SR - RES-10756 - JULY 1 2013 - JUNE 30 2015 CONDITIONS OF EMPLOYMENTAGENDAITEM
January 14, 2014 Meeting
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TO: Honorable Mayor and
Members of the City C
ReviewedNerifito By:
City Manager
Finance Dired
THRU: John Sibley,
City Manager
FROM: Steven V. Pham, Htw
Resources /Employee
Director
To Be P
Cons Calendar
_ City Mgr Rpts
Council Reports
Legal Affairs
Boards /Cmtes
_ Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. 10756 — A Resolution of the City Council of the City of Orange Establishing
a Letter of Understanding between the City of Orange and the Orange Maintenance and
Crafts Employees Association Effective July 1, 2013 through June 30, 2015.
2. SUMMARY
Resolution No. 10756 establishes a Letter of Understanding between the City of Orange and the
Orange Maintenance and Crafts Employees Association for the period July 1, 2013 through June
30, 2015. Details of this agreement appear below under the "Discussion and Background"
section of this staff report.
3. RECOMMENDATION
Approve Resolution No. 10756 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
FISCAL YEAR 2013/14
Cost Description
All Funds
Gen Fund Only
Cost for Negotiated Benefits
$26,191
$12,572
Total Annual Cost
$26,191
$12,572
FISCAL YEAR 2014/15
Cost Description
All Funds
Gen Fund Only
Cost for Salary Increase
$107,784
$51,736
Cost to End Work Furlough
$179,640
$86,227
Cost for Negotiated Benefits
$46,675
$22,404
Total Annual Cost FY 2014/15
$334,099
1 $160,367
ITEM � 1 9 1 1/14/2014
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community
2. Be a fiscally healthy community
3. Provide outstanding public service
6. DISCUSSION and BACKGROUND
The Orange Maintenance and Crafts Employees' Association ( OMCEA) is currently comprised
of 41 personnel. Beginning July 2013, representatives from the City and the OMCEA 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, 2013. After 6 months of contract
negotiations, the parties reached agreement on the terms and conditions of a new two -year labor
contract that includes the following rovisions:
Provision
Description
Term of
Effective July 1, 2013 through June 30, 2015
Agreement
Salary
Effective July 1, 2014:
• 3.0% Across the Board Salary Increase for all Unit Employees
Furlough
Continue 5% work furlough without pay for all employees to June 30, 2014.
End work furlough effective July 1, 2014.
Medical
Increase the City's monthly contribution toward medical insurance benefits
Insurance
per employee as follows:
Effective 1
Party Waivel
December 1, 2012 $610 $985 $1,210 $610
January 1, 2014 $675 $1,050 $1,275 $675
January 1, 2015 $745 $1,120 $1,345 $745
Vacation
• Effective upon execution of this agreement, an employee may convert
Conversion
up to 25% of his current annual vacation accrual into pay in lieu of time
off with pay on an annual basis for the 2013 /14 fiscal year.
• Effective July 1, 2014, an employee may convert up to 33% of his
current annual vacation accrual into pay in lieu of time off with pay on
an annual basis for the 2014/15 fiscal year.
Working out of
. Effective upon execution, the waiting period for working out of class
Classification
assignments shall decrease from 14 consecutive working days to 10
consecutive working days.
Relationship
. If, during the term of this MOU, another represented non - safety City of
with Other
Orange bargaining group receives an across the board salary or benefit
Bargaining
increase more than as set forth in this TA, the City would agree to
Units
provide the same for OMCEA.
No Layoff
• There will be no layoffs of bargaining unit employees as long as
Clause
employees are subject to the current work furlough.
OMCEA took this to a vote of their membership and ratified the proposal on December 18,
2013. Council approval is required to finalize this agreement in the form of a Letter of
Understanding.
7. ATTACHMENTS
• Resolution 10756
• Salary Table
RESOLUTION NO. 10756
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ESTABLISHING A LETTER OF
UNDERSTANDING BETWEEN THE CITY OF
ORANGE AND THE ORANGE MAINTENANCE
AND CRAFTS EMPLOYEES' ASSOCIATION
( OMCEA) EFFECTIVE JULY 1, 2013 THROUGH
JUNE 30, 2015
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
Maintenance and Crafts Employees' Association, hereinafter referred to as " OMCEA"
have met and conferred in accordance with the requirements of the Meyers - Milias -Brown
Act; and
WHEREAS, the City and OMCEA have reached agreement on wages, salaries,
and other terms and conditions of employment effective July 1, 2013 through June 30,
2015; 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 2014.
Teresa E. Smith, Mayor of the City of Orange
ATTEST:
Mary E. Murphy, City Clerk of the City of Orange
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