03.62 Fire Fighters Letter of Understanding 7-1-2019 ,.��-�
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"-�����" June 11, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager '
FROM: Will Kolbow, Administrative Services Director��,�;,.,i��¢��
REVIEW: City Manager Finance ��
1. SUBJECT
Resolution No. 11166—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 Fighters,
Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO effective July
1, 2019, to June 30, 2022.
2. SUMMARY
Resolution No. 11166 establishes a Letter of Understanding between the City of Orange
and the Orange City Fire Fighters, Inc. Local 2384 of the International Association of Fire
Fighters, AFL-CIO effective July 1, 2019, to June 30, 2022.
3. RECOMMENDED ACTION
Approve Resolution No. 11166.
4. FISCAL IMPACT
Costing summary:
Fiscal Year 2019-20
Cost Descri tion General Fund All Other Funds
Cost of Base Sala Increase $691,700 $72,000
Cost of Ne otiated Benefits 203,200 21,200
Total Annual Cost $894,900 $93,200
Fiscal Year 2020-21
Cost Descri tion General Fund All Other Funds
Cost of Base Sala Increase $1,231,200 $128,200
Cost of Ne otiated Benefits 293,400 30,500
Total Annual Cost $1,524,600 $158,700
ITEM3. La � 06/11/2019
Fiscal Year 2021-22
Cost Descri tion General Fund All Other Funds
Cost of Base Sala Increase $1,787,000 $186,000
Cost of Ne otiated Benefits 383,500 40,000
Total Annual Cost $2,170,500 $226,000
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b: Provide staffing and resources to deliver services that ensure public safety.
Goal 2: Be a fiscally healthy community.
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
In March 2019, the City began the collective bargaining process with the Orange City Fire
Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-CIO. The
current contract between the parties expires on June 30, 2019.
After six meetings, on May 16, 2019, the parties reached agreement on the terms and
conditions of a three-year labor contract that includes the following:
' • • � - • •
Term of Agreement July 1, 2019 through June 30, 2022.
Salary Across the board base salary increase of 4% effective June
23, 2019, the first pay period containing July 1st.
Effective the pay periods beginning June 21, 2020 and June
20, 2021, a 1-3% base salary increase shall be granted
based on the median salary for the classification of
Firefighter among the cities of Anaheim, Brea, Costa Mesa,
Fountain Valley, Fullerton, Garden Grove, Huntington
Beach, Laguna Beach, Newport Beach, Orange, and
Orange County Fire Authority.
Monthly Salary Tables are attached as Appendix "A".
EMT Rescue Bonus Increase the Rescue EMT assignment bonus from $200 to
3% of Top Step Firefighter.
Training Company Increase the Training Company assignment bonus from
Bonus $100 to 2.5% of Top Step Firefighter. For members currently
assigned to the Training Company (including cross-staff
personnel).
Urban Search and Create a bonus for members currently assigned to the
Rescue Assignment USAR company (including cross-staff personnel) in the
Bonus (USAR) amount of 4% of Top Step Firefighter.
ITEM 2 06/11/2019
Health Insurance Increase the City's monthly contributions as follows:
. .
Current $1,101 $1,595 $1,595 $995
January 1, 2020 $1,126 $1,645 $1,695 $1,020
January 1, 2021 $1,151 $1,695 $1,795 $1,045
January 1, 2022 $1,176 $1,745 $1,895 $1,070
Educational Incentive Increase the educational incentive amounts as follows:
. . . . . . • . .
60 Units $145 No Change
AA/AS $160 $190
90 Units $210 No Change
BA/BS $265 $375
MA/MS $330 $550
PERS Level 4 The City will provide the PERS 1959 Survivor Benefit at the
Survivor Benefit for Third Level Option for miscellaneous members. The City
Miscellaneous shall increase the 1959 Survivor Benefit to the Fourth Level
Members Option (California Government Code Section 21574) for
miscellaneous members; miscellaneous members shall pay
their $2.00 monthly contribution through payroll deduction.
The City shall pay the employer portion subject to the
following limit: in the event the employer portion exceeds
$6.00 monthly, miscellaneous members agree to pay any
portion of the employer portion that exceeds $6.00 monthly.
This benefit shall be contingent upon all affected bargaining
units contractually agreeing to this provision.
Union Representation Increase union hours from 264 to 312 per fiscal year.
