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and the SAFBA agree the salary increase is rescinded and shall not be provided on any 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