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HomeMy WebLinkAbout05 - MOU with the NBFA5-1 NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT CITY OF January 26, 2016 Agenda Item No. 5 ABSTRACT: On January 12, 2016, the City Council considered the Tentative Agreement between the City of Newport Beach and the Newport Beach Firefighters Association (NBFA), a recognized employee organization, on the terms of a successor Memorandum of Understanding (MOU) for the period January 1, 2015, through December 31, 2018. The proposed MOU includes changes to wages, benefits and other terms and conditions of employment that are subjects of collective bargaining as required under the Meyers- Milias-Brown Act, California Government Code sections 3500-3510. During the “sunshine” period, prior to adopting the MOU, members of the public had an opportunity to consider the terms of the contract. The complete MOU is presented for City Council’s approval/ratification (or rejection) and is the final step in the meet and confer process, completing the agreement. RECOMMENDATION: a) Adopt Resolution No. 2016-11, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters Association,for the period January 1, 2015 through December 31, 2018; TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov Carol Jacobs, Assistant City Manager, 949-644-3313 cjacobs@newportbeachca.gov PREPARED BY:Maggie Wiliams-Dalgart, Senior Human Resources Analyst PHONE:949-644-3337 TITLE:Memorandum of Understanding with the Newport Beach Firefighters Association Memorandum of Understanding with the Newport Beach Firefighters Association January 26, 2016 Page 2 5-2 b) Adopt Resolution No. 2016-12, A Resolution of the City Council of the City of Newport Beach, California, to Modify the Paying and Reporting of the Value of the Employer Paid Member Contribution to the California Public Employees Retirement System (CALPERS) for Certain Miscellaneous Employees Represented by the Newport Beach Firefighters Association, from 2.42% to 0% for non-safety Miscellaneous members; and c) Approve Budget Amendment No. 16BA-025 in the amount of $669,752 from the General Fund unappropriated surplus fund balance FUNDING REQUIREMENTS: A comprehensive estimate of the costs associated with the successor MOU was provided with the Tentative Agreement on January 12, 2016, and is resubmitted with this report as Attachment D. For FY2015-16, the cost to implement the terms of the contract is $669,752. Sufficient unassigned General Fund balance is available to fund the proposed MOU adoption. DISCUSSION: The NBFA represents 121 fire suppression, fire operations, and emergency medicine staff. Located at the City’s eight fire stations and City Hall, employees in these positions provide fire protection, emergency response, paramedicine, fire prevention, and fire inspection services. Representatives for the City and NBFA began negotiations on June 2015 on the terms of a successor MOU to the one that expired on December 31, 2014. The City was represented by Jon Holtzman of Renne Sloan Holtzman Sakai, Carol Jacobs, Assistant City Manager, Terri Cassidy, Deputy City Manager/Human Resources Director (former), Chip Duncan, Assistant Fire Chief, and Maggie Williams-Dalgart, Senior Human Resources Analyst. The Newport Beach Firefighters Association was represented by Steve Silver of Silver, Hadden, Silver & Levine, Bobby Salerno, NBFA President, Ed Wick, NBFA Vice President, and Mike Mullen, NBFA Representative. The parties met ten times before a Tentative Agreement was reached on December 1, 2015. In keeping with City Council’s goal of sharing pension costs between the City and the employees, contributions to the California Public Employees Retirement System (PERS) was a key topic of discussion during negotiations. NBFA representatives understood the City’s need to continue to address growing pension costs and agreed to increase the employee contribution. At the expiration of the last contract, NBFA safety employees were paying 9 percent of their pay toward the pension benefit. That amount will increase by 3 percent, so that by January 2018 NBFA safety employees will be paying 12 percent toward the PERS retirement benefit, which is among the highest rates of Orange County agencies. Memorandum of Understanding with the Newport Beach Firefighters Association January 26, 2016 Page 3 5-3 Employee pension contributions by the NBFA’s six non-safety members will also increase, from 10.9 percent to 13 percent. As part of the prior agreement with the NBFA the City was paying and reporting to PERS, on behalf of the non-safety members, 2.42 percent as additional compensation under the Employer Paid Member Contribution (EPMC). Included in the 2015-18 MOU is a provision that fully eliminates the EPMC. Attachment C, Resolution No. 2016-12, is required by PERS in order to execute this provision of the contract. Other topics discussed during negotiations represented possible changes in fire service operations, potentially impacting NBFA members. We appreciate the NBFA leadership’s willingness to discuss these topics and agree to future reform measures. Additional contract changes that will provide significant savings include staffing reductions (three vacant positions) by eliminating the fourth fire suppression position on one of the City’s two truck companies (each is currently staffed with four fire suppression personnel), restructuring Paramedic assignment for new employees, reducing the cafeteria allowance for employees opting out of medical coverage, and creating a Firefighter trainee period for new employees. The successor MOU is provided as Exhibit A and includes the following major provisions: 1. Term of four years, from January 1, 2015, through December 31, 2018. 2. Increased employee contributions to the PERS pension benefit: a. Safety employees will contribute an additional .75 percent each year, from 2015 through 2018, for a total of 3 percent. This amount is in addition to the 9 percent employees currently pay. b. Non safety employees will contribute an additional .75 percent in 2015, .70 percent in 2016, and .65 percent in 2017 toward PERS, for a total of 2.1 percent. c. Elimination of the Employer Paid Member Contribution for non-safety employees 3. Reduction in staffing on one of two fire truck companies, by one position per shift for three shifts (3 positions total). 4. Restructuring of the Paramedic classification, from a position rank to a specialty assignment for new employees, that is set 5 percent below current rates; and City sponsored training for up to four Firefighters to attend Paramedic school. Memorandum of Understanding with the Newport Beach Firefighters Association January 26, 2016 Page 4 5-4 5. Wage adjustments each year for all Association members: a. July 1, 2015 - 2.75% b. January 1, 2016 - 2.75% c. January 1, 2017 - 2.75% d. January 1, 2018 - 2.75% 6. Increases to the cafeteria allowance, which is used to purchase medical, dental or vision coverage: a. January 1, 2016, an increase of $150 per month, for a total of $1,424 b. January 1, 2017, an increase of $200 per month for a total of $1,624 7. A reduction of the cafeteria benefit from $1,149 to $1,000 per month for employees who opt-out of medical coverage, effective January 1, 2016. 8. A reduction to the contract overtime calculation by 7 percent. 9. An agreement to reopen negotiations in July 2017 for the purpose of discussing the cafeteria allowance and healthcare benefits due to changes or revisions in law, such as the Affordable Care Act. 10.Creation of a Firefighter Trainee program for new employees, that provides 5 percent lower compensation during the initial 4 – 6 week training period; and an extension of the employee probationary period from 12 to 18 months. 11.A one-time election to modify the amount of Holiday time either allocated to Flex leave or paid as compensation. 12.Other changes include: revisions to the Bereavement Leave policy, limits on the number of consecutive shifts an employee can work, reallocation options for Association Release Time, and elimination of the Spillover pay program. The estimated cost of the proposed agreement for FY2015-16 is $669,752. Detailed costs are included in Attachment D and are itemized by salary, supplemental pays, fringe benefits, pension, and employees offsets, and projected through the first half of FY2018-19. The savings that can be attributed to the operational and staffing changes proposed is estimated to be $1,849,496. Other savings, including the additional employee pick-up of pension and the reduction in the cafeteria allowance for those opting out of medical, provides an estimated $1,100,656 savings over the term of the contract, for a combined total of over $2.9 million. In accordance with NBFA ratification procedures, the majority of members voted to approve the new MOU. The agreement will not become effective, per Government Code Memorandum of Understanding with the Newport Beach Firefighters Association January 26, 2016 Page 5 5-5 §3505.1, until the governing body, i.e., City Council, takes action to adopt it. If the City Council approves adoption of the Memorandum of Understanding with the NBFA, Human Resources and Finance Department staff will work to implement the provisions as soon as practicable. The proposed changes are noted in italics and the comprehensive MOU and cost analysis of the complete contract, if approved, will be published online. As City Manager and Assistant City Manager, we thank the NBFA for the collaborative and respectful way in which they approached these negotiations and appreciate their willingness to come to the table and help address the issues of reform. These are challenging times for city governments and a strong partnership between the City and its bargaining units remains vital in continuing to provide the community excellent services. 