HomeMy WebLinkAbout06 - Firefighters Association MOUCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No 6
November 8, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Sharon Wood, Assistant City Manager
949 - 644 -3222, swood @city.newport - beach.ca.us
SUBJECT: Memorandum of Understanding with Firefighters Association
RECOMMENDATION:
Approve the Memorandum of Understanding (MOU) with the Firefighters Association for
the three -year period of January 2005 through December 2007.
DISCUSSION:
Background_
The MOU with the Firefighters Association expired on December 31, 2004. As with the
MOUs with our police associations, one of the most important issues for this employee
group was an improved retiree medical program. The complexity of this issue resulted
in negotiations taking more time than usual. In addition, the Firefighters were very
interested in the enhanced retirement benefit of 3% @ 50. Negotiating terms on this
issue was also challenging and time consuming. We have concluded the negotiations
and reached tentative agreement with the Association, pursuant to direction from the
City Council, and the members have ratified the agreement.
Summary of MOU Provisions:
1. Term: 3 years
2. Salary Adjustments:
2% January 2005
1 % July 2005
3% July 2006, plus 1% for contribution to retiree medical
■ 2% July 2007
MOU with Firefighters Association
November 8, 2005
Page 2
Nearby fire agencies, including Santa Ana, Costa Mesa and Orange County, have
increased salaries and Newport Beach had fallen behind the market.
3. Bilingual Pay:
The City has paid police employees who have bilingual skills for several years, because
these skills help the City to provide better service to the entire community. The most
recent MOUs with non - safety employees have provisions for bilingual pay. This MOU
provides the same pay for Firefighters as Police Officers.
4. Flex Leave: Eliminate "2 "d tier"
When the City was experiencing budget challenges in the 1990's as a result of ERAF !,
the employee associations agreed to the reduction of flex leave accrual rates for
employees hired after October 1, 1996. The lower level of leave accrual has become a
recruitment problem, which is a concern as the Fire Department expects a number of
employees to retire in the near future. This change would equalize flex leave accrual
rates, prospectively only; it would not result in adding accrued leave for any period prior
to the January 1, 2005 effective date of this MOU.
5, Health Benefit:
$722 per month July 2005
$788 per month January 2006
$854 per month January 2007
The January 2005 increase will bring the Firefighters to the same level as the non -
safety employees, and the increase of $50 in the following years addresses the ongoing
increases in medical insurance costs.
6. Retiree Medical Benefit:
Effective December 31, 2005, the City will provide a new retiree medical program. The
City now provides a defined benefit program, with the City, active employees and
retirees sharing the costs. Several years ago, we addressed the unfunded liability of
this program, and the City and employees agreed to make additional contributions to
begin funding that liability. We have made progress, but as health care costs have
increased, employees grew concerned about the adequacy of the $400 per month cap
on the benefit as well as ongoing contributions to the City's liability for the program. The
new program is a defined contribution program, through which each employee will have
an account to be used for his or her medical needs during retirement. Contributions to
the account will be made by both the employees and the City, and invested as
determined by each employee. Employees who are closer to retirement would not be
able to accumulate a sufficient amount in their accounts, so the program also provides
MOU with Firefighters Association
November 8, 2005
Page 3
for some employees to remain on the existing plan and the MOU includes conversion
thresholds.
7. Tuition Reimbursement:
Some of the education and training needed for professional development in the fire
service is not available at colleges, but through other seminars and workshops. The
MOU expands the types of courses that are eligible for reimbursement, up to the
existing amount of $1,000 per year.
8. Retirement Benefit:
Firefighters now have the 3 % @55 retirement benefit, while the police employees
received 3 % @50 three years ago. In addition, Newport Beach is the only Orange
County fire agency that does not provide 3 % @50, with the exception of one city that
provides additional salary instead of enhanced retirement. The MOU provides that the
City will provide 3 % @50 by December 31, 2007, at the very end of the MOU term. The
Association agreed to a three -year term (when other associations have had only two -
year terms), and agreed to a lower salary increase in the final year of the MOU, in
exchange for the enhanced retirement benefit.
Funding Availability:
Staff estimates the cost of implementing this MOU to be approximately $212,000 for the
first six months, funds for which were available in the 2004 -05 budget. For fiscal year
2005 -06, the cost is estimated to be $281,000. Funds for these salary and benefit
increases are included in the 2005 -06 budget.
Submitted by:
Sharon Wood
Assistant City Manager
Attachment: Memorandum of Understanding between the City of Newport Beach and the
Newport Beach Firefighters Association
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH FIREFIGHTERS ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
1. The Newport Beach Firefighters Association, International Association of
Firefighters, Local 3734 ( "NBFA "), a recognized employee organization, and the
City of Newport Beach ( "City "), a municipal corporation and charter city, have
been meeting and conferring, in good faith, with respect to wages, hours, fringe
benefits and other terms and conditions of employment.
2. NBFA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terns and conditions of employment for
the period from January 1, 2005 to December 31, 2007 and this tentative
agreement has been embodied in this MOU.
3. The City acknowledges and appreciates the cooperation of NBFA during the
meet and confer process leading to the adoption of the 2005 -2007 MOU.
4. This MOU, upon approval by NBFA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters within the scope of representation.
SECTION 1. — GENERAL PROVISIONS
A. Recognition
In accordance with the provisions of the Charter of the City of Newport
Beach, the Meyers - Milias -Brown Act of the State of California and the
provisions of the Employer's /Employee Labor Relations Resolution No.
2001 -50, the City acknowledges that NBFA is the majority representative
for the purpose of meeting and conferring regarding wages, hours and
other terms and conditions of employment for all employees in those
classifications specified in Exhibit "A" or as appropriately modified in
accordance with the Employer /Employee Resolution. All other
classifications and positions not specifically included within Exhibit "A" are
excluded from representation by NBFA.
B. Duration of Memorandum
1. Except as specifically provided otherwise, any ordinance, resolution
or action of the City Council necessary to implement this MOU shall
be considered effective as of January 1, 2005. This MOU shall
remain in full force and effect until December 31, 2007, and the
provisions of this MOU shall continue after the date of expiration of
this MOU in the event the parties are meeting and conferring on a
successor MOU.
2. The terms and conditions of this MOU shall prevail over any
conflicting provisions of the Newport Beach City Charter, the
ordinances, resolutions and policies of the City of Newport Beach,
and federal and state statutes, rules and regulations which either
specifically provide that agreements such as this prevail, confer
rights which may be waived by any collective bargaining
agreement, or are, pursuant to decisional or statutory law,
superseded by the provisions of an agreement such as, or similar
to, this MOU.
C. Release Time
1. NBFA members shall be allowed to participate in the following
activities and receive full pay ( "Release Time "):
a. Attendance at meetings, conferences, seminars or
workshops related to matters within the scope of
representation;
b. To prepare for, travel to, and attend scheduled meetings
between the City and NBFA during the meet and confer
process.
2. City grants NBFA 288 hours of Release Time per calendar year to
engage in the activities described in subsection 1(a). Unused
hours from any calendar year may be carried over to the next year
not to exceed a total City provided release time accrual of three
hundred (300) hours.
3. City grants NBFA members the right to engage in the activities
described in subsection 1(b) at any time without reduction to the
Release Time granted in subsection 2.
4. NBFA shall designate certain members as those members entitled
to release time. In no event shall any one designate be entitled to
use more than 100 hours (150 hours for the Association President
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only) of Release Time (exclusive of actual time spent meeting with
City representatives on matters relating to the scope of
representation), within any calendar year. Designates must give
reasonable advance notice to, and obtain permission from, their
supervisor prior to use of Release Time. Requests for Release
Time shall be granted by the supervisor unless there are specific
circumstances that require the designate to remain on duty.
