HomeMy WebLinkAboutS17 - Fire Management Association MOU•
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. s17
November 22, 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 Fire Management Association
RECOMMENDATION:
Approve the Memorandum of Understanding (MOU) with the Fire Management Association
for the three -year period of January 2005 through December 2007.
DISCUSSION:
Background:
• The MOU with the Fire Management Association expired on December 31, 2004. As with the
MOUs with other employee associations, one of the most important issues was an improved
retiree medical program. The complexity of this issue resulted in negotiations taking more
time than usual. In addition, Fire Management anticipated that their new MOU would follow
the agreement reached with the Firefighters Association, which was approved at the last City
Council meeting. We have concluded negotiations and reached tentative agreement on a
new MOU, which is consistent with the Firefighters' and with direction frorn the City Council.
The Association members have ratified the agreement.
MOU Provisions Consistent with Firefighters Association:
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
3. Bilingual Pay: $150 per month
• 4. Flex Leave: Eliminate "2 "d tier"
MOU with Fire Management Association
November 22, 2005
Page 2
5. Health Benefit: •
• $722 per month July 2005
• $788 per month January 2006
• $854 per month January 2007
6. Retiree Medical Benefit: Effective December 31, 2005, the City will provide a new retiree
medical program.
7. Tuition Reimbursement: Seminars and workshops, as well as college courses, eligible for
up to $1,000 per year.
8. Retirement Benefit: 3 % @50 by December 31, 2007
9. Scholastic Achievement Pay: Increase compensation available to employees with more
than 5 years of service.
Years of College % of Actual Step
Service Semester /Unit in Job Class Range
5 or more 90 3.5%
5 or more 120 4.5% •
5 or more B.A. or B.S. 5.5%
This schedule is consistent with what has been provided to the Firefighters (and Police
Employees and Management) for several years. Consistency between Firefighters and Fire
Management is important to ensure that an employee who is promoted from one association
to another does not lose this benefit for his or her higher education.
Funding Availability:
Staff estimates the cost of implementing this MOU to be approximately $31,000 per year.
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 Fire Management Association •
• MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
1. The Newport Beach Fire Management Association ( "NBFMA "), 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. NBFMA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms 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 NBFMA during
the meet and confer process leading to the adoption of the 2005 -2007
• MOU.
4. This MOU, upon approval by NBFMA 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 NBFMA 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 NBFMA.
• 1
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. 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 NBFMA no less than
seven (7) days prior to implementation of the proposed change. If such
proposed change materially impacts 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 .
D. 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
NBFMA business, meetings, or events. All materials posted on bulletins
boards shall indicate the name of the organization responsible. Material •
2
• 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.
E. 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.
F. 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.
G. 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 NBFMA 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.
•
3
H. 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.
Definitions
For the purposes of this MOU these terms shall have the following meanings:
1. The term "member" or "NBFMA member" shall mean all persons within
classifications represented by NBFMA.
2. The term "staff employee" shall mean any NBFMA member who is
assigned to work a 40 hour workweek.
3. The term "line employee" shall mean any NBFMA 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. Salary
1. Guaranteed Salary
The salary for the position of Fire Battalion Chief shall maintain at least a
9% salary differential between the top step of Fire Captain and the bottom
step of the Fire Battalion Chief. Adjustments to the salary of Battalion
Chief shall be reflected in corresponding adjustments to other positions
represented by NBFMA necessary to maintain the salary differentials
listed below.
Classification Percent of Battalion Chief Top Step
Fire Line Battalion Chief N/A
Fire Division Chief 112.5%
Fire Deputy Chief 118%
Fire Marshal 112.5%
9 •
• 2. Salary Adiustments
a. Effective December 25, 2004, the City shall increase base salary
for the Battalion Chief classification by two (2 %) percent (with
increases for other classifications pursuant to the matrix above).
b. Effective June 25, 2005, the City shall increase base salary for the
Battalion Chief classification by one (1 %) percent (with increases
for other classifications pursuant to the matrix above).
C. Effective June 24, 2006, the City shall increase base salary for the
Battalion Chief classification by three (3 %) percent (with increases
for other classifications pursuant to the matrix above).
d. Effective June 23, 2007, the City shall increase base salary for the
Battalion Chief classification by two (2 %) percent 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 4.A.5) base salaries shall be increased by 1 %.