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) 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). ATTACHMENTS: A. Resolution No. 2016-11 Adopting the Memorandum of Understanding with NBFA B. Exhibit A to Attachment A – 2015-18 Memorandum of Understanding with NBFA C. Resolution No. 2016-12 Modifying the Paying and Reporting of EPMC D. Estimated Cost of MOU with NBFA E. Budget Amendment 5-6 RESOLUTION NO. 2016 -____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION WHEREAS,the City Council of the City of Newport Beach previously adopted Resolution No. 2001-50, the “Employer-Employee Relations Resolution,” pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500; and WHEREAS, the City of Newport Beach supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; and WHEREAS, the City of Newport Beach previously entered into a Memorandum of Understanding with the Newport Beach Firefighters Association for the period January 1, 2012, through December 31, 2014; WHEREAS, representatives from the City of Newport Beach and representatives from the Newport Beach Firefighters Association have met and conferred in good faith and reached a Tentative Agreement on wages, benefits, and other terms and conditions of employment for the period January 1, 2015 through December 31, 2018; and WHEREAS, the City Council of the City of Newport Beach promotes transparency in the labor negotiations process and the terms and estimated costs of the Tentative Agreement with the Newport Beach Firefighters Association were provided for public review and comment on January 12, 2016; and WHEREAS, the City Council of the City of Newport Beach desires to replace the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters Association by adopting a successor Memorandum of Understanding for the period of January 1, 2015 through December 31, 2018. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1:The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2:Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the Newport Beach Firefighters Association shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit A). Section 3:The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to January 1, 2015, and remaining in full force and effect through December 31, 2018. ATTACHMENT A Attachment A 5-7 Section 4:The City’s Salary Schedule shall be modified so as to be consistent with this Resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution 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) 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. Section 7:This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this ____ day of _________, 2016. ______________________ Diane B. Dixon Mayor ATTEST: __________________________ Leilani I. Brown City Clerk 1 NBFA MOU 2015-2018 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION Term: January 1, 2015 through December 31, 2018 This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Firefighters Association, International Association of Firefighters, Local 3734 ("NBFA"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment of employees in the unit of representation NBFA is recognized to represent (unit members). 2. NBFA 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, 2015 through December 31, 2018 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFA during the meet and confer process leading to the adoption of the 2015-2018 MOU. 4. This MOU, upon approval by NBFA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. – GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001- 50, the City acknowledges that NBFA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFA. Exhibit AATTACHMENT B 5-8 2 NBFA MOU 2015-2018 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, 2015. This MOU shall remain in full force and effect until December 31, 2018, 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, if NBFA submits preliminary requests for changes in wages, fringe benefits and other terms and conditions of employment earlier than 90 days prior to expiration of the MOU, the parties will begin negotiations promptly, with the objective of reaching an agreement by December 31, 2018. 2. The terms and conditions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. C. Release Time 1. Unit members shall be allowed to participate in the following activities and receive full pay ("Release Time"): a. Attendance at off-site meetings, conferences, seminars or workshops related to matters within the scope of representation; b. To prepare for scheduled meetings between the City and NBFA during the meet and confer process. c. i. To travel to, and attend scheduled meetings between the City and NBFA during the meet and confer process. ii. To travel to and attend scheduled grievance and disciplinary hearings. iii. To meet, for up to one hour, with a unit member(s) they are representing prior to a hearing described in subsection C.c.ii above. Exhibit A 5-9 3 NBFA MOU 2015-2018 2. City grants NBFA 400 hours of Release Time per calendar year to engage in the activities described in subsection 1(a and b). Unused hours from any calendar year may be carried over to the next year not to exceed a total City provided release time accrual of three hundred (300) hours. 3. City grants Unit members the right to engage in the activities described in subsection 1(c ) at any time without reduction to the Release Time granted in subsection 2. 4. NBFA shall designate certain members as those members entitled to release time. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time, or, prior to adjusting work hours. Requests for release time shall be granted by the supervisor unless there are specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. a. The NBFA President shall be entitled to a maximum of 200 hours per calendar year for appropriate association related business, excluding time required for the meet and confer process. The NBFA President shall, at his/her discretion, allocate Release Time to NBFA Board members or other designates, to a maximum of 150 hours per year per individual. In the event the 200 hours for the President or 150 hours for other NBFA designates are insufficient, the President may submit a request to the Assistant City Manager or designee, with justification, that additional hours be granted. In no event shall the Association be granted more than a total of 400 hours per year for all designates. 5. In addition to City–provided Release Time and Release Time provided pursuant to subparagraph (3), Unit members may contribute earned paid time off to an NBFA Release Time Bank. Members may contribute earned time only during the period from July 1 through August 15th during any calendar year. However, members shall not have the right to contribute time to the NBFA Release Time bank if NBFA has accumulated more than 600 hours of total Release Time. Any NBFA member who contributes time to the Release Time Bank gives up any right to usage of, or payment for, the contributed time. Contributions may be made only in six-minute increments. Contributions shall be on forms prepared by the City which shall then be submitted to the appropriate department employee. City shall advise NBFA as to the balance of hours in the Release Time Bank upon request. For purposes of this subparagraph only, the term "time off" shall be defined as accrued flex leave. Exhibit A 5-10 4 NBFA MOU 2015-2018 6. There is no entitlement to release time for any matter not set forth above. D. Scope 1. All present written rules and currently established practices and employee rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU, or in the case of the Department SOP’s falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non–exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001- 50. E. Bulletin Boards 1. Space shall be provided on bulletin boards within the Fire Department at their present location for the posting of notices and bulletins relating to NBFA business, meetings, or events. All materials posted on bulletin boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion, age, sexual orientation 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, age, sexual orientation, 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. Exhibit A 5-11 5 NBFA MOU 2015-2018 F. Dues Check-off Unit members shall have the right to authorize the City to deduct regular monthly NBFA dues from their bi–weekly paycheck. The City shall deduct payment of NBFA dues when the employee has authorized such deduction and City shall remit all payments to NBFA in accordance with the terms of each member's authorization. G. Maintenance of Membership Any employee in this Unit who has authorized association deductions on the effective date of this Agreement, or at any time subsequent to the effective date of this Agreement, shall continue to have such dues deductions made by the City during the term of this Agreement, provided that any employee in the Unit may terminate such Association dues by submitting a signed request to cancel payroll deduction to the Human Resources Director. This signed request shall be followed up with a second request at a time between 30 and 45 days of the original letter. The Association shall indemnify the City and hold it harmless against any and all suits, claims, demands and liabilities that may arise out of or by reason of the application or implementation of the provisions of this section. H. