Title
Report regarding a resolution to approve successor Memorandums of Understanding between the City of South San Francisco and the American Federation of State, County and Municipal Employees Local 829, Teamsters Local 856 Mid-Management Unit, Teamsters Local 856 Confidential Unit, South San Francisco Police Association, and International Association of Firefighters Local 1507, and a resolution approving an amendment to the Executive Management Compensation Plan, and approving Budget Amendment number 26.010 (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
A. Adopt a resolution approving Memorandums of Understanding between the City of South San Francisco and the American Federation of State, County and Municipal Employees (AFSCME) Local 829, Teamsters Local 856 Mid-Management Unit, Teamsters Local 856 Confidential Unit, South San Francisco Police Association, and International Association of Firefighters (IAFF) Local 1507, the associated amendment to the City’s wage and salary schedule, and approving Budget Amendment Number 26.010.
B. Adopt a resolution approving amendments to the Executive Management Compensation Plan, and associated amendment to the City’s Executive Management Salary Schedule.
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BACKGROUND/DISCUSSION
The City’s regular full-time workforce is organized into six (6) represented employee bargaining units, as well as the unrepresented Public Safety Managers Unit and Executive Management Unit. In accordance with the Meyers-Milias-Brown Act (MMBA), the City negotiates agreements with each represented unit over wages, hours, and other terms and conditions of employment, and such agreements are memorialized in a Memorandum of Understanding (MOU) over a specified term. In addition, the City meets with members of unrepresented units and conducts informal negotiations over proposed changes to the compensation plan for the unit. In January 2022, City Council authorized staff to begin negotiations with each employee bargaining unit for successor MOUs, as the existing MOUs were scheduled to expire as of July 1, 2025.
Within the authority granted by Council, City negotiators conducted multiple negotiation meetings with all City bargaining units for approximately five months, beginning in February 2025, and as of June 30, 2025, tentative agreements were reached with five (5) of the City’s represented bargaining units. Concurrently, under City Council direction, staff developed proposed amendments to the Executive Management Compensation Plan and reviewed the proposed changes with the unit employees. The five bargaining units with tentative agreements include AFSCME Local 829, International Association of Firefighters (IAFF) Local 1507, South San Francisco Police Association, Teamsters Local 856 Mid-Management Unit, and Teamsters Local 856 Confidential Unit. The following is a summary of economic terms and other substantial changes included in the proposed agreements:
Base Wage and Salary Adjustments
The City considers local cost of living increases over prior years, compensation surveys of cities of similar size and service level, including future scheduled increases, City workforce trends such as recruitment and retention rates. Under the tentative agreements and proposed compensation plan, each unit will receive a four percent (4%) across-the-board increase effective July 4, 2025, and another four percent (4%) increase effective July 2026.
In addition, based on recent surveys of benchmark cities, and considering impacts on recruitment and retention, the tentative following market-based equity adjustments:
AFSCME Local 829: 1% equity adjustment for classifications within the Parks Maintenance Worker series, Building Maintenance Worker series, and Public Works Maintenance worker series, Code Enforcement Officer, and a 1.5% equity adjustment for classifications within the Communications Dispatcher series.
Teamsters Local 856 Mid-Management Unit: 1% equity adjustment for Recreation Supervisor, Maintenance Supervisor, and 1.5% for Recreation and Community Services Program Coordinator, and Assistant Child Care Supervisor. In addition, based on recent classification and salary studies, internal alignment adjustments for the single positions of Assistant City Clerk and Deputy Finance Director are included.
Teamsters Local 856 Confidential Unit: 1% equity adjustment for Deputy City Clerk and Senior Administrative Assistant.
Police Association: 1.5% equity adjustment for Police Officer, and 1% equity adjustment for all non-sworn classifications, such as Police Records Technician, Police Property and Evidence Specialist, and Police Records Technician, and associated classifications.
IAFF Local 1507: 1% equity adjustment for all represented classifications including Paramedic Firefighter, Fire Apparatus Engineer, Fire Captain, and Safety Inspector series.
For the Executive Management unit, no equity adjustments were granted. However, the proposed Compensation Plan will eliminate a provision for Management Incentive Pay, which could be granted in consideration of the unique nature and responsibilities of a position. Currently, only the Public Works Director receives such pay in the amount of 3.66%, and this amount is now added to the base pay for the position, rather than as separate incentive pay. There is no net increase associated with this change.
The proposed wage and salary schedule also includes a four percent (4%) adjustment for all part-time hourly classifications, which are not represented by a bargaining unit. Historically, part-time hourly positions have received the same base wage adjustment as their full-time counterparts. In cases where additional equity increases are granted for full-time classification with the same job title and duties, an equivalent increase was made to the part-time hourly classification.
