REPORT TO THE CITY COUNCIL
FROM: SUMEET MALHI, Director
Personnel Services Department
BY: TONY GARCIA, Chief Labor Negotiator
Personnel Services Department
YER TAYLOR, Principal Labor Relations Analyst
Personnel Services Department
SUBJECT
Title
Actions pertaining to the City of Fresno Management Employees Association, CFMEA for Unit 14
1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association (Management Classes - Unit 14) (Subject to Mayor’s veto)
2. ***RESOLUTION: Adopt the Second Amendment to FY 2026 Salary Resolution No. 2025-177, amending Exhibit 14, Unit 14 - Management Classes (CFMEA), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and the City of Fresno Management Employees Association (Management Classes - Unit 14) (Subject to Mayor’s veto)
Body
RECOMMENDATION
It is recommended Council (1) approve the attached successor Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 14, Management Classes, represented by CFMEA; and (2) adopt the Second Amendment to FY 2026 Salary Resolution No. 2025-177 to amend Exhibit 14.
EXECUTIVE SUMMARY
The City and the City of Fresno Management Employees Association (Management Classes - Unit 14) reached a tentative agreement on a successor MOU which will replace the MOU that expired on June 15, 2025. The MOU provides for an agreement from June 16, 2025 through June 13, 2027, increases to wages, and other changes in terms or conditions of employment.
Upon Council approval of the Second Amendment to the FY 2026 Salary Resolution, Exhibit 14 of the FY 2026 Salary Resolution will be updated to reflect the amended Exhibit 14 as approved by Council.
BACKGROUND
The City and the City of Fresno Management Employees Association (Management Classes - Unit 14) met on July 9, 2025 to work towards reaching agreement on a successor MOU and the parties reached a tentative agreement on July 9, 2025. Members of the Association ratified on July 15, 2025.
Changes to the MOU are summarized below.
• Term: Two-year contract effective June 16, 2025 through June 13, 2027.
• Salaries:
o FY26: 3% wage increase effective July 28, 2025.
o FY26: Potential 1% wage increase effective December 29, 2025, contingent on achieved growth metrics.
o FY27: 1% wage increase effective June 15, 2026.
o FY27: Potential 0.5% or 1% wage increase effective December 28, 2026, contingent on achieved growth metrics.
• Voluntary Leave Time Program: Adding new provision on Voluntary Leave Time (VLT) Program.
• Lockout and Strikes: Adding new language on the Association not condoning or supporting strikes, sympathy strikes, work stoppages, sickouts, walkouts, or other concerted activity that interfere directly or indirectly with City operations.
• Holiday Leave: Adding clarifying language on the cash out amount and provision regarding leave without pay and the two personal business day accruals.
• Attendance Policy & Annual Leave: Adding clarifying language on the cash out amount.
• Life Insurance & Disability Coverage: Adding clarifying language on leave without pay status and approval.
In addition to the above, there was language clean up throughout the MOU.
The City Attorney’s Office has approved the new MOU and Salary Resolution Amendment as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno.
FISCAL IMPACT
Approval of the MOU and Salary Resolution Amendment will result in estimated additional salary and benefit expenses of $308,325 to the General Fund and $790,639 to All Funds in FY26, and $548,065 to the General Fund and $1,405,352 to All Funds in FY27, for a total of $856,390 to the General Fund and $2,195,991 to All Funds for the term of the MOU, which expires June 13, 2027.
Attachments:
City of Fresno and CFMEA MOU - Redline
City of Fresno and CFMEA MOU - Final
Costing for Proposed CFMEA MOU
Resolution - Second Amendment to FY 2026 Salary Resolution No. 2025-177
Salary Tables - Second Amendment to FY 2026 Salary Resolution No. 2025-177 - Redline
Salary Tables - Second Amendment to FY 2026 Salary Resolution No. 2025-177 - Final