HomeMy WebLinkAbout05 - Supplemental MOU for NB Fire Management Associatoin (NBFMA)CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
November 23, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager
949 - 644 -3000, dkiff(a)newportbeachca.gov
Terri L. Cassidy J.D., Human Resources Director
949 - 644 -3303, tcassidy(a)newportbeachca.gov
SUBJECT: Approval of Resolution Adopting a Supplemental Memorandum of
Understanding between the City of Newport Beach and the Newport
Beach Fire Management Association; and Adoption of Resolution
Implementing a CalPERS Time -In -Grade Exception
ISSUE:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the
Newport Beach Fire Management Association (NBFMA) expires December 31, 2010,
and City and NBFMA representatives have met and conferred and reached a tentative
agreement for Supplemental MOU. The City Council may consider approving the
resolutions to adopt the Supplemental MOU and implement a Time -in -Grade Exception,
as provided for the in tentative agreement.
Staff recommends the City Council approve the following:
1) A resolution adopting a Supplemental MOU between the City of Newport Beach
and the NBFMA, extending the term to December 31, 2011, (Attachment A), and
2) A resolution implementing a Time -in -Grade Exception for newly hired
employees, effective the date of adoption of the resolution (Attachment B).
DISCUSSION:
In February 2010, City representatives and representatives from the Newport Beach
Fire Management Association began meeting and conferring in good faith to negotiate
the provisions of a successor MOU. Over the next several months there was significant
change in the management of the Fire Department, as well as turnover in FMA
Supplemental MOU with NBFMA
November 23, 2010
Page 2
membership, delaying talks between the City and FMA. Recently, in a show of good
faith, the City and FMA resumed talks. Negotiation discussions included the status of
the City budget and the financial challenges facing the City. Recognizing the growing
concern over public employee pensions, the City and NBFMA came to a tentative
agreement for a Supplemental MOU that includes a provision for NBFMA members to
contribute a greater share toward retirement costs, as well as provide a Time -in -Grade
Exception for newly hired employees.
Consistent with direction provided by the City Council in closed session, and in
accordance with the Brown Act, Government Code Section 54957.6 that authorizes the
City Council to confer with the City's negotiators, the City and NBFMA have reached a
tentative agreement. The provisions of the Supplemental Memorandum of
Understanding between the City and NBFMA are as follows:
• Extend the Current MOU by 12 months to December 31, 2011;
• Salaries and cafeteria benefits will remain unchanged;
• Employees promoted into the FMA unit from the Newport Beach
Firefighters Association (NBFA) after July 30, 2010, will contribute 3.5%
toward retirement through a pre -tax payroll deduction, effective November
6, 2010;
• All other unit employees will contribute 5.0% toward retirement through a
pre -tax payroll deduction, effective November 6, 2010;
• New safety hires to pay an additional 5.5% of the 9% Employer Paid
Member Contribution for the first five years of employment (called a "Time -
in -Grade Exception'; required resolution included with agenda report);
• All other terms of the original MOU shall remain unchanged.
The membership of the NBFMA ratified the agreement by a majority vote in favor. The
agreement does not become effective, per Government Code Section 3505.1, until the
governing body, i.e., City Council takes action to adopt it.
Pursuant to Government Code Section 20636(e)(1), the City Council may elect a Time -
in -Grade Exception to allow newly hired employees to pay a greater portion of the
PERS Employer Paid Member Contribution (EPMC). In order for the City Council to
implement the Exception provided for in the Fire Management Association MOU, the
City Council must adopt a resolution defining the terms.
Supplemental MOU with NBFMA
November 23, 2010
Page 3
If the City Council approves the attached resolutions, staff will strive to implement the
terms of the Supplemental MOU and Time -in -Grade Exception as soon as possible.
Environmental Review:
Not applicable.
Public Notice:
Seventy -two hours notice has been given pursuant to the Brown Act. No further notice
is legally required.
Funding Availability:
There is no cost for this recommendation. The employee contribution toward retirement
via pre -tax payroll deduction will provide the City an estimated savings of $43,693.44 for
the contract period.
Submitted by:
Dave Kiff
City Manager
Terri L. Cassidy, J.D.
Human Resources Director
Attachments: A - Resolution Adopting a Supplemental Memorandum of Understanding
B — Resolution Adopting a Time -in -Grade Exception
ATTACHMENT A
i
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTIONG A SUPPLEMENTAL MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT
BEACH FIRE MANAGEMENT ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution ", to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum of
Understanding with the Newport Beach Fire Management Association for the period of
January 1, 2008, through December 31, 2010; and
WHEREAS, representatives from the City of Newport Beach and the Newport Beach
Fire Management Association have met and conferred in good faith and agreed to modify
the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to modify the
Memorandum of Understanding between the City of Newport Beach and the Newport Beach
Fire Management Association by adopting the Supplemental Memorandum of
Understanding:
NOW, THEREFORE, the City Council of the City of Newport Beach does RESOLVE
as follows:
Section 1. The term of the Supplemental Memorandum of Understanding shall
be for 12 months, extending the current Memorandum of Understanding between the City of
Newport Beach and the Newport Beach Fire Management Association to December 31,
2011.
Section 2. Additional changes to wages and benefits shall be modified
pursuant to the provisions of the Supplemental Memorandum of Understanding (Exhibit).
