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
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Legal Affairs
Resources /Employee Re ns
Boards /Cmtes
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Director
Admin Reports
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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