Agenda Item
City Council
Item #: 3.20. 6/27/2023 File #: 23-0409
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 Firefighters, Inc. Local 2384 of the International Association of Fire Fighters AFL-CIO effective July 1, 2023, through June 30, 2026. Resolution No. 11477.
2. SUMMARY
Resolution No. 11477 establishes a Letter of Understanding between the City of Orange and Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters AFL-CIO effective July 1, 2023, through June 30, 2026.
3. RECOMMENDED ACTION
Adopt Resolution No. 11477. 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 Firefighters, Inc. Local 2384 of the International Association of Fire Fighters AFL-CIO effective July 1, 2023, through June 30, 2026.
4. FISCAL IMPACT
The total three-year expenditure for this Letter of Understanding is estimated at $5,529,953 and will be funded through:
General Fund (100) $5,297,695
Emergency Transport Program Fund (125) 232,258
Total: $5,529,953
The total estimated annual cost is:
FY 2023-24 $ 956,649
FY 2024-25 2,057,777
FY 2025-26 2,515,527
Total: $5,529,953
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
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Item #: 3.20. 6/27/2023 File #: 23-0409
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 March 24, 2023 the City began the collective bargaining process with the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters AFL-CIO. The current contract between both parties expires on June 30, 2023.
After eight meetings, on June 8, 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 sworn and non-sworn members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn and non-sworn members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay · Create monthly longevity premium effective June 30, 2024 for sworn members for all full-time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $100.00 $200.00 $300.00 · Create monthly longevity premium effective June 30, 2024 for non-sworn members for all full- time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $50.00 $100.00 $150.00 · The Fire Chief and Human Resources Director shall have final approval of service eligibility. Employees in this Union shall be responsible for notifying the Fire Department of their eligibility for longevity pay at each tier. The effective date is then applied to the following pay period, implying no retroactivity.
Health Benefits · Modify the City’s monthly contribution as follows: Effective Dates Single 2-Party Family Current $1,201.00 $1,795.00 $1,995.00 January 1, 2024 $1,226.00 $1,845.00 $2,070.00 January 1, 2025 $1,251.00 $1,895.00 $2,145.00 January 1, 2026 $1,276.00 $1,945.00 $2,220.00 · Modify Article VI, Section 1(D) to incorporate the medical waiver amount shall be frozen in the amount of $1,095.00 per month for employees hired before March 29, 2020.
Continue to maintain that every and all employees hired on or after March 29, 2020, who elect to waive medical insurance shall receive $400.00 per month.
Education
Reimbursement
and Incentives
Modify provision to increase reimbursement amount for educational assistance and professional development for employees from $1,250.00 to $1,500.00 per fiscal year.
Medical Trust Incorporate new Article that includes language supporting the City withholding $50.00 pre-tax payroll deduction per pay period, per member, for Union’s Post-Employment Health Plan. The City will not incur cost or liability other than providing support for employee payroll deduction and sending the amount to a third party.
Leaves of
Absence/ Sick
Leave Usage
Modify provision for members to receive the following payout for accrued unused sick leave upon service retirement: Suppression Employees Sick Leave Hours Payout Percentage Hours 0-720 15% Hours 720.01-1,080 25% Hours 1,080.01+ 60% 40-Hour
Employees Sick Leave Hours Payout Percentage Hours 0-600 15% Hours 600.01-900 25% Hours 900.01+ 60%
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.
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Item #: 3.20. 6/27/2023 File #: 23-0409
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 sworn and non-sworn members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn and non-sworn members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay · Create monthly longevity premium effective June 30, 2024 for sworn members for all full-time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $100.00 $200.00 $300.00 · Create monthly longevity premium effective June 30, 2024 for non-sworn members for all full- time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $50.00 $100.00 $150.00 · The Fire Chief and Human Resources Director shall have final approval of service eligibility. Employees in this Union shall be responsible for notifying the Fire Department of their eligibility for longevity pay at each tier. The effective date is then applied to the following pay period, implying no retroactivity.
