Loading...
SR - RES-10775 - LETTER OF UNDERSTANDING JULY 1 2013 TO JUNE 30 2015AGENDA ITEM March 25, 2014 Meeting TO: Honorable Mayor and Gen Fund Cost for Negotiated Benefits $1,950 Total Annual Cost $1,950 Members of the City Council $41,230 City Manager Finance Direc o THRU: John Sibley, To Be Presented y: City Manager Cons Calendar City Mgr Rpts FROM: Steven V. Pham, H Council Reports _ Legal Affairs Resources /Employee Re ns Boards /Cmtes _ Public Hrgs Director Admin Reports _ Plan/Environ 1. SUBJECT Resolution No. 10775 — 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 July 1, 2013 through June 30, 2015. 2. SUMMARY Resolution No. 10775 establishes a Letter of Understanding between the City of Orange and the Orange Fire Management 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. 10775 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 Gen Fund Cost for Negotiated Benefits $1,950 Total Annual Cost $1,950 FISCAL YEAR 2014/15 Cost Description Gen Fund Cost for Salary Increase $37,180 Cost for Negotiated Benefits $4,050 Total Annual Cost FY 2014/15 $41,230 5. STRATEGIC PLAN GOAL(S) ITEM 3 g 1 03/25/2014 1. Provide for a safe community 2. Be a fiscally healthy community 3. Provide outstanding_ public service 6. DISCUSSION and BACKGROUND The Orange Fire Management Association is currently comprised of 5 personnel. Beginning January 2014, representatives from the City and the Association 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. On March 4, 2014, the parties reached agreement on the terms and conditions of a new two -year labor contract that includes the following provisions: 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 Medical Increase the City's contribution toward medical insurance benefits per Insurance employee as follows: Effective Date Monthly Contribution Current $1,225 February 1, 2014 $1,290 January 1, 2015 $1,360 PERS Survivor The City agrees to adopt the 4 1h level of PERS Survivor benefit subject to Benefit employees agreeing to pay the monthly cost of this benefit through payroll deduction and contingent on all other City bargaining units agreeing to this p rovision in their respective contracts. Language The parties have agreed to incorporate several language changes in the new Changes Memorandum of Understanding (MOU) to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes. Said changes are noted in the attached Letter of Understanding (LOU). The Orange Fire Management Association took this to a vote of their membership and ratified the proposal on March 4, 2014. Council approval is required to finalize this agreement in the form of a Letter of Understanding. 7. ATTACHMENTS • Resolution 10775 • Salary Table