Agenda Item
DATE: 8/12/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY APPROVING AND
ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITYOF UNION CITYAND THE OPERATING ENGINEERS LOCAL 3, PROFESSIONAL EMPLOYEES GROUP FOR THE PERIOD OF JANUARY 1, 2025 THROUGH DECEMBER 31, 2027, AUTHORIZING THE CITY MANAGER TO EXECUTE
THE MEMORANDUM OF UNDERSTANDING ON BEHALF OF THE CITY AND APPROVING AN
AMENDMENT TO THE CITY'S SALARY SCHEDULE IN CONFORMANCE WITH CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution approving and adopting the Memorandum of Understanding (MOU) between the City of Union City (City) and the Operating Engineers Local 3, Professional Employees Group (OE3-PEG) for the period of January 1, 2025 through December 31, 2027, authorizing the City Manager to execute the MOU on behalf of the City and approving an amendment to the City’s Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.
STRATEGIC PLAN ALIGNMENT
This action supports Strategy 8 of Goal B, Governance and Organization Effectiveness, by ensuring salaries are competitive in order to retain talented staff and to provide an attractive recruiting environment.
BACKGROUND
The City and the Professional Employees Group (PEG) initiated negotiations in August 2024 to address the existing MOU that covered the period of January 1, 2022 through December 31, 2024. In September 2024 PEG initiated a decertification and recognition procedure to be represented by Operating Engineers Local 3 (OE3). On March 11, 2025, the City Council adopted Resolution No. 2025-030 recognizing OE3 as the exclusive bargaining representative for PEG and the group is now known as OE3-PEG. Staff and OE3-PEG have been negotiating in good faith for the successor Memorandum of Understanding (Successor MOU) since April 2025. Both parties have reached a tentative agreement on matters related to wages, hours, and other terms and conditions of employment, consistent with the authority provided by the City Council, as reflected in the Successor MOU.
DISCUSSION
The Existing MOU expired on December 31, 2024. OE3-PEG membership ratified the Successor MOU on August 6, 2025. The Successor MOU does not become effective until approved by the City Council. The deal points of the Successor MOU are as follows:
General Language Clean Up and Corrections: These were made throughout the MOU regarding job titles, union name, sentence structures and punctuation.
1.05 UNIT REPRESENTATION: Update number of representatives as Union Stewards and Negotiating Team.
1.06 DUES DEDUCTION: Add language to conform with dues deduction procedures.
SECTION 2.01 COMPENSATION:
· Cost of Living Adjustments: Provides cost of living adjustments of 3% per year that will become effective the first full pay period following Council approval of this agreement, and then thereafter effective the first full pay period in January 2026, and the first full pay period in January 2027.
· Market Equity Adjustments: Provides a one-time market equity adjustment of 2% effective the first full pay period following Council approval of this agreement for all classifications in the OE3-PEG unit and also brings any remaining classifications more than 7.5% below market median to 7.5% below market median.
SECTION 2.04 MEAL ALLOWANCE : Increase meal allowance from $10 to $15.
SECTION 3.0 LEAVE: Updates to various leaves, as identified below:
ADMINISTRATIVE LEAVE: General cleanup of terms, removal of outdated terms and clarification of sell back provisions.
BEREAVEMENT LEAVE: Adds “Designated Person” as eligible for employee to use one day of bereavement leave.
OCCUPATIONAL INJURYLEAVE: Updates qualifying language for use of occupational injury leave.
PERSONAL LEAVE: Revise language and clarifies eligibility for the conversion of sick leave to personal leave.
SECTION 3.10 VACATION: Revise and/or remove outdated language, clarifies eligibility for sellback of vacation leave and inserts vacation scheduling language for vacation approvals.
SECTION 5.0 INSURANCE COVERAGE: A. Health and Welfare Coverage: Increases the monthly allowance from $2,000 to $2,200, effective the first pay date of the month following Council approval of this agreement. Effective the first pay date of 2027, this amount increases from $2,200 to $2,250. Increases the “In Lieu” amount for those waiving enrollment due to alternative medical coverage from $300 per month to $350 per month, effective the first pay date of the month following Council approval of this agreement.
SECTION 11.0 SURVEY DATA: Clarify language on completing the City’s salary survey by August 31, 2027 for timeliness in negotiations.
APPENDIX A: BARGAINING GROUP CLASSIFICATIONS: Updates the list of classifications to add Economic Development Coordinator, Lead Construction Inspector and Lead Payroll Technician.
FISCAL IMPACT
The estimated cost of this Successor MOU is projected to be an additional $280,000 annually over the life of the contract.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving and adopting the Memorandum of Understanding (MOU) between the City of Union City (City) and the Operating Engineers Local 3, Professional Employees Group (OE3-PEG) for the period of January 1, 2025 through December 31, 2027, authorizing the City Manager to execute the MOU on behalf of the City and approving an amendment to the City’s Salary Schedule in conformance with California Code of Regulations, Title 2, Section 570.5.
Prepared by:
JASON CASTLEBERRY, HUMAN RESOURCES DIRECTOR
Submitted by:
JASON CASTLEBERRY, HUMAN RESOURCES DIRECTOR
ATTACHMENTS:
Description Type
Draft Resolution Resolution
ExhibitA - OE3-PEGMOURedlined Exhibit
Exhibit B- Classification and Compensation Plan Exhibit REVIEWERS:
Department Reviewer Action Date
Human Resources Castleberry, Jason Approved 8/8/2025 - 4:26 PM City Manager’s Department Malloy , Joan Approved 8/8/2025 - 5:30 PM