Agenda Item
City Council
Item #: 3.15. 5/23/2023 File #: 23-0332
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. SUBJECT
A Letter of Understanding between the City of Orange and the City of Orange Police Management Association effective July 1, 2023, through June 30, 2026. Resolution No. 11459.
2. SUMMARY
Resolution No. 11459 establishes a Letter of Understanding between the City of Orange and the City of Orange Police Management Association effective July 1, 2023, through June 30, 2026.
3. RECOMMENDED ACTION
Adopt Resolution No. 11459. A Resolution of the City Council of the City of Orange establishing a Letter of Understanding between the City of Orange and the Orange Police Management Association effective July 1, 2023, through June 30, 2026.
4. FISCAL IMPACT
Fiscal Year 2023-24
Cost Description General Fund All Other Funds
Cost of Base Salary Increase$284,126 $ 8,185
Cost of Negotiated Benefits and Expenses410,776 11,833
Total Annual Cost $694,902 $20,018
Fiscal Year 2024-25
Cost Description General Fund All Other Funds
Cost of Base Salary Increase$589,045 $16,968
Cost of Negotiated Benefits and Expenses568,169 16,367
Total Annual Cost $1,157,214 $33,335
Fiscal Year 2025-26
Cost Description General Fund All Other Funds
Cost of Base Salary Increase$726,709 $20,934
Cost of Negotiated Benefits and Expenses655,710 18,889
Total Annual Cost $1,382,419 $39,823City of Orange Printed on 5/18/2023Page 1 of 4 powered by Legistar™
Item #: 3.15. 5/23/2023 File #: 23-0332
Fiscal Year 2025-26
Cost Description General Fund All Other Funds
Cost of Base Salary Increase$726,709 $20,934
Cost of Negotiated Benefits and Expenses655,710 18,889
Total Annual Cost $1,382,419 $39,823
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
e: Attract, retain and develop quality employees dedicated to public service.
6. DISCUSSION AND BACKGROUND
On March 9, 2023, 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, 2023.
After five meetings, on April 27, 2023, the parties reached agreement on the terms and conditions of a three-year labor contract that includes the following:
Provision Description
Term of Agreement July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be
granted for sworn members. · Effective the pay period
beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn members. · Effective the pay periods beginning June 18, 2023, June 30, 2024, and June 29, 2025, a base salary increase of 3.0% shall be granted for non-sworn members. · Modify Article III, Section 2 to reflect adjustment for Step G for Police Captain and Step H for Police Lieutenant and Police Sergeant from 3.5% to 4%
effective June 18, 2023. Monthly Salary Tables are attached as Appendix “A.”
Health/Life Insurance · Modify City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1,
2026 $2,105.00 · Modify Article XVI, Section 1(C) to
state effective June 18, 2023, the cash in lieu medical waiver amount of $500.00 per month will remain fixed indefinitely. In the case of future promotional hires from City of Orange Police Association (COPA) to Police Management
Association (PMA), the waiver amount will be $500.00 per month, irrespective of the waiver amount that COPA
employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in COPA will not be able to retain it and will instead default to the current waiver amount under PMA. · Modify life
insurance benefit from $50,000 to $75,000.
Bilingual Pay Modify bilingual pay from $275 to $300 per month.
Longevity Pay Modify longevity pay for 25 years of service to $1,250.00 per month. Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $250.00 $500.00 $800.00 June 18, 2023 $250.00 $500.00 $1,250.00
Sick Leave Conversion
into Retirement Health
Savings Plan (RHSP)
Modify provision to allow for members with 1,000 sick leave hours or more to receive 60% sick leave conversion with 20 years of service into RHSP and 70% sick leave conversion with 25 years of service into RHSP with no hours cap.
Employees with less than 1,000 hours of sick leave will default to the current formula with the cap of 352 hours.
Years of service will be defined in the same manner as
Longevity.
Administrative Leave
into Retirement Health
Savings Plan (RHSP)
Modify Article VI, Section 16(E) to allow for classifications of Police Captain and Police Lieutenant to convert any unused hours from the annual 80-hour allotment of Administrative Leave into the existing RHSP.