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. I. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. J. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of Exhibit A 5-12 6 NBFA MOU 2015-2018 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 Unit members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. K. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Upon request by the Association the parties will engage in non-binding fact finding pursuant to State law. L. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or “unit member" shall mean all persons within classifications represented by NBFA. 2. The term "staff employee" shall mean any unit member who is assigned to work an average 40-hour workweek. 3. The term "line employee" shall mean any unit 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 Adjustments – this MOU Period Base salary increases for all NBFA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the payroll period that includes July 1, 2015, there shall be a base salary increase of 2.75% for all represented classifications. 2. Effective the payroll period that includes January 1, 2016, there shall be a base salary increase of 2.75% for all represented classifications. 3. Effective the payroll period that includes January 1, 2017, there shall be a base salary increase of 2.75% for all represented classifications. 4. Effective the payroll period that includes January 1, 2018, there shall be a base salary increase of 2.75% for all represented classifications Exhibit A 5-13 7 NBFA MOU 2015-2018 B. Salary Differential 1. The adjustments to salary and total compensation described in this Section shall maintain the salary differentials between the classification of Firefighter (benchmark classification) and the other classifications represented by NBFA, as set forth below, so there is an appropriate internal relationship among the primary classifications represented by NBFA. Subject to the foregoing, the salaries specified below or total compensation, as appropriate, shall be subject to the following minimum salary differentials between classifications: Percent of Firefighter Firefighter Series Top Step Firefighter N/A Engineer 112.50% Paramedic 122.25% Line Captain 132.00% Staff Captains shall receive an additional 7.5% of base pay over Line Captains. 2. The Paramedic classification shall be maintained for current unit members as of January 1, 2016. The salary range for Paramedic will remain set at 22.25% above Firefighter (top step to top step). Effective upon adoption of this 2015-18 MOU, the City shall establish Paramedic Premium pay in lieu of the Paramedic classification for employees in the classification of Firefighter hired after January 1, 2016 who are serving as Paramedics. The Paramedic Premium shall be set at 17.25% above the employee’s base salary as a Firefighter and will be reported to PERS as compensation earnable. C. Firefighter- Special Step Increase Firefighters who successfully complete the Department Engineer Certification program within twelve (12) months of passing probation will be granted a salary step increase. . D. Probationary Firefighter Training Step Effective January 1, 2016, the City shall establish an entry level Firefighter Training Step (Step “1T”) that is set 5% below current Firefighter Step 1. Probationary Firefighters will be placed at the Training Step upon initial appointment. Upon completion of the NB Fire Recruit Academy, employees Exhibit A 5-14 8 NBFA MOU 2015-2018 will be eligible to advance to Firefighter Step 1. Probationary employees will be eligible for advancement to Step 2 following 12 months from date of initial appointment and upon documented successful performance. Notwithstanding advancement to Step 2, the probationary period for a new Firefighter will be 18 months. E. Overtime – Hours Worked 1. FLSA Overtime shall consist of authorized hours actually worked in excess of 91 hours in a 12 day work period as previously established by the City and as permitted by the United States Department of Labor regulations pursuant to the FLSA 7(k) exemption. Use of Flex Leave, Vacation Leave, Holiday Leave, and Sick Leave shall not be considered as hours worked for the purposes of determining eligibility for FLSA Overtime. Contract Overtime shall consist of authorized work in excess of a unit member’s normal number of work hours in any scheduled work shift, and shall be paid one-and-one-half times the employee’s regular rate of pay. Use of Flex Leave shall be considered as hours worked for the purposes of determining eligibility for Contract Overtime pay. Leave Without Pay shall not be considered as hours worked for determining Contract Overtime eligibility. Effective January 1, 2017, Contract Overtime shall be calculated based on the employee’s regular rate of pay, less 7%. 2. Temporary vacancies in line positions shall be selected in accordance with Department S.O.P. 3. Qualified employees wishing to work voluntary overtime in a class lower than their current class (downgrade) may volunteer to do so and shall be compensated at one and one-half times the highest hourly rate for the position as published in the City's compensation plan. Said employees shall be selected according to the provisions set forth in the Department's Standard Operating Procedures related to staffing and overtime. This provision applies only to persons wishing to downgrade to the position of Firefighter, Fire Engineer or Paramedic. 4. Personnel assigned to staff assignments may request compensatory time off in lieu of paid overtime with the approval of the Department. Compensatory time may be granted, subject to maximum accrual of eighty (80) hours, and subject to Department consideration of the impact of said CTO use on overtime liability and other efficiency requirements of the Department. Exhibit A 5-15 9 NBFA MOU 2015-2018 F. Required Uniform City shall pay the entire cost of providing NBFA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, work out shirts, work out trunks, sweatshirt, , and baseball cap. City shall not be responsible for providing employee with socks, underwear, or workout shoes, or other clothing. The City will provide each fire suppression member with a set of front-line turnout gear and an adequate number of reserve turnouts at each station to allow for proper turnout cleaning/decontamination. Reserve turnouts may be personally issued to each member at the Fire Chief’s discretion. 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. As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, the City shall report as pensionable compensation the value of provided uniforms at $1,519 annually in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment, including safety boots and turnout gear. This provision shall not apply to employees who are “new members” as defined in Government Code Section 7522.04 (f). G. Scholastic/Certificate Achievement Pay Unit members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic/Certificate Achievement Pay"). Unit members may apply for increases pursuant to this Section when eligible and scholastic and/or certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the unit member to apply for Scholastic and/or Certificate Achievement Pay. Approval of the unit member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic and/or certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. For employees hired before May 22, 2012, scholastic and/or Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Unit members hired on and after May 22, 2012 shall be ineligible for any scholastic pay based upon having obtained units only. Qualifying units and/or degrees must be awarded by Exhibit A 5-16 10 NBFA MOU 2015-2018 accredited community colleges, state colleges or universities. A “degree” shall be awarded by an institution accredited by the State of California, the United States Department of Education, the Council for Higher Education, or the Distance Education Training Council. Unit members shall receive scholastic and/or certificate achievement pay in accordance with the following: 1. Scholastic Pay Years of College % of Actual Step in Service: Semester/Unit: Job Class Range: 2 or more 30 1.5%/month 3 or more 60 2.5%/month 3 90 3.5%/month 4 or more 90 3.5%/month 4 120 4.5%/month 2 or more A.A./A.S. 3.5%/month 2 or more B.A./B.S. 3.5%/month 4 B.A./B.S. 5.5%/month 2. Certificate Pay Successful completion of coursework for Fire Officer, Company Officer, Fire Prevention Officer II, or Fire Inspector II shall entitle the member to 3%/month in Certificate Pay. H. Special Assignment Pay The following additional payments shall be made to certain Unit members based on assignment: 1. Individuals properly trained and assigned by the Department to perform special assignments shall be compensated as follows: Maximum Compensation Assignment Number* (% of base pay) Shift Fire Investigator 6 5% Radio/MDC 1 5% SCBA 3 2% Map/Preplan 1 2% Special assignment compensation shall cease when individuals are no longer performing the assignment. *Subject to modification by the department. Exhibit A 5-17 11 NBFA MOU 2015-2018 2. Prior to establishing an Urban Search and Rescue Team, the City will give notice to and, upon request, meet and confer with the Association on those aspects of the program which fall within the scope of representation. 