REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Theresa St. Peter, Interim Human Resources Director
Subject:
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Introduction of the Proposed Memorandum of Understanding Between the Huntington Beach Fire Management Association (FMA) and the City of Huntington Beach for January 1, 2024 through December 31, 2026
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Statement of Issue:
Introduction of the Proposed Memorandum of Understanding (MOU) between the Huntington Beach Fire Management Association (FMA) and the City of Huntington Beach for January 1, 2024 through December 31, 2026.
Financial Impact:
Pursuant to the terms reached in the MOU with FMA, the total projected cost of the labor agreement as estimated by the Finance Department is approximately $153,771 for Fiscal Year (FY) 2023/24; $231,341 in FY 2024/25, $138,408 in FY 2025/26, and $60,188 in FY 2026/27. Additional budget increases of $24,837 in FY 2023/24, $36,381 in FY 2024/25, $21,001 in FY 2025/26, and $9,351 in FY 2026/27 are also estimated to account for impacts to overtime costs related to the agreement. The ongoing cost of the contract, including estimated impacts to overtime and cost increases to the City’s CalPERS expenses, is estimated to total $728,630 annually beginning in FY 2027/28.
Recommended Action:
recommendation
Approve introduction of the proposed Memorandum of Understanding Between the Huntington Beach Fire Management Association and the City of Huntington Beach for the period January 1, 2024, and December 31, 2026.
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Alternative Action(s):
Do not approve the introduction of the proposed successor MOU for FMA employees and direct staff to continue to: (1) meet and confer with the FMA, or (2) utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution.
Analysis:
The FMA has eight (8) City employees.
Representatives for the City and FMA engaged in active discussions on a new labor agreement, ultimately reaching a tentative agreement on a three (3) year contract for the period from January 1, 2024, through December 31, 2026.
Terms of Agreement:
• Term: The Agreement shall be effective January 1, 2024 through December 31, 2026.
• Classification and Compensation Survey: A Citywide classification and compensation survey was conducted in FY 2021/22. As a result of the survey, the classification of Deputy Fire Chief was created. Job descriptions describing duties and requirements for this classification as well as Fire Division Chief and Fire Battalion Chief were amended. However, no salary adjustments were made at that time. As a result, the salary range for Fire Division Chief was equal to that of the lower-level Fire Battalion Chief. Therefore, in order to provide equitable compensation, a ten percent (10%) spread above top step salary was established between each of these classifications.
• Salary increases: Effective January 6, 2024, employees will receive a base salary increase of six percent (6%). Effective the pay period including January 1, 2025, employees will receive a base salary increase of four percent (4%). Effective the pay period including January 1, 2026, employees will receive a base salary increase of four percent (4%).
• Performance bonus: Effective January 6, 2024, Section VB will be removed from the FMA MOU.
• Education Incentive Pay: Effective January 6, 2024, employees who possess a Bachelor's degree shall receive education incentive pay at the rate of two percent (2%) of their base salary. Effective January 6, 2024, employees who possess a Master’s Degree or have successfully completed the United States Fire Administration Executive Fire Officer Program (EFOP) shall receive education incentive pay at the rate of four percent (4%) of their base salary. Effective the pay period including January 1, 2025, employees who possess a Bachelor's degree shall receive education incentive pay at the rate of three percent (3%) of their base salary. Effective the pay period including January 1, 2025, employees who possess a Master’s degree or have successfully completed the United States Fire Administration Executive Fire Officer Program (EFOP)shall receive education incentive pay at the rate of six percent (6%) of their base salary.
• Strike Team Leader Pay: Effective January 6, 2024, this language will be amended to allow employees to receive one percent (1%) of their base salary once they complete the required prerequisites rather than waiting until they receive the associated certification.
• Longevity Pay: Effective January 6, 2024, longevity pay for employees with a minimum of twenty (20) years of service shall be increased from seven and one-half percent (7.5%) to nine percent (9%).
• Health and Other Insurance Benefits: Effective January 6, 2024, the City shall increase monthly contributions for medical insurance for single, two-party, and family to $859.00, $1,728.00, and $2,201.00 for an increase of $89.84, $235.72 and $339.84, respectively. Effective January 2025, the City shall increase monthly contributions for medical insurance for single, two-party, and family to $892.00, $1,794.00, and $2,285.00 for an increase of $33.00, $66.00, and $84.00, respectively.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Summary of MOU Modifications
2. Fiscal Impact Report
3. Proposed MOU
4. Presentation