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. 26-38 – MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF NORWALK AND THE NORWALK CITY
EMPLOYEES ASSOCIATION (GENERAL AND HOURLY UNITS) FOR
THE TERM OF JULY 1, 2026 THROUGH JUNE 30, 2029
Background:
City representatives have concluded negotiations with the Norwalk City Employees' Association (NCEA). The parties met in good faith and reached a mutually agreed-upon Memorandum of Understanding (MOU).
The attached resolution and MOU provide for compensation and benefit changes for employees represented by the NCEA. The bargaining unit have ratified the proposed MOU, which will become effective upon final approval by the City Council.
The MOU includes the following significant provisions:
Article 2 – Term
•The term of the MOU shall commence on July 1, 2026, and expire on June 30, 2029.
Article 16 – Holidays (General Unit)
•Increases the number of floating holidays from one (1) to two (2) per fiscal year. •The revised language provides: "All General Unit employees will be entitled to two (2) floating holidays at the beginning of each fiscal year." Article 18 – Holidays (Department of Transportation)
City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND THE NCEA FOR THE TERM
OF JULY 1, 2026 THROUGH JUNE 30, 2029
Page No. 2
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•Includes housekeeping language.
•Adds Juneteenth as a recognized holiday for 3,000-hour Hourly Unit employees assigned to Transit Operations and Equipment Maintenance Operations. •Eligible employees who are required to work on the holiday may receive double-time compensation for the actual hours worked.
Article 25 – Access to Leave for Time-Sensitive Government-Required Matters •Employees may request up to ninety (90) calendar days of leave to attend time-sensitive government-required legal proceedings or appointments that are beyond the employee's control and cannot reasonably be scheduled outside of working hours. •Adds clarifying language regarding approval and administration of such leave.
Article 38 – Mechanic Tool Allowance
•Increases the annual mechanic tool allowance from $300 to $500.
Article 39 – Higher Classification and Out-of-Classification Pay •Clarifies existing language by expressly addressing out-of-classification pay assignments.
Article 41 – 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 term of this MOU, the Parties agree to a single reopener limited exclusively to salary reductions.
•The City agrees that if it reaches an 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 to the base wage rate, the City will provide the same percentage across-the- board increase to the base wage rate to the NCEA bargaining unit. Across-the-board increase to the base wage rate is not based on performance.
Article 42 – One-Time MOU Ratification Payment
City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND THE NCEA FOR THE TERM
OF JULY 1, 2026 THROUGH JUNE 30, 2029
Page No. 3
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•Eligible employees shall receive the following as a one-time MOU ratification payment. Effective the first full pay period following July 1, 2027, general unit full-time 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.
Article 43 – One-Time Longevity and Good Standing Payment Eligible employees shall receive the following as a one-time longevity and good standing pay.
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 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.
Article 59 – Safety Footwear Stipend
•Increases the annual safety footwear stipend for eligible part-time employees from $100 to $150. As a result, all eligible employees, whether full-time or part-time, shall receive a $150 annual safety footwear stipend.
•This stipend is non-PERSable and shall not be reported to CalPERS as compensation.
City Council June 16, 2026
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NORWALK AND THE NCEA FOR THE TERM
OF JULY 1, 2026 THROUGH JUNE 30, 2029
Page No. 4
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•Employees in Mechanic classifications and the Equipment Service Helper classification who are required to wear specialized safety footwear with composite toe (non-metal), electrostatic discharge (ESD) protection, chemical-resistant, and slip-resistant features shall not receive the annual stipend. Instead, they shall be eligible to receive an annual voucher of up to $300, redeemable through a City-approved vendor.
Appendix A
Reflects additions and deletions of classifications.
Fiscal Impact:
The estimated cost of implementation of the MOU is detailed in the table below and will be included in the Fiscal Year 2027 budget. Costs for two subsequent years represent estimated annual personnel expenditures increases resulting from the MOU.
N C EA M O U FY2027 FY2028 FY2029 N C EA M O U
Estia m a te d A d d itio n a l C o stYEA R 1 YEA R 2 YEA R 3 TO TA L C O ST G e n e ra l Fu n d 664,878$ 1,970,253$ 2,480,542$ 5,115,673$ O th e r Fu n d s 376,598$ 1,135,244$ 1,394,237$ 2,906,079$ TO TA L 1,041,475$ 3,105,497$ 3,874,779$ 8,021,751$ Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommend City Council adopt Resolution No. 26-38, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF NORWALK APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NORWALK AND THE NORWALK CITY
EMPLOYEES ASSOCIATION (GENERAL AND HOURLY UNITS) FOR THE TERM OF JULY 1, 2026 THROUGH JUNE 30, 2029.
Attachments:
Resolution No. 26-38