REPORT TO COUNCIL
SUBJECT
Title
Adopt Resolutions Approving and Adopting Updated Classified, Unclassified, and As-Needed Salary Plans, Including Negotiated Wage Adjustments Reflecting Cost-of-Living Adjustments for Applicable Classifications Pursuant to SB 707 Requirements
Report
BACKGROUND
Adoption of a Resolution Approving and Adopting the Updated Classified and Unclassified Salary Plan
Section 9 of the Personnel and Salary Resolution requires City Council approval of compensation plans for classified and unclassified positions. In addition, the City of Santa Clara contracts with the California Public Employees’ Retirement System (CalPERS) to provide retirement benefits for employees in both classified and unclassified positions. The City of Santa Clara is a contracting agency with CalPERS and is required to comply with its requirements. CalPERS regulations require the City approve and adopt a payrate limited to the amount listed on a pay schedule. When the City makes modifications to the salary schedules for its classified, unclassified or as-needed positions, the City Council must approve and adopt the publicly available salary schedules to comply with the CalPERS requirements stated in California Code of Regulations (CCR) section 570.5. If the City Council does not approve these resolutions, the City will be non-compliant with CalPERS record keeping and reporting requirements. The proposed Council action satisfies these applicable requirements.
The updated classified and unclassified salary plans reflect the negotiated and Council approved Cost of Living Adjustments (COLA) included in each agreement for the Santa Clara Firefighters, International Assoc. of Firefighters, Local 1171 (hereafter, “Unit 1”); the Police Officers Association (hereafter, “Unit 2”); the International Brotherhood of Electrical Workers, Local Union 1245 (hereafter, “Unit 3”); the City of Santa Clara Employees Association (hereafter, “Unit 578”); the American Federation of State, County, and Municipal Employees, Local 101 (hereafter, “Unit 6”); the Unclassified Miscellaneous Management (hereafter, “Unit 9”); the Unclassified Electric Utility Management Employees Association (hereafter, “Unit 9E”); the Unclassified Police Management (hereafter, “Unit 9A”); the Unclassified Fire Management (hereafter, “Unit 9B”); and the Public Safety Non-Sworn Employees Association (hereafter, “Unit 10”). All classifications that are covered by the listed bargaining units shall receive an automatic wage increase as described below effective December 20, 2026.
Additional administrative changes are being brought forward for the Classified and Unclassified Salary Plans.
Adoption of a Resolution Approving and Adopting the Updated As-Needed Salary Plan
The City is required to comply with Section 9 of the Personnel and Salary Resolution, as well as California Code of Regulations Section 570.5 for as-needed salaries, just as it would for the classified salaries described above. The As-Needed Salary Plan has been modified to reflect the change in the City of Santa Clara minimum wage effective January 1, 2027. The minimum wage for the City of Santa Clara will be increased to $19.25/hour, which is based on the Regional Consumer Price Index per the Minimum Wage Ordinance. In addition, the City is bringing forward a request to adjust the Crossing Guard (Job Code 362) classification to a flat rate of $30.00.
SB 707 - Government Code Section 54953(d)(3)
Effective July 1, 2026, Senate Bill 707 (SB 707) amended the Ralph M. Brown Act to expand the requirement for legislative bodies to orally report a summary of recommended compensation actions affecting local agency executives, department heads, and other similar administrative officers prior to taking final action during an open meeting.
The proposed Unclassified Salary Plan includes classifications designated as department heads and local agency executives within Units 9, 9A, and 9B. Accordingly, staff will provide an oral summary of the proposed salary range adjustments affecting these classifications prior to City Council final action. The salary revisions are in accordance with negotiated wage increased previously approved by Council.
DISCUSSION
Adoption of a Resolution Approving and Adopting the Updated Classified and Unclassified Salary Plans
The Classified and Unclassified Salary Plans have been modified to reflect negotiated wage increases for several bargaining groups. All classifications that are covered by the respective bargaining units shall receive an automatic increase effective the pay period beginning on December 20, 2026, which is the first pay period of calendar year 2027. The bargaining units and their respective wage increases are:
• Santa Clara Firefighters, International Association of Firefighters, Local 1171 (Unit 1): wage increase of approximately 4.5%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about April 21, 2026.
