Title
Successor Labor Agreements/Memoranda of Understanding; and the Citywide Salary Schedule [Two-Thirds Vote Required]
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FileID
File ID: 2026-00812
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution by two-thirds vote: 1) waiving the requirement for 10-day posting of labor agreements; 2) approving the Memorandum of Understanding (MOU) between the City of Sacramento (City) and Sacramento-Sierra’s Building and Construction Trades (BLT); 3) approving the MOU between the City and Sacramento City Exempt Employees Association (SCXEA); 4) approving the MOU between the City and the Auto Marine and Specialty Painters, Local 1176 (L1176); 5) approving the MOU between the City and Plumbers and Pipefitters, Local 447 (L447); 6) approving the revised citywide salary schedule; 7) authorizing the City Manager to conduct the necessary budget adjustments and transfers from fund balances to adequately fund the MOUs; and 8) authorizing the City Manager or designee to make minor changes or adjustments to the exhibits in order to correct omissions and errors in the MOU and salary schedule.
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Contact
Contact: Aaron Donato, Labor Relations Manager, (916) 808-5816, adonato@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-BLT MOU (Redline)
3-SCXEA MOU (Redline)
4-L1176 MOU (Redline)
5-L447 MOU (Redline)
6-Salary Schedule (Redline)
7-BLT Labor Agreement Costing
8-SCXEA Labor Agreement Costing
9-L1176 Labor Agreement Costing
10-L447 Labor Agreement Costing
11-Resolution
12-Exhibit A - BLT MOU
13-Exhibit B - SCXEA MOU
14-Exhibit C - L1176 MOU
15-Exhibit D - L447 MOU
16-Exhibit E - Salary Schedule Final
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Description/Analysis
IssueDetail
Issue Detail:
Sacramento-Sierra’s Building and Construction Trades (BLT) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and BLT expired on July 11, 2025. The City and BLT have negotiated a successor MOU. Attachment 2 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: July 12, 2025, through July 7, 2028.
• Effective July 12, 2025, salary ranges will be increased by one percent (1.0%).
• Within forty-five (45) calendar days, employees will receive a signing bonus of five hundred dollars ($500).
• Effective April 18, 2026, employees required to be on standby assignment for emergency work shall be paid forty-seven dollars ($47) per day while on standby.
• Effective July 1, 2026, the classifications of Electrician Supervisor and Supervising Generator Technician are eligible for BLT’s Supervisory Personal Time Off annual allotment of twenty-four (24) hours.
• Effective July 11, 2026, salary ranges will be increased by two and one half percent (2.5%).
• Effective July 10, 2027, salary ranges will be increased by three percent (3.0%).
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective April 18, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
• Longevity: Employees who have completed seventeen (17) years of service are eligible to receive longevity pay as follows:
• Effective July 11, 2026, one percent (1%) above their base rate of pay.
• Effective July 10, 2027, two percent (2%) above their base rate of pay, for a cumulative total of three percent (3%).
The final version of the BLT MOU is attached to the Resolution as Exhibit A (Attachment 12).
Sacramento City Exempt Employees Association (SCXEA) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and SCXEA expired on September 19, 2025. The City and SCXEA have negotiated a successor MOU. Attachment 3 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: September 20, 2025, through September 15, 2028.
• Effective September 20, 2025, salary ranges will be increased by one percent (1.0%).
• Within forty-five (45) calendar days, employees will receive a signing bonus of five hundred dollars ($500).
• Effective April 18, 2026, employees required to be on standby assignment for emergency work shall be paid forty-seven dollars ($47) per day while on standby.
• Effective April 18, 2026, the downtown parking subsidy for Confidential/Administrative (Unit 10) employees who work downtown will be increased as follows:
• one-hundred twenty dollars ($120) per month for full time employees, and
• ninety dollars ($90) per month for part-time employees.
• Effective September 19, 2026, salary ranges will be increased by two and one half percent (2.5%).
• Effective September 18, 2027, salary ranges will be increased by three percent (3.0%).
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective April 18, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
The final version of the SCXEA MOU is attached to the Resolution as Exhibit B (Attachment 13).
Auto Marine and Specialty Painters, Local 1176 (L1176) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and L1176 expired on January 9, 2026. The City and L1176 have negotiated a successor MOU. Attachment 4 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: January 10, 2026, through January 5, 2029.
• Effective January 10, 2026, salary ranges will be increased by one percent (1.0%).
• Within forty-five (45) calendar days, employees will receive a signing bonus of five hundred dollars ($500).
• Effective April 18, 2026, employees required to be on standby assignment for emergency work shall be paid forty-seven dollars ($47) per day while on standby.
