City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Stephanie Van Steyn, Director of Human Resources |
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Date: |
October 20, 2026 |
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Subject: |
Memorandum of Understanding between the City of Manteca and the General Services Unit represented by Operating Engineers Local Union No. 3 (OE3) |
Recommendation:
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Approving the Memorandum of Understanding between the City of Manteca and the General Services Unit represented by Operating Engineers Local Union No. 3 (OE3).
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Background:
Beginning in February 2026, City representatives and OE3 representatives began meeting and conferring on a successor memorandum of understanding (MOU), as the current MOU was set to expire on June 30, 2026.
The City reached agreement with OE3 and on October 15, 2026, the City was notified that their membership ratified the MOU.
Below is a summary of the significant updated terms of the successor MOU for a three (3) year term.
Salary:
Salary adjustments are consistent with the Gallagher Total Compensation Study completed in March 2026 and are attached to this staff report. The salary adjustments include a minimum of 3% in year 1; minimum of 2% in year 2 and year 3; no Y-Rating of salaries for positions above the median of market; and a minimum of 10% base salary spread between levels of positions. The goal of these adjustments is to close the gap for market competitiveness, while maintaining affordability. The successor MOU formalizes several job classification updates, which includes 60 employees receiving job title updates as part of the Gallagher classification study results; changes include adding levels to some job families and bringing job descriptions current with industry standards.
Other MOU Items:
• Short-Term Disability/Long-Term Disability - benefit clean up language; City assumes 100% of premium, versus 50%;
• Vacation Cashout of up to 40 hours per calendar year, if the employee has used the same number of hours in that calendar year;
• One-Time stipend of $500;
• Solid Waste Equipment Operators assigned to operate the frontloader or the street sweeper will receive a 5% add pay;
• Updates to certification list for eligible job classifications;
• Education Pay- remove probationary restriction; new hires eligible;
• Eliminate Reopener Clause;
• Eliminate Signing Bonus; and
• Other incidental MOU language clean up.
Fiscal Impact:
Below is the associated cost for each fiscal year of the MOU.
The Fiscal Year 2026/27 budget has sufficient appropriations to cover these increases until the mid-year budget update.
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City Cost Item |
Fiscal Year 2026/2027 (8 months remaining in FY) |
Fiscal Year 2027/2028 |
Fiscal Year 2028/2029 |
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Salary: |
$424,988 ($75,464 GF) |
$597,102 ($131,570 GF) |
$550,514 ($123,580 GF) |
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STD/LTD Premium Increase: |
$37,603 ($8,273 GF) |
$38,355 ($8,438 GF) |
$39,122 ($8,607 GF) |
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Vacation Cashout (Costing if all members cashed out 40 hours) |
$223,298 ($49,126 GF) |
$233,572 ($51,386 GF) |
$242,372 ($53,322 GF) |
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Stipend (One-Time) |
$74,500 ($16,390 GF) |
$0 |
$0 |
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Front Loader/Street Sweeper Assignment Add Pay |
$23,712 (5,217 GF) |
$36,100 ($7,942 GF) |
$36,822 ($8,101) |
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TOTAL COST: |
$784,101 ($154,470 General Fund) |
$905,129 ($199,336 General Fund) |
$868,830 ($193,610 General Fund) |
Documents Attached:
1. Attachment 1 - General Services/OE3 MOU - Redlined Version
2. Attachment 2 - General Services/OE3 MOU - Clean Version
3. Attachment 3 - General Services/OE3 Salary Matrix Effective November 1, 2026
4. Attachment 4 - General Services/OE3 Salary Matrix Effective July 1, 2027
5. Attachment 5 - General Services/OE3 Salary Matrix Effective July 1, 2028