• Police Officers Association (Unit 2): wage increase of approximately 3.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about July 15, 2025.
• International Brotherhood of Electrical Workers, Local Union 1245 (Unit 3): wage increase of approximately 5.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about June 4, 2024.
• City of Santa Clara Employees’ Association (Unit 578): A wage increase of approximately 3.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about June 4, 2024.
• American Federation of State, County, and Municipal Employees, Local 101 (Unit 6): A wage increase of approximately 3.5%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about January 14, 2025.
• Unclassified Miscellaneous Management (Unit 9) & Unclassified Electric Utility Management Employees Association (Unit 9E): A wage increase of approximately 3.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about November 19, 2024.
• Unclassified Police Management (Unit 9A): A wage increase of approximately 3.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about November 19, 2024.
• Unclassified Fire Management (Unit 9B): A wage increase of approximately 4.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU) on or about July 14, 2026.
• Public Safety Non-Sworn Employees Association (Unit 10): A wage increase of approximately 4.0%, except Public Safety Dispatcher classifications (Public Safety Dispatcher I (Job Code 339), Public Safety Dispatcher II (Job Code 340), and Senior Public Safety Dispatcher (Job Code 725) who are to receive a wage increase of approximately 3.0%. Previously approved by City Council in open session as part of an agreement on a successor Memorandum of Understanding (MOU on or about August 19, 2025.
Additionally, effective December 20, 2026, the City is proposing to inactivate the Recreation Coordinator - Therapeutics (Job code 693A) and Financial Analyst (Job Code 472) classifications on the Classified Salary Plan because they are not budgeted or filled.
City Council approved various actions on the Unclassified Salary Plan at the June 23, 2026 Council meeting. An administrative error inadvertently changed the minimum salary rate for the Electric Division Manager classifications in the Unclassified Salary Plan. The intended action was to update only the maximum salary rate. The minimum rate will remain at $224,921.16 annually. These items are being brought forward to memorialize the revisions on the Unclassified Salary Plan effective July 5, 2026, and August 16, 2026.
SB 707 - Government Code Section 54953(d)(3)
Pursuant to Government Code Section 54953(d)(3), staff is required to orally report a summary of recommended compensation adjustments affecting local agency executives and department heads prior to Council taking final action.
The proposed Unclassified Salary Plan includes an approximate three percent (3%) cost-of-living adjustment to the salary ranges for classifications represented by Units 9, 9A, and 9E, and an approximate four percent (4%) cost-living-adjustment to the salary ranges for classifications represented by Unit 9B, including applicable executive and department head classifications, effective December 20, 2026. The salary revisions are in accordance with negotiated wage increased previously approved by Council. The updated salary ranges are reflected in the salary plan attached to the Report to Council.
The classifications impacted by SB 707 are shown below:
Pursuant to the Memorandum of Understanding (MOU) with the Unclassified Miscellaneous Management (Unit 9), and which terms apply to the Unclassified Electric Utility Management Employees Association (Unit 9E), which was approved by City Council on or about November 19, 2024, an approximate 3% cost-of-living adjustment to the salary ranges for represented classifications, including the following classifications:
• Assistant City Clerk (Job Code 010) from $175,513.92 - $227,115.00 to $180,779.28 - $233,928.48,
• Assistant City Librarian (Job Code 012) from $200,892.12 - $259,981.20 to $206,918.88 - $267,780.60
• Assistant City Manager (Job Code 016) from $297,529.08 - $385,019.76 to $306,454.92 - $396,570.36,
• Assistant Director (Job Code 133) from $214,395.84 - $280,323.72 to $220,827.72 - $288,733.44,
• Assistant Director of Community Development (Job Code 038) from $227,063.16 - $295,181.52 to $233,875.08 - $304,036.92,
• Assistant Director of Electric Utility (Job Code 021) from $272,169.36 - $352,222.44 to $280,334.40 - $362,789.16,
