Agenda Item
City Council
Item #: 3.19. 6/27/2023 File #: 23-0370
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. SUBJECT
A Letter of Understanding between the City of Orange and the Orange City Fire Management Association effective July 1, 2023, through June 30, 2026. Resolution No. 11470.
2. SUMMARY
Resolution No. 11470 establishes a Letter of Understanding between the City of Orange and the Orange City Fire Management Association effective July 1, 2023, through June 30, 2026.
3. RECOMMENDED ACTION
Adopt Resolution No. 11470. A Resolution of the City Council of the City of Orange establishing a Letter of Understanding between the City of Orange and the Orange City Fire Management Association effective July 1, 2023, through June 30, 2026.
4. FISCAL IMPACT
The total three-year expenditure for this Letter of Understanding is estimated at $535,840 and will be funded through General Fund (100).
The total estimated annual cost is:
FY 2023-24 $117,831
FY 2024-25 191,757
FY 2025-26 226,252
Total: $535,840
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
e: Attract, retain and develop quality employees dedicated to public service.
6. DISCUSSION AND BACKGROUND
On April 3, 2024, the City began the collective bargaining process with the Orange City Fire City of Orange Printed on 6/21/2023Page 1 of 4
powered by Legistar™
Item #: 3.19. 6/27/2023 File #: 23-0370
Management Association. The current contract between the parties expires on June 30, 2023.
After seven meetings, on June 12, 2023, the parties reached agreement on the terms and conditions of a three-year labor contract that includes the following:
Provision Description
Term of
Agreement
July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be granted for members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay Modify provision to eliminate 15 years of service tier, and amend monthly pay for 20 and 25 years of service tiers as follows: Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $200.00 $400.00 $600.00 June 18, 2023 -- $550.00 $750.00 Health
Benefits
· Modify the City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1, 2026 $2,105.00 · Modify cash in lieu medical waiver of $500.00 per month, effective June 18, 2023, to remain fixed indefinitely. In the case of future promotional hires from Fire Local 2384 to Fire Management Association, the waiver amount will be $500.00 per month irrespective of the waiver amount that Fire Local 2384 employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in the Fire Local 2384 will not be able to retain it and will still instead default to the $500.00 per month waiver amount under Fire Management Association. Existing Fire Management Association employees who waive medical are capped at the $1,955.00 per month amount.
Educational
Incentive
Program
Modify provision to maintain monthly incentive for Associate degree, and amend Bachelor’s and Master’s degree premiums as follows:
Education Level Current Monthly Incentive Proposed Monthly Incentive AA/AS $200.00 $200.00 BA/BS $400.00 $550.00 MA/MS $600.00 $750.00
California
Incident
Command
Certification
System
(CICCS)
Modify provision to increase certification premium from $100.00 to $200.00 per month.
Leaves of
Absence/ Sick
Leave Usage
Service
Retirement
Modify provision to allow for eligible sick leave hours to be placed into employee’s Retirement Health Savings Plan as follows: · A minimum of twenty (20) years of continuous service to the City shall receive pay for sixty percent (60%) of all accrued and unused sick leave hours; and · A minimum of twenty-five (25) years of continuous service to the City shall receive pay for seventy percent (70%) of all accrued and unused sick leave hours. · Employees hired and/or promoted into the Fire Management Association after June 18, 2023 and retire from City service, enter CalPERS as a Retired Annuitant, with a minimum of five (5) years of continuous service to the City, shall receive pay for fifty percent (50%) of all accrued and unused sick leave hours.
Residency
Requirement
All personnel hired by the Orange City Fire Department after June 25, 2023, following approval and adoption of this Agreement, shall be a permanent and full-time resident of the State of California and reside no further than one hundred (100) road miles from Fire Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Fire Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in service) are exempt.
Limited
Reopener
The City can reopen Article III (Salaries) and/or Article X, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this Article. In order for the City to invoke this limited reopener: 1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than ten percent (10%), and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited purpose to the Association during the following dates: December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025.
