That the City Council:
A. Consider and approve a Memorandum of Understanding (MOU) between the City of La Habra and the La Habra Municipal Employees' Association 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 5853 PERTAINING TO A COMPENSATION PLAN FOR THE LA HABRA MUNICIPAL EMPLOYEES ASSOCIATION (FIELD/MAINTENANCE 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 Municipal Employees Association 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 Salary Adjustments to the classifications in the group as follows: 2% for all unit employees (excluding the positions in the Water Services and Sewer Technician Series). 2.5% for Sewer Services Technician classifications. 4% for Water Service Technician classifications. Effective on the first full pay period in January 2022 the City will provide Salary Adjustments to the classifications in the group as follows: 1% for all unit employees
Boot Allowance	Effective July 3, 2021 the City will increase the boot allowance by $25 to a maximum of $275 per year.
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.
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.
Opt-out (medical insurance)	Effective December 1, 2021 the City will increase the opt-out amount by $10/mo. to a maximum of $200/mo.
Hazard Pay (Homeless Encampments)	Employees of the streets and refuse division who are identified and pre-assigned by their supervisor to work to clear homeless encampments will receive a one-time payment of $500 in the first pay period in December 2021. Employees of the Parks Division will receive a one-time payment of $250 in the first pay period in December.  This pay will be in effect from July 1, 2021 through June 30, 2023.  After the term of this MOU, this provision will be removed unless renegotiated.

 

Year 2 (FY2022-2023)
Salary Adjustment	Effective on the first full pay period in July 2022 the City will provide Salary Adjustments to the classifications as follows: 2% for all unit employees (excluding the positions in the Water Services and Sewer Technician Series). 2.5% for Sewer Services Technician classifications. 4% for Water Service Technician classifications
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.
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.
Opt-out (medical insurance)	Effective December 1, 2022 the City will increase the opt-out amount by $10/mo. to a maximum of $210/mo.
Hazard Pay Homeless Encampment	Employees of the Streets and Refuse division who are identified and pre-assigned by their supervisor to work at clearing homeless encampments will receive a check for the amount of $500 payable in the first pay period in December 2022.  Employees of the Parks division will receive $250 in the first pay period in December 2022.  This pay will be in effect from July 1, 2021 through June 30, 2023.  After the term of this MOU, this provision will be removed unless renegotiated.

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 $487,977 and allocated as follows:
 

FY2021-2022:	$242,071
FY2022-2023:	$245,906
Total:	$487,977

The estimated two-year total cost of the MOU with the La Habra Municipal Employees Association 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	$47,608	$39,971	$87,579
	One-Time	$52,348	$53,400	$105,748
General Fund Total		$99,956	$93,371	$193,327
Non-General Fund
	Recurring	$75,046	$78,304	$153,350
	One-Time	$67,069	$74,231	$141,300
Non-General Fund Total		$142,115	$152,535	$294,650
All Funds Total		$242,071	$245,906	$487,977

ED 9.1 – Balanced Fiscal Practices