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Home My WebLink AboutRESOLUTION 2026-014 N.C.S. 01-26-2026 Resolution No. 2026-014 N.C.S. Page 1 of 2 Resolution No. 2026-014 N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING AN AMENDMENT TO THE COMPENSATION PLAN FOR UNIT 8 WHEREAS, the positions in Unit 8 are not represented by any recognized employee organization; and WHEREAS, salaries, benefits, and working terms and conditions for these positions are memorialized in the Compensation Plan for Unit 8; and WHEREAS, the current Compensation Plan for Unit 8 was approved by the City Council in November 2023 and was effective July 1, 2023 – June 30, 2026; and WHEREAS, fiscal responsibility in the face of significant economic volatility and national uncertainty mandates difficult choices and a prudent financial management approach requires maintaining a balanced budget without incurring new, ongoing costs; and WHEREAS, in preparation for the upcoming term expiration and in light of fiscal uncertainty in fiscal year 2026-2027, staff recommend the proposed Amendment to the Compensation Plan for Unit 8; and WHEREAS, the City Manager has reviewed and concurs with the proposed Amendment to the Compensation Plan for Unit 8 and recommends the City Council ratify said Amendment; and WHEREAS, the proposed Amendment extends the term of the Compensation Plan by one year, includes a zero percent (0%) base wage increase, and miscellaneous language cleanup; and, WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(4), in that, approving this action does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because this is a personnel-related action that constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows: 1. Declares the above recitals to be true and correct and are incorporated into this resolution as findings of the City Council. 2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(4), in that, approving this action does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because this is a personnel-related action that constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. 3. Approves the Amendment to the Compensation Plan for Unit 8, attached to and incorporated as Exhibit A. Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Page 2 of 2 Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 26th day of January 2026, by the following vote: Approved as to form: __________________________ Eric Danly, City Attorney AYES: Mayor McDonnell, Vice Mayor DeCarli, Council Members Barnacle, Cader Thompson, Nau, Quint, Shribbs NOES: None ABSENT: None ABSTAIN: None ATTEST: ______________________________________________ Caitlin Corley, City Clerk ______________________________________________ Kevin McDonnell, Mayor Attachment: Exhibit A - Unit 8 Comp Plan Amendment Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Exhibit A Page 1 of 5 AMENDMENT TO THE COMPENSATION PLAN – DEPARTMENT DIRECTORS AND UNREPRESENTED MANAGEMENT, UNIT 8 Unit 8 consists of department heads and other unrepresented management positions. The individuals in this unit serve in at-will positions at the pleasure of the City Manager and are compensated pursuant to the Compensation Plan for the unit, which is approved by the City Council. Employees in Unit 8 are not represented by a recognized employee organization. The existing Unit 8 Compensation Plan (“Plan”) is set to expire on June 30, 2026. In preparation for the upcoming expiration, the following updates will be made to the Unit 8 Plan, including an amendment to Section 23 which was made in 2013 but inadvertently left out: SECTION 1 – TERM OF COMPENSATION PLAN This Compensation Plan shall be effective commencing July 1, 20232026 and ending June 30, 20262027. SECTION 2 – SALARIES 2.1 Salaries Salary Ranges shall be as specified in Exhibit “A.” (A) Across-the-Board Cost of Living Increases Effective the first full pay period following July 1, 2023, all unit employees shall receive a four percent (4.0%) base wage increase. The City Manager is authorized in their discretion to amend and/or reissue the Unit 8 Compensation Plan to provide up to an additional three percent (3.0%) base wage increase for all Unit 8 positions to be effective no sooner than the first full pay period following July 1, 2024. Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Exhibit A Page 2 of 5 The City Manager is authorized in their discretion to amend and/or reissue the Unit 8 Compensation Plan to provide up to an additional three percent (3.0%) base wage increase for all Unit 8 positions to be effective no sooner than the first full pay period following July 1, 2025. Effective the first full pay period following July 1, 2026, all unit employees shall receive a zero percent (0%) base wage increase. SECTION 5 – VACATION 5.5 Vacation – Payout During the month of December of each year, each employee who has at least one hundred and twenty (120) hours of accrued but unused vacation may make an irrevocable election to cash out vacation hours in the following calendar year. Vacation payouts under this section will be made in October March of the tax year following the election. The employee must have a minimum balance of forty (40) hours after the cash out of vacation. If the employee’s requested amount does not leave a minimum forty (40) hours of vacation remaining at the time of cash