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.
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7. ATTACHMENTS
• Resolution No. 11052 (Letter of Understanding) — Exhibit "A"
• Monthly Salary Table — By Classification — Appendix "A"
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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
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