Staff Report — Orange City Council, April 28, 2026

Agenda Item
Orange City Council
Item #: 3.25. 4/28/2026 File #: 26-0159
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Monica Espinoza, Human Resources Director

1. SUBJECT
Letters of Understanding between the City of Orange and the International Brotherhood of Electrical Workers Local 47 representing the Maintenance & Crafts and Water Division employees

2. SUMMARY
Resolution No. 11663 establishes a Letter of Understanding between the City of Orange and the International Brotherhood of Electrical Workers Local 47 - Water Division employees effective July 1, 2025 through and including June 30, 2027
Resolution No. 11664 establishes a Letter of Understanding between the City of Orange and the International Brotherhood of Electrical Workers Local 47- Maintenance & Crafts employees effective July 1, 2025 through and including June 30, 2027.

3. RECOMMENDED ACTION

1. Adopt 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.

2. Adopt Resolution No. 11664. 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 Maintenance and Crafts Union effective July 1, 2025 through and including June 30, 2027.

4. FISCAL IMPACT
Maintenance & Crafts: The total cost for FY26 is $99,800 of which $68,900 is General Fund. The total cost for FY27 is $142,800 of which $98,500 is General Fund.

Water: The total cost for FY26 is $46,700. The total cost for FY27 is $74,200.

These adjustments are included in the FY27 budget.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Goal 4: Improve Employee Retention and Recruitment
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Item #: 3.25. 4/28/2026 File #: 26-0159

6. DISCUSSION AND BACKGROUND
In March 2025, the City began the collective bargaining process with the International Brotherhood of Electrical Workers (IBEW) Local 47, hereinafter collectively referred to as “Union”,which represents Maintenance & Crafts and Water Division employees within the Public Works and Community Services Departments. The contract between the parties expired on June 30, 2025.

The parties continued negotiating for a successor Memorandum of Understanding (MOU), exchanging six (6) proposals through September 5, 2025. On October 23, 2025, IBEW Local 47 declared impasse and requested the appointment of a mediator. On November 10, 2025, a mediator confirmed a mediation session scheduled for December 15, 2025; however, IBEW Local 47 canceled the meeting due to a scheduling conflict. Mediation was subsequently rescheduled for January 27-28, 2026. Over the course of these two (2) days, the parties explored mediator proposals but were unable to reach agreement.

On February 2, 2026, IBEW Local 47 submitted two (2) requests for fact-finding to the Public Employment Relations Board (PERB) pursuant to Section 3505.4 of the Meyers-Milias-Brown Act and PERB Regulation 32802. PERB reviewed the requests and ultimately denied them due to the Union’sfailure to file within the required 45-day window. As a result, the City was not obligated to participate in the fact-finding process.

On February 13, 2026, the City received formal notification from IBEW Local 47’slegal counsel of the Union’s intent to strike effective March 1, 2026. This resulted in a two-week strike during which employees were without pay and may have incurred out-of-pocket medical expenses, depending on their selected health plan(s).

As the City continues to face significant fiscal constraints, it is unable to accommodate the salary inequity adjustments as requested by IBEW Local 47. Instead, the City offered the same cost-of- living adjustments to IBEW Local 47 that had been provided to all non-safety miscellaneous labor groups in 2025 and all labor groups in 2026: a 2.0% increase effective June 29, 2025, and a 3.0% increase effective June 28, 2026.

At its March 10, 2026, meeting, the City Council approved retroactive pay effective June 29, 2025, consistent with the compensation package previously presented to the Union as the City’sfifth (5th) proposal. This action was taken in good faith to help resolve the labor dispute and encourage employees to return to work. IBEW Local 47 presented the City’s final communication to its membership, and the agreement was ratified on Friday, March 13, 2026, officially ending the strike.

While the City maintained the same compensation adjustment, other elements of the two-year agreement include:

IBEW Maintenance & Crafts IBEW Water
Term July 1, 2025 - June 30, 2027 July 1, 2025 - June 30, 2027 Salary Effective June 29, 2025 2.0%
across-the-board; Effective
June 28, 2026 3.0% cost of
living adjustment. Annual
Salary Tables are attached as
Appendix A in the LOU.

