REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Marissa Sur, Director of Human Resources
PREPARED BY: Marissa Sur, Director of Human Resources
Subject:
title
Adopt Resolution No. 2025-44 Approving and Implementing the Memorandum of Understanding Between the Management Employees’ Organization (MEO) and the City of Huntington Beach for January 1, 2025 through December 31, 2027
body
Statement of Issue:
The Tentative Agreement regarding a successor Memorandum of Understanding (MOU) between the Management Employees’ Organization (MEO) and the City of Huntington Beach was submitted for City Council review and consideration at the May 20, 2025, regular meeting. The proposed MOU is now presented for City Council action as the final step in the meet and confer process.
Financial Impact:
Pursuant to the terms of the proposed MOU, the total projected cost of the labor agreement is estimated to be approximately $450,015 plus a one-time payment of $108,552 for Fiscal Year (FY) 2024/25; $787,604 in FY 2025/26; $683,947 in FY 2026/27; $368,287 in FY 2027/28.
Recommended Action:
recommendation
A) Adopt Resolution No. 2025-44, “A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Management Employees’ Organization (MEO) and the City for January 1, 2025, to December 31, 2027; and
B) Authorize the City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2025-44.
end
Alternative Action(s):
Do not adopt Resolution No. 2025-44 approving the successor MOU with MEO and direct staff to continue to meet and confer with MEO.
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
The total cost of the MEO MOU is approximately $2,398,404, including $108,552 in one-time money. If the Council approves adoption of the MOU, City staff will work to implement the terms as soon as practicable.
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 MOU Modifications
2. Resolution No. 2025-44
3. Proposed MOU between MEO and the City of Huntington Beach
4. Fiscal Impact Report
5. PowerPoint Presentation