SR - RES-10933 - LETTER OF UNDERSTANDING JULY 1 2015 TO JUNE 30 2017AGENDA ITEM
May 10 2016
�n
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Wayne W. Winthers 144-1
City Attorney
Steven V. Pham
Human Resources/Employee Relations Director
ReviewedNerifie
Cost Description
City Mana r
Cost of Salary Increase
Finance Di ector
Cost for Negotiated Benefits
To Be Presented By:
Total Annual Cost
Wayne Winthers
X Cons Calendar
_ City Mgr Rpts
Council Reports
_ Legal Affairs
Boards /Cmtes
_ Public Hrgs
Admin Reports
Plan/Environ
1. SUBJECT
Resolution No. 10933 — A Resolution of the City Council of the City of Orange Establishing a
Letter of Understanding between the City of Orange and the Water Division Employees'
Association Effective July 1, 2015 to June 30, 2017.
2. SUMMARY
Resolution No. 10933 establishes a Letter of Understanding between the City of Orange and the
Water Division Employees' Association effective July 1, 2015 to June 30, 2017.
3. RECOMMENDATION
Approve Resolution No. 10933 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
Water Fund
Cost of Salary Increase
$6,677
Cost for Negotiated Benefits
$6,231
Total Annual Cost
$12,908
Fiscal Year 2016 -17
Cost Description
Water Fund
Cost of Salary Increase
$64,100
Cost for Negotiated Benefits
$42,362
Total Annual Cost
$106,462
ITEM �3k 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 Water Division Employees' Association (WDEA) is currently comprised of 22 personnel.
Beginning May 2015, representatives from the City and WDEA 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
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 $300 of the $600 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. 10933
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.
The parties agree to amend Article XI, Section 6 to add an
7
Holiday Pay
employee shall receive two and one -half pay for all hours worked
on Inde endence day, Thanksgiving and Christmas.
The parties agree to amend Article XIV, Section 2 to clarify that a
full -time employee who works a rotating schedule, who is
8
Jury Duty
summoned for jury duty, shall be placed on a day -shift until jury
duty has concluded; the employee will be excluded from overtime
opportunities while performing jury duty.
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. 10933
Appendix "A" — Salary Table
ITEM 3 5/10/16