Designates shall, to the maximum extent feasible, receive shift
assignments compatible with participation in the meet and confer
process.
5. In addition to City — provided Release Time and Release Time
provided pursuant to subparagraph (3), NBFA members may
contribute earned paid time off to an NBFA Release Time Bank.
Members may contribute earned time only during the period from
July 1 through August 15th during any calendar year. During 2005
only, members may contribute time earned prior to July 1, 2005
until December 30, 2005. However, members shall not have the
right to contribute time to the NBFA Release Time bank if NBFA
has accumulated more than 600 hours of total Release Time. Any
NBFA member who contributes time to the Release Time Bank
gives up any right to usage of, or payment for, the contributed time.
Contributions may be made only in six - minute increments.
Contributions shall be on forms prepared by the City which shall
then be submitted to the appropriate department employee. City
shall advise NBFA as to the balance of hours in the Release Time
Bank upon request. For purposes of this subparagraph only, the
term "time off' includes accrued flex leave, accrued vacation leave,
and accrued holiday time.
D. Scope
1. All present written rules and currently established practices and
employee rights, privileges and benefits that are within the scope of
representation shall remain in full force and effect during the term of
this MOU unless specifically amended by the provisions of this
MOU, or in the case of the Department SOP's falling within the
scope of representation, the City has given notice to the
Association and, upon request, met and conferred on any proposed
changes which fall within the scope of representation.
When the Department proposes to change any SOP departmental
rule or regulation, it will provide a copy of such change to the
Association no less than seven (7) days prior to implementation of
the proposed change. If such proposed change materially impacts
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any matter within the scope of representation, then the parties
agree to meet and confer over such impact.
2. Pursuant to this MOU, the City reserves and retains all of its
inherent exclusive and non— exclusive managerial rights, powers,
functions and authorities ( "Management Rights ") as set forth in
Resolution No. 2001 -50.
E. Bulletin Boards
1. Space shall be provided on bulletin boards within the Fire
Department at their present location for the posting of notices and
bulletins relating to NBFA business, meetings, or events. All
materials posted on bulletin boards shall indicate the name of the
organization responsible. Material posted shall not contain
personal attacks on any City official or employee, any material
which constitutes harassment, discrimination or retaliation on the
basis of race, gender, ethnicity, religion or other statutorily or
constitutionally impermissible basis, as well as any pornographic or
obscene material.
2. Material posted and messages sent through electronic mail (E—
Mail) shall not contain personal attacks on any City official or
employee, any material which constitutes harassment,
discrimination or retaliation on the basis of race, gender, ethnicity,
religion or other statutorily or constitutionally impermissible basis,
as well as any pornographic or obscene material. E —Mail may be
used for Association business on a limited basis and consistent
with Department Policy.
F. Maintenance of Membershi
Any employee in this Unit who has authorized association deductions on
the effective date of this Agreement, or at any time subsequent to the
effective date of this Agreement, shall continue to have such dues
deductions made by the City during the term of this Agreement, provided
that any employee in the Unit may terminate such Association dues by
submitting a signed request to cancel payroll deduction to the Human
Resources Director during the period of December 1 through December
31 each year. The Association shall indemnify the City and hold it
harmless against any and all suits, claims, demands and liabilities that
may arise out of or by reason of the application or implementation of the
provisions of this section.
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G. Dues Check -off
NBFA members shall have the right to authorize the City to deduct regular
monthly NBFA dues from their bi— weekly paycheck. The City shall deduct
payment of NBFA dues when the employee has authorized such
deduction and City shall remit all payments to NBFA in accordance with
the terms of each member's authorization.
H. Conclusiveness
This MOU contains all of the covenants, stipulations, and provisions
agreed upon by the parties. Therefore, for the life of this MOU, neither
party shall be compelled to meet and confer concerning any issue within
the scope of representation except as expressly provided herein or by
mutual agreement of the parties. No representative of either party has the
authority to make, and none of the parties shall be bound by, any
statement, representation or agreement reached prior to the execution of
this MOU and not set forth herein.
I. Modifications
Any agreement, alteration, understanding, variation, or waiver or
modification of any of the terms or provisions of this MOU shall not be
binding upon the parties unless contained in a written document executed
by authorized representatives of the parties.
J. Savings
Should any part of this MOU be rendered or declared illegal or invalid by
legislation, decree of court of competent jurisdiction or other established
governmental administrative tribunal, such invalidation shall not affect the
remaining portions of this MOU provided, however, should the provisions
of this MOU relating to salary increases, fringe benefits, or the
compensation policy be declared invalid the City shall provide alternative
forms of compensation such that NBFA members suffer no financial
detriment by virtue of the decision or ruling with the manner and form of
the compensation to be determined by the parties after meeting and
conferring in good faith.
K. Impasse
In the event of an impasse (the failure to agree on a new MOU after the
express term of the existing MOU has expired), the parties may agree on
mediation pursuant to the procedure outlined in Section 16 of Resolution
No. 2001 -50 or a successor resolution.
L. Definitions
For the purposes of this MOU these terms shall have the following
meanings:
1. The term "member" or "NBFA member"' shall mean all persons
within classifications represented by NBFA.
2. The term "staff employee" shall mean any NBFA member who is
assigned to work an average 40 -hour workweek.
3. The term "line employee" shall mean any NBFA member assigned
to work an average 56 -hour workweek in 24 -hour shift increments.
4. The term "Municipal Fire Departments in Orange County" or
"Municipal Fire Departments" shall mean all City operated Fire
Departments and the Orange County Fire Authority.
SECTION 2.— COMPENSATION
A. Salar
1. Salary Adjustments.
The adjustments to salary and total compensation described in this
Section shall maintain the salary differentials between the position
of Firefighter (benchmark position) and the other positions
represented by NBFA, as set forth below, so there is an appropriate
internal relationship among the primary classifications represented
by NBFA. Subject to the foregoing, the salaries specified below or
total compensation, as appropriate, shall be subject to the following
guaranteed adjustments:
Percent of
Firefighter
Firefighter Series Top Step
Firefighter N/A
Engineer 112.50%
Paramedic 122.25%
Line Captain 132.00%
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2.
Fire Prevention Series
Fire Inspector, Non - safety
Fire Engineer /PSI
Fire Prevention Specialist, Non - safety
Fire Engineer /PCI
Fire Prevention Specialist Plan Check,
Non - safety
Percent of
Fire Inspector, Non-safety
Top Step
N/A
115%
115%
125%
125%
Staff Captains and Deputy Fire Marshal shall receive an additional
7.5% of base pay over Line Captains.
a. Effective December 25, 2004, the City shall increase base
salary for the firefighter classification by two percent (2 %)
(with increases for other classifications pursuant to the
matrix above).
b. Effective June 25, 2005, the City shall increase base salary
for the firefighter classification by one percent (1 %) (with
increases for other classifications pursuant to the matrix
above).
C. Effective June 24, 2006, the City shall increase base salary
for the firefighter classification by three percent (3 %) (with
increases for other classifications pursuant to the matrix
above).
d. Effective June 23, 2007, the City shall increase base salary
for the firefighter classification by two percent (2 %) (with
increases for other classifications pursuant to the matrix
above).
e. Special Adjustment
Effective the pay period beginning December 24, 2005
(concurrent with the implementation of the revised retiree
medical benefit as set forth in Section 4E) base salaries shall
be increased by 1 %.
