HomeMy WebLinkAbout08 - Newport Beach Fire Management Association Labor Agreement� CITY OF
NEWPORT BEACH!
COUNCIL STAFF REPORT
Agenda Item No. 8
August 14, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Dave Kiff, City Manager
APPROVED: �LN—, 1(-^A.
V
TITLE: Labor Agreement: Newport Beach Fire Management Association
ABSTRACT:
The City's negotiators and the Newport Beach Fire Management Association have
reached a tentative agreement on a Memorandum of Understanding (MOU) for the term
of January 1, 2012 through June 30, 2014. The Council's ratification of the MOU would
complete the agreement.
RECOMMENDATION:
Authorize Mayor Gardner to execute a Memorandum of Understanding (MOU)
with the Newport Beach Fire Management Association ( NBFMA).
Adopt Resolution No 2012 -76 to change the reporting of the Employer Paid
Member Contribution (EPMC) for the PERS retirement benefit (as provided for in
the proposed MOU).
FUNDING REQUIREMENTS:
See financial information in the body of the discussion text.
DISCUSSION:
The Fire Management Association is the recognized labor bargaining unit for employees
in the classifications of Fire Battalion Chief and Fire Division Chief. The Memorandum
of Understanding between the City and the NBFMA expired December 31, 2011 and
City and NBFMA negotiators have been meeting and conferring since November 2011
on a successor MOU. A number of key issues took time to address and it was
necessary for negotiations to continue past the expiration date.
Labor Agreement: Newport Beach Fire Management Association
August 14, 2012
Page 2
Consistent with direction provided by the City Council in closed session, which was in
accordance with the Brown Act 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 principal provisions of the Memorandum of Understanding between the
City and NBFMA are as follows:
1. Term — January 1, 2012 through June 30, 2014,
2. Pension Contributions - Employer -Paid Member Contribution (EPMC):
a. NBFMA members currently contribute 3.5% of base pay to the City to help
offset retirement costs. Under the new MOU this deduction would roll into a
permanent contribution of 3.5% of compensation towards the "Employee
Share" of the 3% at 50 Pension program for current employees. Concurrently
with the timing of this 3.5% switch, the amount paid and reported as EPMC
would reduce from 9% to 5.5 %.
b. NBFMA members would, in the course of the MOU, pay an additional 5.5% of
compensation towards the Employee Share, making the total paid by
employees nine percent (9 %). Nine percent is the full "Employee Share" for
the PERS 3% at 50 Safety formula. Each time an additional percentage is
paid by the employee, EPMC would be reduced until it reaches zero (and
would be reported as zero).
c. To institute the changes to the Employer Paid Member Contribution the City
Council must rescind prior agreements and adopt a Resolution defining the
new terms (Attachment B).
3. 2nd Tier for New Hires. This MOU proposes that new employees to the NBFMA
membership be brought in under the following "2 "d Tier" retirement formula:
a. A hybrid formula combining a "Defined Contribution (DC)" and a "Defined
Benefit (DB)" plan. The defined benefit would be a 2% at 50 Formula, with
the new employee paying the full 9% employee share, 0% EPMC, and the
employee's pensionable salary being based on the highest three -year
average compensation. The DC side would be a voluntary contribution made
by the employee of 1.5% of salary (or more, if the employee seeks to do so).
The City would match any contribution up to 1.5 %.
4. Cost of Living Adjustment (COLA). This MOU proposes the NBFMA membership
receive two "collared" COLAs. Both would be based on the change in the Consumer
Price lndex (CPI) from generally a year prior with a floor of 1% and a cap of 2 %. As
a result, the minimum COLA in this MOU period would be 2% with the maximum at
4 %. The current cost of living has been increasing at slightly more than 3% per
year.
Labor Agreement: Newport Beach Fire Management Association
August 14, 2012
Page 3
5. Medical Insurance Contribution. The City's "cafeteria" plan sets aside a sum of
money per month for each employee to purchase medical insurance from one of the
City's vendors, or to take cash if other insurance is available through a spouse or
partner. Currently, NBFMA members receive $1,049 1month plus an additional
amount if they are in a PERS medical program. This MOU proposes that the City's
contribution gradually increase to $1,274 /month over the course of the MOU.
