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HomeMy WebLinkAbout2016-14 - Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management AssociationRESOLUTION NO. 2016-14 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 FIRE MANAGEMENT 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 Fire Management Association for the period of January 1, 2012, through June 30, 2014; and ' WHEREAS, representatives from the City of Newport Beach and representatives from the Newport Beach Fire Management 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 July 1, 2014 through June 30, 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 Fire Management 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 Fire Management Association by adopting a successor Memorandum of Understanding for the period of July 1, 2014, through June 30, 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 Fire Management 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 July 1, 2014, and remaining in full force and effect through June 30, 2018. Resolution No. 2016-14 Page 2 of 2 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 26th day of January, 2016. ATTES:T-)L Nwv— Leilani I. Brown City Clerk Dian B. Dixon Mayor EXHIBIT A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBFMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from July 1, 2014 through June 30, 2018 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of this 2014-2018 MOU. 4. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. -GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2014. This MOU shall remain in full force and effect through June 30, 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. 2. The terms and conditions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. C. Scope 1. All present written rules and currently established practices and employee rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. Bulletin Boards 1. Space shall be provided on bulletin boards within the Fire Department at their present location for the posting of notices and bulletins relating to NBFMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion, age, sexual orientation, or 2 NBFMA MOU 2014 - 2018 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. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a 3 NBFMA MOU 2014 - 2018 successor resolution. Upon request by the Association the parties will engage in non-binding fact finding pursuant to State law. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term 'line employee" shall mean any NBFMA member assigned to work an average 56 hour workweek in 24 hour shift increments. 4. The term "Municipal Fire Departments in Orange County" or "Municipal Fire Departments" shall mean all City operated Fire Departments and the Orange County Fire Authority. SECTION 2. -COMPENSATION A. Salary 1. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments — this MOU Period Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: Effective the payroll period that includes July 1, 2015, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2016, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2017, there shall be a base salary increase of 2.75%. 4 NBFMA MOU 2014 - 2018 Effective the payroll period that includes January 1, 2018, there shall be a base salary increase of 2.75%. B. Overtime - Hours Worked The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Effective July 1, 2016, off-duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one -and -one-half times' the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1% rate and shifts exchanges between two Battalion Chiefs do not qualify for overtime compensation. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (T'/2) 56 -hour rate. The Conditions are: • The Unit employee is working overtime hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. Personnel must use all accrued compensatory time by time of retirement. The provisions for accrual and use of compensatory time shall be provided in Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. 5 NBFMA MOU 2014 - 2018 C. Reguired Uniform City shall pay the entire cost of providing .NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. As permissible by law, the City shall report as pensionable compensation the value of provided uniforms at $9,519 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. D. Scholastic/Certificate Achievement Pav NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. NBFMA member shall receive scholastic achievement pay for degrees awarded by accredited community colleges, state colleges, or universities in accordance with the following: 1. Scholastic Achievement Decree Scholastic Pay % AA/AS 3.5% BA/BS 5.5% 2. Certificate Pay Coursework Compensation Certified Chief Fire Officer 3.0% NBFMA MOU 2014 - 2018 Strike Team Leader * $100 per month * Effective July 1, 2016 Bilingual Pav Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Fire Chief. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off-duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly., Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. G. Compaction Adiustment Effective July 1, 2017, the Battalion Chief salary range will be adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. - LEAVES A. Flex Leave NBFMA members shall accrue flex leave as follows. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Accrual Con't. Svc Hours/Pay Period Line Employees Longevity Accrual Pay Hours/Pay Period Increase Staff Employees NBFMA MOU 2014 - 2018 Less than 5 9.77 6.97 0.00% 5 but less than 9 10.69 7.63 0.00% 9 but less than 12 11.62 8.33 0.00% 12 but less than 16 12.54 8.95 0.00% 16 but less than 20 12.54 8.95 1.5% 20 but less than 25 12.54 8.95 2.5% 25 and over 12.54 8.95 3.5% 2. The Flex leave program shall be administered as follows: NBFMA 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 months of employment, the City will advance up to three (3) months of accrual for line employees for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing 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. NBFMA members shall accrue three (3) months of flex leave immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. C. Members may 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 will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay"). NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (52 times the member's bi-weekly accrual rate) unless, during the twelve months preceding the election, the member has taken at least ninety-six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. Employees, who have accrued in excess of fifty-two (52) times the member's bi-weekly accrual, shall accrue no additional time, unless through use of the time or any authorized cash payment, the NBFMA MOU 2014 - 2018 accrued hours decrease to less than fifty-two (52) times the bi- weekly accrual rate. In no case shall the accrual again exceed fifty- two (52) times the bi-weekly accrual rate. 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. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 will be eliminated for all members. B. Telestaff Selection System The City commits to maintain Telestaff subject to budgetary constraints outlined in this Section. The City shall, for each fiscal year during the term of this MOU, adopt a budget which provides for the payment of overtime specifically for the purpose of implementing Telestaff. The amount to be budgeted shall be calculated by computing the Vacation/Flex leave time (leave) normally accrued by each member during a fiscal year (total annual leave) multiplying total annual leave, by that member's overtime rate of pay (value of leave) and then adding the value of leave for each NBFMA member. Each member's overtime rate of pay shall be calculated on the basis of the member's highest anticipated rate of pay during the upcoming fiscal year. The total "value of leave" for all members shall be identified in the budget as the "LEAVE COVERAGE FUND." C. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro -rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. Staff Employees 9 NBFMA MOU 2014 - 2018 Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex leave bank. D. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee having a regular or probationary appointment because of a death or terminal illness in his/her immediate family." Staff employees shall be entitled to five (5) working days of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). 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 Manual. For the purpose of this section immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, wife, husband, child, stepchild, or grandparent, and the employee's spouse/domestic partner's mother, father, brother, sister, child or grandparent. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. E. Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. F. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. G. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. H. Reassignment 10 NBFMA MOU 2014 - 2018 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. 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. Medical Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the, cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee group with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum 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 NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. The.parties recognize that from July 1, 2014 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 $1,424.00 per month (plus the minimum Ca/PERS participating employer's contribution). 11 NBFMA MOU 2014-2018 January 1, 2017, the City's contribution towards the Cafeteria Plan will increase by $200.00, to $1,624.00 (plus the minimum Ca/PERS participating employee's contribution). On or before 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 Care 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 enroll in any health care plan offered by the City must provide evidence of health care insurance coverage and execute an opt out agreement releasing the City from any- responsibility or liability to provide health care 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, or as soon thereafter is practicable following MOU adoption, 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. 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 12 NBFMA MOU 2014 - 2018 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 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. 4. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. C. Retirement Benefits 1. Retirement Formula 13 NBFMA MOU 2014 - 2018 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 t ("Legacy"): Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier 11 ("Classic"): 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(1), the retirement formula shall be 2%@50, calculated on the basis of the highest consecutive 36 month period selected by the employee. Tier 111 ("PEPRA"): Employees first hired by the City on or after January 1, 2013, who are new members, the retirement formula shall be 2.7%@57 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(1) 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. Tiers I and 11: Effective 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%. Effective January 1, 2016, Tier I and Il members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, 14 NBFMA MOU 2014 - 2018 plus an additional 1.5% of pensionable compensation of the Employer rate, for a total contribution of 10.5%. Effective January 1, 2017, Tier I and 11 members shall contribute the full statutory member contribution, 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%. Effective January 1, 2018, Tier 1 and 11 members shall 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%. Tier I//.- The ll: The normal member contribution rate for Tier 1l1 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 Ill 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 111 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%. 3. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). 4. To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement 1 formula or 2.7% @ 57 formula, shall be eligible to participate in 15 NBFMA MOU 2014 - 2018 a defined .contribution plan to be administered by the City or Its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. D. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit' retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to'January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part. Trust (IPT) Retiree Health Savings Plan CRHS', formerly the MERP plan): 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 16 NBFMA MOU 2014 - 2018 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 1s` 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-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. Spillover pay and Compensatory Time are not eligible for Part C contributions. 17 NBFMA MOU 2014 - 2018 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 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 18 NBFMA MOU 2014 - 2018 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 CaIPERS 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. 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 19 NBFMA MOU 2014 - 2018 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, notjust 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. 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). E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent 20 NBFMA MOU 2014 - 2018 (100%) of the actual cost of tuition, books, fees or other student expenses for approved job—related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of 'B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. Non -College Courses NBFMA members attending job-related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job-related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each an "as needed" basis. NBFMA members apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs NBFMA member, to be replaced on shall wear City provided workout 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 21 NBFMA MOU 2014 - 2018 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. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted permanent status, subject to the following: Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. iii. For purposes of determining layoffs within any Classification; seniority shall mean the time an employee has worked within any Series. C. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time; seasonal or temporary positions. Classifications within.a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights", "Bumping" or "Bump" shall mean the right of an employee in a higher Classification who is subject to layoff to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a 22 NBFMA MOU 2014 - 2018 Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c: An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Firefighter shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. in the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by law, the provisions of this Memorandum of Understanding, or City policy. 4. Re -Employment 23 NBFMA MOU 2014- 2018 Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. Re- employment lists will be valid for two (2) years. The re-employment list shalf remain in effect until exhausted by removal of all names on the list. In the .event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. .Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay Permanent employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. C. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. D. Staff Assignment Schedule NBFMA members assigned to staff positions shall .have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member isnot able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and 24 NBFMA MOU 2014 - 2018 at the discretion and approval of the Fire Chief, FLSA exempt employees working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. E. Consecutive Shifts Effective concurrent with this 2014-18 MOU, 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 Fire Chief or designee approval, based upon operational needs. Signatures on the following page 25 NBFMA MOU 2014 - 2018 Executed this day of January, 2016. FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: Je"oyles, PresldenK} Brian McDonough, Vi e -President FOR THE CITY OF NEWPORT BEACH: ATTEST: 0 A Diane B. Dixon, Mayor Leilani Brown, City Clerk APPROVED AS TO FORM: By,� Aaron Harp, City Attorney 1K I u 26 NBFMA MOU 2014 - 2018 Newport Beach Fire Management Association Classifications and Pay Rates Hourly Pay Rate Monthly Pay Rate Effective July 1, 2015 (2.75% adjustment) Min Max Min Max Fire Batt Chief 80 Hrs (+7.5%) $63.81 $77.57 $11,060 $13,445 Fire Line Batt Chf 112 Hrs $42.39 $51.53 $10,288 $12,504 Effective January 1, 2016 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%) $65.56 $79.70 $11,364 $13,815 Fire Line Batt Chf 112 Hrs $43.56 $52.95 $10,571 $12,848 Effective January 1, 2017 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%) $67.37 $81.89 $11,677 $14,194 Fire Line Batt Chf 112 Hrs $44.76 $54.40 $10,861 $13,202 Effective July 1, 2017 (3% compaction adjustment) Fire Batt Chief 80 Hrs (+7.5%) $69.39 $84.35 $12,027 $14,620 Fire Line Batt Chf 112 Hrs $46.10 $56.03 $11,187 $13,598 Effective January 1, 2018 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%) $71.29 $86.67 $12,358 $15,022 Fire Line Batt Chf 112 Hrs $47.37 $57.58 $11,495 $13,972 27 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2016-14 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 261h day of January, 2016, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 27th day of January, 2016. 4444-&V�� City Clerk Newport Beach, California (Seal)