Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 6/11/2024

Item Creation Date:

LGL - Settlement Agreement Local 341 (2 of 2)

Agenda Item#: 26.


 
                               
Summary:
ORDINANCE authorizing and approving Settlement Agreement of $650,000,000.00 between City of Houston and HOUSTON PROFESSIONAL FIRE FIGHTERS’ ASSOCIATION, LOCAL 341 INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS’, to settle Cause No. 2017-42885, relating to compensation of classified fire fighters of the City of Houston from July 1, 2017 to June 30, 2024; incorporating a Collective Bargaining Agreement relating to employment terms and conditions, compensation, and benefits of classified fire fighters of the City of Houston for Fiscal Years 2025-2029, pursuant to a final judgment entered by the 234th Judicial District Court of Harris County, Texas on May 16, 2024; containing findings and other provisions relating to the foregoing subjects; providing an effective date

This item should only be considered after passage of Item 25 above

Background:

On June 29, 2011, City Council approved Ordinance No. 2011-548, relating to employment terms and conditions, compensation, and benefits of classified fire fighters of the City of Houston; ratifying the 2011 Agreement between the City of Houston and the Houston Professional Fighters’ Association, also known as the International Association of Fire Fighters’, AFL-CIO-CLC, Local Union 341 (the “Association”).

On December 19, 2012, City Council approved Ordinance No. 2012-1110, relating to the employment terms and conditions of classified fire fighters of the City of Houston; ratifying the amendment to the 2011 Agreement between the City of Houston and the Association.

On March 12, 2014, City Council approved Ordinance No. 2014-194, relating to employment terms and conditions of classified fire fighters of the City of Houston; ratifying the 2014 Interim agreements between the City of Houston and the Association.

On June 30, 2017, the 2011 Collective Bargaining Agreement (CBA), including the 2012 and 2014 Amendments to the CBA, expired when the parties reached impasse and did not reach an agreement on a successor CBA.

The Association brought a lawsuit styled as Houston Professional Fire Fighters’ Association, Local 341 v. City of Houston, Texas, Cause No. 2017-42885 (“the Lawsuit”).

The Association (which includes the Medical Trust) and the City of Houston executed a Settlement Agreement (“Settlement Agreement”) on March 13, 2024. The Settlement Agreement of $650,000,000.00 releases the City from all claims and causes of action asserted by the Association in the Lawsuit, other than claims for enforcement of the Settlement Agreement.   

The Association and the City of Houston executed the Amendment to March 13, 2024, Settlement Agreement (“Amendment”) on May 16, 2024.

The Settlement Agreement provides for overtime payment to classified members of the City of Houston Fire Department employed between July 1, 2017 and June 30, 2024. The Settlement Agreement specifically exempts any fire fighter during the afore-mentioned time period convicted of a felony or placed on felony probation, the Fire Chief, and Executive Management Staff of the City of Houston Fire Department (Assistant Chiefs) from receiving any settlement funds (except for any period an Assistant Chief was not Executive Management Staff). Separate and apart from the settlement proceeds, the City will pay $6,500,000.00 in attorney’s fees from the Legal Department’s Property & Casualty Fund. The Settlement Agreement incorporates a CBA related to employment terms and conditions, compensation, and benefits of classified fire fighters of the City of Houston for fiscal years 2025 to 2029.

The Settlement Agreement and the Amendment are attached to this ordinance as Exhibit “A”. The 2025 CBA is attached to this ordinance as Exhibit “A-1.”

It is recommended that City Council approve this ordinance settling the Lawsuit, Exhibit “A” (the Settlement), and approving FY25 collective bargaining agreement, Exhibit “A-1” (CBA).

 

 

Fiscal Note:  

 

Funding for this item is included in the FY24 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

 

 

Estimated Spending Authority

Department

FY2024

FY2025

Out Year

Total

Legal

$4,000,000.00

$2,500,000.00

 

$6,500,000.00

Fire   $48,416,066.00  $443,487,346.00  $491,903,412.00 
Total $4,000,000.00
$50,916,066.00  $443,487,346.00  $498,403,412.00 

 

 

 

____________________________

Arturo G. Michel, City Attorney

 

Amount and Source of Funding:

$650,000,000.00 - Refunding Bonds (approved in preceding agenda item)

$    6,500,000.00 - Property and Casualty Fund (1004)

$491,903,412.00 – General Fund (1000)

Contact Information:

Nirja Aiyer, First Assistant City Attorney- 832-393-6283

Arturo Michel, City Attorney - 832-393-6202