HomeMy WebLinkAboutItem 8.2 Report on the Cost-of-Living Adjustment Methodology for City Employee Compensation Agenda Item 8.2
STAFF REPORT
CITY COUNCIL
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DATE: September 1, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
Report on the Cost-of-Living Adjustment Methodology for City Employee
Compensation
Prepared by: Sarah Monnastes, Human Resources Director/Risk Manager
EXECUTIVE SUMMARY:
The City Council will receive a report on the City’s cost-of-living adjustment (COLA) practice
and methodology. The report includes information about the annual escalators provided to City
contractors as well as a look at how other Bay Area cities handle compensation increases.
This information was requested by the City Council, noting that the 1.7 percent COLA received
by employees in 2026 was low relative to the Consumer Price Index change from late 2025
through spring 2026.
STAFF RECOMMENDATION:
Receive the report.
FINANCIAL IMPACT:
There is no action contemplated in this report; it is informational only. The 1.7 percent cost-of-
living adjustment (COLA) given to City employees effective July 1, 2026 equates to a total of
$337,375 in salary and benefit costs.
DESCRIPTION:
During Item 9 of the August 18, 2026 meeting, the City Council requested that Staff bring back
an informational item on the most recent annual cost-of-living adjustment (COLA) received by
City employees, in light of it being low relative to the Consumer Price Index change from late
2025 through spring 2026.
This report provides contextual information about Dublin’s Employee Process that governs
COLAs, describes the City’s COLA methodology, and for reference, discusses annual
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escalators provided in the City’s agreements with external parties, and looks at how other Bay
Area agencies handle compensation increases.
Dublin’s Employee Process
Every three to five years, the City Manager engages with permanent City employees to review
the City’s compensation and benefits program and establish a framework for salary and
benefits for the coming years. This practice, known as the Employee Process, provides
employees an opportunity to share feedback on the City’s current offerings and identify areas
for potential change or enhancement.
As part of this process, the City also evaluates its compensation structure and market
competitiveness, including through comprehensive salary survey data. Employee feedback,
market data, fiscal considerations, and organizational needs are considered together in
developing recommendations for the City’s future compensation and benefits program. Any
changes agreed to during the Employee Process and approved by the City Council are
reflected in the Employee Benefit Plan, which is the document that describes all benefits
received by employees.
The next Employee Process will begin this fall for adjustments effective July 1, 2027 for a
period of up to five years.
COLA Methodology
Tying COLA to CPI-W
Dublin’s Employee Process has always included a discussion on annual COLAs or “market
rate adjustments” to align compensation with current external economic conditions or industry
standards. Prior to 2012, the City’s COLAs were based on an annual survey of classifications;
while Staff was unable to determine exactly why this practice changed, it is suspected that as
the City grew, the annual classification survey became too labor-intensive to sustain.
Since 2012, the City has tied COLAs to the Consumer Price Index (CPI), specifically the CPI-
W (All Urban Wage Earners and Clerical Workers) for the San Francisco-Oakland-San Jose
region (renamed San Francisco-Oakland-Hayward in 2018). The CPI-W is the older of the two
main indexes published by the Bureau of Labor Statistics (BLS), dating back to 1913. It reflects
the purchasing patterns of a specific slice of the population: households where more than half
of income comes from clerical or hourly wage work, which is roughly 28 percent of the country.
In 1978, BLS added a broader index, the CPI-U (All Urban Consumers), covering closer to 90
percent of the population, including retirees, self-employed people, and professionals. Despite
CPI-U being more widely cited, Dublin has always used CPI-W to set its COLAs. For
reference, a 10-year look at CPI-W and CPI-U is included as Attachment 2.
Floor/Ceiling and Measurement Month
Dublin’s Employee Benefit Plan has also historically provided minimum and maximum limits for
its COLAs that are determined through the Employee Process. The current limits are a floor of
1 percent and a ceiling of 3.5 percent, effective July 1, 2023 to June 30, 2027.
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Furthermore, the Employee Benefit Plan specifies that the COLA will be based on the CPI-W
change from February to February each year. Staff could not determine why that month was
selected but suspects it was a decision based on the timing of the annual budget preparation.
The San Francisco-Oakland-Hayward metro area CPI is published every other month, in
February, April, June, August, October, and December. An April or later reading may not have
left enough time, in the past, to build the number into the next fiscal year’s budget.
2026 COLA
In line with the February 2026 CPI-W, Dublin employees received a 1.7 percent COLA
effective July 1, 2026. This was an unusually low adjustment compared to prior years, and it is
particularly notable that the CPI changes immediately before and after February came in
significantly higher: 3.1 percent in December, 3.3 percent in April, and 3.4 percent in June.
