Agenda Item
City Council
Item #: 3.17. 8/12/2025 File #: 25-0414
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director
1. SUBJECT
Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’ Association. Resolution No. 11629.
2. SUMMARY
Resolution No. 11629 establishes a Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’ Association for the period of July 1, 2025 through June 30, 2026.
3. RECOMMENDED ACTION
Adopt Resolution No. 11629. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11511 and approving the Memorandum of Understanding between the City of Orange and the Orange Municipal Employees’Association, concerning wages, hours, and other conditions of employment effective July 1, 2025, through and including June 30, 2026.
4. FISCAL IMPACT
The total cost for this Memorandum of Understanding is approximately $259,800 and will be funded through the General Fund.
5. STRATEGIC PLAN GOALS
Goal 4: Employee Retention and Recruitment
6. DISCUSSION AND BACKGROUND
In March 2025, the City began the collective bargaining process with the Orange Municipal Employees’ Association (OMEA). The current contract between the parties expired on June 30, 2025.
After seven meetings, on July 23, 2025, the parties reached agreement on the terms and conditions of a twelve-month labor contract that includes the following:
TERM July 1, 2025 - June 30, 2026.
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.
HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.
VACATION a. Increase vacation accrual rate between
year 6 through year 15 of employee
service. b. Probationary employees accrue
vacation but may not use vacation until six
months of active service is complete.
HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:
Increase by $75.00 to $2,170.00
EDUCATIONAL ASSISTANCE AND
PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.
UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.
WORK SHOE ALLOWANCE a. Increase work shoe allowance from up to $450.00 to up to $550.00 for eligible
employees. b. Incorporate classification of
Senior Code Compliance Officer to be
eligible for benefit.
NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.
PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.
ASSOCIATION RELEASE TIME
TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.
LANGUAGE CLEANUP Parties have agreed to incorporate
language changes to further clarify existing
MOU practices or provisions. Included in
language cleanup is a retitle of
classification from Planning Aide to
Planning Technician.
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Item #: 3.17. 8/12/2025 File #: 25-0414
TERM July 1, 2025 - June 30, 2026.
COMPENSATION 2.0% Across-the-Board salary increase
effective June 29, 2025.
HOLIDAYS Amend holiday schedule to include Martin
Luther King Jr. as a nine-hour observed
holiday.
VACATION a. Increase vacation accrual rate between
year 6 through year 15 of employee
service. b. Probationary employees accrue
vacation but may not use vacation until six
months of active service is complete.
HEALTH INSURANCE Effective January 1, 2026, increase
monthly contribution to health benefits as
follows: o 2-Party coverage: Increase by
$45.00 to $1,715.00 o Family coverage:
Increase by $75.00 to $2,170.00
EDUCATIONAL ASSISTANCE AND
PROFESSIONAL DEVELOPMENT
Amend article to allow utilization of
Educational Assistance or Professional
Development benefit amount
interchangeably. Amount remains at
$1,500.00 per fiscal year.
UNIFORM ALLOWANCE Add classifications of Traffic Signal Technician I/II, Senior Traffic Signal
Technician, and Traffic Management
Center Technician to be eligible for benefit.
WORK SHOE ALLOWANCE a. Increase work shoe allowance from up to $450.00 to up to $550.00 for eligible
employees. b. Incorporate classification of
Senior Code Compliance Officer to be
eligible for benefit.
NO FURLOUGH OR LAYOFF During the term of this agreement, the City shall not implement any furloughs or
layoffs.
PARITY AGREEMENT Should other non-safety bargaining groups receive salary across-the-board base
salary increases or medical increases, the
City shall provide said adjustments to
OMEA as applicable.
ASSOCIATION RELEASE TIME
TRACKING
All Association release time shall be fully
documented on employee timesheets in a
manner specified by the City.
LANGUAGE CLEANUP Parties have agreed to incorporate
language changes to further clarify existing
MOU practices or provisions. Included in
language cleanup is a retitle of
classification from Planning Aide to
Planning Technician.
The Orange Municipal Employees’Association took these terms to a vote of their membership and ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this City of Orange Printed on 8/7/2025Page 2 of 3
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Item #: 3.17. 8/12/2025 File #: 25-0414
ratified the Tentative Agreement on July 25, 2025. City Council approval is required to finalize this agreement in the form of a Memorandum of Understanding.
7. ATTACHMENT
· Resolution No. 11629
City of Orange Printed on 8/7/2025Page 3 of 3
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