morro bay plantMorro Bay management employees will receive 3 percent raises Tuesday night if Morro Bay’s city council approves a proposed bargaining agreement.

Management staff, which consists of senior officials in city departments, have reached a two-year agreement with city negotiators that would last through June 30, 2016. The terms, including the 3 percent pay raise, would apply retroactively to July 1.

The compensation increases in the agreement will cost the city a total of $41,483, according to a staff report prepared by Administrative Services Director Susan Slayton. That figure includes both salary and benefit hikes.

As part of the compensation increase, the management employees are also slated to receive bumps in city contributions to their health and life insurance and deferred compensation.

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