TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Diego Chavez, Administrative Services Director
SUBJECT:
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First Amendment to Murrieta Supervisors’ Association Memorandum of Understanding 2024-27, Increasing the Monthly Health Contribution Amount and Updating the List of MSA-Represented Classifications
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ABSTRACT
The City Council is being asked to consider approving a First Amendment to the Memorandum of Understanding (MOU) with the Murrieta Supervisors’ Association (MSA or Association). The amendment would increase the City’s monthly health contribution by $185.25, from $1,936.28 to $2,121.53, effective January 1, 2027. It would also update the list of MSA-represented classifications to reflect current approved classifications.
RECOMMENDATION
recommendation
Adopt Resolution No. 26-4971 entitled: A Resolution of the City Council of the City of Murrieta, California, Accepting, Approving, and Adopting the First Amendment to the Memorandum of Understanding between the City of Murrieta and the Murrieta Supervisors’ Association for the period July 1, 2024, through June 30, 2027.
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PRIOR ACTION/VOTE
On October 7, 2025, the City Council adopted Resolution No. 25-4889, approving, adopting, and implementing a successor MOU between the City of Murrieta and the Murrieta Supervisors’ Association (MSA) for the period July 1, 2024, through June 30, 2027 (Vote: 5-0).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal of: maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency relating to an administrative priority.
DISCUSSION
The current MOU between the City of Murrieta (City) and the MSA, adopted by City Council Resolution No. 25-4889, covers the period July 1, 2024, through June 30, 2027 (MSA MOU 2024-27).
MSA MOU 2024-27 contains the following provision in pertinent part:
ARTICLE 2.16 INSURANCE AND RETIREMENT BENEFITS
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The parties agree to reopen this MOU when the new 2026 and 2027 health premium rates are published to discuss increases in City contribution for January 1, 2026, and January 1, 2027.
The City contracts with the California Public Employees’ Retirement System (CalPERS) to provide health benefits to employees, and CalPERS announced the 2027 health premiums on July 14, 2026. The City’s and MSA’s labor representatives met on August 25, 2026, to discuss the health contribution reopener in Article 2.16. The parties subsequently met again on September 3, 2026, to continue in good faith discussions regarding the monthly Section 125 Cafeteria Plan contribution amount for calendar year 2027. Thereafter, the parties reached a tentative agreement that requires City Council approval due to the additional City-funded health contribution provided to each employee. Effective January 1, 2027, the total monthly Section 125 Cafeteria Plan contribution shall increase by $185.25, from $1,936.28 to $2,121.53.
The City’s and MSA’s labor relations representatives also agreed to update the MSA MOU 2024-27 Exhibit A, which is a List of MSA-Represented Classifications, to align with approved classifications and to make the list current.
The City’s and MSA’s labor relations representatives desire to memorialize their tentative agreement by means of a First Amendment to the MSA MOU 2024-27 (Attachment 1) that addresses the increase to the monthly Section 125 Cafeteria Plan contribution and the updated List of MSA-Represented Classifications.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
FISCAL IMPACT
The fiscal impact of approving the proposed First Amendment to MSA MOU 2024-27 for FY 2026/27 is $95,589. The FY 2026/27 monthly health contribution costs will be incorporated into the Operating Budget during an upcoming Budget Update.
ATTACHMENTS
ATT 1 - Resolution No. 26-4971