That the City Council:
A. Consider and approve a Memorandum of Understanding (MOU) between the City of La Habra and the La Habra General Services Employees' Group for the period of July 1, 2021 through June 30, 2023; and

B. APPROVE AND ADOPT RESOLUTION NO. _____ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA REPEALING AND REPLACING RESOLUTION NO. 5858 PERTAINING TO A COMPENSATION PLAN FOR THE GENERAL SERVICES EMPLOYEES' GROUP; and

C. Approve an appropriation of funds from the Fiscal Year 2020-2021 adopted budget for the first year cost of one-time lump sum pay adjustments for employees.

Representatives from the La Habra General Services Employees Group and City Management have met and conferred regarding salary, benefits, and other terms and conditions of employment, and have reached tentative agreement for a Memorandum of Understanding (MOU, see Attachment 1) for a two-year term for July 1, 2021 through June 30, 2023 to include the following substantive changes:

Year 1 (FY2021-2022)
Salary Adjustment	Effective on the first full pay period in July 2021 the City will provide a two percent (2%) salary adjustment to all unit employees. Effective on the first full pay period in January 2022 the City will provide a one percent (1%) salary adjustment to all unit employees.
Medical Insurance	Effective December 1, 2021 the City will increase its current medical insurance contribution by $50 per month to a maximum of $1,500 per month on a use or lose basis.
Medical Insurance Opt-Out	Effective December 1, 2021 the City will increase medical insurance opt-out contributions by $10 per month for a maximum of $300 per month.
One-Time Lump Sum Payment	On or before June 30, 2021 the City will provide a one-time lump sum pay adjustment of $2,500 to active full-time employees.  Employees hired on or after June 18, 2021 will not be eligible for this one-time payment.
Personal Leave	Effective July 1, 2021 the City agrees to add an additional nine hours of Personal Leave for a total of 27 hours per fiscal year.

 

Year 2 (FY2022-2023)
Salary Adjustment	Effective on the first full pay period in July 2022 the City will provide a two percent (2%) salary adjustment to all unit employees. Effective July 2, 2022 the City will add a new top step to the salary schedule, that will be five percent greater than the previous top step, and eliminate the bottom step. (Step B becomes new Step A, etc.)
Medical Insurance	Effective December 1, 2022 the City will increase its medical insurance contribution by $50 per month to a maximum of $1,550 per month on a use or lose basis.
Medical Insurance Opt-Out	Effective December 1, 2021 the City will increase medical insurance opt-out contributions by $10 per month for a maximum of $310 per month.
One-Time Lump Sum Payment	On or before June 30, 2022 the City will provide a one-time lump sum pay adjustment of $2,500 to active full-time employees.  Employees hired on or after June 17, 2022 will not be eligible for this one-time payment.

The proposed Salary Resolution is included herein as Attachment 2.

If approved, the total cost of the two-year MOU is estimated to be approximately $511,343 and allocated as follows:
 

FY2021-22:	$227,273
FY2022-23:	$284,070
Total:	$511,343

The estimated two-year total cost of the MOU with the La Habra General Services Employees Group consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources.  The breakdown of those costs is as follows:
 

SOURCE		FY21-22	FY22-23	TOTAL
General Fund
	Recurring	$45,945	$66,238	$112,183
	One-Time	$52,227	$59,865	$112,092
General Fund Total		$98,172	$126,103	$224,275
Non-General Fund
	Recurring	$62,867	$70,551	$133,418
	One-Time	$66,234	$87,416	$153,650
Non-General Fund Total		$129,101	$157,967	$287,068
All Funds Total		$227,273	$284,070	$511,343

ED 9.1 – Balanced Fiscal Practices