DATE: 07/01/2026
TO: Honorable Mayor and City Council Members
FROM: Human Resources Department
2026-244
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
CONSIDERATION OF VARIOUS ACTIONS RELATED TO APPROVAL OF A
MEMORANDUM OF UNDERSTANDING WITH THE CORONA UTILITIES EMPLOYEE ASSOCIATION EFFECTIVE JULY 1, 2026, THROUGH DECEMBER 31, 2027 EXECUTIVE SUMMARY:
This staff report asks the Council to approve a Memorandum of Understanding (MOU) with the Corona Utilities Employee Association (CUEA), which was negotiated in accordance with state law, following the formation of the new CUEA bargaining unit in mid-2025.
RECOMMENDED ACTION:
That the City Council:
a. Adopt the Memorandum of Understanding with the Corona Utilities Employees Association.
b. Adopt Resolution 2026-080, adopting the City of Corona Position Library and Compensation Plan.
c. Authorize a total appropriation in the amount of $199,650 across multiple funds (Reclaimed Water Utility Fund (FD_1567), Water Utility Fund (FD_1570), Sewer Utility Fund (FD_1572), Direct Access Electric Utility Fund (FD_1576), and Greenfield Electric Utility Fund (FD_1578)) for FY 2027 for the estimated additional costs resulting from the implementation of the MOU.
BACKGROUND & HISTORY:
The California Meyers Milias Brown Act (MMBA) requires the City to meet and confer, in good faith, with its bargaining groups on all matters relating to employment conditions and employer-employee relations, including, but not limited to wages, hours, and other terms and conditions of employment.
In September of 2025, the Corona Utilities Employee Association (CUEA) was formed by its member employees, in accordance with the City’s Employer-Employee Relations Policy and the Meyers-Milias-Brown Act. The CUEA now represents certain certificated, field employees in the Utilities Department who were previously part of the Corona Public Service Employees Association (CPSEA).
Following recognition of this new bargaining unit, the City and CUEA began good faith negotiations to establish the new group’s first collective bargaining agreement. The parties have reached an agreement for this new MOU, which will expire on December 31, 2027, aligning the CUEA’s MOU with the same expiration date as the City’s other five bargaining groups.
ANALYSIS:
The negotiation process with all represented groups involved multiple meetings to discuss the terms and conditions of employment. Negotiations have focused on employee compensation, using market data as a reference point for the discussions. The City continues to focus on both recruitment and retention of its workforce, in which maintaining overall compensation relative to the market is an important part of those efforts. The City provides its services through its people, and retaining a high-quality workforce is foundational to providing services and fulfilling the City’s Mission and Vision.
The key terms of the MOU are summarized below:
Base Pay Increases: In most cases, compensation adjustments mirror those planned for CUEA classifications that were previously in the CPSEA bargaining group. Additional market-based adjustments are included for Water and Wastewater Operators (including Leads), and Senior Supervisory Control and Data Acquisition (SCADA) Engineer. In December of 2026, members will receive a flat 3% COLA, equal to the COLA planned for all other City employees at that time.
Cafeteria Allowance: Effective the payroll following approval of the new MOU, the City’s maximum contribution toward medical coverage will be $2,273 per month for the employee plus two or more dependents coverage, $1,721 per month for the employee plus one dependent coverage, and $1,003 per month for employee-only coverage. These contributions will increase again in 2027, as Article 10 of the MOU indicates.
Other Changes to Terms:
o The City Council approved a side letter with CUEA (and all other groups) in Fall 2025, to address compliance issues related to holiday pay language, deferred compensation, and post-employment health plans. Those language updates are incorporated in the new MOU.
o Language regarding the appeals process for employee discipline and grievances has been updated to delete advisory arbitration as the final administrative step in the appeals process.
o Non-Fair Labor Standards Act overtime (otherwise known as MOU overtime) is now limited to emergency responses and shift hold-over time, in which an employee remains at work past their shift end time to cover unforeseen absences or operational delays. Scheduled overtime will now be paid in accordance with Fair Labor Standards Act rules.
FINANCIAL IMPACT:
Some of the costs related to this new CUEA MOU pertain to salaries and benefits that were already anticipated to be paid when the employees were part of CPSEA. Therefore, approval of the recommended actions will result in a total appropriation in the amount of $199,650 across multiple funds (as noted below) for Fiscal Year (FY) 2027.
Fund Amount
Reclaimed Water Utility Fund (FD_1567) $1,565
Water Utility Fund (FD_1570) $112,008
Sewer Utility Fund (FD_1572) $85,104
Direct Access Electric Fund (FD_1576) $201
Greenfield Electric Fund (FD_1578) $772
Total $199,650
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the action is not subject to CEQA. This approves the Memorandum of Understanding with the Corona Utilities Employee Association, and there is no possibility that the approval of this item will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: LORI SASSOON, CHIEF TALENT OFFICER
REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Memorandum of Understanding with the Corona Utilities Employee Association
2. Exhibit 2 – Resolution 2026-080, adopting the City of Corona Position Library and Compensation Plan