SR - RES-10760 - TERMS OF EMPLOYMENT JULY 1 2013 JUNE 30 2015AGENDA ITEM
February 11, 2014 Meeting
TO: Honorable Mayor and
ReviewedNer'tied By:
Gen Fund Only
Cost for Increased Benefits
$117,674
Members of the City Cou cil
City Manager
Finance Direc r
$117,674
THRU: John Sibley,
Cost for Increased Benefits
$173,632
To Be Presented By:
Total Annual Cost FY 2014/15
City Manager
$571,979
Cons Calendar
City Mgr Rpts
FROM: Steven V. Pham, u
Council Reports
Affairs
Resources /Employee Rel ns
_Legal
Boards /Cmtes
Public Hrgs
Director
_
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. 10760 — A Resolution of the City Council of the City of Orange Relating to
the Classification, Compensation, and Terms of Employment of Executive Directors and
Top Management Employees, and Repealing Resolution No. 10589 and Amendments
Thereto.
2. SUMMARY
Resolution No. 10760 amends the compensation and terms of employment for the City's
Executive Directors and Top Management Employees for the period July 1, 2013 through June
30, 2015. Details of this agreement are provided under Section 6, "Discussion and Background"
below.
3. RECOMMENDATION
Approve Resolution No. 10760 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 7=
FISCAL YEAR 2013/14
Cost Description
All Funds
Gen Fund Only
Cost for Increased Benefits
$117,674
$74,605
Total Annual Cost
$117,674
$74,605
FISCAL YEAR 2014/15
Cost Description
All Funds
Gen Fund Only
Cost for Salary Increase
$273,203
$173,211
Cost to End Work Furlough
$455,339
$288,685
Cost for Increased Benefits
$173,632
$110,082
Total Annual Cost FY 2014/15
$902,175
$571,979
ITEM _3`3 1 2/11/2014
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 City's Top Management employees are not formally recognized as an employee bargaining
unit, but are covered by a City Council- adopted Resolution that provides for employee
compensation and benefits. The Top Management Resolution covers the City's department
heads, division managers, and other executive management -level employees. There are currently
62 employees covered by this Resolution.
If approved, the new Top Management Resolution will reflect the following provisions for the
period of July 1, 2013 through June 30, 2015:
Provision
Description
Term of Agreement
Effective July 1, 2013 through June 30, 2015
Salary
Effective July 1, 2014:
• 3.0% Across the Board Salary Increase for all employees
Furlough
Continue 5% work furlough without pay for all employees to June 30,
2014. End work furlough effective July 1, 2014.
Medical Insurance
Increase
the City's contribution toward medical insurance benefits per
employee
as follows:
Effective Date Exec Senior
Directors Managers
October 1, 2012 $1,535 $1,225
January 1, 2014 $1,600 $1,290
January 1, 2015 $1,670 $1,360
Vacation Conversion
• Effective upon Council approval, an employee may convert 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.
?. ATTACHMENTS
• Resolution 10760
RESOLUTION NO. 10760
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE RELATING TO THE CLASSIFICATION,
COMPENSATION, AND TERMS OF EMPLOYMENT OF
EXECUTIVE DIRECTORS AND TOP MANAGEMENT
EMPLOYEES, AND REPEALING RESOLUTION NO.
10589 AND AMENDMENTS THERETO.
WHEREAS, the employees covered by this Resolution constitute management personnel; and
WHEREAS, the City Council has consulted with the City Manager concerning the proposed
employment terms contained herein; and
WHEREAS, the City Council has determined that this Resolution shall set forth the wages,
hours, and conditions of employment for the period of July 1, 2013 through June 30, 2015 for those
management employees covered herein;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby
adopts the wages, hours, and conditions of employment for the period of July 1, 2013 through June 30,
2015 for Executive Directors and Top Management Employees as follows:
SECTION 1. BASIC COMPENSATION PLAN. There is hereby established a basic
compensation plan for all executive directors and top management employees of the City of Orange who
are now employed, or will in the future be employed in any of the classifications of employment listed in
this Resolution and its attachments. Whenever the masculine gender is used in this Resolution, it shall
be understood to include the feminine gender. Whenever the term "department head" is used, it shall be
understood to include the City Manager when the personnel action affects a department head.
SECTION 2. SALARY AND WAGE SCHEDULE. The monthly salaries for employees
covered by this Resolution are hereby incorporated, and listed in Exhibits "A" and "B."
The attached salary and wage schedules shall constitute the basic compensation plan consisting of
six steps or rates of pay in each range.
The City Manager reserves the right to grant an additional salary increase of up to 5.0% for any
classifications described herein in Exhibits "A" or `B." Any such increases shall not exceed a total cost
of 1% of payroll for Top Management employees.
The respective ranges shall be identified by number and the steps by the letters "A" to "F" inclusive.
The minimum length of service required for advancement to the next higher step, is provided in Section
5 and 6.
The regular work week for employees covered by this Resolution shall be 40 hours per week;
provided that effective July 1, 2013 through June 30, 2014 all employees covered herein shall continue
to be subject to a 5% work furlough. The furlough shall be implemented by continuing to close the
public services provided by covered employees on 13 additional Fridays during the fiscal year beginning
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