03.61 OPMA Letter of Understanding 7-1-2019 ` oF oR �
�rr.�.`'��G�RF�q,qTFO�1'�
*`�� AGENDA ITEM
' ..`*
�..��:.x� /g
�ytil r ���;;;'
�F���.e,,���� �
���.�� June 11, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Will Kolbow, Administrative Services Director �✓,`.��?a��
REVIEW: City Manager Finance ��
1. SUBJECT
Resolution No. 11165—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
Management Association effective July 1, 2019, to June 30, 2022.
2. SUMMARY
Resolution No. 11165 establishes a Letter of Understanding between the City of Orange
and the City of Orange Police Management Association effective July 1, 2019, to June
30, 2022.
3. RECOMMENDED ACTION
Approve Resolution No. 11165.
4. FISCAL IMPACT
Costing summary:
Fiscal Year 2019-20
Cost Descri tion General Fund All Other Funds
Cost of Base Sala Increase $222,000 $6,600
Cost of Ne otiated Benefits 196,300 5,800
Total Annual Cost $418,300 $12,400
Fiscal Year 2020-21
Cost Descri tion General Fund All Other Funds
Cost of Base Sala Increase $484,900 $14,400
Savin s from CaIPERS Cost Sharin 77,200 2,300
Cost of Ne otiated Benefits 287,300 8,600
Total Annual Cost $695,000 $20,700
ITEM 3 . �� 1 06/11/2019
Fiscal Year 2021-22
Cost Descri tion General Fund All Other Funds
Cost�of Base Sala Increase I$757,000 $22,500
Savin s from CaIPERS Cost Sharin � 159,600 4,800
Cost of Ne otiated Benefits � 390,400 11,600
Total Annual Cost I$987,800 $29,300
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 Management Association. The current contract between the parties expires on
June 30, 2019.
After seven meetings, on May 15, 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 a monthly premium for longevity/retention incentive
Retention Incentive pay for years of full-time service as follows:
Pay
�
� . . .
June 23,.2019 $150 $300 $500
June 21, 2020 $200 $400 $650
June 20, 2021 � $250 $500 $800
Career Development Increase the monthly career development incentive amounts
pay as follows:
. .. - .
. � . .
POST Advanced Certificate $600 $700
and Bachelor's Degree
POST Advanced Certificate �725 $950
and Master's Degree
Vacation Conversion Modify provision to provide that each employee may, during
the 2019-20, 2020-21 and 2021-22 fiscal years, convert up
to 50% of the amount of vacation the employee earns during
each applicable fiscal year into cash in lieu of the time off
with pay.
Sick Leave Hours into Modify provision to provide a portion of the payout of sick
Retirement Health leave hours upon separation, as determined by the
Savings Plan Association, may be deposited into a retirement health
savings plan to be established by the City for all covered by
this MOU.
ITEM 3 06/11/2019
Health Insurance Increase the City's monthly contributions as follows:
' • � • - �
� �
• � •
Current $1,655
January 1, 2020 $1,730
January 1, 2021 $1,805
January 1, 2022 $1,880
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 $6.00 monthly.
This benefit shall be contingent upon all affected bargaining
units contractually agreeing to this provision.
Association Release Provide association 80 hours of release time per calendar
Time year.
Limited Reopener Either party can reopen the following economic articles in
the MOU for negotiations during the 2020-2021 fiscal year
through a limited reopener subject to the requirements set
forth in this article: Articles III and XIV (Section 3). In order
for either party to invoke this limited reopener: 1)there must
be a fiscal year-over-year (from 18-19 to 19-20) increase or
decrease in sales tax revenue received by the City greater
than 10%, and 2) either party must provide written notice of
its request and intent to reopen MOU negotiations for this
limited purpose in writing to either party during the following
dates: December 15, 2020 through January 15, 2021.
ITEM 4 46/11/2019
Language Changes Implement mutually agreed language clean-up to conform
MOU to current practices or agreements.
The City of Orange Police Management Association took this to a vote of their
membership and ratified the proposal on May 30, 2019. City Council approval is required
to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENT
• Resolution No. 11165
ITEM s 06/11/2019
RESOLUTIQN NO. 11165
A RESOLUTION OF TI�� CITY COUNCIL OF TH� CITY OF
ORANG� ESTA$LISHING A L�TT�R OF UN�ERSTANAING
BETWEEN TH� CITI' OF QRANGE AND TH� CITY OF QR�INGE
POLICE 11�ANAGEM�NT ASSOCIATIQN, EFF�CTI��E JULY 1, 2019
TH�ZOL]GH JUNE 3p,2p22
WHEREAS, tl�e Cit� of Orange, hereinafter referred to as "City," and the City of
Orange Police Management Association hereafter referred to as the "Association" have met
and conferred in accordance with the requirements of tl�e Meyers-1klilias-Brown Act; and
WHEREAS,the City and the Association have reached 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 I�irector concerning the
proposed employment terms contained in the attached Letter of Understanding;
NOW, THEREFORE, BE IT RESQLVED by the City Council of the City of
Orange that the attached Letter of LJnderstanding is approved and incorporated by reference as
Exhibit"A."
i
ADOPTED this l l�h day of June 2019.