This suggests February landed on an outlier data point rather than reflecting a genuine,
sustained drop in inflation. In Fiscal Year 2026-27, the COLA equated to $337,375 in salary
and benefit costs (one percentage point equates to $184,115).
Annual Contract Escalators
During the Item 9 request for this report, the City’s contracts were mentioned in the context of
annual escalators as compared to the employee COLA. Dublin engages in many multi -year
agreements, almost all of which have a built-in annual escalator. In the last two years, the
majority of these escalators have been tied to CPI, to a maximum of 3 percent. The CPI month
used varies: it could be December, or it could be the month closest to the beginning of the
contract term. Upon expiration, multi-year contracts are re-bid and new rates are set.
There are some exceptions to this: for example, in a time-and-materials agreement, hourly
rates for certain in-demand positions (e.g., high-level engineering positions) are dictated by the
market for the work. At times, those rates within the City’s contracts have increased much
more than CPI.
Practices of Other Agencies
To provide additional context, Staff looked at how the City’s compensation survey comparator
agencies handle general wage increases for employees outside of police and fire: Brentwood,
Hayward, Livermore, Milpitas, Newark, Pleasanton, San Leandro, San Ramon, Tracy, Union
City, Walnut Creek, and Alameda. All of them use a flat, negotiated percentage rather than a
CPI formula. Alameda is the outlier, using a Base Revenue Index (BRI) rather than a cost -of-
living measure. This method ties compensation increases to the City’s own revenue growth
rather than to any price index. For reference, Table 1 provides the most recent COLAs
received by the City’s comparator agencies.
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Table 1. Comparator Agency Increases for 2026
Agency Effective Date Increase
Alameda 1 July 1, 2026 TBD
Brentwood July 1, 2026 3.0%
Hayward July 1, 2026 3.0%
Livermore October 5, 2026 3.0%
Milpitas 2 July 1, 2026 3.0%
Newark July 1, 2026 3.5%
Pleasanton April 11, 2026 3.0%
San Leandro July 1, 2026 3.0%
San Ramon July 1, 2026 3.0%
Tracy June 28, 2026 4.0%
Union City January 1, 2026 3.0%
Walnut Creek June 21, 2026 5.0%
Finally, Staff looked at a few other Bay Area agencies outside the City’s formal comparator
survey: Berkeley, San Mateo, Sonoma County, Fremont, South San Francisco, Concord,
Santa Rosa, and Contra Costa County. None currently use CPI to adjust general employee
pay. In summary, a CPI-indexed COLA is the exception, not the rule, and it is becoming even
more of an exception as agencies that previously used it have moved away.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) City of Dublin Employee Benefit Plan
2) 10-Year Look: CPI-W and CPI-U
1 Final adjustments to be decided no later than 9/30/2026 and applied retroactively.
2 Currently in negotiations, 3% is the COLA placeholder for the FY 26 -27 budget.
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Attachment 1
City of Dublin Benefit Plan
Revision Date: July 1, 2023
City of Dublin
Employee Benefit Plan
Established – July 1, 2023
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Table of Contents
Section 1 – Eligible Employees:..............................................................................................................1
Section 2 –Market Rate Adjustments and Consumer Price Index (CPI) Adjustments:..........................1
Section 3 – Merit-Based Salary Adjustments:.........................................................................................2
Section 4 – Performance Pay Adjustments:.............................................................................................2
Section 5 – Medical Insurance:................................................................................................................2
Section 6 – Flexible Benefit Program:.....................................................................................................3
Section 7 – Alternative Benefit:...............................................................................................................4
Section 8 – Dental Insurance:...................................................................................................................5
Section 9 – Vision Insurance:...................................................................................................................5
Section 10 – Trust Fund/Health Reimbursement Arrangement (HRA):..................................................5
Section 11 – Disability Insurance:...........................................................................................................6
Section 12 – Life Insurance:.....................................................................................................................6
Section 13 – Retirement:..........................................................................................................................6
Section 14 – Retiree Health Reimbursement Arrangement (HRA):........................................................7
Section 15 – Deferred Compensation Plan:.............................................................................................7
Section 16 – Holidays:.............................................................................................................................7
Section 17 – Education Reimbursement:.................................................................................................8
Section 18 – Wellness Reimbursement Program:....................................................................................8
Section 19 – Employee Service Awards:.................................................................................................8
Section 20 – Employee Commute Alternative Program/Transit Commuter Program:............................9
Section 21 – Car Allowance and Mileage Reimbursement:....................................................................9
Section 21 – Resident Registration Fees:...............................................................................................10
Section 22 – Effective Date:...................................................................................................................10
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Section 1 –Eligible Employees:
All benefits shall apply to full-time employees of the City of Dublin, unless otherwise stated. The benefits
outlined in this plan shall not be provided to temporary (part-or full-time), provisional or contract
employees, or to individuals who provide services to the City pursuant to contract unless the contract
explicitly provides for such benefits.
