Loading...
SR - RES-11052 - LETTER OF UNDERSTANDING EFFECTIVE JULY 1 2017 TO JUNE 30 20191. SUBJECT Resolution No. 11052 — A Resolution of the City Council of the City of Orange Establishing a Letter of Understanding between the City of Orange and the Orange Fire Management Association Effective July 1, 2017 to June 30, 2019. 2. SUMMARY Resolution No. 11052 establishes a Letter of Understanding between the City of Orange and the Orange Fire Management Association 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. 11052. 4. FISCAL IMPACT Costing Summary: Fiscal Year 2017 -18 Cost Description General Fund Cost of Base Salary Increase $12,200 Cost of Negotiated Benefits $4,100 Total Annual Cost $16,300 Fiscal Year 2018 -19 Cost Description General Fund Cost of Base Salary Increase $24,400 Cost of Negotiated Benefits $9,700 Total Annual Cost $34,100 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 April 2017, the City began the collective bargaining process with the Orange Fire Management Association. The prior contract between the parties expired on June 30, 2017. On November 22, 2017, the parties reached agreement on the terms and conditions of a new two - year labor contract that includes the following: Provision Description Term of Agreement Effective July 1, 2017 through June 30, 2019. Salary Implement an across the board base salary increase of 1.75% effective December 24, 2017. Monthly Salary Tables are attached as Appendix "A ". Medical Insurance Modify Article VI, Section 6.1C of the MOU to provide that the City's contribution shall be increased as follows: Effective Date Monthly Contribution Current $1,460 December 1, 2017 $1,505 January 1, 2018 $1,580 January 1, 2019 $1,655 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. Language Changes Implement mutually agreed language clean -up to conform MOU to current practices or agreements. ITEM 2 12/12/17 8375742.1 OR020 -072 7. ATTACHMENTS • Resolution No. 11052 (Letter of Understanding) — Exhibit "A" • Monthly Salary Table — By Classification — Appendix "A" ITEM 3 12/12/17 8375742.1 OR020 -072 RESOLUTION NO. 11052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ESTABLISHING A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE ORANGE FIRE MANAGEMENT ASSOCIATION EFFECTIVE JULY 1, 2017 THROUGH JUNE 30, 2019 WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange Fire Management Association 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 12`" day of December 2017. Teresa E. Smith, Mayor of the City of Orange ATTEST: Mary E. Murphy, City Clerk of the City of Orange 1 8375741.1 OR020 -072