The City, as directed by the City Council, met and conferred with the Union and agreed to a new MOU that will expire June 30, 2025.  The current MOU expires on April 20, 2022.

The City and Union agreed to a new MOU with the term of April 16, 2022 to June 30, 2025.   The City and the Union agreed to the following:

• A three and one half percent (3.5%) base salary increase effective after the approval of this MOU, 2022; a three and one half percent (3.5%) base salary increase effective July 2023; and, a three and one half percent (3.5%) base salary increase effective July 2024.
• Eliminate Step A of the salary schedule, effective July 2024.
• Medical benefit contributions increases in July 2022, January 2024, and January 2025. 
• Bilingual pay of 3% of base salary for verbal only skills.
• Tuition reimbursement increased to $3,000 per fiscal year.
• Homeless Liaison Officer pay of 5% of base salary for 4 Police Officers and 1 Sergeant in the Special Resources Team.
• Life insurance coverage increased to 150% of an individual’s annual salary.
• Association release time to be provided each year for up to 300 hours.

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 April 12, 2022 City Council meeting.  In order to not delay any changes that this MOU provides, it is requested that the City Council give the Human Resources Director the authorization to agree to any final language revisions agreed to by the parties.  There would not be any financial changes, only language changes.

The estimated costs for the proposed MOU provisions are $0.2 million for the remaining of FY 2021-22, $1.3 million for FY 2022-23, $2.5 million for FY 2023-24, and $3.9 million for FY 2024-25, for a total cumulative cost increase of $7.9 million over the term of the MOU (attachment A).   These estimated costs do not include normal increases resulting from annual merit increases, changes in an employee’s specialty pay eligibility or longevity, promotions, and pension costs.

Due to some labor savings as a result of vacant positions, the estimated additional cost of approximately $0.2 million for the current fiscal year will be absorbed within the existing FY 2021-22 budget.  An additional appropriation of $1.3 million to the General Fund for FY 2022-23 will be included in the budget amendment to be presented to Council in June 2022.   Future budget appropriations will be made as appropriate during the budget process.   

It is recommended that the City Council:

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

• Authorize the Human Resources Director to finalize any last minute language changes that may occur between the parties.