Special Step Increase
Firefighters who successfully complete the Department Engineer
Certification program within twelve (12) months of passing
probation will be granted a salary step increase.
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B. Overtime — Hours Worked
1. Overtime shall consist of authorized work in excess of the normal
number of hours in any scheduled work shift or work in excess of
the maximum number of hours permitted by the United States
Department of Labor regulations for up to a twenty -eight (28) day
pay period. Use of Flex Leave, Vacation Leave, Holiday Leave,
and Sick Leave shall be considered as hours worked for the
purposes of determining eligibility for overtime pay pursuant to the
Fair Labor Standards Act and /or Department of Labor regulations.
2. Temporary vacancies in line positions shall be selected in
accordance with Department S.O.P.
3. Qualified employees wishing to work voluntary overtime in a class
lower than their Current class (downgrade) may volunteer to do so
and shall be compensated at one and one -half times the highest
hourly rate for the position as published in the City's compensation
plan. Said employees shall be selected according to the provisions
set forth in the Department's Standard Operating Procedures
related to staffing and overtime. This provision applies only to
persons wishing to downgrade to the position of Firefighter or Fire
Engineer.
4. Personnel assigned to staff assignments may request
compensatory time off in lieu of paid overtime with the approval of
the Department. Compensatory time may be granted, subject to
maximum accrual of eighty (80) hours.
C. Required Uniform
City shall pay the entire cost of providing NBFA member with each
component of the required NBFD uniform. The required NBFD uniform
includes safety shoes, badges and insignias, uniform pants, uniform shirts,
uniform jackets and liner, belts, work out shirts, work out trunks,
sweatshirt, base camp hat, and turnout safety clothing. City shall not be
responsible for providing employee with socks, underwear, cap or workout
shoes, or other clothing.
The City shall report the value of the required uniform at $1,369 to PERS.
The City will provide an adequate number of reserve turnouts at each
station to allow for proper turnout cleaning /decontamination. This
equipment will be used to temporarily replace an employee's personal
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turnout equipment that cannot be placed in service because they are wet,
contaminated, or aged.
Scholastic /Certificate Achievement Pay
NBFA members are entitled to additional compensation contingent upon
scholastic achievement ( "Scholastic /Certificate Achievement Pay "). NBFA
members may apply for increases pursuant to this Section when eligible
and scholastic and /or certificate achievement pay shall be included in the
member's paycheck for the pay period immediately after approval by the
Fire Chief. It is the responsibility of the NBFA member to apply for
Scholastic and /or Certificate Achievement Pay. Approval of the member's
application shall not be unreasonably withheld or delayed, and the
member shall not be entitled to receive scholastic and /or certificate
achievement pay prior to the date the application is approved even though
the member may have been eligible prior to approval. Scholastic and /or
Certificate achievement pay is contingent upon years of service and
number of units and /or degrees received by the employee. Qualifying units
and /or degrees must be awarded by accredited community colleges, state
colleges or universities. NBFA member shall receive scholastic and /or
certificate achievement pay in accordance with the following:
1. Scholastic Pav
Years of
College
% of Actual Step in
Service:
Semester /Unit:
Job Class Range:
2 or more
30
1.5% /month
3 or more
60
2.5% /month
3
90
3.5% /month
4 or more
90
3.5% /month
4
120
4.5% /month
4
B.A. /B.S.
5.5% /month
2. Certificate Pay
Coursework:
Completion of
coursework for
Fire Officer I or
Fire
Prevention Officer 11
% of Actual Step in
Job Class Range:
1.5% /month
E. Special Assignment Pay
The following additional payments shall be made to certain NBFA
members based on assignment:
1. Certified members of the Hazardous Materials Response Team
shall receive special assignment pay of five percent (5 %) of base
pay per month.
2. Should the City establish a Tactical Paramedic Assignment, it will
give notice to and, upon request, meet and confer with the
Association on those aspects of the program which fall within the
scope of representation.
3. Temporary Special Assignment Pay
Temporary Special Assignment pay will be at the rate of five
percent (5 %) above base salary, plus overtime at the rate of time
and one half, for employees who are assigned special projects
outside of or above and beyond their normal job classification. The
types and duration of these temporary assignments will remain a
management prerogative.
Committee participation such as Safety Committee, and work on
various projects such as Public Safety Day and the CERT Program
are excluded from consideration under this Agreement.
F. Temporary Upgrading of Employees
Temporary upgrading shall be defined as the temporary assignment of an
employee to work in a job classification which is assigned to a salary
schedule higher than his /her regular job classifications.
Employees temporarily upgraded to the following job classifications shall
receive a five percent (5 %) pay differential over their regular rate of pay for
all time worked in the higher job classification if they are assigned to work
in the higher job classification for a period of four (4) working hours or
longer-
Fire Battalion Chief
Fire Captain
Fire Paramedic
Fire Engineer
Tiller Assignment
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All holiday, vacation, sick leave and paid leave shall be paid at the
employee's regular rate of pay.
Assignments to higher rated classifications shall be made at the sole
discretion of the City.
G. Y- Ratinq
Employees who are reclassified to a position with a lower maximum salary
shall be Y- rated. Y- rating shall refer to a pay rate outside of the assigned
salary range of the employee.
If the salary of the employee is greater than the maximum of the new
range, the salary of the employee shall be designated as a Y -rate and
shall not change during continuous regular service until the maximum of
the new range exceeds the salary of the employee.
If the salary of the employee is the same or less than the maximum of the
new class, the salary and merit increase eligibility date of the employee
shall not change.
H. Shift Holdover
NBFA members who are held over at the conclusion of any shift shall be
compensated at the rate of one hour for each hour, or portion thereof, the
employee worked beyond the end of the shift. Any member held over
after shift shall be compensated at time and a half for all time worked
during the work period in excess of the maximum permitted under the
provisions of Section 29 USC 507(k).
Emergency Recall
If an employee who is not on stand -by or shift hold -over and is required to
return to work or to continue on duty during his /her off -duty hours for
actual firefighting, or similar emergency designated by the Department
Director, the employee shall receive a minimum of three (3) hours
compensation for the first hour worked and compensation for time worked
thereafter.
J. Bilingual Pay
Employees certified as bilingual (Spanish) shall be eligible to receive One
Hundred Fifty ($150.00) Dollars per month in bilingual pay. The
certification process will confirm that employees are fluent at the street
conversational level in speaking, reading and writing Spanish. Employees
certified shall receive bilingual pay the first full pay period following
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certification.
Additional languages may be certified for compensation pursuant to this
section by the Fire Chief.
K. Court Standby Pay
NBFA members who, pursuant to Subpoena compelling attendance to
testify to acts, observations, or omissions occurring in the course and
scope of employment or at the direction of their supervisor, are required,
while off —duty, to remain within a certain response time from court, shall
be considered to be on "court standby time" and shall receive four (4)
hours of pay for each eight hours of court standby time. NBFA members
shall, when required to appear in court pursuant to a Subpoena or the
direction of their supervisor to testify at to matters relating to their
employment with the City, be considered to be on duty and shall be paid
accordingly. Members shall remit all witness fees received for testifying or
appearing on any matter for which the member is eligible to receive court
standby time.
SECTION 3. - LEAVES
A. Flex Leave
1. Effective December 25, 2004, NBFA members shall accrue flex
leave as follows. It is mutually understood that accrual rates have
been modified to provide for the longevity increase set forth below.
