REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
PREPARED BY: Marissa Sur, Director of Human Resources
Subject:
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Introduction of the Proposed Memorandum of Understanding with Management Employees’ Organization (MEO)
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Statement of Issue:
The Memorandum of Understanding (MOU) between the City of Huntington Beach and the Management Employees’ Organization (MEO) expired on December 31, 2024. In September 2024, the City and MEO representatives began the negotiations process regarding wages, benefits, and other terms and conditions of employment. A Tentative Agreement on the terms of a successor MOU has been reached and is now presented.
Financial Impact:
Pursuant to the terms of the Tentative Agreement with MEO, the total projected cost includes a one-time payment of $108,552 and a recurring cost of $2,289,853.
Recommended Action:
recommendation
Receive and consider the proposed Memorandum of Understanding between the City of Huntington Beach and the Management Employees’ Organization for the period of January 1, 2025, to December 31, 2027, pursuant to City of Huntington Beach Ordinance No. 4154.
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Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
The MEO is a recognized employee association representing approximately 130 full-time, exempt employees across all departments. The City and MEO representatives began meeting in September 2024 to negotiate the terms of a successor MOU, and a Tentative Agreement was reached in April 2025.
Salient provisions of the Tentative Agreement between the City and MEO include:
• Term of three years, expiring December 31, 2027
• Salary adjustment of three percent (3%) effective January 1 each year of the MOU
• Elimination of the Performance Bonus in exchange for an additional top step to the salary schedule for each classification
• One-time payment of $1,000
• Annual increase to medical allowance as follows:
o Effective January 1, 2025: increase by $75 per employee
o Effective January 1, 2026: increase by $65 per employee
o Effective January 1, 2027: increase by $55 per employee
• Two additional days of paid Bereavement Leave
• Incorporation of Personnel Rules 19 and 20 into the MOU
• Vehicle Allowance increased by $40 bi-weekly
A draft version of the Tentative Agreement between the City and MEO is included as Attachment 1 with changes from the current MOU in the proposed Memorandum of Understanding redlines included as Attachment 2. The Fiscal Impact Report is included as Attachment 3. Following City Council review of the Tentative Agreement and proposed MOU, a final version of the successor MOU will be presented at the June 3, 2025, City Council meeting.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Summary of Tentative Agreement
2. Proposed Memorandum of Understanding between the City and MEO
3. Fiscal Impact Report
4. PowerPoint Presentation