City Council Agenda
Memo to:
Manteca City Council
From:
Stephanie Van Steyn, Director of Human Resources
Date: October 20, 2026
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-Ti...
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