City Council Agenda Report
June 16, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Carina Montes, Director of Human Resources/Risk Manager SUBJECT: RESOLUTION NO. 26-39 - MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NORWALK AND THE NORWALK ASSOCIATION OF
MANAGEMENT EMPLOYEES
Background:
City representatives have concluded the wage reopener negotiations with the Norwalk Association of Management Employees (NAME). The parties met in good faith and reached a mutually agreed-upon Memorandum of Understanding (MOU).
The attached Resolution and MOU provide for compensation changes for employees represented by NAME. The bargaining unit has ratified the proposed MOU, which will become effective upon final approval by the City Council.
The MOU includes the following key provisions:
Section 13 – Salaries
•Effective the first full pay period following MOU ratification or July 1, 2026, whichever is later, employees shall receive a 2% across-the-board cost-of-living adjustment (COLA). •Effective the first full pay period following July 1, 2027, employees shall receive a 1% across-the-board COLA.
•The parties agree to a single reopener limited exclusively to a COLA for Fiscal Year 2028- 2029. No other provision of the MOU shall be subject to reopening. •In the event there is a state or federal gas tax suspension, gas tax holiday, or similar action during the terms of this MOU, the Parties agree to a single reopener limited exclusively to salary reductions.
•The City agrees that if it reaches agreement with any other bargaining unit from the date of MOU adoption through the term end date of the MOU on an across-the-board increase
City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND NAME FOR THE TERM OF
JULY 1, 2026 THROUGH JUNE 30, 2026
Page No. 2
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to the base wage rate, the City will provide the same percentage across-the-board increase to the base wage rate to the NAME bargaining unit. Across-the-board increase to the base wage rate is not based on performance.
Section 14 – One-Time MOU Ratification Payment
•Eligible employees shall receive the following as a one-time MOU ratification payment. Effective the first full pay period following July 1, 2027, NAME bargaining unit employees who are employed by the City as of the date of MOU ratification and who remain employed as of July 1, 2027 shall receive $1,000. •The parties agree that this one-time MOU ratification payment is not special compensation or otherwise pensionable compensation for the purpose of CalPERS reporting; and the City shall not report such payment to CalPERS unless required by law or a determination by CalPERS.
Section 15 – One-Time Longevity and Good Standing Payment Eligible employees shall receive the following as a one-time longevity and good standing payment.
Years of Continuous Service Amount
10-14 years $1,000
15-19 years $1,500
Over 20 years $2,000
•To be eligible for the one-time longevity and good standing payment, employees must have not have received a suspension without pay for 60 or more days in the prior 12 months of the payment date.
•Effective the first full pay period following July 1, 2026, eligible employees who have attained the applicable years of continuous service as of July 1, 2026, based on their hire date, shall receive the corresponding payment amount set forth above. •Effective the first full pay period following July 1, 2027, eligible employees who have attained the applicable years of continuous service as of July 1, 2027, based on their hire date, shall receive the corresponding payment amount set forth above. •Effective the first full pay period following July 1, 2028, eligible employees who have attained the applicable years of continuous service as of July 1, 2028, based on their hire date, shall receive the corresponding payment amount set forth above. •Should an employee have a break in City service, any prior years of City service shall not be eligible for the purpose of counting towards years of continuous service. This is a one- time payment that eligible employees receive as described above only. The parties agree that this one-time longevity bonus payment is not special compensation or otherwise pensionable compensation for the purpose of CalPERS reporting; and the City shall not report such payment to CalPERS unless required by law or a determination by CalPERS.
City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND NAME FOR THE TERM OF
JULY 1, 2026 THROUGH JUNE 30, 2026
Page No. 3
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In addition, with the concurrence of the NAME President, the following administrative clean-up language has been incorporated into the MOU:
Section 23 – Family Sick Leave
The contractual language has been removed because family sick leave is administered in accordance with applicable federal and state law. Maintaining separate contractual language is no longer necessary.
Section 18 – Holidays
The provision denying floating holidays to employees who had not completed probation by June 30 has been removed. This language is inapplicable to the NAME bargaining unit because all employees are employed on an at-will basis and do not serve a probationary period.
As a result of these revisions and any additional negotiated changes, section numbering within the final MOU was revised accordingly.
Fiscal Impact:
Fiscal impact of the MOU is summarized below. The cost for the fiscal year ending June 30, 2027, will be included in the FY 2026/27 Budget.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
NAME MOUFY 2027FY 2028FY 2029 E stimated Additional CostYE AR 2YE AR 3 YE AR 4T OT AL COS TGeneral Fund211,320$ 369,187$ 409,263$ 989,770$ Other Funds52,829$ 90,493$ 99,893$ 243,215$ T OT AL 264,149$ 459,680$ 509,156$ 1,232,985$ City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND NAME FOR THE TERM OF
JULY 1, 2026 THROUGH JUNE 30, 2026
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Recommended Action:
Staff recommend City Council adopt Resolution No. 26-39, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY COUNCIL OF THE CITY OF NORWALK APPROVING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NORWALK AND THE
NORWALK ASSOCIATION OF MANAGEMENT EMPLOYEES FOR THE TERM OF JULY 1, 2026 THROUGH JUNE 30, 2029.
Attachments:
Resolution No. 26-39