SR - RES-10804 - MEMORANDUM OF UNDERSTANDING AMENDMENTOf
AGENDA ITEM
July 8, 2014 Meeting
o� c
TO: Honorable Mayor and
Members of the City Council
THRU: John Sibley,
City Manager
FROM: Steven V. Pham, Hu
Resources /Employee Relatio s
Director
ReviewedNeri ed By:
City Manager
Finance Dire or
To Be Present y:
Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes
Public Hrgs
Admin Reports
Plan/Environ
1. SUBJECT
Resolution No. 10804 — A Resolution of the City Council of the City of Orange Amending
Resolution No. 10763 between the City of Orange and the Orange Municipal Employees'
Association.
2. SUMMARY
Resolution No. 10804 amends Resolution No. 10763, the Memorandum of Understanding
between the City of Orange and the Orange Municipal Employees' Association. Details of this
Amendment appear below under the "Discussion and Background" section of this staff report.
F3. RECOMMENDATION
Approve Resolution No. 10804.
4. FISCAL IMPACT
Since Council has already approved the City's FY 2014/15 budget at their June 10, 2014 Council
meeting which included the salary adjustments requested in this staff report, there is no
additional fiscal impact to the budget for adopting this MOU amendment.
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
Human Resources staff, in conjunction with the City Manager's Office, recommended the
following salary adjustments for classifications within the Orange Municipal Employees'
Association (OMEA) MOU be incorporated into the proposed FY 15 budget effective July 1,
2014.
ITEM B 1 07/08/2014
1. Lead Finance Clerk. This position was scheduled to be compensated at salary range 502
effective July 1, 2014 however the salary range for this position has not kept pace with
the salary levels for subordinate positions. When this position was first created as a
Finance Technician in 1999, the salary was tied to 20% above their subordinate Senior
Finance Clerk salary. However, salary inequity adjustments for the Senior Finance Clerk
over the years started chipping away at the pay differential between this Lead Finance
Clerk and Senior Finance Clerk thus creating some salary compaction. The position was
reclassified from "Finance Technician" to "Lead Finance Clerk" as part of a City -wide
classification study adopted in 2009 however the salary level for the reclassification was
never addressed. Currently, the Lead Finance Clerk position is paid just 12% higher than
the Senior Finance Clerk, rather than 20% higher. HR staff, along with the Finance
Department, proposed the Lead Finance Clerk position receive the full 8% salary
increase to be compensated at range 518 in the Orange Municipal Employees Association
MOU to re- establish the 20% pay differential between the Lead Finance Clerk and Senior
Finance Clerk classes. The fiscal impact for this action is $5,916 for one full time
position.
2. Payroll Technician. This position was also scheduled to be compensated at salary range
502 effective July 1, 2014 however the salary range for this position is tied to the same
rate as the Lead Finance Clerk position. In conjunction with the action described in #1
above, the salary range for this position is being recommended for an 8% salary increase
as well to maintain the proper compensation level commensurate with the responsibility
and qualification levels required by the Lead Finance Clerk classification. The fiscal
impact for this action is $18,078 for three (3) full time positions.
3. Recreation Services Coordinator. This position was scheduled to be compensated at
salary range 470 effective July 1, 2014, however HR staff, in conjunction with the
Community Services Department, believed this position was working at a responsibility
level equivalent to that of a Parks Maintenance Leadworker. The Leadworker
classification will be compensated at range 497 effective July 1, which represents a
13.5% salary differential above Recreation Services Coordinator. Therefore staff is
proposing the Recreation Services Coordinator positions receive the full 13.5% salary
increase and be compensated at range 497. The fiscal impact for this action is $41,899
for 4.48 FTE positions.
4. Library Volunteer Coordinator. The incumbent Library Assistant serving as the
Volunteer Coordinator has been reclassified to Library Volunteer Coordinator in the FY
2014/15 budget. In addition to this reclassification, HR and Library Management are
recommending a salary adjustment of 5.0% for this classification. A similar position
within the Orange Police Department, Police Volunteer Coordinator, will be
compensated at range 509 effective June 29, 2014, which is 26.5% higher than the
Library's Volunteer Coordinator. While the position in Police has a long successful
history with a compensation level commensurate with other similar positions within the
Police Department, the position in Library was created within the past 2 years at a lower
level due to budgetary constraints. Staff is now recommending a 5.0% salary increase for
the Library position. The fiscal impact for this action is $5,180 for one full time position.
The total cost to implement these actions of $71,921 was already incorporated into the City's
proposed FY 2014/15 budget that Council adopted on June 10, 2014. However, the updated
salary table for these positions needs to be authorized by the City Council in a published salary
table for the salary to be considered pension- reportable according to CalPERS Retirement Law.
7. ATTACHMENTS
• Resolution 10804
• Updated OMEA Salary Table
RESOLUTION NO. 10804
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING RESOLUTION NO.
10763 BETWEEN THE CITY OF ORANGE AND THE
ORANGE MUNICIPAL EMPLOYEES' ASSOCIATION
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
Municipal Employees' Association, hereinafter referred to as "OMEA" has an existing
labor contract (i.e., "Memorandum of Understanding" or "MOU ") in effect through June
30, 2015; and
WHEREAS, the following classifications which are contained within the OMEA
MOU have been proposed by City staff for salary adjustments effective June 29, 2014:
➢ Lead Finance Clerk = 8.0% increase
➢ Library Volunteer Coordinator = 5.0% increase
➢ Payroll Technician = 8.0% increase
➢ Recreation Services Coordinator = 13.5% increase; and
WHEREAS, the $71,921 cost to implement these salary increases was included
in the City's proposed FY 2014/15 budget; and
WHEREAS, the City Council authorized these salary adjustments at their June
10, 2014 Council meeting when the Council adopted the City's FY 2014/15 budget; and
WHEREAS, the new salary table for these positions must be authorized by the
City Council and published by the City in order for the salary ranges to be considered
pension- reportable, pursuant to Ca1PERS law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange that the attached updated OMEA salary table effective June 29, 2014 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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