SR - RES-11035 - LETTER OF UNDERSTANDING EFFECTIVE JULY 1 2017 TO DECEMBER 31 20191. SUBJECT
Resolution No. 11035 — 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.
2. SUMMARY
Resolution No. 11035 establishes 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. Details of this agreement are provided under Section 6, "Discussion and Background"
below.
3. RECOMMENDED ACTION
Approve Resolution No. 11035.
4. FISCAL IMPACT
Costing Summary:
Fiscal Year 2017 -18
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$33,500
$31,800
Cost for Negotiated Benefits
$21,400
$20,300
Total Annual Cost
$54,900
$52,100
Fiscal Year 2018 -19
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$33,500
$31,800
Cost for Negotiated Benefits
$44,600
$42,300
Total Annual Cost
1 $78,100
1 $74,100
Reviewed/Verified B
City Manager
Finance Direc
To Be Presented By:
X Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Cmtes _
Public Hrgs
Plan /Environ
Fiscal Year 2019 -20
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$16,700
$15,900
Cost for Negotiated Benefits
$56,200
$53,400
Total Annual Cost
$72,900
$69,300
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
ITEM 2 10/24/17
8312399.1 OR020 -071
In March 2017, the City began the collective bargaining process with the Orange Maintenance and
Crafts Employees' Association. The prior contract between the parties expired on June 30, 2017. On
September 19, 2017, the parties reached agreement on the terms and conditions of a new two and a
half year labor contract that includes the following:
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 I% of top -step for each classification in July 2019.
Salary
Medical Insurance
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 OMCEA. 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 OMA, OMEA, 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.
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.
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
8312399.1 OR020 -071
Provision
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
Vacation Conversion during the 2018 -2019 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 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
of the $750.00 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.
Education/ Wellness
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
8312399.1 OR020 -071
Provision
D escription
Effective October 1, 2017, amend Article X, Section 10, to provide as
follows:
SECTION 10. Standb�Pay. Employees, assigned by Management to
standby status after their regular work hours, will receive two (2) hours
per day (Monday through Friday) of standby pay at their straight time
Standby Pay
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.
Certification Pay
Effective upon execution of this agreement, Article III, Section 9.B
shall be amended as follows:
B. ASE Mechanics Certification. Employees who possess the
certifications necessary to perform smog checks shall receive a flat
$50 per month bonus.
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 as follows:
After Year(s) Vacation Hours
of service Per Year
1 80
2 96
3 104
4 112
5 through 10 120
11 128
Vacation
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
ITEM
5 10/24/17
8312399.1 OR020 -071
Provision
Effective July 1, 2017, Article XIX, Section 3, shall be amended as
follows:
SECTION 3. Safety Shoes. Designated employees covered by this
Boot Allowance MOU are required to wear safety shoes with steel toes while on duty.
An employee will receive up to $450 per fiscal year for safety boot
allowance. Inspection of the work site will be made on a regular basis
to ascertain compliance to the safety shoe program.
Language Implement mutually agreed language clean -up to conform MOU to
Cleanup /Other 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
Status of MOU and other benefits for all covered employees. This LOU 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 June 30, 2019.
The Association took this to a vote of their membership and ratified the proposal on September 27,
2017. Council approval is required to finalize this agreement in the form of a Letter of
Understanding.
7. ATTACHMENTS
• Resolution No. 11035 (Letter of Understanding) — Exhibit "A"
• Lump Sum Allocation Table — By Classification — Appendix "A"
RESOLUTION NO. 11035
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 THROUGH DECEMBER 31, 2019
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, 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, City of Orange
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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