Section 2 – Market Rate Adjustmentsand Consumer Price Index (CPI) Adjustments:
Effective July 1, 2023, salary ranges (top and bottom) shall be adjusted based on the change in Consumer
Price Index (CPI) from February 2022 through February 2023 using the San Francisco-Oakland-San Jose
region (Urban Wage Earners and Clerical Workers) as published by the Bureau of Labor Statistics. The
maximum adjustment shall be no greater than three and one-half percent (3.5%), the minimum adjustment
will be one percent (1%). Employee salaries will also be adjusted July 1, 2023, based on the CPI results.
Additionally, a total compensation salary survey of benchmark classifications was conducted. Any
classification that was deemed to be under market was brought up to the 65th percentile of the City’s
comparator cities. Individual employees will not be adjusted, unless their current salary falls below the
minimum of an adjusted range.
In recognition of historically high CPI values the last two years, employees will receive a one-time $1,500
stipend the first check paid out in January 2024.
Effective July 1, 2024, salary ranges for most classifications (top and bottom) shall be adjusted based on
the change in Consumer Price Index (CPI) from February 2023 through February 2024 using the San
Francisco-Oakland-San Jose region (Urban Wage Earners and Clerical Workers) as published by the
Bureau of Labor Statistics. For those classifications that were over market in July of 2023, a total
compensation survey will be conducted in April of 2024. The maximum adjustment shall be no greater
than three and one-half percent (3.5%), the minimum adjustment will be one percent (1%). Employee
salaries will also be adjusted July 1, 2024, based on the CPI results, but in no event shall any adjustment
provided for in this section result in an employee earning a salary in excess of the top of the range for
their classification.
Effective July 1, 2025, salary ranges for most classifications (top and bottom) shall be adjusted based on
the change in Consumer Price Index (CPI) from February 2024 through February 2025 using the San
Francisco-Oakland-San Jose region (Urban Wage Earners and Clerical Workers) as published by the
Bureau of Labor Statistics. For those classifications that continued to be over market in April of 2024, a
total compensation survey will be conducted in April of 2025. The maximum adjustment shall be no
greater than three and one-half percent (3.5%), the minimum adjustment will be one percent (1%).
Employee salaries will also be adjusted July 1, 2025, based on the CPI results, but in no event shall any
adjustment provided for in this section result in an employee earning a salary in excess of the top of the
range for their classification.
Effective July 1, 2026, salary ranges for most classifications (top and bottom) shall be adjusted based on
the change in Consumer Price Index (CPI) from February 2025 through February 2026 using the San
Francisco-Oakland-San Jose region (Urban Wage Earners and Clerical Workers) as published by the
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Bureau of Labor Statistics. For those classifications that continued to be over market in April of 2025, a
total compensation survey will be conducted in April of 2026. The maximum adjustment shallbe no
greater than three and one-half percent (3.5%), the minimum adjustment will be one percent (1%).
Employee salaries will also be adjusted July 1, 2026, based on the CPI results, but in no event shall any
adjustment provided for in this section resultin an employee earning a salary in excess of the top of the
range for their classification.
Section 3 – Merit-Based Salary Adjustments:
a) Annual adjustments in salary (based on the anniversary of the employee’s date of hire or if
applicable, the anniversary date of the most recent promotion) shall be based upon employee
performance as determined by the performance evaluation. It is the duty of the supervisor and
Department Head to give a fair and unbiased evaluation based on job performance of the
employee.
b) For the period of July 1, 2023, through June 30, 2027, employees will be eligible for an annual
merit increase of up to 2.5%, based on their performance as outlined in their annual review, with
an additional .5% at the discretion of the Department Director with agreement from the City
Manager, for a maximum of 3%.
c) In no event shall any salary adjustment result in an employee earning a salary in excess of the top
of the range of their classification.
Section 4 – Performance Pay Adjustments:
If applicable, performance pay adjustment increases will be consistent with increases outlined in Section 3.
Eligibility criteria is outlined in the City’s Personnel Rules.
