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Consent
Item No. 7.
| MEETING DATE: 06/02/2025 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Gabriella Yap, Assistant City Manager |
| SUBJECT: | APPROVE RESOLUTIONS ADOPTING MEMORANDUMS OF UNDERSTANDING WITH THE LA HABRA POLICE ASSOCIATION SWORN AND CIVILIAN EMPLOYEES; AND APPROVE A RESOLUTION ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH PROFESSIONAL EMPLOYEES’ GROUP
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RECOMMENDATION:
That the City Council:
A. APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA ADOPTING MEMORANDUMS OF UNDERSTANDING BETWEEN THE CITY OF LA HABRA AND THE LA HABRA POLICE ASSOCIATION FOR SWORN AND CIVILIAN EMPLOYEES; and,
B. APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF LA HABRA AND THE PROFESSIONAL EMPLOYEES’ GROUP.
DISCUSSION:
The City’s current labor agreements with the La Habra Police Association (LHPA) for Sworn and Civilian Employees will expire on June 30, 2025. Representatives from the LHPA and City Administration have met and conferred in good faith in accordance with the Meyers Milias-Brown Act regarding salary, benefits, and other terms and conditions of employment, and have reached tentative agreements for successor Memorandums of Understanding. LHPA Sworn and Civilian have agreed to four-year contract terms for the period of July 1, 2025, through June 30, 2029, subject to City Council approval.
The City’s current labor agreement with the Professional Employees’ group will expire on June 30, 2025. Representatives from the Professionals' Employee Group and City Administration have met and conferred in good faith in accordance with the Meyers Milias-Brown Act regarding salary, benefits, and other terms and conditions of employment. A tentative agreement for a successor Memorandum of Understanding has been reached. The positions within the Professional Employees' Group are funded through state grants, and definitive funding marks for the upcoming fiscal year have not yet been finalized. The Professional Employees’ Group has agreed to a six-month contract term, starting on July 1, 2025, and ending on December 31, 2025, subject to City Council approval.
The key terms for each group are as follows:
The City’s current labor agreement with the Professional Employees’ group will expire on June 30, 2025. Representatives from the Professionals' Employee Group and City Administration have met and conferred in good faith in accordance with the Meyers Milias-Brown Act regarding salary, benefits, and other terms and conditions of employment. A tentative agreement for a successor Memorandum of Understanding has been reached. The positions within the Professional Employees' Group are funded through state grants, and definitive funding marks for the upcoming fiscal year have not yet been finalized. The Professional Employees’ Group has agreed to a six-month contract term, starting on July 1, 2025, and ending on December 31, 2025, subject to City Council approval.
The key terms for each group are as follows:
LHPA
Contract Term
- Four-year term, starting on July 1, 2025 and ending on June 30, 2029
Base Salary Compensation
- LHPA Sworn Base Salary Compensation - Salary adjustment for all LHPA Sworn members:
- Effective the first full pay period in July 2025, the City will provide a four percent (4%) salary adjustment to all unit members.
- Effective the first full pay period in January 2026, the City will eliminate the current bottom Step A from the current salary schedule. Step B will become the new Step 1, Step C will become the new Step 2, etc. Employees at the current bottom Step A in the first full pay period in January 2026 will move to the new Step 1. All other employees will remain at the Step that is equivalent to their current pay (e.g. Step C at Step 2) until their next applicable merit increase. The City will also add a new top step 8 of 2.5% to the salary schedule.
- Effective the first pay period in July 2026, the City will provide a four percent (4%) salary adjustment to all unit members.
- Effective the first pay period in July 2027, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first pay period in January 2028, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first full pay period in January 2028, the City will increase step 8 from two and one-half percent (2.5%) to five percent (5%) over Step 7.
- Effective the first pay period in July 2028, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first pay period in January 2029, the City will provide a two percent (2%) salary adjustment to all unit members.
- LHPA Civilian Base Salary Compensation - Salary adjustment for all LHPA Civilian members
- Effective the first full pay period in July 2025, the City will provide a four percent (4%) salary adjustment to all unit members.
- Effective the first pay period in July 2026, the City will provide a four percent (4%) salary adjustment to all unit members.
- Effective the first pay period in July 2027, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first pay period in January 2028, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first pay period in July 2028, the City will provide a two percent (2%) salary adjustment to all unit members.
- Effective the first pay period in January 2029, the City will provide a two percent (2%) salary adjustment to all unit members.
One-Time Compensation
- Prior to June 30, 2025, the City will provide a one-time lump sum pay adjustment of two percent (2%) for all full-time employees.
- Employees must still be employed as of June 30, 2025
- Employees hired on or after June 1, 2025 will not be eligible for the lump sum payment.
- The calculation of the one-time pay adjustment will be as follows: base hourly rate x 2,080 hours x .02.
Cafeteria Insurance Contribution:
- The City will provide a monthly cafeteria contribution effective on the following dates as follows:
| Year | Single | Two-party | Family |
| Dec. 1, 2025 | $1,450 | $1,850 | $2,150 |
| Dec. 1, 2026 | $1,450 | $1,950 | $2,250 |
| Dec. 1, 2027 | $1,500 | $2,050 | $2,350 |
| Dec. 1, 2028 | $1,550 | $2,150 | $2,450 |
Retirement Health Savings Plan - RHS (LHPA Civilian Members only):
- Effective July 12, 2025, the City will increase its contribution by $10 per month to a total of $60 per month for each unit member.
