Item 317/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Jany Lee
Dept:
City Manager Dept: Human Resources
Date: 9/9/2025
Subject: Adoption of a Resolution approving the Memorandum of Understanding between the City of Garden Grove and the Orange County Employee’s Association, Garden Grove Employees League. (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 Employees League (hereinafter “Union”).
BACKGROUND/DISCUSSION
At the direction of the City Council, the City met and conferred with the Union and agreed to an MOU that will expire on June 30, 2027. The current MOU expired on June 30, 2025.
The City and the Union agreed to a new MOU with the term of July 1, 2025 to June 30, 2027.
The City and Union agreed to the following terms:
A three percent (3%) base salary increase effective August 2, 2025; Elimination of step “A” from the salary schedule, effective September 27, 2025; Establishment of step “J” (5% step) and elimination of step “B” from the salary schedule, effective in July 2026;
Elimination of step “C” 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;
Include steam roller used by the Streets Section to the Heavy Equipment Pay; and Item 317/2025
Increase of Tool Allowance to $1 ,000 and $500 for the Equipment Mechanic and Equipment Service Worker, respectively.
The final language of this MOU is still being worked out and the document may not be finalized until after the September 9, 2025 City Council meeting. In order to not delay implementation of the provisions in the MOU, it is requested that the City Council give the City Manager 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 related to base salary and step adjustments is approximately $402,000 for Fiscal Year 2025 -26, compared to current sal aries and benefits. For Fiscal Year 2026 -27, the estimated increase is an additional $354,000. Over the proposed two-year MOU term, the cumulative cost increase is projected at approximately $1.2 million when compared to current compensation levels for members of the OCEA League.
These estimates exclude merit increases, changes in eligibility for specialty or longevity pay, promotions, or pension cost variations. In addition, medical benefit contribution and certain special compensation, such as Heavy Equipment Pay and Tool Allowance, are not included in the above cost estimate, as such information was not readily available at the time the costing was prepared.
The cost increase attributable to base salary and step adjustments are largely incorporated in the adopted Fiscal Year 2025-26 budget.
RECOMMENDATION
It is recommended that the City Council:
Adopt the attached Resolution that approves the Memorandum of Understanding between the Orange County Employee ’s Association, Garden Grove Employees League and the City of Garden Grove; and Authorize the City Manager to finalize any last minute language changes that may occur between the parties.
ATTACHMENT(S)
1. Resolution - League MOU 2025-27