Section 5 – Medical Insurance:
All City employees who are members of the California Public Employees Retirement System (CalPERS)
shall be eligible to select from plans administered by the Public Employees Medical and Hospital Care Act
(PEMHCA).
a. The City currently contracts with the California Public Employees’ Retirement System
(CalPERS) for the purpose of providing medical insurance benefits for active employees and
their eligible dependents, eligible retired employees, and eligible survivors ofretired
employees. The eligibility of a dependent to participate in this program shall be in accordance
with the terms of the Public Employees’ Medical and Hospital Care Act (PEMHCA). The
Eligibility of retired employees and survivors of retired employeesto participate in this
program shall be in accordance with those provisions of the PEMHCA providing for
participation by CalPERS annuitants.
b. Effective January 1, 2016, the City’s employer contribution towards medical insurance benefits
for each eligible employee shall be the minimum contribution amount required by Government
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Section 22892. Contributions provided under this Section are required only to the extent
mandated by PEMHCA.
c. In the event CalPERS requires a minimum employer payment in excess of the amount recited
above, the City shall pay such additional amounts as approved by the City Council. Because
CalPERS may change carriers and plans, the City shall not be required to provide a specific
insurance coverage and shall only be required to provide those benefits as described in the
Benefit Plan so long as the city contracts for benefits with CalPERS for medical insurance
benefits. The City shall provide each eligible annuitant, as defined by the PEMHCA, with an
employer contribution towards medical insurance benefits that is equal to any contribution
provided to active employees under the Benefit Plan and in accordance with Government
Code Section 22892.
Section 6 –Flexible Benefit Program:
The City shall make available a flexible benefit program (tax deferred employee contribution) that can be
applied to specific expenses, e.g., health premiums, and medical, dental, and vision expenses not covered
by the insurance plan. The City’s plan is subject to the requirement and availability of Internal Revenue
Code Section 125, allowing employees to use pre-tax compensation for PEMHCA medical premiums,
eligible dependent care expenses, eligible uninsured medical expenses, or a combination thereof. All costs
associated with the enrollment and administration of an eligible employee’s account shall be paid by the
City.
a. The City shall not treat contributions made to the program as compensation subject to
income tax withholding unless the Internal Revenue Service and/or the Franchise Tax Board
indicates that such contributions are taxable income subject to withholding. Each employee
shall be solely and personally responsible for any federal, state, or local tax liability of the
employee that may arise out of the implementation of this Section or any penalty that may be
imposed, therefore.
b. Contributions to the flexible benefit program shall be used only for payment of those benefits
that are available through the City’s program. Any amount remaining after the Employee has
designated the portion of his or her flexible benefit (125 plan) contribution amount for the
purposes described in this Section shall be deemed forfeited.
c. Each eligible employee shall file an election in writing during the month of open enrollment for
medical insurance each year designating how the contributions in his or her flexible benefits
account are to be spent during the ensuing year. Thereafter, no changes to designations shall
be allowed until the enrollment of the following year, except for change for changes due to an
eligible qualifying event.
d. Each employee shall be responsible for providing immediate written notice to the Director of
Human Resources of designee of any changes to the number of his or her dependents which
would affect the amount of the City’s payment into the program.
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City of Dublin Benefit Plan
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e. Beginning with the January 1, 2023, premium, eligible employees shall receive up to $2,030 per
month toward the premium cost for CalPERS health insurance based on the employee’s annual
plan election less the amount of any contribution provided by the City directly to CalPERS
under government Code Section 22892.
f. Beginning with the January 1, 2024, premium, eligible employees shall receive a monthly
allowance up to the amounts listed below. Eligibility is based on the employee’s plan selection
and participation level (e.g., employee only coverage, employee plus 1 dependent or employee
plus two or move), less the amount of any contribution paid under Section 2 above.
Employee only = $1,260/month
Employee and 1 dependent = $2,255/month
Employee and 2 or more dependents = $2,525/month
g. For CalPERS plan years 2025, 2026, and 2027, the City will increase the monthly contribution
outlined in Section 7(f) by half of the percent increase in Kaiser premiums at each level, except
if the newly calculated amount exceeds the actual rate of Kaiser for the given year. If this
situation occurs, the City contribution from the prior year will carry over.
h. The City shall continue to provide a flexible benefit program as provided in this Section unless
amended or repealed by the City Council.