Elimination of
Classification
Eliminate classification of Forensic Services Supervisor.
Residency
Requirement
All personnel hired (after June 25, 2023, following approval and adoption of this Agreement) by the Orange Police
Department shall be a permanent and full-time resident of the State of California and reside no further than one
hundred (100) road miles from Police Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Police Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in
service) are exempt.
Limited Reopener The City can reopen Article III (Salaries) and/or Article XII, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this article. In order for the City to invoke this limited reopener:
1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than 10%, and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited
purpose to the Association during the following dates:
December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025. 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, 2026.
Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-Employee
Labor Relations
Resolution
Parties have met and discussed Employer-Employee Labor
Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language Cleanup Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
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Item #: 3.15. 5/23/2023 File #: 23-0332
Provision Description
Term of Agreement July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be
granted for sworn members. · Effective the pay period
beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn members. · Effective the pay periods beginning June 18, 2023, June 30, 2024, and June 29, 2025, a base salary increase of 3.0% shall be granted for non-sworn members. · Modify Article III, Section 2 to reflect adjustment for Step G for Police Captain and Step H for Police Lieutenant and Police Sergeant from 3.5% to 4%
effective June 18, 2023. Monthly Salary Tables are attached as Appendix “A.”
Health/Life Insurance · Modify City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1,
2026 $2,105.00 · Modify Article XVI, Section 1(C) to
state effective June 18, 2023, the cash in lieu medical waiver amount of $500.00 per month will remain fixed indefinitely. In the case of future promotional hires from City of Orange Police Association (COPA) to Police Management
Association (PMA), the waiver amount will be $500.00 per month, irrespective of the waiver amount that COPA
employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in COPA will not be able to retain it and will instead default to the current waiver amount under PMA. · Modify life
insurance benefit from $50,000 to $75,000.
Bilingual Pay Modify bilingual pay from $275 to $300 per month.
Longevity Pay Modify longevity pay for 25 years of service to $1,250.00 per month. Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $250.00 $500.00 $800.00 June 18, 2023 $250.00 $500.00 $1,250.00
Sick Leave Conversion
into Retirement Health
Savings Plan (RHSP)
Modify provision to allow for members with 1,000 sick leave hours or more to receive 60% sick leave conversion with 20 years of service into RHSP and 70% sick leave conversion with 25 years of service into RHSP with no hours cap.
Employees with less than 1,000 hours of sick leave will default to the current formula with the cap of 352 hours.
Years of service will be defined in the same manner as
Longevity.
Administrative Leave
into Retirement Health
Savings Plan (RHSP)
Modify Article VI, Section 16(E) to allow for classifications of Police Captain and Police Lieutenant to convert any unused hours from the annual 80-hour allotment of Administrative Leave into the existing RHSP.
Elimination of
Classification
Eliminate classification of Forensic Services Supervisor.
Residency
Requirement
All personnel hired (after June 25, 2023, following approval and adoption of this Agreement) by the Orange Police
Department shall be a permanent and full-time resident of the State of California and reside no further than one
hundred (100) road miles from Police Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Police Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in
service) are exempt.
Limited Reopener The City can reopen Article III (Salaries) and/or Article XII, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this article. In order for the City to invoke this limited reopener:
1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than 10%, and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited
purpose to the Association during the following dates:
December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025. 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, 2026.
Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-Employee
Labor Relations
Resolution
Parties have met and discussed Employer-Employee Labor
Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language Cleanup Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
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Item #: 3.15. 5/23/2023 File #: 23-0332
Provision Description
Term of Agreement July 1, 2023 through June 30, 2026.
Salary · Effective the pay periods beginning June 18, 2023 and June 30, 2024, a base salary increase of 5.0% shall be
granted for sworn members. · Effective the pay period
beginning June 29, 2025, a base salary increase of 2.0% shall be granted for sworn members. · Effective the pay periods beginning June 18, 2023, June 30, 2024, and June 29, 2025, a base salary increase of 3.0% shall be granted for non-sworn members. · Modify Article III, Section 2 to reflect adjustment for Step G for Police Captain and Step H for Police Lieutenant and Police Sergeant from 3.5% to 4%
effective June 18, 2023. Monthly Salary Tables are attached as Appendix “A.”
