CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #C1
DATE: July 8, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Norma Tabares, City Attorney
Joseph Sanchez, Labor Attorney
RECOMMENDATION:
RECOMMENDATION TO ADOPT RESOLUTION NO. 020-2026, A RESOLUTION OF
THE CITY OF HAWAIIAN GARDENS CITY COUNCIL, RATIFYING A MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY OF HAWAIIAN GARDENS AND THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES AFLCIO, LOCAL 3624, COUNCIL 36, RANK AND FILE UNIT AND APPROVING A SIDE LETTER OF UNDERSTANDING TO THE MOU.
SUMMARY
In 2024, the City of Hawaiian Gardens (“City”) and the American Federation of State, County, and Municipal Employees AFL-CIO, Local 3624, Council 36 (“AFSCME”) engaged in negotiations that resulted in a tentative agreement for a successor Memorandum of Understanding (“MOU”) between the AFSCME Rank and File Unit and the City. The City Council approved that MOU on December 11, 2024 and directed the City Manager to continue to work with AFSCME on certain items. Concerns were raised by the parties regarding portions of the MOU and whether or not they accurately reflected the intent of the tentative agreement. The MOU was not fully executed pending resolution of the outstanding items. The parties then engaged in further negotiations regarding portions of the MOU still at issue and recently completed the negotiation process and reached final agreement on a successor MOU as well as agreeing to a side-letter of understanding outlining any modifications made to the MOU adopted on December 11, 2024.
The term of the most recent MOU, as extended by a side letter agreement, expired on December 31, 2023. T. Once approved, ratified and signed by authorized representatives Agenda Item #C1
July 8, 2026
of all parties, the proposed successor MOU and Side Letter of Understanding shall be effective as of July 1, 2024.
Separately, the City has adopted a new salary schedule based on the class and compensation study undertaken by the City.
Labor-management relations of most California public agencies are governed by the provisions of the Meyers-Milias Brown-Act (“MMBA”). Public employers covered under the MMBA have a duty to meet and confer with recognized employee organizations on matters within the scope of representation. Traditionally, matters concerning wages (pay and benefits), hours, and working conditions have been considered mandatory subjects of bargaining within the scope of representation.
The attached proposed MOU (Attachment B) and Side Letter of Understanding (Attachment C) have been negotiated, ratified, and signed by AFSCME. The proposed MOU and Side Letter of Understanding is presented for your consideration.
Below is a list of the key elements of the MOU and Side Letter of Understanding that were clarified in the last round of negotiations:
1. The MOU and Side Letter clarifies that effective July 1, 2024, employees received from the City a three percent (3%) across-the—board salary increase followed by implementation of the Classification and Compensation Study salary adjustments.
2. Confirms that 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 at least 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 MOU and Side Letter of Understanding by authorized representatives of all parties. For the first twelve months from implementation of this benefit the employee may use an additional $50 per month towards the cost of City sponsored dental and/or vision plans.
3. Additional language has been modified based upon the tentative agreements reached by the Parties.
4. As to all other elements of this MOU not negotiated by the Parties, there shall be a continuance of all other terms and conditions set forth in the MOU that expired June 30, 2023.
5. The term of the contract is the period commencing July1, 2024 and ending June 30, 2028.
Agenda Item #C1
July 8, 2026
All terms of this successor MOU and Side Letter are effective retroactively as of July 1, 2024, except as otherwise specified in the terms of the MOU or Side Letter. Approval of the successor MOU and Side Letter authorizes and confirms the City’s implementation of those terms.
FISCAL IMPACT
Some of the more pertinent increases are noted above. The full fiscal impact is fully stated in the Attachments.
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENTS
A. Resolution No. 020-2026 Approving the Memorandum of Understanding Between AFSCME and the City of Hawaiian Gardens
B. Memorandum of Understanding Between AFSCME and City of Hawaiian Gardens C. Side Letter of Understanding Between AFSCME and City of Hawaiian Gardens