SR - RES-10932 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 2017aP o �
�i/N7Y C
AGENDA ITEM
May 10, 2016
ReviewedNerified B
Cost Description
City Manager
Finance Dire for
Cost of Salary Increase
To Be Presente y:
$8,689
Wayne Winthers
X Cons Calendar
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes _
Public Hrgs
Admin Reports
Plan /Environ
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Wayne W. Winthers�p
City Attorney
Steven V. Pham
Human Resources mployee Relations Director
1. SUBJECT
Resolution No. 10932 — A Resolution of the City Council of the City of Orange Establishing a
Letter of Understanding between the City of Orange and the Orange Maintenance and Crafts
Employees' Association Effective July 1, 2015 to June 30, 2017.
2. SUMMARY
Resolution No. 10932 establishes a Letter of Understanding between the City of Orange and the
Orange Maintenance and Crafts Employees' Association effective July 1, 2015 to June 30, 2017.
13. RECOMMENDATION
Approve Resolution No. 10932 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
$8,483
$8,689
Cost for Negotiated Benefits
$6,408
$6,563
Total Annual Cost
$14,891
$15,252
Fiscal Year 2016 -17
Cost Description
General Fund
All Other Funds
Cost of Salary Increase
$59,342
$60,783
Cost for Negotiated Benefits
$51,697
$52,952
Total Annual Cost
$111,039
$113,735
ITEM 01" 1 5/10/16
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 Maintenance and Crafts Employees' Association ( OMCEA) is currently comprised of
50 personnel. Beginning May 2015, representatives from the City and OMCEA 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 11 months of contract
negotiations, including impasse, mediation and factfinding, the parties reached agreement on the
terms and conditions of a new two -year labor contract that includes the following provisions:
ITEM 2 5/10/16
Provision
Description
1
Term of Agreement
Effective July 1, 2015 through June 30, 2017
The MOU shall be amended as follows:
Effective April 17, 2016, the salaries of all unit employees shall
2
Salary
effectively increase by 2 %.
Effective June 26, 2016, the salaries of all unit employees shall
effectively increase by 2 %.
Effective April 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 add Article XVII,
Educational
Section 3 to allow up to $375 of the $750 educational
5
Reimbursement
reimbursement to be available "for activities that aid in their
professional development."
ITEM 2 5/10/16
The Association took this to a vote of their membership and ratified the proposal on April 27, 2016.
Council approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENTS
• Resolution No. 10932
Appendix "A" — Salary Table
ITEM 3 5/10/16
The parties agree to amend Article X, Section 1 to include
clarification that Fatigue pay and any paid leave hours used during
6
Overtime
the Christmas/New Year's Holiday Closure shall count as hours
worked for purposes of computation of overtime.
Safety Shoe
Effective July 1, 2016, the parties agree to amend Article XIX,
7
Section 3 to change the Safety Shoe allowance from a $450 yearly
Allowance
reimbursement to a $450 yearly stipend.
The City shall extend the current public works fatigue pay policy to
8
Fatigue Pay Policy
p ublic works employees within the OMCEA group.
Language
Implement mutually agreed language clean -up to conform MOU to
9
Cleanup/Other
current practices.
The Association took this to a vote of their membership and ratified the proposal on April 27, 2016.
Council approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENTS
• Resolution No. 10932
Appendix "A" — Salary Table
ITEM 3 5/10/16
RESOLUTION NO. 10932
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ESTABLISHING A LETTER OF
UNDERSTANDING BETWEEN THE CITY OF
ORANGE AND THE ORANGE MAINTENANCE
AND CRAFTS EMPLOYEES' ASSOCIATION
EFFECTIVE JULY 1, 2015 THROUGH JUNE 30, 2017
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
Maintenance and Crafts Employees' Association have met and conferred in accordance
with the requirements of the Meyers - Milias -Brown Act; and
WHEREAS, the City and the Orange Maintenance and Crafts 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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