Mark A. Murphy, l�rlayor of the City of Orange
ATTEST:
Pamela Coleman, City Clerk of the City of Qrange
1
/
I, PAMELA COLEMAN, 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 l lt" day of June 2Q19 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL 1�!IE1�rIBERS:
ABSTAINED: COUNCIL MEMBERS:
Pamela Coleman,
City Clerk of the City of Orange
2
EXHIBIT "A"
A L�TTER OF UNDERSTANDING
BETVVEEN TH� CITY OF ORANGE AND
THE CITY OF QRANGE PpLICE MANAGE1kIENT ASSOCIATION
EFFECTIVE JULY 1, 2019 THROUG�I JUNE 30,2022
This Letter of Understanding ("LOU") is entered into by and between the City of Orange and the
City of Orange Police Management Association.
Recitals
A. The City of Orange (hereafter, "City") and the City of Orange Police Management
Association("Association") hereby enter into this LOU effective July 1, 2019.
B. The parties agree to incorporate the language addressed in this LOU into a new
Memorandum of Understanding ("New 1�rI0U"), 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 "MOLJ" in this LOU shall be to that Memorandum of
Understanding by and between the City and the Association adopted by City Council Resolution
No. 11110. 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.
A�reement
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 membership and approval of the City Council.
2. Salary (Attached as Apnendix "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. SWAT Team (MOU Article X, Section 1(A))
Modify Article X, Section 1(A) of the MOU to eliminate the six (6) position cap for Police
Lieutenant and/or Police Sergeant classifications.
3
4. Bilin$ual Pav (MOU Article X, Section 2)
Modify Article X, Section 2 of the MOU to increase bilingual bonus from $225.00 to $275.00
per month.
5. Longevitv/Retention Pav (MOU Article X, Section 5)
Modify Article X, Section 5 to create monthly premium for longevity/retention pay for years of
service. (Existing Article 5 will move to new Section 6.)
I
• 1 � � i
June 23, 2019 $150.Op $300.00 $500.00
June 21, 2020 $200.00 $40p.00 $650.00
June 20, 2021 $250.0Q $500.00 $800.00
For purposes of this benefit, years 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 officer. 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.
6. Career Development Program (MOU Article XI, Section 1)
Modify Article XI, Section 1 as follows:
�
�
�
POST Advanced Certificate and $600.00 $700.00
Bachelor's De ree
POST Advanced Certificate and $725.00 $950.00
Master's De ree
7. Vacation Conversion (MOU Article XIV, Section 3)
Modify Article XIV, Section 3 as follows:
Each employee may, during the 2019-20, 2020-21 and 2021-22 fiscal years, convert up to 50% of
the amount of vacation the employee earns during each applicable fiscal year into cash in lieu of
the time off with pay. An employee requesting such a conversion must meet the eligibility
requirements as set forth in Sections 1 and 2 above, and may so convert twice in a calendar year,
within the cap provisions stated above.
4
8. Sick Leave Hours into Retirement Health Savings Plan (MOU Article XVI, Section 5(G))
Modify Article XVI, Section 5(G) of tl�e MOLJ to provide, effective no later than July 1, 2020, a
portion of sick leave payout upon separation, as determined by the Association, may be deposited
into a retirement health savings plan to be established by the City for all covered by this MOU.
9. Bereavement Leave (MOU Article XVI, Section 6)
Modify Article XVI, Section 6 of the MOU to broaden the definition of"immediate "family" by
including: 1) any relation by blood, marriage or adoption, who is a member of the employee's
household (living at the same address); or 2) any parent, substitute parent, parent-in-law, grand
parent, aunt, uncle, spouse, child, brother, sister, domestic partner, the employee's, spouse's or
domestic partner's child, grandchild, parent, substitute parent, grandparent, sibling, aunt, or uncle
of the employee, regardless of residence. Provision will mirror that of the City of Orange Police
Association.
10. Health Insurance(MOU Article XVIII, Section 1(B))
Modify Article XVIII, Section 1(B) of the MOU to increase the City's monthly contributions as
follows:
�
� � �
Current $1,655.00
Januar 1, 2020 $1,730.00
Janu 1, 2021 $1,805.00
Janua 1, 2022 $1,880.00
11. PERS Cost Sharin� (MOU Article XIX Section 1 (D))
Modify Article XIX 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.
12. PERS Leve14 Survivor Benefit for Miscellaneous Members (MOU Article XIX, Section (H))
Modify Article XIX, Section 19.1 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
5
Option (California Goverr�ment Code Section 21574) �or miscellaneous members; miscellaneous
members shall pay their $2.00 monthly cqntribution through payroll deduction. The City shall
pay the employer portion subaect to the following limit: in the event the employer portion
exceeds $6.00 monthly, miscellaneous members agree tq pay any portion of the employer portion
that exceeds $6.00 monthly. T$is benefit shall be contingent upon all affected bargaining units
contractually agreeing to this provision.