Effective June 29, 2025 2.0%
cost of living adjustment;
Effective June 28, 2026 3.0%
cost of living adjustment.

Annual Salary Tables are
attached as Appendix A in the
LOU.

Medical Increase $100.00 per month
for family tier from $2,095 to
$2,195 per month effective
May 31, 2026.

Increase $100.00 per month
for family tier from $2,095 to
$2,195 per month effective
May 31, 2026.

Floating Holiday Reinstate 9-hour floating
holiday effective January 1,
2026.

Reinstate 9-hour floating
holiday effective January 1,
2026.

Uniforms Add “Facilities” to list of
division employees eligible for
this existing benefit.

Not applicable
Probationary Employee
Vacation Use
Probationary employees
accrue vacation but may not
use vacation until six (6)
months of benefited active
City service is complete.

Probationary employees
accrue vacation but may not
use vacation until six (6)
months of benefited active
City service is complete.

Educational
Assistance/Professional
Development
Allow for existing $750.00
benefit to be interchangeably
used. Employees must still be
employed by City when
course is complete to qualify
for reimbursement.

Employees with a future
separation date on file are
ineligible for this benefit.

Allow for existing $600.00
benefit to be interchangeably
used. Employees must still be
employed by City when
course is complete to qualify
for reimbursement.

Employees with a future
separation date on file are
ineligible for this benefit.

No Furlough or Layoff During the term of this
Agreement, the City shall not
impose furloughs, reductions
in hours, or layoffs. This
provision shall sunset on
June 30, 2027.

During the term of this
Agreement, the City shall not
impose furloughs, reductions
in hours, or layoffs. This
provision shall sunset on June
30, 2027.

Vacation Conversion An employee may convert up
to fifty percent (50%) of their
current annual vacation
accrual into cash in lieu of
time off with pay on an annual
basis. An employee
requesting such a conversion
may convert twice in a fiscal
year, however, the total
amount converted per fiscal
year shall not exceed fifty
percent (50%) of the
employee’s annual accrual.

Employees serving their initial
hire probationary period shall
not be eligible for vacation
conversion. 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 paycheck in
June and December. Such
cash outs shall be paid at the
employee’s net rate of pay.

An employee may convert up
to fifty percent (50%) of their
current annual vacation
accrual into cash in lieu of
time off with pay on an annual
basis. An employee
requesting such a conversion
may convert twice in a fiscal
year, however, the total
amount converted per fiscal
year shall not exceed fifty
percent (50%) of the
employee’s annual accrual.

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 paycheck in June and
December. Such cash outs
shall be paid at the
employee’s net 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.

Allow 60-90 minutes of on-site
training related to the IBEW
Code of Excellence, with City
management staff.

Union Release Time
Tracking
Up to four (4) Union
employees may be granted
release time for Union
business not to exceed 150
hours per fiscal year
collectively. All Union release
time must be fully
documented on employee
timesheets.

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.

Language Clean Up The City will be presenting a
future redline MOU that
updates provisions within
MOU to provide greater clarity
on existing practices and
regulatory compliance,
ensuring adherence with
current laws. All Association
references to be changed to
International Brotherhood of
Electrical Workers (IBEW)
Local 47 or Union.

The City will be presenting a
future redline MOU that
updates provisions within
MOU to provide greater clarity
on existing practices and
regulatory compliance,
ensuring adherence with
current laws.

City of Orange Printed on 4/23/2026Page 2 of 5
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Item #: 3.25. 4/28/2026 File #: 26-0159
IBEW Maintenance & Crafts IBEW Water
Term July 1, 2025 - June 30, 2027 July 1, 2025 - June 30, 2027 Salary Effective June 29, 2025 2.0%
across-the-board; Effective
June 28, 2026 3.0% cost of
living adjustment. Annual
Salary Tables are attached as
Appendix A in the LOU.