Health Benefits · Modify the City’s monthly contribution as follows: Effective Dates Single 2-Party Family Current $1,201.00 $1,795.00 $1,995.00 January 1, 2024 $1,226.00 $1,845.00 $2,070.00 January 1, 2025 $1,251.00 $1,895.00 $2,145.00 January 1, 2026 $1,276.00 $1,945.00 $2,220.00 · Modify Article VI, Section 1(D) to incorporate the medical waiver amount shall be frozen in the amount of $1,095.00 per month for employees hired before March 29, 2020.
Continue to maintain that every and all employees hired on or after March 29, 2020, who elect to waive medical insurance shall receive $400.00 per month.
Education
Reimbursement
and Incentives
Modify provision to increase reimbursement amount for educational assistance and professional development for employees from $1,250.00 to $1,500.00 per fiscal year.
Medical Trust Incorporate new Article that includes language supporting the City withholding $50.00 pre-tax payroll deduction per pay period, per member, for Union’s Post-Employment Health Plan. The City will not incur cost or liability other than providing support for employee payroll deduction and sending the amount to a third party.
Leaves of
Absence/ Sick
Leave Usage
Modify provision for members to receive the following payout for accrued unused sick leave upon service retirement: Suppression Employees Sick Leave Hours Payout Percentage Hours 0-720 15% Hours 720.01-1,080 25% Hours 1,080.01+ 60% 40-Hour
Employees Sick Leave Hours Payout Percentage Hours 0-600 15% Hours 600.01-900 25% Hours 900.01+ 60%
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.
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Item #: 3.20. 6/27/2023 File #: 23-0409
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 sworn and non-sworn members. · Effective the pay period beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn and non-sworn members. Monthly Salary Tables are attached as Appendix “A”.
Longevity Pay · Create monthly longevity premium effective June 30, 2024 for sworn members for all full-time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $100.00 $200.00 $300.00 · Create monthly longevity premium effective June 30, 2024 for non-sworn members for all full- time years of service to the City of Orange as follows: 15 Years of Service 20 Years of Service 25 Years of Service $50.00 $100.00 $150.00 · The Fire Chief and Human Resources Director shall have final approval of service eligibility. Employees in this Union shall be responsible for notifying the Fire Department of their eligibility for longevity pay at each tier. The effective date is then applied to the following pay period, implying no retroactivity.
Health Benefits · Modify the City’s monthly contribution as follows: Effective Dates Single 2-Party Family Current $1,201.00 $1,795.00 $1,995.00 January 1, 2024 $1,226.00 $1,845.00 $2,070.00 January 1, 2025 $1,251.00 $1,895.00 $2,145.00 January 1, 2026 $1,276.00 $1,945.00 $2,220.00 · Modify Article VI, Section 1(D) to incorporate the medical waiver amount shall be frozen in the amount of $1,095.00 per month for employees hired before March 29, 2020.
Continue to maintain that every and all employees hired on or after March 29, 2020, who elect to waive medical insurance shall receive $400.00 per month.
Education
Reimbursement
and Incentives
Modify provision to increase reimbursement amount for educational assistance and professional development for employees from $1,250.00 to $1,500.00 per fiscal year.
Medical Trust Incorporate new Article that includes language supporting the City withholding $50.00 pre-tax payroll deduction per pay period, per member, for Union’s Post-Employment Health Plan. The City will not incur cost or liability other than providing support for employee payroll deduction and sending the amount to a third party.
Leaves of
Absence/ Sick
Leave Usage
Modify provision for members to receive the following payout for accrued unused sick leave upon service retirement: Suppression Employees Sick Leave Hours Payout Percentage Hours 0-720 15% Hours 720.01-1,080 25% Hours 1,080.01+ 60% 40-Hour
Employees Sick Leave Hours Payout Percentage Hours 0-600 15% Hours 600.01-900 25% Hours 900.01+ 60%
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 Firefighters, Inc. Local 2384 of the International Association of Fire Fighters AFL- CIO took this to a vote of their membership and ratified the tentative agreement on June 15, 2023.
City Council approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENTS
· Resolution No. 11477
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