HomeMy WebLinkAboutNB-5 - 25-602 - Compensation and Classification Updates - 1/20/2026CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #:25-602 Meeting Date:1/20/2026
TITLE:
COMPENSATION,CLASSIFICATION AND STAFFING UPDATES AND ADOPTION OF THE
MEMORANDUM OF UNDERSTANDING (MOU)AND SALARY RESOLUTIONS BETWEEN THE
CITY OF COSTA MESA (CITY)AND THE COSTA MESA CITY EMPLOYEES ASSOCIATION
(CMCEA),COSTA MESA DIVISION MANAGERS ASSOCIATION (CMDMA),CONFIDENTIAL
MANAGEMENT UNIT,CONFIDENTIAL UNIT,EXECUTIVE EMPLOYEES,PART TIME
EMPLOYEES AND POLICE RECRUITS
DEPARTMENT:CITY MANAGER’S OFFICE- HUMAN RESOURCES DIVISION
PRESENTED BY:KASAMA LEE, HUMAN RESOURCES MANAGER
CONTACT INFORMATION:KASAMA LEE, HUMAN RESOURCES MANAGER (714) 754-
5169
RECOMMENDATION:
Staff recommends the City Council:
1.Approve and adopt the Memorandum of Understanding between the City of Costa Mesa and
CMCEA (Attachment 1); and
2.Approve and adopt Resolutions Number 2026-xx establishing the Senior Community Services
Specialist,Lead Community Services Specialist,Senior Property and Evidence Specialist,
Senior Civilian Investigator and Fairview Park Senior Maintenance Technician classifications
and revising pay ranges for Community Outreach Supervisor (Attachment 2); and
3.Approve and adopt Resolution Number 2026-XX revising pay ranges for Neighborhood
Improvement Manager,Recreation Manager,Public Affairs Manager,Assistant Development
Services Director and renaming the Community Improvement Manager,Planning and
Sustainable Development Manager and Telecommunications Manager classifications and
updating benefits information for the CMDMA (Attachment 3); and
4.Approve and adopt Resolution Number 2026-XX updating benefits information for the
Confidential Management Unit (Attachment 4); and
5.Approve and adopt Resolution Number 2026-XX revising benefits information for the
Confidential Unit (Attachment 5); and
6.Approve and adopt Resolution Number 2026-XX revising pay ranges for City Manager,Police
Chief,Fire Chief,Deputy Police Chief and Assistant Fire Chief and benefits information for
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Executive Employees (Attachment 6); and
7.Approve and adopt Resolution Number 2026-XX revising pay ranges for Video Production
Aide and Reserve Public Safety Dispatcher and updating benefits information for Part Time
employees (Attachment 7); and
8.Approve and adopt Resolution Number 2026-XX revising pay ranges for Police Recruits
(Attachment 8); and
9.Authorize and approve staffing for following full-time position:Office Specialist II (Confidential)
in the City Clerk’s Division of the City Manager’s Department; and
10.Authorize the City Manager and members of the City’s Negotiation Team to execute the MOU.
BACKGROUND:
Negotiations with CMDMA were completed in 2024 and agreed upon provisions were included in
Resolution No.2024-49 approved by the City Council on November 19,2024.These provisions also
apply to non-represented employees in the Confidential Management Unit and Executive employees.
The current Agreement for a Successor MOU for CMCEA was approved by the City Council on June
17,2025 and the MOU is scheduled to expire on June 30,2026.Provisions of the agreement also
apply to non-represented employees in the Confidential Management Unit.
CMCEA’s MOU/Agreement includes language stating “the parties agree that either side can propose
MOU language to clean up provisions which are either outdated or in need of modification.Any
language changes must be mutually agreeable.”CMDMA also agreed to update language to clean
up any necessary provisions.
The MOU/Resolutions required some language updates to provide additional clarity and to comply
with Public Employees’Retirement Law (PERL),Public Employees’Pension Reform Act of 2013
(PEPRA), Government Code, Title 2 of the California Code of Regulations (CCR).
