications; and streamlines the transition between other City bargaining groups and the Executive Group.
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Background
Until 2022, unrepresented at-will executive classifications were part of the San Bernardino Confidential and Management Association (SBCMA). As a result of SBCMA’s agreement to release the City's executive team, Mayor and City Council approved Resolution No. 2022-59 – Executive Compensation and Benefits Plan on March 16, 2022. The term of this resolution expired on June 30, 2025. In preparation for the expiration of this resolution, staff began making updates in consultation with CalPERS, and Shuster Investment Group, our deferred compensation fiduciary. Staff was informed by CalPERS that language contained in Section 6 of Resolution No. 2022-59 was not compliant and would result in certain compensation being non- reportable for the Public Safety Executive; and staff was informed by Shuster that language in the original resolution regarding Executive Leave cash out was not compliant with IRS regulations.
Discussion
After finalizing all bargaining group MOU’s/Resolutions, staff began working on the update to the Executive Compensation and Benefits Plan, which also expired on June 30, 2025. In the efforts to update this resolution, it was discovered that language included in Section 6 of the original resolution related to Peace Officers Standards and Training (POST) Executive Certificate compensation was not CalPERS compliant, making the compensation allocated non-compensable. Staff worked with the CalPERS MOU Review Team to correct this language, and it was recommended that we include the recommended language in the updated resolution.
Also, the language in Section 11 of the original resolution related to Executive Leave voluntary cash out and cash out at separation was found to be non-compliant with IRS regulations. The cash out provisions allow Executives to sell back Executive leave in excess of 660 hours with 30% being paid directly to the Executive and 70% being deposited into the City’s 457(b), 401(a), Retiree Health Plan, or if not available to an account of the Executive’s choice. IRS regulations related to the administration of a 401(a) plan require a mandatory contribution in order for Executive Group members to have access to such a plan. This language has been replaced with standard cash out language for non-Public Safety Executives, and includes IRS compliant language reviewed by Shuster which legally allows participation in the City’s 401(a) plan for the Public Safety Executive (Chief of Police).
With the ratification of the Police Management Association MOU, a total compensation analysis was conducted to identify and address compaction between the Chief of Police and Assistant Chief of Police as a result of the new terms of the MOU. The base salary and other special compensation for the Chief of Police has been adjusted to address this issue.
Finally, when the original resolution was adopted, it established a tiered benefit structure within the Executive Group. The executives who were already employed with 3 0
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the City would continue to receive the same benefits under the existing structure that was previously provided through the SBCMA resolution, and any new executive who was hired on or after the adoption of Resolution 2022-59 would receive enhanced benefits. These enhanced benefits included higher vacation accrual rates and a new Executive Leave benefit, which was done to put the City in a stronger position to recruit and retain talent. At the time, five (5) Department Directors and the Assistant City Manager were covered under the existing benefits structure, and two new incoming directors and the Chief of Police would be covered under the enhanced benefits. As a result of time and executive turnover, there is now currently one (1) Executive Group member that is impacted by this tiered benefit structure where they receive less benefits than their peers. This update to the Executive Compensation and Benefits Plan will remove the tiered benefit structure within the Executive Group and ensure that all Executives receive the same enhanced benefits. We also identified an opportunity to support the utilization of talent that exists within the City when promotional opportunities occur by realigning vacation accruals to ensure that City employees who are promoted into the Executive group from another bargaining group do not experience a decrease in their vacation accrual rate due to their promotion. The vacation accrual rates in the original resolution increase at five (5) and ten (10) years, where SBCMA accrual rates have an additional tier at twenty (20) years that is higher than the Executive group 10 year accrual rate. With this, a member of SBCMA with 20 years of service who promotes into the Executive group would experience a decrease in vacation accrual with their promotion. To address this, we added another accrual tier at fifteen (15) years that matches the SBCMA twenty (20) year accrual rate to ensure a smooth transition when promoting from within.
All other compensation and benefits for the Executive group were aligned with SBCMA as follows:
Compensation:
3% cost of living adjustment (COLA) effective the first full pay period following July 1, 2025 (retroactive);
2% COLA effective the first full pay period following January 1, 2026; 3% COLA effective the first full pay period following July 1, 2026, unless revenues fall below 3.75%. In which case the 3% would be split, 1.5% COLA the first full pay period following July 1, 2026, and 1.5% COLA the first full pay period following January 1, 2027.
Class & Comp Study: Implement the Fiscal Year 2025/26 Classification and Compensation Study in Fiscal Year 2027/28 based on competitiveness, recruitment and retention, and availability of funds. If no money is allocated to equity adjustments, then a 3% COLA will go into effect the first full pay period following July 1, 2027.
Health Benefits:
City contribution of $1,125.00 per month toward health premiums for Employee Only, $1,450.00 per month for Employee Plus One Dependent, and $1,939.00 per month for Employee Plus Family.
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Employee contribution towards health insurance premium increases of up to $30 per month for Employee + 1 coverage and up to $55 per month for Family coverage annually.
$4,000.00 Health Insurance Waiver Stipend for employees who chose not to enroll in any health care plan offered by the City.
Other:
Updated language to clarify terms and ensure legal and CalPERS compliance.
As changes are made to salaries or classifications, the City is required to adopt a revised salary schedule in a public meeting. The attached salary schedule meets the California Public Employees Retirement Systems (CalPERS) pay rate reporting requirements in accordance with Government Code Section 20636 defining “Compensation Earnable” and the California Code of Regulations (CCR) Section 570.5.
2021-2025 Strategic Targets and Goals
Adopting Resolution No. 2026-001 approving the Executive Compensation and Benefits Plan and repealing Resolution No. 2022-59 aligns with Key Target No. 2a:
Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent.
Fiscal Impact
The Executive Compensation and Benefits Plan will be funded by extending the approved hiring deferral for an additional five (5) months in FY 2025/26.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California,
1. Adopt Resolution No. 2026-001 of the Mayor and City Council of the City of San Bernardino, California, approving the Executive Compensation and Benefits Plan and repealing Resolution No. 2022-59; and
2. Amend the Executive Group Salary Schedule effective 7/7/2025 and the Citywide Salary Schedule for Full-Time, Part-Time, Temporary, and Seasonal Employees effective 1/5/2026.
Attachments
Attachment 1 Resolution 2026-0001 – Executive Compensation and Benefits Plan
Attachment 2 Executive Group Salary Schedule
Attachment 3 Citywide Salary Schedule for Full-Time, Part-Time, Temporary, and Seasonal Employees.
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Ward:
All Wards
Synopsis of Previous Council Actions:
September 3, 2025 Mayor and City Council amended the Citywide Salary Schedule for Full-Time, Part-Time and Temporary
Employees.
July 15, 2025 Mayor and City Council amended the Citywide Salary Schedule for Full-Time, Part-Time and Temporary
Employees.
June 18, 2025 Mayor and City Council amended the Citywide Salary Schedule for Full-Time, Part-Time and Temporary
Employees.
March 16, 2022 Mayor and City Council adopted Resolution No. 2022-59 approving the Executive Compensation and Benefits Plan
CC: Eric Levitt, City Manager