City Council Agenda Report
Meeting Date: September 2, 2025
From: Su Tan, Director of Human Resources
Department: Human Resources
Submitted by: Lisette Grizzelle, Human Resources Program Manager Subject
Memoranda of Understanding – Labor Negotiations
Recommendation
A. Adopt Resolution No. 2025-023 approving the 2025-2028 Memorandum of Understanding by and between the City of Vernon and the International Brotherhood of Electrical Workers, Local 47 (IBEW);
B. Adopt Resolution No. 2025-024 to recognize Teamsters, Local 986 as an employee organization; and approve the 2025-2028 Memorandum of Understanding by and between the City of Vernon and Teamsters Local Union 986 (Teamsters); C. Adopt Resolution No. 2025-025 approving the 2025-2028 Memorandum of Understanding by and between the City of Vernon and the Vernon Police Management Association (VPMA); and D. Adopt Resolution No. 2025-026 approving the 2025-2028 Memorandum of Understanding by and between the City of Vernon and the Vernon Police Officers’ Benefit Association (VPOBA).
Background
In accordance with state law, the City participates in labor negotiations with the bargaining groups that represent employees of the City. Such negotiations result in Memoranda of Understanding (MOUs) that set forth the terms and conditions of employment for represented City employees.
The City recognizes four bargaining groups including the International Brotherhood of Electrical Workers, Local 47 (IBEW), representing a variety of trainee, maintenance and technical City staff; Teamsters, Local Union 986, representing a variety of technical, maintenance, administrative, and professional City staff; the Vernon Police Management Association (VPMA) representing sworn management City staff; and the Vernon Police Officers’ Benefit Association (VPOBA) representing sworn Officers and Supervisors. Existing MOUs between the City and its four bargaining groups expired June 30, 2025. Pursuant to City Council direction and authority, negotiations with the bargaining groups began in January 2025. Following labor negotiations with each of the bargaining groups, the City has reached tentative successor MOUs with all four groups, subject to approval by the City Council.
2025-2028 MOUs
The following terms are common across all four proposed MOUs:
• Three-year term from July 1, 2025 through June 30, 2028 (key provisions retroactive to the first full pay period after July 1, 2025)
• A limited reopener to discuss a Cost of Living Adjustment (COLA) on base salary ranges for the third year of the MOU term
• Increase in Bilingual Pay from $275 to $300 per month for eligible employees. • Addition of June 19 “Juneteenth” as an authorized City holiday • Additional language regarding retiree monthly reimbursement payment to provide clarity, uniform implementation and administration
2025-2028 IBEW MOU (Resolution No. 2025-023)
Resolution No. 2025-023 approves a successor MOU with IBEW, Local 47 that, in addition to the common MOU terms noted above, reflects the following key provisions:
• Each employee represented by the Union shall be placed within the proposed grade and step pay plan as a result of implementation of the Citywide classification and compensation study, at a grade and step that is closest to but not less than the employee’s current base salary.
• Change in Overtime Compensation from time and a half to double time for all eligible hours worked in excess of forty hours in a single workweek. For employees on DuPont schedule, double time rate shall apply to all hours worked over 48 during the DuPont workweek.
• Addition of Night Shift Differential, employees who work a shift during which at least 50% of hours worked fall between 5:00 p.m. and 5:00 a.m. shall be eligible to receive night shift differential pay of $1.75 per hour.
• Change safety footwear allowance to a voucher program and increase from $200 allowance to a $300 voucher with corresponding modifications to the prorated schedule. • Language change to provide a floating holiday to eligible employees for holidays that fall on a Saturday (not eligible to carry over into the following year or for cash out). • Modification to In Lieu Holiday time. Employees assigned to the DuPont Schedule shall be paid at their regular hourly rate of pay for the holiday, plus double (2X) their regular hourly rate of pay for the actual hours they are required to work on the following designated holidays: New Year’s Day, Fourth of July, Thanksgiving Day and Christmas Day. • Addition to Vacation Accumulation. Effective July 1, 2025, all former Heorot employees who transitioned to City employment upon the City’s re-acquisition of the Malburg Generating Station with continuous and uninterrupted time served as a Heorot and City of Vernon employee will be eligible for City leave accruals based on their total number of continuous and uninterrupted service years with Heorot and the City. • Modification to Standby language. All IBEW covered classifications shall receive four (4) hours of standby pay for each off day and City holiday they are assigned to standby duty.
An employee scheduled for standby may trade with or give their standby assignment to another qualified employee, provided standby coverage is maintained without interruption.
The practice of shift trading is voluntary on behalf of each employee involved in the trade and will not be monitored by the City. Employees scheduled for standby are responsible for ensuring their standby coverage without operational disturbance or interruption.