The Human Resources Division collaborated with each unit’s negotiation team regarding updated
language,which resulted in a new MOU (Attachment 1)for CMCEA,which incorporated the
provisions of the Agreement for Successor MOU and applicable existing language from the prior
MOU and side letters and updated Resolutions (Attachments 2-8)for CMCEA,CMDMA and
unrepresented employees.
The Human Resources Division engaged in extensive discussion with Department management and
the employee groups,resulting in the recommended classification,compensation and staffing
adjustments for CMCEA,CMDMA and unrepresented classification based upon negotiated provision
and management recommendations to support organizational needs.
ANALYSIS:
Language Updates
Pursuant to Government Code (Gov.)Section 20636 “compensation earnable”for CalPERS “Classic
Members”is defined as the pay rate and special compensation of the member.Government Code
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Members”is defined as the pay rate and special compensation of the member.Government Code
sections 20636(c)further specify that special compensation includes any payment received for
special skills,knowledge,abilities,work assignment,workdays or hours,or other work conditions.
Gov Code section 7522.34 and CCR section 571.1 defines “pensionable compensation”for CalPERS
“New (PEPRA) Members”.
CCR Section 571 also requires all items of special compensation be contained in a written labor
policy or agreement that has been adopted by the employer’s governing body and include the
conditions for payment for the special compensation item and cannot reference another document in
lieu of disclosing the item of special compensation.Examples of “special compensation”include,but
are not limited to,special assignment pay,holiday pay,bilingual pay,recruitment and retention
incentive pay, and certification and education pay.
Employees who are planning to retire often submit formal requests for a retirement estimate through
CalPERS.During this process,CalPERS often conducts a compensation/compliance review and will
notify the employee and employer of any special compensation items that the employer has reported
to CalPERS during the employee’s final compensation period that CalPERS believes does not meet
the criteria per CCR Section 571.This provides the employer with an opportunity to submit additional
or updated language to CalPERS for additional consideration prior to the employee’s official
retirement.Once an employee officially retires,CalPERS performs another
compensation/compliance review and will notify the retiree and employer if any reported
compensation does not meet the criteria per CCR Section 571.The employer/retiree would then
need to officially file an appeal for reconsideration.If,during the appeal process,it is determined that
the special compensation did not meet the criteria,then the special compensation is removed from
the retirees retirement benefit.
Special compensation has been negotiated in good faith with the City’s bargaining units.To avoid
special compensation from being removed from an employee’s retirement benefit,the City has
updated language in the MOUs to ensure compliance with the applicable PERL,PEPRA and CCR
sections.As special compensation cannot be referenced in another document,the applicable special
compensation provisions have been included in updated salary resolutions for unpresented
employees.
Additional language updates were made to clean up provisions that were outdated and/or needed
modification with agreement from the associations.
CMCEA Compensation, Classification and Staffing Updates
The CMCEA MOU contains a provision for CMCEA to request up to five (5)compensation inequity
studies each year.This allows for at least five (5)classifications in this bargaining unit to be analyzed
by Human Resources to identify whether there are discrepancies in compensation relative to the
prevailing market.A classification update may also be needed based on the duties and functions
being performed by the incumbent(s).Classification studies may also result in a recommendation to
adjust compensation.For 2024,CMCEA requested classification studies for Community Services
Specialist,Property &Evidence Specialist and Maintenance Worker (Parks and Community
Services).Due to the complexity of the studies,the City retained Gallagher Consulting to conduct
the classification studies for Community Services Specialist and Property & Evidence Specialist.
The Community Services Specialist classification encompasses several different assignment areas
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The Community Services Specialist classification encompasses several different assignment areas
including Police Department front desk,field investigations,special investigations and discovery.
