TO:Andrew P. Powers, City Manager
FROM:Jeanette D. Green, Human Resources Director
DATE:July 8, 2025
SUBJECT: Memoranda of Understanding with Represented Bargaining Units, Salary Schedules, and Classification and Compensation Study
RECOMMENDATION:
1. Adopt resolution adopting Memorandum of Understanding (MOU) with Thousand Oaks City Employee Association (TOCEA) and rescinding Resolution No. 2023-034.
2. Adopt resolution establishing new salary schedule for General Employees (TOCEA) and General Hourly Employees and rescinding Resolution No. 2024- 020.
3. Adopt resolution adopting MOU with Thousand Oaks Management Association (TOMA) and rescinding Resolution No. 2023-036.
4. Adopt resolution establishing new salary schedule for Professional Employees (TOMA) and Professional Hourly Employees, and rescinding Resolution No. 2024- 021.
5. Adopt resolution adopting MOU with Senior Management Association (SMA) and rescinding Resolution No. 2023-038.
6. Adopt resolution establishing new salary schedule for Senior Management and Supervisory Employees (SMA) and SMA Hourly Employees, and rescinding Resolution No. 2024-022.
7. Adopt resolution establishing new salary schedule for Hourly Employees and rescinding Resolution No. 2024-023.
8. Find that this action is not a project as defined in the California Environmental Quality Act.
LEVINE ACT ITEM: No
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FINANCIAL IMPACT:
No Additional Funding Requested. The annual estimated total compensation proposed adjustments for TOCEA, TOMA, and SMA is 4.15 percent in FY 2025- 26 and 3.06 percent in FY 2026-27. Adequate funding of $2,782,152 in FY 2025- 26 and $2,132,818 in FY 2026-27 is included in the Adopted FYs 2025-2027 Operating Budget (all funds) to cover the proposed compensation adjustments.
BACKGROUND:
The majority of the City’s full-time and Designated Part-Time (DPT) employees are organized into one of three bargaining units, represented by TOCEA, TOMA, and SMA. The City enters into Memoranda of Understanding (MOUs) with each unit, typically spanning two fiscal years. The current MOUs are effective from July 1, 2023, through June 30, 2025. Beginning in April 2025, City management commenced meetings with representatives from each bargaining unit to negotiate wages, hours, and other terms and conditions of employment for the next MOU cycle, covering July 1, 2025, to June 30, 2027. These negotiations also included bargaining over the implementation of the City’s first comprehensive Classification and Compensation Study in over twenty years. The City’s Classification and Compensation system provides a structured approach to defining job classifications and corresponding salary schedules.
The City Council has a longstanding pay philosophy to deliver competitive total compensation (salary plus benefits) at the top of the market, as outlined in the MOUs. To maintain this market position, the City conducts benchmark surveys approximately every five years. These surveys ensure that compensation remains competitive and aligned with the City's pay philosophy. TOCEA positions are benchmarked based on pay grade maximums compared to average market maximums, while TOMA and SMA positions are benchmarked based on pay grade midpoints relative to average market maximums. A typical benchmark survey includes a targeted selection of jobs; the City’s most recent survey (conducted in February 2021) included 60 positions. While targeted studies have helped maintain compensation competitiveness, best practices in compensation call for a more comprehensive review every several years. Unlike targeted studies, which evaluate a limited number of positions, comprehensive studies assess a broader range of jobs, incorporate extensive employee input, and evaluate both internal equity and external competitiveness.
On May 7, 2024, City Council approved a Professional Services Agreement with Evergreen Solutions, LLC to conduct a citywide comprehensive Classification and Compensation Study. The last comprehensive study prior to this was completed in 2003. The primary objectives of this study were to gather employee feedback on their experience as City employees, evaluate the City’s total compensation in MOUs with Represented Bargaining Units, Salary Schedules, Class. & Comp. Study July 8, 2025
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comparison to the broader employment market, and assess job classifications to ensure they accurately reflect current responsibilities and organizational needs.
Evergreen’s study spanned multiple phases over the course of several months, including project planning, orientation sessions, data collection, employee feedback through focus groups and the Job Assessment Tool, supervisory input, internal equity and external market assessments, and data analysis. The firm reviewed 164 classifications with a 95 percent employee participation rate and benchmarked 83 positions against comparator agencies listed in the City’s MOUs.
On March 31, 2025, Evergreen delivered its final report to the City, which included an executive summary, outline of the study’s methodology, summary of employee outreach, assessment of the City’s current system, market summary for salary and benefits, and recommendations for revisions to job titles, classifications, and new salary schedules.