Upon receipt of such timely request, the parties agree to meet and confer in good faith on the article(s) requested for reopening. Any changes to the MOU arising out of this limited reopener shall be by mutual written agreement. It is the expressed intent of the parties that the language pertaining to this limited reopener is included in the current MOU only and expires June 30, 2026. Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-
Employee
Labor
Relations
Resolution
Parties have met and discussed Employer-Employee Labor Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language
Cleanup
Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
Status of the
MOU
Except as specifically provided and amended herein, the terms and conditions of the MOU shall govern the provisions of wages, salaries, and other benefits for all covered employees. This LOU shall not be interpreted to extend and/or limit any other rights, benefits, or compensation of either party except as specifically provided herein, and both this LOU and the New MOU shall expire on June 30, 2026.
City of Orange Printed on 6/21/2023Page 2 of 4
powered by Legistar™
Item #: 3.19. 6/27/2023 File #: 23-0370
Provision Description
Term of
Agreement
July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be granted for members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay Modify provision to eliminate 15 years of service tier, and amend monthly pay for 20 and 25 years of service tiers as follows: Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $200.00 $400.00 $600.00 June 18, 2023 -- $550.00 $750.00 Health
Benefits
· Modify the City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1, 2026 $2,105.00 · Modify cash in lieu medical waiver of $500.00 per month, effective June 18, 2023, to remain fixed indefinitely. In the case of future promotional hires from Fire Local 2384 to Fire Management Association, the waiver amount will be $500.00 per month irrespective of the waiver amount that Fire Local 2384 employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in the Fire Local 2384 will not be able to retain it and will still instead default to the $500.00 per month waiver amount under Fire Management Association. Existing Fire Management Association employees who waive medical are capped at the $1,955.00 per month amount.
Educational
Incentive
Program
Modify provision to maintain monthly incentive for Associate degree, and amend Bachelor’s and Master’s degree premiums as follows:
Education Level Current Monthly Incentive Proposed Monthly Incentive AA/AS $200.00 $200.00 BA/BS $400.00 $550.00 MA/MS $600.00 $750.00
California
Incident
Command
Certification
System
(CICCS)
Modify provision to increase certification premium from $100.00 to $200.00 per month.
Leaves of
Absence/ Sick
Leave Usage
Service
Retirement
Modify provision to allow for eligible sick leave hours to be placed into employee’s Retirement Health Savings Plan as follows: · A minimum of twenty (20) years of continuous service to the City shall receive pay for sixty percent (60%) of all accrued and unused sick leave hours; and · A minimum of twenty-five (25) years of continuous service to the City shall receive pay for seventy percent (70%) of all accrued and unused sick leave hours. · Employees hired and/or promoted into the Fire Management Association after June 18, 2023 and retire from City service, enter CalPERS as a Retired Annuitant, with a minimum of five (5) years of continuous service to the City, shall receive pay for fifty percent (50%) of all accrued and unused sick leave hours.
Residency
Requirement
All personnel hired by the Orange City Fire Department after June 25, 2023, following approval and adoption of this Agreement, shall be a permanent and full-time resident of the State of California and reside no further than one hundred (100) road miles from Fire Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Fire Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in service) are exempt.
Limited
Reopener
The City can reopen Article III (Salaries) and/or Article X, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this Article. In order for the City to invoke this limited reopener: 1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than ten percent (10%), and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited purpose to the Association during the following dates: December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025.
Upon receipt of such timely request, the parties agree to meet and confer in good faith on the article(s) requested for reopening. Any changes to the MOU arising out of this limited reopener shall be by mutual written agreement. It is the expressed intent of the parties that the language pertaining to this limited reopener is included in the current MOU only and expires June 30, 2026. Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-
Employee
Labor
Relations
Resolution
Parties have met and discussed Employer-Employee Labor Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language
Cleanup
Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
Status of the
MOU
Except as specifically provided and amended herein, the terms and conditions of the MOU shall govern the provisions of wages, salaries, and other benefits for all covered employees. This LOU shall not be interpreted to extend and/or limit any other rights, benefits, or compensation of either party except as specifically provided herein, and both this LOU and the New MOU shall expire on June 30, 2026.
