TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT
SUBJECT
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Memorandum of Understanding Between the City of Chino and the American Federation of State, County and Municipal Employees (AFSCME).
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RECOMMENDATION
1) Adopt Resolution No. 2026-005 approving the Memorandum of Understanding between the City of Chino and the American Federation of State, County and Municipal Employees (“AFSCME”); 2) Adopt Resolution No. 2026-002 approving the Classification Plans and Compensation Schedules for AFSCME; and 3) Approve appropriation in the amount of $318,187 to the various funds listed below in the fiscal impact.
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FISCAL IMPACT
Requires an appropriation from the funds listed below, for an estimated total of $318,187. There are enough reserves of fund balance in each of the funds listed below in FY 2025-26. Detailed cost out information is on file in the Finance Department.
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Transportation Fund 320 |
$36,328 |
Storm Drain 540 |
$7,564 |
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Landscape Lighting Fund 360 |
$32,568 |
Employee Svcs Fund 640 |
$139,340 |
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Assessment District Fund 361 |
$3,481 |
Building Mgmt Fund 650 |
$20,967 |
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Water Fund 520 |
$56,638 |
Equipment Mgmt Fund 660 |
$13,737 |
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Sewer Fund 530 |
$7,564 |
GRAND TOTAL |
$318,187 |
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CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
• Integrity and Accountability
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Expenditure: |
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Transfer Out: Click or tap here to enter text. |
BACKGROUND
On June 30, 2025, the Memoranda of Understanding (“MOUs”) with all City bargaining groups expired. In anticipation of this, designated City staff and labor representatives engaged in good faith negotiations regarding compensation and terms of employment.
Throughout the process, City representatives sought guidance and authorization from the City Council to respond to proposals, ensuring alignment with workforce needs and available resources. An agreement has now been reached with the remaining bargaining group, AFSCME, which includes a competitive salary and benefits package aimed at attracting and retaining highly qualified employees.
ISSUES/ANALYSIS
The City’s negotiations team worked with AFSCME to reach a fair and equitable agreement through open communication and good faith bargaining. Compensation and benefits were determined based on current economic conditions and a review of the previous agreement.
A key focus was refining language in the MOU for clarity and consistency. The team also prioritized developing a comprehensive AFSCME MOU, incorporating previously approved side letters to enhance transparency around salary and benefits.
The City has now reached an agreement with AFSCME for the period of July 1, 2025 through June 30, 2027. The AFSCME MOU includes updates to salaries and benefits, which is attached under Resolution No. 2025-005. If adopted by City Council, Resolution No. 2025-005 will provide employees with:
• A 3% cost-of-living wage adjustment (“COLA”), effective the beginning of the pay period that includes July 1, 2025.
• A 3% COLA, effective the beginning of the pay period that includes July 1, 2026.
• Cash out of unused banked holidays at the end of each fiscal year.
• Increase in Bilingual Pay from $100 to $160 per month for eligible employees.
• City deferred compensation match of $100 per month for eligible employees.
• Additional $50 (for a total of $250) for each eligible certificate beyond the job classification requirements.
If adopted, Resolution No. 2026-002 will update the classification plans and compensation schedules for AFSCME. The salary schedules must also be adopted by City Council in order to comply with Title 2, Section 570.5 of the California Code of Regulations.
Attachments:
1) Resolution No. 2026-005 AFSCME MOU
2) Resolution No. 2026-002 AFSCME Classification Plans and Compensation Schedules