HomeMy WebLinkAbout14 - NB-1 - Approval of Amended Side Letter of Agree - 5/4/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: May 4, 2021 ITEM NUMBER: NB-1
SUBJECT: APPROVAL OF AMENDED SIDE LETTER OF AGREEMENTS AND RESOLUTIONS TO
ELIMINATE FURLOUGHS AND REIMBURSE FOR REDUCTIONS INCURRED
DATE: APRIL 26, 2021
FROM: CITY MANAGER’S OFFICE - HUMAN RESOURCES DIVISION
PRESENTATION BY: KASAMA LEE, HUMAN RESOURCES MANAGER
FOR FURTHER INFORMATION CONTACT: KASAMA LEE 714-754-5350
RECOMMENDATION:
1. Adopt Resolution Number 2021-XX (Attachment I), which revises the Executive
Compensation Plan and Executive Salary Schedule.
2. Adopt Resolution Number 2021-XX (Attachment II), which revises the Compensation
Plan and Salary Schedule for the Confidential Management Unit.
3. Adopt Resolution Number 2021-XX (Attachment III), which revises the Compensation
Plan and Salary Schedule for the Confidential Employees Unit.
4. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa Police Association (Attachment IV).
5. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa Police Management Association (Attachment V).
6. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa Firefighters Association (Attachment VI).
7. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa Fire Management Association (Attachment VII).
8. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa Division Managers Association (Attachment VIII).
9. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and
the Costa Mesa City Employees Association (Attachment IX).
10. Approve Second Amendment to Employment Contract between the City of Costa
Mesa and the City Manager (Attachment X).
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BACKGROUND:
In March 2020, mid-way through the budget development process, the City was faced
with the impacts of the worldwide coronavirus pandemic (COVID-19). The multiple
emergency proclamations of the United States President, State of California Governor,
and the City Manager for the City of Costa Mesa propelled the City into full emergency
management mode. On March 12, 2020, pursuant to Government Code Section 8558 (c)
and Chapter 1 of Title 6 of the City of Costa Mesa Municipal Code, the City Manager and
Director of Emergency Services issued an Emergency Declaration due to the
unanticipated and deadly COVID-19 worldwide outbreak. The City was faced with
significant and unprecedented workload and financial challenges due to the continuing
global COVID-19 pandemic. In addition to the devastating impacts on public health and
mortality, the impact of COVID-19 on the American economy was also severe. As a
result, numerous General Fund revenue sources were declining significantly including tax
revenues (e.g., sales tax, hotel tax, and business license tax, etc.).
ANALYSIS:
At the June 25, 2020 and July 21, 2020 City Council meetings, Side Letter Agreements
were approved to achieve the equivalency of a five percent (5%) furlough. The Side Letter
Agreements included language stating that a one-time payment would be made by the
City to the employees equivalent to the reductions taken should the City receive Federal
stimulus funds in excess of $40.5 million. To date, the City of Costa Mesa has received
CARES Act funding from the State of $1.4 million and the County of Orange of $1.0 million
totaling $2.4 million, and finally, the federal government recently approved American
Rescue Plan allocating $28.3 million to the City of Costa Mesa. Between CARES Act and
the American Rescue Plan, the City is expected to receive an estimated amount of $30.7
million. Pro-rated to the nine months into the current fiscal year, the stimulus funding
equates to an estimated $30.4 million. As a result, staff requested to cease the five
percent (5%) furloughs/reductions and provide staff with the one-time reimbursement for
the pay reductions implemented since July 1, 2020 this fiscal year.
At the April 6, 2021 City Council meeting, the City Manager was authorized by City
Council to enter into side letter negotiations for the sole purpose of eliminating the five
(5%) percent furlough across all labor groups. Staff met with all of the City’s employee
associations to negotiate the elimination of the furlough and reimbursement of salary and
benefit cuts already incurred. Agreements were reached with all employee associations
to amend the current side letters (Attachments IV - IX). The elimination of the furlough
and reimbursement of salary and benefit cuts will also be applied to non-represented
employees (Attachments I-III, X).
Currently, due to the staff furloughs, City Hall is closed every Friday. Staff will reinstitute
a 9/80 schedule that will open City Hall every other Friday with the pay period beginning
May 9, 2021. This reinstatement of a 9/80 schedule will provide additional productivity
and enhance staff’s ability to manage the current workload.
