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Lodi approves side letters to meet CalPERS rules and a three-year police mid-management MOU
Summary
Council adopted side letters correcting holiday cash-out language to comply with CalPERS reporting and approved a three-year MOU for police mid-management that includes phased wage increases, benefit clarifications and a corrected contribution schedule.
The Lodi City Council on Nov. 19 approved side letters and a memorandum of understanding between the city and its public-safety bargaining units to address CalPERS reporting requirements and to set terms for police mid-management employees.
HR staff reported that a recent audit found holiday cash-outs had not been described in memoranda of understanding in a way that meets CalPERS pension-reporting rules. The side letters — negotiated for four public-safety units and backdated to 2017 to align with CalPERS guidance — specify that holiday pay applies only to employees required to work on approved holidays, that cash-outs or banking of holiday pay apply to classic CalPERS members, and that cash-outs be processed annually in the period the leave is earned. Staff recommended council adopt the side letters so the compensation will be reported correctly to CalPERS.
Separately, council approved a tentative three-year MOU with the Lodi Police Mid Management Organization for the period July 1, 2025, through June 30, 2028. Staff described the agreement as including a multiyear wage plan (including ~3% increases in years two and three), a one-time payment to cover the out-of-term period, bilingual pay increases, a graveyard shift incentive, and adjustments to pension contribution language. HR noted a corrected “blue sheet” that revised contribution rates in the packet before the vote.
Council members voiced support for aligning pay with market comparators and for ensuring the agreements are reported correctly to CalPERS. There were no public comments on these items and the motions to adopt both the side letters and the MOU were approved during the meeting.