In addition, Resolution No. 2025-023 memorializes a Side Letter of Agreement between the City and IBEW regarding covered classifications. In July of 2025, IBEW submitted a unit modification that was executed by the City Administrator to reflect the current IBEW covered classifications.
This modification is referenced as a side letter to the 2025-2028 IBEW MOU and Exhibit B to the resolution.
2025-2028 Teamsters MOU (Resolution No. 2025-024)
On June 1, 2025, Teamsters Local 911 merged with Teamsters Local 986 (Teamsters). The Election results and merger were approved by the International Brotherhood of Teamsters. Teamsters Local Union 986 provided documentation to support this change/merger. Resolution No. 2025-024 recognizes Teamsters Local Union 986 (Teamsters) as an employee organization and approves a successor MOU with Teamsters, Local Union 986 that, in addition to the common MOU terms noted above, reflects the following key provisions:
• Each employee represented by the Union shall be placed within the proposed grade and step pay plan as a result of implementation of the Citywide classification and compensation study, at a grade and step that is closest to but not less than the employee’s current base salary.
• Increase in Certificate Pay from 2.5% to 5% of the employee’s base rate of pay for possession of a maximum of one of the designated certificates within a respective classification.
• Addition, deletions, and revisions to the types of certificates eligible for Certificate Pay. • Revision to Uniforms and Safety Footwear Allowance language to include required footwear for non-sworn Police Department employees.
• Change safety footwear allowance to a voucher program and increase from $200 allowance to a $300 voucher with corresponding modification to the prorated schedule. • Language change to provide a floating holiday to eligible employees for holidays that fall on a Saturday (not eligible to carry over into the following year or for cash out). • Addition of double time pay for any employee, including one assigned to a 24-7 operation who is not regularly scheduled to work on a designated holiday but is called in to work on that holiday.
• Addition of Shift Differential for employees who are regularly assigned to a 24-7 operation and work a night shift during which at least fifty percent of hours worked fall between 7:30 p.m. and 5:30 a.m.
2025-2028 VPMA MOU (Resolution No. 2025-025)
Resolution No. 2025-025 approves a successor MOU with the Vernon Police Management Association that, in addition to the common MOU terms noted above, reflects the following key provisions:
• Each employee represented by the Association shall be placed within the proposed grade and step pay plan as a result of implementation of the Citywide classification and compensation study, at a grade and step that is closest to but not less than the employee’s current base salary.
• Addition of Supervisory POST to Certification Incentive Pay. • Change from 110 “in lieu” holiday hours per calendar year to the City determined number of holidays observed multiplied by the employees’ paid hours per shift. 2025-2028 VPOBA MOU (Resolution No. 2025-026)
Resolution No. 2025-026 approves a successor MOU with the Vernon Police Officers’ Benefit Association that, in addition to the common MOU terms noted above, reflects the following key provisions:
• Each employee represented by the Association shall be placed within the proposed grade and step pay plan as a result of implementation of the Citywide classification and compensation plan, as specified in Exhibit A of the MOU. • Addition of Supervisory POST to Certification Incentive Pay. • Change to Field Training Officer (FTO) Pay from 5% to 2.5% while assigned as FTO, and addition of clarification language specifically not to be compounded and not included in payout of leave hours.
• Change to Motor Officers assignment to include 5% premium pay of base salary when assigned to Motorcycle Patrol (this will not be part of employee’s base salary). • Change to Police Corporal Assignment Premium Pay to add 2.5% to Police Corporals designated as Watch Commanders (this will not be part of employee’s base salary). • Vacation Accruals to mirror same accruals as VPMA, and clarification of two sworn Police Officer work shifts.
• Clarification of City Vehicle section adding adherence to Vehicle Use Policy. • Clarification of In-Lieu Holiday section adding adherence to mandated leave labor code.
The proposed MOUs and corresponding resolutions have been approved as to form by the City Attorney.
Fiscal Impact
The total fiscal impact is estimated at $2,206,782. Sufficient funds are available in the salary and benefit accounts of the respective City and Public Utilities Departments for IBEW MOU proposed amendments in the amount of $410,707, Teamsters MOU proposed amendments in the amount of $534,747, VPMA MOU proposed amendments in the amount of $277,675, and VPOBA MOU proposed amendments in the amount of $983,653, for the Fiscal Year 2025-26. Funding for subsequent fiscal years will be included in future proposed budgets.
Attachments
1. IBEW Local 47 MOU Resolution No. 2025-023
2. IBEW MOU 2025-2028 (Redline)
3. Teamsters Local Union 986 MOU Resolution No. 2025-024
4. Teamsters MOU 2025-2028 (Redline)
5. VPMA MOU Resolution No. 2025-025
6. VPMA MOU 2025-2028 (Redline)
7. VPOBA MOU Resolution No. 2025-026
8. VPOBA MOU 2025-2028 (Redline)