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����� June 11, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Will Kolbow, Administrative Services Director !✓y.l�s2�
REVIEW: City Manager Finance ��
1. SUBJECT
Resolution No. 11167—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, 2019, to June 30, 2022.
2. SUMMARY
Resolution No. 11167 establishes a Letter of Understanding between the City of Orange
and the Orange Fire Management Association effective July 1, 2019, to June 30, 2022.
3. RECOMMENDED ACTION
Approve Resolution No. 11167.
4. FISCAL IMPACT
Costing summary:
Fiscal Year 2019-20
Cost Descri tion General Fund
Cost of Base Sala Increase $57,000
Savin s from CaIPERS Cost Sharin 8,400
Cost of Ne otiated Benefits 44,400
Total Annual Cost $93,000
Fiscal Year 2020-21
Cost Descri tion General Fund
Cost of Base Sala Increase $101,500
Savin s from CaIPERS Cost Sharin 17,300
Cost of Ne otiated Benefits 52,100
Total Annual Cost $136,300
ITEM 3 ,�3 � 06/11/2019
Fiscal Year 2021-22
Cost Descri tion General Fund
Cost of Base Sala Increase $147,300
Savin s from CaIPERS Cost Sharin 26,800
Cost of Ne otiated Benefits 56,600
Total Annual Cost $177,100
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 April 2019, the City began the collective bargaining process with the Orange Fire
Management Association. The current contract between the parties expires on June 30,
2019.
After four 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 4% effective June
23, 2019, the first pay period containing July 1.
Effective the pay periods beginning June 21, 2020 and June
20, 2021, a 1-3% base salary increase shall be granted
based on the median salary for the classification of
Firefighter among the cities of Anaheim, Brea, Costa Mesa,
Fountain Valley, Fullerton, Garden Grove, Huntington
Beach, Laguna Beach, Newport Beach, Orange, and
Orange County Fire Authority.
Monthly Salary Tables are attached as Appendix "A".
Longevity Pay Create Longevity Pay for years of service as follows:
.
- . . . - . .
.
15 $200
20 $400
25 $600
�
ITEM � 2 06/11/2019
Educational Incentive Increase the educational incentive amounts as follows:
� . . . � . • .
.
AA/AS $190 $200
BA/BS $330 $400
MA/MS $390 $600
PERS Cost Sharing Modify provision to incorporate "Classic members" to pay an
additional 3% cost sharing toward the City contribution as
follows:
• 1% effective June 23, 2019;
• 1% effective June 21, 2020;
• 1% effective June 20, 2021.
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 X (Section 10.3). 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.
Orange Fire Management Association took this to a vote of their membership on May 16,
2019 and ratified the proposal. City Council approval is required to finalize this agreement
in the form of a Letter of Understanding.
7. ATTACHMENT
• Resolution No. 11167
ITEM 3 06/11/2019
RESOLUTIQN 1�0. 11,167
A RESOLUTIpN OF THE CITY CpUNC��. OF THE CITY OF
ORANGE �STABLISI�ING A LETTER QF UNDERSTANDING
BETWEEN THE CITY OF QRANG� AND TH� ORANGE FIR�
MANAGEMENT ASSOCIATION EFFFCTIVF ,JULY 1, 2019
THROUG�I JUN� 30,2022
WHEREAS, the City of Qrange, hereinafter referred to as "City," and the Orange
Fire Management Association hereafter referred to as �he "Association" have met and
conferred in accordance with the reyuirements of the 1kleyers-Milias-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 qrange has consulted with the
Administrative Services Director and Assistant Human Resources Director concerning the
proposed employment terms contained in the attached Letter of Understanding;
NQW, THEREFQRE, $E IT R�SOLVE� by the City Council of the City of
Orange that the attached Letter of Understanding is approved and incorporated by reference
as Exhibit"A."
ADOPTED this l lt" day of June 2019.
Mark A. Murphy, Mayor of the City of Orange
ATTEST:
Pamela Coleman, City Clerk of the City of Orange
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I, PAMELA COLEMAN, City Clerlc of the City of qrange, California, do k�ereby certify that
the foregoing Resolution was duly and regularly adopted by the City Council of the City of
Orange at a regular meeting thereof held on the 11�h day of June 2019 by the following vote:
AYES: COUNCIL MEMBERS:
NQES: COvNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEI�IBERS:
Pamela Coleman,
City Clerk of the City of Orange
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EXHI$IT "A"
A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ORA�IGE AND
THE ORANGE FIRE MANAGEMENT ASSOCIATION
EFFECTIVE JULY 1,2019 THROUGH JiJNE 30,2022
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("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 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. 11108. 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 4% effective June 23, 2019.
For the base salary increases effective the pay period beginning June 21, 2020 and June 20,
2021, the classification of Fire Battalion Chief shall be surveyed among the cities of Anaheim,
Brea, Costa Mesa, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Laguna
Beach, Newport Beach, Orange, and OCFA. For those cities that no longer have the
classification of Fire Battalion Chief, they shall not be considered for the purposes of
surveying. The City shall obtain base salary data from fully adopted and executed Memoranda
of Understanding of the aforementioned cities as of May 1, 2020 (for the June 21, 2020
increase) and May 1, 2021 (for the June 20, 2021 increase). An across-the-board increase shall
be granted in the difference between the then-in-effect maximum base salary for Fire Battalion
Chief of the City and median maximum base salary for Fire Battalion Chief of the
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aforementioned cities of what would be in effect as of June 21, 2020 and June 20, 2021,
respectively, rounded up to the nearest half-percent (for example, if the City is below the
median by 2.2%, an increase of 2.5% will be granted). I�owever, in no event shall the
increases be lower than 1%, nor higher than 3%. The City shall notify the Association of the
result of the survey and calculation no later than 1k1ay 8, 2020 (for the July 1, 2020 increase)
and May 7, 2021 (for the July 1, 2021 increase). The Association will then have ten calendar
days after notification to dispute the City's findings and calculation. If the Association wishes
to dispute the findings, the parties agree to meet as promptly as possible in good faith to come
to an agreement on tl�e increase. If the dispute goes aeyond July 1, 2020 or July 1, 2021,
respectively, there shall be no retroactivity upon resolution of the disputed figures.