6. Other Items. The negotiators have tentatively agreed to these additional changes:
a. Severance pay would be capped at 10 weeks (otherwise one week for every
year worked in Newport Beach).
b. Salary range adjustment of 0.5% to maintain salary alignment with
classifications in the Firefighters Association.
c. Assignment pay for Battalion Chiefs assigned to a staff position.
d. "Unit Pay." New hires would not be eligible for Scholastic Achievement Pay if
they received only educational units, not degrees.
e. If a person separates from employment, cash -out of certain leave time would
be at 100% of the amount, not 109% as was in the prior MOU.
f. Reduction of leave accrual maximums from 78 times the bi- weekly benefit to
52 times the bi- weekly benefit.
g. Persons who opt -out of the City's Medical Plans (and who have other
insurance) have a cap of $1,149 1month.
The estimated fixed costs to implement the provisions of this MOU are about $19,508
over the 30 month term, but this does not include quantification of any savings
associated with eliminating "PERS on PERS" as well as reducing the overall
pensionable compensation curve for FMA members (savings estimated at about
$35,000 — resulting in a net savings with this MOU of about $15,000 over the 30 -month
term).
I will conclude this staff report noting my appreciation for the cooperative spirit with
which the NBFMA approached these MOU discussions. MOU discussions are never
easy, and they were especially challenging this term, as the City sought additional
pension contributions.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
Labor Agreement: Newport Beach Fire Management Association
August 14, 2012
Page 4
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
_�. - L� .,
Dave Kiff
City Manager
Attachments: A. Proposed Memorandum of Understanding with NBFMA
B. Resolution to Modify EPMC Reporting
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, 2012 to June 30, 2014 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 this 2012 -2014
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.
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
1 NBFMA MOU 2012 . 2014 C}
considered effective as of January 1, 2012. This MOU shall remain in full
force and effect until June 30, 2014, 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
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, age, sexual orientation, or
other statutorily or constitutionally impermissible basis, as well as any
pornographic or obscene material.
2 NBFMA MOU 2012 - 2014
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, age, sexual orientation, or other
statutorily or constitutionally impermissible basis, as well as any
pornographic or obscene material. E -Marl may be used for Association
business on a limited basis and consistent with Department Policy.
E. Conclusiveness
This MOU contains ali 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.
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.
3 NBFMA MOU 2012 - 2014 .)
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 in Exhibit A.
2. Salary Adjustments — this MOU Period
a. Effective the pay period following adoption of this 2012 -14 MOU, the
salary range for Fire Line Battalion Chief will be increased by .5 %.
b. Effective the first payroll period commencing on or after January 1,
2013, there shall be a base salary increase of not less than 1.0 %, nor
more than 2 %. The precise amount of the increase shall be
determined with reference to the percent increase in the Consumer
Price Index (All Urban Consumers) for the Los Angeles, Riverside,
Orange County areas for the 12 consecutive months ending on
November 30, 2012. If there is either no increase in the CPl or the
increase is less than or equal to 1.0 %, the base salary increase shall
be 1.0 %. If the increase is greater than 1.0 %, the base salary increase
shall be in the same amount, but in no event, greater than 2.0 %.
4 NBFMA MOU 2012 - 2014 e
c. Effective the first payroll period commencing on or after January 1,
2014, there shall be a base salary increase of not less than 1.0 %, nor
more than 2 %. The precise amount of the increase shall be
determined with reference to the percent increase in the Consumer
Price Index (All Urban Consumers) for the Los Angeles, Riverside,
Orange County areas for the 12 consecutive months ending on
November 30, 2013. If there is either no increase in the CPI or the
increase is less than 1.0 %, the base salary increase shall be If there is
either no increase in the CPI or the increase is less than or equal to
1 -0%, the base salary increase shall be 1.0 %. If the increase is
greater than 1.0 %, the base salary increase shall be in the same
amount, but in no event, greater than 2.0 %,
B. Overtime - Hours Worked
Except as provided in Section B(2), 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. Strike Team Actions. In the event that a Unit employee is assigned to provide
fire suppression services as part of a regional, state, or federal strike team
organized by State or Federal officials and when all of the below Conditions
exist, that Unit employee shall be paid at the time and one -half (T' /2) 56 -hour
rate. The Conditions are:
• The Unit employee is working overtime hours;
• The Strike Team is operating outside of the city limits;
• The Unit employee is on duty on the Strike Team for more than eight
(8) hours;
• A disaster declaration has been approved by the State or Federal
government for the fire suppression action; and
• The costs for these overtime hours are specifically authorized for
reimbursement by the state or federal government-
3. Compensatory Time. In lieu of overtime members may elect to accrue
compensatory time off. Staff personnel may accrue a maximum of 200 hours.
