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:
title
Adopt Resolution No. 2024-02 approving and implementing the Memorandum of Understanding between the Huntington Beach Fire Association (HBFA) and the City of Huntington Beach for January 1, 2024, through December 31, 2026; and authorize appropriation of funds
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Statement of Issue:
The MOU between the HBFA and the City expired on December 31, 2023. The City and HBFA engaged in good-faith negotiations, ultimately reaching agreement on terms in November 2023 on a three-year contract covering the period of January 1, 2024 through December 31, 2026. The MOU was approved for introduction at the December 19, 2023, City Council Meeting, and pursuant to the City’s Municipal Code, the MOU is placed on the agenda for final consideration by the City Council.
Financial Impact:
Pursuant to the terms reached in the MOU by HBFA, the total projected cost of the labor agreement as estimated by the Finance Department is approximately $736,769 for Fiscal Year (FY) 2023/24; $1,571,676 in FY 2024/25, $1,439,431 in FY 2025/26 and $690,412 in FY 2026/27. Additional budget increases of $182,961 in FY 2023/24, $389,952 in FY 2024/25, $352,012 in FY 2025/26 and $145,021 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 $6,049,449 annually beginning in FY 2027/28.
Recommended Action:
recommendation
A) Adopt Resolution No. 2024-02, “A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Firefighters’ Association and the City of Huntington Beach for the period January 1, 2024 through December 31, 2026; and,
B) Authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2024-02.
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Alternative Action(s):
Do not adopt Resolution No. 2024-02 approving the successor MOU for HBFA employees and direct staff to continue to (1) meet and confer with HBFA, or (2) utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution.
Analysis:
The HBFA represents 121 City employees. Starting in August 2023, representatives for the City and HBFA engaged in active negotiations on a new labor agreement, ultimately reaching a tentative agreement on contract terms for a 3-year period in November 2023. The MOU was approved for introduction at the December 19, 2023, City Council Meeting and is now ready for consideration for approval by City Council.
Key changes in the proposed MOU include the following:
• Term: The Agreement shall be effective January 1, 2024, through December 31, 2026.
• Salary increases: Effective January 6, 2024, employees will receive a base salary increase of six percent (6%). Effective the first pay period of January 2025, employees will receive a base salary increase of six percent (6%). Effective the first pay period of January 2026, employees will receive a base salary increase of four percent (4%).
• Performance bonus: Effective January 6, 2024, Section V, A will be removed from the HBFA MOU.
• Longevity Pay: Effective January 6, 2024, a fifteen-year tier was added to longevity pay. As a result, employees with fifteen (15) or more but less than twenty (20) years of service shall receive longevity pay equal to seven and one-half percent (7,5%) of base salary. Additionally, the longevity pay for employees with twenty (20) or more years of service will be increased from seven and one-half percent (7.5%) to ten percent (10%).
• 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 $900, $1,650, and $2100, respectively. Effective the first pay period of January 2025, the City shall increase monthly contributions for medical insurance for single, two-party, and family to $975, $1,728, and $2201, respectively. Effective the first pay period of January 2026, the City shall increase monthly contributions for medical insurance for single, two-party, and family to $1050, $1,794, and $2285, 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. Resolution No. 2024-02
3. Proposed MOU between the HBFA and the City of Huntington Beach
4. Fiscal Impact Report
5. Power Point Presentation