60A - AGREEMENT WITH THE FIREMEN'S BENEVOLENT ASSOCIATION

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Understanding (with an expiration date of June 30, 2014) between the City and the SAFBA will no longer have effect. 3. Relinquishment of Salary Increase: The Memorandum of Understanding (with an expiration date of June 30, 2014) between the City and the SAFBA provides that employees of the SAFBA shall receive a salary increase of 2.5% effective January 1, 2012. That salary increase was implemented on January 1, 2012 and the increase was reflected in SAFBA members' paychecks effective on the payroll checks following January 1, 2012. The City and the SAFBA agree the salary increase is rescinded and shall not be provided on any paychecks beyond the first paycheck of 2012 and that leave payoffs to which the parties have agreed herein will not reflect the 2.5% increase. 4. Transitioning Employees or New Hires: All sworn employees shall be deemed "transition ing" employees on the effective date that firefighting and related services are contracted out. Transitioning Santa Ana Employees will receive the top step base salary (Step 12) plus applicable bonus pays (per MOU) for the rank that the employee transitioned into, unless the Santa Ana employee's total compensation (base salary plus applicable bonuses) is not currently comparable or equivalent to the OCFA Step 12. In that case, the OCFA Human Resources Director will select the closest comparable salary rate from the applicable OCFA salary schedule that that does not provide the employee with a decrease from the amount of the employee's current Santa Ana compensation (salary plus bonuses only). The intent is for transitioning employees not at top step to receive a base pay rate so that when considered with their applicable OCFA bonus pay(s) their compensation is as close as possible to their current Santa Ana compensation as defined. Notwithstanding the foregoing, SAFBA employees at top step in Santa Ana (as of the date of transition) who will not transition over at top step at OCFA (Step 12) shall receive a monthly stipend from the City of Santa Ana (for which they will receive an IRS Form 1099) equal to the difference between their base salary at the step they are placed by OCFA and Step 12 of the OCFA salary schedule. The stipend shall expire at the earlier of two years from the date of transition or the date the employee is moved to Step 12. The list of transitioning employees and their applicable base salary step with OCFA is attached hereto as Exhibit 1. All non- sworn employees hired by OCFA shall be deemed new hires and shall be paid at the salary step as attached hereto as Exhibit 2. The parties agree that there is one sworn employee of the SAFBA who, pursuant to a separate agreement with the City, will remain an employee of the City until June 7, 2012 and will not transition to the OCFA. The employee is not a party to this MOU. The parties further agree that there will be one additional Captain position (for a total of 39 Captains notwithstanding the list of 38 Captains transitioning over to the OCFA set forth in Exhibit 1) transitioning over to the OCFA in the position of Administrative Captain. That Administrative Captain position will either be filled by an existing member of the Santa Ana Fire Management Association or a member of the SAFBA. 5. Sworn Members Demoted: The City shall pay directly to any sworn member of the SAFBA who is demoted in rank as a result of the decision to contract firefighting and related services to OCFA a monthly stipend (for which former Santa Ana SAFBA members receiving such stipend will receive an annual IRS Form 1099 for the stipend income 2 60A-6