B. Overtime - Hours Worked
1. All approved paid overtime shall be paid at the straight time rate. The City
and Association agree that all unit classifications are properly exempted
from the provisions of the Fair Labor Standards Act. Overtime payments
were decreased from time and one -half to straight time by agreement of
the parties as part of a negotiation which increased the percentage
spread between Battalion Chief and Fire Captain. The overtime rate shall
be taken into account when comparing total compensation to benchmark
positions in other agencies.
2. Compensatory Time
In lieu of overtime members may elect to accrue compensatory time off.
Staff personnel may accrue a maximum of 140 hours. Line personnel may
accrue a maximum of 144 hours. Personnel must use all accrued
compensatory time by time of retirement.
• 5
C
Required Uniform •
City shall pay the entire cost of providing NBFMA 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, 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 will report the value of the required uniform at $1,369.00 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 turnout equipment that cannot be
placed in service because they are wet, contaminated, or aged.
D. Scholastic /Certificate Achievement Pay
NBFMA members are entitled to additional compensation contingent upon
scholastic /certificate achievement ( "Scholastic /Certificate Achievement Pay ").
NBFMA members may apply for increases pursuant to this Section when eligible
and scholastic /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 NBFMA member to apply for Scholastic /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 /certificate achievement pay prior to the date the application is
approved even though the member may have been eligible prior to approval.
Scholastic /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. NBFMA member shall receive scholastic
achievement pay in accordance with the following:
1. Scholastic Achievement Pay
Years of
College
% of actual step in
Service:
Semester /Unit:
job class range
2 or more
30
1.5%
3 or more
60
2.5%
5 or more
90
3.5%
5 or more
120
4.5%
5 or more
B.A, /B.S.
5.5%
6
•
• 2. Certificate Pay
Coursework
Completion of coursework for
Certified Chief Fire Officer
E. Bilingual Pair
Monthly Compensation
1.5% of actual step in job class range
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 certification.
Additional languages may be certified for compensation pursuant to this section
by the Fire Chief.
F. Court Standby Pay
NBFMA 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 hours of pay for each eight hours of
court standby time. NBFMA 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, NBFMA members hired on or after
October 1, 1997 shall (prospectively) accrue flex leave at the same rate
as members hired prior to October 1, 1997. NBFMA 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:
E
Longevity •
Years of Accrual Accrual Pay
Con't. Svc Hours /Pay Period Hours /Pay Period Increase
The Flex leave program shall be administered as follows:
a. NBFMA 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. NBFMA members who are staff 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 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 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
8 0
Line Employees
Staff Employees
Less than 5
8.77
6.26
0.00%
5 but less than 9
9.69
6.92
0.00%
9 but less than 12
10.62
7.58
0.00%
12 but less than 16
12.00
8.57
0.00%
16 but less than 20
12.00
8.57
1.5%
20 but less than 25
12.00
8.57
2.5%
25 and over
12.00
8.57
3.5%
The Flex leave program shall be administered as follows:
a. NBFMA 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. NBFMA members who are staff 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 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 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
8 0
• the absence should be charged to the member's flex leave
account.
d. Subject to the provisions of Section 2(I), prior to the effective date
of this MOU, members were entitled to accrue flex leave up to a
maximum of 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. NBFMA members
may, at any time, elect to receive pay (at the member's normal
hourly rate) for all accrued flex leave in excess of 72 hours for a
line employees and 40 hours for staff employees. However,
NBFMA members may not elect to buy down accrued Flex Leave
below the current threshold for payment (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.
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. Members shall be paid for all accrued flex leave at their then
current hourly rate of pay upon termination of the employment
relationship.
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 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 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
NBFMA 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."
C. Vacation /Sick Leave •
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 Personnel Manual of the City of Newport Beach. Line employees shall
accrue sick leave at the rate of twelve hours per month and staff employees shall
accrue sick leave at the rate of eight hours per month.
D. Holiday Time
1. Accrual
The provisions of this subsection shall apply to all NBFMA members on a
pro -rata basis. NBFMA members who are line employees shall accrue
holiday time at the rate of 5.54 hours per pay period. NBFMA who are
staff employees shall accrue holiday time at the rate of 3.96 hours per pay
period.
