REPORT TO THE CITY COUNCIL
FROM: SUMEET MALHI, Director
Personnel Services Department
BY: TONY GARCIA, Chief Labor Negotiator
Personnel Services Department
STEPHANIE FOGLIO, Senior Human Resources Analyst
Personnel Services Department
SUBJECT
Title
Actions pertaining to the Fresno City Employees Association, FCEA for Unit 3
1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and the Fresno City Employees Association (Non-Supervisory White Collar - Unit 3) (Subject to Mayor’s Veto)
2. ***RESOLUTION: Adopt the Tenth Amendment to FY 2026 Salary Resolution No. 2025-177, amending Exhibit 3, Unit 3 - Non-Supervisory White Collar (FCEA), to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and the Fresno City Employees Association (Non-Supervisory White Collar - Unit 3) (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 3, Non-Supervisory White Collar, represented by FCEA; and (2) adopt the Tenth Amendment to FY 2026 Salary Resolution No. 2025-177 to amend Exhibit 3.
EXECUTIVE SUMMARY
The City and the Fresno City Employees Association (Non-Supervisory White Collar - Unit 3) 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 December 27, 2026, increases to wages, and other changes in terms or conditions of employment.
Upon Council approval of the Tenth Amendment to the FY26 Salary Resolution, Exhibit 3 of the FY26 Salary Resolution will be updated to reflect the amended Exhibit 3 as approved by Council.
BACKGROUND
The City and the Fresno City Employees Association (Non-Supervisory White Collar - Unit 3) started meeting in March 2025 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on September 26, 2025.
Significant changes to the MOU are summarized below.
• Term: June 16, 2025 through December 27, 2026.
• Salaries: FY26: 5.25% wage increase, effective October 20, 2025.
• Work Schedules: Add provision to allow flexible work schedules mutually agreed upon between the City and employees that comply with FLSA work weeks.
• Overtime: Additional section added to the Overtime section regarding how overtime shall be paid during flexible work schedules.
• Call Back Compensation: Clarify current practice of the way Standby and Call Back are paid if an employee is called back to work. Allow more than one 2-hour minimum Call Back in a day.
• Classification and Compensation Study: The City agrees to work with FCEA to complete a new classification and compensation study.
• Workers’ Compensation: Allow integration of leave for the first year of a workers’ compensation claim.
• Health Reimbursement Arrangement: Allow Holiday Leave and Special Holiday Leave hours to be included in the HRA at the option of the employee. Remove 80-hour qualifying language. Reduce Sick Leave hours in excess from 240 to 100.
• AB 2561: Add new section regarding guidelines for AB 2561.
• Certificate/Premium Pay: Accept additional grades of premium pay.
• Storeskeeper and Senior Storeskeeper in Transportation Certificate Pay: Add new certificate pay for Storeskeeper and Senior Storeskeeper assigned to the Transportation Department.
• Crime Specialist CCIA Certificate Pay: Add new certificate pay for Crime Specialists.
• Sympathy Strike: Add language regarding the Association not condoning sympathy strikes.
• SDI/PFL: Add clarifying language to the provision.
• Sick Leave & Attendance Policy: Incorporate SB 616 into Sick Leave sections.
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 $1,665,664 to the General Fund and $2,988,521 to All Funds in FY26, and $1,371,723 to the General Fund and $2,461,135 to All Funds in FY27, for a total of $3,037,387 to the General Fund and $5,449,656 to All Funds for the term of the MOU, which expires December 27, 2026, and an additional cost of $65,444 in deferred liabilities in future years.
Attachments:
City of Fresno and FCEA MOU - Redline
City of Fresno and FCEA MOU - Final
Costing for Proposed FCEA MOU
Resolution - Tenth Amendment to FY 2026 Salary Resolution No. 2025-177
Salary Tables - Tenth Amendment to FY 2026 Salary Resolution No. 2025-177 - Redline
Salary Tables - Tenth Amendment to FY 2026 Salary Resolution No. 2025-177 - Final