Section 7 –Alternative Benefit:
Effective July 1, 2015, subject to proof of other health coverage and completion of CalPERS Health Form
HBD12 indicating same, eligible City employees who are members of the California Public Employees
Retirement System (CalPERS) and (1) elect to opt-out of receiving City contributions under Government
Code Section 22892; as described in Section 2b; (2) are not enrolled in a City-sponsored health insurance
plan as the dependent of another City employee; and (3) provide proof of medical insurance coverage
from a plan other than a City-sponsored plan shall receive an alternative benefit in the form of a cash
payment.
a. Effective July 1, 2015, the amount of alternative benefit is $350 per month and benefit must be
elected each year during open enrollment or upon a qualifying event.
b. Effective January 1, 2024, the amount of alternative benefit provided to an employee is based
on the level of insurance coverage that the employee could have received if the employee had
enrolled in a City-sponsored health insurance plan, as follows:
Employee only = $250/month
Employee and 1 dependent = $450/month
Employee and 2 or more dependents = $625/month
c. For the purpose of this Section, the term “dependent” shall mean a dependent eligible for
coverage under a CalPERS medical plan.
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City of Dublin Benefit Plan
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d. Any cash payment provided under this Section shall be paid and reported to the Internal
Revenue Service (IRS) and the California Franchise Tax Board as compensation subject to
income tax withholding and is considered a non-reportable CalPERS payment/benefit. Each
eligible employee shall be solely and personally responsible for any tax liability that may arise
out of receipt of the alternative benefits provided under this Section.
Section 8 – Dental Insurance:
The City will contribute on behalf of each employee schedule to regularly work at least 30 hours per
week, a maximum of the “full-family premium” per month to a dental insurance plan selected by the City.
The City will contribute on behalf of each regular employee scheduled to work between 20 to 29 hours
per week, a maximum of the “employee only” premium per month to a dental insurance plan selected by
the City.
Effective January 1, 2024, in lieu of enrolling in a City-sponsored dental plan, employees may elect to opt-
out of dental for themselves and eligible dependent(s). The amount of alternative benefit provided to an
employee is based on the level of insurance coverage that the employee could have received if the
employee had enrolled in a City-sponsored dental plan, as follows:
Employee only = $25/month
Employee and 1 dependent = $50/month
Employee and 2 or more dependents = $75/month
For the purpose of this Section, the term “dependent” shall mean a dependent eligible for coverage under
the City-sponsored dental plan.
Any cash payment provided under this Section shall be paid and reported to the Internal Revenue Service
(IRS) and the California Franchise Tax Board as compensation subject to income tax withholding and is
considered a non-reportable CalPERS payment/benefit. Each eligible employee shall be solely and
personally responsible for any tax liability that may arise out of receipt of the alternative benefits provided
under this Section.
Section 9 –Vision Insurance:
The City will contribute on behalf of each employee schedule to regularly work at least 20 hours per
week, a maximum of the “employee only premium” per month to a visioninsurance plan selected by the
City.
Section 10 –Trust Fund/Health Reimbursement Arrangement (HRA):
a. Plan Limits: Beginning on calendar year January 1, 2021, full-time, regular employees will have
a $1,000 limit for eligible reimbursements. Employees regularly scheduled to work between
20 and 30 hours per week shall have a pro-rated share based on hours regularly scheduled.
b. Plan Year: The "Plan Year" shall cover reimbursements for eligible expenses incurred
between January 1 and December 31 of the calendar year.
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City of Dublin Benefit Plan
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c. Third Party Administrator (TPA)/Eligible Claims: Employees eligible for this benefit may
request reimbursement through the third-party administrator selected by the City.
d. Administrative Rules: The reimbursement of any expenses pursuant to this section shall be
contingent upon the fulfillment of requirements pursuant to the provision(s) of the Internal
Revenue Code and the City’s selected third-party administrator.
Section 11 –Disability Insurance:
The City will contribute on behalf of each regular employee scheduled to regularly work at least 20 hours
per week, the total premium cost of a Long-TermDisability Plan selected by the City. In addition, the City
Manager shall be authorized to implement a short-term disability program, which would allow regular
employees scheduled to work at least 20 hours per week, to purchase short-term disability insurance
through payroll deductions, if such a plan is available.
Section 12 –Life Insurance:
The City will contribute on behalf of each full-time employee scheduled to regularly work at least 40
hours per week, the total premium cost of a $50,000 Term Life Insurance Policy selected by the City. In
addition, the City Manager shall be authorized to implement a supplemental life insurance program, which
would allow full-time employees to purchase additional term life insurance through payroll deductions, if
such a plan is available.
Section 13 –Retirement:
For employees who are “Classic” members (as determined by CalPERS), the City will provide the
California Public Employees Retirement System 2.7% at age 55 (Section 21354.5 of the California Public
Employees’ Retirement System plan)retirement plan with the one-year final compensation (Section 20042
of the California Public Employees’ Retirement System plan) benefit option. The City Council shall have
the authority to further amend the plan to include benefit options offered by the Public Employees
Retirement System.Effective July 1, 2011, classic members shall pay 8% of the employees’ contribution
rate.
