The City, at the Council’s direction, met and conferred with the Union and agreed to a three (3) year MOU that will expire June 30, 2018.  The prior MOU expired on June 30, 2015.

The MOU provides for an increase to the City’s cafeteria benefits in January 2016, January 2017, and January 2018. The City and Union agreed to move away from the current City Fringe Benefit Formula – Composite Figure to flat rate adjustments towards the City’s cafeteria benefits in the future.

The City and Union also agreed to an increase to the City’s annual contribution to the Association’s Retiree Medical Trust, and a new 4% H step at the top of the salary range for Police Officers and Police Sergeants.

The final language of this MOU is still being worked out by the legal representatives of both parties and the document may not be finalized until after the March 8^th, 2016, City Council meeting.  In order to not delay any changes that this MOU provides, it is requested that the City Council give the City Manager the authorization to approve any final language revisions agreed to by the parties.  There would not be any financial changes, only language changes.

The estimated cost for the increase in the City’s cafeteria contributions is approximately $230,880 for 2016, $189,180 for 2017, and $43,200 for 2018.  The estimated cost for the increase to the Retiree Medical Trust is $86,400 per year.  The new H step is estimated to cost $447,675 for FY 17/18.

Future budgets appropriations will be made as appropriate to accommodate these estimated costs.

It is recommended that the City Council:

• Adopt the attached Resolution that approves the Memorandum of Understanding between the Garden Grove Police Association and the City.

• Authorize the City Manager to finalize and approve any last minute language changes agreed to by the parties.