SR - RES-10923 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 20171. SUBJECT
Resolution No. 10923 — A Resolution of the City Council of the City of Orange Establishing a
Letter of Understanding between the City of Orange and the Orange Management Association
Effective July 1, 2015 to June 30, 2017.
2. SUMMARY
Resolution No. 10923 establishes a Letter of Understanding between the City of Orange and the
Orange Management Association effective July 1, 2015 to June 30, 2017.
3. RECOMMENDATION
Approve Resolution No. 10923 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
All Other Funds
Cost of Salary Increase
$20,292
$17,147
Cost for Negotiated Benefits
$15,113
$10,996
Total Annual Cost
$35,405
$28,143
Fiscal Year 2016 -17
Cost Description
General Fund
All Other Funds
Cost of Salary Increase
$76,156
$64,353
Cost for Negotiated Benefits
$47,429
$38,303
Total Annual Cost
$123,585
$102,656
ITEM -3A 1 02/09/16
5. STRATEGIC PLAN GOAL(S)
1. Provide for a safe community.
a. Provide staffing and resources to deliver services that ensure public safety.
2. Be a fiscally healthy community.
a. Expend fiscal resources responsibly.
6. DISCUSSION and BACKGROUND
The Orange Management Association (OMA) is currently comprised of 40 personnel. Beginning
May 2015, representatives from the City and OMA 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 approximately 9 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:
ITEM 2 02/09/16
Provision
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Term of Agreement
Effective July 1, 2015 through June 30, 2017
The MOU shall be amended as follows:
Effective January 24, 2016, the salaries of all unit employees shall
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Salary
effectively increase by 2.5 %.
Effective July 24, 2016, the salaries of all unit employees shall
effectively increase by 1.5 %.
Effective January 1, 2016, the City's contribution toward medical
insurance benefits per employee shall increase by $50.
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Medical Insurance
Effective January 1, 2017, the City's contribution toward medical
insurance benefits per employee shall increase by $50.
Effective July 1, 2015, an employee may convert up to 33% of his
current annual vacation accrual into pay in lieu of time off with pay
on an annual basis for the 2015/16 fiscal year.
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Vacation Conversion
Effective July 1, 2016, an employee may convert up to 33% of his
current annual vacation accrual into pay in lieu of time off with pay
on an annual basis for the 2016/17 fiscal year.
Effective upon execution of this agreement, Article III shall be
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Shift Differential Pay
amended to add the "Recreation Services Supervisor (Sport
Center)" under Section 9.
Workshoe
Effective July 1, 2016, the parties agree to amend Article XIX,
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Section 3 to change the boot allowance from a $450 yearly
Allowance
reimbursement to a $450 yearly stipend.
ITEM 2 02/09/16
7 Language Implement mutually agreed language clean -up to conform MOU to
Cleanup /Other current practices.
The OMA took this to a vote of their membership and ratified the proposal on January 28, 2016.
Council approval is required to finalize this agreement in the form of a Letter of Understanding.
8. ATTACHMENTS
• Resolution No. 10923
• Appendix "A" — Salary Table
NAEconomic Development Files \STAFF REPORTS\2016 \020916f OMA LOU.doc
ITEM 3 02/09/16
RESOLUTION NO. 10923
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ESTABLISHING A LETTER OF
UNDERSTANDING BETWEEN THE CITY OF
ORANGE AND THE ORANGE MANAGEMENT
ASSOCIATION EFFECTIVE JULY 1, 2015
THROUGH JUNE 30, 2017
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
Management Association have met and conferred in accordance with the requirements of
the Meyers - Milias -Brown Act; and
WHEREAS, the City and the Orange Management Association 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 2016.
Teresa E. Smith, Mayor of the City of Orange
ATTEST:
Mary E. Murphy, City Clerk of the City of Orange
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