GRIDLEY, CA (MPG) - The Gridley City Council on Jan. 29 tentatively approved a new three-year Memorandum of Understanding with International Brotherhood of Electrical Workers Local 1245 that outlines wage increases and benefit changes for city electrical, public works and clerical employees. 

City Administrator Elisa Arteaga presented the draft agreement, noting that the terms reflect months of negotiations with the union and a third-party wage study comparing Gridley salaries to regional benchmarks. 

The city’s previous contract with IBEW expired June 30, 2025. Under the tentative agreement, electrical classifications would receive wage increases of 5% in both fiscal years 2025/26 and 2026/27, followed by 2% in 2027/28. Public works and clerical employees would receive a 3% increase effective July 1, 2025, with no additional raises in the following two years. Arteaga said the adjustments align positions with recommended salary ranges while maintaining the city’s long term financial stability. The contract also updates several benefits, including raising gym membership reimbursement from $25 to $50, increasing the electrical meter certification stipend from $350 to $800, and expanding funeral/bereavement leave from three to five days to match state law. 

Finance Director Martin Pineda estimated the total fiscal impact at $179,213 over the three-year term. He said the city had budgeted for only a 3% increase in the current fiscal year and may bring forward a mid-year adjustment to account for the difference. The wage increases for electrical workers will be paid from the city’s enterprise funds, while the raises for public works and clerical employees will come from the general fund. Future costs could vary depending on staffing levels, overtime, benefits and operational needs.

The City Council also authorized retroactive wage payments back to July 1, 2025, to ensure timely processing of employee W 2 tax documents. The city attorney advised the council that if the final MOU is not ultimately adopted, the city would be required to recoup any retroactive pay issued under the tentative approval. 

Arteaga said both the city and union have reached a tentative agreement, and each employee group has ratified its terms. Only final formatting and typographical revisions are underway with IBEW representatives, but nothing substantive will change, she said.

The completed MOU will return to the council for formal adoption at a future meeting.