Special Assignment Pay (Sworn Only):
- Effective July 12, 2025, the City will increase the special assignment pay by $50 per month to a maximum of $450 per month.
POST Certificate Pay:
- Effective the first full pay period in July 2025, the City will increase POST pay to the following levels:
- LHPA Civilian
- Intermediate POST for Dispatchers $200 per month
- Advanced POST for Dispatchers $500 per month
- LHPA Sworn
- Advanced POST for Sworn $850 per month
- Supervisory POST for Sworn 1,150 per month
- LHPA Civilian
- Effective the first full pay period in July 2027, the City will increase POST pay to the following levels:
- LHPA Civilian
- Intermediate POST for Dispatchers $400 per month
- Advanced POST for Dispatchers $700 per month
- LHPA Civilian
- Effective the first full pay period in January 2029, the City will increase the POST pay as follows:
- LHPA Sworn
- Advanced POST for Sworn $900 per month
- Supervisory POST for Sworn 1,200 per month
- LHPA Sworn
Retention Incentive Program:
- The City agrees to modify Article Two of the MOU for Sworn only to implement a Retention Incentive program effective the first full period in October 2025 as follows: Effective the first full pay period in October 2025, employees, upon commencement of their 10th year of sworn service, will receive retention incentive pay of $250 per month. Employees, upon commencement of their 16th year of sworn service, will receive retention incentive pay of $500 per month.
PROFESSIONAL EMPLOYEES’ GROUP
Contract Term
- Six-month term, starting on July 1, 2025, and ending on December 31, 2025
Base Salary Compensation
- Effective July 12, 2025, the City will provide a three percent (3%) salary adjustment to all unit members.
- Effective July 12, 2025, Step A of the salary schedule will be removed. Step B will become Step 1. Employees on Step A will move to the new Step 1. All others will remain on their current Step. For compatibility with the City’s payroll system, steps will be renamed from alphabet letters (Step A, Step B, etc.) to numbers (Step 1, Step 2, etc.)
One-Time Compensation
- Prior to June 30, 2025, the City will provide a one-time lump sum pay adjustment of eight percent (8%) to all full-time employees.
- Employees must still be employed as of June 30, 2025
- Employees hired on or after June 16, 2025 will not be eligible for the lump sum payment.
- The calculation of the one-time pay adjustment will be as follows: base hourly rate x 2,080 hours x .08.
Cafeteria Insurance Contribution
- Effective December 1, 2025, the City will increase its current insurance contribution by $75 per month to a maximum of $1,800 per month on a use or lose basis.
- Effective December 1, 2025, the City will increase its current opt-out contributions by $25 per month to a maximum of $350 per month.
FISCAL IMPACT/SOURCE OF FUNDING:
Cost Estimate of Negotiated Pay and Benefits
If approved, the combined total cost of both the Sworn and Civilian four-year MOU’s are estimated to be approximately $2,853,397 plus a one-time cost of $244,149 in FY 2024-2025. The costs are allocated as follows:
FY2024-2025: One Time Cost: $244,149
FY2025-2026: Recurring Cost $942,529
FY2026-2027: Recurring Cost $697,695
FY2027-2028: Recurring Cost $640,813
FY2028-2029: Recurring Cost $572,360
Total: Recurring Cost $2,853,397
The estimated four-year total cost of the MOU with the La Habra Police Association/Sworn Employees consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources.
The breakdown of those costs associated with the Sworn staff is as follows:
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The estimated four-year total cost of the MOU with the La Habra Police Association Civilian Employees consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources.
The breakdown of those costs association with the Civilian staff is as follows:
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PROFESSIONAL EMPLOYEES’ GROUP
Cost Estimate of Negotiated Pay and Benefits
If approved, the total cost of this six-month MOU is estimated at approximately $113,013. Costs associated with salary, benefits, and other terms and conditions of employment with employees in the group are completely state grant-funded.
This estimated cost consists of both recurring costs and “one-time” costs apportioned to the Non-General Fund budget. The breakdown of these estimated costs and funding source, is as follows:
If approved, the combined total cost of both the Sworn and Civilian four-year MOU’s are estimated to be approximately $2,853,397 plus a one-time cost of $244,149 in FY 2024-2025. The costs are allocated as follows:
FY2024-2025: One Time Cost: $244,149
FY2025-2026: Recurring Cost $942,529
FY2026-2027: Recurring Cost $697,695
FY2027-2028: Recurring Cost $640,813
FY2028-2029: Recurring Cost $572,360
Total: Recurring Cost $2,853,397
The estimated four-year total cost of the MOU with the La Habra Police Association/Sworn Employees consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources.
The breakdown of those costs associated with the Sworn staff is as follows:
The estimated four-year total cost of the MOU with the La Habra Police Association Civilian Employees consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources.
The breakdown of those costs association with the Civilian staff is as follows:
PROFESSIONAL EMPLOYEES’ GROUP
Cost Estimate of Negotiated Pay and Benefits
If approved, the total cost of this six-month MOU is estimated at approximately $113,013. Costs associated with salary, benefits, and other terms and conditions of employment with employees in the group are completely state grant-funded.
This estimated cost consists of both recurring costs and “one-time” costs apportioned to the Non-General Fund budget. The breakdown of these estimated costs and funding source, is as follows:
| SOURCE | FY25 | |
| Non-General Fund Grants | ||
| Recurring | $25,245 | |
| One-Time | $87,768 |
|
| Non-General Fund Grants Total | $113,013 | |
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
ED 9.1 – Balanced Fiscal Practices