Line personnel may accrue a maximum of 144 hours. Personnel must use all
accrued compensatory time by time of retirement. The provisions for accrual
and use of compensatory time shall be provided in Fire Department Standard
Operating Procedure 7.C.203.
5 NBFMA MOU 2012 - 2014 j
C
0
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 $1,719.00 to PERS.
The City will provide an adequate number of reserve turnouts at Battalion
Headquarters 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.
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:
lob class range
2 or more
30
1.5%
3 or more
BO
2.5%
5 or more
90
3.5%
5 or more
120
4.5%
5 or more
B.A. /B.S.
5.5%
6 NBFMA MOU 2012 - 2014
E
F
Effective upon adoption of this 2012 -2014 MOU, employees having obtained
college units only will be ineligible to receive scholastic achievement pay.
Employees will be eligible to receive the following Scholastic Achievement
Pay:
Years of Service De ree
3 or more AA/AS
5 or more BA/BS
2. Certificate Pay
Coursework
Completion of coursework for
Certified Chief Fire Officer
Bilingual Pay
Scholastic Pay%
3.5%
5,5%
Monthly Compensation
Effective June 21, 2008
increase to 3.0% month
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.
Court Standby PaV
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.
7 NBFMA MOU 2012 - 2014 1 j
SECTION 3. - LEAVES
A. Flex Leave
1. 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:
Longevity
Years of Accrual Accrual Pay
Con't. Svc Hours /Pav Period Hours /Pav Period Increase
2. The Flex ieave 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 members 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
8 NBFMA MOU 2012 - 2014 1',
Line Employees
Staff Employees
Less than 5
9.77
6.97
0.00%
5 but less than 9
10.69
7.63
0.00%
9 but less than 12
11.62
8.33
0.00%
12 but less than 16
12.54
8.95
0.00%
16 but less than 20
12.54
8.95
1.5%
20 but less than 25
12.54
8.95
2.5%
25 and over
12.54
8.95
3.5%
2. The Flex ieave 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 members 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
8 NBFMA MOU 2012 - 2014 1',
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. Effective October 1, 2012, members may accrue flex leave up to a
maximum of fifty -two (52) times the members bi- weekly accrual
rate. Earned flex leave in excess of the maximum permitted will be
paid bi- weekly at the member's hourly rate of pay ( "Spillover 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 (52 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.
Employees, who have accrued in excess of fifty -two (52) times the
member's bi- weekly accrual, shall accrue no additional time, unless
through use of the time or any authorized cash payment, the
accrued hours decrease to less than fifty -two (52) times the bi-
weekly accrual rate. In no case shall the accrual again exceed fifty -
two (52) times the bi- weekly accrual rate.
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. Telestaff Selection System
The City has implemented Telestaff which phased out the Vacation Selection
System (VSS). The City commits to maintain Telestaff 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 Telestaff. 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
17
NBFMA MOU 2012 - 2014
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 event while Line Employees
shall be entitled to ninety (90) hours of Bereavement Leave per event.
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 an employee's father, mother, brother, sister, wife, husband, child, or
grandparent, and the employee's spouse's mother, father, brother, sister, child or
grandparent. 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 NBFMA MOU 2012 - 2014 1 t.i
F
L
Jury Du
NBFMA members who are assigned to line positions and are called to jury duty
shall be excused for each 24 hour shift during which the member is required to
attend court and sit on a jury or await assignment.
Family Sick Leave
Unit employees shall be entitled to use one -half (112) 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
Each member shall, upon termination, resignation, retirement or other
separation from service, receive terminal pay at the rate of 100% 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 100% of their final base salary 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:
NONE
25%
37.5%
50%
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 100% of their base salary per hour for 450 hours of Sick
Leave - 1200 hours multiplied by .375).
11
NBFMA MOU 2012 - 2014 Ir_
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 100% 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 100% 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 517.
K. Release Time
The Association will have an account of thirty -six (36) hours per year to be used
for the purposes of educational development of the unit members in employer -
employee relations. The Association shall submit a request to use the release
time to the Fire Chief, and the Fire Chief may grant the request based on current
operational needs.
