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RES-11052 Letter of UnderstandingRESOLUTION 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. D` 4 . a Azat . Teresa E. Smith, Mayor, City of Orange ATTEST: Mary E. rphy, 1 y Clerk, City of Or nge STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 12 day of December 2017, by the following vote: AYES: COUNCIL MEMBERS: Alvarez, Whitaker, Smith, Murphy, Nichols NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None Mary E. urp , City Clerk, Cit ra Resolution No. 11052 2 8375741.1 OR020 -072 A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE ORANGE FIRE MANAGEMENT ASSOCIATION EFFECTIVE JULY 1, 2017 THROUGH JUNE 30, 2019. This Letter of Understanding ( "LOU ") is entered into by and between the City of Orange and the Orange Fire Management Association. Recitals A. The City of Orange (hereafter, "City ") and the Orange Fire Management Association ( "Union ") hereby enter into this LOU effective July 1, 2017. B. The parties agree to incorporate the language addressed in this LOU into a new Memorandum of Understanding ( "New MOU "), once both parties have the opportunity to review and concur on any and all language changes that will become part of the New MOU. A New MOU document will be presented to the City Council at a future meeting for its approval. C. All references to the "MOU" in this LOU shall be to that Memorandum of Understanding by and between the City and the Union adopted by City Council Resolution No. 10968. Except as to those provisions which expressly expired and /or those provisions expressly addressed by this LOU, the terms and conditions of the MOU remain operative until the New MOU is approved and adopted. Agreement 1. Term and Effective Date. The term of this LOU shall be from July 1, 2017 to June 30, 2019, and will become effective upon ratification by the Union membership and approval of the City Council. 2. Salary (MOU Appendix "A "). Implement an across the board base salary increase of 1.75% effective December 24, 2017. Monthly Salary Tables are attached as Appendix "A ". 3. Medical Insurance (MOU Article VI, Section 6.113). Modify Article VI, Section 6.1 C of the MOU to provide that the City's contribution shall be increased as follows: Resolution No. 11052 3 8375741.1 OR020 -072 4. PERS Level 4 Survivor Benefit (MOU Article XII, Section 12.1) Upon ratification, the City shall work to amend its contract with 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. 5. Language Clean -up /Other. Implement mutually agreed language clean -up to conform MOU to current practices or agreements. 6. Status of MOU. Except as specifically provided and amended herein, the terms and conditions of the MOU shall govern the provisions of wages, salaries and other benefits for all covered employees. This LOU shall not be interpreted to extend and/or limit any other rights, benefits, or compensation of either party except as specifically provided herein and both this LOU and the New MOU shall expire on June 30, 2019. Resolution No. 11052 4 8375741.1 OR020 -072 City of Orange Dated: 7 4 t Teresa E. Smith, Mayor ATTEST: Mary E. ty Cler APPROVED AS TO FORM: Laura J. Kalty Special Counsel for the City Orange Fire Management Association Dated: 13 By: 1 Rober Stefano, r sident By: r 66ug Fackiner, Vice President Resolution No. 11052 5 8375741.1 OR020 -072 Appendix " A " ORANGE FIRE MANAGEMENT ASSOCIATION MONTHLY SALARY RANGES EFFECTIVE AUGUST 7, 2016 3% Across the Board Salary Increase NEW STEP STEP STEP STEP STEP STEP Classification Title RANGE A B C D E F Fire Battalion Chief 671 10130 10648 11189 11761 12361 12991 EFFECTIVE DECEMBER 24, 2017 1.75% Across the Board Salary Increase NEW STEP STEP STEP STEP STEP STEP Classification Title RANGE A B C D E F Fire Battalion Chief 674.5 10309 10836 11387 11968 12579 13220 Resolution No. 11052 6 8375741.1 OR020 -072