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Home My WebLink AboutSR - RES-10909 - LETTER OF UNDERSTANDING TERMS OF EMPLOYMENT JULY 1 2015 TO JUNE 30 2017AGENDA ITEM November 10, 2015 cOL/NTV GPti TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Wayne W. Winthers 4 /_V City Attorney Steven V. Pham ��// Human Resources plo�Relations Director 1. SUBJECT Resolution No. 10909 — A Resolution of the City Council of the City of Orange Establishing a Letter of Understanding between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO Effective July 1, 2015 to June 30, 2017. 2. SUMMARY Resolution No. 10909 establishes a Letter of Understanding between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL - CIO) effective July 1, 2015 to June 30, 2017. 13. RECOMMENDATION I Approve Resolution No. 10909 and authorize staff to make the necessary budget adjustments and /or appropriations to the departments' salary and benefit accounts to fund the increased costs of the contract. 4. FISCAL IMPACT Costing Summary: Fiscal Year 2015 -16 Cost Description General Fund Cost of Salary Increase $274,720 Cost for Negotiated Benefits $189,008 Total Annual Cost $463,728 Fiscal Year 2016 -17 Cost Description General Fund Cost of Salary Increase $801,790 Cost for Negotiated Benefits $575,966 Total Annual Cost $1,377,756 ReviewedNerified B City Manager Finance Directo To Be Presented y: Wayne Winthers X Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards /Cmtes _ Public Hrgs Admin Reports Plan /Environ ITEM � J 1 11/10/15 5. STRATEGIC PLAN GOAL(S) 1. Provide for a safe community b. Provide and maintain infrastructure necessary to ensure the safety of the public. 3. Enhance and promote quality of life in the community d. Maintain and improve multi -modal transportation throughout the City. 6. DISCUSSION and BACKGROUND The Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO ( "Fire Union ") is currently comprised of I10 sworn and 5 benefited non -sworn personnel. Beginning May 2015, representatives from the City and Fire Union began the collective bargaining process to negotiate the terms and conditions of a new labor agreement. The prior contract between the parties expired on June 30, 2015. After six months of contract negotiations, the parties reached agreement on the terms and conditions of a new two -year labor contract that includes the following provisions: ITEM 2 11/10/15 Provision I Term of Agreement Effective July 1, 2015 through June 30, 2017 The MOU shall be amended as follows: Effective November 1, 2015, the salaries of unit employees (sworn) shall effectively increase by 3 %. Effective November 1, 2015, the salaries of unit employees (non - 2 Salary sworn) shall effectively increase by 2 %. Effective August 7, 2016, the salaries of unit employees (sworn) shall effectively increase by 3 %. Effective June 26, 2016, the salaries of unit employees (non -sworn) shall effectively increase by 2 %. Effective January 1, 2016, the City's contribution toward medical insurance benefits per employee shall increase by $100. 3 Medical Insurance Effective January 1, 2017, the City's contribution toward medical insurance benefits per employee shall increase by $100. The City shall add Schwab Personal Choice Retirement Account 4 Retirement Account (PCRA) to its plan with an independent advisor selection, contingent upon there being no cost to the City. ITEM 2 11/10/15 Fire Union took this to a vote of their membership and ratified the proposal on November 5, 2015. Council approval is required to finalize this agreement in the form of a Letter of Understanding. 7. ATTACHMENTS • Resolution No. 10909 • Appendix A — Salary Table NAEconomic Development Files \STAFF REPORTS \2015 \111015g_Fire LOU.doc ITEM 3 11/10/15 The parties agree to amend Article XII, Section 12.5 to amend the PEHP Plan to require that each eligible employee contribute a fixed 5 Retirement $150 per month of base salary toward the program so as to be eligible for the accompanying benefits, contingent upon there being no cost to the City; the City understands that the Fire group may ultimately determine not to include this term as part of the MOU. The parties agree to amend Article V, Section 5.6 to provide, on a case by case basis as determined at the sole discretion of the Fire Chief, that an employee may elect to declare him /herself exempt 6 Overtime from "forced hiring" for a period of six (6) months on the condition that the employee agree not to be eligible to work overtime during that period. The parties agree to amend Article V to add the following paragraph: "The City will compensate its employees overtime in accordance 7 Overtime with their current Memorandum of Understanding while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre - positioned for emergency response." The parties agree to amend Article VII, Section 7.4 to extend the S Certification benefit to an individual who maintains a Fire Inspector I or a greater Incentive certification. Language Implement mutually agreed language clean -up to conform MOU to 9 Cleanup /Other current practices. Fire Union took this to a vote of their membership and ratified the proposal on November 5, 2015. Council approval is required to finalize this agreement in the form of a Letter of Understanding. 7. ATTACHMENTS • Resolution No. 10909 • Appendix A — Salary Table NAEconomic Development Files \STAFF REPORTS \2015 \111015g_Fire LOU.doc ITEM 3 11/10/15 RESOLUTION NO. 10909 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ESTABLISHING A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE ORANGE CITY FIREFIGTHERS, INC. LOCAL 2384 OF THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, AFL -CIO EFFECTIVE JULY 1, 2015 THROUGH JUNE 30, 2017 WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL - CIO have met and conferred in accordance with the requirements of the Meyers- Milias- Brown Act; and WHEREAS, the City and Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO have reached agreement on wages, salaries, and other terms and conditions of employment effective July 1, 2015 through June 30, 2017; and WHEREAS, the City Council of the City of Orange has consulted with its Chief Negotiator concerning the proposed employment terms contained in the attached Letter of Understanding; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the attached Letter of Understanding is approved and incorporated by reference as Exhibit "A." ADOPTED this day of 2015. Teresa E. Smith, Mayor of the City of Orange ATTEST: Mary E. Murphy, City Clerk of the City of Orange 1