• Assistant Director of Public Works/City Engineer (Job Code 071) from $238,872.96 - $309,138.24 to $246,039.12 - $318,412.44,
• Assistant to the City Manager (Job Code 028) from $211,749.84 - $282,240.60 to $218,102.28 - $282,240.50,
• Chief Assistant City Attorney (Job Code 037) from $265,142.88 - $343,138.68 to $273,097.20 - $353,432.88,
• Chief Operating Officer (Job Code 311) from $342,169.56 - $442,796.28 to $352,434.60 - $456,080.16,
• City Librarian (Job Code 066) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56,
• Deputy City Clerk (Job Code 178) from $129,774.00 - $167,957.04 to $133,667.28 - $172,995.72,
• Deputy City Manager (Job Code 079) from $232,930.80 - $301,417.56 to $239,918.76 - $310,460.04,
• Deputy Director (Job Code 176) from $188,559.48 - $256,464.89 to $194,216.28 - $264,158.76,
• Director of Community Development (Job Code 090) from $270,756.12 - $350,434.92 to $278,909.76 - $360,948.00,
• Director of Economic Development and Sustainability (Job Code 085) from $247,519.20 - $319,300.08 to $254,944.80 - $328,879.08,
• Director of Finance (Job Code 087) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56,
• Director of Human Resources (Job Code 088) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56,
• Director of Information Technology/CIO (Job Code 089) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56,
• Director of Public Works (Job Code 091) from $286,429.44 - $370,673.16 to $295,022.28 - $381,793.32,
• Director of Silicon Valley Power (Job Code 108) from $342,169.56 - $442,796.28 to $352,434.60 - $456,080.16,
• Director of Water and Sewer Utilities (Job Code 102) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56,
• Electric Utility Chief Operating Officer (Job Code 116) from $299,393.52 - $387,456.36 to $308,375.28 - $399,080.04,
• Parks and Recreation Director (Job Code 132) from $270,247.20 - $349,725.84 to $278,354.64 - $360,217.56.
Pursuant to the Memorandum of Understanding (MOU) with the Unclassified Police Management (Unit 9A), which was approved by City Council on or about November 19, 2024, an approximate 3% wage increase cost-of-living adjustment to the salary ranges for represented classifications, including the following classification:
• Assistant Police Chief (Job Code 027) from $318,420.12 - $396,218.52 to $327,972.72 - $408,105.12.
Pursuant to the Memorandum of Understanding (MOU) with the Unclassified Fire Management (Unit 9B), which was approved by City Council on or about July 14, 2026, an approximate 4% wage increase cost-of-living adjustment to the salary ranges for represented classifications, including the following classifications:
• Fire Chief (Job Code 117) from $327,402.48 - $423,675.12 to $340,498.56 - $440,622.12, and
• Assistant Fire Chief (Job Code 024) from $313,083.00 - $405,186.96 to $325,606.32 - $421,394.40,
• Deputy Fire Chief (Job Code 080) from $284,619.60 - $368,354.52 to $296,004.36 - $383,088.72.
Adopt a Resolution Approving and Adopting the Updated As-Needed Salary Plan
The As-Needed Salary Plan is recommended to be modified as follows, in order to comply with the City’s Minimum Wage Ordinance, increase from $18.70 per hour to $19.25 per hour, effective January 1, 2027:
• Crossing Guard (Job Code 362) - with a flat rate of $30.00,
• Emergency Medical Technician (Job Code 100) - with an hourly range of $19.25 - $20.19,
• Instructor/Lifeguard (Job Code 501) - with an hourly range of $19.25 - $26.81,
• Laborer (Job Code 502) - with an hourly range of $19.25 - $24.85,
• Law Clerk I (Job Code 524) - with an hourly range of $19.25 - $20.16,
• Library Page (Job Code 542) - with a flat hourly rate of $19.25,
• Library Technology Aide (Job Code 537) - with a flat hourly rate of $19.25,
• Nutrition Meal Server (Job Code 608) - with an hourly range of $19.25 - $20.81,
• Records Assistant (Job Code 606) - with a flat rate of $19.25,
• Recreation Instructor (Job Code 699) - with an hourly range of $19.25 - $30.91,
• Recreation Leader I (Job Code 681) - with an hourly range of $19.25 - $21.56,
• Recreation Office Assistant (Job Code 698) - with an hourly range of $19.25 - $21.56,
• Recreation Specialist (Job Code 686) - with an hour range of $19.25 - $27.57,
• Sr Library Page (Job Code 756) - with an hourly range of $19.25 - $20.96,
• Student Intern I (Job Code 497) - with an hourly range of $19.25 - $22.00; and
• Temporary Employee (Job Code 349) - with an hourly range of $19.25 - $214.06.
