SIDE LETTER OF UNDERSTANDING
BETWEEN THE CITY OF HAWAIIAN GARDENS AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, LOCAL 3624 – RANK AND FILE UNIT
This Side Letter memorializes the mutual understanding between the parties as they move forward in good faith with the execution of the 2024-2028 AFSCME Rank & File Memorandum of Understanding (MOU).
Whereas, In 2024, the City and AFSCME engaged in negotiations that resulted in a tentative agreement for a successor MOU; and
Whereas, the City Council approved that MOU on December 11, 2024 and directed the City Manager to continue to work with AFSCME on any required side letter to clarify or explain the intent of the parties in the approved MOU; and
Whereas, a dispute arose between the parties regarding the order of implementation, specifically whether the compensation study would take precedence over the cost-of-living adjustment (COLA); and in order to pursue labor peace and resolve said dispute, the parties agree that the COLA shall be implemented first, followed thereafter by the compensation study.
Whereas, the parties engaged in further negotiations and recently completed the negotiation process to clarify and finalize the terms of a successor agreement.
Now therefore, the parties hereby agree with the following:
1. MODIFICATION OF THREE ARTICLES
The 2024-2028 AFSCME Rank & File MOU will be signed with the additional corrected language of the following three (3) agreed-upon sections, which are incorporated into and made part of the MOU upon agreement in order to clarify the intent of the parties:
• Page 5: Section II. A and B: Salaries and Compensation shall read:
A. Beginning July 1, 2024, employees covered by this MOU shall receive adjustments to their salaries and wages based upon the implementation schedule as established by the Class and Compensation Study. The 5-step salary range for exempt employees shall be increased automatically in accordance with California law on minimum wage for exempt employees; current exempt employees shall be placed on the new salary range step that is closest to, but not under, their current salary, and advanced to the next available step at the employee'sjob anniversary.
B. Across-the-board — 2024 Effective July 1, 2024, all employees covered by this MOU shall receive from the City a three percent (3%) across-the—board salary increase. Further, following approval of this MOU by the City Council and AFSCME, all Rank & File employees shall receive a one-time only incentive payment of 3% retroactive to July 1, 2023 – June 30, 2024.
Docusign Envelope ID: 5B457601-8822-8045-82F2-FDBFC5BD16C5 Attachment C
• Page 10: Section IV. Benefits (B) shall be amended per request by AFSCME after City Council approval of the MOU on 12/11/2024, to incorporate the already approved Side Letter regarding the calculation of average hours adopted in February 2022. The section shall read as follows:
Effective July 1, 2017, the City shall offer qualifying part-time employees who work on average 30 hours per week or more or who are hired to work on average 30 hours per week or more with up to an $500 monthly contribution for the purchase of Employee, Employee plus one, or Family health plan to be established as soon as practical. This section does not apply to any part-time employees hired before July 1, 2017. Part time employees hired before July 1, 2017, that qualify for CaIPERS health insurance under the plan, Subsection C. of this Section applies. For the purpose of calculating the average hours worked, the City will utilize payroll reports to capture hours worked throughout the fiscal year, as well as identifying eligible part-time employees for the purpose of qualifying for CalPERS, vacation hours, and medical subsidy of $500 contribution towards health benefits. The calculations will utilize hours reported on each timesheet by pay period for the exact dates July 1 – June 30. Additionally, any existing benefits impacted by this calculation process shall be adjusted accordingly.
• Page 12: Section IV. Benefits (K) shall be added, as Tentatively Agreed (TA'd) by the parties on November 19, 2025 in order to reflect the intent of the originally agreed upon language. That section shall read as follows:
The City shall provide a monthly non-taxable insurance stipend in the amount of $50, available to cover the cost of city sponsored dental and/or vision plans to Crossing Guards working an average of 14 hours per week. If the Crossing Guard were to become eligible for health insurance, they would qualify for cafeteria money instead of the foregoing monthly insurance stipend. This benefit shall be implemented in the first pay period following signing of the present agreement. For the first twelve months of this benefit the employee may use an additional $50 per month towards the cost of city sponsored dental and/or vision plans.
2. IMPLEMENTATION OF 2024 FAMILY JOBS
The City agrees to implement the family jobs list that was mutually agreed and negotiated in the 2024-2028 AFSCME MOU in accordance with the terms set forth therein. This obligation is acknowledged and reaffirmed by the City as part of this agreement.
3. RETROACTIVE PAY OWED TO MEMBERS
The City further acknowledges its obligation to pay all retroactive compensation owed to unit members pursuant to the July 1, 2024 retroactive date, related to the implementation of the Classification and Compensation study, and agrees to process said retroactive payments within 45 days after this agreement is signed by both parties. In order to pursue labor peace and resolve the dispute the parties acknowledged that the Classification and Compensation study salary adjustments shall be implemented after the three percent (3%) across-the–board salary increase made effective on July 1, 2024.
Docusign Envelope ID: 5B457601-8822-8045-82F2-FDBFC5BD16C5
4. GOOD FAITH EXECUTION
By signing this agreement with the three sections noted above, both parties affirm that they are proceeding in good faith and that this Side Letter serves as a clear record of the mutual commitments and outstanding obligations identified herein.
This Side Letter is entered into for the record and shall be attached to and construed as part of the 2024- 2028 AFSCME Rank & File MOU, effective immediately upon execution.
SO AGREED:
CITY OF HAWAIIAN GARDENS
________________________
Ernesto Marquez, City Manager
AFCME LOCAL 3624
Approved as to Form:
_________________________
Norma Tabares, City Attorney
__________________________________________________
Karla Salazar, Business Representative, AFSCME DC36
__________________________________________________
Eric Leon, Interim President, AFSCME 3624
__________________________________________________
Bashir Matin, Executive Board & Bargaining Team Member, AFSCME 3624
__________________________________________________
Ramie Lepe, Bargaining Team Member, AFSCME 3624
Docusign Envelope ID: 5B457601-8822-8045-82F2-FDBFC5BD16C5 6/24/2026
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