3. Temporary Special Assignment Pay Temporary Special Assignment pay will be at the rate of the special assignment. The types and duration of these temporary assignments will remain a management prerogative. Committee participation such as Safety Committee, and work on various projects such as Public Safety Day and the CERT Program are excluded from consideration under this Agreement. I. Temporary Upgrading of Employees 1. Move up Assignment A move up assignment shall be defined as the temporary assignment of an employee to work in a job classification which is higher than his or her current classification. A move up employee need not meet the minimum requirements for the position to which they are moved up to. Employees who do meet the minimum requirements for the position shall be deemed “Acting Appointments” after their 6th consecutive shift. If the employee is moved-up for five (5) hours or more, the move-up compensation shall be computed as follows: Firefighter to Engineer Regular rate +5% Firefighter to Paramedic Regular rate +22.25% Firefighter to Captain Regular rate +5% Engineer to Paramedic Regular rate +9.75% Engineer to Captain Regular rate +5% Paramedic to Captain Regular rate +5% Captain to Battalion Chief Regular rate +9.5% All leave time shall be paid at the employee’s regular rate of pay. Time accumulated working in a move up position shall-not be applied towards the probationary period or count as “time in rank” for the purpose of seniority. A move up employee who completes the minimum requirements for the position while working in the move-up classification shall be Exhibit A 5-18 12 NBFA MOU 2015-2018 deemed an “Acting Appointment” effective the date the minimum qualification is met. The following positions shall be considered for move-up assignments: Fire Battalion Chief Fire Captain Fire Paramedic Fire Engineer Assignment to the move up position shall be made at the sole discretion of the Fire Chief and are limited to a maximum time period of 360 days. 2. Acting Appointments The formal and expressed assignment of an employee to perform the significant duties and responsibilities of a higher classification for more than six (6) consecutive shifts shall be deemed an acting appointment. All acting appointees must satisfy the minimum requirements for the position to which they are appointed. Acting employees shall be compensated the beginning of the pay period following the sixth consecutive shift in the salary range of his/her acting classification at a rate that is at least five (5%) percent higher than their current rate. All holiday, vacation, sick leave and paid leave shall be paid at the employee’s new rate of pay. In the event the acting employee is subsequently appointed to the higher classification, the time accumulated while acting in the higher classification shall be applied towards the probationary period and count as “time in rank” for the purpose of seniority. If an acting employee is returned to his/her former classification for more than six (6) months, he/she will not be credited with the time accumulated in the acting position for the purposes of probation or as “time in rank” for the purpose of seniority. Acting appointments shall be made at the sole discretion of the Fire Chief and are limited to a maximum time period of 180 days. 3. Tiller Assignment Employees temporarily upgraded to Tiller shall receive a five (5%) pay differential over their regular rate of pay for all time worked in this job classification if they are assigned to work in this job classification for a period of four (4) working hours or longer. Exhibit A 5-19 13 NBFA MOU 2015-2018 J. Paramedic Training Following adoption of this 2015-18 MOU, the City will establish a competitive process for which up to a maximum of four (4) current Firefighters as of January 1, 2016, will be selected, based on the operational needs of the Fire Department, to attend Paramedic school during the term of the MOU. Selected employees will be compensated at their normal rate of pay while attending school and during any clinical training. Following completion of school and clinical training, during the on-the-job training period employees shall receive 5% assignment pay. Following all training, employees will return to their normal rate of pay until such time as they are selected for Paramedic assignment. This section shall terminate upon the expiration of this MOU. Assignment to Paramedic School shall not be construed as assignment to position for the purposes of probation. K. Y-Rating Employees who are reclassified to a position with a lower maximum salary shall be Y-rated. Y-rating shall refer to a pay rate outside of the assigned salary range of the employee. If the salary of the employee is greater than the maximum of the new range, the salary of the employee shall be designated as a Y-rate and shall not change during continuous regular service until the maximum of the new range exceeds the salary of the employee. If the salary of the employee is the same or less than the maximum of the new class, the salary and merit increase eligibility date of the employee shall not change. L. Shift Holdover Unit members who are held over at the conclusion of any shift shall be compensated at the rate of one hour for each hour, or portion thereof, the employee worked beyond the end of the shift. Any member held over after shift shall be compensated at time and a half for all time worked during the work period in excess of the maximum permitted under the provisions of Section 29 USC 507(k). M. Emergency Recall If an employee who is not on stand-by or shift hold-over and is required to return to work during his/her off-duty hours for actual firefighting, or similar emergency designated by the Fire Chief, the employee shall receive a Exhibit A 5-20 14 NBFA MOU 2015-2018 minimum of four (4) hours compensation for the first hour worked and compensation for time worked thereafter. N. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Fire Chief. O. Court Standby Pay Unit members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off– duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four (4) hours of pay for each eight hours of court standby time. Unit 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. Unit members shall accrue flex leave as follows. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below. Leave Accrual Longevity Pay Years of Srvc Hrs/Pay Period Increase Line Employees: 1 but less than 5 9.77 0.00% 5 but less than 9 10.69 0.00% 9 but less than 12 11.62 0.00% 12 but less than 16 12.54 0.00% 16 but less than 20 12.54 1.5% 20 but less than 25 12.54 2.5% 25 and over 12.54 3.5% Exhibit A 5-21 15 NBFA MOU 2015-2018 Staff and Non-Safety Employees: 1 but less than 5 6.97 0.00% 5 but less than 9 7.63 0.00% 9 but less than 12 8.33 0.00% 12 but less than 16 8.95 0.00% 16 but less than 20 8.95 1.5% 20 but less than 25 8.95 2.5% 25 and over 8.95 3.5% Longevity increases specified above shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code §20636(c)(1) for purposes of computing retirement benefits and contributions. 2. The Flex leave program shall be administered as follows: a. Unit members shall not accrue Flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months, provided however, if a member on the Flex leave program becomes sick during the first three (3) months of employment, the City will advance up to six (6) pay periods of accrued leave time 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 three 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. 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 Section the Employee Policy Manual and who are absent due to illness shall have their sick leave bank reduced by the duration of the absence unless the member notifies appropriate department personnel that the absence should be charged to the member's flex leave account. c. Members shall be entitled to accrue Flex leave up to a maximum of fifty-two (52) 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. Exhibit A 5-22 16 NBFA MOU 2015-2018 Effective July 1, 2012, earned leave in excess of the maximum permitted was deposited in the members “spillover bank”. Effective January 1, 2016 spillover shall be eliminated and unit members shall not be permitted to accrue Flex leave in excess of the maximum permitted, unless the employee is unable to use leave benefits because of an industrial disability, hardship or extraordinary circumstances. d. 