Section 3. All other terms of the current Memorandum of Understanding
between the City of Newport Beach and the Newport Beach Fire Management Association
shall remain unchanged.
Adopted this day of , 2010.
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EXHIBIT
SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION
This Supplemental Memorandum of Understanding modifies the Memorandum of
Understanding between the City of Newport Beach and the Newport Beach Fire
Management Association for the period of January 1, 2008 to December 31, 2010.
Upon the signing of this Supplemental Memorandum, the 2008 -2010 MOU is modified
to incorporate these changes.
SECTION 1. GENERAL PROVISIONS
B. Duration of Memorandum — Amend to read:
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, 2008. This MOU shall
remain in full force and effect until December 31, 2011, 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.
The parties agree that, NBFMA will submit preliminary requests for
changes in wages, fringe benefits and other terms and conditions of
employment not less than 90 days prior to expiration of the MOU,
and that the parties will begin negotiations promptly, with the
objective of reaching an agreement by December 31, 2011.
SECTION 4. FRINGE BENEFITS
D. The Retirement Benefit — Amend to read:
1. Pursuant to Section 20691 of the California Government Code, the
City shall pay to PERS, on behalf of all safety employees covered
by this agreement and hired before November 23, 2010, (or the
effective date of the change in the newly hired employees
contribution, whichever is later) 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. For safety employees hired into the City
after November 23, 2010 (or as soon thereafter as possible based
on PERS approval), the City will pay 3.5% of the member
contribution. Such employees will be eligible to receive the 9% the
beginning of their 6th year of uninterrupted service. In addition, the
Page 1 of 3
amount of the City payment of member contributions (EPMC) 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 employees' 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% @ 50 retirement formula pursuant to the provisions of
Section 21252.01 of the California Government Code.
b. The military service credit as public service pursuant to
Section 21024 of the California Government Code and the
highest year benefit pursuant to Section 20042.
C. The Level 4 1959 Survivors Benefits.
d. Pre - retirement option settlement 2 death benefit pursuant to
Section 21548.
3. Effective November 6, 2010, all safety unit employees hired into the
unit July 31, 2010 or later will contribute 3.5% of base pay towards
retirement costs. Employees hired into the unit prior to July 31,
2010 will pay 5.0 %, also effective November 6, 2010. Both of these
payments will continue through December 31, 2011. These
payments will be made on a pre -tax basis through payroll deduction
pursuant to IRS Code Section 414(h)(2). This contribution will not
affect the reporting of the 9% EPMC for employees hired before
November 23, 2010 (Section 20636)(c)(4) of the California
Government Code.
NEW SEC. TRIAL 48/96 SCHEDULE
The Fire Department has implemented a trial 48/96 schedule. The
schedule may be canceled by the Department, at its discretion.
Except as provided herein, the Memorandum of Understanding between the City and
the Newport Beach Fire Management Association remains in full force and effect.
Signatures are on the next page.
Page 2 of 3
Executed this day of
rM
NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION:
CITY OF NEWPORT BEACH
m
Keith D. Curry, Mayor
ATTEST:
Leilani Brown, City Clerk
APPROVED AS TO
Atto
By:
Chip Duncan, President
r
By:
Je Boyles, Nego is
Page 3 of 3
Executed this l I day of N 0 f Y`1 b ee' , 2010:
NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: (
Chip Duncan, Presidsat
CITY OF NEWPORT BEACH
M.-
Keith D. Curry, Mayor
ATTEST:
Leilani Brown, City Clerk
APPROVED AS TO FORM:
David R. Hunt, City Attorney
Page 3 of 3
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH ADOPTING EMPLOYER PAID MEMBER
CONTRIBUTIONS TIME -IN -GRADE EXCEPTION
ATTACHMENT B
WHEREAS, the City Council of the City of Newport Beach has elected to pay all or
part of the normal member contributions to the California Public Employees' Retirement
System (CaIPERS) pursuant to Government Code Section 20691, and applicable labor
policies and agreements; and
WHEREAS, the City Council of the City of Newport Beach may elect a Time -in -Grade
Exception to said Employer Paid Member Contributions (EPMC) within a given group or
class of employees as defined in Government Code Section 20636(e)(1) and as specifically
authorized in Title 2, California Code of Regulations Section 569; and
WHEREAS, the City Council of the City of Newport Beach desires to implement a
Time -in -Grade Exception and abide by the provisions of Title 2, California Code of
Regulations Section 569.
NOW, THEREFORE, the City Council of the City of Newport Beach does RESOLVE
as follows:
Section 1. The City of Newport Beach shall implement a Time -in -Grade Exception
for employees of the Newport Beach Fire Management Association (NBFMA).
Section 2. The City of Newport Beach elects to continue to pay 9% of the Employer
Paid Member Contribution for all current Newport Beach Fire Management Association
employees.
Section 3. For employees newly hired by the City of Newport Beach into a Newport
Beach Fire Management Association represented position after the date of adoption of this
resolution, the City of Newport Beach shall pay 3.5% of the Employer Paid Member
Contribution.
Section 4. Beginning the sixth (6th) year of uninterrupted service employees subject
to the Time -in -Grade Exception will be entitled to payment of EPMC on the same terms that
apply to other safety employees in the unit.
Adopted this day of 2010.
In
ATTEST:
City Clerk
Mayor of the City of Newport Beach