DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Association of Management Employees Deferring the Cost of Living Adjustment Increase Due the Pay Period Containing July 1, 2026, and Authorizing the City Manager to Execute the Agreement
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Association of Management Employees (HAME) deferring the Cost of Living Adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
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SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. Under the current agreement, HAME represented employees are due a COLA increase effective with the pay period including July 1, 2026. The City and HAME met and conferred in good faith and reached tentative agreement in which HAME represented employees will defer the COLA increase for all HAME represented classifications that are not entirely funded through enterprise funds. The COLA increase initially scheduled at the start of fiscal year 2026-27 will be deferred to the end of fiscal year 2026-27; effective the beginning of the pay period containing June 30, 2027. If approved, the proposed agreement would result in City savings of approximately $465,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the HAME bargaining unit beginning upon ratification of the tentative agreement by HAME through and including June 30, 2027.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
Attachment IV Side Letter of Agre...
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