ALTERNATIVES CONSIDERED:
Do not approve the recommendation action(s) and direct staff accordingly.
3
FISCAL REVIEW:
Stopping the furloughs early has an estimated impact of $800,000 for the period of April
through June 2021. The one-time reimbursement to employees of the salary reductions
already incurred from July 1, 2020 through March 31, 2021 is estimated at $2.4 million, for
a total of $3.2 million. The estimated fiscal impact of ending the staff pay and benefit
reductions by labor group is detailed in Attachment XI.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the agreements and resolutions and this report and
approved them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council goal: 1) recruit and retain high quality staff.
CONCLUSION:
The first 50 percent allotment of the 2021 American Rescue Plan funds provides for
sufficient funding to restore cuts to the budget that were required to address the projected
deficit resulting from the pandemic, and to pay for increased costs incurred to address
COVID-19.
Staff recommend that the City Council:
1. Adopt Resolution Number 2021-XX (Attachment I), which revises the Executive
Compensation Plan and Executive Salary Schedule.
2. Adopt Resolution Number 2021-XX (Attachment II), which revises the Compensation
Plan and Salary Schedule for the Confidential Management Unit.
3. Adopt Resolution Number 2021-XX (Attachment III), which revises the
Compensation Plan and Salary Schedule for the Confidential Employees Unit.
4. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Police Association (Attachment IV).
5. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Police Management Association (Attachment V).
6. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Firefighters Association (Attachment VI).
7. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Fire Management Association (Attachment VII).
8. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Division Managers Association (Attachment VIII).
9. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa City Employees Association (Attachment IX).
4
10. Approve Second Amendment to Employment Contract between the City of Costa
Mesa and the City Manager (Attachment X).
KASAMA LEE SUSAN PRICE
Human Resources Manager Assistant City Manager
CAROL MOLINA KIMBERLY HALL BARLOW
Finance Director City Attorney
ATTACHMENTS: I Resolution Number 2021-XX (Attachment II), which revises
the Executive Compensation Plan and Executive Salary
Schedule
II Resolution Number 2021-XX (Attachment III), which revises
the Compensation Plan and Salary Schedule for the
Confidential Management Unit
III Resolution Number 2021-XX (Attachment IV), which revises
the Compensation Plan and Salary Schedule for the
Confidential Employees Unit
IV Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Police Association
V Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Police Management Association
VI Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Firefighters Association
VII Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Fire Management Association
VIII Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa Division Managers Association
IX Side Letter of Agreement between the City of Costa Mesa
and the Costa Mesa City Employees Association
X Second Amendment to Employment Contract between the
City of Costa Mesa and the City Manager
XI FY 2020-21 Staff Furloughs by Labor Unit
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, REVISING THE EXECUTIVE
COMPENSATION PLAN AND EXECUTIVE SALARY SCHEDULE.
The City Council of the City of Costa Mesa does hereby resolve, determine and order as
follows:
SECTION 1. The Costa Mesa City Council previously established the Executive
Compensation Plan to: 1) promote maximum commitment by City executives to objectives and
standards of the City Council and City Manager; 2) establish a system in which compensation
serves as an effective device for promoting better job performance; 3) foster the identification of
an executive employee group and recognize the distinct character of executive jobs; and, 4)
improve the City’s ability to attract and retain outstanding executives. The Executive
Compensation Plan and Executive Salary Schedule was last passed and adopted by the City
Council of the City of Costa Mesa on April 18, 2017 as Resolution No. 17-25 and sets forth
terms and conditions of employment for covered classifications.
SECTION 2. As a result of the impacts of COVID-19 on the City, modifications to
Resolution No. 17-25 were made, effective the pay period including July 1, 2020 (i.e., June 21,
2020), as set forth in Resolution No. 2020-37.
SECTION 3. As a result of the impacts of the American Rescue Plan, affected employee
associations have met and conferred and have reached agreement to eliminate furloughs and
associated compensation reductions. The City Council desires to provide parity to the City’s
unrepresented executives, as they also voluntarily agreed to furloughs and associated
compensation reductions to assist the City meet its budgetary needs.
SECTION 4. Except as specifically provided herein, this Resolution is effective at 12:00
a.m. on May 9, 2021 (the first day of the pay period following adoption of this Resolution)).
