DATE: August 5, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Human Resources Department
TITLE: RESOLUTION APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF OCEANSIDE AND THE MANAGEMENT EMPLOYEES OF THE CITY OF OCEANSIDE (MECO)
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution approving and implementing the Memorandum of Understanding between the City of Oceanside and the Management Employees of the City of Oceanside effective July 1, 2026, through June 30, 2028.
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BACKGROUND AND ANALYSIS
The Management Employees of the City of Oceanside (MECO) represents a total of 94 active employees in a variety of mid-management and supervisory classifications throughout the City. In March 2026, the City’s negotiating team and representatives of MECO initiated the meet and confer process. The parties met in good faith and reached a tentative agreement on the terms and conditions of a new bargaining agreement on July 18, 2026. The MECO membership subsequently held a ratification vote and elected, by a simple majority, to approve the agreement.
The proposed Memorandum of Understanding (MOU) is effective July 1, 2026 through June 30, 2028, and includes compensation and contract language clarification as directed by the City Council.
The key economic changes in the proposed Compensation Plan include the following:
1. The current salary schedules for all MECO classifications listed in the shall be modified as follows:
a) Effective the first full pay period following adoption of the new MOU by the Oceanside City Council, a 3% increase to each step of the salary schedules for all classifications represented by MECO.
b) Effective the first full pay period in July 2027, a 3% increase to each step of the salary schedules to each step of the salary schedules for all classifications represented by MECO.
2. Effective January 1, 2027, the City’s total contribution towards health insurance (i.e., applied towards medical, dental and vision only) shall be:
|
Cap (Based on Medical Selection) |
EE Only |
EE+1 |
EE+ Family |
|
Kaiser Plans |
901.25 |
1,524.40 |
1,941.55 |
|
Blue Shield Plans |
1030.00 |
1,751.00 |
2,235.10 |
Effective January 1, 2028, the City’s total contribution towards health insurance (i.e., applied towards medical, dental and vision only) shall be:
|
Cap (Based on Medical Selection) |
EE Only |
EE+1 |
EE+ Family |
|
Kaiser Plans |
946.31 |
1,600.62 |
2,038.63 |
|
Blue Shield Plans |
1,081.50 |
1,838.55 |
2,346.86 |
3. Effective the first full pay period following adoption of this MOU by the Oceanside City Council, the position of City Land Surveyor shall be eligible for certification pay of $2.00/hour.
4. Effective the first full pay period following adoption of this MOU by the Oceanside City Council, the position of Senior Building Inspector shall be eligible for up to $1.00 additional certification pay based on the number of certificates held. 2 building certificates = $0.33/hour; 3 building certificates = $.67/hour; 4 or more = $1.00/hour.
5. Effective the first full pay period following adoption of this MOU by the Oceanside City Council, the positions of Plans Examiner I, II and III shall be eligible for CASp certification pay of $1.00/hour.
6. Effective the first full pay period following adoption of this MOU by the Oceanside City Council, all current bargaining unit members actively employed, shall receive a one-time, non-PERSable payment of $345.00, subject to all applicable taxes/deductions.
FISCAL IMPACT
The fiscal impact associated with the contract terms:
Fiscal Year 2026-27 $ 515,614
Fiscal Year 2027-28 $ 547,863
Total Agreement (Net New) Costs: $ 1,063,477
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Robert O’Brien, Deputy City Manager
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. MECO 2026-28 MOU
2. MECO 2026-28 MOU Resolution