Leave Accrual Longevity Pay
Years of Cont. Svc Hours /Pay Period Increase
Line Employees
1 but less than 5
8.77
0.00%
5 but less than 9
9.69
0.00%
9 but less than 12
10.62
0.00%
12 but less than 16
11.54
0.00%
16 but less than 20
11.54
1.5%
20 but less than 25
11.54
2.5%
25 and over
11.54
3.5%
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Leave Accrual
Years of Cont. Svc Hours /Pay Period
Staff and Non - Safety
Employees
Longevity Pay
Increase
1 but less than 5
6.26
0.00%
5 but less than 9
6.92
0.00%
9 but less than 12
7.59
0.00%
12 but less than 16
8.24
0.00%
16 but less than 20
8.24
1.5%
20 but less than 25
8.24
2.5%
25 and over
8.24
3.5%
Longevity increases specified above shall be reported to PERS as
special compensation and shall be regarded as compensation
earnable as defined in Government Code Sec. 20636 (c) (1) for
purposes of computing retirement benefits and contributions.
The Flex leave program shall be administered as follows:
a. NBFA members shall not accrue flex leave until continuously
employed by the Newport Beach Fire Department for a
period of six (6) months provided, however, if a member on
the flex leave program becomes sick during the first six
months of employment, the City will advance up to six (6)
months of accrual for line employees for use by the member
to recover from illness.
In the event the City advances paid leave time and the
employee is terminated or resigns before completing six
months of continuous employment, the member's final check
shall be reduced by an amount equal to the number of flex
leave hours advanced multiplied by the member's hourly rate
of pay.
b. NBFA members who are staff or non - safety employees shall
accrue six (6) months of flex leave and line employees shall
accrue six (6) months of flex leave immediately upon
completion of six (6) months continuous employment with
the Newport Beach Fire Department, provided however, this
amount shall be reduced by any flex leave time advanced
during the first six months of employment.
C. Members employed by the City prior to initiation of the flex
leave program have had the current accrued vacation time
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converted to flex leave on an hour for hour basis with the
current sick leave placed in a bank to be used as provided in
the Employee Policy Manual. Members entitled to use sick
leave pursuant to Section the Employee Policy Manual and
who are absent due to illness shall have their sick leave
bank reduced by the duration of the absence unless the
member notifies appropriate department personnel that the
absence should be charged to the member's flex leave
account.
d. Subject to the provisions of Section 3(J), members shall be
entitled to accrue flex leave up to a maximum of seventy -
eight (78) times the member's bi- weekly accrual rate.
Earned flex leave in excess of the maximum permitted is
currently paid bi- weekly at the member's hourly rate of pay.
NBFA members may, at any time, elect to receive pay (at
the member's normal hourly rate) for all accrued flex leave in
excess of seventy -two (72) hours for a line employees and
40 hours for staff employees. However, NBFA members
may not elect to buy down accrued Flex Leave below the
current threshold for payment seventy -eight (78) times the
member's bi- weekly accrual rate) unless, during the twelve
months preceding the election, the member has taken at
least ninety -six (96) hours of paid leave if a line employee
and eighty (80) hours of paid leave if a staff employee. For
the purposes of this section, Flex Leave shall include any
earned paid leave such as vacation leave, compensatory
time off, or holiday time.
e. All requests for scheduled flex leave shall be submitted to
appropriate department personnel. In no event shall a
member take or request flex leave in excess of the amount
accrued.
f. Flex Leave may be taken in six (6) hour increments.
g. Members shall be paid for all accrued flex leave at their then
current hourly rate of pay (hourly rate before incentives,
other pays, etc.) upon termination of the employment
relationship except as provided by Section 3(J).
B. Vacation Selection System
The City has implemented a vacation selection system (VSS) which
phased out mandatory scheduling for vacation relief in favor of leave
coverage by paying overtime to other members occupying the same
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position. The City commits to maintain VSS subject to budgetary
constraints outlined in this Section. The City shall, for each fiscal year
during the term of this MOU, adopt a budget which provides for the
payment of overtime specifically for the purpose of implementing VSS.
The amount to be budgeted shall be calculated by computing the
Vacation /Flex leave /Holiday time (leave) normally accrued by each
member during a fiscal year (total annual leave) multiplying total annual
leave, by that member's overtime rate of pay (value of leave) and then
adding the value of leave for each NBFA member. Each member's
overtime rate of pay shall be calculated on the basis of the member's
highest anticipated rate of pay during the upcoming fiscal year. The total
"value of leave" for all members shall be identified in the budget as the
"LEAVE COVERAGE FUND." Notwithstanding, any other provision of this
MOU, the Fire Chief shall have the sole discretion to take whatever action
may be necessary to reduce overtime payments, including the temporary
reduction of staffing levels or personnel, in the event payments for
overtime out of the LEAVE COVERAGE FUND exceed 25% of the fund
during the first three months of the fiscal year, 50% of the fund during the
first six months of the fiscal year, or 75% of the fund during the first nine
months of the fiscal year.
Vacation /Sick Leave
1. Administration of the vacation and sick leave program for members
who have not converted to flex leave shall be in accordance with
the provisions of the Employee Policy Manual of the City of Newport
Beach. Line employees shall accrue sick leave at the rate of twelve
(12) hours per month and staff employees shall accrue sick leave at
the rate of eight (8) hours per month. Vacation Leave may be taken
in six (6) hour increments.
NBFA members on the vacation /sick leave system shall accrue as
follows:
Years of
Cont. Service
Line Employees
Less than 5
5 but less than 9
9 but less than 13
13 but less than 17
17 but less than 21
21 but less than 25
25 and over
iIII
Leave Accrual
Hours/Pay Period
5.54
6.47
7.39
8.31
9.23
10.16
11.08
E.
Years of
Cont. Service
Staff Employees
Less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
Leave Accrual
Hours /Pay Period
3.70
4.31
4.93
5.54
6.16
6.77
7.39
Maximum vacation accrual shall be seventy -eight (78) times the
member's bi- weekly accrual rate.
2. Sick Leave Conversion
Members who, at the end of any calendar year have a sick leave
bank greater than a sum equal to eighty —six (86) times their normal
bi— weekly sick leave accrual rate and who have used six (6) or
fewer days during the calendar year, may elect to covert up to six
(6) days of sick leave to three (3) days pay or, with the approval of
the Fire Chief, three (3) days of vacation. Members shall elect to
convert to sick leave within sixty (60) days after the end of any
calendar year.
Holiday Time
Line Employees
The provisions of this subsection shall apply only to NBFA
members who are line employees during all or a portion of any
calendar year and, as to those members who are line employees
for only a portion of the year, the provisions of this subsection shall
be applicable on a pro —rata basis. NBFA members who are line
employees shall accrue holiday time at the rate of 5.54 hours per
pay period. Holiday time shall be added to the member's Flex
Leave or Vacation Leave Account on a bi— weekly basis.
Effective October 1, 1996, all Line employees were provided a one-
time opportunity to elect to convert all or any portion of their annual
holiday benefits to cash on an annual basis. This election shall be
uniform from year to year. For example, an employee electing to
convert 108 of the 144 annual benefits to cash must so convert 108
16
hours of earned holiday benefits each year thereafter. The election
to change holiday time to pay shall be in twelve (12) hour
increments. Holiday pay will be paid bi- weekly with the regular
check. Holiday leave conversion pay will not count in the total
compensation formula used to adjust salaries and benefits.
This holiday compensation shall be reported to PERS as special
compensation and shall be regarded as compensation earnable as
defined in Government Code Sec. 20636 (c) (6) for purposes of
computing retirement benefits and contributions.
