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03.60 COPA Letter of Understanding 7-1-2019 ' q•o P�R'`'9� ! 'ti�'���GOR �TF��'�G� *`� y� �a� AGENDA ITEM ��ti�� _����� � � �F��G��� June 11, 2019 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager FROM: Will Kolbow, Administrative Services Director��✓,�,;���� REVIEW: City Manage Finance���/ 1. SUBJECT Resolution No. 11164—A Resolution of the City Council of the City of Orange establishing a Letter of Understanding between the City of Orange and the City of Orange Police Association effective July 1, 2019, to June 30, 2022. � 2. SUMMARY Resolution No. 11164 establishes a Letter of Understanding between the City of Orange and the City of Orange Police Association effective July 1, 2019, to June 30, 2022. 3. RECOMMENDED ACTION Approve Resolution No. 11164. 4. FISCAL IMPACT � Costing summary: Fiscal Year 2019-20 Cost Descri tion General Fund All Other Funds Cost of Base Sala Increase $750,600 $3,900 Cost of Ne otiated Benefits 576,900 3,000 Total Annual Cost $1,327,500 $6,900 Fiscal Year 2020-21 Cost Descri tion General Fund All Other Funds Cost of Base Sala Increase $1,569,400 $8,200 Savin s from �aIPERS Cost Sharin 134,600 700 Cost of Ne otiated Benefits 796,100 4,100 Total Annual Cost $2,230,900 $11,600 ITEM �, �v0 1 06/11/2019 Fiscal Year 2021-22 Cost Descri tion General Fund All Other Funds Cost of Base Sala Increase $2,415,200 $12,600 Savin s from CaIPERS Cost Sharin 278,400 1,400 Cost of Ne otiated Benefits 1,022,900 5,300 Total Annual Cost $3,159,700 $16,500 5. . STRATEGIC PLAN GOALS Goal 1: Provide for a safe community. b: Provide staffing and resources to deliver services that ensure public safety. Goal 2: Be a fiscally healthy community. a: Expend fiscal resources responsibly. 6. DISCUSSION AND BACKGROUND In March 2019, the City began the collective bargaining process with the City of Orange Police Association. The current contract between the parties expires on June 30, 2019. After six meetings, on May 16, 2019, the parties reached agreement on the terms and conditions of a three-year labor contract that includes the following: ' • • � - � • Term of Agreement July 1, 2019 through June 30, 2022. Salary Across-the-board base salary increase of 3% effective June 23, 2019, the first pay period containing July 1. Effective the pay periods beginning June 21, 2020 and June 20, 2021, a 3.5% base salary increase shall be granted to sworn members. Effective the pay periods beginning June 21, 2020 and June 20, 2021, a 2% base salary increase shall be granted to non- sworn members. Monthly Salary Tables are attached as Appendix "A". Bilingual Pay Increase the bilingual pay bonus from $225 to $275 per month. ITEM 2 06/11/2019 Longevity/ Create longevity/retention incentive pay for years of full-time Retention Incentive service as follows: Pay . . . - . . . . . 15 $150 20 $300 25 $500 Career Development Increase the monthly career development incentive amounts Pay as follows: . . . - . - . • . POST Intermediate Certificate $100 $200 and 30-59 semester units: POST Intermediate Certificate $200 $300 and 60-89 semester units: POST Advanced Certificate $27� $370 and 90 semester units or more: POST Advanced Certificate $300 $400 and Associate's Degree: POST Advanced Certificate $400 $700 and Bachelor's Degree: POST Advanced Certificate $500 $950 and Master's Degree: Health Insurance Increase the City's monthly contributions as follows: . . Current $1,101 $1,595 $995 January 1, 2020 $1,176 $1,670 $1,070 January 1, 2021 $1,251 $1,745 $1,145 January 1, 2022 $1,326 $1,820 $1,220 ITEM 3 06/11/2019 PERS Cost Sharing Modify provision to incorporate sworn "Classic members" to pay an additional 3% cost sharing toward the City contribution as follows: • 1.5% effective June 21, 2020; • 1.5% effective June 20, 2021. PERS Level 4 The City will provide the PERS 1959 Survivor Benefit at the Survivor Benefit for Third Level Option for miscellaneous members. The City Miscellaneous shall increase the 1959 Survivor Benefit to the Fourth Level Members