Memorandum — San Jose City Council, October 27, 2026

TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Aram Kouyoumdjian
SUBJECT: See Below DATE: October 16, 2026
Approved Date:
10/16/26
COUNCIL DISTRICT: Citywide
SUBJECT: Approval of the Terms of an Agreement with the Association of Engineers and Architects, IFPTE, Local 21 (AEA), the Association of Maintenance Supervisory Personnel, IFPTE, Local 21 (AMSP), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP) for the Term of July 1, 2026, Through June 30, 2029

RECOMMENDATION
Adopt a resolution to:
(a) Approve the terms of a collective bargaining agreement between the City and the Association of Engineers and Architects, IFPTE, Local 21 (AEA) for the term of July 1, 2026, through June 30, 2029, and authorizing the City Manager to execute agreements with those terms;
(b) Approve the terms of a collective bargaining agreement between the City and the Association of Maintenance Supervisory Personnel, IFPTE, Local 21 (AMSP) for the term of July 1, 2026, through June 30, 2029, and authorizing the City Manager to execute agreements with those terms; and
(c) Approve the terms of a collective bargaining agreement between the City and the City Association of Management Personnel, IFPTE, Local 21 (CAMP) for the term of July 1, 2026, through June 30, 2029, and authorizing the City Manager to execute agreements with those terms.

SUMMARY AND OUTCOME
Adoption of the resolution will result in collective bargaining agreements between the City and AEA, AMSP, and CAMP. This would authorize the City Manager to execute agreements with each bargaining unit with a term of July 1, 2026, through June 30, COUNCIL AGENDA: 10/27/2026
FILE: 26-114
ITEM: 3.5

HONORABLE MAYOR AND CITY COUNCIL
October 16, 2026
Subject: Approval of the Terms of an Agreement with the Association of Engineers and Architects, IFPTE, Local 21 (AEA), the Association of Maintenance Supervisory Personnel, IFPTE, Local 21 (AMSP), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP) for the Term of July 1, 2026, Through June 30, 2029

Page 2 ends

2029, with the terms described in the overall Tentative Agreement for each bargaining unit.

BACKGROUND
IFPTE represents over 1,000 full-time-equivalent (FTE) City employees in professional and middle-management classifications. AEA currently represents approximately 345 FTEs, including the classifications of Engineer, Architect, Senior Engineer, and Senior Architect. AMSP currently represents approximately 144 FTEs, comprised of maintenance supervisors and managers working in the following departments: Airport, Environmental Services, Library, Parks, Recreation and Neighborhood Services, Public Works, and Transportation. CAMP currently represents approximately 594.40 FTEs, including the classifications of Senior Analyst and Program Manager.

In February 2026, the City commenced bargaining with AEA, AMSP, and CAMP to negotiate successor agreements to the union contracts set to expire on June 20, 2026.

The parties reached overall Tentative Agreements on October 8, 2026, on the terms to be contained in the successor Memoranda of Agreements (MOAs) between the City and AEA, AMSP, and CAMP.

The Tentative Agreements are pending ratification by the respective memberships of AEA, AMSP, and CAMP. Each bargaining unit will notify the City of the ratification results before the October 27, 2026 City Council meeting, but prior to the implementation of any terms provided for in the respective Tentative Agreements.

ANALYSIS
Complete copies of the overall Tentative Agreements are attached. The following is a summary of the key provisions of the Tentative Agreements.

Term
-AEA, AMSP, and
CAMP
July 1, 2026, through June 30, 2029
Pensionable
General Wage
Increase
-AEA, AMSP, and
CAMP
Fiscal Year 2026-2027
Effective September 27, 2026, all salary ranges for employees holding positions in classifications assigned to AEA, AMSP, and CAMP will receive a pensionable base pay increase of

Page 3 ends

approximately 3.00%. This will result in both the top and bottom steps of the pay range being increased by approximately 3.00%.

Fiscal Year 2027-2028
Effective the first full pay period of Fiscal Year 2027-2028, all salary ranges for employees holding positions in classifications assigned to AEA, AMSP, and CAMP will receive a pensionable base pay increase of approximately 3.00%. This will result in both the top and bottom steps of the pay range being increased by approximately 3.00%.

Fiscal Year 2028-2029
Effective the first full pay period of Fiscal Year 2028-2029, all salary ranges for employees holding positions in classifications assigned to AEA, AMSP, and CAMP will receive a pensionable base pay increase of approximately 3.00%. This will result in both the top and bottom steps of the pay range being increased by approximately 3.00%.