SECTION 5. Section 4 of Resolution No. 2020-37 shall terminate at 11:59 p.m. on May
8, 2021.
SECTION 6. Through June 21, 2021, the City agrees that employees covered by the
Executive Compensation Plan and Executive Salary Schedule cannot be subject to layoff from
City employment. This would not preclude a separation (e.g., a termination from employment)
that was not a layoff.
SECTION 7. The provisions of Section 6 of Resolution No. 2020-37 shall remain in full
force and effect through December 31, 2021, after which Section 10 of Resolution No. 17-25 will
continue in full force and effect.
SECTION 8. Through and including June 21, 2021, employees covered by the
Executive Compensation Plan and Executive Salary Schedule are not permitted to cash out any
of their vacation leave. Vacation accrual caps will be increased by 20 hours through December
31, 2021. When an employee submits a timely vacation leave request for any period prior to
December 31, 2021, and the City Manager must deny the request or cancel a scheduled
Attachment 1
Page 2 of 3
vacation due to operational needs of the City and/or Department, an exception may be granted
by the City Manager. If such an exception is granted, an employee may be allowed to exceed
the vacation accrual cap.
SECTION 9. Section 8 of Resolution No. 2020-37 shall continue in full force and effect
until modified by future action of the City Council. .
SECTION 10. Section 9 of Resolution No. 2020-37 shall have no further force or effect.
Based on the financial relief received and anticipated to be received from the Federal
Government for the impacts of COVID-19 in excess of $28 million, employees covered by the
Executive Compensation Plan and Executive Salary Schedule will receive a one-time payment
equivalent to furlough hours (base rate x furlough hours) or other reduction already taken.
SECTION 11. Section 10 of Resolution No. 20-37 shall remain in full force and effect
through June 30, 2024.
SECTION 12. Except as modified herein, the terms of Resolution No.17-25 shall remain
in full force and effect.
PASSED AND ADOPTED this 4th day of May 2021.
____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
__
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
Page 3 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the
above and foregoing is the original of Resolution No. 2021- XX and was duly passed and
adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 4th day of
May, 2021, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of
Costa Mesa this 5th day of May, 2021.
__________________________
BRENDA GREEN, CITY CLERK
(SEAL)
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, REVISING THE COMPENSATION
PLAN AND CONFIDENTIAL MANAGEMENT UNIT SALARY
SCHEDULE.
The City Council of the City of Costa Mesa does hereby resolve, determine and order as
follows:
SECTION 1. The Compensation Plan and Salary Schedule for the Confidential
Management Unit was last passed and adopted by the City Council of the City of Costa Mesa
on April 18, 2017 as Resolution No. 17-27 and sets forth terms and conditions of employment
for covered classifications.
SECTION 2. As a result of the impacts of COVID-19 on the City, modifications to
Resolution No. 17-27 were made, effective the pay period including July 1, 2020 (i.e., June 21,
2020), as set forth in Resolution No. 2020-38.
SECTION 3. As a result of the impacts of American Rescue Plan, affected employee
association have met and conferred and have reached agreement to eliminate furloughs and
associated compensation reductions. The City Council desires to provide parity to the City’s
unrepresented employees, as they also voluntarily agreed to furloughs and associated
compensation reductions to assist the City meet its budgetary needs.
SECTION 4. Except as expressly provided herein, this Resolution is effective at 12:00
a.m. on May 9, 2021 (the first day of the pay period following adoption of this Resolution)
SECTION 5. Section 4 of Resolution No. 2020-38 shall terminate at 11:59 p.m. on May
8, 2021.
SECTION 6. Through June 21, 2021, the City agrees that employees covered by the
Compensation Plan and Salary Schedule for the Confidential Management Unit cannot be
subject to layoff from City employment.
SECTION 7. The provisions of Section 6 of Resolution No. 2020-38 shall remain in full
force and effect through December 31, 2021, after which Section 7 of Resolution No. 17-27 will
continue in full force and effect.
SECTION 8. Through and including June 21, 2021, employees covered by the
Compensation Plan and Salary Schedule for the Confidential Management Unit are not
permitted to cash out any of their vacation leave.
SECTION 9. Section 8 of Resolution No. 2020-38 shall have no further force or effect.