Option (California Government Code Section 21574) for miscellaneous members; miscellaneous members shall pay their $2.00 monthly contribution through payroll deduction. The City shall pay the employer portion subject to the following limit: in the event the employer portion exceeds $6.00 monthly, miscellaneous members agree to pay any portion of the employer portion that exceeds $6.00 monthly. This benefit shall be contingent upon all affected bargaining units contractually agreeing to this provision. Association Release Increase association release time from 130 to 180 hours per Time calendar year. Limited Reopener Either party can reopen the following economic articles in the MOU for negotiations during the 2020-2021 fiscal year through a limited reopener subject to the requirements set forth in this article: Articles III and XIII (Section 3). In order for either party to invoke this limited reopener: 1) there must be a fiscal year-over-year (from 18-19 to 19-20) increase or decrease in sales tax revenue received by the City greater than 10%, and 2) either party must provide written notice of its request and intent to reopen MOU negotiations for this limited purpose in writing to either party during the following dates: December 15, 2020 through January 15, 2021. Language Changes Implement mutually agreed language clean-up to conform MOU to current practices or agreements. The City of Orange Police Association took this to a vote of their membership and ratified the proposal on May 30, 2019. City Council approval is required to finalize this agreement in the form of a Letter of Understanding. 7. ATTACHMENT • Resolution No. 11164 ITEM 4 06/11/2019 RESOLUTION Nn. 11164 A RESOLUTIpN OF THE CITY �OUNCIL q� TIi� CITY OF QRANGE ESTA$LISHING A LETT�R pF UNDERSTANDING BETWEEN THF CITY QF ORANGC AND THE CITY OF ORANGE POLICE ASSnCIATION, EFFECTI`�E JULY 1, 2019 THROUGH JUNE 30, 2022 WHER.�AS, the City of Orange, hereir�after referred to as "City," and the City of Orange Police Association hereafter referred to as the "Association" have met and conferred in accordance with the requirements of the Meyers-Milias-Brown Act; and WHEREAS, the City and the Association have reacl�ed agreement on wages, salaries, and other terms and conditions of employment effective July 1, 2019 through June 30, 2022; and WHEREAS, the City Council of the City of Orange has consulted with the Administrative Services Director and Assistant Human Resources Director concerning the proposed employment terms contained in the attached �,etter 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." . ADOPTEp this l lth day of June 2019. 1klarlc A. Murphy, Mayor of the City of Orange ATTEST: Pamela Coleman, City Clerk of the City of Orange 1 I, PAMELA COLEl�rIAN, City Clerk o�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�Zeld on the l lt" �lay of June 2019 by the following vote: AYES: COUNCIL IkIE1�IBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEI�IBERS: Pamela Coleman, City Clerk of the City of Orange 2 EXHIBIT "A" A�ETTER OF UNDERSTAN�ING BETWEEN TH� CITY OF ORANGE ANI) THE CITY OF ORANGE POLICE ASSOCIATION EFFECTIVE Ji,JL�' 1,2019 THROUGH JUNE 30, 2022 This Letter of Understanding ("LOU") is entered into by and between the City of Orange and the City of Orange Police Association. Recitals A. The City of Qrange (hereafter, "City") and the City of Orange Police Association ("Association") hereby enter into this LO�J effective July 1, 2019. 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 Association adopted by City Council Resolution No. 11093. 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. Asreement 1. Term and Effective Date The term of this LOU shall be from July 1, 2019 to June 30, 2022 and will become effective upon ratification by the Association rnembership and approval of the City Council. 2. Salary (Attached as Annendix "A"1 Implement an across the board base salary increase of 3% effective June 23, 2019. Effective the pay periods beginning June 21, 2020 and June 20, 2021, a 3.5% base salary increase shall be granted to sworn members. Effective the pay periods beginning June 21, 2020 and June 20, 2021, a 2% base salary increase shall be granted to non-sworn members. 