All employees including Staff Employees shall receive their holiday time in
pay (PERSable). Holiday pay shall be paid bi- weekly with the regular
check.
2. Staff Employees •
Staff Employees may be required to take specified City holidays off, in the
sole discretion of the Fire Chief. Time will be charged against the
employee's flex (or vacation) leave bank.
E. 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 employees shall be entitled to
five (5) working days of Bereavement Leave per calendar year while Line
Employees shall be entitled to ninety (90) hours of Bereavement Leave per
occurrence. 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.
10 •
• F. Jury Duty
NBFMA members who are assigned to line positions and are called to jury duty
shalt be excused for each 24 hour shift during which the member is required to
attend court and sit on a jury or await assignment.
G. Family Sick Leave
Unit employees shall be entitled to use one -half (1/2) of their annual sick leave
accrual for an illness of a dependent which requires the presence of the
employee. Leave shall be administered in accordance with the provisions of the
Employee Policy Manual. The provisions of this Section shall not be construed
to affect or reduce the right of any employee to any unpaid family medical leave
authorized by State or Federal law.
H. Flex Leave Premium Pay Account
On request NBFMA 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 78 times their bi- weekly Flex Leave accrual rate as of June 30,
1994 (Flex Leave Premium 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 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.
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 final base salary for a percentage of the
employees accrued but unused Sick Leave computed as follows:
YEARS OF SERVICE: PERCENT OF UNUSED
SICK LEAVE:
LESS THAN 10 NONE
10 BUT LESS THAN 15 25%
15 BUT LESS THAN 20 37.5%
• 20 OR MORE 50%
1 1.
Payment for accrued but unused Sick Leave shall be limited to the first 800 •
hours of accrued Sick Leave or 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).
J. 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 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.
K. Worker's Compensation Leave
Any Safety NBFMA 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.
L. 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. 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.
12 •
• SECTION 4. -FRINGE BENEFITS
A. Medical 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. City Contribution
The City has implemented an IRS qualified Cafeteria Plan. The City
contribution toward the Cafeteria Plan shalt be as set forth
below.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 Beach Fire Management
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 June 25, 2005 the City's contribution towards the Cafeteria Plan
will increase to $674 (plus the minimum CalPERS participating employer's
contribution).
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).
Effective upon the ratification of this agreement, NBFMA members who do
not want to enroll in any health care plan offered by the City must provide
evidence of health care insurance coverage, and execute an opt out
•1.3
3.
Eli
agreement releasing the City from any responsibility or liability to provide
health care 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.
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 Short -term (STD) and Long -term (LTD) disability
insurance to all regular full time employees with the following provisions:
Weekly Benefit
Maximum Benefit
Minimum Benefit
Waiting Period
66.67% gross weekly wages
$10,000 /month
$50
30 Calendar Days
Employees shall not be required to exhaust accrued paid leaves prior to
receiving benefits under the disability insurance program. Employees
14
•
CJ
11
• 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.
4. 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.
• C. Retirement Benefits
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. 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. NBFMA acknowledges that the City is
making this payment pursuant to a specific request of NBFMA to do so.
2. The City's contract with PERS shall also provide 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.
• 15
C. The Level 4 1959 Survivors Benefit. •
d. 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.
e. 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.
D. 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 of $16 per month
employer contribution to said plan on behalf of the annuitant.
a. The City has implemented a $400 per month cap for retiree •
medical insurance premium contributions as agreed to by the City
and the Newport Beach Fire Management Association. In
accordance with existing agreements, the City and active
employees shall be responsible for 3 /4ths (1/2 City and 1/4 actives)
of retiree medical insurance premium under this program to a
maximum of $400. Retirees shall be responsible for any remaining
medical insurance premiums.- The employee's current share of the
retirement contribution in accordance with the formulas set forth
above shall be 44.07 per month.
Subsequent contribution levels shall be set annually, in accordance
with the formula described above. Prior to increasing the
deductions for the employee's contribution share, the City shall
provide the NBFMA 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 NBFMA prior to any increases in employee deduction
levels. The parties agree that any increase will take effect as soon
as possible after January 1.
b. In order to
accumulate funds to meet
the potential unfounded
liability in
retiree medical insurance
premium payments as
16
•
• projected by the City's actuary and in addition to the contribution in
(a) above; each NBFMA unit employee will contribute $10 per
month and the City shall contribute $20 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 NBFMA mutually agree to
end the funding on behalf of NBFMA members.
