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FIRE MANAGEMENT ASSNRESOLUTION 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 THROUGH JUNE 30,2022. WHEREAS, the City of Orange, hereinafter referred to as "City," and the Orange Fire Management 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 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 Director concerning the proposed employment terms contained in the attached Letter 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„ ADOPTED this l lth day of June 2019. Mark A. Murphy, Mayor, City f Or ge ATTEST: Pamela Coleman, City Clerk, City of Orange 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 11 th day of June 2019, by the following vote: AYES: COiJNCIL MEMBERS: Alvarez, Murphy,Nichols, Monaco NOES: COUNCIL MEMBERS: None ABSENT:COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None Pamela Coleman, City Clerk, City of Orange Resolution No. 11167 2 EXHIBIT "A" A LETTER OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE ORANGE FIRE MANAGEMENT ASSOCIATION EFFECTIVE JULY 1,2019 THROUGH JUNE 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 l, 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") 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 1 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 maYimum base salary for Fire Battalion Chief of the City and median maximum base salary for Fire Battalion Chief of the 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). However,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 May 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 the increase. If the dispute goes beyond 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)) Modify Article VI, Section 6.1 C of the MOU to increase the City's monthly contributions as follows: Current 1,655.00 Janu 1, 2020 1,730.00 Janu 1, 2021 1,805.00 January 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 tota.l number of years of service with the Orange City Fire Department. 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 2 5. Educational Incentive Pro ram (MOU Article VII, Section 7.3) Modify Section 7.3 as follows: AA/AS 190.00 200.00 BA/BS 330.00 400.00 MA/MS 390.00 600.00 6. PERS Cost Sharin (MOU Article XXII, Section 12.51 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(fl, 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-t 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 arrangement set forth in California Government Code Section 20516(, increasing the employee contribution to 12% of PERS-reportable income. 7. Limited Reonener(MOU Article XXII. Section 22.2) Modify Article XXII to add new Section 22.2 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 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 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 MOUs will be subject to the meet and confer process. 3 S. Langua e Chan es Implement mutually agreed language clean-up to conform MOU to current practices or agreements. 9. 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 3 0, 2022. City of Orange Orange Fire Management Association Dated: 1 O , Dated: $' By: By: Will Kolbow,Administrative Services Director Robe J. Stefan r ident I ji l~I 1;;1` By:By: Momca Espinoza,Assistant Human Resources Director S . deMetropolis, Vice President By: Erin Hodges, Senio uman Resources Analyst By:. Aaron Sch ze, Senior is ra ive Analyst Approved as to form: ary A. eatz, CiTy y 4