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: 6 Section Name: CONSENT CALENDAR Account Number: 10-2312 File ID: 25-10741 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: January 12, 2026
SUBJECT:
San Mateo Management Employees’ Association Side Letter of Agreement Regarding the Retirement Health Savings Account – Approval
RECOMMENDATION:
Adopt a Resolution to amend the Memorandum of Understanding (”MOU”) with the San Mateo Management Employees’ Association (”SMMEA”) to modify the terms of Section 26.5- 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 SMMEA.
All employee separations (service or disability retirement) from the City occurring between January 1, 2026, and December 31, 2026, shall be handled in the following manner:
For employees with 41 years or less of merit service credit, all eligible leave balances and eligible sick leave balances shall be contributed to the employee's RHSA.
For employees with more than 41 years of merit service credit, 100% of all eligible accrued sick leave balances shall be contributed to the employee's RHSA. All other eligible leave balances shall be paid the straight time salary equivalent for all accrued leave earned.
At the time of non-retirement separation from City merit employment, employees shall contribute no accrued leave to his/her RHSA.
BUDGET IMPACT:
The recommended changes for the SMMEA 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.
ATTACHMENTS
Att 1 – Proposed Resolution
Exhibit A – Side Letter of Agreement
CITY OF SAN MATEO
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STAFF CONTACT
Yumi Maeda, Senior Human Resource Analyst
[email protected]
(650) 522-7279