RESOLUTION NO. 11663
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE ESTABLISHING A
LETTER OF UNDERSTANDING BETWEEN THE
CITY OF ORANGE AND THE INTERNATIONAL
BROTHERHOOD OF ELECTRICAL WORKERS
IBEW LOCAL 47 WATER UNION EFFECTIVE
JULY 1, 2025 THROUGH AND INCLUDING JUNE
30, 2027
WHEREAS, the City of Orange, hereinafter referred to as "City", and the International Brotherhood of Electrical Workers IBEW (IBEW) Local 47 Water bargaining unit, hereinafter referred to as “ Union”, collectively the “Parties” , have met and conferred in accordance with requirements of the Meyers-Milias-Brown Act; and
WHEREAS, the Parties have reached agreement on wages, hours, and other terms and conditions of employment effective July 1, 2025 through and including June 30, 2027 and the City Council desires to enter into a Letter of Understanding (LOU) setting forth specified terms and conditions of employment for the Union’s covered employees for the period of J uly 1 , 202 5 through and including June 30, 2027; and
WHEREAS, the Parties agree to incorporate the provisions of this LOU into a new Memorandum of Understanding (MOU) at a future date in 2027, and until then all specified terms and conditions of employment in Resolution No. 11513 remain operative; and
WHEREAS, all salary ranges for the classifications covered herein must be authorized by the City Council and published by the City in order for the salary range to be considered pension- reportable, pursuant to California Public Employees’ Retirement System law; and
WHEREAS, the City Council has consulted with the City Manager and Human Resources Director concerning the proposed employment terms contained in the attached LOU.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached LOU is approved and incorporated by reference as Exhibit A as though fully set forth herein and furthermore authorizes staff to adjust the departmental salary and benefit accounts in the FY26 and FY27 budget to reflect the cost of the contract provisions.
ADOPTED this day of , 2026
Daniel R. Slater, Mayor, City of Orange
2 ATTEST:
Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:
Nathalie Adourian, City Attorney, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 202 6 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange
1 EXHIBIT A
A LETTER OF UNDERSTANDING
ENTERED INTO BY AND BETWEEN THE CITY OF ORANGE AND
THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS IBEW LOCAL 47 WATER UNION EFFECTIVE JULY 1, 2025 THROUGH AND INCLUDING JUNE 30, 2027
This Letter of Understanding (LOU) is entered into by and between the City of Orange (the City) and the International Brotherhood of Electrical Workers IBEW Local 47 Water (Union), collectively the “Parties”. The LOU contains agreed upon terms and conditions of employment of the Union, including salary and benefit adjustments, for the period of Ju ly 1, 2025, through and including June 30, 2027.
The Parties have agreed to the following terms:
Term of Agreement
July 1, 2025 through and including June 30, 2027
Salary Increases
An across-the-board increase of two percent (2.0%) with retroactivity to June 29, 2025, and a three percent (3.0%) cost of living adjustment effective June 28, 2026 for all covered classifications as incorporated in Appendix A.
Medical
Amend Article XVI Section 1(A) by providing a $100.00 per month increase towards the family tier amount (from $2,095.00 to $2,195.00) effective May 31, 2026.
Holiday
Amend Article XI Section 1 to add the following: Nine (9) hours of floating holiday.
Amend Article XI to add a new Section 2:
SECTION 2. FLOATING HOLIDAY. Nine (9) hours of floating holiday will accrue on January 1st of each year. Employees hired after January 1st of each year shall receive a prorated portion of the nine (9) hours. All floating holiday hours must be utilized by December 31st of the year in which they were accrued. Unused floating holiday hours shall be forfeited.
Floating holiday hours shall be taken at the convenience of the City with approval of the Department Head. Probationary employees accrue, and are eligible to use, floating holiday and holiday hours according to the guidelines established in this Article, and/or, with approval of the Human Resources Director.
2 Upon separation from the City, any remaining portion of an employee’s floating holiday hours shall be cashed out.
Probationary Employee Vacation Use
Amend Article XII Section 2 to allow probationary employees to use vacation accruals after completion of six (6) months of benefited active City service.
Educational Assistance/Professional Development
Amend Article XVII Section 3 to be “Educational Assistance/Professional Development .” Educational Assistance and Professional Development payments to an employee shall not exceed $600.00 in any one (1) fiscal year and the employee must still be employed by the City when the course is completed to qualify for reimbursement. Purchases must be approved in advance by the Department Head and the Human Resources Director prior to registration. Employees with a future separation date on file are ineligible for this benefit.
No Furlough or No Layoffs
During the term of this agreement, the City shall not impose furloughs, reductions in work hours, or layoffs on any IBEW Water -represented employees. This provision shall sunset on June 30, 2027 and will no longer be applicable after this date.
Vacation Conversion
Modify vacation conversion provision pursuant to the Internal Revenue Code 451 (Constructive Receipt) which will change the mechanism to cash out vacation hours as follows:
An employee may convert up to 50% of their current annual vacation accrual into pay in lieu of time off with pay on an annual basis. An employee requesting such conversion must meet the eligibility requirements as set forth in Section 2 and may convert twice in a fiscal year, within the cap provisions stated above. Any exception to this provision requires the approval of the Human Resources Director.