13. Association Release Time (MOU Article XXII, Section 3)
Modify Article XXII to add new Section 3 of the MOU to provide 80 hours of association release
time per calendar year.
14. Limited Reonener(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 XIV (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 sales tax
revenue received by the city greater than 10%, and 2) either party must provide in 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. Upon 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 this
limited reopener is included in the current MOU only and expires June 30, 2022. Any inclusion
of a like or similar article in future MOiJs will be subject to the meet and confer process.
15. Lan�ua�e Chanses
Implement mutually agreed laMguage clean-up to conform MOU to current practices or
agreements.
16. Status of MOU
Except as specifically provided and amended herein, the terxns 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 LpU and the New MOU shall expire on
June 30, 2022.
6
City of Qrange City o� Qrange PoliGe Management
Association
Dated: �ated:
By: By:
�Vill Kolbow,Administrative ServicEs Director Stephen$lfelt, President
By: $y:
Monica Espinoza,Assistant Human Resources Director Scott Trausch, Board Member
By: By:
Susan Galvan,Economic Development Manager Ray Winick, Board 1�/Iember
By: By:
Cody Kleen, Human Resources Analyst II Aaron Towner, Board Member
Approved as to form:
Gary A. Sheatz, City Attorney
7
Appendix "A"
CITY OF QRANGE POLICE MANAGEMENT ASSQCIATION
MONT�iLY SALARY RANG�S
EFFECTIVE JULY 8, 2018
Increase Current Step G 1.5% for Captains and Non-Sworn
Increase Current Step H 1.5% for Lieutenants and Sergeants
STEP A STEP B STEP C STEP D STEP E STEP F STEP G STEP H
After 1 After After 1 After 1 After 1 After 1 After 1
Salary Year Year Year Year Year Year Year
� Classification Title Ran e
Forensic Services Supv 603 7217 7586 7971 8378 8806 9254 9578 N/A
Police Captain 715 12616 13261 13935 14647 15394 16179 16745 N/A
Police Lieutenant 675 10335 10863 11415 11998 12610 13253 14048 14539
Police Records Manager 596 6969 7325 7697 8091 8504 8937 9250 N/A
Police Sergeant 633 838] 8810 9258 9730 10227 10748 11393 11792
EFFECTIVE JUNE 23, 2019
3.0% Across the Board Salary Increase
STEP A STEP B STEP C STEP D STEP E STEP F STEP G STEP H
After 1 After 1 After 1 After 1 After 1 After 1 After 1
Salary Year Year Year Year Year Year Year
Classification Title Ran e
Forensic Services Supv 609 7436 7816 8213 8633 9073 9535 9869 N/A
Police Captain 721 12999 13664 14359 15092 15862 16670 17254 N/A
Police Lieutenant 681 10648 11193 11762 12362 12993 13655 14475 14981
Police Records Manager 402 7181 7548 7931 8336 8762 9208 9531 N/A
Police Sergeant 639 8636 9078 9539 10026 10538 ]1075 11739 12150
8
Appendix "A" (Continued)
CITY OF ORANGE POLICE MANAGEMENT ASSOCIATION
MONTHLY SALARY RANGES
EFFECTIVE JUNE 21, 2020
2.0% Increase for Non-Sworn Classifications
3.5% Increase for Sworn Classifications
STEP A STEP B STEP C STEP D STEP E STEP F STEP G STEP H
Salary After 1 After 1 After 1 After 1 . After 1 After 1 After 1
Classification Title Ran e Year Year Year Year Year Year Year
Forensic Services Supv 613 7586 7974 8379 8807 9256 9727 10068 N/A
Police Captain 728 13461 14149 14869 15628 16425 17263 17867 N/A
Police Lieutenant 688 11027 11590 12180 12802 13455 14140 14989 15513
Police Records Manager 606 7325 7700 8091 8504 8938 9394 9723 N/A
Police Sergeant 646 8943 9400 9878 10382 10912 11468 12156 12582
EFFECTIVE JUNE 20, 2021
2.0% Increase for Non-Sworn Classifications
3.5% Increase for Sworn Classifications
STEP A STEP B STEP C STEP D STEP E STEP F STEP G STEP H
After 1 After 1 After 1 After 1 After 1 After 1 After 1
Salary Year Year Year Year Year Year Year
Classification Title Ran e
Forensic Services Supv 617 7739 8134 8547 8984 9443 9924 10271 N/A
Police Captain 735 13939 14652 15397 16184 17009 17876 18502 N/A
Police Lieutenant 695 11418 12002 12612 13257 13933 14643 15521 16065
Police Records Manager 610 7473 7855 8254 8676 9119 9583 9919 N/A
Police Sergeant 653 9261 9734 10229 10751 11300 11875 12588 13029
9