Title
Successor Labor Agreements/Memoranda of Understanding and the Citywide Salary Schedule [Two-Thirds Vote Required]
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FileID
File ID: 2026-01160
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution by two-thirds vote: 1) waiving the requirement for 10-day posting of labor agreements; 2) approving the Memorandum of Understanding (MOU) between the City of Sacramento (City) and Sacramento Area Fire Fighters, Local 522 (Local 522); 3) approving the salary adjustments for the Director of Economic Development, Lead Events Associate, and Senior Lifeguard; 4) approving the revised citywide salary schedule; 5) authorizing the City Manager to conduct the necessary budget adjustments and transfers from fund balances to adequately fund the MOU; and 6) authorizing the City Manager or designee to make minor changes or adjustments to the exhibits in order to correct omissions and errors in the MOU and salary schedule.
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Contact
Contact: Aaron Donato, Labor Relations Manager, (916) 808-5816, adonato@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: Jennifer Wilkinson, Administrative Officer, (916) 808-5295, jwilkinson@cityofsacramento.org, Department of Human Resources
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Attachments
Attachments:
1-Description/Analysis
2-Local 522 MOU (Redline)
3-Salary Schedule (Redline)
4-Local 522 Labor Agreement Costing
5-Resolution
6-Exhibit A - Local 522 MOU
7-Exhibit B - Salary Schedule Final
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Description/Analysis
IssueDetail
Issue Detail: Sacramento Area Fire Fighters, Local 522 (Local 522) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and Local 522 expired on October 3, 2025. The City and Local 522 have negotiated a successor MOU. Attachment 2 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: October 4, 2025, through September 29, 2028.
• Effective October 4, 2025, salary ranges will be increased by three percent (3.0%).
• Effective October 3, 2026, salary ranges will be increased by three percent (3.0%).
• Effective October 2, 2027, salary ranges will be increased by three and one half percent (3.5%).
• Effective September 16, 2028, a sixth salary step will be added to salary ranges for the “Single ROLE” Sacramento EMT and Sacramento Fire Paramedic classifications. Step 6 shall be five percent (5.0%) above Step 5.
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective June 27, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
• Longevity
§ Effective October 3, 2026, employees who have completed ten (10) years of service are eligible to receive longevity in the amount of one and one-half percent (1.5%) above their base rate of pay.
§ Effective October 3, 2026, employees who have completed seventeen (17) years of service are eligible to receive three percent (3.0%) above their base rate of pay, for a cumulative total of four and one-half percent (4.5%).
• Standby Pay
Effective June 27, 2026, Senior Fire Prevention Officers and Fire Prevention Officer IIs who remain on standby for emergency work shall be paid $329 per week, or the daily pro rata rate of $47.
The final version of the Local 522 MOU is attached to the Resolution as Exhibit A (Attachment 6).
Salary Schedule
The California Code of Regulations requires that the City Council adopt the City’s Salary Schedule at a public meeting (2 CCR § 570.5). This obligation arises whenever salary ranges are changed to ensure that salary rates are transparent and publicly available. These publicly adopted rates are used by California Public Employees’ Retirement System (CalPERS) to determine the appropriate compensation earnable for each City employee when calculating their pension benefit.
A redline version of the salary schedule is shown in Attachment 3. The final, comprehensive Citywide salary schedule is attached to the Resolution as Exhibit B (Attachment 7). In addition to the salary range increases for Local 522, the salary schedule also includes salary adjustments established in the successor Memoranda of Understanding (MOUs) for the Sacramento-Sierra Building and Construction Trades (BLT), the International Association of Machinists and Aerospace Workers, Local Lodge No. 2182, District Lodge 190 (IAMAW), and the Plumbers and Pipefitters, Local 447 (L447). The salary schedule also includes a salary adjustment for the Director of Economic Development, increasing the annual salary range from $140,798.34 - $221,757.39 to $153,584.93 - $241,896.25. In addition, the schedule includes an increase to the Lead Events Associate hourly rate from $16.90 to $18.59 and an increase to the Senior Lifeguard hourly rate from $19.50 to $20.35.
Government Code § 54953
Government Code § 54953 requires that prior to taking final action, the legislative body orally report a summary of the recommendation for final action on salaries, salary schedules, or compensation paid in the form of fringe benefits for a local agency executive during the open meeting at which the action is taken. The Director of Economic Development meets the definition of a local agency executive under Government Code § 3511.1(d) because the position is not subject to the Meyers-Milias-Brown Act. Accordingly, a summary of the proposed compensation and salary schedule adjustment for the Director of Economic Development must be orally reported prior to final Council action.
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PolicyConsiderations
Policy Considerations: Approval of this action by the City Council is consistent with the City’s legal obligation under the Meyers-Milias-Brown Act, adheres to the City’s positive labor management relations concept, and provides labor stability.
The Sacramento City Code Section 4.04.020 and Council Rules and Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action. This provision will be waived by City Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of this action will establish new MOUs between the City and the specified Recognized Employee Organizations (REOs). Additionally, approval of this action will establish compliance with the California Code of Regulations § 570.5.
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FinancialConsiderations
Financial Considerations: The total cost of the proposed MOU for Fiscal Year (FY) 2025/26 is approximately $3.5 million with an ongoing annual cost at the end of the three-year term of approximately $14.5 million, as shown below and detailed in Attachments 4. For FY2025/26, the City will use prior year savings to cover the costs of the proposed MOU.
The FY2026/27 Approved Budget forecast shown below includes the proposed MOU costs. Although there is an additional cost of approximately $80,000 in FY2026/27, there is enough fund balance to cover the proposed MOU. However, starting in FY2027/28, the City will need to implement spending reductions and/or revenue increases in order to balance the City’s budget.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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