City of Lathrop
MOU & Compensation Plan Highlights
JUNE 8, 2026
CITY COUNCIL REGULAR MEETING
1 Overview
2 ° Current Memorandums of Understanding are scheduled to expire on June 30, 2026.
° The City completed meet-and-confer negotiations in good faith with recognized employee groups.
° Council is asked to approve successor agreements and
compensation plans, except LPOA at this time.
° The actions are intended to support recruitment, retention, operational continuity and predictable labor costs.
Agreements for Council
Consideration
3 SEIU Local 1021
Ratified successor MOU
presented for Council
approval.
LMCEA
Ratified successor MOU
presented for Council
approval.
Department Heads &
Unrep (Non-Sworn)
Compensation and
benefits plan updates
aligned with City practice
and Council direction.
Unrepresented Sworn
Two-year cost of living
adjustments and tiered medical
contribution
City Council Benefits
Proposed monthly auto
allowance for official City-related
vehicle use.
Shared Compensation & Benefit
Provisions
4 Two-Year Term
July 1, 2026 through
June 30, 2028
COLA
4% in July 2026
4% in July 2027
Health Contributions
Employee + One:
+$200/month
Employee + Family:
+$300/month
° Standby pay increase
From $3.00 to $5.00 per hour for eligible groups.
° Bilingual pay
$60 per pay period for eligible SEIU and LMCEA positions. ° Administrative cleanup
Clarifies plan language and supports consistent implementation.
Group-Specific Highlights
5 Group Selected Highlights
SEIU Extended-hours rest period; boot allowance (now includes insoles) up to $350; union release time; cafeteria and sick leave revisions.
LMCEA Vacation buy-back increased up to 60 hours annually; retiree medical cleanup; sick leave clarification; updated classifications.
Dept. Heads &
Unrepresented
Additional management leave by years of service; education incentive; sick leave cash-out at retirement; $5,000 deferred compensation contribution.
Unrepresented
Sworn
Two-year compensation plan with COLA and tiered health
contribution updates.
LPOA Status & Sworn Recruitment
Incentive
6 ° LPOA successor MOU is not before Council at this time.
The tentative agreement was not ratified by LPOA membership. ° The City will continue addressing negotiations with LPOA.
Next steps will proceed in accordance with labor relations requirements.
Proposed Recruitment Incentive Update
$5,000 signing bonus split after FTO completion
$2,500
Referral Bonus
$2,500
Hiring Bonus
Fiscal Impact
7 ° Fiscal impact is reflected in the attached budget amendment table, with an all-fund Citywide impact of $650,900.
° The agreements are financially sound based on conservative revenue projections and review of anticipated expenditures. ° The agreements can be implemented without compromising service levels, reserve targets, or long-term fiscal stability. ° The City is projected to maintain a structurally balanced operating budget throughout the term.
Recommended Council Actions
8 ° Adopt the resolution approving the ratified MOUs and compensation plans.
° Authorize the Mayor and City Manager to execute applicable agreements.
° Approve City Council benefits, the updated Grade Step Table, and related appropriations.
° Authorize implementation of the approved compensation and benefit provisions.
Council action will establish the terms and conditions of employment for the new agreement term and support continuity in City operations.