If the revised Five-Year Forecast included as part of the 2028- 2029 Proposed Operating Budget includes a General Fund
surplus of at least $3.75 million dollars in Fiscal Year 2028-2029, the general wage increase effective the first full pay period of Fiscal Year 2028-2029, for employees holding positions in classifications assigned to AEA, AMSP, and CAMP shall be increased by 0.25% for a total of 3.25%.

If the revised Five-Year Forecast included as part of the 2028- 2029 Proposed Operating Budget includes a General Fund
surplus of at least $7.50 million dollars in Fiscal Year 2028-2029, the general wage increase effective the first full pay period of Fiscal Year 2028-2029, for employees holding positions in classifications assigned to AEA, AMSP, and CAMP shall be increased by 0.50% for a total of 3.50%.

If the revised Five-Year Forecast included as part of the 2028- 2029 Proposed Operating Budget includes a General Fund
surplus of at least $15.00 million dollars in Fiscal Year 2028- 2029, the general wage increase effective the first full pay period of Fiscal Year 2028-2029, for employees holding positions in

Page 4 ends

classifications assigned to AEA, AMSP, and CAMP shall be increased by 1.00% for a total of 4.00%.

One-Time NonPensionable Lump
Sum Payment
-AEA, AMSP, and
CAMP
Effective the first full pay period following union ratification and Council approval in open session, all full-time employees holding positions assigned to AEA, AMSP, and CAMP shall receive a one-time non-pensionable lump sum payment
equivalent to 1.00% of their base annual wages. To receive this lump sum payment, the employee (1) must have been
employed by the City in a classification represented by AEA, AMSP, or CAMP on October 10, 2026, and (2) must have been continuously employed in a classification represented by AEA, AMSP, or CAMP through the date the payment is made.

CAMP ONLY (since there are no part-time employees in
AEA or AMSP):

Part-time benefited employees in CAMP who meet the criteria above shall receive a one-time non-pensionable lump sum payment as provided in the table below:

Benefit Level One-Time NonPensionable Lump Sum
Payment

30.00 – 34.00 $ 510

25.00 – 29.00 $ 435

20.00 – 24.00 $ 360
Part-time unbenefited employees who meet the criteria above and who had at least 520.00 hours of regular hours worked (REG) between October 10, 2025 and October 10, 2026 shall receive a one-time non-pensionable lump sum payment of
$250.00.

Non-Pensionable
Pay Conversion
-AEA, AMSP, and
CAMP
Fiscal Year 2028-2029
1% of the 5% ongoing compensation that classifications
represented by AEA, AMSP, and CAMP receive as nonpensionable pay shall be automatically converted to pensionable pay effective June 3, 2029, if both of the following conditions are met:

Page 5 ends

• The 2028 Federated Pension Actuarial Valuation, due to be released in December 2028, shows that the
federated Plan has a funding ratio of 80.00% or higher
on an Actuarial Valuation of Assets basis; and
• The 2028 Federated Pension Actuarial Valuation, due to be released in December 2028, shows that the City’s
contributions to the Federated Pension Plan for Fiscal
Year 2028-2029 do not exceed the value contained in
the 2025 Federated Pension Actuarial Valuation for
Fiscal Year 2028-2029 – $252 million.

If the aforementioned conditions are satisfied and 1% of the 5% ongoing non-pensionable compensation is converted to pensionable pay, the remaining 4% of the original 5% ongoing non-pensionable compensation shall remain non-pensionable.

If the aforementioned conditions are not both satisfied, the parties agree to a reopener to discuss converting 1% of the 5% ongoing non-pensionable compensation to pensionable pay effective June 3, 2029, if either of the following conditions is met:
• The 2028 Federated Pension Actuarial Valuation, due to be released in December 2028, shows that the
Federated Plan has a funding ratio of 80.00% or higher
on an Actuarial Valuation of Assets basis; or
• The 2028 Federated Pension Actuarial Valuation, due to be released in December 2028, shows that the City’s
contributions to the Federated Pension Plan for Fiscal
Year 2028-2029 do not exceed the value contained in
the 2025 Federated Pension Actuarial Valuation for
Fiscal Year 2028-2029 – $252 million.

Should this reopener be triggered, the parties agree that no promises, representations, understandings, or warranties have been made or relied upon by any party other than those
expressly contained in the Tentative Agreements.