Note. Newly hired employees shall be given a one -time option,
within 60 days of employment, to elect to receive up to one -half of
accrued holiday time as time off.
2. Staff Employees
Staff employees shall receive the following fully paid holidays:
New Years Day, Martin Luther King Birthday, Presidents Day,
Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day and the day after Thanksgiving, one —half day on
Christmas Eve, Christmas, and one —half day on New Years Eve.
In addition, Staff employees will be entitled to one floating holiday
at the member's election.
Staff employees shall have the one -time option of accruing holiday
time as pay. Staff employees may be required to take specified
City holidays off at the sole discretion of the Fire Chief. Time will
be charged against the employee's flex (or vacation) leave bank.
F. Bereavement Leave
Bereavement leave shall be defined as "the necessary absence from duty
by an employee having a regular or probationary appointment because of
a death or terminal illness in his /her immediate family. Staff and Non -
Safety employees shall be entitled to forty (40) hours of Bereavement
Leave per calendar year per event while Line Employees shall be entitled
to ninety (90) hours of Bereavement Leave. Bereavement leave shall be
administered in accordance with the provisions of the Employee Policy
Manual. For the purpose of this section immediate family shall mean
father, mother, brother, sister, wife, husband, child, father -in -law, mother -
in -law, and grandparents. The provisions of this Section shall not diminish
or reduce any rights a member may have pursuant to applicable
provisions of State or Federal law.
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G. Catastrophic Leave
Unit members inay participate in the City's Catastrophic Leave Program.
H. Jury Duty
J
NBFA members who are assigned to line positions and are called to jury
duty shall be excused for each twenty -four (24) hour shift during which the
member is required to attend court and sit on a jury or await assignment.
Sick Leave Pay Out
Upon paid retirement, termination in good standing or death, but not
termination for cause or resignation in lieu of termination, any member or
his /her estate shall be paid, at the rate of 109% of their then current base
hourly rate of pay (hourly rate before incentives, other pays, etc.) for a
percentage of the employees accrued but unused Sick Leave computed
as follows:
YEARS OF SERVICE
LESS THAN 10
10 BUT LESS THAN 15
15 BUT LESS THAN 20
20 OR MORE
PERCENT OF UNUSED SICK
LEAVE PAID FOR:
NONE
25%
37.5%
50%
Payment for accrued but unused Sick Leave shall be limited to the first
800 hours of accrued Sick Leave for Staff Employees and the first 1200
hours for Line Employees (for example if a Line Employee had
accumulated 1400 hours of Sick Leave and retired after 16 years he or
she would receive Terminal Sick Leave Pay in a sum equal to 109% of
their base salary per hour for 450 hours of Sick Leave — 1200 hours
multiplied by .375).
Flex Leave Premium Pay Account
NBFA members shall have the right to receive pay, at the rate of 109% of
their then current base salary, for any Flex Leave banked, up to a
maximum of seventy -eight (78) times their bi— weekly Flex Leave accrual
rate as of June 30, 1994 (Flex Leave Prernium Pay Account). The Flex
Leave Premium Pay Account balance shall be shown on each member's
regular pay stub. The Flex Leave Premium Pay Account shall be reduced
in accordance with member purchases. Each member shall, upon
termination, resignation, retirement or other separation from service,
receive terminal pay at the rate of 109% of their then current base salary
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for all accrued Flex Leave to the full extent of the remaining balance in the
Flex Leave Premium Pay Account with any remaining Flex Leave paid at
the then current base salary. The provisions of this section shall apply
only to members employed by the City of Newport Beach on or before
June 30, 1994.
K. Vacation Leave Premium Pay Account
Members who are on the traditional Vacation /Sick Leave program as of
June 30, 1994 shall be entitled to receive pay, at the rate of 109% of their
then current base salary, for any accumulated Vacation Leave up to a
maximum of fifty -two (52) times their bi— weekly Vacation Leave accrual
rate as of June 30, 1994 (Vacation Leave Premium Pay Account). The
Vacation Leave Premium Pay Account balance shall be shown on each
members regular pay stub. The Vacation Premium Pay Account balance
shall be reduced commensurate with member purchases. Each member
shall, upon termination, resignation, retirement or other separation from
service, receive terminal pay at the rate of 109% of their then current base
salary for all accrued Vacation Leave to the full extent of the remaining
balance in the Vacation Leave Premium Pay Account with any remaining
Vacation Leave paid upon termination at the then current base salary.
The provisions of this section shall apply only to members employed by
the City of Newport Beach on or before June 30, 1994.
L. Worker's Compensation Leave
Any Safety NBFA employee who has been incapacitated by reason of any
injury or illness which has been determined to have arisen out of or in the
course of his or her employment shall receive compensation in
accordance with the provisions of Section 4850 et. seq. of the Labor Code
of the State of California.
M. Reassignment
In the event a line employee is reassigned to a staff position, or a staff
employee is reassigned to a line position, the City shall automatically
convert the Flex Leave, Vacation Leave, Sick Leave, Bereavement Leave
and other benefits from the position previously held to the newly assigned
position provided, however, upon reassignment a line employee shall be
entitled to either receive pay for accrued holiday time or add accrued
holiday time to the member's Flex Leave or Vacation Leave account. The
ratio for conversion of staff employee benefits to line employee benefit
shall be 7/5 and the ratio for converting line employee benefits to staff
employee benefits shall be 5/7.
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SECTION 4. —Fringe Benefits
A. Insurance
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits
Information Committee has been established to allow the City to
present data regarding carrier and coverage options, the cost of
those options, appropriate coverage levels and other health
programs. The purpose of the BIC is to provide each employee
group with information about health insurance /programs and to
receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan.
Effective June 25, 2005, the City contribution toward the Cafeteria
Plan shall be $674. In addition, the City shall contribute the
minimum CalPERS participating employer's contribution towards
medical insurance. Employees shall have the option of allocating
Cafeteria Plan contributions towards the City's existing medical,
dental and vision insurance /programs, The City and the Newport
Firefighter Association will cooperate in pursuing additional optional
benefits to be available through the Cafeteria Plan.
Any unused Cafeteria Plan funds shall be payable to the employee
as taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment periods.
Effective December 24, 2005 the City's contribution towards the
Cafeteria Plan will increase to $724, (plus the minimum CalPERS
participating employer's contribution).
Effective December 23, 2006 the City's contribution towards the
Cafeteria Plan will increase to $774, (plus the minimum CalPERS
participating employer's contribution).
NBFA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
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3.
0
N
insurance coverage on an annual basis.
Dental Insurance
The existing or comparable dental plans shall be maintained as
part of the City's health plan offerings as agreed upon by the
Benefits Information Committee.
Vision Insurance
The existing or a comparable vision plan shall be maintained as
part of the City's health plan offerings as agreed upon by the
Benefits Information Committee.
Changes in Insurance Carriers and Coverages
There shall be no change in Insurance carriers or coverages during
the term of this agreement unless the City has given prior notice to
the Association and, upon request, met and conferred.
B. Additional Health Insurance /Programs
1
IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee
to reduce taxable income for payment of allowable expenses such
as child care and medical expenses. The City shall maintain a
"reimbursable account program" in accordance with the provisions
of Section 125 of the Internal Revenue Code, pursuant to which an
Association member may request that medical, child care and other
eligible expenses be paid or reimbursed by the City out of the
employee's account. The base salary of the employee will be
reduced by the amount designated by the employee for
reimbursable expenses.
