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SR - RES-10924 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 2017Gti �.�c�POS 1 �! 1 'G� a 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 1