REPORT TO THE CITY COUNCIL FROM: SUMEET MALHI, Director Personnel Services Department BY: YER TAYLOR, Principal Labor Relations Analyst Personnel Services Department SUBJECT ..Title Actions pertaining to the City of Fresno Management Employees Association (CFMEA) for Unit 14 1. ***Adopt a Side Letter of Agreement between the City of Fresno and City of Fresno Management Employees Association (CFMEA - Unit 14) (Subject to Mayor's veto) ..Body RECOMMENDATION It is recommended Council approve the Side Letter of Agreement between the City and CFMEA to implement Annual Leave accrual adjustments for City employees in Unit 14, represented by CFMEA. EXECUTIVE SUMMARY The City of Fresno and City of Fresno Management Employees Association (CFMEA - Unit 14) reached a tentative agreement on a Side Letter of Agreement which implements Annual Leave accrual adjustments for City employees in Unit 14. Upon Council approval of the Side Letter of Agreement, the Annual Leave accruals for Unit 14 employees will be adjusted to reflect the amended language. BACKGROUND The current Memorandum of Understanding (MOU) between the City of Fresno and CFMEA states, "In the event the City agrees to a higher annual leave accrual rate for members of recognized labor organizations who participate in the City of Fresno Employees Retirement System, the City agrees that it will increase the Annual Leave accrual rate to the same level for employees represented by the Association." In the recent years, the City of Fresno and City of Fresno Professional Employees Association, Inc. (CFPEA) ratified language carving out a higher level of accrual for employees with more than twenty years of service and eliminating the "continuous" service requirement from all sections pertaining to Annual Leave accrual. This language in the CFMEA MOU was recently brought to the attention of the City. Therefore, the City is adjusting the Annual Leave accrual rate for Unit 14 employees to the same level as those employees in Unit 13. The City and CFMEA reached a tentative agreement on the Side Letter of Agreement on March 19, 2026. The Annual Leave accrual adjustments in the Side Letter of Agreement will be effective the first of the month following Council approval. The City Attorney's Office has approved the Side Letter of Agreement 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 Side Letter of Agreement and Salary Resolution Amendment will result in an estimated additional salary and benefit expenses of $5,986 to the General Fund and $27,429 to All Funds in FY26, $40,183 to the General Fund and $83,357 to All Funds in FY27, for a total of $46,169 to the General Fund and $110,787 to All Funds for the term of the MOU, which expires on June 13, 2027. Attachment: Side Letter of Agreement between the City of Fresno and CFMEA