2. Disability Insurance
The City shall provide
disability insurance to
following provisions:
Weekly Benefit
Maximum Benefit
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Short -term (STD) and Long -term (LTD)
all regular full time employees with the
66.67% gross weekly wages
$10,000 /month
Minimum Benefit $50
Waiting Period 30 Calendar Days
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid
leave once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City -paid
life insurance is reduced by 50% of the pre -70 amount. This
amount remains in effect until the employee retires from City
employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a
properly licensed provider. Association members and their family
members may access the EAP subject to provider guidelines.
D. The Retirement Benefit
1. Pursuant to Section 20691 of the California Government Code, the
City shall pay to PERS, on behalf of all employees covered by this
agreement, the entire required normal "safety member" retirement
contribution, but not to exceed 9% of the compensation earnable
which PERS uses to calculate retirement contributions and benefits
and the entire normal miscellaneous member contribution, not to
exceed 7 %. In addition, the amount of this payment shall be
reported to PERS as special compensation, which is part of the
employee's compensation earnable, pursuant to the provisions of
Section 20636 (c)(4) of the California Government Code, as
amended effective July 1, 1994. This payment shall be credited to
the employee's accounts maintained by PERS in accordance with
Section 20691 of the California Government Code. NBFA
acknowledges that the City is making this payment pursuant to a
22
specific request of NBFA to do so, that the City has made
significant financial commitments to NBFA in this MOU in
consideration of the members' agreement to relinquish their
previously held "irrevocable right" to pay their own PERS
contribution and receive a corresponding salary increase, and that
the significant financial concessions to NBFA (which included
Leave Premium Pay Accounts, changes in the calculation of "hours
worked" for purposes of overtime and internal salary adjustments)
were made to avoid the potential for increased overtime
compensation approximating $450,000 if all NBFA members
exercise their irrevocable right to make their own PERS contribution
and receive a corresponding salary increase.
2. The City's contract with PERS shall also provides for
a. A 3% @ 55 retirement formula pursuant to the provisions of
Section 21252.01 of the California Government Code.
b. The military buy -back provisions pursuant to Section
20930.3 of the California Government Code and the highest
year benefit pursuant to Section 20042.
C. The Level 4 1959 Survivors Benefits.
The City will amend its PERS contract to provide the pre- retirement option
settlement 2 death benefit (Section 21548) to be effective July 23, 2005.
The City will further amend its PERS contract to provide for the 3% @ 50
retirement formula to be in effect no later than December 31, 2007.
E. Retiree Health Benefits Program
1. Prior to December 24, 2005
An employee is eligible for retiree medical benefits under this program
after seven years of service to the City of Newport Beach if the
employee retires from the City and is a PERS annuitant. This program
is inclusive of an employee's right to medical insurance coverage
under the CalPERS medical insurance plan and the mandatory
minimum employer contribution to said plan on behalf of the annuitant.
a. The City has implemented the $400 per month cap for retiree
medical insurance premium contributions as agreed to by the City
and the Newport Beach Firefighters Association. The City and
active employees shall be responsible for 3 /4ths (112 City and 1/4
actives) of retiree medical insurance prernium under this program
to a maximum of $400. Retirees shall be responsible for any
23
remaining medical insurance premiums. For NBFA unit
employees, the per month employee deduction for retiree
medical insurance shall be $44.07 per month.
Subsequent contribution levels shall be set as needed in the
month of July per the formula described above. Prior to
increasing the deductions for the employee's contribution share,
the City shall provide NBFA with documentation supporting the
need for said increase at least 90 days in advance of the effective
date of the increase. Upon request, City representatives will meet
and consult with NBFA prior to any increases in employee
deduction levels.
b. In order to accumulate funds to meet the potential unfunded
liability in retiree medical insurance premium payments as
projected by the City's actuary and in addition to the contribution
in (a) above; each NBFA unit employee will contribute $10 per
month and the City shall contribute $20 per employee per month
into an interest bearing trust account. These contributions will be
continued until the projected liability is satisfactorily funded
(approximately 30 years), or until such time as the City and NBFA
mutually agree to end the funding on behalf of NBFA members.
Accumulated funds from the employee and employer
contributions described above shall be held separate from the
City's general fund. These funds shall be kept in an interest
bearing account and may only be used to pay for unfunded retiree
medical insurance premiums not covered by the funds collected
under El(a).
In the event the retiree medical insurance program described
herein is discontinued, NBFA members will receive an accounting
on any remaining funds and the City will immediately meet and
confer with NBFA on the distribution of said funds back to active
(not retired /full -time) City employees in the NBFA unit.
The City will provide NBFA with an annual report certified by the
City Finance Director describing the balance, interest earnings,
and any expenditures of the trust account described herein.
2. Effective December 24, 2005
a. Overview
A new Defined Contribution Plan will be established to set aside
funds for employee medical expenses during retirement. This plan
24
will replace the existing Defined Benefit Plan (`old plan "), which will
be phased out. The plan will be a Medical Expense
Reimbursement Plan ( "MERP ") funded through an Integral Part
Trust (IPT).
b. Structure
Each employee will have an individual MERP account for
bookkeeping purposes, called his or her "Employee Account." This
account will accumulate contributions to be used for health care
expense after retirement. All contributions to the plan are either
mandatory employee contributions or City paid employer
contributions, so they are not taxable to employees at the time of
deposit. Earnings from investment of funds in the account are not
taxable when posted to the account. Benefit payments are not
taxable when withdrawn, because the plan requires that all
distributions be spent for specified health care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee): 1 % of Salary.
ii. Part B contributions (employer for employees fully converting to
new plan): $1.50 per month for each year of service plus year
of age (updated every January V based on status as of
December 31St of the prior year).
iii. Part C contributions (leave settlement as determined by
Association):
No later than November 30, 2005, the Association will
determine the level of contribution for all employees it
represents, subject to the following constraints. All employees
within the Association must participate at the same level,
except that Safety members and Non - safety members may
have different levels. The participation level should be
specified as a percentage of the leave balance on hand in each
employee's leave bank at the time of separation from the City.
The computation of the cash equivalent for leave hours to be
included in the MERP will be the same as the computation
used when leave is "cashed out" for other reasons. However,
individual employees must not have the option of receiving
compensation for the value of the same leave hours in the form
of cash.
25
For example, if the Association wishes to specify 50% of the
leave balance as the participation level, then each member
leaving the City would have the cash equivalent of 50% of
whatever balance is in his or her leave account added to the
MERP, on a pre -tax basis. The remaining 50% would be paid
in cash as taxable income. Again, individual employees would
not have the option to deviate from this breakout.
If the Association decides to participate in Part C contributions,
at any level, its members will not have the right to voluntarily
convert leave to cash for one full year prior to retirement, other
than "spillover" of amounts above the maximum accumulation
balance. However, taking leave for time off purposes would
not be constrained.
Sick leave balances may also be included in the MERP, but
only to the extent and within all the numeric parameters
specified in the Employee Policy Manual. Section 11.21 of the
Manual contains a schedule which specifies the amount of sick
leave that can be "cashed out," based on time of service. The
manual also caps the number of hours that can be "cashed out'
at 800, and specifies that sick leave hours are "cashed out' on
a 2 for 1 basis (800 hours of sick leave are converted to 400
hours for cash purposes). Sick leave participation is a
separate item from vacation /flex leave participation, and
thresholds must be separately identified by the Association.
Part A contributions may be included in PERS compensation. Part
B and Part C contributions will not be included in PERS
compensation.
Part A contributions begin upon enrollment in the program and are
credited to each MERP Employee Account each pay period.
