AGENDA TITLE:
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Adopt a Resolution Approving Side-Letter Agreements Between the City of Lodi and Local 1245 International Brotherhood of Electrical Workers (IS - HR)
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MEETING DATE:
February 18, 2026
PREPARED BY:
Cristina Gonzales, Interim Human Resources Manager
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RECOMMENDED ACTION:
Adopt a Resolution Approving Side-Letter Agreements Between the City of Lodi and Local 1245 International Brotherhood of Electrical Workers (“IBEW”).
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BACKGROUND INFORMATION:
The City and IBEW negotiated a successor Memorandum of Understanding (“MOU”), January 1, 2025 through December 30, 2028. During the negotiation process, the City agreed to provide a contribution of one-hundred dollars ($100) per month towards a Health Reimbursement Arrangement (“HRA”) Plan for IBEW employees. The City was unable to implement the HRA and subsequently City staff engaged in negotiations with IBEW to provide alternative benefit(s) in lieu of an HRA.
Representatives from the City and IBEW met and conferred in good faith and came to a tentative agreement as follows and included in Attachment 1 -Side-Letter Agreement (Benefits):
• Effective January 1, 2026, the City shall contribute an amount equal to ninety percent (90%) of the premium cost of the lowest-cost CalPERS Health Maintenance Organization (“HMO”) plan available within ZIP Code 95240 toward each eligible employee’s health insurance coverage by enrollment category.
o This contribution shall be adjusted annually, effective the first pay period in January, based on CalPERS premium rates.
o Employees who select plans costing more than the City’s contribution shall pay the premium cost difference through payroll deductions.
• Elimination of the CalPERS cost sharing agreement as follows:
o Effective the first full pay period in July 2028, Classic Member employees shall pay the full employee share of retirement costs (7%) as calculated by CalPERS in its annual actuarial valuation, ending the two percent (2%) cost sharing.
o Effective the first full pay period in July 2028, PEPRA Member employees shall pay the full employee share of retirement costs as calculated by PERS in its annual actuarial valuation (one-half of the normal cost of pension), ending the two percent (2%) cost sharing.
Additionally, a scrivener’s error occurred in the finalized MOU, whereby, the newly created classification of Apprentice Substation Technician was not included. The parties wish to correct this error and include the classification of Apprentice Substation Technician in Articles 4.4, 7.4 and 36.1 of the IBEW MOU. Refer to Attachment 2 -Side-Letter Agreement (Apprentice).
By adopting these side‑letters, the City will correct the scrivener’s error and amend the language in the IBEW MOU to include the classification of Apprentice Substation Technician and provide amendments to the benefits provided to IBEW employees.
FISCAL IMPACT:
The total approximate cost of the side-letters is $813,000.
Fiscal Year 2025-26 budget increases were approved during mid-year budget review for the modifications to benefits and there is no fiscal impact to correct the scrivener’s error and include the Apprentice Substation Technician classification in the MOU.
FUNDING AVAILABLE:
Budget increases were approved during mid-year budget review for the modifications to benefits and there is no fiscal impact to correct the scrivener’s error and include the Apprentice Substation Technician classification in the MOU.