SR - RES-11036 - LETTER OF UNDERSTANDING EFFECTIVE JULY 1 2017 TO DECEMBER 31 20191. SUBJECT
Resolution No. 11036 — 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.
2. SUMMARY
Resolution No. 11036 establishes 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. Details of this agreement are provided under Section
6, "Discussion and Background" below.
3. RECOMMENDED ACTION
Approve Resolution No. 11036.
4. FISCAL IMPACT
Costing Summary:
Fiscal Year 2017 -18
Cost Description
General Fund
Cost of Base Salary Increase
$142,500
Savings from CaIPERS Cost Sharing
$51,100
Cost of Negotiated Benefits
$227,000
Total Annual Cost
$318,400
Fiscal Year 2018 -19
Cost Description
General Fund
Cost of Base Salary Increase
$333,700
Savings from Ca1PERS Cost Sharing
$229,500
Cost ofNegotiated Benefits
$383,100
Total Annual Cost
$487,300
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
In March 2017, the City began the collective bargaining process with the Orange City Fire
Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -CIO. The prior
contract between the parties expired on June 30, 2017. On September 28, 2017, the parties
reached agreement on the terms and conditions of a new two -year labor contract that includes the
following:
Provision
Term of Agreement
Description
Effective July 1, 2017 through June 30, 2019.
Salary
Implement an across the board base salary increase of 1% effective
October 1, 2017.
Implement an across the board base salary increase of .75% effective
in the first full pay period in July 2018.
Monthly Salary Tables are attached as Appendix "A ".
Retirement
Modify Article XIl, Section 12.1 to provide that classic safety
employees shall pay a total of 3% cost sharing toward the City
contribution, effective as follows: 1% effective October 1, 2017; 1%
effective in the first full pay period in July 2018; and 1% effective in
the first full pay period in January 2019.
ITEM 2 10/24/17
8246957.1 OR020 -066
Medical Insurance
Modify Article XV, Section 6.1B of the MOU to provide that the
City's contribution shall be increased as follows:
Insurance
Current $725 $1,120 $1,350 $725
October 1, 2017 $951 $1,445 $1,445 $845
January 1, 2018 $1,026 $1,520 $1,520 $920
January 1, 2019 $1,101 $1,595 $1,595 $995
Educational
Effective October 1, 2017, available educational reimbursement shall
Reimbursement
be increased from $1,000 to $1,250 per fiscal year.
PERS Level 4
Upon ratification, the City shall work to amend its contract with
Survivor Benefit
CalPERS, so that no later than July 1, 2018, there shall be an increase
in the 1959 Survivor's level of benefits to the fourth level
(Government Code Section 21382.4) for safety members; safety
members shall pay the $2.00 employee portion, and the City shall pay
the employer portion subject to the following limit: in the event the
employer portion exceeds $6.00, safety members agree to pay any
portion of the employer portion that exceeds $6.00.
Union Group Benefit
Effective October 1, 2017, the City will increase the contribution from
Plan
$40 to $48, per month, per regular full time employee.
Language Changes
Implement mutually agreed language clean -up to conform MOU to
current practices or agreements.
7. ATTACHMENTS
• Resolution No. 11036 (Letter of Understanding) — Exhibit "A"
• Monthly Salary Table — By Classification — Appendix "A"
ITEM 3 10/24/17
8246957.1 OR020 -066
RESOLUTION NO. 11036
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 THROUGH JUNE 30, 2019
WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange
City Fire Fighters, Inc. Local 2384 of the International Association of Fire Fighters, AFL -
CIO hereinafter referred to as the "Union" have met and conferred in accordance with the
requirements of the Meyers - Milias -Brown Act; and
WHEREAS, the City and the Union have reached agreement on wages, salaries,
and other terms and conditions of employment effective July 1, 2017 through June 30,
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
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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