SR - RES-10924 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 2017Gti �.�c�POS 1 �! 1 'G�
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AGENDA ITEM
February 9, 2016
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Wayne W. Win
City Attorney
Steven V. P.
Human Resources/Em
ReviewedNerified y :
Cost Description
City Manager
All Other Funds
Finance Direct r
$64,242
To Be Presente
Cost for Negotiated Benefits
Wayne Winthers
$13,600
X Cons Calendar
City Mgr Rpts
Council Reports
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan /Environ
Relations Director
1. SUBJECT
Resolution No. 10924 — A Resolution of the City Council of the City of Orange Establishing a
Letter of Understanding between the City of Orange and the Orange Municipal Employees'
Association Effective July 1, 2015 to June 30, 2017.
2. SUMMARY
Resolution No. 10924 establishes a Letter of Understanding between the City of Orange and the
Orange Municipal Employees' Association effective July 1, 2015 to June 30, 2017.
3. RECOMMENDATION
Approve Resolution No. 10924 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
$64,242
$19,189
Cost for Negotiated Benefits
$45,532
$13,600
Total Annual Cost
$109,774
$32,789
Fiscal Year 2016 -17
Cost Description
General Fund
All Other Funds
Cost of Salary Increase
$238,980
$71,383
Cost for Negotiated Benefits
$177,633
$53,059
Total Annual Cost
$416,613
$124,442
ITEM 3, t& 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 Municipal Employees' Association (OMEA) is currently comprised of 137 personnel.
Beginning May 2015, representatives from the City and OMEA 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
Description
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 July 1, 2015, the parties agree to amend Article XVII,
Educational
Section 3 to provide an increase to $475 (up from $200) of $1,250
5
Reimbursement
educational reimbursement shall be available "for activities that aid
in their professional development."
ITEM 2 02/09/16
The Association 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. 10924
• Appendix "A" — Salary Table
NAEconomic Development Files \STAFF REPORTS\2016 \020916g_OMEA LOU.doc
ITEM 3 02/09/16
The parties agree to amend Article X, Section 1 to include
clarification that any paid leave hours used during the
6
Overtime
Christmas/New Year's Holiday Closure shall count as hours
worked for purposes of computation of overtime.
7
Shift Differential Pay
Effective upon execution of this agreement, Article III shall be
amended to add Recreation Services Coordinator under Section 9.
Language
Implement mutually agreed language clean -up to conform MOU to
8
Cleanup /Other
current practices.
The Association 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. 10924
• Appendix "A" — Salary Table
NAEconomic Development Files \STAFF REPORTS\2016 \020916g_OMEA LOU.doc
ITEM 3 02/09/16
RESOLUTION NO. 10924
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE ESTABLISHING A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ORANGE AND THE ORANGE
MUNICIPAL EMPLOYEES' ASSOCIATION EFFECTIVE JULY 1,
2015 THROUGH JUNE 30, 2017
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
Municipal Employees' Association have met and conferred in accordance with the
requirements of the Meyers - Milias -Brown Act; and
WHEREAS, the City and the Orange Municipal Employees' 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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