CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 5 Section Name: CONSENT CALENDAR Account Number: 10-2312 File ID: 25-10763 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: January 12, 2026
SUBJECT:
San Mateo City Employees’ Association Side Letter of Agreement Regarding Retirement Health Savings Account – Approval RECOMMENDATION:
Adopt a Resolution to amend the Memorandum of Understanding (”MOU”) with the San Mateo City Employees’ Association (”SMCEA”) to modify the terms of Section 24.11 Retirement Health Savings Account.
BACKGROUND:
The purpose of this side letter of agreement is to change the conversion of separation pay arrangements regarding the Retirement Health Savings Account for calendar year 2026 as agreed upon by the City and SMCEA.
All employee separations (service or disability retirement) occurring between January 1, 2026 and December 31, 2026 shall be handled in the following manner:
Employees with less than 11 years and 3 months of service shall have all eligible accrued sick leave contributed to RHSA, and all other eligible accrued leaves shall be in cash. Employees with more than 11 years and 3 months of service to less than 19 years and 11 months of service shall have 100% of all eligible accrued leaves paid out in cash. Employees with more than 19 years and 11 months of service to less than 20 years and 6 months of service shall have 100% of all eligible accrued leaves contributed to their Retirement Health Savings Account. Employees with more than 20 years and 6 months of service to less than 21 years and 6 months of service shall have 100% of all eligible accrued leaves shall be paid out in cash. Employees with more than 21 years and 6 months of service to under 25 years of service shall have all eligible accrued sick leave contributed to RHSA, and all other eligible accrued leaves shall be in cash. Employees with more than 25 years of service to less than 26 years and 10 months of service shall have 100% of all eligible accrued leaves contributed to their Retirement Health Savings Account.
BUDGET IMPACT:
The recommended changes for the San Mateo City Employees’ Association (SMCEA) Memorandum of Understanding (MOU) do not have a quantifiable fiscal impact.
ENVIRONMENTAL DETERMINATION:
This Side Letter of Agreement is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
CITY OF SAN MATEO
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ATTACHMENTS
Att 1 – Proposed Resolution
Exhibit A – Side Letter
STAFF CONTACT
Yumi Maeda, Senior Human Resource Analyst
[email protected]
(650) 522-7279