Agenda Item Wording:
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Side letter agreement with employee group - Adopt a side letter agreement approving the proposed changes to the Confidential Group Compensation and Benefit Summary and authorize the City Manager to execute same.
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Prepared by: Shonna Oneal, Administrative Services Director, Shonna.Oneal@visalia.gov, 713-4053, Amy Powell, Human Resources Manager, Amy.Powell@visalia.gov, 713-4300
Department Recommendation: It is recommended that the Visalia City Council authorize the City Manager to execute and implement a side letter agreement approving the proposed changes to the Confidential Group Compensation and Benefit Summary. The changes will be documented in a side letter agreement until labor negotiations are undertaken in 2027, at which time they will be incorporated into the City of Visalia Confidential/ Unrepresented Group Compensation and Benefit Summary.
Summary:
An oversight in the Confidential Group Compensation and Benefit Summary was discovered and brought to Council in Closed Session on December 5, 2025. It is being corrected with a side letter agreement, along with other small changes to circumstances in the agreement, including a title change for the Communications and Brand Manager and the addition of the Fire Deputy Chief position and the corresponding benefits associated with that position, until they can be incorporated into the City of Visalia and the City of Visalia Confidential/ Unrepresented Group Compensation and Benefit Summary after the next labor negotiations.
Background Discussion:
It recently came to Staff’s attention that there was a likely oversight in the compensation and benefit summary related to the longevity pay approved for the Battalion Chief classification. All sworn fire personnel in Group G (Fire) are eligible for longevity pay based on all of their sworn, paid, full-time experience. However, the addition of “all experience,” not just experience with the City of Visalia, was negotiated with Group G after the Confidential Group agreement was reached. All of Group G (Fire) members receive this compensations. All current and recent Battalion Chiefs receive full longevity pay based on their experience with the City of Visalia.
However, the Confidential Group agreement includes full pay for all experience for the Police Captains, and the City Manager believes, based on the conversations at the time, that the Council intended to have all Battalion Chiefs receive the same longevity provision, although at a reduced rate, 2% per five years’ experience versus 2.5% per year for Police. The omission was not caught at the time of the negotiations. The City Manager requested that this issue be corrected now, prior to the hiring of the new Battalion Chief. Without this correction, there will be a real issue with compaction.
Although it is unusual for Staff to propose a mid-cycle revision to an agreement; given that this was a perceived oversight, the City Manager has requested this correction now.
The side letter agreement also includes other small changes to circumstances in the agreement, including the addition of the Fire Deputy Chief and a title change for the Communications and Brand Manager. Staff recommends that all proposed changes be included in the revised side letter agreement.
Staff met with or talked with the members of the Confidential Group, informed them of the proposed changes, the rationale for the unusual mid-cycle revision, and their right to question or protest the changes. They were asked to contact the Human Resources Manager by the end of the day on Tuesday, December 2, 2025, if they have any concerns. No such concerns were raised. They were also told they would receive a copy of the side letter agreement if approved by Council.
Fiscal Impact: No fiscal impact associated with adopting this side letter agreement. The current budget includes the longevity pay calculation.
Prior Council Action: 12/05/2025
Other: N/A
Alternatives: Maintain the agreement in its current form and have an issue of compaction between the new Battalion Chief and some of the Fire Captains.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt a side letter agreement approving the proposed changes to the Confidential Group Compensation and Benefit Summary and authorize the City Manager to execute same.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 1/20/2026
Attachments: Proposed side letter agreement Between the City of Visalia and the Confidential/ Unrepresented Group