AGENDA TITLE:
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Adopt a Resolution Authorizing the City Manager to Execute an Addendum to the Employment Agreement with Jeffrey Berkheimer, Electric Utility Director, Including Future Cost of Living Increases, Elimination of CalPERS Cost-Sharing, and Modification to the City’s Contribution to Medical Premiums (CM)
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MEETING DATE:
February 18, 2026
PREPARED BY:
James Lindsay, Interim City Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the City Manager to Execute an Addendum to the Employment Agreement with Jeffrey Berkheimer, Electric Utility Director, Including Future Cost of Living Increases, Elimination of CalPERS Cost-Sharing, and Modification to the City’s Contribution to Medical Premiums.
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BACKGROUND INFORMATION:
The City of Lodi has negotiated successor Memorandums of Understanding (“MOUs”) with several of the represented bargaining units that include equity adjustments, cost-of-living adjustments, elimination of the CalPERS cost-sharing contributions, and increased City contribution towards medical premiums. Mr. Berkheimer’s Employment Agreement was amended in January 2025 to provide a salary equity increase; however, the amendment did not include future cost-of-living increases or modifications to benefits.
The City Manager has completed negotiations with the Electric Utility Director and have negotiated amendments to the Electric Utility Director’s employment agreement, similar to those provided to other represented employees, as follows:
• Three percent (3%) cost-of-living increase effective the first full pay-period in January 2027;
• Three percent (3%) cost-of-living increase effective the first full pay-period in January 2028;
• 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 January 1, 2026;
• Reduce total employee pension contribution by eliminating employee cost-sharing of six percent (6%), effective July 6, 2026:
• Classic Contribution seven percent (7%)
• PEPRA Contribution of 50% of normal cost
• If assigned by the City Manager to a vacant or interim Director position, for more than two consecutive weeks, Employee shall receive the current salary of the position they are filling while in this status, or a 10% upgrade, whichever is greater.
The current salary for the Electric Utility Director is $342,028 annually. A single salary amount, as opposed to a salary range considered in 2025, is consistent with other Department Director salaries. The three percent (3%) cost of living increase effective in January 2027 will bring the Electric Utility Director’s annual salary to $352,289.
FISCAL IMPACT:
Sufficient funds will be allocated within the fiscal year’s budget for the benefit modifications and for future cost-of-living increases.
FUNDING AVAILABLE:
50060001.71001