On or before December 15, 2026, and every December 15th thereafter, a qualified employee who elects to cash out accrued vacation for the following year shall submit written request to the Human Resources Department stating their irrevocable election(s).
The City shall administer the cash out twice annually, starting in June 2027 and every June and December thereafter. The City shall make the cash outs in the second pay check in June and December. Such cash outs shall be paid at the employee’s net salary hourly rate of pay.
On-site Training
Allow 60 -90 minutes of on -site training related to the IBEW Code of Excellence, with City management staff.
Union Release Time and Tracking
Up to four (4) Union employees may be granted release time for Union business not to exceed one hundred fifty (150) hours per fiscal year collectively. All Union release time must be fully documented on employee timesheets.
3 Language Clean Up and Proposals
The City will be proposing and presenting a redlined MOU that updates provisions within the MOU to provide greater clarity on existing practices and regulatory compliance, ensuring adherence with current laws.
Memorandum of Understanding
The Parties agree to incorporate the provisions contained in this LOU into a successor Memorandum of Understanding (MOU) in 2027 and further agree that all terms within the existing MOU remain operative.
The Parties agree that except as specifically modified by this Amendment that this Amendment shall not modify any previously negotiated and agreed upon Memorandum of Understanding and that all such terms and conditions contained therein shall remain in full for ce and effect ; notwithstanding the expiration of the term of any applicable MOU, IBEW-WATER shall be entitled to the salary increases set forth in such LOU as provided in Appendix A.
Ratification and Execution
The Parties acknowledge that this L OU shall not be in full force and effect until ratified by the Association and adopted by the City Council of the City of Orange. Subject to the foregoing, this LOU is hereby executed by the authorized representative of the City and IBEW-WATER and entered into on this _____ day of ___________, 2026.
CITY OF ORANGE INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS IBEW LOCAL 47
WATER
Dated:______________________________ Dated:__________________________________
By: By:
Monica Espinoza, Human Resources Director Colin Lavin, IBEW Local 47, Business Manager
By: By:
Trang Nguyen, Finance Director Dick Reed, IBEW Local 47, Asst. Business Manager
By: By:
Cody Kleen, Assistant HR Director Mike Clark, IBEW Local 47, Business Representative
By: By:
Erin Hodges, Senior HR Analyst Al Contreras, Water Plant Operator II
4 By:__________________________________ By:________________________________________ Rafael Cadena, Human Resources Technician Shawn Donnelly, Water Maintenance Leadworker
By:________________________________________
Hector Medina, Water Maintenance Leadworker
By:_____________________________________________________________________ Joshua Borden, Water Maintenance Leadworker
APPROVED AS TO FORM:
Nathalie Adourian, City Attorney, City of Orange
5 APPENDIX A
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
LOCAL 47 WATER
EFFECTIVE JUNE 29, 2025
2.0% Across-the-Board Salary Increase
CLASSIFICATION A/1 B/2 C/3 D/4 E/5 F/6
SKILLED MAINT WORKER - WATER $61,080 $64,200 $67,476 $70,908 $74,532 $78,324 SR WATER METER SERVICE WORKER $62,004 $65,160 $68,484 $71,976 $75,648 $79,512
WATER MAINTENANCE
LEADWORKER $67,488 $70,932 $74,544 $78,348 $82,344 $86,544 WATER MAINTENANCE WORKER I $50,292 $52,848 $55,548 $58,380 $61,344 $64,488 WATER MAINTENANCE WORKER II $55,548 $58,392 $61,368 $64,500 $67,800 $71,244 WATER METER SERVICE WORKER I $52,332 $55,008 $57,804 $60,756 $63,852 $67,116 WATER METER SERVICE WORKER II $57,816 $60,768 $63,864 $67,128 $70,548 $74,148 WATER PLANT OPERATOR I $60,780 $63,876 $67,140 $70,560 $74,160 $77,940 WATER PLANT OPERATOR II $67,152 $70,584 $74,172 $77,964 $81,936 $86,112 WATER YARD STOREKEEPER $58,404 $61,380 $64,512 $67,800 $71,256 $74,892
EFFECTIVE JUNE 28, 2026
3.0% Cost of Living Adjustment
CLASSIFICATION A/1 B/2 C/3 D/4 E/5 F/6
SKILLED MAINT WORKER - WATER $64,171 $67,449 $70,891 $74,496 $78,304 $82,287 SR WATER METER SERVICE WORKER $65,141 $68,457 $71,950 $75,618 $79,476 $83,535
WATER MAINTENANCE
LEADWORKER $70,903 $74,522 $78,316 $82,312 $86,511 $90,923 WATER MAINTENANCE WORKER I $52,837 $55,522 $58,359 $61,334 $64,448 $67,751 WATER MAINTENANCE WORKER II $58,359 $61,347 $64,473 $67,764 $71,231 $74,849 WATER METER SERVICE WORKER I $54,980 $57,791 $60,729 $63,830 $67,083 $70,512 WATER METER SERVICE WORKER II $60,741 $63,842 $67,095 $70,525 $74,118 $77,900 WATER PLANT OPERATOR I $63,856 $67,109 $70,537 $74,130 $77,912 $81,884 WATER PLANT OPERATOR II $70,550 $74,156 $77,925 $81,909 $86,082 $90,469 WATER YARD STOREKEEPER $61,359 $64,486 $67,776 $71,231 $74,861 $78,682