Eligibility for Part B contributions is set at five years of City
employment. At that time, the City will credit the first five years
worth of Part B contributions into the Employee Account (interest
does not accrue during that period). Thereafter, contributions are
made monthly. Part C deposits, if any, will be made at the time of
employment termination.
Each Employee has a right to reimbursement of medical expenses
(as defined below) from the Plan until the Employee Account
balance is zero. This right is triggered upon retirement. If an
employee leaves the City prior to five years employment, only the
Part A contributions and Part C leave settlement contributions, if
any, will be in the MERP Employee Account. An employee who
26
leaves City employment within the first five years will not be entitled
to any Part B contributions.
Distributions from MERP Employee Accounts are restricted to use
for health insurance and medical care expenses after retirement, as
defined by the Internal Revenue Code Section 213(d) (as explained
in IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this
generally includes premiums for medical insurance, dental
insurance, vision insurance, supplemental medical insurance, long
term care insurance, and miscellaneous medical expenses not
covered by insurance for the employee and his or her spouse and
legal dependents — again only as permitted by IRS Publication 502.
Qualification for dependency status will be determined by
guidelines in IRC 152. If used for these purposes, distributions
from the MERP accounts will not be taxable. Cash withdrawal for
any other purpose is prohibited. Under recent IRS Revenue Ruling
2005 -24, any balance remaining in the Employee Account after the
death of the employee and his or her spouse and /or other
authorized dependents (if any) must be forfeited. That particular
MERP Account will be closed, and any remaining funds will
become general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating
employer's contribution towards medical insurance after retirement.
The parties also agree that, for retirees selecting a CalPERS
medical plan, or any other plan with a similar employer contribution
requirement, the required City contribution will be withdrawn from
the retiree's MERP account.
C. Employee Participation
i. New Employees
Participation in the new plan is mandatory from the onset of
employment. New employees will make no contributions to the
old plan.
ii. Conversion Threshold for Current Employees
Safety: Members whose age plus years of service equal 45 or
less at the time of implementation must convert to the new
plan. Those with age plus years of service of 46 or more have
the option of fully converting or remaining in the old plan with
modified participation in the new plan.
27
Non - Safety: Members whose age plus years of service equal
49 or less at the time of implementation must convert to the
new plan. Those with age plus years of service of 50 or more
have the option of fully converting or remaining in the old plan
with modified participation in the new plan.
iii. Current Employees Fully Converting to New Plan
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a
one -time City contribution to their individual IPT accounts that
equates to $100 per month for every month they contributed to
the current plan, to a maximum of 15 years (180 months). This
contribution will be made at the time of retirement, and only if
the employee retires from the City. No interest will be earned
in the interim.
Employees in this category will make no further contributions to
the existing plan, and will no longer participate in it. The parties
agree that this one time payment by the City satisfies the
requirement in paragraph E1.b. of Section 4 (Fringe Benefits)
of the previous MOUs regarding an accounting and potential
distribution of contributions upon discontinuation of the
previous version of the Retiree Medical Program.
iv. Current Employees Continuing to Participate in Some Elements
of Old Plan
Employees in this category will contribute a flat $100 per month
to the old plan for the duration of their employment. The
maximum benefit provided by the old plan at retirement is
$4800.00 per year, accruing at the current rate of $400.00 per
month. City share of each retiree's cost may be used for
anything authorized for the IPT program, rather than just for
Insurance Premiums for one of the City plans. There is no
cash out option for these funds.
Employees remaining on the old plan will also participate in the
IPT program, with Part A contributions being mandatory; no
Part B contributions; and Part C contributions if applicable.
Employees in this category will also receive an additional one-
time City contribution of $75 per month for every month they
contributed to the old plan prior to the date of implementation of
28
the new program, up to a maximum of 15 years (180 months).
This contribution will be made to the IPT account at the time of
retirement, and only if the employee retires from the City. No
interest will be earned in the interim.
d. Retroactivity
Limited retroactivity is provided for employees who retired from the
City during the period covered by the contract in which this new
program is implemented, but before the program is implemented.
For those employees who retired under the old program during this
period, the provision for increased flexibility in the use of the
$4800.00 maximum (accruing at $400 per month) benefit will apply.
In addition, a MERP account will be opened for each employee in
this category, and a contribution of $75 per month for each month
of prior contribution to the old plan will be deposited by the City.
No other provisions of the new program are applicable to
employees in this category, and no provisions of the program are
applicable to any other existing retirees.
e. Administration
A vendor will be selected by the City to administer the MERP. The
contract expense for program -wide administration by the vendor will
be paid by the City. However, specific vendor charges for
individual account transactions that vary according to the
investment actions taken by each employee, such as fees or
commissions for trades, will be paid by each employee.
The City's Deferred Compensation Committee will have the
authority to determine investment options that will be available
through the plan.
f. Value of Benefit
For all purposes, the MERP shall be valued at 1% of salary on
which PERS retirement is based (Part A); plus .25% of other
compensation (Part B).
F. Tuition Reimbursement
Maximum tuition reimbursement for NBFA members shall be $1,000 per
fiscal year.
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1. College Courses
NBFA members attending accredited community colleges, colleges,
trade schools or universities may apply for reimbursement of one
hundred percent (100 %) of the actual cost of tuition, books, fees or
other student expenses for approved job — related courses.
Reimbursement is contingent upon the successful completion of the
course. Successful completion means a grade of "C or better for
undergraduate courses and a grade of "B" or better for graduate
courses. All claims for tuition reimbursement require the approval of
the Human Resources Director.
2. Non - College Courses
NBFA members attending job - related classes, courses, and seminars
given by recognized agencies, organizations or individuals other than
accredited college institutions may apply for reimbursement of one
hundred percent (100 %) of the actual cost of tuition, parking fees,
travel and lodging expenses.
Job - related courses and seminars will be considered pre - authorized in
the following areas: management and supervision, oral and written
communications, conflict resolution, fire ground operations, rescue
systems, legal issues, media relations, risk management, EMS, health
and safety, apparatus operator, auto extrication, fire prevention, arson
investigation, and critical incident stress management.
Reimbursement is contingent upon the successful completion of the
course. Successful completion means a document or certificate
showing successful completion of the class or seminar. All claims for
tuition reimbursement require the approval of the Fire Training Division
Chief before submittal to Human Resources.
G. Fitness Program
All NBFA members shall participate in the Department Fitness Program as
outlined in Department SOP.
H. Physical Conditioning Equipment
1. City has acquired fitness equipment for use by members in
maintaining physical fitness. City shall budget $10,000 per year for
the acquisition, maintenance, repair, improvement, or replacement
of fitness equipment. Up to $7,500 may be carried over to a
subsequent fiscal year(s).
30
2. City shall provide workout apparel for each NBFA member
assigned to fire suppression. Workout apparel shall consist of
three workout shirts and two trunks. All NBFA members on duty
between the hours of 4:00 p.m. one day and 7:30 a.m. the next,
shall wear either the approved workout apparel, or the approved
NBFD uniform.
SECTION 5. —Miscellaneous Provisions
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager
determines that a reduction in the work force is warranted because of
actual or anticipated reductions in revenue, reorganization of the work
force, a reduction in municipal services, a reduction in the demand for
service or other reasons unrelated to the performance of duties by any
specific employee. Reductions in force are to be accomplished, to the
extent feasible, on the basis of seniority within a particular Classification or
Series and this Section should be interpreted accordingly.