Page 6 ends

Side Letter –
Artificial
Intelligence
-AEA, AMSP, and
CAMP

1. The parties agree to changes to the City’s Artificial Intelligence Policy to specify that AI shall not be used as the sole determining factor in the hiring, promotion,
discipline or evaluation of employees, and to further
clarify that AI is a tool that employees may use in the performance of their duties, but employees shall remain ultimately responsible for the accuracy and caliber of
their work.

2. The parties further agree that, where artificial
intelligence will result in workforce reductions, the City will utilize, to the extent that City resources and
operational needs allow, training, upskilling, reskilling, and reassignment as mitigation measures prior to
effectuating layoffs that lead to separation from City
employment.

3. The parties agree to convene an annual Labor
Management Meeting to discuss issues related to AI
and technology. The meeting will be attended by the
Director of the Information Technology Department or
their designee, who must be at the level of Deputy
Director or above.

4. The parties further agree to meet quarterly to discuss classifications that may be impacted by or vulnerable to AI integration. These meetings will be attended by the
Director of Human Resources or their designee, who
must be at the level of Division Manager or above. The
parties agree two of these meetings will be in lieu of the Citywide Labor Management Committee meeting.

5. Finally, the Union reserves the right to meet and confer over proposed changes to the City’s Artificial
Intelligence Policy that potentially affect the terms and conditions of employment.

Union Release
Time
-AEA, AMSP,
CAMP
The parties agree that the Union President and one designated Union Officer from AEA, AMSP, and CAMP shall each be
granted release time not to exceed eight (8) hours per pay period.

Side Letter –
Voluntary
Deferred
To promote participation in the City’s Voluntary Deferred Compensation Program, the City will make a one-time post-tax contribution of twenty-five dollars ($25) to the Voluntary Deferred Compensation Program account of each new

Page 7 ends

Compensation
Program
-AEA, AMSP, and
CAMP
participant who enrolls in the program. This will become effective as soon as practicable once it can be implemented for all City employees.

Side Letter –
Professional
Development
Program
-AEA, AMSP, and
CAMP
The parties agree the following will become effective as soon as practicable once this can be implemented for all City employees subject to the Professional Development Program:
• City will maintain a list of organizations whose
membership dues shall no longer be subject to the preapproval requirements in the City Policy Manual, Section 4.3.2, Professional Development Program;
• City will maintain a list of certifications where
examination costs and/or renewal costs shall no longer
be subject to the pre-approval requirements in the City Policy Manual, Section 4.3.2, Professional Development
Program;
• These lists shall identify specific classifications in specific department(s) where the pre-approval
requirements shall not longer be required.

City agrees to provide notice when the above lists are changed that relate to AEA-, AMSP-, or CAMP-represented
classifications and will provide an opportunity to meet and discuss upon request of the unions.

Vacation Sellback
-AEA, AMSP, and
CAMP
Beginning calendar year 2027, employees may sell back
up to a maximum of eighty (80) hours of accrued vacation per calendar year. This is an increase from the current maximum of seventy (70) hours of accrued vacation per
calendar year.

Side Letter –
Leaves of
Absence
-AEA, AMSP, and
CAMP
The parties agree to amend the City’s Leaves of Absence Policy to allow employees who are receiving Workers’
Compensation temporary disability benefits to elect to use any accrued leave balances during the period of receipt of wage replacement benefits. The current policy requires leave balances to be used in a specific order.

Side Letter – Pilot
Program –
The parties agree to a grievance procedure pilot program for AMSP and CAMP on a trial basis throughout the duration of the parties’ 2026-2029 MOAs. This side letter will expire and

Page 8 ends

Grievance
Procedure
-AMSP and CAMP
the grievance procedure pilot program will sunset on June 30, 2029, unless extended by mutual agreement of the parties.

Side Letter –
Voluntary
Furlough
-AEA and CAMP
Full-time, salaried City employees shall be eligible to voluntarily take up to forty (40) hours of unpaid leave each Fiscal Year, all of which must be used consecutively and in the same work week, subject to advance approval of the
Department Director or their designee.

Side Letter –
Voluntary
Furlough
-AMSP
Full-time, hourly City employees shall be eligible to
voluntarily take up to forty (40) hours of unpaid leave each Fiscal Year, in 4-hour increments, subject to advance approval of the Department Director or their designee.

