Board decision on the issues at impasse: Article 22.18 - Leapfrog language Article 31 - Insurance Article 40.03(D) - Step increases after contract expiration Article 53.02(D) - Step increases after contract expiration.

This item concerns the resolution of a labor impasse between Orange County and the Orange County Firefighters Association, Local 2057, regarding the 2024-2027 Collective Bargaining Agreement. The Board of County Commissioners is tasked with resolving four specific articles at impasse following a Special Magistrate's recommendation issued on January 16, 2026.

Key Provisions at Impasse:

• Article 22.18 (Leapfrog Language): The County proposes eliminating this provision, which currently prevents newly promoted employees from surpassing the pay of existing employees with equal or less longevity. The Special Magistrate recommended elimination, citing a lack of compelling justification for retention.
• Article 31 (Health Insurance): The Union seeks to extract firefighters from the County’s group health plan to establish an independent Health Care Trust. The County opposes this, citing fiduciary concerns over taxpayer funds, potential legal/compliance issues, and the loss of group insurance stability. The Special Magistrate recommended retaining the current County plan structure with a modification to increase the retiree health insurance subsidy to $7.50 per year of service, effective October 12, 2025.
• Articles 40.03(D) and 53.01(D) (Step Increases): The Union proposes that 5% step increases continue automatically after the contract expires. The County seeks to maintain the status quo, where increases beyond the contract term are subject to negotiation. The Special Magistrate recommended the County's position.

Financial Details:

• The County reports the proposed wage increases represent a historic investment, totaling $49.64 million in incremental costs over the three-year contract term (FY 2024-25 through FY 2026-27).
• The Union's proposed health insurance trust would require a fixed employer contribution of $1,487.50 per employee per month, with a 6% annual increase, plus a one-time $2 million reserve transfer.

Procedural Arc:

• The parties have been in negotiations since September 2023. Following an impasse declaration in March 2024 and a Special Magistrate hearing in November 2025, the County has accepted all of the Magistrate's recommendations, while the Union has selectively accepted those favoring their position. The Board is now required to vote on these items, with the Union requesting separate votes on each issue to ensure independent consideration.