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03.63 Fire Management Letter of Understanding 7-1-2019 ,rvAn't.'t".,A,��� �,"�/'�O�O� `.,ryY s�`�L:-••'Po'"•..9 ti`,���GOA AATF��G� U' * �� AGENDA ITEM *: ����,. ;* �••''�;.''„' .f� �x,..<•� Q' �A,� ��' � `Q v ... `ti,..�:!.`5.d" �1�'-�fL 8:16�:•��`' ����� 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, $E IT R�SOLVE� by the City Council of the City of Orange that the attached Letter of Understanding is approved and incorporated by reference as Exhibit"A." ADOPTED this l lt" day of June 2019. Mark A. Murphy, Mayor of the City of Orange ATTEST: Pamela Coleman, City Clerk of the City of Orange 1 I, PAMELA COLEMAN, City Clerlc of the City of qrange, California, do k�ereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 11�h day of June 2019 by the following vote: AYES: COUNCIL MEMBERS: NQES: COvNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEI�IBERS: Pamela Coleman, City Clerk of the City of Orange 2 EXHI$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 3 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, 4 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 5 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. 6 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 7 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. 8