Due to the training and experience necessary for some of the assignments,Gallagher recommended
expanding this classification into a series to include Community Services Specialist and Senior
Community Services Specialist.This flexibly staffing model is commonly used in other mid-to-large
police departments and would provide the Department the ability to acknowledge employees who
have developed additional training and experience and align assignments accordingly.Gallagher
also indicated that duties related to special investigations overlap with the city’s Civilian Investigator
classification.While the study did not reveal that the incumbent was performing the full duties of the
current Civilian Investigator classification,they recommended expanding the Civilian Investigator
classification into a series to include Civilian Investigator and Senior Civilian Investigator with the
current Civilian Investigator classification being retitled to Senior Civilian Investigator and creating a
lower level Civilian Investigator classification similar to the restructure of the Community Services
Specialist classification series.The Human Resources Division and CMCEA concurs with this
recommendation.
After a review of the consultant’s recommendation,the Police Department also recommended the
creation of a Lead Community Services Specialist classification.One of the assignments of the
Community Services Specialist includes supervision of several Police Cadets and this incumbent can
often serves as a trainer and/or “lead”to other Community Services Specialists.Due to these
additional duties performed,the Human Resources Division and CMCEA concur with this
recommendation.
The new Senior Community Services Specialist pay range will be set at approximately 6.2%above
the current Community Services Specialist pay range and the new Lead Community Services
Specialist pay range will be set approximately 6.2%above the new Senior Community Services
Specialist.The new Civilian Investigator classification will be aligned with the Senior Community
Services Specialist pay range.
The Property &Evidence Specialists are responsible for managing the receipt,storage,
documentation and disposal of property and evidence collected by the Police Department.Due to
the level of responsibility and/or detail involved in performing the tasks,Gallagher recommended
expanding this series to include a Property &Evidence Specialist and Senior Property &Evidence
Specialist.This flexibly staffing model is commonly used in other mid-to-large police departments and
would provide the Department the ability to place tenured staff,who perform the full scope of work of
the position and provide training to lower-level staff,in the Senior level of the series.The Human
Resources Division and CMCEA concurs with this recommendation.The new Senior Property &
Evidence Specialist pay range will be set at approximately 7.5%above the current Property &
Evidence Specialist pay range.
The Human Resources Division studied the Maintenance Worker/Senior Maintenance Worker
classification in the Parks and Community Services Department.The Maintenance Worker in the
Parks and Community Services Department oversees and coordinates the activities of Farview Park
which include monitoring water quality,safety and trail clearance and coordination with staff.
Contractors and the public regarding Fairview Park.The general Maintenance Worker/Senior
Maintenance Worker classification is generally used in the Public Works Department.The Human
Resources Division recommends creation of a Senior Fairview Park Maintenance Technician to
recognize the increased technical and complex nature of the duties associated with Fairview Park.
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File #:25-602 Meeting Date:1/20/2026
recognize the increased technical and complex nature of the duties associated with Fairview Park.
CMCEA concurs with this recommendation.The new Senior Fairview Park Maintenance Technician
pay range will be set at approximately 5% above the current Senior Maintenance Worker pay range.
The Human Resources Division is also recommending an approximate 22.4%adjustment for the
Community Outreach Supervisor position to address a compaction issue with the Management
Analyst/Senior Management Analyst classification which it supervises.This adjustment will provide
for a minimum of 5%differential with the classification’s subordinates which aligns with City policy
and classification best practices.
CMDMA Compensation and Classification Updates
As a result of the 2024 negotiations with CMDMA,the City also agreed to conduct a market analysis
study in 2025 for various classifications resulting in recommended market and internal alignment
approximate adjustments for the following classifications;
1.Neighborhood Improvement Manager - 21.0%
2.Recreation Manager - 11.43%
3.Public Affairs Manager - 5.35%
The Human Resources Division is also recommending a 4.09%adjustment for the Assistant
Development Services Director position to address a compaction issue with the Planning Manager
classification.This adjustment will provide for a minimum of 5%differential with the classification’s
subordinates, which aligns with City policy and classification best practices
In addition to the market adjustments,the Human Resources Division received requests to retitle
Community Improvement Manager to Code Enforcement Manager,Planning and Sustainable
Development Manager to Planning Manager and Telecommunications Manager to Emergency
Communications Manager in order to better align the position title with the duties being performed.
The Human Resources Division and CMDMA and Department management support and concur with
the recommendation.
