SIDE LETTER OF AGREEMENT
CITY OF COSTA
AND
THE COSTA MESA FIRE MANAGEMENT ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa Mesa Fire Management Association (Association) (collectively “Parties”) is entered into with respect to the following:
WHEREAS, the Parties are currently parties to a Memorandum of Understanding (MOU) with a term that expired on June 30, 2022, but was extended by a side letter (Attached hereto as Exhibit A) to expire on June 30, 2024; and
WHEREAS, the side letter in Section 3.4 provided that if any other bargaining unit in the City receives (through the labor negotiations process) a net base salary or certification/specialty/incentive pay increase that goes into effect on any date between July 1, 2022 and June 30, 2023 or July 1, 2023 and June 30, 2024, employees in the CMFMA will receive the same net base salary or certification/specialty/incentive pay increase on the same effective date as the other association.
WHEREAS, based on the side letter and increases provided to other bargaining units; the following memorializes the parties’ agreement.
The Parties agree to the following modifications to their MOU effective (except as otherwise provided below) upon City Council approval of this Agreement on March 7, 2023 as reflected by the track changes to each of the articles below.
ARTICLE 3 - BASIC SALARIES AND WAGES
3.2 SALARY ADJUSTMENTS – The salary adjustments will be implemented for the benchmark class of Battalion Chief and applied equally to Division Chief . The City will adjust the monthly base salary for CMFMA members based on the following:
Sixth Year of the Agreement -–Effective the pay period that includes July 1, 2022, monthly base salary of represented employee shall be increased by 2%. Effective the pay period that includes January 1, 2023, monthly base salary of represented employees shall be increased by 2% Seventh Year of the Agreement -– Effective the pay period that includes July 1, 2023, monthly base salary of represented employee shall be increased by 5%.
3.4 RECRUITMENT AND RETENTION INCENTIVE PAY
Recruitment and Retention Incentive Pay is compensation to incentivize Fire Department sworn employees to remain with the City of Costa Mesa.
Effective the pay period including the pay date of January 6, 2023, employees in this bargaining unit who have been employed in a full-time classification that is represented by this bargaining unit or the Costa Mesa Firefighters Association (i.e. Firefighter, Fire Engineer, Fire Captain, Battalion Chief or Fire Division Chief) in a municipal, state or federal fire department or other agency (as determined by the Fire Chief) for twenty-five (25) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa) shall receive recruitment and retention incentive pay of ten percent (10%).
Service in any classification other than Firefighter, Fire Engineer, Fire Captain, Battalion Chief or Fire Division Chief will not count towards for this purpose.
ATTACHMENT 2
The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 California Code of Regulations, Section 571 and 571.1.
ARTICLE 6 - RETIREMENT
6.1 A 4. Cost Sharing:
a. Employees in tier 1 subject to the 3%@50 formula pay additional retirement contributions into their employee account with PERS as cost sharing as follows:
iii. Effective the pay period that includes July 1, 2023, for Classic member employees subject to the 3%@50 formula, cost sharing per Government Code section 20516(a) will be reduced by one and one quarter percent (1.25%) for a net contribution of three and three quarters’ percent (3.75%) per Government Code section 20516(a). Effective the pay period that includes July 1, 2023, cost sharing per Government Code Section 20516(f) will be reduced to 3%. When the three and three quarters’ percent (3.75%) per 20516(a) and three percent (3%) per 20516(f) is added to the employees’ payment of nine percent (9%) towards their member contribution, employees shall pay fifteen and three quarters’ percent (15.75%) compensation earnable towards their pension. b. Employees in tier 2 subject to the 2%@50 formula pay additional retirement contributions into their employee account with PERS as cost sharing as follows:
iv. Effective the pay period that includes July 1, 2023, for Classic member employees subject to the 3%@50 formula, cost sharing per Government Code section 20516(f) will be reduced by one and one quarter percent (1.25%) for a net contribution of six and three quarters’ percent (6.75%) per Government Code section 20516(f). When the three and three quarters’ percent (6.75%) is added to the employees’ payment of nine percent (9%) towards their member contribution, employees shall pay fifteen and three quarters’ percent (15.75%) compensation earnable towards their pension.
6.1 B 4. Cost Sharing:
a. Employees who are defined as “New Members” by the PEPRA and who subject to the
2.7%@57 formula pay additional retirement contributions as cost sharing as follows:
iii. Effective the pay period that includes July 1, 2023, for new member employees subject to the 2.7%@57 formula, if one-half of the CalPERS’ annual normal cost rate goes below 15.75% (and it is rounded by CalPERS to the nearest one-quarter of a percent), new member employees subject to the 2.7%@57 formula shall pay the difference between the one-half of the total normal cost rate and fifteen and three-quarters percent (15.75%) of compensation earnable as cost sharing pursuant to Government Code section 20516(f).
Effective the pay period that includes July 1, 2023, for new member employees subject to the 2.7%@57 formula, if one-half of the CalPERS’ annual normal cost rate exceeds
15.75% (and it is rounded by CalPERS to the nearest one-quarter of a percent), the City will contribute the amount above 15.75% to the deferred compensation account (per IRS Code section 457(b)) of each new member.
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
FIREFIGHTERS ASSOCIATION COSTA MESA
JASON PYLE LORI ANN FARRELL HARRISON
CMFMA President City Manager
CHRISTOPHER H. COATES ALMA L. REYES
CMFMA Negotiations Team Member Assistant to the City Manager __________________________________
WILLIAM H. KERSHAW CAROL L. MOLINA
CMFMA Negotiations Team Member Finance Director
TIMOTHY J. VASIN KASAMA LEE
CMFMA Negotiations Team Member Human Resources Manager