SR - RES-10785 - LETTER OF UNDERSTANDING JULY 1 2013 TO JUNE 30 2015AGENDAITEM
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a May 13, 2014 Meeting
TO: Honorable Mayor and
Members of the City Council
THRU: John Sibley,
City Manager
FROM: Steven V. Pham, H �..
Resources /Employee Re ations
Director
ReviewedNerified
Gen Fund
City Manager
$87,416
Finance Directo
$87,416
To Be Presented By:
$320,626
Cons Calendar _
City Mgr Rpts
--- Reports _
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. 10785 — A Resolution of the City Council of the City of Orange Establishing
a Letter of Understanding between the City of Orange and the City of Orange Police
Management Association Effective July 1, 2013 through June 30, 2015.
2. SUMMARY
Resolution No. 10785 establishes a Letter of Understanding between the City of Orange and the
City of Orange Police 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. 10785 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
$87,416
Total Annual Cost
$87,416
FISCAL YEAR 2014/15
Cost Description
Gen Fund
Cost for Salary Increase
$169,818
Cost for Negotiated Benefits
$150,808
Total Annual Cost FY 2014/15
$320,626
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community
ITEM 3. 1 05/13/2014
2. Be a fiscally healthy community
3. Provide outstanding public service
6. DISCUSSION and BACKGROUND :1
The City of Orange Police Management Association is currently comprised of 30 personnel.
Beginning December 2013, representatives from the City and the Association began the
collective bargaining process to negotiate the terms and conditions of a new labor agreement.
On April 17, 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
Two years: 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 $1,270
May 1, 2014 $1,335
January 1, 2015 $1,405
Vacation
Employees may convert up to 25% of their annual vacation accrual into
Conversion
cash during the 2013/14 fiscal year. Employees may convert up to 33% of
their annual vacation accrual into cash during the 2014 /15 fiscal year.
PERS Survivor
The City agrees to adopt the 4 level of PERS Survivor benefit subject to
Benefit
employees agreeing to pay the $2.00 monthly cost of this benefit through
payroll deduction and contingent on all other City bargaining units agreeing
to this provision in their respective contracts.
SWAT
Effective May 1, 2014, Police Lieutenants and Police Sergeants assigned to
Assignment Pay
the SWAT team shall receive an additional $200.00 per month in addition
to their regular salary for the duration of this assignment. This only applies
to 2 Lieutenants and 4 Sergeants.
Language
The parties have agreed to incorporate several language changes in the new
Changes
Memorandum of Understanding (MOU) to further clarify existing MOU
p rovisions. There is no additional fiscal impact for these language changes.
The City of Orange Police Management Association took this to a vote of their membership and
ratified the proposal on April 22, 2014. Council approval is required to finalize this agreement
in the form of a Letter of Understanding.
7. ATTACHMENTS
• Resolution 10785
• Salary Table
RESOLUTION NO. 10785
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ESTABLISHING A LETTER OF
UNDERSTANDING BETWEEN THE CITY OF
ORANGE AND THE CITY OF ORANGE POLICE
MANAGEMENT ASSOCIATION EFFECTIVE JULY
1, 2013 THROUGH JUNE 30, 2015
WHEREAS, the City of Orange, hereinafter referred to as "City," and the City of
Orange Police Management Association have met and conferred in accordance with the
requirements of the Meyers- Milias -Brown Act; and
WHEREAS, the City and the City of Orange Police Management Association
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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