Limited Reopener Either party can reopen the following economic articles in
the MOU for negotiations during the 2020/2021 fiscal year
through a limited reopener subject to the requirements set
forth in this article: Articles III and X (Section 10.3). In order
for either party to invoke this limited reopener: 1) there must
be a fiscal year-over-year (from 18/19 to 19/20)
increase/decrease in sales tax revenue received by the city
greater than 10%, and 2) either party must provide written
notice of its re uest and intent to reo en MOU ne otiations
ITEM 3 06/11/2019
for this limited purpose in writing to either party during the
following dates: December 15, 2020 through January 15,
2021.
Language Changes Implement mutually agreed language clean-up to conform
MOU to current practices or agreements.
Orange City Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters,
AFL-CIO took this to a vote of their membership and ratified the proposal. City Council
approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENT
• Resolution No. 11166
ITEM 4 06/11/2019
R�SQL�JTIQN NO. 11166
A RESOLUTIQN OF TFI� CITY COLJNCIL OF THE CITY OF
OI�ANGE �STABLISHING A LETTER OF UNAERSTANDING
BETWEEN THT CITY QF qRANG�ANI�T�I�ORANGE CITY FIRE
FIGHTERS, INC. LO�AL 2384 pF THE INTERNATIQNAL
ASSOCIATIQN OF FIR� FIGHTERS, AFL-CIO EFFECTI�E ,TULY
1,2019 THROUGH JUN� 3Q,2022
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
City Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL-
CIO hereafter referred to as the "�Jnion" have met and conferred in accordance with the
requirements of the Meyers-Milias-Bro�?vn Act; and
WHEREAS,the City and the Union have reached agreement on wages, salaries, and
other terms and conditions of employment effective July 1,2019 through June 30, 2022; and
WHER�AS, the City Council of the City of Orange has consulted with the
Administrative Services Director and Assistant Human Resources Director concerning the
proposed employment terms contained in the attached�,etter of Understanding;
NOW, THEREFpRE, B� IT RESOLVED by the City Council of the City of
Orange that the attached Letter of Understanding is approved and incorporated by reference
as Exhibit"A."
ADOPTED this 11 t" day of June 2019.
Mark A. Murphy, lklayor of the City of Orange
ATTEST:
Pamela Coleman, City Clerlc of the City of Orange
1
I,PAMELA COLEMAN, City Clerk of the City of Orange, California,do hereby certify that the
foregoing Resolution�vas dul� and regularly adopted by the City Council of the City of Orange
at a regular meeting thereof held on the l lt�' day of June 2019 by the following vote:
AYES: COUNCIL MElkIBERS:
NOES: COUNCIL 1�r1EMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCZL MEMBERS:
Pamela Coleman,
City Clerk of the City of Orange
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E�HIBIT "A"
A LETTER OF UNp�RSTANDING
BETWEEN THE CITY OF ORANGE AND THE
ORANGE CITY FIRE FIGHTERS,INC. LQCAL 2384 OF THE INTERNATIONAL
ASSOCIATION OF FIRE �IGHTERS,AFL-CIO
EFFECTIVE JULY 1, 2019 THI�OUGH JUNE 30, 2022
This Letter of Understanding ("LOU") is entered into by and between the City of Orange and
the Orange City Fire Fighters, Inc. Loca12384 of the International Association of Fire Fighters,
AFL-CIO.
Recitals
A. The City of Orange (hereafter, "City") and the Orange City Fire Fighters, Inc. Local
23 84 of the International Association of Fire Fighters,AFL-CIO ("Union")hereby enter into this
LOU effective July 1, 2019.
B. The parties agree to incorporate the language addressed in this LOU into a new .
Memorandum of Understanding ("New MOU"), once both parties have the opportunity to
review and concur on any and all language changes that will become part of the New MOU. A
New MOU document will be presented to the City Council at a future meeting for its approval.
C. All references to the "MOU" in this LOU shall be to that Memorandum of
Understanding by and between the City and the Union adopted by City Council Resolution No.
11079. Except as to those provisions which expressly expired and/or those provisions expressly
addressed by this LOU, the terms and conditions of the MOU remain operative until the New
MOU is approved and adopted.
Agreement
1. Term and Effective Date
The term of this LpU shall be from July 1, 2019 to June 30, 2022 and will become effective
upon ratification by the Union membership and approval of the City Council.
2. Salary(Attached as Apnendix"A")
Implement an across the board base salary increase of 4% effective June 23, 2019.