3. Bilin�ual Pav (MOU Article IX, Section 2(E)) 3 Modify Article IX, Section 2(E) of the MOLJ to increase bilingual bonus from $225.OQ to $275.00 per month. 4. Lon�evity/Retention Pay �1VIOU Article IX, Section 2(N)) Modify Article IX, Section 2, to create Subsection N and provide longevity/retention pay for years of service. � � 15 Years of Service $150.00 20 Years of Service $300.00 25 �ears of Service $500.00 For purposes of this benefit, Ijears of Service is defined as follows: 1) for miscellaneous/non- sworn members, years of full-time service with the City of Orange; and 2) for sworn members, years of service as a full-time paid sworn law enforcement. For years of sworn service other than the City of Orange, employee shall provide City with proof of eligible service. The Police Chief shall have final approval of eligible service. 5. Educational Incentive Program(MOU Article X, Section 1) Modify Article X, Section 1 to increase the monthly career development incentive amounts as follows: � POST Intertnediate Certificate and $100.00 $200.00 30-59 semester units: POST Intermediate Certificate and $200.00 $300.00 60-89 semester units: POST Advanced Certificate and $2�p,00 $370.00 90 semester units or more: � POST Advanced Certificate and $300.40 $400.00 Associate's De ree: POST Advanced Certificate and $400.00 $700.00 Bachelor's De ee: POST Advanced Certificate and $500.00 $950.00 Master's De ee: 6. Health Insurance (MOU Article XVII, Section 1B)) Modify Article XVII, Section 1(B)to increase the City's monthly contributions as follows: 4 � 1 � Current $1,1Q1.Q0 $1,595.Op $995.00 Janua 1, 2020 $1,176.00 $1,670.00 $1,070.00 Janua 1, 2021 $1,251.00 $1,745.00 $1,145.00 Januar 1, 2q22 $1,326.00 $1,820.00 $1,220.00 7. PERS Cost Sharin� (MOU Article XVIII, Section 1(D)1 Modify Article XVIII Section 1(D) Retirement - PERS Member Contribution — Tier lA to add: Effective the pay period beginning June 21, 2020, safety employees who are "classic members" shall contribute an additional 1.5% of their PERS-reportable income, on a pre-tax basis toward the City contribution pursuant to the cost sharing arrangement set forth in California Government Code Section 20516(�, increasing the employee contribution to 10.5% of PERS-reportable income. Effective the pay period beginning June 20, 2021, safety employees who are "classic members" shall contribute an additional 1.5% of their PERS- reportable income, on a pre-tax basis toward the City contribution pursuant to the cost sharing arrangement set forth in California Government Code Section 20516(�, increasing the employee contribution to 12% of PERS-reportable income. 8. PERS Level 4 Survivor Benefit for Miscellaneous Members (MOU Article XVIII, Section (H)1 Modify Article XVIII, Section 1 by adding Subsection H to the MOU to read: The City will provide the PERS 1959 Survivor Benefit at the Third Level Option for miscellaneous members. The City shall increase the 1959 Survivor Benefit to the Fourth Level Option (California Government Code Section 21574) for miscellaneous members; miscellaneous members shall pay their $2.00 monthly contribution through payroll deduction. The City shall pay the employer portion subject to the following limit: in the event the employer portion exceeds $6.00 monthly, miscellaneous members agree to pay any portion of the employer portion that exceeds $6.00 monthly. This benefit shall be contingent upon all affected bargaining units contractually agreeing to this provision. 