SECTION 4. - FRINGE BENEFITS
12 NBFMA MOU 2012 • 2014 (.
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. In addition to
the amounts listed below, the City shall contribute the minimum CaIPERS
participating employers 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 NBFMA 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 the pay period beginning on or immediately or after.-
• January 1, 2012, the City's contribution towards the Cafeteria
Plan will increase to $1,149 (plus the minimum CaIPERS
participating employer's contribution.)
• January 1, 2013, the City's contribution towards the Cafeteria
Plan will increase to $1,174.00 (plus the minimum CalPERS
participating employee's contribution.)
• January 1, 2014, the City's contribution towards the Cafeteria
Plan will increase to $1,274.00 (plus the minimum CaIPERS
participating employee'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
13 NBFMA MOU 2012 - 2014 1 /
t.,
n
4
agreement releasing the City from any responsibility or liability to provide
health care insurance coverage on an annual basis.
Those members participating in the opt -out program shall be permitted to
cash out no more than $1,149.00 monthly.
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
66.67% gross weekly wages
$1 0,000/month
$50
Waiting Period 30 Calendar Days
14
NBFMA MOU 2012 - 2014 1
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.
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. Current Members
a. The City provides the Public Employees' Retirement System
retirement formula of 3% at 50.
b. Effective the first payroll period following adoption of this MOU, the
April 13, 2010 Supplemental Memorandum of Understanding
SECTION 4 FRINGE BENEFITS shall be modified to reflect that
the 3.5% payroll deduction made by all unit employees as regards
funding of retirement, shall continue in said amount but shall be
made pursuant to Government Code § 20691.
C. Effective the first payroll period commencing on and after January
1, 2013, unit members shall pay 7% of compensation as and for the
individual member's normal employee PERS contributions required
to be paid to PERS. Said payment shall be made pursuant to
Government Code § 20691.
d. Effective the first payroll period commencing on and after July 1,
2013, unit members shall pay 9% of compensation as and for the
15 NBFMA MOU 2012 - 2014 `1
individual member's normal employee PERS contributions required
to be paid to PERS. Said payment shall be made pursuant to
Government Code § 20691.
2. The City's contract with PERS shall also provide for:
a. The military buy -back provisions pursuant to Section 20930.3 of the
California Government Code and the highest year benefit pursuant
to Section 20042.
b. The Level 4 1959 Survivors Benefits.
C, The pre- retirement option settlement 2 death benefit
(Section 21548).
3. To the extent during the term of this Memorandum of Understanding, that
the City pays a portion of the normal PERS contributions of members, said
payments shall be reported to PERS as special compensation as is
authorized by Government Code §2O636(c)(4).
Payment by any unit member of the individual member's normal employee
PERS contributions required to be paid by PERS, shall not be reported to
PERS as special compensation as was authorized by Government Code §
2O636(c)(4) or by any other authority.
4. New Hires — 2r' Tier. All employees hired into an NBFMA classification
(a) from an outside agency; or (b) from the City of Newport Beach Fire
Department who is a 2% at 50 member shall, following City Council
adoption of this 2012 -2014 Memorandum of Understanding and
implementation of the necessary PERS contract amendments, be subject
to the following retirement benefits.
a. The 2% at 50 retirement formula with the retiree's annuity being
calculated based upon the employee's highest average annual
compensation eamable during any period of three consecutive
years of employment during membership in CaIPERS.
b. All such hires shall pay 100 % of the statutorily mandated employee
PERS contribution.
C. Unless specifically modified herein, said newly hired employees
shall be subject to other then - existing City -PERS contract
provisions.
d. To the extent allowed by PERS, the IRS and other applicable
regulatory agencies and laws, unit members who shall be enrolled
16 NBFMA MOU 2012 - 2014 J('
in the 2% at 50 retirement formula, shall be eligible to participate in
a defined contribution plan to be administered by the City or its
designee in accord with said regulatory agency regulations and
laws. The defined contribution plan shall be funded by allowing
each affected employee to contribute a percentage of base salary
each payroll period. The City shall match any such employee
contributions up to a maximum of 1.5% of base salary. The
employee only contributions shall be deemed fully vested at the
time of its deposit. The employer only matching contribution shall
vest upon a PEPS retirement being implemented as follows: 100%
- age 55 +; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age
51
In the event that the City in its sole judgment determines that
implementation of this defined contribution plan is (or will be) invalid
or otherwise unlawful, the parties shall reopen the meet and confer
process only as to the issue of a replacement for the defined
contribution plan, with neither party being obligated to reach
agreement as to a replacement benefit.