Effective January 1, 2013, the City shall comply with the California Public Employees' PensionReform Act
of 2013 (PEPRA). Eligible employees who join the City's CalPERS retirementsystem on or after January 1,
2013, and are considered “PEPRA” members (as defined by CalPERS) and shall have a retirement formula
of 2%@ 62; 3-Year final compensation average and shall contribute their portion toward a new CalPERS
retirement tier as defined by law.
Effective July 11, 2015, and pursuant the adoption of City Ordinance 1-2015 (June 2, 2015), employees
shall share in the City’s CalPERS costs by contributing a percentage of the employee’s compensation
reportable to CalPERS (i.e., “compensation earnable”) towards the City’s employer contribution, in
accordance with Government Code section 20516(f). Employees who are Classic CalPERS members will
contribute 7%, and PEPRA CalPERS members will contribute3.05%.
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
The City shall apply the provisions of Internal Revenue Code (IRC) 414(h) (2) to all eligible payroll
deductions for employee CalPERS contributions so long as such provisions remain available to the City.
Section 14 – Retiree Health Reimbursement Arrangement (HRA):
The City shall make available a Retiree HRA account to eligible employees who were hired before January
1, 2016, and who retire from the City of Dublin while meeting the eligibility requirements for CalPERS
retiree health insurance as provide under PEMHCA laws.
a. Beginning on January 1, 2016, the City's Retiree HRA Plan Year shall begin January 1 and end
December 31 of each calendar year.
b. Beginning with January 1, 2023, CalPERS premium year, eligible CalPERS annuitants under the City
of Dublin's CalPERS health contract shall receive reimbursement up to $2,030 per month toward
the cost of CalPERS health insurance premiums. Reimbursement is provided in the form of cash to
the eligible CalPERS annuitant on a monthly basis based on the CalPERS annuitant's annual election
less the amount of any contribution provided by the City directly to CalPERS under Government
Code Section 22892. In no event, shall the City's total reimbursement exceed the amount
described in this section.
c. Beginning with January 1, 2024, CalPERS premium year, an annual adjustment, equal to the
difference in the CalPERS Kaiser Family rate, not to exceed $100 per month, shall be provided.
d. Employees hired by the City on or after January 1, 2016, are not eligible for the Retiree HRA as
defined in this section. The City's maximum contribution toward CalPERS retiree health coverage
shall be the PEMCHA minimum contribution as determined by CalPERS under Government Code
Section 22892.
Section 15 – Deferred Compensation Plan:
Participation in a variety of deferred compensation plans is offered. Participation inthe City’s deferred
compensation plan shall be voluntary, but for employees who choose to participate, effective January 1,
2024, the City will match an employee’s contribution to the 457 deferred compensation plan up to a
maximum of $50/month.
Section 16 –Holidays:
The following days shall be deemed holidays in accordance with the Personnel System Rules:
a) New Year's Day January 1
b) Martin Luther King Jr. Day Third Monday in January
c) Washington's Birthday Third Monday in February
d Memorial Day Last Monday in May
e) Independence Day July 4
f) Labor Day First Monday in September
g) Veteran's Day November 11
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City of Dublin Benefit Plan
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h) Thanksgiving Day Fourth Thursday in November
I) Day following Thanksgiving Day following above
j) Day preceding Christmas December 24
k) Christmas Day December 25
l) Day preceding New Year's Day December 31
In addition to the designated holidays listed above, effective January 1, 2021, employees shallbe provided
two (2)floating holiday per calendar year. Effective January 1, 2024, in recognition of time off for
employees to celebrate their cultural or religious holidays, the City will provide two (2) additional floating
holidays, for a total of four (4).
Civic Service Leave will no longer be provided.
Floating holidays are subject to the following restrictions:
1) Must be used during the calendar year and cannot be carried over; and
2) Requires advance approval of the Department Head and the City Manager.
All holidays will be credited at eight (8) hours each for full-time employees. Part-time employees will
receive a pro-rated number of hours.
Section 17 – Education Reimbursement:
Full-time and regular part-time employees shall be eligible to participate in an education reimbursement
program. The City shall only reimburse the employee for courses undertaken which are job-related or
are part of a job-relatedcourse of study and/or degree program. The employee must obtain prior
authorization from the City Manager and reimbursement will only be provided upon submittal of proof of
satisfactory completion of the courses undertaken with a passing grade when applicable. The City will
reimburse an amount equal to 75% of the employee's tuition and/or fees, (including books). For full-time
employees, the amount reimbursed shall not exceed $2,000 per Fiscal Year beginning July 1, 2020;for
employees scheduled to work between 20-39 hours per week, the amount shall be pro-rated based on
regularly scheduled hours. The payment of any reimbursements shall be contingent upon the fulfillment of
reporting requirements established by the City Manager.