Based on the financial relief received and anticipated to be received from the Federal
Government for the impacts of COVID-19 in excess of $28 million, employees covered by the
Compensation Plan and Salary Schedule for the Confidential Management Unit will receive a
one-time payment equivalent to furlough hours (base rate x furlough hours) or other reduction
already taken.
Attachment 2
Page 2 of 3
SECTION 10. Amendments made pertaining to the compensation, fringe benefits, City
Rules and Regulations and other employment conditions for employees represented by the
Costa Mesa Division Managers Association shall also apply to “Confidential” unrepresented
management employees unless specifically excluded.
SECTION 11. Except as modified herein, the terms of Resolution No.17-27 shall remain
in full force and effect.
PASSED AND ADOPTED this 4th day of May 2021.
____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
__
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
Page 3 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the
above and foregoing is the original of Resolution No. 2021-XX and was duly passed and
adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 4th day of
May 2021, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of
Costa Mesa this 5th day of May, 2021.
__________________________
BRENDA GREEN, CITY CLERK
(SEAL)
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, REVISING THE COMPENSATION
PLAN AND CONFIDENTIAL EMPLOYEES UNIT SALARY
SCHEDULE.
The City Council of the City of Costa Mesa does hereby resolve, determine and order as
follows:
SECTION 1. The Compensation Plan and Salary Schedule for the Confidential
Employees Unit was last passed and adopted by the City Council of the City of Costa Mesa on
March 7, 2017 as Resolution 17-18 and sets forth terms and conditions of employment for
covered classifications.
SECTION 2. As a result of the impacts of COVID-19 on the City, modifications to
Resolution No. 17-17 were made effective the pay period including July 1, 2020 (i.e., June 21,
2020), as set forth in Resolution No. 2020-39
SECTION 3. As a result of the impacts of the American Rescue Plan, affected employee
associations have met and conferred and have reached agreement to eliminate furloughs and
associated compensation reductions. The City Council desires to provide parity to the City’s
unrepresented employees, as they also voluntarily agreed to furloughs and associated
compensation reductions to assist the City meet its budgetary needs.
SECTION 4. Except as specifically provided herein, this Resolution is effective at 12:00
a.m. on May 9, 2021(the first day of the pay period following adoption of this Resolution)
SECTION 5. Section 4 of Resolution No. 2020-39 shall terminate at 11:59 p.m. on May
8, 2021.
SECTION 6. Through June 21, 2021, the City agrees that employees covered by the
Compensation Plan and Salary Schedule for the Confidential Employees Unit cannot be subject
to layoff from City employment.
SECTION 7. Section 6 of Resolution No. 2020-39 shall remain in full force and effect.
SECTION 8. Through and including June 21, 2021, employees covered by the
Compensation Plan and Salary Schedule for the Confidential Employees Unit are not permitted
to cash out any of their vacation leave.
SECTION 9. Section 8 of Resolution No. 2020-39 shall have no further force or effect.
Based on the financial relief received and anticipated to be received from the Federal
Government for the impacts of COVID-19 in excess of $28 million, employees covered by the
Compensation Plan and Salary Schedule for the Confidential Employees Unit will receive a one-
time payment equivalent to the dollar savings of the furlough hours already taken (base rate x
furlough hours).
Attachment 3
Page 2 of 3
SECTION 9. Amendments made pertaining to the salary, fringe benefits, City Rules and
Regulations and other employment conditions for employees represented by the Costa Mesa
City Employees Association shall also apply to “Confidential” unpresented employees unless
specifically excluded.
SECTION 10. Except as modified herein, the terms of Resolution No.17-18 shall remain
in full force and effect.
PASSED AND ADOPTED this 4th day of May 2021.
____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
__
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
Page 3 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the
above and foregoing is the original of Resolution No. 2021-XX and was duly passed and
adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 4th day of
May 2021, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of
Costa Mesa this 5th day of May , 2021.
__________________________
BRENDA GREEN, CITY CLERK
(SEAL)
Page 1 of 2
SIDE LETTER OF AGREEMENT
CITY OF COSTA MESA
AND
THE COSTA MESA POLICE ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa
Mesa Police 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 expires on June 30, 2020; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met and
conferred for the purpose of achieving cost savings. This has resulted in the Parties agreeing to some
modifications to their MOU including a four-year extension of the term of the MOU; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
3.2 FURLOUGHS
Each member of the Association is required to take a total of one hundred and four (104) hours of unpaid
furlough during the twenty-six (26) consecutive pay periods between June 21, 2020 and June 19, 2021.
