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SR - RES-11037 - LETTER OF UNDERSTANDING JULY 1 2017 TO JUNE 30 20191. SUBJECT Resolution No. 11037 – A Resolution of the City Council of the City of Orange Establishing a Letter of Understanding between the City of Orange and the City of Orange Police Association Effective July 1, 2017 to June 30, 2019. 2. SUMMARY Resolution No. 11037 establishes a Letter of Understanding between the City of Orange and the City of Orange Police Association effective July 1, 2015 to June 30, 2017. Details of this agreement are provided under Section 6, "Discussion and Background" below. 3. RECOMMENDED ACTION Approve Resolution No. 11037. 4. FISCAL IMPACT Costin,g Summary: Fiscal Year 2017 -18 Cost Description General Fund Cost of To Ste Increase $241,200 Cost of Negotiated Benefits $118,900 Total Annual Cost $360,100 Fiscal Year 2018 -19 Cost Description General Fund Cost of To Ste Increase $548,800 Cost of Negotiated Benefits $295,300 Total Annual Cost $844,100 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 City of Orange Police Association. The prior contract between the parties expired on June 30, 2017. On October 17, 2017, the parties reached agreement on the terms and conditions of a new two -year labor contract that includes the following: Provisioll Descriptioii Term of Agreement Effective July 1, 2017 through June 30, 2019. Salary Effective October 1, 2017, implement new pay step G, 2.0% above current Step F; effective the first full pay period in July 2018, modify step G to reflect that it is 4% (total, +2% increase) above step F. Monthly Salary Tables are attached as Appendix "A ". Vacation Conversion 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 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. Medical Insurance Modify Article XVII, Section 1.B of the MOU to provide that the City's contribution shall be increased as follows: Dates Effective Waiver Current $951 $1,445 $845 January 1, 2018 $1,026 $1,520 $920 January 1, 2019 $1,101 $1,595 $995 ITEM 2 10/24/17 PERS Level 4 Upon ratification, the City shall work to amend its contract with Survivor Benefit Ca1PERS, 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. Language Changes Implement mutually agreed language clean -up to conform MOU to current practices or agreements. 7. ATTACHMENTS • Resolution No. 11037 (Letter of Understanding) — Exhibit "A" • Lump Sum Allocation Table — By Classification — Appendix "A" RESOLUTION NO. 11037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ESTABLISHING A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE CITY OF ORANGE POLICE ASSOCIATION EFFECTIVE JULY 1, 2017 THROUGH JUNE 30, 2019 WHEREAS, the City of Orange, hereinafter referred to as "City," and the City of Orange Police Association hereinafter referred to as "COPA" have met and conferred in accordance with the requirements of the Meyers - Milias -Brown Act; and WHEREAS, the City and COPA 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, City of Orange CITY COUNCIL MINUTES OCTOBER 24, 2017 3. CONSENT CALENDAR (Continued) 3.25 Letter of Understanding between the City of Orange and the City of Orange Police Association effective July 1, 2017, to June 30, 2019. Resolution No. 11037. (C2500.J.4.2) A Resolution of the City Council of the City of Orange establishing a Letter of Understanding between the City of Orange and the City of Orange Police Association effective July 1, 2017, to June 30, 2019. ACTION: Approved Resolution No. 11037. 3.26 Letter of Understanding between the City of Orange and the City of Orange Police Management Association effective July 1, 2017, to June 30, 2019. Resolution No. 11038. (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 City of Orange Police Management Association effective July 1, 2017, to June 30, 2019. ACTION: Approved Resolution No. 11038. 3.27 Approve the submittal of 24 city streets for the Road Maintenance and Rehabilitation Account (RMRA) Funding Program. Resolution No. 11031. (S4000.S.7) A Resolution of the City Council of the City of Orange approving the submittal of 24 city streets for the Road Maintenance and Rehabilitation Account (RMRA) Funding Program. ACTION: Approved Resolution No. 11031. 3.28 Approve the submittal of transportation improvement projects to OCTA for funding under the Renewed M2 of the Comprehensive Transportation Funding Program. Resolution No. 11032. (S4000.S.7) A Resolution of the City Council of the City of Orange approving the submittal of transportation improvement projects to the Orange County Transportation Authority (OCTA) for funding under the Renewed Measure M (M2) of the Comprehensive Transportation Funding Program. ACTION: Approved Resolution No. 11032; and approved the submittal of the proposed transportation improvement projects to the Comprehensive Transportation Funding Program for Fiscal Year 2019 -2020 as administered by OCTA. 3.29 Approve the removal of a portion of Old Chapman Avenue from the City Street System. Resolution No. 11034. (54000.S.4) A Resolution of the City Council of the City of Orange removing a portion of Old Chapman Avenue from the City Street System. ACTION: Approved Resolution No. 11034. PAGE 9