The City, at the City 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 and January 2017.  The City and the 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. Additionally, the City will designate Martin Luther King Jr. Day and Columbus Day as new eight (8) hour holidays in 2016.

The City and the Union also agreed to a new 4 percent H step at the top of the salary range for Police Lieutenant and Police Captain effective Fiscal Year 2017/2018. The final language of this MOU is still being worked out, and may not be finalized until after the February 14, 2017, 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 agree to 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 $9,413 for 2016, and $12,072 for 2017.  The holidays are estimated to cost $19,656 annually and the new H step is estimated to cost $58,000 for Fiscal Year 2017/2018.  Future budget appropriations will be made as appropriate to accommodate these estimated costs.

It is recommended that the City Council:

• Adopt the attached Resolution approving the Memorandum of Understanding on salaries, wages, and fringe benefits for the Term 2015-2018 with the Garden Grove Police Management Association; and

• Authorize the City Manager to finalize any last minute language changes that may occur between the parties.