Subject to the action of the City Council on May 4, 2021 to eliminate the furloughs and reimburse
employees, employees will no longer be required to schedule furlough hours effective May 9, 2021 .
The method/manner in which furlough hours are taken are to be determined by mutual agreement
of the parties.
If the City receives notification of financial relief from the County of Orange, State of California, or
the Federal Government for any issues related to the impact of COVID-19 in excess of $40.5 $28
million for Fiscal Year 2020/2021, each member of the Association will receive a payment
equivalent to the dollar savings of the furlough hours already taken (base rate including incentive
pay x furlough hours). Association members who furloughed pursuant to the Side Letter
Agreement, but retire or separate prior to issuance of the reimbursement, shall also be entitled to
repayment.
Attachment 4
Page 2 of 2
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
POLICE ASSOCIATION COSTA MESA
JERAD KORTE LORI ANN FARRELL HARRISON
CMPA President City Manager
JONATHAN TRIPP SUSAN PRICE
CMPA Negotiations Team Member Assistant City Manager
______________________________ BRIAN HERNANDEZ KASAMA LEE
CMPA Negotiations Team Member Human Resources Manager
______________________________ JAMES BROWN ITZIA CARVAJAL
CMPA Negotiations Team Member Acting Human Resources Administrator
Page 1 of 2
SIDE LETTER OF AGREEMENT
CITY OF COSTA MESA
AND
THE COSTA MES A POLICE MANAGEMENT ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa
Mesa Police 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 expires on June 30, 2022; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met and
conferred for the purpose of achieving cost savings. This has resulted in the Parties agreeing to some
modifications to their MOU including a two-year extension of the term of the MOU; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
3.3 FURLOUGHS
Each member of the Association is required to take a total of 104 hours of unpaid furlough
during the twenty-six (26) consecutive pay periods between June 21, 2020 and June 19,
2021. The manner and method by which the furlough or other equivalent reduction will be
accomplished will be subject to a mutual agreement of the parties. Subject to the action of
the City Council on May 4, 2021 to eliminate the furloughs and reimburse employees,
employees will no longer be required to schedule furlough hours effective May 9, 2021.
If the City receives notification of financial relief from the County of Orange, State of
California, or the Federal Government for any issues related to the impact of COVID-19 in
excess of $40.5 $28 million for Fiscal Year 2020/2021, each member of the Association will
receive a one-time bonus payment equivalent to furlough hours already taken (base rate
including incentive pay x furlough hours). Association members who furloughed pursuant to
the Side Letter Agreement, but retire or separate prior to the issuance of the reimbursement,
shall also be entitled to repayment.
Attachment 5
Page 2 of 2
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
POLICE MANAGEMENT ASSOCIATION COSTA MESA
EDWIN EVERETT LORI ANN FARRELL HARRISON
CMPMA President City Manager
______________________________ SUSAN PRICE
CMPMA Negotiations Team Member Assistant City Manager
______________________________ KASAMA LEE
CMPMA Negotiations Team Member Human Resources Manager
______________________________ ITZIA CARVAJAL
Acting Human Resources Administrator
SIDE LETTER OF AGREEMENT
CITY OF COSTA MESA
AND
THE COSTA MESA FIREFIGHTERS ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa
Mesa Firefighters 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 expires on June 30, 2021; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met and
conferred for the purpose of achieving cost savings. This has resulted in the Parties agreeing to some
modifications to their MOU including a three-year extension of the term of the MOU; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
ARTICLE 5 - HEALTH INSURANCE
5.3 CONTRIBUTION AMOUNT - The City’s contribution towards each employee’s flexible benefit
account is as follows: Effective on the first day of the month following City Council approval of this MOU
– two thousand one hundred and nineteen dollars ($2,119.00) per month ($978.00 per pay period). This
amount is inclusive of the CalPERS statutory minimum amount for each year.