• Effective January 9, 2027, salary ranges will be increased by two and one half percent (2.5%).
• Effective January 8, 2028, salary ranges will be increased by three percent (3.0%).
• Addition of Juneteenth (June 19) as a recognized holiday.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective April 18, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
• Longevity: Employees who have completed seventeen (17) years of service are eligible to receive longevity pay as follows:
• Effective January 9, 2027, one percent (1%) above their base rate of pay.
• Effective January 8, 2028, two percent (2%) above their base rate of pay, for a cumulative total of three percent (3%).
The final version of the L1176 MOU is attached to the Resolution as Exhibit C (Attachment 14).
Plumbers and Pipefitters, Local 447 (L447) Successor Labor Agreement/Memorandum of Understanding (MOU)
The 2023-2025 MOU between the City and L447 expired on July 11, 2025. The City and L447 have negotiated a successor MOU. Attachment 5 is a redline version of the successor MOU which includes the following major new contract terms:
• New term: July 12, 2025, through July 7, 2028.
• Effective July 12, 2025, salary ranges will be increased by one percent (1.0%).
• Within forty-five (45) calendar days, employees will receive a signing bonus of five hundred dollars ($500).
• Effective April 18, 2026, employees required to be on standby assignment for emergency work shall be paid forty-seven dollars ($47) per day while on standby.
• Effective July 11, 2026, salary ranges will be increased by two and one half percent (2.5%).
• Effective July 10, 2027, salary ranges will be increased by three percent (3.0%).
• Addition of Juneteenth (June 19) as a recognized holiday.
• Addition of foul weather jackets.
• Health and Welfare Contributions
• 2026 Calendar Year Health Changes, effective April 18, 2026:
§ Employee Only - City contribution of $1,051 per month,
§ Employee Plus One Dependent - City contribution of $1,674 per month, and
§ Employee Plus Two or More Dependents - City contribution of $2,230 per month.
• 2027 Calendar Year Health Changes, effective the first paycheck of 2027:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2026 to plan year 2027.
• 2028 Calendar Year Health Changes, effective the first paycheck of 2028:
§ The City will contribute fifty percent (50%) of the first one hundred dollars ($100) of premium increases, up to a maximum contribution of fifty dollars ($50) per month, toward the cumulative total increase in premiums from plan year 2027 to plan year 2028.
• Longevity: Employees who have completed seventeen (17) years of service are eligible to receive longevity pay as follows:
• Effective July 11, 2026, one percent (1%) above their base rate of pay.
• Effective July 10, 2027, two percent (2%) above their base rate of pay, for a cumulative total of three percent (3%).
The final version of the L447 MOU is attached to the Resolution as Exhibit D (Attachment 15).
Salary Schedule
The California Code of Regulations requires that the City Council adopt the City’s Salary Schedule at a public meeting (2 CCR § 570.5). This obligation arises whenever salary ranges are changed to ensure that salary rates are transparent and publicly available. These publicly adopted rates are used by California Public Employees’ Retirement System (CalPERS) to determine the appropriate compensation earnable for each City employee when calculating their pension benefit.
A redline version of the salary schedule is shown in Attachment 6. The final, comprehensive Citywide salary schedule is attached to the Resolution as Exhibit E (Attachment 16).
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PolicyConsiderations
Policy Considerations: Approval of this action by the City Council is consistent with the City’s legal obligation under the Meyers-Milias-Brown Act, adheres to the City’s positive labor management relations concept, and provides labor stability.
The Sacramento City Code Section 4.04.020 and Council Rules and Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to Council action. This provision will be waived by City Council.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Approval of this action will establish new MOUs between the City and the specified Recognized Employee Organizations (REOs). Additionally, approval of this action will establish compliance with the California Code of Regulations § 570.5.
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FinancialConsiderations
Financial Considerations: The total cost of the proposed MOUs for Fiscal Year (FY) 2025/26 is approximately $2.3 million with an ongoing annual cost at the end of the three-year term of approximately $14.3 million, as shown below and detailed in Attachments 7, 8, 9, and 10.
The General Fund portion is approximately $1.4 million in FY2025/26 with an ongoing cost of $9.1 million. The City's latest General Fund five-year forecast is in deficit. During the mid-year process, the forecast assumed $1.6 million in FY2025/26 and up to $12.1 million on an ongoing basis for the proposed MOUs and previously approved MOUs. The forecast including the final MOUs costs is shown below.
The City will use prior year savings to balance FY2025/26 and will need to implement spending reductions and/or revenue increases in order to balance the City budget in FY2026/27 and beyond, as required by the City Charter.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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