Item 252/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Jany Lee
Dept:
City Manager Dept: Human Resources
Date: 7/8/2025
Subject: Adoption of a Resolution approving the Memorandum of Understanding between the Orange County Employee’s Association, Garden Grove Chapter and the City of Garden Grove. (Action Item)
OBJECTIVE
To obtain City Council approval for a new two (2) year Memorandum of Understanding (hereinafter “MOU”) with the Orange County Employee’s Association, Garden Grove Chapter (OCEA) (hereinafter “Union”).
BACKGROUND
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, 2027. The current MOU expired on June 30, 2025.
DISCUSSION
The City and Union agreed to a new MOU with the term of July 1, 2025, to June 30, 2027.
The City and the Union agreed to the following:
A three percent (3%) base salary increase, effective July 2025; Establishment of a step “J” (5% step) and elimination of step “A” from the salary schedule, effective July 2026;
Elimination of step “B” from the salary schedule, effective in June 2027; Medical benefit contribution increases in January 2026 and January 2027; Vacation Accrual Tier restructuring in January 2026;
Five percent (5%) training pay for those assigned to the Front Desk Community Service Officer, Public Safety Dispatcher, and Police Records Specialist; and Addition of the Traffic unit to the Senior Community Service Officer assignment.
The final language of this MOU is still being worked out and the document may not be finalized until after the July 8, 2025 City Council meeting. In order to not delay implementation of the provisions in this MOU, it is requested that the City Council give the City Manager the Item 252/2025
authorization to agree to any final language revisions agreed to by the parties. There would not be any financial changes, only language changes.
FINANCIAL IMPACT
The estimated cost increase associated with the proposed MOU provisions is approximately $853,000 for Fiscal Year 2025-26, compared to current salaries and benefits. For Fiscal Year 2026-27, the estimated increase is an additional $858,000, based on the proposed Fiscal Year 2025-26 personnel costs. Over the proposed two -year MOU term, the cumulative cost increase is estimated at $2.6 million compared to current compensation levels for members of OCEA.
These estimates do not include normal annual adjustments such as merit increases, changes in eligibility for specialty or longevity pay, promotions, or pension cost variations.
Future budget appropriations will be addressed as needed through the regular budget process.
RECOMMENDATION
It is recommended that the City Council:
Adopt the attached Resolution approving the Memorandum of Understanding between the Orange County Employee’s Association, Garden Grove Chapter and the City of Garden Grove; and
Authorize the City Manager to finalize any last-minute language revisions that may occur between the parties.
ATTACHMENT(S)
1. Association Resolution 2025-27