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SR - RES-10888 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 2017AGENDA ITEM October 13, 2015 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Wayne W. Winthers City Attorney Steven V. TIFa Human Resources/Em 1. SUBJECT ReviewedNerified B Cost Description City Manager Cost of Salary Increase Finance Director Cost for Negotiated Benefits To Be Presented By: Total Annual Cost Wayne Winthers X Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards /Cmtes _ Public Hrgs Admin Reports Plan /Environ Relations Director Resolution No. 10888 — 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 Association (COPA) Effective July 1, 2015 to June 30, 2017. 2. SUMMARY Resolution No. 10888 establishes a Letter of Understanding between the City of Orange and the City of Orange Police Association (COPA) effective July 1, 2015 to June 30, 2017. 3. RECOMMENDATION Approve Resolution No. 10888 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 Costing Summary: Fiscal Year 2015 -16 Cost Description General Fund Cost of Salary Increase $352,652 Cost for Negotiated Benefits $194,685 Total Annual Cost $547,337 Fiscal Year 2016 -17 Cost Description General Fund Cost of Salary Increase $1,014,291 Cost for Negotiated Benefits $592,123 Total Annual Cost $1,606,424 ITEM Z5. 51a 1 10/13/15 5. STRATEGIC PLAN GOAL(S) 1. Provide for a safe community b. Provide and maintain infrastructure necessary to ensure the safety of the public. 3. Enhance and promote quality of life in the community d. Maintain and improve multi -modal transportation throughout the City. 6. GENERAL PLAN IMPLEMENTATION Economic Development Goal 2.0: Cultivate a business environment that is conducive and appealing to the commercial and retail industry, including smaller entrepreneurs. Policy 2.4: Maintain adequate infrastructure, transportation systems, and physical conditions that encourage retailers to invest in the City. 1 7. DISCUSSION and BACKGROUND The City of Orange Police Association ( "COPA ") is currently comprised of 112 Police Officers and 50 benefited non -sworn personnel. Beginning May 2015, representatives from the City and COPA 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, 2015. After five months of contract negotiations, the parties reached agreement on the terms and conditions of a new two -year labor contract that includes the following provisions: 1 Provision Term of Agreement Description Effective July 1, 2015 through June 30, 2017 The MOU shall be amended as follows: Effective November 1, 2015, the salaries of unit employees (sworn) shall effectively increase by 3 %. Effective October 4, 2015, the salaries of unit employees (non- 2 Salary sworn) shall effectively increase by 2 %. Effective August 7, 2016, the salaries of unit employees (sworn) shall effectively increase by 3 %. Effective June 26, 2016, the salaries of unit employees (non -sworn) shall effectively increase by 2 %. Effective January 1, 2016, the City's contribution toward medical insurance benefits per employee shall increase by $50. 3 Medical Insurance Effective January 1, 2017, the City's contribution toward medical insurance benefits per employee shall increase by $50. ITEM 2 10/13/15 COPA took this to a vote of their membership and ratified the proposal on October 1, 2015. Council approval is required to finalize this agreement in the form of a Letter of Understanding. 8. ATTACHMENTS • Resolution No. 10888 • Exhibit 1 — Salary Table NA\Economic Development Files \STAFF REPORTS\2015 \101315a_COPA.doc ITEM 3 10/13/15 Effective July 1, 2015, the City shall provide 130 hours (up from 110 hours) of Association release time each year for use by the Association President or designated members to attend Association 4 Release Time related training, seminars, or other lawful association related business. Release time shall be approved by the Police Chief and shall not be unreasonably withheld. Any unused hours provided by the City shall be rolled over from one fiscal year to the next, provided that the total shall not exceed 260 hours. 5 Hearing Officer Effective October 4, 2015, the City shall provide that the entire cost of the Hearing Officer shall be borne by the City. Industrial Disability Effective October 4, 2015, the sick leave payout shall be extended 6 Retirement to industrial disability retirement on same terms as service retirement. Amend Article XV, Section to add the word "Spouse" under Section 7A2 as follows: 7 Bereavement Leave "any parent, substitute parent, parent -in -law, grand parent, aunt, uncle, spouse, child, brother, sister, domestic partner, the employee's or spouse 's /domestic partner's child, grandchild, parent, substitute parent, grandparent, sibling, aunt, or uncle." The parties agree to amend Article VI, Section 9 to include 8 Overtime clarification about non -FLSA overtime worked under such circumstances. The City shall provide that police officers assigned as a Detective or Investigator/Rotator, and civilian employees assigned as a Civilian Investigative Officer (CIO), shall receive a clothing allowance 9 Clothing Allowance while so assigned in an amount of $500.00 per fiscal year; these employees are allocated 2 uniforms per fiscal year consisting of 2 pants and 2 shirts. If the employee elects to take the $500 clothing allowance, he /she will not be entitled to the 2 uniforms for that fiscal year. Travel Expenses The parties agree to add clarification to provide the employee with 10 allowed his or her own hotel room when an employee is required to remain at an out of town location for an entire day. 11 Language Implement mutually agreed language clean -up to conform MOU to Cleanup /Other current practices. COPA took this to a vote of their membership and ratified the proposal on October 1, 2015. Council approval is required to finalize this agreement in the form of a Letter of Understanding. 8. ATTACHMENTS • Resolution No. 10888 • Exhibit 1 — Salary Table NA\Economic Development Files \STAFF REPORTS\2015 \101315a_COPA.doc ITEM 3 10/13/15 RESOLUTION NO. 10888 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 ASSOCIATION EFFECTIVE JULY 1, 2015 THROUGH JUNE 30, 2017 WHEREAS, the City of Orange, hereinafter referred to as "City," and the City of Orange Police Association, hereinafter referred to as "COPA" have met and conferred in accordance with the requirements of the Meyers - Milias -Brown Act; and WHEREAS, the City and COPA have reached agreement on wages, salaries, and other terms and conditions of employment effective July 1, 2015 through June 30, 2017; 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 2015. Teresa E. Smith, Mayor of the City of Orange ATTEST: Mary E. Murphy, City Clerk of the City of Orange 1