3. Health Insurance (MOU Article VI, Section 6.1(C)1
Modify Article VI, Section 6.1C of the MQU to increase the City's monthly contributions as
follows:
� � �
� � � �
Current $1,655.OQ
Janu 1, 2020 $1,730.00
Janu 1, 2021 $1,805.00
Janua 1, 2022 $1,880.00
4. Lon�evitv Pav (MOU Article III, Section 3.13)
Modify Article III, Section 3.13 to create longevity pay for years of service. Years of service
will be defined as the total number of years of service with the Orange City Fire I�epartment.
This form of compensation, also referred to as "Longevity Pay," shall be reported to Ca1PERS
as special compensation and therefore compensation earnable pursuant to California Public
Employees' Retirement System(PERS) Regulations, Section 571(a)(1).
� �
� �
15 $200.00
20 $400.00
25 $600.00
5. Educational Assistance and Professional Develonment (MOU Article VII, Section 7.1)
Eliminate Section 7.2 and modify Section 7.1 as follows:
The City will reimburse employees, up to $1,500.00 per fiscal year, for the following costs
associated with the furtherance of inembers' education and professional development:
A) Cost of tuition, textbooks, and other course-related fees required for approved
community college courses, university courses, and courses certified through
California State Fire Training, or any similar recognized agency, at the Local,
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State, and Federal level. Course-required equipment that is available to be
borrowed from the City is not eligible for reimbursement;
B) Registration at job-related professional conferences, seminars and training
classes;
C) Payment of inembership dues in community and professional organization;
D) Purchase of job-related professional journals, books, and other written
materials which further their knowledge and improve their effectiveness in
their duties.
An approved course, conference, seminar, or training class is one designed to directly improve
the knowledge of the employee relative to his specific job and must be approved by the Fire
Chief and the Human Resources/Employee Relations Director prior to registration. The
employee must still be employed by the City when the course or class is completed. Costs
associated with travel, lodging, meals (or per diem), parking, or other costs as defined in
Article XIII of this Agreement are not eligible for reimbursement under this section. Proof of
attendance and/or purchase of course, conference, seminar, training class, or publication is
required prior to reimbursement. With respect to courses where achievement grades are
provided, a final grade of"C" or better, or a Pass in a pass/fail course, is required in order to be
eligible for reimbursement.
6. Educational Incentive Pro�ram (MOU Article VII, Section 7.31
Eliminate Section 7.3 and modify to new Section 7.2 as follows:
� � � � �
AA/AS $190.00 $200.00
BA/BS $330.00 $400.00
MA/MS $390.00 $600.00
7. PERS Cost Sharing (MOU Article XXII, Section 12.5)
Amend Article XII Retirement, Section 12.5 PERS Member Contribution — Tier 1; to add:
Effective the pay period beginning June 23, 2019, safety employees who are "classic
members" shall contribute an additional 1% 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% of
PERS-reportable income. Effective the pay period containing June 21, 2020, safety employees
who are "classic members" shall contribute an additional 1% 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 11% of PERS-reportable income. Effective the pay period containing June 20, 2021, safety
employees who are "classic members" shall contribute an additional 1% of their PERS-
reportable income, on a pre-tax basis toward the City contribution pursuant to the cost sharing
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arrangement set foi�th in Ca�i�ornia Gqvernment C�de Section 20516(�, increasing the
employee contribution tq 12% of PERS-reportable income.
8. Limited Reonener (MOU Article XXII, Section 22.21
Modify Article XXII to add new Section 22.2 into MOU as follows:
Either pariy 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 X (Section 10.3). 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 �ollowing dates: Iaecember 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 MOUs will be
subject to the meet and confer process.
9. Langua�e Chanses
Implement mutually agreed language clean-up to conform 1kI0U to current practices or
agreements.
10. 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 LqU and the
New MOU shall expire on June 3p, 2022.
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City of Orange Qrange Fire Management
Association
Dated: Dated:
By: By:
Will Kolbow,Administrative Services Director Robert J. Stefano, President
By: By:
Monica Espinoza,Assistant Human Resources Director Sean P. deMetropolis, Vice President
By:
Erin Hodges, Senior Human Resources Analyst
By:
Aaron Schulze, Senior Administrative Analyst
Approved as to form:
Gary A. Sheatz, City Attorney
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Appendix "A"
ORANGE FIRE MANAGEMENT ASSOCIATION
MpNTHLY SALARY RANGES
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
EFFECTIVE JUNE 23, 2019
4.0% Across the Board Salary Increase
NEW STEP STEP STEP STEP STEP STEP
Classi�cation Title RANGE A B C D E F
Fire Battalion Chief 682.5 10728 11277 11850 12455 13091 13758
Increases effective June 21, 2020 and June 20, 2021 will be implemented pursuant to Section 2
of this LOU.
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