1. Definitions
a. "Layoffs" or "Laid off' shall mean the non — disciplinary
termination of employment.
b. "Seniority" shall mean the time an employee has worked in a
specific Classification within a Series calculated from the
date on which the employee was first granted permanent
status, subject to the following:
I. Credit shall be given only for continuous service
subsequent to the most recent appointment to
permanent status iii the Classification or Series;
ii. Seniority shall include time spent on industrial leave,
military leave and leave of absence with pay, but shall
not include time spent on any other authorized or
unauthorized leave of absence.
iii. For purposes of determining layoffs within the
Classification of Firefighter, seniority shall mean the
time an employee has worked within the Series from
Firefighter to Captain.
C. "Classification" shall mean one or more full time positions
identical or similar in duties and embraced by a single job
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title authorized in the City budget and shall not include part —
time, seasonal or temporary positions. Classifications within
a Series shall be ranked according to pay (lowest ranking,
lowest pay).
d. "Series" shall mean two or more Classifications within a
Department which require the performance of similar duties
with the higher ranking Classification(s) characterized by the
need for less supervision by superiors, more difficult
assignments, more supervisory responsibilities for
subordinates. The City Manager shall determine those
Classifications which constitute a Series.
e. "Bumping Rights ", "Bumping" or "Bump" shall mean the right
of an employee in a higher Classification who is subject to
layoff to displace a less senior employee in a lower
Classification within the Series. No employee shall have the
right to Bump into a Classification for which the employee
does not possess the minimum qualifications such as
specialized education, training or experience, provided,
however, the City shall allow an employee to become
recertified as a paramedic in the event the employee's
certification has expired due to promotion to another
position. An employee has the right to "Bump" into only
those positions the employee has previously held with the
Department.
2. Procedures
In the event the City Manager determines to reduce the number of
employees within a Classification, the following procedures are
applicable:
a. Temporary and probationary employees within any
Classification shall, in that order, be laid off before
permanent employees.
b. Employees within a Classification shall be laid off in inverse
order of seniority.
C. An employee subject to layoff in one Classification shall
have the right to Bump a less senior employee in a lower
ranking Classification within a Series, provided, however,
that the determination of the employee to be terminated from
the position of Firefighter shall be based on seniority within
the Series. An employee who has Bumping Rights shall
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notify the Department Director within seven (7) working days
after notice of layoff of his /her intention to exercise Bumping
Rights.
d. In the event two or more employees in the same
Classification are subject to layoff and have the same
seniority, the employees shall be laid off in inverse order of
their position on the eligibility list or lists from which they
were appointed. In the event at least one of the employees
was not appointed from an eligibility list, the Department
Director shall determine the employee(s) to be laid off.
3. Notice
Employees subject to lay —off shall be given at least thirty (30) days
advance notice of the layoff or thirty (30) days pay in lieu of notice.
In addition, employees laid off will be paid for all accumulated paid
leave, holiday leave (if any), and accumulated sick leave to the
extent permitted by the Employee Policy Manual.
4. Re— Employment
Permanent and probationary employees who are laid off shall be
placed on a Department re— employment list in reverse order of
layoff. Re- employment lists will be valid for two (2) years. The re-
employment list shall remain in effect until exhausted by removal of
all names on the list. In the event a vacant position occurs in the
Classification which the employee occupied at the time of layoff, or
a lower ranking Classification within a Series, the employee at the
top of the Department re— employment list shall have the right to
appointment to the position, provided, he or she reports to work
within seven (7) days of written notice of appointment. Notice shall
be deemed given when personally delivered to the employee or
deposited in the U.S. Mail, certified, return receipt requested, and
addressed to the employee at his or her last known address. Any
employee shall have the right to refuse to be placed on the re-
employment list or the right to remove his or her name from the re-
employment list by sending written confirmation to the Human
Resources Director.
5. Severance Pav
Permanent employees who are laid off shall, as of the date of lay-
off, receive one -week severance pay for each year of continuous
service with the City of Newport Beach.
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B. Schedule
The City shall have the right to designate a 14 day or 28 day work period
pursuant to Section 29 USC 507(k) (7k exemption), provided, however,
the 7k exemption shall not affect the City's obligation to pay overtime
pursuant to provisions of this MOU including the provisions of Section
1(D)1.
C. Discipline Plan
Any discipline shall be in accordance with Department SOP and the
Employee Policy Manual.
D. Fire Suppression Staffing Levels
The City shall not reduce current staffing levels for fire suppression
equipment during the term of this MOU. The City believes that
appropriate staffing levels call for three fire suppression personnel for
each engine company, four fire suppression personnel for each truck
company, and two firefighter /paramedics on each paramedic unit. PAU
staffing shall conform to the provisions in Section 5(G).
E. EMT Certification
All members are required to attend regularly scheduled departmental EMT
certification classes. Any member, except members who are paramedic
certified, who misses, or anticipates missing, a regularly scheduled EMT
certification class shall contact the Fire Chief or his /her designee in an
attempt to schedule a makeup session, provided, however, members may
view videotaped classes to make up for absences from a regularly
scheduled class in accordance with County and State requirements. If a
makeup session is not available within the program schedule established
by the Department, the member shall, prior to loss of certification, attend a
Departmental session or class offered by a public or private institution on
the member's own time and without compensation by the City.
F. Pre - Hospital Emergency Medical Services (EMS) System
1. In a prior MOU, the City and Association have met and conferred
on the City's Paramedic and Emergency Transportation System.
The parties at that time agreed as follows:
Two engine companies shall be converted to a Paramedic
Assessment Unit (PAU's. The two current paramedic units shall be
converted to Paramedic Ambulances (PAU's) and a City operated
24 -hour Basic Life Support (BLS) ambulance shall be staffed by
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two sworn Firefighter EMT -D's. The PA's shall normally transport
patients requiring advanced life support (ALS) . The BLS
ambulance shall normally transport patients requiring basic life
support (BLS). Either the PA's or the BLS ambulance may
transport ALS or BLS patients based upon operational need.
2. EMS Staffing
All such services shall be staffed using sworn personnel
represented by the NBFA. It is understood that the City and the
NBFA have agreed to staff one of the three Paramedic Units
(PAU's) using existing personnel. Six firefighters assigned to the
fourth (4th) position on Truck 62 and Truck 63 pursuant to Section
5.D of this MOU have been reclassified as Fire Paramedics and
reassigned to a Paramedic Unit. Should the City reduce or
eliminate the number of Paramedic Units serving the city, these six
positions will be reclassified as Firefighters and reassigned to the
fourth (4`h) position on Truck 62 and Truck 63.
Should the City make changes in this program that fall within the
scope of representation, the City shall give appropriate notice to the
Association and provide the opportunity for the Association to meet
and confer on matters within scope.
G. No Smoking
All employees hired after January 1, 1999 shall not smoke or use any
tobacco products at any time while on, or off, duty. Employees shall be
required to sign an agreement consistent with this section. Violation of the
agreement may subject the employee to disciplinary action. Employees
shall have input into the agreement to be developed.
H. Fire Inspection Classifications
Existing flexible staffing provisions in Fire Prevention Classifications shall
remain in effect for the term of this agreement.
Exposure Log
The City maintains an exposure log system.
Signatures are on the following page.
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Executed this ,day of
2005:
By:
Rich Thomas, NBFA
By:
Jeff Boyles, NBFA
By:
Jeff Remmele, NBFA
By:
Keith Winokur, NBFA
CITY OF NEWPORT BEACH
By:
John Heffernan, Mayor
ATTEST:
Bv:
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
Robin Clauson, City Attorney
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