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. e. Flex leave may be taken in four (4) hour increments. f. Members shall be paid for all accrued Flex leave at their then current hourly rate of pay (hourly rate before incentives, other pays, etc.) upon termination of the employment relationship except as provided by Section 3(J). g. Spillover Bank/Spillover Hours Effective July 1, 2012, all hours then accrued above the new accrual cap (52x the bi-weekly accrual rate) were deposited in a newly-created Spillover Bank and became Spillover Hours. Flex leave hours that had been used by the employee between July 1, 2012 and December 31, 2012 were drawn from the Spillover Bank, to the extent the unit member had adequate Spillover Hours. Effective January 1, 2013, all remaining Spillover Hours and all hours turned in for cash conversion were deposited into the member’s MERP account. From January 2, 2013 forward, hours held in the Spillover Bank were not subject to use by the employee and were converted, at the member’s regular hourly rate, and deposited into the member’s MERP account on an annual basis. B. Telestaff 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/Holiday time (leave) normally accrued by each member during a fiscal year (total annual leave) multiplying total annual leave, by that Exhibit A 5-23 17 NBFA MOU 2015-2018 member's overtime rate of pay (value of leave) and then adding the value of leave for each NBFA member. Each member's overtime rate of pay shall be calculated on the basis of the member's highest anticipated rate of pay during the upcoming fiscal year. The total "value of leave" for all members shall be identified in the budget as the "LEAVE COVERAGE FUND." Notwithstanding, any other provision of this MOU, the Fire Chief shall have the sole discretion to take whatever action may be necessary to reduce overtime payments, including the temporary reduction of staffing levels or personnel, in the event payments for overtime out of the LEAVE COVERAGE FUND exceed 25% of the fund during the first three months of the fiscal year, 50% of the fund during the first six months of the fiscal year, or 75% of the fund during the first nine months of the fiscal year. C. Vacation/Sick Leave Due to the conversion of employees to the Flex leave program, former Vacation and Sick leave accrual provisions are hereby removed and shall be referenced exclusively in prior MOUs. D. Holiday Time 1. Line Employees The provisions of this subsection shall apply only to Unit members who are line employees during all or a portion of any calendar year and, as to those members who are line employees for only a portion of the year, the provisions of this subsection shall be applicable on a pro–rata basis. Unit members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. Holiday time shall be added to the member's Flex leave Account on a bi–weekly basis. Effective October 1, 1996, all Line employees were provided a one- time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 108 of the 144 annual benefits to cash must so convert 108 hours of earned holiday benefits each year thereafter. The election to change holiday time to pay shall be in twelve (12) hour increments. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. Exhibit A 5-24 18 NBFA MOU 2015-2018 Note: Newly hired employees shall be given a one-time option, within 60 days of employment, to elect to receive up to one-half of accrued holiday time as time off in lieu of cash payment. 2. Staff Employees Staff employees shall receive the following fully paid holidays: New Years’ Day, Martin Luther King Birthday, Presidents Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day and the day after Thanksgiving, one–half day on Christmas Eve, Christmas, and one–half day on New Year’s Eve. In addition, Staff employees will be entitled to one floating holiday at the member’s election. Staff employees shall have the one-time option of accruing holiday time as pay. Staff employees may be required to take specified City holidays off at the sole discretion of the Fire Chief. Time will be charged against the employee’s Flex leave bank. Holiday time provided as pay for employees who are not normally required to work on an approved holiday because they do not work in positions that require scheduled staffing without regard to holidays, shall not be reported as special compensation under California Code of Regulations 571(a)(5). 3. Holiday Time Election Effective following adoption of the 2015-18 MOU, or as soon thereafter is practicable, all then current unit members will be provided a one-time opportunity to change all or a portion of their future annual holiday benefits to pay or time off. The City will provide a 28-day window (2 pay periods) for employees to make the new election. Once selected, the election shall be uniform from year to year. All other elements of the election shall be as provided in D(1) and (2) above. 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 and non-safety employees shall be entitled to forty (40) hours of Bereavement Leave per calendar year per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave (terminal illness followed by death is considered one incident). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Exhibit A 5-25 19 NBFA MOU 2015-2018 Manual. For the purpose of this section immediate family shall mean an employee’s father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparents, and the employee’s spouse/domestic partner’s mother, father, brother, sister, child and 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. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. F. Catastrophic Leave Unit members may participate in the City's Catastrophic Leave Program. G. Jury Duty Unit members who are assigned to line positions and are called to jury duty shall be excused for each twenty-four (24) hour shift during which the member is required to attend court and sit on a jury or await assignment. H. Flex Leave Premium Pay Account Unit members shall have the right to receive pay, at the rate of 100% of their then current base salary, for any Flex Leave banked, up to a maximum of fifty-two (52) 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 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. I. Worker's Compensation Leave Any Safety unit member 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. Exhibit A 5-26 20 NBFA MOU 2015-2018 J. Scheduling of Medical Treatment for Industrial Injuries Time spent by an employee receiving medical attention during the employee's normal working hours is considered hours worked and compensable, when the City or its representative schedules the appointment. When an employee is temporarily disabled due to an industrial injury, and is unable to perform even limited duty in the workplace, all appointments, whether arranged by the City or the employees, shall be considered as occurring during normal working hours. The employee shall not be entitled to any additional compensation, regardless of the employee's regular work schedule or the type of compensation currently received, except as otherwise required by law. When an employee has been released to either full or limited duty and has returned to the workplace, time spent receiving ongoing medical treatment, such as physical therapy or follow-up visits that are not scheduled by the City, is not considered hours worked and therefore, is not compensable. To avoid disruption in the workplace, an employee shall schedule such appointments to occur during off duty hours whenever possible. In the event such scheduling is not available, employee may be allowed to attend an appointment during their regularly scheduled duty shift with prior supervisory approval. Regular recurring appointments (i.e., weekly physical therapy) must be scheduled off duty. K. 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, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided, however, upon reassignment a line employee shall be entitled to either receive pay for accrued holiday time or add accrued holiday time to the member's Flex Leave account. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. – Fringe Benefits A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data Exhibit A 5-27 21 NBFA MOU 2015-2018 regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee group with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CalPERS participating employer’s contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City’s existing medical, dental and vision insurance/programs. The City and the Newport Firefighter Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. The parties recognize that from January 1, 2015 through December 31, 2015, the City has contributed $1,274 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the pay issue that includes: January 1, 2016, the City’s contribution towards the Cafeteria Plan will increase by $150.00 to $1,424 per month (plus the minimum CalPERS participating employer’s contribution). January 1, 2017, the City’s contribution towards the Cafeteria Plan will increase by $200.00, to $1,624.00 (plus the minimum CalPERS participating employee’s contribution). On or after July 1, 2017, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, or other elements of healthcare services as a result of the Affordable Healthcare Act (ACA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. Unit members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt-out agreement releasing the City from any Exhibit A 5-28 22 NBFA MOU 2015-2018 responsibility or liability to provide medical insurance coverage on an annual basis. Current employees electing to opt-out of City provided medical coverage will be eligible to receive a maximum Cafeteria Allowance of $1,149 per month. Effective the first pay issue in January 2016, the opt-out Cafeteria Allowance will be $1,000 per month. 3. 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. 4. 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. 5. Changes in Insurance Carriers and Coverages There shall be no change in Insurance carriers or coverages during the term of this agreement unless the City has given prior notice to the Association and, upon request, met and conferred. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a “reimbursable account program” in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee’s account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Exhibit A 5-29 23 NBFA MOU 2015-2018 Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. 3. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee’s annual salary up to a maximum of $50,000. At age 70 the City-paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. PERS Retirement Benefit 1. Retirement Formula The City contracts with the California Public Employees Retirement System (“CalPERS” or “PERS”) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I (“Legacy”): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50 and the retirement formula for non-safety members shall be 2.5%@ 55, calculated on the basis of the highest consecutive 12 month period selected by the employee. Exhibit A 5-30 24 NBFA MOU 2015-2018 Tier II (“Classic”): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula for safety members shall be 2%@50 and the retirement formula for non-safety members shall be 2%@60, calculated on the basis of the highest consecutive 36 month period selected by the employee. Tier III (“PEPRA”): For employees first hired by the City on or after January 1, 2013, who are new members, the safety retirement formula shall be 2.7%@57 and the non-safety retirement formula shall be 2.0%@62, calculated on the basis of the highest consecutive 36 month period selected by the employee. 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. a. Safety Tiers I and II: Effective the pay period that includes July 1, 2015, Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate for a total contribution of 9.75% of pensionable compensation. Effective the pay period that includes January 1, 2016, Tier I and II members will contribute the full statutory member contribution equal to 9% of pensionable compensation, plus an additional 1.5% of pensionable compensation of the Employer rate for a total contribution of 10.5% of pensionable compensation Effective the pay period that includes January 1, 2017, Tier I and II members will contribute the full statutory member contribution Exhibit A 5-31 25 NBFA MOU 2015-2018 equal to 9% of pensionable compensation, plus an additional 2.25% of pensionable compensation of the Employer rate for a total contribution of 11.25% of pensionable compensation Effective the pay period that includes January 1, 2018, Tier I and II members will contribute the full statutory member contribution equal to 9% of pensionable compensation, plus an additional 3.0% of pensionable compensation of the Employer rate for a total contribution of 12.0% of pensionable compensation Tier III: The normal member contribution rate for Tier III members is 50% of the total normal cost and is calculated annually for possible adjustments as provided in the PERS valuations. For FY15-16 and FY16-17, the member contribution is 11.25% and 10.5% of pensionable compensation respectively. Effective the pay period that includes January 1, 2017, Tier III members will contribute the full statutory member contribution equal to 10.5% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate for a total contribution of 11.25% of pensionable compensation. Effective the pay period that includes January 1, 2018, Tier III unit members will contribute the full statutory member contribution, plus an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 12.0% of pensionable compensation b. Non Safety The parties recognize that from January 1, 2015 through June 30, 2015, NBFA non-safety members have been paying, in addition to the member contribution, a portion of the Employer rate under a Government Code Section 20516(a) cost sharing agreement for employees in Tier I, and a Government Code Section 20516(f) cost sharing agreement for employees in all Tiers. The normal member rate and the cost sharing rate vary by Tier. However, the combined contribution rate for each Tier equals 10.9% of pensionable compensation, as provided in a prior agreement. Tier I: Effective the pay period including July 1, 2015, employees shall contribute an additional .75% of pensionable compensation for a Exhibit A 5-32 26 NBFA MOU 2015-2018 total employee contribution of 11.65% of pensionable compensation. Effective the pay period including January 1, 2016, employees shall contribute an additional .70% of pensionable compensation, for a total employee contribution of 12.35% of pensionable compensation, broken down as follows: 8.0% of pensionable compensation of the required member contribution and 2.42% and 1.93% of pensionable compensation of cost sharing under Government Code Sections 20516(a) and 20516(f) respectively. Effective the pay period including January 1, 2017, employees shall contribute an additional .65% of pensionable compensation for a total employee contribution of 13.0% of pensionable compensation, broken down as follows: 8.0% of pensionable compensation of the required member contribution and 2.42% and 2.58% of pensionable compensation as cost sharing under Government Code Sections 20516(a) and 20516(f) respectively. Tiers II and III: Effective the pay period including July 1, 2015, employees in Tiers II and III shall contribute an additional .75% of pensionable compensation, above the 10.9% in prior agreement, for a total employee contribution of 11.65% of pensionable compensation. Effective the pay period including January 1, 2016, employees in Tiers II and III shall contribute an additional .70% of pensionable compensation, for a total employee contribution of 12.35% of pensionable compensation. Effective the pay period including January 1, 2017, employees in Tiers II and III shall contribute an additional .65% of pensionable compensation for a total employee contribution of 13.0% of pensionable compensation. c. The City’s contract with PERS shall also provide for: • The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. • The Level 4 1959 Survivors Benefits. • The PERS pre-retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. Exhibit A 5-33 27 NBFA MOU 2015-2018 4. Payment by any individual member’s normal employee PERS contributions or amounts contributed pursuant to 20516 (a) or (f) shall not be reported to PERS as special compensation. E. Defined Contribution Plan In 2013 the City established a Defined Contribution Plan for safety unit members enrolled in the 2% at 50 or 2.7% @ 57 retirement formulae (Tiers II and III)., Such employees are eligible to participate in a Defined Contribution plan (Plan), administered by the City or its designee in accordance with said regulatory agency regulations and laws. The Plan shall continue to be funded by allowing each affected employee to contribute any amount (unless statutorily capped or capped by the Plan) of base salary each payroll period. The City shall match any such employee contribution up to 1.5% of base salary per year. The employee-only contributions shall be deemed fully vested at the time of its deposit. The employer-only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. (“Age” at time of retirement being effective.) In the event that a participant in the Plan has a medical retirement earlier than the vesting above, he or she shall be deemed 100% vested upon the date of the medical retirement. F. 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. Exhibit A 5-34 28 NBFA MOU 2015-2018 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. 2. Program Structure This is an Integral Part Trust (IPT) Retirement Health Savings Plan (RHS, formerly the Medical Expense Reimbursement Program Plan, ie: MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS 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 1st based on status as of December 31st 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 RHS, on a pre- Exhibit A 5-35 29 NBFA MOU 2015-2018 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 zero percent (0%) Flex. 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 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. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the RHS 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 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 RHS 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 RHS Exhibit A 5-36 30 NBFA MOU 2015-2018 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 RHS account at the time of separation. Distributions from RHS 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 RHS 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 RHS 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 RHS 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 RHS 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. Exhibit A 5-37 31 NBFA MOU 2015-2018 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: 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 RHS 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 RHS 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 RHS 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. Exhibit A 5-38 32 NBFA MOU 2015-2018 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). G. Tuition Reimbursement and Training Maximum tuition reimbursement (for both college courses and non-college authorized courses) for unit members shall be $1,500 per fiscal year. 1. College Courses Unit 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 "C" or better for undergraduate courses and a grade "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. College courses taken in pursuit of a degree that would render the employee eligible to receive scholastic pay compensation shall not be eligible for tuition reimbursement. Career development courses and vocational courses offered through a college shall be eligible for tuition reimbursement provided they meet the definition of pre-authorized or prior approval is received from the Fire Chief or designee. Examples include, but are not limited to: California State Fire Marshal Courses and CICCS Courses. 