City of Orange Printed on 6/21/2023Page 3 of 4
powered by Legistar™
Item #: 3.19. 6/27/2023 File #: 23-0370
Provision Description
Term of
Agreement
July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be granted for members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay Modify provision to eliminate 15 years of service tier, and amend monthly pay for 20 and 25 years of service tiers as follows: Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $200.00 $400.00 $600.00 June 18, 2023 -- $550.00 $750.00 Health
Benefits
· Modify the City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1, 2026 $2,105.00 · Modify cash in lieu medical waiver of $500.00 per month, effective June 18, 2023, to remain fixed indefinitely. In the case of future promotional hires from Fire Local 2384 to Fire Management Association, the waiver amount will be $500.00 per month irrespective of the waiver amount that Fire Local 2384 employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in the Fire Local 2384 will not be able to retain it and will still instead default to the $500.00 per month waiver amount under Fire Management Association. Existing Fire Management Association employees who waive medical are capped at the $1,955.00 per month amount.
Educational
Incentive
Program
Modify provision to maintain monthly incentive for Associate degree, and amend Bachelor’s and Master’s degree premiums as follows:
Education Level Current Monthly Incentive Proposed Monthly Incentive AA/AS $200.00 $200.00 BA/BS $400.00 $550.00 MA/MS $600.00 $750.00
California
Incident
Command
Certification
System
(CICCS)
Modify provision to increase certification premium from $100.00 to $200.00 per month.
Leaves of
Absence/ Sick
Leave Usage
Service
Retirement
Modify provision to allow for eligible sick leave hours to be placed into employee’s Retirement Health Savings Plan as follows: · A minimum of twenty (20) years of continuous service to the City shall receive pay for sixty percent (60%) of all accrued and unused sick leave hours; and · A minimum of twenty-five (25) years of continuous service to the City shall receive pay for seventy percent (70%) of all accrued and unused sick leave hours. · Employees hired and/or promoted into the Fire Management Association after June 18, 2023 and retire from City service, enter CalPERS as a Retired Annuitant, with a minimum of five (5) years of continuous service to the City, shall receive pay for fifty percent (50%) of all accrued and unused sick leave hours.
Residency
Requirement
All personnel hired by the Orange City Fire Department after June 25, 2023, following approval and adoption of this Agreement, shall be a permanent and full-time resident of the State of California and reside no further than one hundred (100) road miles from Fire Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Fire Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in service) are exempt.
Limited
Reopener
The City can reopen Article III (Salaries) and/or Article X, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this Article. In order for the City to invoke this limited reopener: 1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than ten percent (10%), and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited purpose to the Association during the following dates: December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025.
Upon receipt of such timely request, the parties agree to meet and confer in good faith on the article(s) requested for reopening. Any changes to the MOU arising out of this limited reopener shall be by mutual written agreement. It is the expressed intent of the parties that the language pertaining to this limited reopener is included in the current MOU only and expires June 30, 2026. Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-
Employee
Labor
Relations
Resolution
Parties have met and discussed Employer-Employee Labor Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language
Cleanup
Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
Status of the
MOU
Except as specifically provided and amended herein, the terms and conditions of the MOU shall govern the provisions of wages, salaries, and other benefits for all covered employees. This LOU shall not be interpreted to extend and/or limit any other rights, benefits, or compensation of either party except as specifically provided herein, and both this LOU and the New MOU shall expire on June 30, 2026.
The Orange City Fire Management Association took this to a vote of their membership and ratified the tentative agreement on June 12, 2023. City Council approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENTS
· Resolution No. 11470
City of Orange Printed on 6/21/2023Page 4 of 4
powered by Legistar™