City Council Staff Report Page 1 of 2 December 16, 2025 Staff Report
Agenda Item No. 4.2
DATE: December 16, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving Amendments to the City's Classification and Compensation Plan to Implement Previously Negotiated Cost-of-Living and Equity Adjustments, in Conformance with California Code of Regulations, Title 2, Section 570.5
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving amendments to the City’s Classification and Compensation Plan for the Operating Engineers Local 3 Management Employees’ Group (MEG), Operating Engineers Local 3 Professional Employees’ Group (PEG), Service Employees’ International Union, Local 1021 (SEIU), Police Chief, Police Management Association (PMA), Police Officers’ Association (POA) and Unrepresented Department Heads, Unrepresented Management, Unrepresented Non-Management and Unrepresented Police Department positions, effective January 5, 2026.
STRATEGIC PLAN ALIGNMENT
This action supports Strategy 8 of Goal B, Governance and Organization Effectiveness, by ensuring salaries are competitive to recruit, attract, and retain talented employees.
BACKGROUND
In late 2024 to mid-2025, the City Council approved successor Memorandums of Understanding (MOUs) with OE3 MEG, OE3 PEG, SEIU Local 1021, PMA, and POA, and the Compensation and Benefit Plan for Unrepresented Department Heads, Unrepresented Management, Unrepresented Non-Management, and Unrepresented Police Department positions for the period of January 1, 2025, through December 31, 2027. Each of the previously approved MOUs and the Compensation and Benefits Plan included built-in cost-of-living adjustments. The City Council also previously approved Amendment No. 1 to the Employment Agreement with the Police Chief, which included a cost-of-living adjustment. Additionally, the PMA and POA MOUs also included provisions for equity adjustments based upon established criteria.
Agenda Item No. 4.2
City Council Staff Report Page 2 of 2 December 16, 2025 3 3 DISCUSSION
In late 2024 to mid-2025, the City Council approved successor Memorandums of Understanding (MOUs) with OE3 MEG, OE3 PEG, SEIU Local 1021, PMA, and POA, and the Compensation and Benefit Plan for Unrepresented Department Heads, Unrepresented Management, Unrepresented Non-Management, and Unrepresented Police Department positions for the period of January 1, 2025, through December 31, 2027. Each of the previously approved MOUs and the Compensation and Benefit Plan included built-in cost-of-living adjustments that take effect on the first day of the first whole pay period in 2026 (January 5).
The City Council also previously approved Amendment No. 1 to the Employment Agreement with the Police Chief, which also included a cost-of-living adjustment.
Additionally, the PMA and POA MOUs included equity adjustments based on established criteria, and, based on those criteria, the Human Resources Director has determined that the PMA and POA sworn positions are entitled to a 4% equity adjustment and the POA non-sworn positions are entitled to a 2% equity adjustment.
FISCAL IMPACT
The funding for the negotiated COLAs and equity adjustments was included in the adopted FY 2025-2026 & FY 2026-2027 biennial budget.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving amendments to the City’s Classification and Compensation Plan for the Operating Engineers Local 3 Management Employees’ Group (MEG), Operating Engineers Local 3 Professional Employees’ Group (PEG), Service Employees’ International Union, Local 1021 (SEIU), Police Chief, Police Management Association (PMA), Police Officers’ Association (POA) and Unrepresented Department Heads, Unrepresented Management, Unrepresented Non-Management and Unrepresented Police Department positions, effective January 5, 2026.
Prepared by: Jackie Acosta, Finance Director
Submitted by: Jackie Acosta, Finance Director
Attachments
1. Draft Resolution
2. Exhibit A - Classification and Compensation Plan (Salary Table)