Effective with the pay period beginning on July 19, 2020 and ending twenty-four (24 pay periods later
(the pay period that ends on June 19, 2021), the City’s contribution to the flexible benefit plan bucket is
reduced as follows:
For the classification of Firefighter, the City’s annual contribution is reduced by $3,960.00
= $165.00 per pay period
For the classification of Fire Engineer, the City’s annual contribution is reduced by
$4,573.20 = $190.55 per pay period
For the classification of Fire Captain, the City’s annual contribution is reduced by
$5,282.40 = $220.10 per pay period
With the pay period beginning on June 20, 2021 the City’s contribution is restored to nine hundred and
seventy eight dollars ($978.00) per pay period.
Attachment 6
Page 2 of 2
If the City receives notification of financial relief from the County of Orange, State of California, or the
Federal Government for any issues related to the impact of COVID-19 in excess of $40.5 $28 million for
Fiscal Year 2020/2021, each member of the Association will receive a one-time payment equivalent to
the amount of the flexible bucket reduction already taken. If this occurs in the middle of the fiscal year,
the flexible benefit reduction above will stop in the next pay period. Association members who
furloughed pursuant to the Side Letter Agreement, but retire or separate prior to the issuance of the
reimbursement, shall also be entitled to repayment.
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
FIREFIGHTERS ASSOCIATION COSTA MESA
SCOTT PURCELL LORI ANN FARRELL HARRISON
CMFA President City Manager
________________________________ MIKE D. HURD SUSAN PRICE
CMFA Negotiations Team Member Assistant City Manager
______________________________ KASAMA LEE
CMFA Negotiations Team Member Human Resources Manager
______________________________ ITZIA CARVAJAL
CMFA Negotiations Team Member Acting Human Resources Administrator
Page 1 of 2
SIDE LETTER OF AGREEMENT
CITY OF COSTA MESA
AND
THE COSTA MES A 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 expires on June 30, 2022; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met and
conferred for the purpose of achieving cost savings. This has resulted in the Parties agreeing to some
modifications to their MOU including a two-year extension of the term of the MOU; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
ARTICLE 5 - HEALTH INSURANCE
5.3 CONTRIBUTION AMOUNT –The City shall contribute an amount toward the executive flexible
benefit plan bucket (which includes the PERS statutory minimum) for the payment of premiums for
affected employees and dependents based upon the following criteria:
Full family coverage for the PERS Choice medical plan under the California Public
Employees’ Retirement System (CALPERS) health insurance programs
Full family coverage for the Dental Indemnity plan
Full premium payment for Life Insurance
Long Term Disability premium will be based upon the top step salary of the highest-salaried
Division Manager within the classified service
Effective with the pay period beginning on June 21, 2020 and ending twenty-six (26 pay
periods later (the pay period that ends on June 19, 2021), the City’s contribution to the flexible
benefit plan bucket is reduced as follows:
For the classification of Division Chief, the City’s contribution is reduced by three hundred
and fifty-nine dollars ($359.00) per pay period.
For the classification of Battalion Chief, the City’s contribution is reduced by three hundred
and twelve dollars ($312.00) per pay period.
Attachment 7
Page 2 of 2
If the City receives notification of financial relief from the County of Orange, State of
California, or the Federal Government for any issues related to the impact of COVID-19 in
excess of $40.5 $28 million for Fiscal Year 2020/2021, each member of the Association
will receive a one-time payment bonus equivalent to the reduction already taken. If this
occurs in the middle the fiscal year, the flexible benefit reduction above will stop in the
next pay period. Association members who furloughed pursuant to the Side Letter
Agreement, but retire or separate prior to the issuance of the reimbursement, shall also be
entitled to repayment.
Any amounts necessary to maintain benefit premiums in excess of the City contribution specified above
shall be borne entirely by the executive employee.
