SR - RES-10786 - MEMORANDUM UNDERSTANDING PART TIME SEASONAL EMPLOYEESAGENDA ITEM
a May 13, 2014 Meeting
T y
CP 1
TO: Honorable Mayor and
Members of the City Council
THRU: John Sibley,
City Manager
FROM: Steven V. Pham, Huma l'
Resources /Employee J
Relations Director
ReviewedNerified By:
Gen Fund
City Manager
$120,529
Finance Director
To Be Presented By:
�( Cons Calendar
_ City Mgr Rpts
Council Reports
_ Legal Affairs
Boards /Cmtes
Public Hrgs
Admin Reports
Plan /Environ
1. SUBJECT
Resolution No. 10786 - A Resolution of the City Council of the City of Orange Relating to
the Classification, Compensation, and Terms of Employment for Part -Time and Seasonal
Employees of the City of Orange Effective July 1, 2014 Through and Including June 30,
2015 and Repealing Resolution No. 10728 and Amendments Thereto, for Said Employees.
2. SUMMARY
Resolution No. 10786 presents the compensation and terms of employment for the City's
unrepresented Part-Time and Seasonal employees for a one -year period. Details of these terms
are provided under Section 7, "Discussion and Background" below.
3. RECOMMENDED ACTION
Approve Resolution No. 10786. 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
Cost/Savings Description
Gen Fund
Cost for Increased Salaries
$120,529
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community
2. Be a fiscally healthy community
4. Provide outstanding public service
ITEM # -Lag 05/13/2014
6. GENERAL PLAN IMPLEMENTATION
N/A
7. DISCUSSION and BACKGROUND
Employees covered by the City's Part-Time and Seasonal Resolution are considered
unrepresented and therefore do not bargain collectively for salary, benefits, and other terms and
conditions of employment. However, due to the City's economic challenges, the salary rates for
these positions have not been addressed in almost eight (8) years (since June 25, 2006).
The State of California increased the minimum wage from the current $8.00 per hour to $9.00
per hour beginning July 1, 2014 however several of our part-time classifications are currently
paid less than the new minimum wage. Staff is therefore recommending the Council address
salary levels for all of its part-time positions to comply with the new State minimum wage while
ensuring competitive pay rates and protecting against salary compaction between positions.
There are currently 162 part-time and seasonal employees on payroll who are covered by this
Resolution. With a few exceptions, the vast majority of these employees serve in positions that
are either temporary, seasonal (summer only), or part-time with a work schedule of 19 hours per
week or less. The following changes would be implemented if Council approves the attached
Resolution.
• Salaa — Salary ranges will be increased for each classification by a minimum of 5.0% to
a cap of 9.5 %. However, the Parks Maintenance Helper and Parks & Facilities Attendant
classifications, which the City has significant difficulty recruiting and retaining
employees under, are being recommended for an 18.0% increase (from $8.83 per hour to
$10.56 per hour) and a 17% increase (from $10.30 to $12.21 per hour) respectively. Staff
believes these increases will help recruit and retain quality part-time personnel to run
many of the City's Community Services Department programs throughout the year. Staff
also believes these salary adjustments will minimize the extensive staff time and
resources involved in continuously recruiting for these positions.
8. ATTACHMENTS
• Resolution 10786 — Part-Time and Seasonal Employees Salary Resolution
RESOLUTION NO. 10786
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE RELATING TO THE CLASSIFICATION,
COMPENSATION, AND TERMS OF EMPLOYMENT FOR PART -
TIME AND SEASONAL EMPLOYEES OF THE CITY OF
ORANGE EFFECTIVE JULY 1, 2014 THROUGH AND
INCLUDING JUNE 30, 2015 AND REPEALING RESOLUTION NO.
10728 AND AMENDMENTS THERETO, FOR SAID EMPLOYEES.
WHEREAS, the City Council of the City of Orange wishes to set forth the wages, hours and
conditions of employment for July 1, 2014 through June 30, 2015 for the employees described herein,
and
WHEREAS, the City Council has consulted with the City Manager concerning the proposed
employment terms contained herein;
NOW, THEREFORE, be it resolved that wages, hours and conditions of employment be adopted
as follows:
SECTION 1. BASIC COMPENSATION PLAN. There is hereby established a basic
compensation plan for all employees of the City of Orange who are now employed or will in the future
be employed in any of the designated classifications 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. The term "employee(s)" shall refer only to those employees covered by this Resolution.
SECTION 2. SALARY AND WAGE SCHEDULES. Salaries effective June 29, 2014 for
employees covered by this Resolution are listed in Exhibit "A."
SECTION 3. ADMINISTRATION OF BASIC COMPENSATION PLAN. For all employees
who have a regular weekly work schedule of 40 hours, the equivalent hourly rate of pay shall be the
monthly rate times 12 divided by 2,080 annual hours. In determining the hourly rate as herein provided,
compensation shall be made to the nearest '/z cent.
Employees may be considered for advancement to the next higher step upon completion of two
thousand eighty (2,080) hours of service.
SECTION 4. BEGINNING RATES. A new employee in Exhibit "A" of the City shall be paid the
rate shown in Step "A" in the range allocated to the class of employment for which he has been hired,
except that on the request of the department head under whom the employee will serve, and with the
authorization of the Human Resources Director, such employee may be placed in Step "B ", "C ", or "D"
if applicable, depending upon the employee's qualifications.
SECTION 5. SERVICE. The word "service" as used in this Resolution, shall be defined to mean
continuous, part-time service in an employee's present classification, service in a higher classification, or
service in a classification allocated to the same salary range and having generally similar duties and
requirements. A lapse of service by any employee for a period of time longer than 30 days by reason of