SR - RES-11023 - LETTER OF UNDERSTANDING JULY 1 2017 THROUGH DECEMBER 31 20191. SUBJECT
Resolution No. 11023 — 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 (OMEA) Effective July 1, 2017 to December 31, 2019.
2. SUMMARY
Resolution No. 11023 establishes a Letter of Understanding between the City of Orange and the
Orange Municipal Employees' Association effective July 1, 2017 to December 31, 2019. Details
of this agreement are provided under Section 7, "Discussion and Background" below.
1 3. RECOMMENDATION
Approve Resolution No. 11023.
4. FISCAL IMPACT
Costing Summar :
Fiscal Year 2017 -18
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$134,200
$33,500
Cost for Negotiated Benefits
$37,000
$9,200
Total Annual Cost
$171,200
$42,700
Fiscal Year 2018 -19
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$134,200
$33,500
Cost for Negotiated Benefits
$90,300
$22,600
Total Annual Cost
$224,500
$56,100
Fiscal Year 2019 -20
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$67,100
$16,800
Cost for Negotiated Benefits
$106,400
$26,600
Total Annual Cost
$173,500
$43,400
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
In February 2017, the City began the collective bargaining process with the Orange Municipal
Employees' Association. The prior contract between the parties expired on June 30, 2017. On
August 1, 2017, the parties reached agreement on the terms and conditions of a new two and a
half -year labor contract that includes the following:
Term of Agreement Effective July 1, 2017 through December 31, 2019
Salary
• Effective the pay period ending August 19, 2017, the first full
pay period in July 2018, and the first full pay period in July
2019, employees shall receive lump -sum payments in
accordance with the Schedule attached as Appendix "A ".
• Only employees that are active (employed by the City) during
the pay period that a lump -sum payment is to be made are
eligible for such payments. Payments will be according to the
classification the member is in at the time the lump -sum
payment is made. Members in an acting position at the time of
the lump -sum payment will receive the amount for their acting
classification, regardless of whether their acting classification
is within OMEA. Part-time, benefitted employees will receive
a pro -rata share equivalent to their FTE classification in payroll
at the time of the payment (e.g., a 25 -hour employee will
receive 62.5% of the lump sum amount — 25 -hour employees
are a 0.625 FTE).
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8246957.1 OR020 -066
• If OMA, OMCEA, and /or WDEA receive any increase in
salary, including base salary, lump sum payments, and /or step
increases, and /or medical insurance greater than this unit in the
fiscal years covered by the New MOU, then this unit shall
receive the same.
Medical Insurance
Increase the City's contribution toward medical insurance benefits per
employee as follows:
• Effective the first pay period starting in January 2018, the
City's contribution toward medical insurance benefits per
employee shall increase by $50.
• Effective the first pay period starting in January 2019, the
City's contribution toward medical insurance benefits per
employee shall increase by $50.
Vacation Conversion
Employees shall be allowed to convert up to 50% of current annual
vacation accrual into cash in lieu of time off with pay for the 17/18,
18/19, and 19/20 Fiscal Years. Employees may convert annual
vacation accrual twice each applicable year (and no more than 50%
total each applicable year).
Educational/Wellness
Reimbursement
Effective July 1, 2017, the parties agree to amend Article XVII, to add
a new Section 4 to provide as follows:
The City agrees to allow reimbursement to employees of up to $375 of
the $1,250.00 allotted per fiscal year towards reimbursement for items
1, 2 and /or 3 below. Requests must be approved, prior to purchase or
participation, by the Human Resources Director.
1) Membership in a health/fitness club.
2) Participation in a weight loss /stop
smoking /wellness /fitness program.
3) Fitness equipment (home gym equipment).
The City will not reimburse employees for any of the above listed
activities for family/dependent health related expenses.
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8246957.1 OR020 -066
Vacation Accrual
Unit employees shall accrue vacation hours according to the following
table:
Years of
Service
Hours
Years of
Service
Hours
Years of
Service
Hours
Years of
Service
Hours
1
80
8
120
15
160
22
188
2
96
9
120
16
164
23
192
3
104
10
120
17
168
24
200
4
112
11
128
18
172
25<
200
5
120
12
136
19
176
6
120
13
144
20
180
7
120
1 14
152
21
184
Language Changes
The parties have agreed to incorporate several language changes in the
new Memorandum of Understanding (MOU) to further clarify existing
MOU provisions. There is no additional fiscal impact for these
language changes. Said changes are noted in the attached Letter of
Understanding (LOU).
7. ATTACHMENTS
• Resolution No. 11023 (Letter of Understanding) — Exhibit "A"
• Lump Sum Allocation Table — By Classification — Appendix "A"
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8246957.1 OR020 -066
RESOLUTION NO. 11023
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,
2017 THROUGH DECEMBER 31, 2019
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, 2017 through December 31, 2019; 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 8 day of August 2017.
Teresa E. Smith, Mayor of the City of Orange
ATTEST:
Mary E. Murphy, City Clerk of the City of Orange