2. Non-College Courses Unit 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. Exhibit A 5-39 33 NBFA MOU 2015-2018 Job-related courses, training and seminars will be considered pre- authorized in the following areas: Management and supervision, oral and written communications, conflict resolution, legal issues, and media relations, risk management, fire ground operations, rescue systems, 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 Battalion Chief before submittal to Human Resources. 3. Training – Worker’s Comp Employees of the Newport Beach Fire Department will be considered within the definition of course of employment and arising out of employment for purposes of workers compensation coverage when they have been authorized by the Fire Chief to attend pre-approved training that furthers the department’s mission in providing fire and medical public safety services to the community. H. Fitness Program All unit members shall participate in the Department Fitness Program as outlined in Department SOP. I. Physical Conditioning Equipment 1. City has acquired fitness equipment for use by members in maintaining physical fitness. City shall budget $25,000 per year for the acquisition, maintenance, repair, improvement, or replacement of fitness equipment. Up to $10,000 may be carried over to a subsequent fiscal year(s). An additional $10,000 shall be budgeted to equip any new stations built during the term of this agreement. 2. City shall provide workout apparel for each NBFA member assigned to fire suppression. Workout apparel shall consist of three workout shirts and two trunks. All unit members on duty between the hours of 4:00 p.m. one day and 7:30 a.m. the next, shall wear either the approved workout apparel, or the approved NBFD uniform. Exhibit A 5-40 34 NBFA MOU 2015-2018 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. Layoff or Layoffs shall mean the non–disciplinary termination of employment. b. “Seniority” shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted permanent status, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status 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 the Classification of Firefighter, seniority shall mean the time an employee has worked within the Series from Firefighter to Captain. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part–time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more Exhibit A 5-41 35 NBFA MOU 2015-2018 supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights“, "Bumping" or "Bump" shall mean the right of an employee in a higher Classification who is subject to layoff to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become recertified as a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to Bump into only those positions the employee has previously held with the Department. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority. c. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Firefighter shall be based on seniority within the Series. An employee who has Bumping Rights shall 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. Exhibit A 5-42 36 NBFA MOU 2015-2018 3. Notice Employees subject to layoff shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days’ pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Employee Policy Manual. 4. Re–Employment Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The laid off former employee shall remain on the reemployment list for not to exceed two (2) years from the date of layoff. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re–employment list or the right to remove his or her name from the re–employment list by sending written confirmation to the Human Resources Director. 5. Severance 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. B. Discipline Plan Any discipline shall be in accordance with Department SOP and the Employee Policy Manual. C. Fire Suppression Equipment Staffing Levels The City shall not reduce current staffing levels for fire suppression equipment during the term of this MOU. The City believes that appropriate staffing levels call for three (3) fire suppression personnel for each engine company and three (3) fire suppression personnel on one truck company and four (4) fire suppression personnel on the second truck company. The Fire Chief or designee shall have the discretion to add a fourth fire suppression Exhibit A 5-43 37 NBFA MOU 2015-2018 personnel to the truck company staffed with three fire suppression personnel on a regular or overtime i.e. “backfill” basis, based on operational needs, for a minimum 12 hour period. However, nothing contained herein shall be construed as altering the existing 24 hour shift for fire suppression employees. D. EMT Certification All members are required to attend regularly scheduled departmental EMT certification classes. Any member, except members who are paramedic certified, who misses, or anticipates missing, a regularly scheduled EMT certification class shall contact the Fire Chief or his/her designee in an attempt to schedule a makeup session, provided, however, members may view videotaped classes to make up for absences from a regularly scheduled class in accordance with County and State requirements. If a makeup session is not available within the program schedule established by the Department, the member shall, prior to loss of certification, attend a Departmental session or class offered by a public or private institution on the member's own time and without compensation by the City. E. No Smoking All employees hired after January 1, 1999 shall not smoke or use any tobacco products at any time while on, or off, duty. Employees shall be required to sign an agreement consistent with this section. Violation of the agreement may subject the employee to disciplinary action. Employees shall have input into the agreement to be developed. Smoking an occasional celebratory cigar (birth of a child, etc.) while off-duty shall not be considered a violation of this section. F. Life Safety Services Classifications Existing flexible staffing provisions in Life Safety Services Classifications shall remain in effect for the term of this agreement. G. Exposure Log The City maintains an exposure log system. H. Grievance Procedure Except as described herein, unit employees are covered by the grievance procedure contained in the Employee Policy Manual. However, the parties agree that Step 1 of the manual shall be deemed to define either a Captain or Battalion Chief as the “immediate supervisor,” Step 2 of the grievance procedure shall be presided over the Fire Chief, and Step 3 of the grievance Exhibit A 5-44 38 NBFA MOU 2015-2018 procedure shall be the City Manager. The City Manager shall render the final and binding grievance determination. I. 48/96 Schedule The Fire Department currently operates with a 48/96 schedule. A City proposal to modify this schedule shall be subject to meet and confer. J. Consecutive Shifts Effective concurrent with this 2015-18 MOU, unit members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24 hour shift. A fifth consecutive shift may be permitted with Battalion Chief approval based upon operational needs. K. Paramedic Program Effective September 2015, the Newport Beach Fire Department, along with Huntington Beach and Fountain Valley Fire Departments, are participating in a State Community Paramedicine Pilot Study. This portion of the study utilizes specially trained community paramedics to triage and transport patients to alternate destinations. A patient of low acuity status that meets the pre-determined criteria would be transported to an alternative destination such as an urgent care clinic. The goals and objectives of this pilot study test the feasibility to relieve overcrowding of emergency departments and improving patient care and efficiency by transporting patients to appropriate destinations. At the conclusion of the study, should the results indicate a change in staffing, both parties agree to meet and confer in good faith on any changes that may affect unit members, provided that no such changes prior to the expiration of the MOU can occur without mutual agreement. In addition, effective January 1, 2018, the parties agree to reopen the MOU to meet and confer on City proposals regarding alternative staffing models for Paramedics and related matters, provided that no such changes prior to the expiration of the MOU can occur without mutual agreement. Signatures are on the next page. Exhibit A 5-45 Exhibit A 5-46 Effective July 1, 2015 (2.75% adjustment)Min Max Min Max Fire Captain 112 Hrs $27.48 $38.66 $6,668 $9,381 Fire Captain + 7.5% (80 hrs)$41.34 $58.17 $7,166 $10,083 Fire Engineer 112 Hrs $23.41 $32.93 $5,681 $7,991 Fire Facilities Coordinator $27.29 $38.38 $4,730 $6,653 Fire Paramedic 112 Hrs $25.50 $35.85 $6,188 $8,700 Fire Paramedic 80 Hrs $35.69 $50.17 $6,186 $8,696 Firefighter 112 Hrs $20.83 $29.28 $5,055 $7,105 Firefighter 80 Hrs $29.16 $40.99 $5,054 $7,105 Life Safety Specialist I $31.22 $43.88 $5,411 $7,606 Life Safety Specialist II $34.35 $48.34 $5,954 $8,379 Life Safety Specialist III $37.77 $53.15 $6,547 $9,213 Effective January 1, 2016 (2.75% adjustment)Min Max Min Max Fire Captain 