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
FIRE MANAGEMENT ASSOCIATION COSTA MESA
JASON PYLE LORI ANN FARRELL HARRISON
CMFMA President City Manager
______________________________ CHRISTOPHER COATES SUSAN PRICE
CMFMA Negotiations Team Member Assistant City Manager
______________________________ WILLIAM KERSHAW KASAMA LEE
CMFMA Negotiations Team Member Human Resources Manager
______________________________ TIMOTHY VASIN ITZIA CARVAJAL
CMFMA Negotiations Team Member Acting Human Resources Administrator
Page 1 of 2
SIDE LETTER
CITY OF COSTA MESA
AND
THE COSTA MESA DIVISION MANAGERS ASSOCIATION
This Side Letter between the City of Costa Mesa (City) and the Costa Mesa Division Managers
Association (Association) (collectively “Parties”) is entered into with respect to the following:
WHEREAS, the Parties agree that they have historically treated the Resolution setting forth the
compensation plan and salary ranges for this Association as the equivalent of a Memorandum of
Understanding; and
WHEREAS, the current collective bargaining agreement between the City and the Association is
reflected in Resolution 17-26, which sets forth the current Compensation Plan and Salary Ranges for
classifications represented by the Association; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met for the
purpose of achieving cost savings. This has resulted in the Parties agreeing to some modifications to
Resolution 17-26; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
2. During the term of this Side Letter, employees in the Association will be subject to a five
percent (5%) furlough. This means that they will be scheduled to work five percent (5%) less
hours and will receive five percent (5%) less pay during the term of this Side Letter. The
manner and method by which the furlough or reduction in pay (equivalent to the dollar savings
of a 5% furlough) will be accomplished will be subject to a mutual agreement of the Parties.
Subject to the action of the City Council on May 4, 2021 to eliminate the furloughs and
reimburse employees, employees will no longer be required to schedule furlough hours
effective May 9, 2021.
6. If the City receives notification of financial relief from the County of Orange, State of California,
or the Federal Government for any issues related to the impact of COVID-19 in excess of
$40.5 $28 million for Fiscal Year 2020/2021, each member of the Association will receive a
one-time bonus payment equivalent to furlough hours (base rate x furlough hours) or other
reduction already taken. Association members who furloughed pursuant to the Side Letter
Agreement, but retire or separate prior to the issuance of the reimbursement, shall also be
entitled to repayment.
Attachment 8
2
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
DIVISION MANAGERS ASSOCIATION COSTA MESA
DANE BORA LORI ANN FARRELL HARRISON
CMDMA President City Manager
SUSAN PRICE
CMDMA Team Member Assistant City Manager
KASAMA LEE
CMDMA Team Member Human Resources Manager
______________________________ ITZIA CARVAJAL
Acting Human Resources Administrator
Page 1 of 2
SIDE LETTER OF AGREEMENT
CITY OF COSTA MESA
AND
THE COSTA MESA CITY EMPLOYEES ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa
Mesa City Employees 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 expires on June 30, 2020; and
WHEREAS, as a result of the impacts of COVID-19 on the City, the Parties have met and
conferred for the purpose of achieving cost savings. This has resulted in the Parties agreeing to some
modifications to their MOU including a two-year extension of the term of the MOU; and
WHEREAS, the parties agreed to a Side Letter of Agreement modifying their MOU as reflected
by the track changes in Attachment A; and
WHEREAS, as a result of the impacts of the American Rescue Plan, the Parties have met and
conferred for the purpose of eliminating the furloughs and reimbursing employees for reductions
incurred. This has resulted in the Parties agreeing to some modifications to the Side Letter of
Agreement; and
WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to the Side Letter of Agreement as reflected by
the track changes to the article below.
3.4 FURLOUGHS
Each member of the Association is required to take a total of one hundred and four (104) hours of
unpaid furlough during the twenty-six (26) consecutive pay periods between June 21, 2020 and
June 19, 2021. Subject to the action of the City Council on May 4, 2021 to eliminate the
furloughs and reimburse employees, employees will no longer be required to schedule furlough
hours effective May 9, 2021.
The method/manner in which furlough hours are taken are to be determined by mutual agreement
of the parties.
If the City receives notification of financial relief from the County of Orange, State of California, or
the Federal Government for any issues related to the impact of COVID-19 in excess of $40.5 $28
million for Fiscal Year 2020/2021, each member of the Association will receive a payment
equivalent to the dollar savings of the furlough hours already taken (base rate including specialty
pays x furlough hours). Association members who furloughed pursuant to the Side Letter
Agreement, but retire or separate prior to the issuance of the reimbursement, shall also be
entitled to repayment.