9. Association Release Time (MOU Article XXI, Section 3) Modify Article XXI, Section 3 of the MOU to increase association release time from 130 hours to 180 hours per calendar year. 10. Limited Reoqener(MOU Article XXXI, Section 2) Modify Article XXXI to add new Section 2 into MOU as follows: Either party can reopen the following economic articles in the MOU for negotiations during the 2020/2021 fiscal year through a limited reopener subject to the requirements set forth in this article: Articles III and XIII (Section 3). In order for either party to invoke this limited reopener: 1) there must be a fiscal year-over-year (from 18/19 to 19/20) increase/decrease in 5 sales tax revenue received by the city greater than 10%, and 2) eitl�er party must provide in written notice of its request and intent to reopen MQLJ negotiations for this limited purpose in writing to either party during the follo�uxng dates: ]�ecer�ber 15, 2Q20 through January 15, 2021. i,Jpon receipt of such timely request, the parties agree to meet and confer in good faith on the article(s) requested for reopening. Any changes to the MOU arising out of this limited reopener shall be by mutual written agreement. It is the expressed intent of the parties that the language pertaining to tllis limited reopener is included in the current MOU only and expires June 30, 2022. Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process. 11.Lansua�e Chan�es Implement mutually agreed language clean-up to conform MOU to current practices or agreements. 12. 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, 2022. City of Orange City of Orange Police Association Dated: Dated: By: BY� Will Kolbow,Administrative Services Director 7ohn Mancini, President By: BY� Monica Espinoza,Assistant Human Resources pirector Michael Murphy,Vice President By: B�� Susan Galvan,Economic Development Manager Thomas Lockwood, Treasurer By: $y: Cody Kleen, Human Resources Analyst II $rik Mendoza, Secretary Approved as to form: Gary A. Sheatz, City Attorney 6 Appendix "A" CITY OF ORANGE POLICE ASSpCIATION MONTHLY SALARY RANGES EFFECTIVE JULY 8, 2018 Increase in Step G (From 2.0% to 4.0% above Step F) STEP STEP B STEP C STEP D STEP E STEP F STEP G Salary A After 1 After 1 After 1 After 1 After 1 After 1 Classification Title Range Year Year Year Year Year Year Civilian Investigative Officer 509 4516 4746 4988 5243 5510 5791 6023 Court Liaison Officer 499 4296 4515 4746 4988 5242 5509 5730 Crime Prevention Specialist 517 4700 4939 5191 5456 5734 6027 6268 Forensic Services Specialist 509 4516 4746 4988 5243 5510 5791 6023 Parking Control Officer II 476 3831 4026 4231 4447 4674 4912 5109 Police Administrative Assistant 489 4087 4296 4515 4745 4987 5241 5451 Police Armorer 489 4087 4296 4515 4745 4987 5241 5451 Police Clerk 468 3681 3868 4066 4273 4491 4720 4909 Police Code Enforcement Officer 542 5324 5595 5881 6181 6496 6827 7100 Police Dispatch Shift Supervisor 546 5431 5708 5999 6305 6627 6965 7243 Police Dispatcher 528 4965 5218 5484 5764 6058 6367 6621 Police Officer 579 6403 6729 7073 7433 7812 8211 8539 Police Records Clerk 468 3681 3868 4066 4273 4491 4720 4909 Police Records Shift Supervisor 528 4965 5218 5484 5764 6058 6367 6621 Police Services Officer 489 4087 4296 4515 4745 4987 5241 5451 Police Subpoenas&Warrants Specialist 489 4087 4296 4515 4745 4987 5241 5451 Police Training Coordinator 499 4296 4515 4746 4988 5242 5509 5730 Police Volunteer Coordinator 517 4700 4939 5191 5456 5734 6027 6268 Property Officer 503 4383 4606 4841 5088 5348 5620 5845 Senior Police Clerk 488 4067 4274 4492 4721 4962 5215 5424 7 Appendix "A" (Continued) CITY OF ORANGE POLICE ASSOCIATION MONTHLY SALARY RANGES EFFECTIVE JUNE 23,2019 3.0% Across the Board Salary Increase STEP STEP B STEP C STEP D STEP E STEP F STEP G Salary A After 1 After 1 After 1 After 1 After 1 After 1 Classification Title Range Year Year Year Year Year Year Civilian Investigative Officer 515 4653 4890 5140 5402 5677 5967 6206 Court Liaison Officer 505 4427 4652 4890 5139 5401 5677 5904 Crime Prevention Specialist 523 4842 5089 5349 5622 5908 6210 6458 Forensic Services Specialist 515 4653 4890 5140 5402 5677 5967 6206 Parking Control Officer II 482 3947 4149 4360 4582 4816 5061 5264 Police Administrative Assistant 495 4212 4426 4652 4890 5138 5401 5616 Police Armorer 495 4212 4426 4652 4890 5138 5401 5616 Police Clerk 474 3793 3986 4189 4403 4627 4863 