A key highlight of this report was the overwhelmingly positive sentiment expressed by City employees regarding their roles and workplace environment. Many employees conveyed a deep sense of pride and fulfillment in their work, citing the City’s strong benefits package, positive workplace culture, and job stability as significant advantages of employment.
While the study underscored many strengths, it also identified areas for the City to further refine its compensation and benefits strategy, reinforcing its commitment to fostering an engaged and motivated workforce. Notable findings included:
•Evergreen found that the City is largely meeting its goal of delivering highly competitive salaries at the top of the market. In terms of total compensation, when factoring in individual medical coverage the City exceeds the market average by 10.6 percent. However, Evergreen noted that the City's contribution to family medical insurance lags the market overall by 14 percent. To enhance competitiveness, Evergreen recommended increasing the City's contribution to family medical coverage.
•Evergreen found that the City’s current salary schedules include several unoccupied pay grades with no assigned positions. Additionally, the progression between pay grades is minimal, ranging from only 0.5 to 1 percent. To address this, Evergreen recommended adopting a new, simplified, market-responsive pay structure. This revised structure would reduce the total number of pay grades per plan and standardize the progression between grades at 2.5 percent. These changes would eliminate unused pay grades, improve the accuracy of future salary benchmarking, and promote internal pay equity by grouping similar positions within the same grade.
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•As part of the proposed structure, Evergreen recommended assigning positions to the new salary schedule based on market data and internal equity. Evergreen also suggested methods for setting employee salaries within the new plan including “range placement,” an approach that maintains each employee’s current relative position using current step or comparatio. Range placement allows more employees to receive a salary increase during the transition, rather than following the past practice for TOMA and SMA of moving employees to the new grade while keeping their salary at the current amount.
•Finally, Evergreen reviewed the City's classification system and found it generally sound, with most job titles accurately reflecting the work performed. However, some classifications were found to be overly broad, with employees performing a wide range of tasks. Evergreen recommended revising certain job titles and classifications to allow for greater specialization, which may also improve the accuracy of future market analyses.
During negotiations, management presented Evergreen’s findings to the bargaining units and put forth study implementation and other proposals for consideration. Each bargaining unit had the opportunity to provide counter proposals.
By July 2025, the City reached tentative two-year agreements with TOMA, and SMA, covering the period from July 1, 2025, to June 30, 2027. These tentative agreements, ratified by each association’s membership, include total compensation adjustments based on market data and the results of the comprehensive study. Detailed summaries of the proposed changes are included below in the Discussion/Analysis section.
The City also reached a tentative two-year agreement with TOCEA on changes to the MOU for the same time period. The tentative agreement incorporates some adjustments to the total compensation package based on the comprehensive study. However, negotiations with TOCEA regarding changes to the salary schedule structure and job classifications and/or titles are still ongoing as of the date of this staff report. A summary of the proposed TOCEA MOU changes are detailed below. At the conclusion of the negotiations with TOCEA any changes to the salary schedule or job classifications will be brought to City Council for approval.
Due to system limitations, the City must transition all employee groups to the new salary schedule at the same time. TOCEA will remain on the current salary schedule until their classification and compensation negotiations are complete.
Once an agreement is reached with TOCEA, staff will return to City Council with MOUs with Represented Bargaining Units, Salary Schedules, Class. & Comp. Study July 8, 2025
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the final grade and step schedules including a revised numbering convention for all employee groups.
DISCUSSION/ANALYSIS:
Several resolutions are attached to this report to approve new MOUs, establish new salary schedules for FYs 2025-2027, and implement other negotiated changes to the City’s MOU provisions. The proposed MOUs between the City and each bargaining unit are within the authority provided by City Council and are presented herein for adoption.
General Employees – TOCEA
The proposed TOCEA MOU (Attachment #1 – to be provided in supplemental packet) and Salary Schedule (Attachment #2) contain the following significant revisions:
1. Term: July 1, 2025 – June 30, 2027.
2. Salary: 5.0 percent salary adjustment effective July 5, 2025, and an additional
3.0 percent salary adjustment effective July 4, 2026.
3. Cafeteria Plan Adjustment: Cafeteria Plan contribution will be adjusted as follows:
Effective January 1, 2026:
•Employee plus one: Adjustment of $50, from $1330 to $1,380 per month •Employee plus family: Adjustment of $300, from $1,330 to $1,630 per month Effective January 1, 2027:
•Employee plus one: Adjustment of $50, from $1,380 to $1,430 per month •Employee plus family: Adjustment of $100, from $1,630 to $1,730 per month Employee only coverage will remain at $1,330 for the entire two-year term.