112 Hrs $28.24 $39.72 $6,852 $9,639 Fire Captain + 7.5% (80 hrs)$42.48 $59.77 $7,363 $10,360 Fire Engineer 112 Hrs $24.05 $33.84 $5,837 $8,211 Fire Facilities Coordinator $28.04 $39.44 $4,860 $6,835 Fire Paramedic 112 Hrs $26.20 $36.84 $6,358 $8,939 Fire Paramedic 80 Hrs $36.67 $51.55 $6,356 $8,935 Firefighter 112 Hrs $21.40 $30.09 $5,194 $7,301 Firefighter 80 Hrs $29.96 $42.12 $5,193 $7,300 Life Safety Specialist I $32.08 $45.09 $5,560 $7,815 Life Safety Specialist II $35.29 $49.67 $6,118 $8,609 Life Safety Specialist III $38.81 $54.61 $6,727 $9,466 2015 - 2018 Hourly Pay Rate Monthly Pay Rate Exhibit A Newport Beach Firefighter's Association Represented Classifications and Pay Rates Hourly Pay Rate Monthly Pay Rate 40 Exhibit A 5-47 2015 - 2018 Newport Beach Firefighter's Association Represented Classifications and Pay Rates Effective January 1, 2017 (2.75% adjustment)Min Max Min Max Fire Captain 112 Hrs $29.01 $40.82 $7,040 $9,905 Fire Captain + 7.5% (80 hrs) $43.64 $61.41 $7,565 $10,645 Fire Engineer 112 Hrs $24.72 $34.77 $5,998 $8,437 Fire Facilities Coordinator $28.81 $40.52 $4,994 $7,023 Fire Paramedic 112 Hrs $26.92 $37.85 $6,533 $9,185 Fire Paramedic 80 Hrs $37.68 $52.97 $6,531 $9,181 Firefighter 112 Hrs $21.99 $30.91 $5,337 $7,501 Firefighter 80 Hrs $30.79 $43.28 $5,336 $7,501 Life Safety Specialist I $32.96 $46.33 $5,713 $8,030 Life Safety Specialist II $36.27 $51.04 $6,286 $8,846 Life Safety Specialist III $39.88 $56.11 $6,912 $9,726 Effective January 1, 2018 (2.75% adjustment)Min Max Min Max Fire Captain 112 Hrs $29.81 $41.94 $7,234 $10,177 Fire Captain + 7.5% (80 hrs)$44.85 $63.10 $7,773 $10,938 Fire Engineer 112 Hrs $25.39 $35.72 $6,163 $8,669 Fire Facilities Coordinator $29.60 $41.63 $5,131 $7,217 Fire Paramedic 112 Hrs $27.66 $38.89 $6,713 $9,437 Fire Paramedic 80 Hrs $38.72 $54.42 $6,711 $9,433 Firefighter 112 Hrs $22.60 $31.76 $5,483 $7,708 Firefighter 80 Hrs $31.63 $44.47 $5,483 $7,707 Life Safety Specialist I $33.87 $47.60 $5,870 $8,251 Life Safety Specialist II $37.26 $52.44 $6,459 $9,089 Life Safety Specialist III $40.97 $57.66 $7,102 $9,994 41 Hourly Pay Rate Monthly Pay Rate Hourly Pay Rate Monthly Pay Rate Exhibit A 5-48 5-49 RESOLUTION NO. 2016- ___________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT TO MODIFY THE PAYING AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) FOR CERTAIN MISCELLANEOUS EMPLOYEES REPRESENTED BY THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION WHEREAS, the City Council of the City of Newport Beach previously adopted Resolution No. 2012-36 to pay and report 2.42% of the value of the Employer Paid Member Contribution (EPMC) to CalPERS for Miscellaneous employees represented by the Newport Beach Firefighters Association (NBFA) who are in the 2.5%@55 formula, otherwise known as “Tier I”; 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 modify paying and reporting 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 Miscellaneous employees represented by the Newport Beach Firefighters Association (NBFA)in the Tier I benefit formula (2.5%@55). Section 2. Effective January 1, 2016 this benefit shall be modified to consist of paying zero percent (0%)of the normal contributions as EPMC for NBFA non-safety Miscellaneous employees in the 2.5%@55 benefit formula, and reporting the same percent (value) as compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. ATTACHMENT C Attachment C 5-50 ADOPTED this ____ day of _________, 2016. ______________________ Diane B. Dixon Mayor ATTEST: __________________________ Leilani I. Brown City Clerk AT T A C H M E N d  Ba s e C o s t Pe n s i o n 2 To t a l B a s e C o s t Pe n s i o n 2 To t a l B a s e C o s t Pe n s i o n 2 Total B a s e C o s t e n Pension 2 Total B a s e C o s t Pension 2 Total Sa l a r y 1 1 , 4 3 8 , 0 3 3 6 , 6 7 7 , 1 5 5 1 8 , 1 1 5 , 1 8 8 4 7 6 , 1 4 4 2 7 7 , 9 5 8 7 5 4 , 1 0 2 8 0 3 , 7 8 4 4 6 9 , 5 4 6 1 , 2 7 3 , 3 3 0 1 , 1 4 0 , 4 3 4 673,789 1,814,223 679,876 393,309 1,073,185 4,914,840 18.69% ( I n c r e a s e s o f 2 . 7 5 % o n 7 / 1 5 , 1 / 1 6 , 1 / 1 7 , 1 / 1 8 ) - - Su p p l e m e n t a l B e n e f i t s - - Sc h o l a s t i c 1. 5 % - 5 . 5 % 45 0 , 3 6 9 2 6 5 , 9 3 9 71 6 , 3 0 8 18 , 7 4 8 1 1 , 0 7 1 29 , 8 1 9 31 , 6 4 8 1 8 , 6 9 6 50,344 44,905 26,832 71,737 26,417 15,572 41,989 193,889 Ce r t i f i c a t e P a y 3. 0 % 23 8 , 4 5 4 1 4 0 , 1 8 6 37 8 , 6 4 0 9, 9 2 7 5 , 8 3 6 15 , 7 6 3 16 , 7 5 7 9, 8 5 7 26,614 23,775 14,144 37,919 14,059 8,227 22,286 102,582 Ho l i d a y P a y 8 h r s / m o 26 3 , 6 5 8 1 5 3 , 1 7 2 41 6 , 8 3 0 10 , 9 7 5 6, 3 7 6 17 , 3 5 1 18 , 5 2 8 1 0 , 7 7 3 29,301 26,288 15,458 41,746 15,758 9,045 24,803 113,200 Lo n g e v i t y P a y 3 1. 5 % - 3 . 5 % 40 , 9 9 7 2 2 , 4 9 8 63 , 4 9 5 1, 7 0 6 93 6 2, 6 4 2 2, 8 8 1 1 , 5 8 5 4,466 4,087 2,272 6,359 2,604 1,369 3,973 17,440 Bi l i n g u a l $1 5 0 / m o 18 , 0 0 0 1 8 , 0 0 0 - - - - - - - - - - - - - As s i g n m e n t P a y 2% - 5 % 46 , 1 4 4 2 7 , 7 7 9 73 , 9 2 3 1, 9 2 1 1 , 1 5 6 3, 0 7 7 3, 2 4 3 1 , 9 5 2 5,195 4,601 2,802 7,403 2,645 1,611 4,256 19,932 Me d i c a r e ( m a n d a t o r y p a y m e n t ) 1. 4 5 % 17 7 , 0 5 9 - 1 7 7 , 0 5 9 7 , 3 7 1 - 7 , 3 7 1 1 8 , 0 5 7 - 1 8 , 0 5 7 17,656 - 17,656 10,148 5,996 16,144 59,228 Co m p e n s a t e d A b s e n c e s ( C i t y f u n d i n g o f l i a b i l i t y ) 3. 5 % 40 0 , 3 3 4 - 4 0 0 , 3 3 4 16 , 6 6 5 - 1 6 , 6 6 5 28 , 1 3 3 - 2 8 , 1 3 3 39,916 - 39,916 22,943 13,555 36,498 121,212 Su b t o t a l 1, 6 3 5 , 0 1 5 60 9 , 5 7 4 2, 2 4 4 , 5 8 9 67 , 3 1 3 25 , 3 7 5 92 , 6 8 8 1 1 9 , 2 4 7 42 , 8 6 2 162,109 161,228 61,508 222,736 94,574 55,376 149,950 627,484 2.39% Ot h e r C i t y P a i d B e n e f i t s - Ca f e t e r i a P l a n ( f i x e d c o s t ) Re f e r t o M O U 2, 0 2 9 , 6 1 1 - 2 , 0 2 9 , 6 1 1 85 , 5 0 0 - 8 5 , 5 0 0 2 8 5 , 0 0 0 - 2 8 5 , 0 0 0 399,000 - 399,000 199,500 - 199,500 969,000 Em p l o y e e A s s i s t a n c e P r o g r a m ( f i x e d c o s t ) Va l u e i f u s e d 2, 9 5 8 - 2 , 9 5 8 - - - - - - - - - - - - - Ce l l P h o n e $8 0 / m o 7, 2 6 1 - 7 , 2 6 1 - - - - - - - - - - - - - Su p p l e m e n t a l R e t i r e m e n t P l a n ( P A R S ) Re f e r t o M O U 9, 7 7 3 - 9 , 7 7 3 - - - - - - Un i f o r m A l l o w a n c e ( r e p o r t a b l e v a l u e o n l y ) $1 2 6 / m o 18 0 , 5 2 5 - 1 8 0 , 5 2 5 - - - - - - Li f e I n s u r a n c e ( $ 5 0 K m a x b e n e f i t ; f i x e d c o s t ) Va l u e i f u s e d 12 , 7 0 6 - 1 2 , 7 0 6 - - - - - - - - - - - - - Re t i r e e H e a l t h S a v i n g s A c c o u n t ( e m p l o y e r s h a r e ) Re f e r t o M O U 15 4 , 4 1 6 - 1 5 4 , 4 1 6 - - - - - - - - - - - - - Su b t o t a l 2, 3 9 7 , 2 5 0 2, 3 9 7 , 2 5 0 - 85 , 5 0 0 285,000 399,000 199,500 969,000 3.69% - - - - Ov e r t i m e 3 , 5 3 8 , 2 3 3 - 3 , 5 3 8 , 2 3 3 1 4 6 , 1 8 0 - 1 4 6 , 1 8 0 24 6 , 2 0 0 - 2 4 6 , 2 0 0 350,130 - 350,130 228,500 - 228,500 971,010 3.69% - - - - - - - - ES T I M A T E D S A V I N G S - - - 1) A d d i t i o n a l E m p l o y e e P i c k U p o f P E R S P e n s i o n C o s t s - - - - ( 1 4 6 , 9 0 9 ) (1 4 6 , 9 0 9 ) - ( 2 5 0 , 7 4 6 ) (2 5 0 , 7 4 6 ) - (357,756) (357,756) - (205,781) (205,781) (961,192) -3.66% ( . 7 5 % o n 7 / 1 5 , 1 / 1 6 , 1 / 1 7 , a n d 1 / 1 8 ) - - - - 2) R e d u c t i o n i n t h e C a f e t e r i a A l l o w a n c e O p t O u t N A NA NA N A ( 2 3 , 2 4 4 ) - ( 2 3 , 2 4 4 ) (4 6 , 4 8 8 ) - ( 4 6 , 4 8 8 ) (46,488) - (46,488) (23,244) - (23,244) (139,464) -0.53%- - - - 3) E l i m i n a t i o n o f T h r e e V a c a n t P o s i t i o n s N A N A N A N A (2 2 3 , 4 8 0 ) - ( 2 2 3 , 4 8 0 ) ( 4 5 8 , 9 2 0 ) - ( 4 5 8 , 9 2 0 ) ( 4 7 0 , 8 0 0 ) - (470,800) (241,400) - (241,400) (1,394,600) -5.30%- - - - 4) R e d u c t i o n i n C o n t r a c t O v e r t i m e NA NA NA N A - - - ( 6 1 , 9 2 6 ) - ( 6 1 , 9 2 6 ) (134,800) - (134,800) (71,040) - (71,040) (267,766) -1.02%- - - - (1 5 , 0 8 5 ) (1 5 , 0 8 5 ) (3 9 , 1 7 5 ) (39,175) (63,570) (63,570) (69,300) (69,300) (187,130) -0.71%- 26 , 2 9 5 , 2 6 0 66 9 , 7 5 2 1, 1 0 9 , 3 8 4 1,712,675 1,040,370 4,532,181 17.24% 1 R e p r e s e n t s t h e a v e r a g e o r r a n g e o f b e n e f i t s f o r q u a l i f i e d N B F A m e m b e r s Co s t E s t i m a t e o f 4 Y e a r C o n t a c t w i t h N e w p o r t B e a c h F i r e f i g h t e r s A s s o c i a t i o n Co n t r a c t T e r m : J a n u a r y 1 , 2 0 1 5 t h r o u g h D e c e m b e r 3 1 , 2 0 1 8 Year 4 (FY18-19) Pa y / B e n e f i t s Va l u e o f Be n e f i t 1 F Y 1 5 - 1 6 B u d g e t (r e p r e s e n t i n g 1 2 1 f i r e s u p p r e s s i o n , e m e r g e n c y r e s p o n s e , p a r a m e d i c , a n d f i r e i n s p e c t i o n s p o s i t i o n s ) Ye a r 2 ( F Y 1 6 - 1 7 ) Year 3 (FY17-18) Ex i s t i n g C o s t Projected Costs 2 R e p r e s e n t s o n l y t h e C i t y ' s P E R S p e n s i o n c o s t s ( F Y 1 6 a n d F Y 1 7 r a t e i s 6 0 . 2 % f o r s a f e t y a n d 2 3 . 9 % f o r n o n - s a f e t y ; p r o j e c t e d t o b e 6 0 . 9 % a n d 2 4 . 7 % i n F Y 1 8 a n d F Y 1 9 ) . D o e s n o t r e f l e c t e x i s t i n g c o n t r i b u t i o n s m a d e b y e m p l o y e e s t o w a r d p e n s i o n ( 9 % f o r s a f e t y a n d 10.9% for non safety) ba s e d o n p r i o r l a b o r c o n t r a c t s . Costs as % of Total Comp Total Ye a r 1 ( F Y 1 5 - 1 6 ) 5) R e s t r u c t u r e P a r a m e d i c a n d F i r e f i g h t e r B a s e Co m p e n s a t i o n f o r N e w H i r e s 1/26/16 5-51 ATTACHMENT E 5-52