AGENDA TITLE:
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Adopt a Resolution Approving the Memorandum of Understanding Between the City of Lodi and the AFSCME - Maintenance and Operators for the Period January 1, 2026 through December 31, 2028 (IS - HR)
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MEETING DATE:
March 18, 2026
PREPARED BY:
Human Resources
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Approving the Memorandum of Understanding Between the City of Lodi and the AFSCME - Maintenance & Operators for the Period January 1, 2026 through December 31, 2028.
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BACKGROUND INFORMATION:
Representatives from the City of Lodi and the AFSCME Maintenance and Operators (AFSCME-M&O) have been bargaining over a successor Memorandum of Understanding (MOU) for the past five months and have reached a tentative agreement, subject to Council approval.
The proposed version of the MOU is attached as Attachment 1 for Council review and approval. A summary of the key changes to the MOU are as follows:
• The term of the MOU shall be from January 1, 2026 through December 31, 2028.
• All employees to receive a 3% one-time off-salary-schedule payment (OSSP). OSSP will be calculated based upon 1-year of employee’s base rate as soon as administratively possible.
• Effective January 5, 2026 the City shall implement the January 1, 2026 compensation study by providing for equity increases for classifications deemed below market over two years as follows:
o Year 1: Comp Study Equity increase: Up to 5% or ½ equity increase, whichever is greater, pursuant to January 1, 2026 comp study, total compensation.
o Year 2: Comp Study Equity increase: Employee shall receive remainder of equity increase, the portion not implemented in year 1.
• Classifications determined to be “over market” pursuant to the January 1, 2026 comp study, total compensation, shall be Y-rated.
• Three percent (3%) cost-of-living increase effective January 4, 2027 or Y-rated employees will receive a combination of COLA/OSSP not to exceed three percent (3%).
• Three percent (3%) cost-of-living increase effective January 3, 2028 or Y-rated employees will receive a combination of COLA/OSSP not to exceed three percent (3%).
• City shall pay up to 90% of the medical premium, by enrollment category, for the lowest cost HMO plan available in the zip code 95240, effective December 22, 2025.
• Bilingual Pay to increase to $200 per month, effective the first pay period following City Council approval.
• Education Incentive pay to increase to $50 per month per. An employee can earn education incentive pay up to a combined maximum of $250 per month.
• Dental and Orthodontia Insurance: Increase the annual maximum benefit from $1250 to $1500 for each family member enrolled in the dental plan per calendar year. Orthodontia benefits increase up to a lifetime cap of $1500 for each person covered under the plan.
• Eliminate CalPERS employee cost-sharing contribution, effective July 6, 2026.
• MOU Clean Up:
o Tuition Reimbursement - Amend eligibility period for tuition reimbursement to allow employees to be eligible for tuition reimbursement after six months of full-time employment.
o Miscellaneous clean up items (PERS language, cafeteria plan, etc.)
Both the City and AFSCME - Maintenance and Operators recognize the importance of offering competitive salary and benefit packages to recruit and retain qualified employees for these important positions.
Staff recommends that the Council approve the MOU between the City and AFSCME - Maintenance and Operators.
FISCAL IMPACT:
The total cost of the term of the agreement is $3,692,000 as show below.
|
Calendar Year 2026 |
$706,000 |
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Calendar Year 2027 |
$1,390,000 |
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Calendar Year 2028 |
$1,596,000 |
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Total Cost (3 years) |
$3,692,000 |
FUNDING AVAILABLE:
Budget adjustments for these and other compensation increases for City employees needed in Fiscal Year 2026/27 were included in the mid-year budget.