D. Retiree Medical Benefit
1, Background
In 2005, the City and all Employee Associations agreed to replace the previous
"defined benefit" retiree medical program with a new "defined contribution"
program, The process of fully converting to the new program will be ongoing for
an extended period. During the transition, employees and (then) existing retirees
have been administratively classified into one of four categories. The benefit is
structured differently for each of the categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2005
b. Category 2 - Active employees hired prior to January 1, 2006, whose
age plus years of service as of January 1, 2005 was less than 50 (46 for
public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006, whose
age plus years of service was 50 or greater (46 for public safety
employees) as of January 1, 2005.
d. Category 4 - Employees who had already retired from the City prior to
January 1, 2006, and were participating in the previous retiree medical
program.
17 NBFMA MOU 2012 - 2014
2. Program Structure
This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program
Plan (MERP).
a. For employees in Category 1, the program is structured as follows:
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
separation. 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 contributions): 1 % of Salary.
Part B contributions (employer contributions). $2.50 per month for each
year of service plus year of age (updated every January Vi based on status
as of December 31 �`i of the prior year).
Part C contributions (leave settlement as determined by Association):
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 within an Association 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.
For example, if the Association wishes to specify 50% of the leave balance
as the participation level, then each member leaving the City, or cashing out
leave at any other time, would have the cash equivalent of 50% of the
amount that is cashed out added to the MERP, on a pre -tax basis. The
remaining 50% would be paid in cash as taxable income. Individual
employees would not have the option to deviate from this breakout.
The Association has decided to participate in Part C contributions at the
level of 100% Flex, 0% Sick, and 0% comp time. This amount may be
changed, on a go forward basis, as part of a future meet and confer
process. However, the participation level must be the same for all
18 NBFMA MOU 2012 - 2014
employees within the Association except that Safety members and Non -
safety members within an Association may have different levels.
Additionally, the purpose and focus of these changes should be toward
long -term, trend type adjustments. Due to IRS restrictions regarding
"constructive receipt," the City will impose restrictions against frequent
spikes or drops that appear to be tailored toward satisfying the desires of a
group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the MERP Part C contributions,
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 specfes 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 PIERS 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 vested 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 bi- weekly. Part C deposits, if any, will be made at
the time of employment separation.
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 separation. 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.
Such an employee will not be entitled to any Part B contributions. The
exception to this is a full -time employee, participating in the program, who
leaves the City due to industrial disability during the first five years of
employment. In such cases, the employee will receive exactly five years
worth of Part B contributions, using the employee's age and compensation
at the time of separation for calculation purposes. This amount will be
deposited into the employee's MERP account at the time of separation.
19 NBFMA MOU 2012 - 2014
Distributions from MERP Employee Accounts are restricted to use for health
insurance and medical care expenses after separation, 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
Employee 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.
b. For employees in Category 2, the program is the same as for those in
Category_ 1. with the following exception:
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 MERP accounts that equates to $100 per
month for every month they contributed to the previous "defined benefit"
plan, to a maximum of 15 years (180 months). This contribution will be
made only if the employee retires from the City and at the time of retirement.
No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the City
prior to implementation of the new program will only receive Part B
contributions back to January 1, 2006 when they reach five years total
service.
c. For employees in Category 3, the program is the same as for those in
Category 2, with the following exception:
20 NBFMA MOU 2012 - 2014
For employees in this category, the City will make no Part B contributions
while the employees are still in the active work force. Instead, the City will
contribute $400 per month into each of their MERP accounts after they
retire from the City, to continue as long as the employee or spouse is still
living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to the
City. The maximum benefit provided by the City after retirement is
$4,800.00 per year, accruing at the rate of $400.00 per month. There is no
cash out option for these funds, and they may not be spent in advance of
receipt.
Employees in this category will also receive an additional one -time City
contribution of $75 per month for every month they contributed to the
previous plan prior to January 1, 2006, up to a maximum of 15 years (180
months). This contribution will be made to the MERP account at the time of
retirement, and only if the employee retires from the City. No interest will be
earned in the interim.
d. For employees (retirees) in Category 4, the structure is very similar to the
previous retiree medical program, except that there is no cost share
requirement, and the $400 City contribution after retirement can be used for
any IRS authorized purpose, not just City insurance premiums.