Due to recruitment challenges, the Crossing Guard (Job Code 362) is being converted to a flat hourly rate. The Instructor/Lifeguard (Job Code 501) maximum rate is being increased by approximately 6% in order to match the highest paid comparator agency to aid in recruitment efforts.
The changes to the As-Needed Salary Plan will be effective on December 20, 2026, the pay period that coincides with the January 1, 2027, effective date.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The general wage increases have a salary cost of approximately $7.53 million (all funds), of which approximately $4.82 million is in the General Fund and $2.71 million is in other funds. These increases were factored into the FY 2026/27 Adopted Operating Budget.
|
Bargaining Unit |
General Fund |
All Funds |
|
Santa Clara Firefighters (Unit 1) |
$1.42 M |
$1.48 M |
|
POA (Unit 2) IBEW (Unit 3) |
$1.16 M $0.00 M |
$1.16 M $1.01 M |
|
Employees Association (Unit 578) |
$0.71 M |
$1.31 M |
|
AFSCME (Unit 6) |
$0.32 M |
$0.53 M |
|
Unclassified Misc. Management (Unit 9) |
$0.66 M |
$1.11 M |
|
Unclassified Police Management (Unit 9A) Unclassified Fire Management (Unit 9B) Unclassified Electric Utility Management (Unit 9E) |
$0.07 M $0.14 M $0.00 M |
$0.07 M $0.15 M $0.34 M |
|
PSNSEA (Unit 10) |
$0.34 M |
$0.37 M |
|
TOTAL |
$4.82 M |
$7.53 M |
The fiscal impact to the FY 2026/27 Operating Budget to update as-needed class specifications that are covered under the City’s Minimum Wage Ordinance increase from $18.70 per hour to $19.25 per hour, effective December 20, 2026, to coincide with the pay period that includes January 1, 2027, is approximately $25,945. The fiscal impact to update the as-needed crossing guard to $30 per hour is approximately $151,182.
These additional costs will be absorbed by the respective departments’ existing FY 2026/27 budgets for FY 2026/27 and will be factored into the FY 2027/28 and FY 2027/28 budget. Staff will continue to monitor departmental budgets throughout the fiscal year and bring forward any necessary budget amendments for City Council approval at a later date.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt a Resolution to approve and adopt the revised salary plans for various classified, unclassified, and as-needed positions (effective December 20, 2026) to satisfy the requirements of California Code of Regulations Section 570.5, including applicable department head and executive classifications, in accordance with the approved compensation provisions per SB 707; and
2. Adopt a Resolution to approve and adopt the revised salary plan for various unclassified positions (effective 2026) to satisfy the requirements of California Code of Regulations Section 570.5.
Staff
Reviewed by: Ashley Lancaster, Acting Director of Human Resources
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Classified Salary Plan eff 12-20-2026 (for Council 11-10-2026)
2. Unclassified Salary Plan eff 12-20-2026 (for Council 11-10-2026)
3. As-Needed Salary Plan eff 12-20-2026 (for Council 11-10-2026)
4. City of Santa Clara Minimum Wage Ordinance No. 1969
5. Resolution for Updated Classified, Unclassified, and As-Needed Salary Plans (for Council 11-10-2026) REV
6. Unclassified Salary Plan eff 07-05-2026 (for Council 07-07-2026)
7. Resolution for Updated Unclassified Salary Plan eff 07-05-2026 (for Council 07-07-2026) REV
8. Unclassified Salary Plan eff 08-16-2026 (for Council 08-18-2026)
9. Resolution for Updated Unclassified Salary Plan eff 08-16-2026 (for Council 08-18-2026) REV