In addition to the Cafeteria Plan contributions outlined above, employees will continue to receive the Public Employees’ Medical and Hospital Care Act (PEMHCA) contribution of $435 per month. Effective January 1, 2026, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
•Employee plus one: $1,815 per month
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•Employee plus family: $2,065 per month
Effective January 1, 2027, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
•Employee plus one: $1,865 per month
•Employee plus family: $2,165 per month for family coverage.
4. Catastrophic Leave Program: The City’s Catastrophic Leave Program shall be expanded to allow the use of donated leave for the care of an employee’s spouse, domestic partner, or dependent child who is experiencing a catastrophic illness or injury.
5. Dental: Increase coverage to provide occlusal guards (night guards) prescribed by a licensed dentist for the treatment of bruxism or temporomandibular joint (TMJ) disorders with lifetime maximum up to $500. Also increase orthodontic lifetime maximum from up to $1,500 per enrollee to $2,500 per enrollee.
6. Paid Parental Leave: The City shall provide up to eighty (80) hours of City-paid parental leave for eligible employees for the birth of a child or the placement of a child for adoption or foster care. Eligibility for and administration of this leave shall be consistent with the provisions of the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA).
7. Leave Cashout: Effective January 1, 2026, employees shall be permitted to cash out up to a maximum of two hundred twenty (220) hours of accrued annual leave per calendar year administered in a manner consistent with IRS constructive receipt rules to ensure compliance with applicable tax laws. The cash-out includes an irrevocable election starting in December 2025 and every December thereafter.
Employees may cash out up to twice per year.
8. Retiree Health Savings Plan (RHS): Adjustment of City contribution to RHS from $500 annually to $1,000 annually.
9. Employee Rideshare Administrative Policy APP No 16.009: Update employee cost-sharing rates to reflect the current fuel and maintenance costs of the program and will be reviewed and updated biennially.
10. Language Modifications/Clean Up: In addition to the proposed salary and benefits adjustments with fiscal impacts outlined above, the TOCEA MOU has been updated to better align with applicable federal and state laws, clarify ambiguous language, remove outdated language and streamline operations and administration. All recommended edits are shown as redlined changes in Attachment #1.
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Professional Employees – TOMA
The proposed TOMA MOU (Attachment #3 – to be provided in supplemental packet) and Salary Schedule (Attachment #4) contains the following revisions:
1. Term: July 1, 2025 – June 30, 2027.
2. Salary Adjustment & Pay for Performance Merit Guide: 1.5 percent salary adjustment effective July 5, 2025, and an additional 1.0 percent salary adjustment effective July 4, 2026, for employees with a performance rating of at least “good work” (2.0 or higher). Adopt and implement revised Pay for Performance Merit Guide for administering merit-based increases as noted in Table 1 below:
Table 1. TOMA Performance Merit Guide FY 2025-26 & FY 2026-27
Comparatio
Rating 80 to 89.9 90 to 99.9 100 to 109.9 110 to 120
4 4.65% 4.45% 4.15% 3.95%
3.8 4.65% 4.45% 4.15% 3.95%
3.6 4.55% 4.35% 4.05% 3.90%
3.4 4.45% 4.25% 3.95% 3.85%
3.2 4.35% 4.15% 3.90% 3.80%
3 4.25% 4.00% 3.85% 3.75%
2.8 3.75% 3.65% 3.55% 3.45%
2.6 3.30% 3.20% 3.10% 2.70%
2.4 2.88% 2.38% 2.13% 1.63%
2.2 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.00% 0.00%
3. Cafeteria Plan Adjustment: Cafeteria Plan contribution will be adjusted as follows:
Effective January 1, 2026:
•Employee plus one: Adjustment of $50, from $1330 to $1,380 per month •Employee plus family: Adjustment of $300, from $1,330 to $1,630 per month Effective January 1, 2027:
•Employee plus one: Adjustment of $50, from $1,380 to $1,430 per month •Employee plus family: Adjustment of $100, from $1,630 to $1,730 per month MOUs with Represented Bargaining Units, Salary Schedules, Class. & Comp. Study July 8, 2025
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Employee only coverage will remain at $1,330 for the entire two-year term.
In addition to the Cafeteria Plan contributions outlined above, employees will continue to receive the Public Employees’ Medical and Hospital Care Act (PEMHCA) contribution of $435 per month. Effective January 1, 2026, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
•Employee plus one: $1,815 per month
•Employee plus family: $2,065 per month
Effective January 1, 2027, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
•Employee plus one: $1,865 per month
•Employee plus family: $2,165 per month for family coverage.
