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/Risk Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the City of Fresno Professional Employees Association, Inc., CFPEA for Unit 13 1. ***Adopt a successor Memorandum of Understanding between the City of Fresno and City of Fresno Professional Employees Association, Inc. (Exempt Supervisory and Professional and Non-Exempt Professional - Unit 13) (Subject to Mayor's Veto) 2. ***RESOLUTION: Adopt the Ninth Amendment to FY 2026 Salary Resolution No. 2025-177, amending Exhibit 13-1, Exempt Supervisory and Professional, and Exhibit 13-2, Non-Exempt Professional, to provide a salary increase for respective classes as required by the Memorandum of Understanding between the City of Fresno and City of Fresno Professional Employees Association, Inc. (Exempt Supervisory and Professional and Non-Exempt Professional - Unit 13) (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 13 - Exempt Supervisory and Professional and Non-Exempt Professional, represented by CFPEA; and (2) adopt the Ninth Amendment to FY 2026 Salary Resolution No. 2025-177 to amend Exhibit 13-1, Exempt Supervisory and Professional, and Exhibit 13-2, Non-Exempt Professional. EXECUTIVE SUMMARY The City and City of Fresno Professional Employees Association, Inc. (Exempt Supervisory and Professional and Non-Exempt Professional - Unit 13) 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 Ninth Amendment to the FY26 Salary Resolution, Exhibit 13-1 and Exhibit 13-2 of the FY26 Salary Resolution will be updated to reflect the amended Exhibit 13-1 and Exhibit 13-2 as approved by Council. BACKGROUND The City and City of Fresno Professional Employees Association, Inc. (Exempt Supervisory and Professional and Non-Exempt Professional - Unit 13) started meeting in May 2025 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement on September 15, 2025. Significant changes to the MOU are summarized below. * Term: June 16, 2025 through December 27, 2026. * Salaries: FY26: 4.5% wage increase, effective October 20, 2025. * Annual Leave Years of Service: Remove requirement that the years of service must be continuous for the different accrual tiers. * POST Premium Pay: Addition of a $300/month POST premium pay for Emergency Services Dispatch Supervisors. * Additional Shifts Premium Pay: Agree to a meet and confer regarding the FLSA category for the Emergency Services Dispatch Supervisor classification. * T5 Water Certificate: Addition of a T5 certificate pay to Water System Supervisors who possess a valid Water Treatment Operator Grade V certificate. * Guaranteed Leave: Addition of a second guaranteed leave day for work units with ten employees or more. * Health Reimbursement Arrangement: Agree to meet and confer regarding whether the HRA should allow other leave types to be applicable. * Alternative Workweek Work Schedules: Removed requirement that a 9/80 schedule must have the 8-hour day be a Monday or Friday, if agreed upon by both management and the employee. Modify written notice from a minimum of 30 calendar days to 14. * Holiday Leave: Addition of a provision regarding leave without pay and personal business day accruals. * Supervising Crime Scene Tech Premium Pay: Incorporated current Side Letter of Agreement in MOU. * Shift Bid by Seniority: Addition of definition of seniority. Agreed to meet and confer on seniority ties. * Employee Rights: Added section to clarify that responsibility for arranging leave coverage will be with management and not the employees. * Conflict Resolution Subcommittee: Establish a conflict resolution subcommittee in resolving workplace concerns, conflicts, and issues. 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 $592,299 to the General Fund and $1,668,465 to All Funds in FY26, and $487,776 to the General Fund and $1,374,031 to All Funds in FY27, for a total of $1,080,075 to the General Fund and $3,042,496 to All Funds for the term of the MOU, which expires December 27, 2026. Attachments: City of Fresno and CFPEA MOU - Redline City of Fresno and CFPEA MOU - Final Costing for Proposed CFMEA MOU Resolution - Ninth Amendment to FY 2026 Salary Resolution No. 2025-177 Salary Tables - Ninth Amendment to FY 2026 Salary Resolution No. 2025-177 - Redline Salary Tables - Ninth Amendment to FY 2026 Salary Resolution No. 2025-177 - Final