Effective July 1, 2006, a MERP account has been opened for each retiree in
this category, and the City will contribute $400 per month to each account
as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. 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, or its successor committee, will
have the authority to determine investment options that will be available through
the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is based (Part
A); plus .25% of other compensation (Part B).
21 NBFMA MOU 2012 - 2014 r
E. Tuition Reimbursement
Maximum tuition reimbursement for NBFMA members shall be $1,500 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- Collene 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
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.
22 NBFMA MOU 2012 - 2014 v (f
G, Physical Conditioning Equipment/Apparel
City shall provide workout apparel for each NBFMA member, to be replaced on
an "as needed" basis. 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 speck 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:
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 full time position 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
23 NBFMA MOU 2012 - 2014 ..�
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 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.
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 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
24 NBFMA MOU 2012 - 2014 .� `�
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 law, the provisions of this Memorandum of Understanding, or City
policy.
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 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, but in no case to exceed ten (10) weeks of
severance compensation.
25 NBFMA MOU 2012 - 2014 'hC1
B. Discipline Plan
Employees of this Association are exempt from disciplinary leave of less than five
(5) days.
C. Fire Suppression Staffinq Levels
Move -up and move -down coverage shall be used to staff the fire suppression
battalion chief position in the absence of available battalion chiefs.
D. Staff Assignment Schedule
NBFMA members assigned to staff positions shall have the option to work a
5140, 4110 or 9180 schedule; the staff member and the Fire Chief must mutually
agree to the schedule selected prior to 9 becoming effective. The Fire Chief
retains the right to assign the staff member to a different schedule, or deny the
member's request for a change of schedule, if the Fire Chief determines that the
member is not able to perform their job duties or the operational needs of the
department are not being met. Employees will be given 2 weeks' notice if the Fire
Chief determines a change in schedule is needed in order to minimize disruption
of the member's personaUprofessional obligations. In addition, occasionally and
at the discretion and approval of the Fire Chief, FLSA exempt employees working
a 4110 or 9180 schedule may adjust their regularly scheduled day off if such
change does not disrupt departmental operations.
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.
Signatures on the following page
26 NBFMA vlOU 2012 - 2014 `'
Executed this day of August, 2012.
NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION (NBFMA)
By: G4—
Chip Duncan, President, NBFMA
By: j��
eff Boyles, % e= PJesident, NBFMA
CITY OF NEWPORT BEACH
ATTEST:
2.1
Nancy Gardner, Mayor
Leilani Brown, City Clerk
APPROVED AS TO FORM:
By: A — C 6. ��'
Aaron Harp, City Attorney
27 NBFMA MOU 2012 - 2014 ��
Class
Code
F315
FXXX
F305
F306
EXHIBIT A
FIRE MANAGEMENT ASSOCIATION
REPRESENTED CLASSIFICATIONS
Classification
Fire Line Battalion Chief
Staff (Training) Battalion Chief
Fire Division Chief
Fire Line Division Chief
m
Compensation
Section 2 (A) (1)
F315 + 7.5%
F315 + 12.5%
F315 + 12.5%
NBFMA MOU 2012 - 2014 /
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ATTACHMENT B
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NO. 94-47 TO MODIFY THE PAYING
AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER
CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY THE NEWPORT
BEACH FIRE MANAGEMENT ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolution No. 9447 to pay and report the value of the 9% Employer
Paid Member Contribution (EPMC) to CaIPERS for employees represented by
the Newport Beach Fire Management Association; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement; and
WHEREAS, the City Council of the City of Newport Beach and the
Newport Beach Firefighters Association have a written agreement which
specifically provides a portion of the normal member contribution to be paid by
the employer and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees represented by
the Newport Beach Fire Management Association (NBFMA).
Section 2. Effective August 25, 2012 this benefit shall be modified
to consist of paying 5.5% of the normal contributions as EPMC and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation.
Section 3. Effective the first payroll period commencing on or after
January 1, 2013, this benefit shall be modified to consist of paying 2.0% of the
normal contributions as EPMC and reporting the same percent (value) as
compensation earnable (excluding Government Code Section 20636(c)(4)) as
additional compensation.
Section 4. Effective the first payroll period commencing on or after
July 1, 2013, this benefit shall be modified to consist of paying 0% of the normal
contributions as EPMC and reporting the same percent (value) as compensation
earnable (excluding Government Code Section 20636(c)(4)) as additional
compensation.
Adopted this day of August, 2012
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ATTEST:
City Clerk
Mayor of the City of Newport Beach