4. Classification and Compensation Study Impacts: A new, market-responsive, and simplified compensation salary schedule that would decrease the overall number of pay grades per schedule but standardize the progression between each grade by 2.5 percent and slotting of positions into the new schedule based on market data and internal equity. Upon adoption of the new schedule, incumbents will be placed in the same comparatio they held in the old schedule.
5. Classification Range Adjustment: Effective July 4, 2026, there will be a 2.0 percent range adjustment for all classifications at the 100 percent comparatio midpoint.
6. Classification Changes: Addition of Business Analyst, Information Technology (IT) Project Manager, and Senior Communications & Marketing Analyst. Reclassify one Associate Analyst to Thousand Oaks (TO) Arts Administrator which would result in removing this employee from the TOMA bargaining unit and adding the new classification title to the SMA bargaining unit. These changes do not impact the current position duties or number of City’s authorized positions.
7. Catastrophic Leave Program: The City’s Catastrophic Leave Program shall be expanded to allow the use of donated leave for the care of an employee’s spouse, domestic partner, or dependent child who is experiencing a catastrophic illness or injury.
8. Dental: Effective January 1, 2026, increase coverage to provide occlusal guards MOUs with Represented Bargaining Units, Salary Schedules, Class. & Comp. Study July 8, 2025
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(night guards) prescribed by a licensed dentist for the treatment of bruxism or temporomandibular joint (TMJ) disorders with lifetime maximum up to $500. Also increase orthodontic lifetime maximum from up to $1,500 per enrollee to $2,500 per enrollee.
9. Paid Parental Leave: The City shall provide up to eighty (80) hours of City-paid parental leave for eligible employees for the birth of a child or the placement of a child for adoption or foster care. Eligibility for and administration of this leave shall be consistent with the provisions of the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA).
10. Leave Cashout: Effective January 1, 2026, employees shall be permitted to cash out up to a maximum of two hundred twenty (220) hours of accrued annual leave per calendar year administered in a manner consistent with IRS constructive receipt rules to ensure compliance with applicable tax laws. The cash-out includes an irrevocable election in December, and cash out up to twice per year.
11. Retiree Health Savings Plan (RHS): Adjustment of City contribution to RHS from $400 annually to $1,000 annually.
12. Employee Rideshare Administrative Policy APP No 16.009: Update employee cost-sharing rates to reflect the current fuel and maintenance costs of the program and will be reviewed and updated biennially.
13. Language Modifications/Clean Up: In addition to the proposed salary and benefits adjustments with fiscal impacts outlined above, the TOMA MOU has been updated to better align with applicable federal and state laws, clarify ambiguous language, remove outdated language and streamline operations and administration. All recommended edits are shown as redlined changes in Attachment #3.
Senior Management, Confidential, and Supervisory Employees – SMA The proposed SMA MOU (Attachment #5 – to be provided in supplemental packet) and Salary Schedule (Attachment #6) contains the following significant revisions:
1. Term: July 1, 2025 – June 30, 2027.
2. Salary Adjustment & Pay for Performance Merit Guide: 1.5 percent salary adjustment effective July 5, 2025, and an additional 1.0 percent salary adjustment effective July 4, 2026, for employees with a performance rating of at least “good work” (2.0 or higher). Adopt and implement revised Pay for Performance Merit Guide for administering merit-based increases as noted in Table 2 below:
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Table 2. SMA Performance Merit Guide FY 2025-26 & FY 2026-27
Comparatio
Rating 80 to 89.9% 90 to 99.9 100 to 109.9 110 to 120
4 4.65% 4.45% 4.15% 3.95%
3.8 4.65% 4.45% 4.15% 3.95%
3.6 4.55% 4.35% 4.05% 3.90%
3.4 4.45% 4.25% 3.95% 3.85%
3.2 4.35% 4.15% 3.90% 3.80%
3 4.25% 4.00% 3.85% 3.75%
2.8 3.75% 3.65% 3.55% 3.45%
2.6 3.30% 3.20% 3.10% 2.70%
2.4 2.88% 2.38% 2.13% 1.63%
2.2 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.00% 0.00%
3. Cafeteria Plan Adjustment:
Effective January 1, 2026:
•Employee plus one: Adjustment of $50, from $1330 to $1,380 per month •Employee plus family: Adjustment of $300, from $1,330 to $1,630 per month Effective January 1, 2027
•Employee plus one: Adjustment of $50, from $1,380 to $1,430 per month •Employee plus family: Adjustment of $100, from $1,630 to $1,730 per month
Employee only coverage will remain at $1,330 for the entire two-year term.
