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 Police Management Unit Modifying Cost of Living Adjustment Increases 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 Police Management Unit (HPMU) modifying the Cost-of-Living Adjustment (COLA) increases in fiscal years 2027-28; 2028-29; and 2029-30 to create salary savings through the term of the current contract.
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SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and HPMU met and conferred in good faith and reached tentative agreement in which COLA increases for all HPMU represented classifications will be modified for FY 2027-28 and 2028-29 and 2029-30. The COLA increases are initially scheduled for a minimum of five percent (5%) and maximum of seven percent (7%) in the pay periods including July 1, 2027, and July 1, 2028; and based on salary survey in the pay period containing July 1, 2029. The parties agree to modify the COLA increase to four and one-half percent (4.5%) in the pay periods including July 1, 2027, and July 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing July 1, 2029. If approved, the proposed agreement would result in a General Fund savings of approximately $60,000 through the remaining term of the contract.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
Attachment IV Side Letter of Agreement