201 S. Anaheim Blvd.
Suite 501
Anaheim, CA 92805
Tel: (714) 765-5111
Fax: (714) 765-5215
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: AUGUST 25, 2026
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: RESOLUTIONS APPROVING LETTERS OF AGREEMENT WITH AFSCME LOCAL 2002 (GENERAL MANAGEMENT,
PROFESSIONAL/TECHNICAL MANAGEMENT, AND
CONFIDENTIAL UNITS) AND PERSONNEL RULE REVISIONS
ESTABLISHING LONGEVITY INCENTIVE PAY
ATTACHMENT (Y/N): YES ITEM # 23
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council take the following actions:
1. By Resolution, approve a Letter of Agreement (“LOA”) between the City of Anaheim (“City”) and the American Federation of State, County, and Municipal Employees, Local 2002, General Management Unit (“AFSCME General Management Unit”), authorizing Longevity Incentive Pay (“Longevity Pay”) effective August 28, 2026, as an amendment to the July 1, 2023, through June 30, 2027, Memorandum of Understanding (“MOU”) between the City and the AFSCME General Management Unit.
2. By Resolution, approve a Letter of Agreement (“LOA”) between the City and the American Federation of State, County, and Municipal Employees, Local 2002, Professional/Technical Unit (“AFSCME Professional/Technical Unit”), authorizing Longevity Pay effective August 28, 2026, as an amendment to the July 1, 2023, through June 30, 2027, Memorandum of Understanding (“MOU”) between the City and the AFSCME Professional/Technical Unit.
3. By Resolution, approve a Letter of Agreement (“LOA”) between the City and the American Federation of State, County, and Municipal Employees, Local 2002, Confidential Unit (“AFSCME Confidential Unit”), authorizing Longevity Pay effective August 28, 2026, as an amendment to the July 1, 2023, through June 30, 2027, Memorandum of Understanding (“MOU”) between the City and the AFSCME Confidential Unit.
Approval of Letters of Agreement Between the City of Anaheim and AFSCME Local 2002 and Personnel Rule Revisions Establishing Longevity Incentive Pay
August 25, 2026
4. By Resolution, adopt the revised Personnel Rules and Policies (“Personnel Rules”) Covering Non-Represented Full-Time and Part-Time Employees to authorize Longevity Pay, effective August 28, 2026, for full-time classifications in appendices A, B, and C.
5. By Motion, amend the Fiscal Year 2026/2027 budget by $1,324,629 as indicated by department below.
DISCUSSION:
The City of Anaheim and the American Federation of State, County, and Municipal Employees (“AFSCME”), Local 2002, have Memoranda of Understanding (“MOUs”) with the General Management Unit, Professional/Technical Unit, and Confidential Unit for a term of July 1, 2023, through June 30, 2027. Collectively, these bargaining units represent employees serving in a broad range of management, professional, technical, administrative, and confidential classifications throughout the City.
The AFSCME General Management Unit represents approximately 178 full-time employees and 2 part-time employees in management classifications across all City departments, including employees serving in supervisory, managerial, professional, and specialized administrative roles.
The AFSCME Professional/Technical Unit represents approximately 226 full-time employees and 32 part-time employees in professional and technical classifications supporting a broad range of City programs and services, including accounting, planning, engineering, human resources, legal, and other specialized functions.
The AFSCME Confidential Unit represents approximately 59 full-time employees and 7 part-time employees in classifications providing confidential administrative and operational support throughout the City. Several classifications within the Confidential Unit have equivalent counterparts represented by the Anaheim Municipal Employees Association (“AMEA”) but are distinguished by their involvement in personnel matters or access to highly sensitive and confidential work products.
Under City Council direction, the City met and conferred with AFSCME and reached a tentative agreement on July 30, 2026, to establish a Longevity Pay benefit for eligible employees represented by the AFSCME General Management Unit, Professional/Technical Unit, and Confidential Unit.
