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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Adopt Resolution No. 2024-01 approving and implementing the 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; and authorize appropriation of funds
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Statement of Issue:
The MOU between the Huntington Beach FMA and the City expired on December 31, 2023. The City and FMA 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 formal consideration by the City Council.
Financial Impact:
Pursuant to the terms reached in the MOU by 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:
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A) Adopt Resolution No. 2024-01, “A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the 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; and,
B) Authorize City Manager or designee to take all administrative and budgetary actions necessary for implementation of Resolution No. 2024-01.
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Alternative Action(s):
Do not adopt Resolution No. 2024-01 approving the successor MOU for FMA employees and direct staff to continue to (1) meet and confer with FMA, or (2) utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution.
Analysis:
The FMA represents eight (8) City employees. Starting in September 2023, representatives for the City and FMA 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.
• 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, the 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, 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 first pay period of January 2025, employees will receive a base salary increase of four percent (4%). 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 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 first pay period of January 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 first pay period of January 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. Resolution No. 2024-01
3. Proposed MOU between the FMA and the City of Huntington Beach
4. Fiscal Impact Report
5. Power Point Presentation