In addition to the Cafeteria Plan contributions outlined above, employees will continue to receive the Public Employees’ Medical and Hospital Care Act (PEMHCA) contribution of $435 per month. Effective January 1, 2026, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
•Employee plus one: $1,815 per month
•Employee plus family: $2,065 per month
Effective January 1, 2027, total City contributions toward health insurance will be:
•Employee only: $1,765 per month
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•Employee plus one: $1,865 per month
•Employee plus family: $2,165 per month for family coverage.
4. Classification and Compensation Study Impacts: A new, market-responsive, and simplified compensation salary schedule that would decrease the overall number of pay grades per schedule but standardize the progression between each grade by 2.5 percent and slotting of positions into the new schedule based on market data and internal equity. Upon adoption of the new schedule, incumbents will be placed in the same comparatio they held in the old schedule.
5. Classification Range Adjustments: Effective July 4, 2026, there will be a 2.0 percent range adjustment for all classifications at the 100 percent comparatio midpoint.
6. Classification Changes:
a. Add new Classifications effective July 5, 2025:
•Assistant City Attorney – Litigator
•Assistant to the City Manager
•Broadcast Media Supervisor
•Building Official
•Community Development Technician Supervisor
•Deputy Cultural and Community Services Director-City Librarian •Deputy Cultural and Community Services Director-Community Services •Deputy Cultural and Community Services Director-Theatres •Deputy Information Technology (IT) Director
•Executive Office Manager
•Office Manager
•TOArts Administrator
b. Delete current Classifications effective July 5, 2025:
•Administrative Support Supervisor
•Assistant to the City Manager/Communications
•Community Development Operations Manager
•Construction Inspection Supervisor
•Deputy Cultural Affairs Director
•Deputy Library Services Director
•Support Services Supervisor
7. Catastrophic Leave Program: The City’s Catastrophic Leave Program shall be expanded to allow the use of donated leave for the care of an employee’s spouse, domestic partner, or dependent child who is experiencing a catastrophic illness or injury
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8. Dental: Effective January 1, 2026, increase coverage to provide occlusal guards (night guards) prescribed by a licensed dentist for the treatment of bruxism or temporomandibular joint (TMJ) disorders with lifetime maximum up to $500. Also increase orthodontic lifetime maximum from up to $1,500 per enrollee to $2,500 per enrollee.
9. Paid Parental Leave: The City shall provide up to eighty (80) hours of City-paid parental leave for eligible employees for the birth of a child or the placement of a child for adoption or foster care. Eligibility for and administration of this leave will be consistent with the provisions of the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA).
10. Leave Cashout: Effective January 1, 2026, employees shall be permitted to cash out up to a maximum of two hundred twenty (220) hours of accrued annual leave per calendar year administered in a manner consistent with IRS constructive receipt rules to ensure compliance with applicable tax laws. The cash-out includes an irrevocable election in December, and cash out up to twice per year.
11. Retiree Health Savings Plan (RHS): Adjustment of City contribution to RHS from $400 annually to $1,000 annually.
12. Employee Rideshare Administrative Policy APP No 16.009: Update employee cost-sharing rates to reflect the current fuel and maintenance costs of the program and will be reviewed and updated biennially.
13. Language Modifications/Clean-Up: In addition to the proposed salary and benefits adjustments with fiscal impacts outlined above, the SMA MOU has been updated to better align with applicable federal and state laws, clarify ambiguous language, remove outdated language and streamline operations and administration. All recommended edits are shown as redlined changes in Attachment #5.
Hourly Employees
Attachment #7 is an updated salary schedule for the City’s hourly employees.
These employees are not part of any bargaining unit and therefore do not have an MOU with the City. The Department of Human Resources reviews the hourly salary schedule on the same cycle as MOU negotiations and makes recommendations at the same time updates are proposed for the City's MOUs. The proposed changes to the hourly salary schedule are based on recommendations from the classification and compensation study, as well as internal equity considerations.
COUNCIL GOAL COMPLIANCE:
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Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
K. Prepare for transition of City workforce by ensuring that sufficient succession planning takes place to develop an employment base which is reflective of the community’s demographics.
PREPARED BY: Chelsea Escobar, Senior HR Analyst
Attachments:
Attachment #1 – Resolution adopting MOU with TOCEA (to be supplemental packet)
Attachment #2 – Resolution establishing New Salary Schedule for TOCEA Attachment #3 – Resolution adopting MOU with TOMA
Attachment #4 – Resolution establishing New Salary Schedule for TOMA Attachment #5 – Resolution adopting MOU with SMA
Attachment #6 – Resolution establishing New Salary Schedule for SMA Attachment #7 – Resolution establishing New Salary Schedule for Hourly Employees
HRD:700-20\CE\ H:\COMMON\StaffReports\2025\07082025 Labor Contracts Staff Report.docx