For base salary increases effective June 21, 2020 and June 20, 2021, the classification of
Firefighter shall be surveyed among the cities of Anaheim, Brea, Costa Mesa, Fountain Valley,
Fullerton, Garden Grove, I�untington Beach, Laguna $each, Newport Beach, Orange, and
Orange County Fire Authority. For those cities that no longer have the classification of
Firefighter, they shall not be considered for the purposes of surveying. The City shall obtain
base salary data from fully adopted and executed Memoranda of Understanding of the
aforementioned cities as of May 1, 2020 (for the June 21, 2020 increase) and May 1, 2021 (for
3
the June 20, 2021 increase). An across-the-board increase shall be granted in the difference
between the then-in-effect maximum base salary for Firefighter of the City and median
maximum base salary for Firefighter of the aforementioned cities of what vuould be in effect as
of July 1, 2020 and July 1, 2021, respectively, rounded up to the nearest half-percent (for
example, if the City is below the median by 2.2%, an increase of 2.5% will be granted). The
calculated increases shall apply to all classifications within this 1klemorandum of Understanding.
However, in no event shall the increases be lower than 1%, nor higher than 3%. The City shall
notify the Union of the result of the survey and calculation no later than May 8, 2020 (for the
June 21, 2020 increase) and May 7, 2021 (for the June 20, 2021 increase). The Union will then
have ten calendar days after notification to dispute the City's findings and calculation. If the
Union wishes to dispute the findings, the parties agree to meet as promptly as possible in good
faith to come to an agreement on the increase. If the dispute goes beyond July 1, 2020 or July
1, 2021, respectively, there shall be.no retroactivity upon resolution of the disputed figures.
3. EMT Rescue Bonus (MOU Article III, Section 3.11)
Modify Article III, Section 3.11 of the MOU to increase the Rescue EMT assignment bonus
from $200.00 to 3% of Top Step Firefighter.
4. Training Comnanv Bonus (MOU Article III, Section 3.131
Modify Article III, Section 3.13 of the MOU to increase the Training Company assignment
bonus from $100.00 to 2.5% of Top Step Firefighter. For members currently assigned to the
Training Company (including cross-staff personnel). Members receiving Urban Search and
Rescue (USAR) company bonus will not be eligible for training company bonus.
5. Urban Search and Rescue Assignment Bonus (MOU Article III, Section 3.141
Modify Article III to add Section 3.14 to the MOU which creates a bonus for members currently
assigned to the Urban Search and Rescue (USAR) company (including cross-staff personnel) in
the amount of 4% of Top Step Firefighter. This form of special compensation, also referred to
as "Hazard Premium", is reported to Ca1PERS as compensation earnable pursuant to California
Public Employees' Retirement System(PERS) Regulations, Section 571(a)(4).
6. Health Insurance (MOU Article VI, Section 6.1811
Modify Article VI, Section 6.1B of the MOU to increase the City's monthly contributions as
follows:
. �
Current $1,101.00 $1,595.04 $1,595.00 $995.00
Januar 1, 2020 $1,126.00 $1,645.00 $1,695.00 $1,020.00
Janua 1, 2021 $1,151.00 $1,695.00 $1,795.00 $1,045.00
Janua 1, 2022 $1,176.00 $1,745.00 $1,895.00 $1,Q70.00
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7. Educational Assistance and Professional Development (MOU Article VII, Section 7.1)
Eliminate Section 7.2 and modify Section 7.1 as follows:
The City will reimburse employees, up to $1,250.00 per fiscal year, for the cost of tuition,
textbooks, and other course-related fees required for approved community college courses,
university courses, and courses certified through California State Fire Training, or any similar
recognized agency, at the Local, State, and Federal level. Course-required equipment that is
available to be borrowed from the City is not eligible for reimbursement. Additionally,the City
will reimburse for registration at job-related professional conferences, seminars and training
classes. An approved course, conference, seminar, or training class is one designed to directly
improve the knowledge of the employee relative to his specific job and must be approved by the
Fire Chief and the Human Resources/Employee Relations Director prior to registration. The
employee must still be employed by the City when the course or class is completed. Costs
associated with travel, lodging, meals (or per diem),parking, or other costs as defined in Article
XIII of this Agreement are not eligible for reimbursement under this section. Proof of attendance
of course,conference,seminar,or training class is required prior to reimbursement. With respect
to courses where achievement grades are provided, a final grade of"C" or better, or a Pass in a
pass/fail course, is required in order to be eligible for reimbursement.