Executive Compensation Updates
The Human Resources Division is also recommending adjustments to the salary and benefits for the
Deputy Police Chief,Police Chief,Assistant Fire Chief and Fire Chief classifications to address
compaction issues with the Police Captain position and to address internal alignment.These
adjustments include a 6%pay range adjustment for the Deputy Police Chief and Assistant Fire Chief
classifications and a 2%pay range adjustment for the Police Chief and Fire Chief classifications and
addition of 12.5%Longevity (Recruitment and Retention Incentive)Pay for the Police Chief and Fire
Chief.
The updated Executive Resolution also includes updates to the City Manager classification salary
and benefits to align with the provisions of the recently approved contract for the new City Manager.
Part-Time Compensation Updates
On September 17,2024,the City Council approved a new part-time classification of Reserve Senior
Public Safety Dispatcher as part of the efforts to recruit and retain public safety dispatchers.When
the CMCEA Agreement for a Successor Memorandum of Understanding was approved,those
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File #:25-602 Meeting Date:1/20/2026
the CMCEA Agreement for a Successor Memorandum of Understanding was approved,those
provisions also applied to any part-time employee in a CMCEA classification.As such,the 2%salary
increase applied to the lower-level,part-time Public Safety Dispatcher position,but was not applied to
the Reserve Public Safety Dispatcher position as the new position is not tied to CMCEA.The Human
Resources Division is recommending the current and future salary adjustments for CMCEA be
applied to the Reserve Public Safety Dispatcher position in order to maintain alignment within the
classification series.
A salary adjustment for the Video Production Aide classification is also being recommended as the
salary range for this classification has not been updated since 2019 other than application of the
minimum wage rate (currently $16.50 per hour).The recommended salary range will align with the
Intern classification (currently $23.00 - $27.96 per hour).
Police Recruit Compensation Updates
On August 6,2024,the City Council approved a new resolution converting Police Recruits to full-time
status and aligning applicable benefits from the Costa Mesa Police Association (CMPA)MOU to the
position.This resolution includes a provision to maintain a 16.30%salary differential with Step 1 of
the Police Officer classification.The 4%CMPA salary range adjustment approved by City Council
was also applied to Police Recruit but needs to be administratively updated on the salary resolution
as well.
Staffing Updates for the City Clerk’s Division
The City Clerk’s Division currently utilizes part-time Office Specialists and Interns to staff the
Concierge desk.This Concierge assignment provides employees and interns with a great
introduction to City Hall and municipal government operations as the position interacts all
departments and deals with a wide variety of public inquiries.However,most employees eventually
desire full-time employment which results in high turnover for the position as employees quickly seek
full-time employment in other City Departments or other agencies.This high turnover results in the
City Clerk’s Division having to constantly train new employees.The City Clerk’s Division has
requested to convert two part-time Concierge positions to one full-time Office Specialist II
(Confidential) position.
ALTERNATIVES:
The parties to these agreements/resolutions considered a variety of issues in the context of good
faith negotiations in accordance with Government Code Section 3500,et seq.(Meyer-Milias-Brown
Act).These agreements/resolutions represent the successful conclusion of labor negotiations and/or
discussions in addition to updating language for required compliance with the PERL,PEPRA,Gov.
Code and CCR,and alternatives need not be considered as a result of collaborative efforts
expended.
Do not approve the staff recommendation(s)regarding compensation and/or staffing updates and
direct staff accordingly.
FISCAL REVIEW:
The City’s CMCEA memorandum of understanding (MOU)allows for the bargaining unit to request
classification and compensation studies for up to five (5)classifications per year.The contractual
adjustment for CMCEA is estimated at $174,850 per fiscal year plus a one-time retroactive amount of
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adjustment for CMCEA is estimated at $174,850 per fiscal year plus a one-time retroactive amount of
$67,341 for a FY 2025/2026 total estimated impact of $242,191.Due to the contractual obligation,
the annual amount is included in the FY 2025/2026 budget;whereas the one-time retroactive amount
to July 1, 2024 will be covered with salary savings.
