TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Lisa Jenkins, Human Resources Director
Donna Peter, Human Resources Administrator (Special Projects)
SUBJECT:Title
Consideration of a Resolution Approving the Memorandum of Understanding Between the City of Manhattan Beach and the Manhattan Beach Firefighters’ Association (MBFA) (No Budget Impact) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 26-0073
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-0073 Approving the Memorandum of Understanding (MOU) Between the City of Manhattan Beach (City) and the Manhattan Beach Firefighters’ Association (MBFA).
FISCAL IMPLICATIONS:
The annual cost associated with the negotiated compensation increases under the Memorandum of Understanding (MOU) for the upcoming Fiscal Year (2026-27) is approximately $576,482. The ongoing costs associated with the negotiated increases at the end of the three-year MOU will be $1,547,115. The cost of the MOU increase is included in the proposed 2026-2027 operating budget and future budget forecasts.
BACKGROUND:
The Meyers-Milias-Brown Act (MMBA) governs labor-management relations and collective bargaining for many public agencies in California, including for the City of Manhattan Beach. In compliance with the MMBA, the City Council has provided authority and direction to its chief negotiator, who has met and conferred with representatives of the Manhattan Beach Firefighters’ Association (MBFA) to reach the terms of this proposed agreement.
The MBFA represents sworn non-management Fire Department employees, and includes the classifications of Firefighter, Firefighter/Paramedic, Fire Engineer, Fire Engineer/Paramedic, Fire Captain, and Fire Captain/Paramedic. There are currently 30 authorized positions represented by the MBFA. The last MOU with the Manhattan Beach Firefighters’ Association was for a three-year term that expired on June 30, 2026.
Under Government Code section 54957.6 (part of the Ralph M. Brown Act), the legislative body provides authority and direction to its labor negotiator(s) regarding its labor negotiations in closed session. Following an agreement and ratification of the MOU terms by the labor association, a final MOU is presented at a regular Council meeting for final approval.
DISCUSSION:
Negotiations with the majority of the City’s labor associations occurred in 2025 and resulted in three-year agreements ending in 2028. The Fire Association is the only bargaining unit in the City whose MOU expires this year, in 2026.
The 2025 negotiations with the City’s other four full-time labor associations followed a period of peak inflation, relatively low national and regional unemployment rates, and other municipal agencies’ having provided significant salary increases and other benefits during the term of the expiring MOU’s. All of these factors created a climate that led into the 2025 negotiations, requiring higher-than-usual increases in compensation and benefits to meet the expectations of the City’s labor associations, while remaining competitive in recruitment and retention. As labor contracts can be an important factor in promoting employee recruitment and retention, which are critical elements to delivering public services and serving the community’s needs, this interest must be continually balanced along with considerations surrounding the City’s financial position and economic uncertainty. This was discussed in detail recently with the City Council and public during the public hearing on the City’s vacancy rates and recruitment and retention efforts, presented at the May 5, 2026 Council meeting.
Accordingly, in assessing their position in labor negotiations with the MBFA, the City Council considered prior increases granted to other labor associations, along with economic factors and the City’s budget, to provide authority for labor negotiations. Additionally, Consumer Price Index (CPI) data has been periodically reviewed by the City Council, which reflects that CPI over time has outpaced negotiated MOU increases. While the Council carefully evaluated the City’s budget position and economic forecast, providing commensurate increases to the MBFA as it did to other public safety bargaining units was an important consideration for promoting positive employee relations and addressing recruitment and retention considerations.
The following summarizes the significant terms of the negotiated MOUs recommended for City Council approval:
1. Term of Agreement:
• July 1, 2026 through June 30, 2029
2. Cost-of-Living Salary Increases:
• Effective the pay period following July 1, 2026: 6.0%
• Effective the pay period following July 1, 2027: 5.0%
• Effective the pay period following July 1, 2028: 3.55%
3. Temporary Special Assignments
• Increase the temporary special assignment duration from 4 weeks to 8 weeks.
• Receive 10% of the base pay for an assignment longer than 8 weeks.
4. Longevity Pay:
Longevity Pay is a common incentive in public safety departments and is currently provided at 3, 9, and 14-year increments for employees hired before April 22, 2022, and at 15, 20, and 25-year increments for those hired thereafter. The 3, 9, and 14-year longevity pay tiers were established in a prior round of MOU negotiations to address a prior pay structure in the MOU deemed to not be compliant with CalPERS regulations. The negotiated changes below bring the longevity increments for the two tiers of employees in greater alignment, which will continue over time as those hired prior to April 22, 2022, gain more tenure with the City. The MOU includes the following adjustments to longevity tiers throughout the term of the contract.
a. Employees hired before April 22, 2022
i. Effective the pay period following July 1, 2027, longevity pay for employees with 10 years of sworn service will be established at an additional 2.5% of base pay and employees with 14 years of sworn service will receive an additional 2.5% of base pay.
ii. Effective the pay period following July 1, 2028, employees with 10 years of sworn service will receive an additional 2.5% of longevity pay and employees with 14 years of sworn service will receive an additional 2.5% longevity (for a total of 5% for each tier).
iii. The longevity increments for 3 and 9 years remain the same (5% for each tier).
b. Employees hired on or after April 22, 2022
i. Effective the pay period following July 1, 2027, longevity pay for employees with 10 years of sworn service will be established at 2.5% of base pay and employees with 15, 20, or 25 years of sworn service will receive an additional 2.5% of base pay for each tier.
ii. Effective the pay period following July 1, 2028, longevity pay for employees with 10, 15, 20, and 25 years of sworn service will increase an additional 2.5% for each tier (for a total of 5% for each tier).
5. Holiday:
• Increase the total number of holiday hours payable from 149 to 162.5 as a result of adding Juneteenth (June 19th) and aligning the holidays recognized with those recognized by other City bargaining units.
6. Vacation:
• While the vacation leave accrual and caps remain the same, employees will start to earn vacation leave at the time of the appointment rather than receiving the first year’s accrual after 12 months of employment.
• Vacation leave accrual rate includes both full-time service with the City and with another public agency, similar to other bargaining units.
7. Parental Leave
• Add a parental leave provision previously authorized by Council, allowing the employee to receive up to 96 hours of paid leave following the birth of a child or in connection with the adoption, or foster care placement of a child.
8. Miscellaneous:
• Clarify language in the Collateral Duty Pay and State Fire Marshal Certification Pay articles to accurately reflect CalPERS premium requirements, and updated titles for the Office of State Fire Marshal certification courses.
• Adding requirements for the employee to receive Acting Pay, including completing the Fire Department task book and being on the Eligibility List after successfully completing promotional recruitment(s).
• Training classes provided for in MOU are subject to the parameters of a new Fire Department Training Policy.
MOU language has also been updated to memorialize previously approved side letters of agreement, address practices not previously included, clarify language for ease of comprehension and administration, and reorganize articles and sections.
The Manhattan Beach Firefighters’ Association has voted to ratify the MOU.
PUBLIC OUTREACH:
Staff determined that public outreach was not required for this item.
LEGAL REVIEW:
Special Counsel has reviewed the MOU and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 26-0073
2. MBFA MOU (Final Version)
3. MBFA MOU (Strikethrough Version)