The negotiated benefit is recommended for an effective date of August 28, 2026, and provides the following:
Three percent (3%) of base salary upon completion of ten (10) years of consecutive full-time service with the City of Anaheim.
An additional three percent (3%) of base salary upon completion of twenty (20) years of consecutive full-time service with the City of Anaheim, for a total of six percent (6%).
Approval of Letters of Agreement Between the City of Anaheim and AFSCME Local 2002 and Personnel Rule Revisions Establishing Longevity Incentive Pay
August 25, 2026
The proposed Longevity Pay benefit would have an immediate impact on the three AFSCME bargaining units. In Fiscal Year 2026/27, approximately 51 percent of employees in the AFSCME General Management Unit, 30 percent of employees in the AFSCME Professional/Technical Unit, and 34 percent of employees in the AFSCME Confidential Unit are anticipated to qualify for the proposed Longevity Pay incentive. Due to the City’s unique services and venues, these administrative staff have advanced institutional knowledge and operational experience demonstrated by their significant commitment to the City.
Longevity Pay is an important component of the City’s workforce recruitment and retention strategy. As one of the largest Cities in the immediate area, the labor market, particularly for specialized professional, technical, management, and executive positions, is highly competitive. Thus, a longevity incentive is an investment in our employees as it internally extends salary ranges to remain competitive with peer agencies.
Additionally, employees with continuous long-term service provide significant value beyond their daily responsibilities. Through years of service, employees develop specialized knowledge of City operations, policies, programs, systems, community needs, and organizational practices. Retaining experienced employees supports continuity of operations, succession planning, and effective delivery of our unique services and footprint, while reducing the disruption and high costs associated with training and turnover.
Following the negotiated agreements with AFSCME, staff also recommends corresponding amendments to the Personnel Rules to provide a comparable Longevity Pay benefit to eligible non-represented management classifications in Appendices A – Executive Management, B – Non-Represented Non-Sworn Management, and C – Non- Represented Police Management. Classifications in Appendix D – Non-Represented Fire Management already receive this benefit.
Extending the longevity benefit to eligible non-represented classifications promotes internal equity and provides a consistent approach to recognizing continued service and experience across the City’s workforce. The benefit also supports retention of employees in key leadership and specialized positions, where continuity, institutional knowledge, and organizational expertise are particularly valuable.
Overall, the proposed Longevity Pay benefit represents a strategic investment in the City’s dynamic workforce. It recognizes employee dedication, encourages continued service, supports the retention of skilled and experienced employees, preserves institutional knowledge, and strengthens the City's overall labor market position. The benefit also provides a consistent framework for recognizing long-term service among eligible represented and non-represented employees while supporting the City’s ability to maintain a knowledgeable, experienced, and effective workforce.
IMPACT ON BUDGET:
The estimated cost of the recommendation is $1,324,629 in Fiscal Year 2026/27. Approval of this item will increase the Fiscal Year 2026/27 budget by department as follows:
Approval of Letters of Agreement Between the City of Anaheim and AFSCME Local 2002 and Personnel Rule Revisions Establishing Longevity Incentive Pay
August 25, 2026
Department Amendment
City Administration 47,961
City Attorney 76,284
City Clerk 14,404
Finance 68,120
Human Resources 63,301
Community Services 123,847
Police 48,776
Fire & Rescue 191,377
Economic Development 4,749
Housing & Community Development 95,368 Public Works 157,213
Planning & Building 54,288
Convention, Sports & Entertainment 65,433 Public Utilities 313,508
Total 1,324,629
Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachments:
1. Resolution – AFSCME General Management Unit
2. Resolution – AFSCME Professional/Technical Unit
3. Resolution – AFSCME Confidential Unit
4. Resolution – Personnel Rules
5. Letter of Agreement – General Management Unit
6. Letter of Agreement – Professional/Technical Unit
7. Letter of Agreement – Confidential Unit
8. Personnel Rules– FINAL
9. Personnel Rules - REDLINE