Section 18 –Wellness Reimbursement Program:
Beginning July 1, 2020, the City shall provide a wellness reimbursement program of $25.00 per month to
all regular full-time and part-time employees. Eligible wellness expenses may include activities that
promote health, wellbeing and physical movement and/or exercise. Employees shall be reimbursed
biennially in December and June of each fiscal year.
Section 19 – Employee Service Awards:
Beginning July 1, 2020, regular full-time and part-time employees may opt in for a cash service award in
the year in which they complete 10, 15, 20, and 25 years of service; cash award amounts are as follows:
10 years $500.00, 15 years $600.00, 20 years $800.00, 25 years $1,000.
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Section 20 – Employee Commute Alternative Program/Transit Commuter Program:
The City established an Employee Commute Alternative Program to help ease traffic congestion, improve
air quality in the Bay Area and work to achieve less stressful commutes. The City supports this program
by encouraging City employees to register with the 511 Regional Rideshare Program through
www.511.org and by participating in the Alameda County Congestion Management Agency - Guaranteed
Ride Home program. The City shall provide a $5.00 per day commute alternative cash incentive to all
eligible employees pursuant to providing proper commute verification information. In addition, the City
offersa pre-taxed Transit Commuter Program administered through third-partyadministrator
(WageWorks) for the cost of public transit. Both Commuter programs comply with SB 1128, which
requires employers with 50 or more to offer at least one commuter benefit option to employees.
Section 21 – Car Allowanceand Mileage Reimbursement:
The following positions shall be eligible to receive the designated monthly allowance. The receipt of the
car allowance pursuant to this section shall be full compensation for all operating costs excluding tolls,
parking fees and out of area travel.
a. Management Positions Receiving Monthly Allowance
Eligible Positions Monthly Allowance
Assistant City Manager $190
Assistant Director of Community Development $190
Assistant Finance Director $190
Assistant Parks and Community Services Director $190
Assistant Public Works Director/City Engineer $190
Capital Improvement Program Manager $190
Chief Building Official $190
Chief Information Security Officer $190
Communications Manager $190
Community Development Director $190
Deputy City Manager $190
Economic Development Director $190
Finance Director $190
Human Resources Director $190
Parks & Community Services Director $190
Parks & Community Services Manager $190
Planning Manager $190
Principal Engineer $190
Public Works Director/Assistant City Engineer $190
Public Works Manager $190
Public Works Transportation & Operations Manager $190
b. Miscellaneous Employees Receiving Car Allowance
The following position shall be eligible to receive the designated monthly car allowance.
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City of Dublin Benefit Plan
Revision Date: July 1, 2023
Eligible Position Monthly Allowance
Senior Civil Engineer $190
c. Operating Costs
Employees whose services and compensation are provided for under separate agreement
who receive a car allowance shall be eligible to receive 40 percent (rounded up to the nearest
cent) of the amount recognized by the Internal Revenue Service for the use of a private
vehicle as an operating cost.
d. Mileage Reimbursement
For employees not receiving a car allowance, when traveling on City business, the City will
reimburse the amount recognized by the Internal Revenue Service for the use of a private
vehicle.
e. Out of Area Travel Reimbursement
When traveling out of the area on City business, the City will reimburse the amount
recognized by the Internal Revenue Service for the use of a private vehicle, or air
transportation costs, whichever is less.
f. Administrative Requirements
The payment of any mileage reimbursements or car allowance shall be contingent upon the
fulfillment of requirements established by the City's accounting procedures and other rules
and policies.
Section 21 – Resident Registration Fees:
Effective July 1, 2015, non-resident employees shall be granted Dublin resident fees and rates for City Parks
and Community Services classes, trips and facility rentals; priority registration does not apply.
Section 22 –Effective Date:
The provisions of this Benefit Plan shall be administered in accordance with the regulations, policies and
procedures issued by the City Manager or designee which shall include, but not limited to, the method and
frequency of reimbursement to eligible employees for the benefit program(s) selected and appropriate
procedures for the verification of payment made pursuant to the Benefit Plan.
This Benefit Plan shall be effective July 1, 2023, and shall supersede Resolution No. 115-10 and 61-20, all
amendment to,and any previous resolutions adopted by the City Council which are in conflict.
