RES-10716 Memorandum For Orange Police Management AssociationRESOLUTION NO. 10716
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE RESOLVING A FAILURE BY
REPRESENTATIVES OF THE CITY AND THE
ORANGE POLICE MANAGEMENT ASSOCIATION
TO AGREE UPON THE TERMS AND CONDITIONS
FOR A FISCAL YEAR 2012 -2013 MEMORANDUM
OF UNDERSTANDING BETWEEN
REPRESENTATIVES OF THE CITY AND THE
ORANGE POLICE MANAGEMENT ASSOCIATION.
WHEREAS, the representatives of the City of Orange and the Orange Police
Management Association have engaged in multiple meet and confer sessions and did so in
good faith and in compliance with Government Code §3500 et. seq. in an effort to negotiate a
successor agreement to the 2010 -2012 Memorandum of Understanding between the parties;
and
WHEREAS, after numerous meet and confer sessions between the period of
September 2012 through January 2013 the parties failed to reach an agreement and declared
an impasse in the negotiations process on April 4, 2013; and
WHEREAS, the Orange Police Management Association did not request mediation
procedures contained in the City of Orange Employee Relations Resolution No. 3611 in a
timely fashion; and
WHEREAS, the Orange Police Management Association did not request Fact -
finding procedures in a timely fashion;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Orange does resolve, declare, determine, and order as follows:
Section 1 . Unless otherwise indicated in this Resolution, the following changes in
wages, hours, and terms and conditions of employment for those employees in the unit
represented by the Orange Police Management Association shall be implemented concurrent
with City Council passage, approval and adoption of this Resolution. This Resolution shall
take precedence over any conflicting Municipal Code sections, rules, regulations,
Memoranda of Understanding or other documentary provisions.
Section 2 . Concurrent with City Council adoption of this Resolution, the
unilaterally implemented changes in terms and conditions of employment for those
employees in the unit represented by the Orange Police Management Association are as
follows:
Term — there is no agreement and thus no term. Implementation shall be consistent with
the provisions of Government Code §3505.4.
Salary - No salary increases.
Uniform Allowance — MOU Article XII Section 1 — The value of uniform allowance is
no longer pension reportable for new PERS members hired after January 1, 2013.
Vacation Conversion — MOU Article XIV Section 3 — Employees shall not be able to
convert vacation time to pay as provided in Article XIV Section 3 of the 2010 -2012
MOU.
Sick Leave Payout Program — MOU Article XVI Section 5F — Change intro paragraph as
follows: "Sick leave shall be paid at the current rate of pay and be paid off according to
the following programs..." This language removes the 8% and 9% pay increases involved
in converting sick leave to compensation.
Health Insurance — MOU Article XVIII
Effective January 1, 2013, the City shall contribute toward the payment of
premiums under the PERS Health Benefits Plan to each eligible retiree annuitant
of PERS, to the extent required by law, a contribution of $115.00 per month.
Flexible Benefits Plan. The City's allowance for health insurance premiums shall
be increased by $60 per employee effective June 1, 2013 (from $1,210 to $1,270
per month).
Retirement — MOU Article XIX
Section IA - Safety PERS Formula — Delete references to employee payment of a
portion of the City's PERS Employer Contribution Rate (currently 8.5 %)
Section IC - Miscellaneous PERS Formula — Delete references to employee
payment of a portion of the City's PERS Employer Contribution Rate (currently
7.5 %)
Section 1D — Employee Paid PERS Contribution — Rewrite section as follows:
Employee -paid PERS member contributions for all employees covered by this
MOU shall be made pursuant to Section 414(h)(2) of the Internal Revenue Code,
to enable the employee's taxable income to be reduced by the amount of the
employee -paid member contribution."
Section I — PERS on PERS (Miscellaneous) — Delete entire section.
Section IF — PERS on PERS (Safety) — Delete entire section.
Section II — PEPRA Formula for New Miscellaneous Members — Add new
section:
Implement Miscellaneous (non -sworn) PERS formula pursuant to
California Public Employees' Pension Reform Act of 2013 ( PEPRA) for
new members (as defined by PEPRA) hired on or after January 1, 2013:
New Miscellaneous members will be subject to the 2.0% @ age 62
retirement benefit formula
New Miscellaneous members will receive a benefit upon
retirement based on the three -year average method
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New Miscellaneous members will pay 50% of "normal cost"
which, according to Ca1PERS for 2013, shall be 6.75% of pension -
reportable salary. This contribution shall be made by payroll
deduction, subject to change as dictated by Ca1PERS pursuant to
PEPRA.
o Section 1 J — PEPRA Formula for New Safety Members —Add new section:
Implement Safety PERS formula pursuant to PEPRA for new members (as
defined by PEPRA) hired on or after January 1, 2013:
New Safety members will be subject to the 2.7% @ age 57
retirement benefit formula
New Safety members will receive a benefit upon retirement based
on the three -year average method
New Safety members will pay 50% of "normal cost" which,
according to CalPERS for 2013, shall be 12.0% of pension -
reportable salary. This contribution shall be made by payroll
deduction, subject to change as dictated by Ca1PERS pursuant to
PEPRA.
Section 3 . The City Council hereby approves and adopts the above unilaterally
implemented changes in Terms and Conditions of Employment for the Orange Police
Management Association effective May 15, 2013.
APPROVED AND ADOPTED this 14 day of May, 2013
C-) F,t_ J
Teresa E. Smith, Mayor, City of Orange
ATTEST:
Mary E rp City Cle o nge
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I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution No. 10716 was duly adopted by the City Council of the
City of Orange, California at a regular meeting held on the 14 day of May 2013, by the
following vote:
AYES:COUNCIL MEMBERS:Whitaker, Murphy, Bilodeau
NOES:COUNCIL MEMBERS:Alvarez, Smith
ABSENT:COUNCIL MEMBERS:None
ABSTAIN:COUNCIL MEMBERS:None
Mary E. ity Clerk, Ci e
Approved as to form:
oo
Wayne . Winthers, City Attorney, City of Orange
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