Crisis Intervention
Training Pay for
Chief Park Ranger
and Supervising
Park Ranger -
CAMP and AMSP
Effective the first full pay period in Fiscal Year 2026-2027, following union ratification and Council approval in
open session, employees in the classifications of Park Ranger, Chief (2429) and Park Ranger, Supervising (2425), who sign up or have completed the Crisis Intervention Training will be eligible to receive the Crisis Intervention Training premium pay of a total of approximately 3.75%. This premium pay shall be non-pensionable.

Uniform
Allowance for
Chief Park Ranger
-CAMP
The parties agree that an annual Uniform Allowance shall accrue for the Park Ranger, Chief (2429) at an annual
maximum of $800 or $33.33 per pay period during the first two biweekly pay periods per month.

Safety Equipment
-AMSP and CAMP
The City will provide the classifications of Park Ranger, Chief (2429) and Park Ranger, Supervising (2425) with the same safety equipment and training provided to incumbents in the Park Ranger and Senior Park Ranger classifications.

Park Ranger Duty
Manual
-AMSP and CAMP
AMSP and CAMP agree to changes to the Park Ranger Duty
Manual as provided on May 7, 2026.

Unit Designation
of the Security
The City will initiate a Unit Designation process to move the Security Services Supervisor from CAMP to AMSP.

Page 9 ends

Services
Supervisor
-AMSP and CAMP
Professional
Achievement
Incentive Premium
Pay
-AEA
Eligibility criteria for 1.5% professional achievement incentive premium pay will be expanded to include Architect Licenses.

Side Letter –
Holiday Pay
Eligibility
-AMSP
The parties agree based on the current practice of employees coding compensatory time off when a holiday falls on their regular day off for employees who work in 24/7 operations and/or in continuous operations, the following will apply:

For employees on an alternate work schedule, if any said holidays falls on a full-time employee’s regular day off, during which the employee is not required to work, such employee shall be entitled to eight (8) hours of compensatory time off for full-day holidays.

This side letter is effective through the term of the successor MOA only, which will expire on June 30, 2029.

Senior
Development
Officer and
Development
Officer
Classification
Studies
-CAMP
The parties agree that the City will conduct classification studies for the Senior Development Officer and Development Officer classifications, with a goal of completing the studies within eighteen (18) months from the date of the Tentative Agreement. The City agrees to discuss the results of the studies with CAMP, including potential wage adjustments recommended as a result of the classification studies.

EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.

Page 10 ends

FISCAL IMPACTS
In Fiscal Year 2026-2027, the cost of the one-time non-pensionable lump sum payment is approximately $1.8 million, of which approximately $0.5 million is in the General Fund. The ongoing cost of the 3.00% pensionable general wage increase is approximately $5.5 million in all funds ($1.6 million in the General Fund), with a prorated cost in Fiscal Year 2026-2027 of $4.0 million ($1.2 million in the General Fund). The ongoing costs will be factored into the annual development of the Base Budget. The ongoing cost of the placement of the Security Services Supervisor classification in AMSP, thereby making incumbents in this classification eligible for overtime, is anticipated to be approximately $50,000 in all funds, of which $46,000 is in the General Fund. The costs in 2026-2027 will be offset by a recommended decrease to the Salaries and Benefits Reserve and other adjustments, as necessary, as part of the budget actions that will be brought forward for City Council consideration as part of the 2026- 2027 Mid-Year Budget Review.

In Fiscal Year 2027-2028, the ongoing cost of the 3.00% pensionable general wage increase is approximately $5.6 million in all funds, of which $1.6 million is in the General Fund. In Fiscal Year 2028-2029, the ongoing cost of the 3.00% general wage increase is approximately $5.8 million in all funds, of which $1.6 million is in the General Fund.

These ongoing costs will be factored into the annual development of the Base Budget.

Costs associated with vacation sellback for both of these years will continue to be absorbed by departmental personal services budgets to the extent possible.

COORDINATION
This memorandum was coordinated with the City Attorney’s Office and the City’s Manager’s Budget Office.

PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the October 27, 2026 City Council meeting.

BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.

Page 11 ends

CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.

PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

Aram Kouyoumdjian
Director of City Manager’s Office of Employee Relations Director of Human Resources
For questions, please contact Elsa Cordova, Deputy Director, City Manager’s Office of Employee Relations, at (408) 535-8150.

ATTACHMENT(S):

Attachment A – City of San José – AEA Negotiations Tentative Agreement Attachment B – City of San José – AMSP Negotiations Tentative Agreement Attachment C – City of San José – CAMP Negotiations Tentative Agreement

San Jose City CouncilOctober 27, 2026

San Jose City Council
October 27, 2026