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RES-10909 Letter of Understanding For International Fire Fighters AssociationRESOLUTION 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 10 day of November, 2015. Teres E. Smith, Mayor, City of Orange ATTEST: Mary E. Mu y, City Clerk, City of an I, MARY E MURHY, City Clerk of the City Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 10 day of November, 2015, by the following vote: AYES:COUNCILMEMBERS: NOES:COUNCILMEMBERS: ABSENT:COUNCILMEMBERS: ABSTAIN:COUNCILMEMBERS: Alvarez, Whitaker, Smith, Murphy, Nichols None None None Mary E. urp ity Clerk, City boange 2 EXHIBIT "A" 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 This Letter of Understanding ( "LOU ") is entered into by and between the City of Orange and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL - CIO. Recitals A. The City of Orange (hereafter, "City ") and the Orange City Firefighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO ( "Fire Union ") hereby enter into this LOU effective July 1, 2015. B. The parties agree to incorporate the language addressed in this LOU into a new Memorandum of Understanding ( "New MOU "), once both parties have the opportunity to review and concur on any and all language changes that will become part of the New MOU. A New MOU document will be presented to the City Council at a future meeting for its approval. C. All references to the "MOU" in this LOU shall be to that Memorandum of Understanding by and between the City and Fire Union adopted by City Council Resolution No. 10772. D. This new "LOU" shall supersede the "MOU" (Resolution No. 10772) which was adopted by the City Council on March 11, 2014. Agreement 1. Term and Effective Date. The term of this LOU shall be from July 1, 2015 to June 30, 2017 and will become effective upon ratification by the Fire Union membership and approval of the City Council. 2. Salary (MOU Appendix "A "). Implement an across the board base salary increase of 3% for sworn, effective November 1, 2015 and an additional 3% for sworn, effective August 7, 2016. Implement an across the board base salary increase of 2% for non -sworn, effective November 1, 2015 and an additional 2% for non -sworn, effective June 26, 2016. 3 Monthly Salary Tables effective June 29, 2014, November 1, 2015, June 26, 2016 and August 7, 2016 are attached as Appendix "A ". 3. Medical Insurance (MOU Article XVIII, Section 1B). Modify Article XVIII, Section 1B of the MOU to provide that the City's contribution on behalf of each active employee shall be increased by $100 effective January 1, 2016 and increased by an additional $100 effective January 1, 2017. 4. Retirement Account (Article XII) The City shall add Schwab Personal Choice Retirement Account (PCRA) to its plan with an independent advisor selection, contingent upon there being no cost to the City. 5. Retirement Account (Article XII, Section 12.5) Amend Article XII, Section 12.5 to amend the PEHP Plan to require that each eligible employee contribute a fixed $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. 6. Overtime (MOU Article V. Section 5.6). 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 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. 7. Overtime (MOU Article V). Amend Article V to add the following paragraph: The City will compensate its employees overtime in accordance 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." in 8. Certification Incentive (MOU, Article VII, Section 7.4). Amend Article VII, Section 7.4 to extend the benefit to an individual who maintains a Fire Inspector I or a greater certification. 9. Language Clean -up /Other. Implement mutually agreed language clean -up to conform MOU to current practices or agreements. 10. Status of MOU. Except as specifically provided and amended herein, the terms and conditions of the MOU shall govern the provisions of wages, salaries and other benefits for all employees covered by the MOU through June 30, 2017. This LOU shall not be interpreted to extend and /or limit any other rights, benefits, or compensation of either party except as specifically provided herein and both this LOU and MOU shall expire on June 30, 2017. City of Orange Dated: q1 By: ta4 By: Teresa E. Smith, Mayor Orange City Firefighters Dated: \ I n /16 Attest: Mary E. urp ,City Clerk Approved as to form: Laura J. Kalty Special Counsel for the City 5