AGENDA TITLE:
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Adopt a Resolution Approving the Memorandum of Understanding between the City of Lodi and the Police Officers Association of Lodi for the Period of July 1, 2025 through June 30, 2028 (HR)
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MEETING DATE:
December 17, 2025
PREPARED BY:
Human Resources Management Analyst
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Approving the Memorandum of Understanding between the City of Lodi (“City”) and the Police Officers Association of Lodi (POAL) for the Period of July 1, 2025 through June 30, 2028.
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BACKGROUND INFORMATION:
Representatives from the City and the POAL have been bargaining over a successor Memorandum of Understanding (MOU) for the past seven (7) months and have reached a tentative agreement, subject to Council approval.
The proposed version of the MOU is included 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 July 1, 2025 through June 30, 2028
• Six and one-half percent (6.5%) wage adjustment over the term of the contract
o Three and one-half percent (3.5%) equity adjustment effective December 22, 2025;
o Three percent (3%) cost-of-living adjustment effective July 5, 2027.
• Off salary schedule payment of seven thousand six hundred and ninety-six dollars and eighty-one cents ($7,696.81) to be paid December 22, 2025 pay period, after City Council approval of the MOU.
• 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, or the first pay period following City Council approval of the MOU, whichever is later.
• Add Graveyard incentive, 2.5% effective December 22, 2025, following City Council approval of the MOU.
• Increase bilingual incentive to $200 per month effective December 22, 2025, following City Council approval of the MOU.
• Increase Longevity Pay - If approved, the longevity incentive will become effective the pay period beginning December 22, 2025, and be paid on a per pay period basis starting the first full pay period in January 2026:
o 7 years - Three thousand ($3,000) per year
o 15 years - Six thousand ($6,000) per year
o Eligible employees owed a retroactive longevity amount for 2025, will be paid in a lump sum on the pay period beginning December 22, 2025.
• MOU Clean Up:
o Tuition Reimbursement - Clarify definition for “regular employee for 6 months” (not on probation)
o Add Holiday Side Letter to MOU
Both the City and POAL recognize the importance of offering competitive salary and benefit packages to attract and retain talented employees. Lodi Police Department (LPD) has operated below full staffing, particularly at the Police Officer classification. LPD and City administration have worked together to strengthen recruitment efforts, including hiring and compensating recruits as trainees during their time in the Police Academy, and providing a hiring incentive for qualified lateral Police Officers. The proposed wage increases over the term of this MOU will make LPD more competitive in the labor market.
While the City remains committed to maintaining fiscally sustainable operations, the community expects and relies upon a fully staffed, well-trained police force. The salary and benefit enhancements included in this MOU may need to rely upon reserves for financing. However, these adjustments are essential to ensure Lodi can retain the skilled public safety personnel necessary to maintain community safety. Without these measures, the City risks continued staffing shortages that could hinder its ability to attract qualified officers and meet the public’s expectations for service.
Staff recommends that the Council approve the MOU between the City and POAL.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
The total cost of the term of the agreement is $3,843,658.
|
Fiscal Year 2025-2026 |
$1,200,537 |
|
Fiscal Year 2026-2027 |
$1,151,940 |
|
Fiscal Year 2027-2028 |
$1,491,181 |
FUNDING AVAILABLE:
Budget adjustments for these and other compensation increases for City employees may be needed at Mid-Year Fiscal Year 2025/26. Vacancy savings are the first source for funding the increases for this and future employee contract changes in the coming Fiscal Year. These savings have been significant in the past three years, allowing the City to build up substantial reserves. These reserves may be necessary to finance a portion of salary increases.