8. Educational Incentive Pro�ram (MOU Article VII, Section 7.3)
Per Item 7 above, eliminate Section 7.3 and modify to new Section 7.2 as follows:
� � � � • �
60 Units $145.00 No Chan e
AA/AS $160.00 $190.00
90 Units $210.00 No Chan e
BA/BS $265.00 $375.00
MA/MS $330.00 $550.00
9. PERS Level 4 Survivor Benefit for Miscellaneous Members(MOU Article XII,Section 12.1
�
Modify Article XII, Section 12.1 by adding Subsection J to the MOU to read:
The City will provide the PERS 1959 Survivor Benefit at the Third Level Option for
miscellaneous members. The City shall increase the 1959 Survivor Benefit to the Fourth Level
Option(California Government Code Section 21574)for miscellaneous members;miscellaneous
members shall pay their $2.00 monthly contribution through payroll deduction. The City shall
pay the employer portion subject to the following limit: in the event the employer portion
exceeds$6.00 monthly,miscellaneous members agree to pay any portion of the employer portion
that exceeds $6.00 monthly. This benefit shall be contingent upon all affected bargaining units
contractually agreeing to this provision.
5
10. Union Representation (MOU Article XX, Section 20.6)
Modify Article XX, Section 20.6 of the 1VIOU to increase union hours from 264 (11 shifts) to
312 (13 shifts)per fiscal year.
11. Limited Reonener(MOU Article XXIII, Se.ction 23.3)
Modify Article XXIII to add new Section 23.3 into MOU as follows:
Either party can reopen the following economic articles in the 1VIOU for negotiations during the
2020/2021 fiscal year through a limited reopener subject to the requirements set forth in this
article: Azticles III and X (Section 10.3). In order for either party to invoke this limited
reopener: 1) there must be a fiscal year-over-year (from 18/19 to 19/20) increase/decrease in
sales tax revenue received by the city greater than 10%, and 2) either party must provide in
written notice of its request and intent to reopen n�10U negotiations for this limited purpose in
writing to either party during the following dates: December 15, 2020 through January 15,
2021. 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, 2022. Any inclusion of a like or similar article in future MOUs will be subject to the
meet and confer process.
12. Langua�e Changes
Implement mutually agreed language clean-up to conform MOU to current practices or
agreements.
13. Status of MOU
Except as specifically provided and amended herein,the terms and conditions of the MOU shall
govern the provisions of wages, salaries and other Uenefits for all couered employees. This LOU
shall not be interpreted to extend and/or limit a�y 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, 2022.
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City of Orange prange City Fire Fighters,Inc.Local
2384 of the International Association
of Fire Fighters, AFL-CIO
Dated: Dated:
By: By:
Will Kolbow,Administrative Services Director Casey Fieldhouse, President
By: By:
Monica Espinoza,Assistant Human Resources Director Andrew Lauridsen, Vice President
By: By:
Erin Hodges, Senior Human Resources Analyst Harley Shields, Secretary
By: By�
Aaron Schulze, Senior Administrative Analyst Miguel Gonzalez, Treasurer
Approved as to form:
Gary A. Sheatz, City Attorney
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Appendix "A"
ORANGE CITY FIRE FIGHTERS UNIQN
MONTHLY SALARY RANGES
EFFECTIVE JULY 8, 2018
0.75% Across the Board Salary Increase
Range Step A Step B Step C Step I� Step E
Classification Title
Fire Captain 624.5 9565 9565 9565 9565 9565
Fire Engineer 593.5 6740 7077 7431 7803 8193
Firefighter 568.5 5949 6247 6559 6887 7231
Fire Inspector/Investigator 612.5 9008 9008 9008 9008 9008
Fire Safety Specialist 574.5 6130 6437 6759 7097 7451 .
Hazardous Materials Specialist 594.5 6774 7113 7468 7842 8234
Plan Examiner 594.5 6774 7113 7468 7842 8234
EFFECTIVE JUNE 23, 2019
4.0% Across the Board Salary Increase
Range Step A Step B Step C Step D Step E
Classi�cation Title
Fire Captain 632.5 9955 9955 9955 9955 9955
Fire Engineer 601.5 7015 7366 7734 8121 8527
Firefighter 576.5 6192 6501 6826 7168 7526
Fire Inspector/Investigator 620.5 9376 9376 9376 9376 9376
Fire Safety Specialist 582.5 6380 6699 7034 7386 7755
Hazardous Materials Specialist 602.5 7050 7403 7773 8162 8570
Plan Examiner 602.5 7050 7403 7773 8162 8570
Increases effective June 21, 2020 and June 20, 2021 will be implemented pursuant to Section 2
of this LOU.
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