5058 Police Code Enforcement Officer 548 5485 5766 6059 6369 6693 7035 7316 Police Dispatch Shift Supervisor 552 5596 5882 6181 6497 6828 7176 7463 Police Dispatcher 534 5116 5376 5651 5939 6242 6560 6822 Police Officer 585 6597 6934 7287 7659 8050 8461 8798 Police Records Clerk 474 3793 3986 4189 4403 4627 4863 5058 Police Records Shift Supervisor 534 5116 5376 5651 5939 6242 6560 6822 Police Services Officer 495 4212 4426 4652 4890 5138 5401 5616 Police Subpoenas&Warrants Specialist 495 4212 4426 4652 4890 5138 5401 5616 Police Training Coordinator 505 4427 4652 4890 5139 5401 5677 5904 Police Volunteer Coordinator 523 4842 5089 5349 5622 5908 6210 6458 Property Officer 509 4516 4746 4988 5243 5510 5791 6023 Senior Police Clerk 494 4191 4404 4629 4865 5112 5374 5588 8 Appendix "A" (Continued) CITY OF ORANGE POLICE ASSOCIATION MONTHLY SALARY R,ANGES EFFECTIVE JUN�21, 2020 2.0% Increase for Non-Sworn Classifications 3.5% Increase for Sworn Classifications STEP STEP B STEP C STEP D STEP E STEP F STEP G Salary A After 1 After 1 After 1 After 1 After 1 After 1 Classitication Title Range Year Year Year Year Year Year Civilian Investigative Officer 519 4747 4989 5243 5510 5792 6087 6331 Court Liaison Officer 509 4516 4746 4988 5243 5510 5791 6023 Crime Prevention Specialist 527 4940 5192 5457 5735 6028 6335 6588 Forensic Services Specialist 519 4747 4989 5243 5510 5792 6087 6331 Parking Control Officer II 486 4026 4232 4448 4674 4913 5163 5370 Police Administrative Assistant 499 4296 4515 4746 4988 5242 5509 5730 Police Armorer 499 4296 4515 4746 4988 5242 5509 5730 Police Clerk 478 3869 4066 4273 4492 4721 4961 5160 Police Code Enforcement Officer 552 5596 5882 6181 6497 6828 7176 7463 Police Dispatch Shift Supervisor 556 5709 6000 6306 6628 6966 7321 7614 Police Dispatcher 538 5219 5485 5765 6059 6368 6692 6960 Police Officer 592 6831 7181 7545 7931 8336 8760 9111 Police Records Clerk 478 3869 4066 4273 4492 4721 4961 5160 Police Records Shift Supervisor 538 5219 5485 5765 6059 6368 6692 6960 Police Services Officer 499 4296 4515 4746 4988 5242 5509 5730 Police Subpoenas&Warrants Specialist 499 4296 4515 4746 4988 5242 5509 5730 Police Training Coordinator 509 4516 4746 4988 5243 5510 5791 6023 Police Volunteer Coordinator 527 4940 5192 5457 5735 6028 6335 6588 Property Officer 513 4606 4842 5089 5348 5621 5908 6144 Senior Police Clerk 498 4275 4493 4722 4963 5216 5482 5701 9 Appendix "A" (Continued) CITY OF O1�ANGE PpLICE ASSOCIATION MONTH�Y SALARY RANGES EFFECTIVE JUNE 20, 2021 . 2.0% Increase for Non-Sworn Classifications 3.5% Increase for Sworn Classifications STEP STEP B STEP C STEP D STEP E STEP F STEP G 5alary A After 1 After 1 After 1 After 1 After 1 After 1 Classification Title Range Year Year Year Year Year Year Civilian Investigative Officer 523 4842 5089 5349 5622 5908 6210 6458 Court Liaison Officer 513 4606 4842 5089 5348 5621 5908 6144 Crime Prevention Specialist 531 5040 5297 5567 5851 6149 6463 6721 Forensic Services Specialist 523 4842 5089 5349 5622 5908 6210 6458 Parking Control Officer II 490 4108 4317 4537 4769 5012 5267 5478 Police Administrative Assistant 503 4383 4606 4841 5088 5348 5620 5845 Police Armorer 503 4383 4606 4841 5088 5348 5620 5845 Police Clerk 482 3947 4149 4360 4582 4816 5061 5264 Police Code Enforcement Officer 556 5709 6000 6306 6628 6966 7321 7614 Police Dispatch Shift Supervisor 560 5824 6121 6433 6761 7106 7468 7767 Police Dispatcher 542 5324 5595 5881 6181 6496 6827 7100 Police Officer 599 7074 7436 7814 8213 8632 9071 9435 Police Records Clerk 482 3947 4149 4360 4582 4816 5061 5264 Police Records Shift Supervisor 542 5324 5595 5881 6181 6496 6827 7100 Police Services Officer 503 4383 4606 4841 5088 5348 5620 5845 Police Subpoenas&Warrants Specialist 503 4383 4606 4841 5088 5348 5620 5845 Police Training Coordinator 513 4606 4842 5089 5348 5621 5908 6144 Police Volunteer Coordinator 531 5040 5297 5567 5851 6149 6463 6721 Property Officer 517 4700 4939 5191 5456 5734 6027 6268 Senior Police Clerk 502 4361 4584 4817 5063 5321 5593 5816 10