SR - - TERMS OF EMPLOYMENT JULY 1 2017 THROUGH JUNE 30 20181. SUBJECT
Resolution No. 11028 — A Resolution of the City Council of the City of Orange Relating to the
Classification, Compensation, and Terms of Employment of Executive Directors and Top
Management Employees, and Repealing Resolution No. 10904 and Amendments Thereto.
2. SUMMARY
Resolution No. 11028 amends the compensation and terms of employment for the City's
Executive Directors and Top Management Employees for the period July 1, 2017 through June
30, 2018. Details of this agreement are provided under Section 6, "Discussion and Background"
below.
3. RECOMMENDED ACTION
Approve Resolution No. 11028.
4. FISCAL IMPACT
Costing Summary:
Fiscal Year 2017 -18
Cost Description
General Fund
All Other Funds
Cost of One -Time Lump Sum Payments
$124,600
$41,000
Cost of Salary Increases
$13,900
$ -0-
Cost for Medical Insurance and Other Benefits
$110,300
$36,300
Total Annual Cost
$248,800
$77,300
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
The City's Top Management employees are not formally recognized as an employee bargaining
unit, but are covered by a City Council- adopted Resolution that provides for employee
compensation and benefits. The Top Management Resolution covers the City's department heads,
division managers, and other executive management -level employees. There are currently 66
employees covered by this Resolution.
If approved, the new Top Management Resolution will reflect the following provisions for the
period of July 1, 2017 through June 30, 2018:
Provision
Term of Resolution
Description
Effective July 1, 2017 through June 30, 2018
Salary
• Effective the pay period beginning November 12, 2017,
employees shall receive a one -time lump -sum payment in
accordance with the Schedule attached as Appendix "C ". The
lump -sum payment is equal to approximately 2% of top -step
for each classification.
Only regular, full -time 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.
• Effective November 12, 2017, the Fire Chief and Police Chief
shall receive a 3% base salary increase.
Administrative Leave
• Effective January 1, 2018, regular full -time employees
identified in Appendix "A" shall accrue 80 hours of
administrative leave annually for continuous service.
• Effective January 1, 2018, Regular full -time employees
identified in Appendix `B" shall accrue 63 hours of
administrative leave annually for continuous service.
ITEM 2 11/14/17
Vacation Conversion
Effective July 1, 2017, employees shall be allowed to convert up to
50% of current annual vacation accrual into cash in lieu of time off
with pay.
Medical Insurance
Effective the first pay period starting in January 2018, the City's
contribution toward medical insurance benefits per employee shall
increase by $75.
Survivor Benefit
Effective on or before June 30, 2018, pursuant to a contract
amendment with CalPERS, the City shall pay fees and provide the
1959 PERS Survivor Benefit at the Fourth Level Option for the Fire
Chief and Police Chief.
Educational/Wellness
Section 23(A) is amended to add a new subsection 3 to allow
Reimbursement
employees to be reimbursed for purchases of fitness equipment (home
g ym equipment) within the prescribed limits stated in Section 23(A).
Technology Stipend
In lieu of being provided a City- issued cell phone pursuant to Section
1.63 of the City's Administrative Policy Manual, designated
employees shall receive $50 per month as reimbursement for any and
all cost related to the purchase and use of a cell phone for City - related
business. For purposes of this section, designated employees are those
that the City Manager or Department Head have determined are
required to carry cell phones so that they may be contacted when they
are away from their office phone or computer.
7. ATTACHMENTS 7-71
Resolution No. 11028 (Top Management Resolution)
ITEM 3 11/14/17
RESOLUTION NO. 11028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE RELATING TO THE CLASSIFICATION,
COMPENSATION, AND TERMS OF EMPLOYMENT OF
EXECUTIVE DIRECTORS AND TOP MANAGEMENT
EMPLOYEES, AND REPEALING RESOLUTION NO.
10904 AND AMENDMENTS THERETO.
WHEREAS, the employees covered by this Resolution constitute management personnel; and
WHEREAS, the City Council has consulted with the City Manager concerning the proposed
employment terms contained herein; and
WHEREAS, the City Council has determined that this Resolution shall set forth the wages,
hours, and conditions of employment for the period of July 1, 2017 through June 30, 2018 for those
management employees covered herein;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange hereby
adopts the wages, hours, and conditions of employment for the period of July 1, 2017 through June 30,
2018 for Executive Directors and Top Management Employees as follows:
SECTION 1. BASIC COMPENSATION PLAN. There is hereby established a basic
compensation plan for all executive directors and top management employees of the City of Orange who
are now employed, or will in the future be employed in any of the classifications of employment listed in
this Resolution and its attachments. Whenever the masculine gender is used in this Resolution, it shall
be understood to include the feminine gender. Whenever the term "department head" is used, it shall be
understood to include the City Manager when the personnel action affects a department head.
SECTION 2. SALARY AND WAGE SCHEDULE. The monthly salaries for employees
covered by this Resolution are hereby incorporated, and listed in Appendixes "A" and "B."
The attached salary and wage schedules shall constitute the basic compensation plan consisting of
six steps or rates of pay in each range.
The City Manager reserves the right to grant an additional salary increase of up to 5.0% for any
classifications described herein in Appendixes "A" or "B." Any such increases shall not exceed a total
cost of 1% of payroll for Top Management employees.
The respective ranges shall be identified by number and the steps by the letters "A" to "F" inclusive.
The minimum length of service required for advancement to the next higher step, is provided in Section
5 and 6.
A. Lump Sum Payment. Effective the pay period beginning November 12, 2017, employees
shall receive a one -time lump -sum payment in accordance with the Schedule attached as Appendix "C ".
1) Only regular, full -time employees that are active (employed by the City) during the pay
period that the lump -sum payment is made are eligible for such payments. Payments will
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