SR - RES-11030 - LETTER OF UNDERSTANDING EFFECTIVE JULY 1 2017 TO DECEMBER 31 20191. SUBJECT
Resolution No. 11030 — 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, 2017 to December 31, 2019.
2. SUMMARY
Resolution No. 11030 establishes a Letter of Understanding between the City of Orange and the
Water Division Employees' Association effective July 1, 2017 to December 31, 2019. Details of
this agreement are provided under Section 6, "Discussion and Background" below.
3. RECOMMENDED ACTION
Approve Resolution No. 11030.
4. FISCAL IMPACT
Costing Summa :
Fiscal Year 2017 -18
Cost Description
Water Fund
Cost of One -Time Lump Sum Payments
$33,500
Cost for Negotiated Benefits
$23,800
Total Annual Cost
$57,300
Fiscal Year 2018 -19
Cost Description
Water Fund
Cost of One -Time Lump Sum Payments
$33,500
Cost for Negotiated Benefits
$46,300
Total Annual Cost
$79,800
Fiscal Year 2019 -20
Cost Description
Water Fund
Cost of One -Time Lump Sum Payments
$16,700
Cost for Negotiated Benefits
$57,500
Total Annual Cost
$74,200
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 March 2017, the City began the collective bargaining process with the Water Division
Employees' Association. The prior contract between the parties expired on June 30, 2017. On
October 10, 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 I Effective July 1, 2017 through December 31, 2019
ITEM 2 10/24/17
ITEM 3 10/24/17
Effective October 20, 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 ". The lump -sum payment is equal to approximately
2% of top -step for each classification in October 2017 and July
2018, and approximately 1% of top -step for each classification in
July 2019.
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
Salary
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 WDEA. 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).
If OMEA, OMA, and/or OMCEA 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 MOU, then this unit shall receive the same.
Modify Article XVI, Section 1B of the MOU to provide that the
City's contribution shall be increased by $75 effective January 1,
2018 and increased by an additional $75 effective January 1,
2019.
Medical Insurance
Insurance
Effective 1 2-Party Family Waiver
Current $845 $1,220 $1,445 $845
January 1, 2018 $920 $1,295 $1,520 $920
January 1, 2019 $995 $1,370 $1,595 $995
ITEM 3 10/24/17
ITEM 4 10/24/17
Effective July 1, 2017, an employee may convert up to 50% of
his/her current annual vacation accrual into cash in lieu of time
off with pay during the 2017 -2018 fiscal year. An employee
requesting such a conversion must meet the eligibility
requirements as set forth in Section 1, and may so convert twice
during the 2017 -2018 fiscal year.
Effective July 1, 2018, an employee may convert up to 50% of
his /her current annual vacation accrual into cash in lieu of time
off with pay during the 2018 -2019 fiscal year. An employee
Vacation Conversion
requesting such a conversion must meet the eligibility
requirements as set forth in Section 1, and may so convert twice
during the 2018 -2019 fiscal year.
Effective July 1, 2019, an employee may convert up to 50% of
his /her current annual vacation accrual into cash in lieu of time
off with pay during the 2019 -2020 fiscal year. An employee
requesting such a conversion must meet the eligibility
requirements as set forth in Section 1, and may so convert twice
during the 2019 -2020 fiscal year.
Effective July 1, 2017, the parties agree to amend Article XVII,
Section 4 to provide as follows:
The City agrees to allow reimbursement to employees of up to
$375.00 of the $600.00 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
Educational/ Wellness
Resources Director.
Reimbursement
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.
ITEM 4 10/24/17
ITEM 5 10/24/17
Effective October 1, 2017, amend Article X, Section 13, to
provide as follows:
SECTION 10. Standby Pay. Employees, assigned by
Management to standby status after their regular work hours, will
Standby Pay
receive two (2) hours per day (Monday through Friday) of standby
pay at their straight time hourly rate, or three (3) hours per day for
Saturdays, Sundays, Holidays, days where the City closes services
(i.e., Holiday Closure), and regular days off (i.e., the employee's
scheduled Friday off as part of the 9/80 schedule). Employees
must be capable of performing all duties that would be required if
called back to work.
