City Council Staff Report Page 1 of 2 February 24, 2026 Staff Report
Agenda Item No. 4.5
DATE: February 24, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution of the City of Union City Approving and Adopting the Side Letter to the Memorandum of Understanding Between the City and the Operating Engineers Local 3 - Professional Employees Group (OE3-PEG) to Address Leaves for the Period of July 1, 2024 through June 30, 2025, and Authorizing the City Manager to Execute the Side Letter on Behalf of the City Regarding Leave Administration
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt the attached resolution approving and adopting the Side Letter to the Memorandum of Understanding (MOU) between the City of Union City (City) and the Operating Engineers Local 3 – Professionals Group (OE3- PEG) to address leaves for the period of July 1, 2024, to June 30, 2025, regarding leave administration.
STRATEGIC PLAN ALIGNMENT
The action supports Strategy 8 of Goal B, Governance and Organizational Effectiveness, by ensuring the City remains competitive to retain talented staff and provide an attractive recruiting environment.
BACKGROUND
The City and OE3-PEG are parties to the MOU, effective between January 1, 2025, and December 31, 2027 (the MOU). Staff and OE3-PEG have been negotiating in good faith for an agreement to a side letter to the OE3-PEG MOU. The City and OE3 have reached an agreement on matters associated with Section 3.0 Leaves of the MOU, specifically related to maximum accruals for Administrative Leave and Floating Holiday hours. To ensure members who were otherwise unable to take accrued time off, the side letter provides that members can regain those hours lost during the period from July 1, 2024, to June 30, 2025.
Agenda Item No. 4.5
City Council Staff Report Page 2 of 2 February 24, 2026
DISCUSSION
The relevant provision addressed by the proposed side letter is Section 3.0, Leave, to temporarily lift the bank limits for Administrative Leave and Floating Holiday hours. This temporary lift of the bank hour maximum will allow members who otherwise lost hours during the period from July 1, 2024, through June 30, 2025, due to the inability to take time off during a brief but crucial project implementation stage with citywide impacts.
FISCAL IMPACT
There is no fiscal impact, as the hours must be used by the end of Fiscal Year 2025-2026, and there is no opportunity to cash out any of these leave hours.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution approving and adopting the Side Letter to the MOU and authorizing the City Manager to execute the side letter on behalf of the City.
Prepared by: Jason Castleberry, Human Resources Director Submitted by: Jason Castleberry, Human Resources Director Attachments
1. Draft Resolution
2. Exhibit A - Side Letter between Union City and OE3-PEG