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Attachment 2
10-Year Comparison: CPI-W and CPI-U
CPI-W – San Francisco-Oakland-Hayward
Year Feb Apr Jun Aug Oct Dec Annual HALF1 HALF2
2016 2.9 2.6 2.5 2.4 3.1 3.0 2.7 2.6 2.8
2017 3.3 3.7 3.3 2.9 2.7 3.1 3.1 3.4 2.9
2018 3.8 3.4 4.0 4.3 4.4 4.4 3.9 3.6 4.3
2019 3.3 3.7 3.0 2.5 3.0 2.2 3.1 3.5 2.7
2020 2.5 0.7 1.3 1.6 0.9 2.2 1.5 1.6 1.4
2021 1.8 4.1 4.3 4.9 5.2 5.5 4.1 3.1 5.1
2022 6.5 6.5 7.6 6.0 6.4 4.6 6.3 6.7 6.0
2023 4.9 3.6 2.3 3.3 2.5 2.8 3.3 3.8 2.8
2024 2.9 4.0 3.0 2.4 2.3 2.1 2.8 3.2 2.3
2025 2.7 1.6 1.9 2.7 (X) 3.1 2.3 2.0 2.6
2026 1.7 3.3 3.4 2.8
(X): Data unavailable due to the 2025 lapse in appropriations
CPI-U – San Francisco-Oakland-Hayward
Year Feb Apr Jun Aug Oct Dec Annual HALF1 HALF2
2016 3.0 2.7 2.7 3.1 3.6 3.5 3.0 2.8 3.2
2017 3.4 3.8 3.5 3.0 2.7 2.9 3.2 3.6 2.9
2018 3.6 3.2 3.9 4.3 4.4 4.5 3.9 3.4 4.3
2019 3.5 4.0 3.2 2.7 3.0 2.5 3.3 3.7 2.9
2020 2.9 1.1 1.6 1.6 1.1 2.0 1.7 2.0 1.4
2021 1.6 3.8 3.2 3.7 3.8 4.2 3.2 2.5 3.9
2022 5.2 5.0 6.8 5.7 6.0 4.9 5.6 5.4 5.8
2023 5.3 4.2 2.9 3.4 2.8 2.6 3.7 4.4 2.9
2024 2.4 3.8 3.2 2.7 2.4 2.4 2.8 3.0 2.5
2025 2.7 1.3 1.5 2.5 (X) 3.0 2.2 1.9 2.5
2026 2.5 3.8 3.8 3.2
(X): Data unavailable due to the 2025 lapse in appropriations
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Cost-of-Living Adjustment
Methodology
For City Employee Compensation
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Executive Summary
Council requested information on the 2026 employee cost-of-
living (COLA) adjustments received by City employees.
Report reviews:
Dublin’s Employee
Process COLA Formula Contract
Escalators
Comparator
Agencies
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Dublin’s Employee Process
City Manager meets with
permanent City employees.
The City conducts its
Employee Process.
Feedback
Salary survey data
Fiscal factors
Organizational needs
Reflected in the Employee
Benefit Plan.
Begins this fall for changes
effective July 1, 2027.
The upcoming process may establish adjustments for a period of up to five years.
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COLA Methodology
Index used since 2012 (SF-Oakland-Hayward)
Feb → Feb
Measurement window each year
Floor: 1.0%Ceiling: 3.5%
Dublin has always used CPI-W (~28% of population), but CPI-U (broader, ~90% of population) is the official measure for the region.
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2026: February Was an Outlier
3.1
1.7
3.3 3.4
0
1
2
3
Dec. 2025 Feb. 2026 Apr. 2026 Jun. 2026
The 1.7% February reading did not
reflect the higher CPI-W readings
immediately surrounding it.
One percentage point of COLA =
approximately $184,115 in salary
and salary-related benefits.
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Comparison: Annual Contract Escalators
Many of the City’s multi-year contracts include a built-in annual escalator,
most tied to CPI, with a max of 3%.
The CPI month used varies by contract, often December or the month
closest to the contract’s start date.
Multi-year contracts are re-bid and new rates are set upon expiration.
Exception: time-and-materials agreements for in-demand positions (e.g.,
high-level engineering) are priced to market and can rise faster than CPI.
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Comparator Agency Increases for 2026
* Milpitas: 3% budget placeholder while in negotiations.
5
3
4
3
3
3
3.5
3
3
3
1.7
3
0 1 2 3 4 5 6
Walnut Creek
Union City
Tracy
San Ramon
San Leandro
Pleasanton
Newark
Milpitas*
Livermore
Hayward
Dublin
Brentwood
All formal comparators use a flat
negotiated percentage rather than a
CPI formula.
Alameda is the exception, using a
Base Revenue Index; its 2026
adjustment was still TBD when the
report was prepared.
All listed 2026 increases are 3.0%
or higher.
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Questions?
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