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APPROVAL OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON AND THE STOCKTON POLICE OFFICERS ASSOCIATION
recommended action
RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached successor Memorandum of Understanding (MOU) for the Stockton Police Officers Association effective July 1, 2025 through June 30, 2028.
It is further recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation and funding of the successor MOU.
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Summary
In February 2025, City representatives began negotiations with the Stockton Police Officers Association (SPOA) for a successor MOU, as the contract was set to expire on June 30, 2025. Following a series of bargaining and mediation sessions, the City and SPOA successfully reached an agreement on the terms of a successor MOU. The proposed successor MOU includes a three-year term and provides for cost-of-living and market salary adjustments, the addition of salary steps to the bargaining unit salary schedule and a lump sum payment.
Approval of the successor MOU will ensure continued labor stability and establish the agreed-upon wages, hours, and working conditions for employees represented by SPOA. It is intended to ensure that the City maintains a competitive compensation structure that supports the recruitment and retention of qualified employees while promoting internal equity and fiscal responsibility.
DISCUSSION
Background
The City and the SPOA began negotiations in February 2025 for a successor MOU to replace the agreement that expired on June 30, 2025. The parties participated in numerous bargaining sessions and mediation in September 2025 and again in June 2026. Through the collective bargaining process, the parties ultimately reached a tentative agreement on June 26, 2026, on the terms of a successor MOU.
The tentative agreement was subsequently ratified by the membership of the SPOA and is now presented to the City Council for consideration and approval.
Present Situation
The relevant amendments under the successor MOU for SPOA are summarized as follows:
1. MOU contract term for three (3) years effective July 1, 2025, through June 30, 2028 (SPOA MOU Section 20)
2. Increases to base pay totaling 6% (comprised of a 2% COLA for 2025, a 2% COLA for 2026, and a 2% Market Adjustment) effective the first full pay period following City Council Adoption and an additional 4% (comprised of a 2% COLA and a 2% Market Adjustment) increase effective July 1, 2027 (SPOA MOU Section 15.1).
3. Salary Step Plan. Adds salary steps 7, 8, and 9 to the salary schedule with 2.5% between each added step. Offers advancement in steps for eligible employees (SPOA MOU Section 15.2).
4. Lump Sum Payment. Provides eligible employees with a three thousand and five hundred ($3,500) lump sum non-pensionable bonus (SPOA MOU Section 15.1).
5. Call-Back. Revises the call-back provision by adding a five (5)-hour minimum guarantee at time and one-half (1.5) for employees who are required to respond immediately to unplanned incidents while off duty. It also establishes a three (3)-hour minimum guarantee at time and one-half (1.5) for employees who meet certain criteria and clarifies compensation for periods that overlap with an employee's regular work shift (SPOA MOU Section 11.4).
6. Grievance Procedures. Appeals to the grievance process concerning terminations of employment will be expedited and shall be filed directly at step three (3) with the City Manager with a CC to the Director of Human Resources (SPOA MOU Section 7).
7. Police Sergeant Compaction Reopener. Add that in the event a compaction issue arises within the Sergeant classification as a result of an officer promoting to a higher step than a current Sergeant, the parties agree to meet and confer to resolve the compaction issue (SPOA MOU Section 15.13).
8. Conclusiveness. Add that during the term of this agreement, the City shall not exercise any discretion to defund or otherwise alter the financial terms of the Side Letter Agreement ensuring that all agreed-upon compensation and benefits are fully funded and implemented during the term of this agreement (SPOA MOU Section 24 (d)).
9. Longevity Pay. Clarifies that longevity pay provided under the Recruitment and Retention Side Letter is reportable to CalPERS and requires the parties to meet and confer if CalPERS identifies any reportability issues(SPOA MOU Section 13.21).
10. Holiday Compensation for Non-Patrol Assignments. Adds that when an employee works a 4/10 schedule with Saturday, Sunday and Monday as regular days off and the holiday falls on Monday the employee will receive a floating 10-hour holiday for the city-observed holiday that fell on Monday, which must be used within 90 calendar days. (SPOA MOU Section 12.2).
11. Furlough Hours. Requires all furlough hours to be used prior to accrued vacation and CTO hours (SPOA MOU Section 10.4).
12. Military Leave. Recognizes the “Space Force” as a branch of the military under the military leave provision of the MOU (SPOA MOU Section 9.2).
13. Protected Nature of Family Sick Leave. Updating definition to include “designated person” per law update (SPOA MOU Section 9.1).
14. Bereavement Leave. Updating language to include annual leave for use of bereavement leave purposes when applicable (SPOA MOU Section 9.4).
15. Elimination of obsolete language and other language cleanup changes for the following provisions: bi-weekly pay period, court appearance, and leave of absence.
The proposed agreement has been reviewed by the Administrative Services Department to ensure consistency with the City's compensation strategy and available budget appropriations.
FINANCIAL SUMMARY
COLA ADJUSTMENT
The annual impact of a 6% base wage increase in FY27 with a 4% adjustment in FY28 is shown in the table below. First-year costs are approximately $5.6 million, with an additional $3.9 million in costs for the 2nd year of the agreement.
LUMP SUM
Members will also receive a one-time lump sum payment of $2,500 each. This is a FY27 cost of approximately $1.4 million.
An additional three steps have also been added to the salary schedule. The impact of this change is $2.5 million in FY27, with increased costs of $4.2 million in FY28.
SALARY TABLE ADJUSTMENTS
TOTAL COSTS
The total cost of this proposal is approximately $9.5 million in FY27, with an additional $8.1 million in FY28.
Funding from the Known Contingency Reserve has been earmarked to cover this cost.
Attachment A - SPOA MOU - Redline
Attachment B - SPOA Costing Table