Longevity Premium Pay
Previously, each City bargaining unit (excluding Executive Management) had provisions within their respective MOUs for an additional percentage of pay based on years of service. However, such provisions applied only to employees hired prior to 2012. The proposed tentative agreements provide longevity premium pay for all employees in the unit, and for most groups, the premium pay is enhanced. For the AFSCME and Teamsters Units, employees will receive an additional 1% of pay after 10 years of service, and 2.5% of pay after 15 years. For IAFF and Police Association (Sworn personnel only), the longevity premium is 2.5% at 7 years, and 3.5% after 15 years. The Police Association agreement also provides limited credit for lateral officer hires, at 0.5 years for each 1 year of sworn officer experience (maximum 7 years). The Police Association non-sworn personnel will resume the current benefit offered to employees hired prior to 2012, with 1.5% of pay at 15 years of service and 2.5% of pay at 20 years of service.
Education Incentives
Substantial enhancements to education incentives are made in the Police Association are made, in order to recognize valuable certifications and educational/training achievements, and to maintain the City’s competitive position among other Bay Area cities. The existing education incentive program is restructured, and provides employees with the opportunity to achieve a maximum of 10% of pay (for a Bachelor’s degree and an advanced P.O.S.T. certificate), up from the current maximum of 7.5%. Police personnel who complete the Crisis Intervention Training program will receive an additional 2.5% of pay.
The Teamsters Local 856 Confidential unit tentative agreement converts the existing flat-dollar amount education incentive to a percentage of pay. Employees who obtain an Associate’s degree would receive 1% of pay (currently $500 annually) and 2% of pay for a Bachelor’s degree (currently $1,000 annually).
The existing AFSCME Local 829 MOU contains a professional certification incentive program which provides for 2.5% of pay for the first eligible certification, and 1% for each additional certification (maximum of 8%). The tentative agreement does not increase these amounts, but adds additional eligible certifications for Code Enforcement Officers and specialized crane operators.
Night Shift Differential
The tentative agreement with the Police Association contains a night shift differential of 5% of pay for personnel assigned to work night shifts, which is in line with industry standards and other benchmark cities in the Bay Area.
Other allowances and stipends
The following allowances or stipends are granted or increased in the proposed tentative agreements:
AFSCME Local 829: Allowance for safety shoes/boots, for employees who are required to purchase wear them on the job, is increased from $275 annually to $325 annually. In addition, the tool allowance for fleet equipment mechanics is increased from $600 to $800 annually.
Police Association: Uniform allowance is increased from $1,200 to $1,300 annually, to adjust for the increased cost of purchase and maintenance of uniform items. The allowance for the Police Chief, as contained in the Executive Management Compensation Plan, is also increased from $1,200 to $1,300.
IAFF Local 1507: Monthly residency stipend of $500 per month for fire personnel who reside in the area (San Mateo County, Santa Clara County, and San Francisco). The purpose of this stipend is to incentivize employees to live locally in order to provide for improved call-back response in the event of a major emergency or disaster, while acknowledging that high housing costs are often a barrier to local residency.
Benefits and other terms
For the current fiscal year, City staff were able to negotiate minor enhancements to the City’s dental plan at no additional cost, including increasing the calendar year maximum from $1,500 to $2,000, and these changes were incorporated into the bargaining unit agreements. There were no other substantive changes to employee benefits. The proposed agreements include policy updates to sick leave and bereavement leave to be consistent with recent legislative changes, and changes to operational policies or rules within the purview of City Manager, Police Chief, or Fire Chief. These changes would not impact or modify City programs, service levels, or staffing, nor create new material obligations on the City.
FISCAL IMPACT
The Fiscal Year 2025-26 Operating Budget adopted by City Council includes an allowance for salary increases for all employee units. However, with the additional salary and premium enhancements contained in the proposed agreements, additional funds are required to cover the total cost of the salary and benefit package. The estimated total additional cost for the current fiscal year is $2,678,000 for the five represented employee units, and $46,027 for the Executive Management Unit. Budget Amendment Number 26.010, included in the accompanying resolution, provides for appropriation of funds from the General Fund reserve for the current operating budget in order to cover these additional costs.
RELATIONSHIP TO STRATEGIC PLAN
This action supports all aspects of the City’s strategic plan by ensuring that the City maintains competitive salary and benefits packages to attract and retain high-performing employees to carry out the strategic goals and priorities of the City.
CONCLUSION
Staff recommends that the City Council approve the five tentative agreements for successor Memorandums of Understanding, which were negotiated by City representatives with represented employee organizations and approve the associated amendment to the City’s wage and salary schedule and budget amendment. Staff further recommends that the City Council approve the amended Executive Management Compensation plan as proposed, and approve the associated amendment to the Executive Management salary schedule.