Accumulated funds from the employee and employer contributions
described above shall be held separate from the City's general
fund. The funds for the unfunded liability account shall be kept in
an interest bearing account and may only be used to pay for
unfounded retiree medical insurance premiums not covered by the
funds collected under above.
In the event the retiree medical insurance program described
herein is discontinued, NBFMA members will receive an accounting
on any remaining funds and the City will immediately meet and
confer with NBFMA on the distribution of said funds back to active
(not retired /full -time) City employees in the NBFMA unit.
The City will provide NBFMA 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
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
17
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 1st based on status as of
December 31s of the prior year).
iii. Part C contributions (leave settlement as determined by
Association):
The Association has determined that the level of contribution
for all employees it represents will be 100% of sick leave. Any
future changes to this level are subject to the following
constraints. All employees within the Association must
participate at the same level. 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.
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.
18 •
• 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
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
• 19
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
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.
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.
20 •
• 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 satisfies the
requirements in paragraph D1.b. of Section 4 (Fringe Benefits)
regarding an accounting and potential distribution of
contributions upon discontinuation of the previous version of
the Retiree Medical Program.
iv. Current Employees Remaining on 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 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.
•<.1
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).
E. Tuition Reimbursement •
Maximum tuition reimbursement for NBFMA members shall be $1,000 per fiscal
year.
1. College Courses
NBFMA 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
NBFMA 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
22 •
• 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.
F. Annual Physical Examinations
All NBFMA members shall participate in the Department Fitness Program as
outlined in Department SOP,
G. Physical Conditioning Equipment/Apparel
• City shall provide workout apparel for each NBFMA member. Workout apparel
shall consist of three workout shirts and two trunks. NBFMA members shall wear
City provided workout apparel when working out on duty.
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.
is 23
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:
Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in 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 any Classification,
seniority shall mean the time an employee has worked within
any Series.
C. "Classification" shall mean one or more full time positions identical
or similar in duties and embraced by a single job 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 Class ification(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 re- certified as an EMT or 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.
24 •
• 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;
G. 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 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 Personnel Resolution.
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
• 25
C.
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 past 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. Demotion
Permanent and probationary employees who are demoted because of
reduced staffing levels shall be placed on a Department promotional list in
reverse order of demotion. This promotional list shall remain in effect until
exhausted by removal of all names on the list.
6. Severance Pay
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.
Discipline Plan •
Employees of this Association are exempt from disciplinary leave of less than
five (5) days.
Fire Suppression Staffing Levels
Move -up coverage shall be used to staff the fire suppression battalion chief
position in the absence of available battalion chiefs.
D. Staff Assignment Schedule
As a matter of past practice, staff employees have worked various schedules
including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past
practice, been required to attend meetings or training sessions on days off by
switching their normal day off and have not received compensation. When the
parties have agreed not to alter any rights that members may have as a result of
any past practice, NBFMA members shall select, in writing, one of the preceding
schedules of the schedule option selected. The staff member shall be entitled to
work that schedule unless that work schedule would significantly interfere with
the ability of the member to perform his /her required duties. All NBFMA
members assigned to work a forty hour work week shall have the option to work
any of the following schedules:
26 •
• Five eight hour days, Monday through Friday.
- Four ten hour days.
- Nine eighty work schedule.
E. Dues Checkoff
NBFMA members shall have the right to authorize the City to deduct regular
monthly NBFMA dues from their bi- weekly paycheck. The City shall deduct
payment of NBFMA dues when the employee has authorized such deduction
and City shall remit all payments to NBFMA in accordance with the terms of each
member's authorization.
Executed this day of , 2005
in
NBFMA
By:
• NBFMA
CITY OF NEWPORT BEACH
John Heffernan, Mayor
ATTEST:
IN
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
Robin Clauson, City Attorney
• 27
EXHIBIT A
FIRE MANAGEMENT ASSOCIATION
REPRESENTED CLASSIFICATIONS
Class
Code Classification
F315 Fire Line Battalion Chief
F305 Fire Division Chief
F310 Fire Deputy Chief
F320 Fire Marshal
Compensation
Section 2 (a) (i)
F315 + 12.5%
F315 + 18 %
F315 + 12.5%
is
•
28 •