Attachment 9
Page 2 of 2
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
CITY EMPLOYEES ASSOCIATION COSTA MESA
ROBERT GONZALEZ LORI ANN FARRELL HARRISON
CMCEA President City Manager
______________________________ SUSAN PRICE
CMCEA Negotiations Team Member Assistant City Manager
______________________________ KASAMA LEE
CMCEA Negotiations Team Member Human Resources Manager
______________________________ ITZIA CARVAJAL
CMCEA Negotiations Team Member Acting Human Resources Administrator
CITY OF COSTA MESA SECOND AMENDMENT TO AGREEMENT
FOR THE OFFICE OF CITY MANAGER
THIS SECOND AMENDMENT TO AGREEMENT FOR THE OFFICE OF CITY
MANAGER (“Second Amendment”), made and entered into this 5th day of May, 2021 by and
between the CITY OF COSTA MESA, State of California, a Municipal corporation, hereinafter
referred to as "the City" and Lori Ann Farrell Harrison, hereinafter referred to as "Employee."
RECITALS:
WHEREAS, the City retained the services of Employee as City Manager of the City of
Costa Mesa by written agreement dated May 7, 2019 (“the Agreement”); and
WHEREAS, given the extraordinary circumstances facing the City going into the
2020/21 Fiscal Year due to the COVID-19 Global Pandemic and prolonged state of
emergency, along with closures of many businesses and associated losses of revenue, the
City Manager requested that the City Council allow her to take a temporary pay reduction
for the 2020/21 Fiscal Year commensurate with the temporary furloughs and pay
reductions which were negotiated with the represented and unrepresented employees of
the City in an effort to meet the unprecedented financial emergency triggered by the
COVID-19 Pandemic; and
WHEREAS, the City and Employee executed a First Amendment to the
Agreement (“the First Amendment”) on June 26, 2020, which provided for a five percent
(5%) reduction in compensation as was negotiated with all represented and unrepresented
employees; and
WHEREAS, between CARES Act and the American Rescue Plan, the City is
expected to receive an estimated amount in excess of $28 million, as a result of which
staff requested to end the five percent (5%) furloughs and to provide a one-time
reimbursement to employees for the value of the pay reductions implemented since July
1, 2020 this fiscal year; and
WHEREAS, as a result of the impacts of the American Rescue Plan, affected
employee associations have met and conferred and have reached agreement to eliminate
furloughs and associated compensation reductions, and the City Council desires to
provide parity to the City’s unrepresented executives including Employee, as they also
voluntarily agreed to furloughs and associated compensation reductions to assist the City
meet its budgetary needs; and
WHEREFORE, in consideration of the respective mutual covenants and promises
hereinafter contained and made subject to all of the terms and conditions hereof, the parties
hereto do hereby agree as follows:
Section 4 of the Agreement shall be revised for the Fiscal Year 2020/21 only to read as follows:
Attachment 10
2
4. COMPENSATION
(a) Effective May 9, 2021, Employee’s pay and benefits shall be reinstated to
the level set forth in the original Agreement, except that the provisions of
section 5(d) as set forth in the First Amendment shall remain in effect until
June 30, 2021. Employee will receive a one-time payment equivalent to
the reduction already taken.
Except as expressly modified herein, the remaining terms of the Agreement, as amended by the
First Amendment, remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment,
the date and year first above written.
CITY OF COSTA MESA: EMPLOYEE:
__________________________ __________________________
JOHN STEPHENS, MAYOR LORI ANN FARELL HARRISON
ATTEST: APPROVED AS TO FORM:
CITY CLERK, CITY OF COSTA MESA
A Municipal Corporation of the State of California
__________________________ __________________________
BRENDA GREEN KIMBERLY HALL BARLOW
CITY CLERK, CITY OF COSTA MESA CITY ATTORNEY
City of Costa Mesa Attachment 2
Transparency in Negotiations
Fiscal Impact Analysis Estimate
5% Furlough for One Year Only
UNIT
July 2020 -
March 31,
April 1, 2021
- June 30,
Total
Estimated
CMPA 678,270 226,090 904,360
CMFMA 25,253 8,418 33,670
CMDMA 119,358 39,786 159,144
CMPMA 76,244 25,415 101,658
CMFA 261,752 87,251 349,003
CMCEA 872,746 290,915 1,163,661
Executives 78,524 26,175 104,699
City Manager 11,628 3,876 15,504
TOTAL 2,123,774 707,925 2,831,699
Attachment 11