Effective upon execution of this agreement, Article III, Section 12
shall be amended as follows:
The Public Works — Water Division shall establish special
assignments as Crane Operators. Public Works Water Division
employees covered by the terms and conditions of this agreement
may be so assigned at the discretion of the Department Head or
Special Assignment, Crane
designee. Water Division personnel so assigned and performing
Operator
these and related duties shall receive $50 per month during the
period of such special assignment. An employee who possesses a
crane operator certification, but is not so assigned, will not
receive this special assignment pay. This form of compensation,
also referred to as "Heavy /Special Equipment Operator Premium"
shall be reported to CalPERS as special compensation and
therefore compensation earnable pursuant to California Public
Employees' Retirement System (PERS) Regulations, Section
571(a)(4).
ITEM 5 10/24/17
The Association took this to a vote of their membership and ratified the proposal on October 10,
2017. Council approval is required to finalize this agreement in the form of a Letter of
Understanding.
ITEM 6 10/24/17
Effective upon execution of this agreement, Article XII, Section 1
shall be amended as follows:
SECTION 1. Vacation Accrual. All full -time, regular
employees accrue paid vacation in accordance with the following
Vacation Accrual Chart:
After Year(s) Vacation Hours
of service Per Year
1 80
2 96
3 104
4 112
Vacation
5 through 10 120
11 128
12 136
13 144
14 152
15 160
16 164
17 168
18 172
19 176
20 180
21 184
22 188
23 192
24 or more 200
Implement mutually agreed language clean -up to conform MOU
Language Cleanup /Other
to current practices or agreements.
Except as specifically provided and amended herein, the terms
and conditions of the MOU shall govern the provisions of wages,
salaries and other benefits for all covered employees. This LOU
Status of MOU
shall not be interpreted to extend and/or limit any other rights,
benefits, or compensation of either party except as specifically
provided herein and both this LOU and the New MOU shall
expire on December 31, 2019.
The Association took this to a vote of their membership and ratified the proposal on October 10,
2017. Council approval is required to finalize this agreement in the form of a Letter of
Understanding.
ITEM 6 10/24/17
7. ATTACHMENTS
• Resolution No. 11030 (Letter of Understanding) — Exhibit "A"
• Lump Sum Allocation Table — By Classification — Appendix "A"
ITEM 7 10/24/17
RESOLUTION NO. 11030
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,
2017 THROUGH DECEMBER 31, 2019
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Water
Division Employees' Association have met and conferred in accordance with the
requirements of the Meyers - Milias -Brown Act; and
WHEREAS, the City and the Water Division 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 _day of October 2017.
Teresa E. Smith, Mayor of the City of Orange
ATTEST:
Mary E. Murphy, City Clerk of the City of Orange
1
8311880.1 OR020 -068
CITY COUNCIL MINUTES OCTOBER 24, 2017
3. CONSENT CALENDAR (Continued)
3.20 Approval of the submittal of funding applications to the Orange County
Transportation Authority. Resolution No. 11027. (T2200.0)
A Resolution of the City Council of the City of Orange approving the submittal of funding
applications to the Orange County Transportation Authority for funding under the
comprehensive transportation funding program.
ACTION: Approved Resolution No. 11027.
3.21 Letter of Understanding between the City of Orange and the Orange Management
Association (OMA) effective July 1, 2017, to December 31, 2019. Resolution No.
11029. (C2500.J.4.2.1)
A Resolution of the City Council of the City of Orange establishing a Letter of
Understanding between the City of Orange and the Orange Management Association
(OMA) effective July 1, 2017, to December 31, 2019.
ACTION: Approved Resolution No. 11029.
3.22 Letter of Understanding between the City of Orange and the Orange Water Division
Employees' Association effective July 1, 2017, to December 31, 2019. Resolution No.
11030. (C2500.J.4.4.1)
A Resolution of the City Council of the City of Orange establishing Letter of
Understanding between the City of Orange and the Orange Water Division Employees'
Association effective July 1, 2017, to December 31, 2019.
ACTION: Approved Resolution No. 11030.
3.23 Letter of Understanding between the City of Orange and the Orange Maintenance
and Crafts Employees' Association (OMCEA) effective July 1, 2017, to December 31,
2019. Resolution No. 11035. (C2500.J.4.4)
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, 2017, to December 31, 2019.
ACTION: Approved Resolution No. 11035.
3.24 Letter of Understanding between the City of Orange and the Orange City Fire
Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO
effective July 1, 2017, to June 30, 2019. Resolution No. 11036. (C2500.J.4.3)
A Resolution of the City Council of the City of Orange establishing a Letter of
Understanding between the City of Orange and the Orange City Fire Fighters, Inc. Local
2384 of the International Association of Fire Fighters, AFL -CIO effective July 1, 2017, to
June 30, 2019.
ACTION: Approved Resolution No. 11036.
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