The compensation realignments for CMDMA are estimated at $119,794 per fiscal year.This will
impact four classifications.The Confidential Unit and Confidential Management Unit only has the
required CalPERS language cleanup and therefore has no estimated fiscal impact.
The Executive Group includes the Police Chief,Fire Chief,Deputy Police Chief,and Assistant Fire
Chief.Both Police and Fire Chiefs are recommended for a 2%base pay adjustment plus a 12.5%
longevity pay that is retroactive to July 1,2025.The Deputy Police Chief and Assistant Fire Chief are
recommended for a 6%base pay adjustment,plus an increase of 2.5%in longevity pay.The
estimated annual impact for this group is $226,731.
The City is also recommending to update part-time Video Production Aide and Reserve Senior Public
Safety Dispatch classification pay ranges.There is an estimated five (5)part time Reserve Senior
Public Safety Dispatch positions and one (1)part time Video Production Aide,totaling an estimated
$41,322 impact per fiscal year.
The City Clerk’s Division of the City Manager’s Office is requesting to convert two part time positions
to one full time Specialist II,increasing the City Manager’s Office full time equivalent (FTE)table of
organization to increase by one (1)to 46 FTE,and maintaining the Citywide FTE table inclusive of
part-time positions net neutral.The fiscal impact,mostly attributed to benefits and pension costs,total
an estimated $51,552.
As mentioned above,the CMCEA fiscal impact is included in the FY 2025/26 Adopted Budget.The
fiscal impact balance of $439,399 is covered by two funds:Behavioral Health Fund is estimated at
$75,530 and the General Fund’s impact is estimated at $363,869.There are sufficient revenue
increases to cover the estimated fiscal impact of the requested labor adjustments.
LEGAL REVIEW:
The City’s special counsel,Liebert Cassidy Whitmore (LCW)and City Attorney’s Office have
reviewed the agreements and this report and approved them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
The proposed Agreements support the City’s Strategic Plan Goals to Recruit and Retain High Quality
Staff and Strengthen the Public’s Safety and Improve the Quality of Life.
CONCLUSION:
Staff recommends the City Council:
1.Approve and adopt the Memorandum of Understanding between the City of Costa Mesa and
CMCEA (Attachment 1); and
2.Approve and adopt Resolutions Number 2026-xx establishing the Senior Community ServicesPage 7 of 8
File #:25-602 Meeting Date:1/20/2026
2.Approve and adopt Resolutions Number 2026-xx establishing the Senior Community Services
Specialist,Lead Community Services Specialist,Senior Property and Evidence Specialist,
Senior Civilian Investigator and Fairview Park Senior Maintenance Technician classifications
and revising pay ranges for Community Outreach Supervisor (Attachment 2); and
3.Approve and adopt Resolution Number 2026-XX revising pay ranges for Neighborhood
Improvement Manager,Recreation Manager,Public Affairs Manager,Assistant Development
Services Director and renaming the Community Improvement Manager,Planning and
Sustainable Development Manager and Telecommunications Manager classifications and
updating benefits information for the CMDMA (Attachment 3); and
4.Approve and adopt Resolution Number 2026-XX updating benefits information for the
Confidential Management Unit (Attachment 4); and
5.Approve and adopt Resolution Number 2026-XX revising benefits information for the
Confidential Unit (Attachment 5); and
6.Approve and adopt Resolution Number 2026-XX revising pay ranges for City Manager,Police
Chief,Fire Chief,Deputy Police Chief and Assistant Fire Chief and benefits information for
Executive Employees (Attachment 6); and
7.Approve and adopt Resolution Number 2026-XX revising pay ranges for Video Production
Aide and Reserve Public Safety Dispatcher and updating benefits information for Part Time
employees (Attachment 7); and
8.Approve and adopt Resolution Number 2026-XX revising pay ranges for Police Recruits
(Attachment 8); and
9.Authorize and approve staffing for following full-time position:Office Specialist II (Confidential)
in the City Clerk’s Division of the City Manager’s Department; and
10.Authorize the City Manager and members of the City’s Negotiation Team to execute the MOU.
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