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RES-9955 Letter of Understanding Orange Fire Management AssociationRESOLUTION NO. 9955 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ESTABLISHING A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE ORANGE FIRE MANAGEMENT ASSOCIATION EFFECTIVE MARCH 1, 2005 THROUGH FEBRUARY 29, 2008 WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange Fire Management Association, hereinafter referred to as "Association" have met and conferred in accordance with the requirements of the Meyers-Milias-Brown Act; and WHEREAS, City and Association have reached agreement on wages, salaries,and other terms and conditions of employment effective March 1, 2005 through February 29, 2008; and WHEREAS, the City and the Association agree to incorporate the provisions contained in the attached Letter of Understanding into a new Memorandum of Understanding at some future date once both parties have an opportunity to review and concur on any and all language changes to be included in a new Memorandum of Understanding; and WHEREAS, the City Council has consulted with the City Manager and Personnel Director 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 lO'h day of May 2005. I ATTEST:cL~MaryE. .. CityCI51 ' I, MARY E. MURPHY, City Clerk of the City of 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 10th day of May, 2005 by the following vote: AYES: NOES: ABSENT: ABSTAINED: COUNCIL MEMBERS: Smith, Ambriz, Murphy, Cavecche, Dumitru COUNCIL MEMBERS: None COUNCIL MEMBERS: None COUNCIL MEMBERS: None MaryE.M 2 EXHIBIT "A" A LETTER OF UNDERSTANDING I BETWEEN THE CITY OF ORANGE AND THE ORANGE FIRE MANAGEMENT ASSOCIATION EFFECTIVE MARCH 1, 2005 THROUGH FEBRUARY 29, 2008 This Letter of Understanding ("LOU") is entered into by and between the City of Orange the "City") and the Orange Fire Management Association (the "Association.") In April 2005, the City and the Association met and engaged in the Meet and Confer process to establish its next contract. These discussions resulted in this LOU between the City and the Association, who have agreed to the following: Term of Agreement March 1,2005 through February 29,2008 Salarv Increases I 5.0% Across-the-Board Raise effective 2/ 20/2005 3.0% Across-the-Board Raise effective 8/21/2005 5.0% Across-the- Board Raise effective 2/19/2006 Increase base salaries to survey market median with a minimum of 3.0% and maximum of 6.0% effective 2/18/07 based on labor market salary survey.Fire Mgt. and the City will conduct a salary survey by or before February 28, 2007 of all Fire Departments throughout the County to determine the maximum (top step)base salary for Fire BC. The median calculation will exclude Orange Fire Department salaries. The contractual March 2007 salary data from the survey agencies will be utilized for any necessary adjustments. In the event the Orange Fire BC salary top step is below the median ofthe surveyed agencies, the City shall increase the entire salary range of that classification in 0.5% increments at a minimum of3.0% to a maximum of 6.0% to bring the salary level toward the survey median.PERS Cost-Sharing Employees continue to participate in PERS Cost-Sharing; City agrees to cap contribution rate Assignment Pav The City shall increase the Assignment Pay provision for BC's assigned as Division Chiefs to Operations or Division Managers as follows: Effective 1/1/06 from 12% to 14% Effective 1/1/07 from 14% to 16% Medical Insurance Contribution The City shall increase the medical insurance premium for all full time employees as follows: Effective March 1, 2005, increase flexible benefits contribution from $640/month to 875/month Effective 3/1/06 - Increase to $919 per month Effective 3/1/07 - Increase to $965 per month Long Term Disabilitv Insurance The City shall increase the Long Term Disability insurance benefit as follows:Effective 1/ 1/06 increase LTD benefit from 60% of salary with cap of$5,000 per month to 66.6% of salary with cap of $6,000 per month Call Back Comoensatorv Time Effective March I, 2005, the City agrees to provide time and one-half compensation for emergency callbacks, as opposed to straight time pay Uniform Allowance The City agrees to increase uniform allowance as follows:Effective July I, 2005, increase from $380/year to $500/year Effective July I, 2006, increase from $500/year to $600/year Educational Incentive The City agrees to increase educational incentive pay effective July I, 2006 as follows:Education Level Current Pro osed AA De ee $120 $150 BA De ee $160 $250 MA De ee $220 $320 Eliminate category "AA Degree plus 30 Units"4 Education & Professional Development Reimbursement The City agrees to increase this benefit as follows: I Effective July I, 2006, increase Professional Development from $500 to $800 per fiscal year Increase total Educational Reimbursement from $1,200 to $1,500 per fiscal year Allow for full reimbursement for grade "c" or better, as opposed to partial reimbursement for grades of"B" or "c" Include "parking fees and health fees" as reimbursable expenses Floating Holidav The City agrees to change language to allow for pro-ration of floating holiday benefit for employees promoted after January 1 s, during their first calendar year of service as a Battalion Chief.Sick Leave Pavoff at Retirement Effective January I, 2006, provide 50% payoff of all sick leave accrued upon retirement from City and entering PERS Physical Fitness Incentive The City agrees to establish a physical fitness incentive program as follows:Effective July I, 2006, provide reimbursement for health/fitness club membership of up to $200 per fiscal year Effective July I, 2007, increase from $200 to $395 per fiscal year Bereavement Leave The City agrees to modify its bereavement leave provision as follows: I Bereavement leave definition to include all current relatives, plus "legal guardian,grandparent, grandchild, brother-in-law, sister- in-law, aunt, and uncle."Provide paid bereavement at two (2) shifts for twenty-four hour personnel, and three 3) shifts for forty-hour personnel.Bereavement leave shall not be deducted Industrial Iniurv & Illness The parties agree to change MOU language to reflect current state laws for Workers' Compensation. New Memorandum of Understanding The City and the Association agree to incorporate the provisions contained in this Letter of Understanding into a new Memorandum of Understanding once both parties have had an opportunity to review and concur on any and all language changes included in the new MOU. Ratification and Execution The City and the Association acknowledge that this Letter of Understanding shall not be in full force and effect until ratified by the Association and adopted by the City Council of the City of Orange. Subject to the foregoing, this Letter of Understanding is hereby executed by the authorized representative of the City and the Association and entered into on this I' \ day of 1 ,2005. Orange City Association Fire Management B '.By:t'~14 By: By:By: 6