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2012, according to the provisions of this MOU. At the time of such contracting out, the <br />Memorandum of Understanding (with an expiration date of June 30, 2014) between the City <br />and SAFMA shall no longer have effect. <br />3. Status of Scheduled Salary Increase: The memorandum of understanding (with an <br />expiration date of June 30, 2014) between the City and SAFMA provides that employees of <br />SAFMA shall receive a salary increase of 3.5% effective July 1, 2012. That salary increase <br />shall not be implemented, since it is due subsequent to the April 20, 2012 transition date to <br />OCFA. <br />4. Transitioning Employees or New Hires: All City of Santa Ana Fire Battalion Chiefs shall <br />be deemed "transitioning" employees on the effective date that firefighting and related <br />services are contracted out. Transitioning Santa Ana Fire Battalion Chiefs shall receive the <br />top step base salary for any position to which the member is assigned, plus applicable <br />bonus pays (per appropriate OCFA MOU) for the rank of Fire Battalion Chief. The list of <br />transitioning Fire Battalion Chiefs and their applicable base salary step with OCFA is <br />attached hereto as "Exhibit 1 — Transitioning Employees" (attached. The City of Santa Ana <br />Administrative Chief /Fire Marshal shall be hired as a non -sworn employee in the position of <br />Assistant Fire Marshal, and shall receive the top step base salary (Step 12) plus applicable <br />bonus pays (per appropriate OCFA MOU), and shall be deemed a new hire by OCFA as <br />attached hereto as "Exhibit 2 — New Hires" (attached. <br />5. Members Rejected Due to Industrial Injury or Medical Condition: The City agrees that it <br />shall certify as qualified for industrial disability retirement any sworn member of SAFMA who <br />is rejected from employment by OCFA due to a legitimate industrial injury or other industrial <br />medical condition, upon submission of the required paperwork (DWC -1, etc.). The parties <br />agree that if a disability retirement is not granted, the City is under no obligation to reinstate <br />the employee to employment with the City as the employee's position shall have ceased to <br />exist as a result of the contracting out of the Santa Ana Fire Department. <br />A. The parties agree that any SAFMA member who fails to meet the standards to be <br />employed by OCFA on April 20, 2012 because of injury or illness and who either does <br />not seek or does not qualify for a disability retirement shall be offered employment by <br />OCFA upon meeting such standards, provided, however, OCFA shall not be obligated to <br />offer any employment beyond one year from the effective date of the contracting out of <br />firefighting and related services. <br />B. Upon meeting the standards for employment and within the one year referenced in (a) <br />above, the member shall be granted employment per Exhibits 1, 2, 3 and 4 (attached. <br />6. Leave Balances: The parties agree that the accrued leave balances for members of <br />SAFMA being employed by OCFA shall be paid or forwarded to OCFA as specified below. <br />A. Upon transition, the City of Santa Ana shall establish a leave bank not to exceed 350 <br />hours for each transitioning employee who transitioned from a Fire Management <br />Association position at the City. These leave bank hours are based on shift schedules, <br />2 <br />