Health/Life Insurance · Modify City’s monthly contribution as follows: Effective Dates Monthly City Contribution Current $1,955.00 January 1, 2024 $2,005.00 January 1, 2025 $2,055.00 January 1,
2026 $2,105.00 · Modify Article XVI, Section 1(C) to
state effective June 18, 2023, the cash in lieu medical waiver amount of $500.00 per month will remain fixed indefinitely. In the case of future promotional hires from City of Orange Police Association (COPA) to Police Management
Association (PMA), the waiver amount will be $500.00 per month, irrespective of the waiver amount that COPA
employees are currently receiving under their MOU. This implies that individuals who have a higher waiver amount in COPA will not be able to retain it and will instead default to the current waiver amount under PMA. · Modify life
insurance benefit from $50,000 to $75,000.
Bilingual Pay Modify bilingual pay from $275 to $300 per month.
Longevity Pay Modify longevity pay for 25 years of service to $1,250.00 per month. Effective Date 15 Years of Service 20 Years of Service 25 Years of Service Current $250.00 $500.00 $800.00 June 18, 2023 $250.00 $500.00 $1,250.00
Sick Leave Conversion
into Retirement Health
Savings Plan (RHSP)
Modify provision to allow for members with 1,000 sick leave hours or more to receive 60% sick leave conversion with 20 years of service into RHSP and 70% sick leave conversion with 25 years of service into RHSP with no hours cap.
Employees with less than 1,000 hours of sick leave will default to the current formula with the cap of 352 hours.
Years of service will be defined in the same manner as
Longevity.
Administrative Leave
into Retirement Health
Savings Plan (RHSP)
Modify Article VI, Section 16(E) to allow for classifications of Police Captain and Police Lieutenant to convert any unused hours from the annual 80-hour allotment of Administrative Leave into the existing RHSP.
Elimination of
Classification
Eliminate classification of Forensic Services Supervisor.
Residency
Requirement
All personnel hired (after June 25, 2023, following approval and adoption of this Agreement) by the Orange Police
Department shall be a permanent and full-time resident of the State of California and reside no further than one
hundred (100) road miles from Police Headquarters. This presumes that a substantial portion of that distance will be traveled at freeway speed and that personnel can report to Police Headquarters within ninety (90) minutes of the request for call back. Employees hired before June 25, 2023 with continuous City of Orange employment (with no break in
service) are exempt.
Limited Reopener The City can reopen Article III (Salaries) and/or Article XII, Section 3 (Vacation Cash Out) of the MOU for negotiations during the 2023/2024 or 2024/2025 fiscal years through a limited reopener subject to the requirements set forth in this article. In order for the City to invoke this limited reopener:
1) There must be a fiscal year-over-year (from 2021/2022 to 2022/2023, or, from 2022/2023 to 2023/2024) decrease in net sales tax revenue received by the City greater than 10%, and 2) The City must provide written notice of its request and intent to reopen MOU negotiations for this limited
purpose to the Association during the following dates:
December 15, 2023 through January 15, 2024, or, December 15, 2024 through January 15, 2025. 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, 2026.
Any inclusion of a like or similar article in future MOUs will be subject to the meet and confer process.
Employer-Employee
Labor Relations
Resolution
Parties have met and discussed Employer-Employee Labor
Relations Resolution which shall be brought forward to City Council at a future date once all City bargaining groups have had an opportunity to review.
Language Cleanup Parties have agreed to incorporate several language changes into the New MOU to further clarify existing MOU provisions. There is no additional fiscal impact for these language changes.
The City of Orange Police Management Association took this to a vote of their membership and ratified the proposal on May 17, 2023. City Council approval is required to finalize this agreement in the form of a Letter of Understanding.
7. ATTACHMENTS
· Resolution No. 11459
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