out, the employee’s requested vacation cash out will be reduced to allow the remaining minimum balance to be maintained. SECTION 22 – HEALTH BENEFITS – ACTIVE EMPLOYEES 22.5 Additional Contribution – Effective January 1, 2026 The 2026 CalPERS premium for Kaiser – Region 1 and required 2026 PEMHCA contribution are unknown. The amount of the City’s additional contribution for current employees and their covered family members shall be $956.52 for employee only, $2,066.93 for employee plus one, and $2,733.19 for employee plus two or more. These amounts do not include the City PEMHCA contribution identified in 22.1. The City’s additional contribution shall not exceed these amounts unless and until a different amount is defined by the Compensation Plan. Coverage 2026 Health Rates (Based on 2026 Region 1- Kaiser Rates) PEMHCA Contribution (Added to the City's Benefit Contribution) 2026 Health Rate Less the PEMHCA Contribution City's Benefit Contribution of 95% 2026 City’s Total Contribution Rate Employee Contribution KAISER Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Exhibit A Page 3 of 5 Employ ee Only $1,168.86 $162.00 $1,006.86 $956.52 $1,118.52 $50.34 Employee + 1 $2,337.72 $162.00 $2,175.72 $2,066.93 $2,228.93 $108.79 Employ ee + 2 or more $3,039.04 $162.00 $2,877.04 $2,733.19 $2,895.19 $143.85 SECTION 23 – HEALTH BENEFITS – RETIRED EMPLOYEES 23.3 CalPERS Annuitant – PEMHCA Health Benefits In accordance with the PEMHCA provisions, if an employee is a CalPERS annuitant and receives health benefits under the PEMHCA, the employee is eligible to receive the City’s PEMHCA contribution amount specified in Section 23.5 below, regardless of the number of years of service with the City of Petaluma. 23.4 Less Than 20 Years of Service – Not Receiving PEMHCA Health Benefits A retired employee with less than twenty (20) years of service with the City of Petaluma who does not meet the definition of a CalPERS annuitant (as defined in Section 23.1) or who is not enrolled in the CalPERS health benefit program does not receive any retiree benefit from the City. Less Than 12 Years of Service – Not Receiving PEMHCA Health Benefits A retired employee with less than twelve (12) years of service with the City of Petaluma who is not enrolled in the CalPERS health benefit program does not receive any retiree benefit from the City. 23.5 Less Than 20 Years of Service – Receiving PEMHCA Health Benefits A retired employee with less than twenty (20) years of service with the City of Petaluma who is a CalPERS annuitant as defined in Section 23.1 and enrolled in the CalPERS health benefit program is eligible to receive the minimum PEMHCA contribution as set by CalPERS. The City’s PEMHCA contribution amount is deducted from the retiree’s monthly health premium and paid to CalPERS directly by the City. Less Than 12 years of Service – Receiving PEMHCA Health Benefits A retired employee with less than twelve (12) years of service with the City of Petaluma who is a CalPERS annuitant as defined in Section 23.1 and enrolled in the CalPERS health benefit program is eligible to receive the minimum Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Exhibit A Page 4 of 5 PEMHCA contribution as set by CalPERS. 23.6 12-19 Years of Service – Not Receiving PEMHCA Health Benefits A retired employee with twelve to nineteen (12-19) years of service with the City of Petaluma who is not enrolled in the CalPERS health benefits program shall receive direct payments in the amount of one-hundred and twenty-eight dollars ($128.00) each month, effective the first month following the expiration of health benefit coverage. 23.7 12-19 Years of Service – Receiving PEMHCA Health Benefits A retired employee with twelve to nineteen (12-19) years of service with the City of Petaluma who is a CalPERS annuitant as defined in Section 23.1 and enrolled in the CalPERS health benefit program is eligible to receive the minimum PEMHCA contribution as set by CalPERS. The City’s PEMHCA contribution amount is deducted from the retiree’s monthly health premium and paid to CalPERS directly by the City. It is the responsibility of the retiree to notify the City in writing if he or she is no longer participating in the CalPERS health benefit program. Following receipt of the written notice, the City will commence direct payment of the one-hundred and twenty-eight dollars ($128.00) at the beginning of the following month. 23.86 20 Years or More of Service – Not Receiving PEMHCA Health Benefits A retired employee with twenty (20) or more years of service with the City of Petaluma who is a CalPERS annuitant as defined in Section 23.1 and who is not enrolled in the CalPERS health benefits program shall receive direct payments in the amount of one-hundred-forty dollars ($140.00) each month, effective the first month following the expiration of health benefit coverage. [Renumber remaining section(s)] SECTION 28 – LIFE INSURANCE The City shall provide employees with life insurance in the amount of one and one-half (1.5) times the employee’s annual salary rounded to the nearest $1,000 even dollar, not to exceed two-hundred thousand dollars ($200,000.00). Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8 Resolution No. 2026-014 N.C.S. Exhibit A Page 5 of 5 CITY OF PETALUMA Peggy Flynn, City Manager Date Docusign Envelope ID: 769DA883-DA71-4C0F-8237-35F34D1E54D8