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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 i 1 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 2 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. 3 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. 4 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 5 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, 6 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 1