HomeMy WebLinkAbout2018-61 - Adopting a Memorandum of Understanding between the City Of Newport Beach and the Newport Beach Fire Management Association and Associated Salary ScheduleRESOLUTION NO. 2018-61
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 FIRE MANAGEMENT ASSOCIATION AND
ASSOCIATED SALARY SCHEDULE
WHEREAS, the City Council of the City of Newport Beach ("City Council")
previously adopted Resolution No. 2001-50, the "Employer -Employee Relations
Resolution," pursuant to authority contained in the Meyers-Milias-Brown Act (Government
Code §3500, et seq.);
WHEREAS, the City of Newport Beach ("City") promotes effective communication
and collaborative working relationships with its employee associations to foster improved
relations while balancing good management practices;
WHEREAS, the City previously entered into a Memorandum of Understanding
("MOU") with the Newport Beach Fire Management Association ("NBFMA"), a recognized
organization, for the term of July 1, 2014 through June 30, 2018;
WHEREAS, City and NBFMA representatives met and conferred in good faith and
reached a tentative agreement on wages, benefits and other terms and conditions of
employment with the NBFMA which are memorialized in an MOU between the parties
attached hereto as Exhibit A and incorporated herein by this reference;
WHEREAS, the NBFMA ratified said tentative agreement on July 5, 2018;
WHEREAS, City of Newport Beach Charter Section 601 requires the City Council
to provide the number, titles, qualifications, powers, duties and compensation of all
officers and employees of the City;
WHEREAS, Newport Beach Municipal Code Section 2.28.010 requires, upon
recommendation of the City Manager, the City Council to establish by resolution the
salary range or rate for each class or position in City employment;
WHEREAS, by adopting this resolution, the City Council intends to amend the
salary schedule for NBFMA members so as to be in conformance with the MOU;
WHEREAS, the City Manager has reviewed the salary schedule provided in this
resolution and recommends approval;
WHEREAS, the City Council received and considered the MOU at its regular
meeting on July 24, 2018; and
Resolution No. 2018-61
Page 2 of 3
WHEREAS, by adopting this resolution, the City Council also desires to replace
the 2014-2018 MOU between the City and the NBFMA by adopting the MOU attached
hereto as Exhibit A to serve as the successor agreement between the City and the
NBFMA for the period July 1, 2018 through June 30, 2019.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: Wages, hours, fringe benefits, and other terms and conditions of
employment for employees represented by the NBFMA shall be provided in accordance
with the provisions of the MOU attached hereto as Exhibit A, which shall serve as the
successor agreement between the City and the NBFMA for the period July 1, 2018
through June 30, 2019.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution. Any previously adopted resolution,
or portion thereof, in conflict with the provisions of this resolution is hereby repealed to
the extent it conflicts.
Section 3: 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, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: 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 5: 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 14th day of August 2018.
ATTEST:
1. 1 I' ► � ir�l►
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Fro/Aaron C. Harp
City Attorney
Resolution No. 2018-61
Page 3 of 3
arshall "Duff ' Duffield
Mayor
Attachments: Exhibit A - Memorandum of Understanding
EXHIBIT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH
FIRE MANAGEMENT
ASSOCIATON
\��FORNI
July 1, 2018 through June 30, 2019
SECTION
1. GENERAL PROVISIONS ..................................................
1
A.
Recognition.............................................................................................
t
B.
Term.......................................................................................................1
C.
Scope......................................................................................................2
D.
Bulletin Boards........................................................................................2
E.
Conclusiveness.......................................................................................2
F.
Modifications...........................................................................................3
G.
Savings...................................................................................................3
H.
Impasse..................................................................................................3
I.
Definitions...............................................................................................3
SECTION
2. COMPENSATION.............................................................
4
A.
Salary ......................................................................................................4
B.
Overtime - Hours Worked.......................................................................4
C.
Required Uniform....................................................................................5
D.
Scholastic/Certificate Achievement Pay..................................................5
E.
Bilingual Pay...........................................................................................6
F.
Court Standby Pay..................................................................................7
G.
Compaction Adjustment..........................................................................7
SECTION
3. LEAVES..............................................................................
7
A.
Flex Leave..............................................................................................
7
B.
Holiday Time...........................................................................................9
C.
Bereavement Leave................................................................................9
D.
Jury Duty.................................................................................................10
E.
Family Sick Leave...................................................................................10
F.
Workers' Compensation Leave. ............. ................................................
10
G.
Reassignment.........................................................................................10
SECTION
4. FRINGE BENEFITS..........................................................
10
A.
Medical Insurance...................................................................................10
B.
Additional Health Insurance/Programs....................................................11
C.
Retirement Benefits................................................................................12
D.
Retiree Medical Benefit...........................................................................15
E.
Tuition Reimbursement...........................................................................18
F.
Annual Physical Examinations................................................................19
G.
Physical Conditioning Equipment/Apparel..............................................19
SECTION
5. MISCELLANEOUS PROVISIONS .....................................
19
A.
Reductions in Force/Layoffs...................................................................19
B.
Fire Suppression Staffing Levels............................................................22
C.
Staff Assignment Schedule.....................................................................22
D.
Consecutive Shifts..................................................................................22
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:
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. 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. Term
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, 2018. This MOU shall remain in full force
and effect through June 30, 2019, 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 provisions 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.
NBFMA MOU 2018-2019
C. Scope
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
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 by the NBFMA shall indicate that the NBFMA posted it. 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 any protected class under the law or other statutorily or
constitutionally impermissible basis, as well as any pornographic or
obscene material.
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
any protected class under the law 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.
NBFMA MOU 2018-2019
F. Modifications
Any agreement, alteration, understanding, variation, or waiver or modification of
any of the terms or provisions of this MOU shall not be binding upon the parties
unless contained in a written document executed by authorized representatives of
the parties.
G. Savings
Should any part of this MOU be rendered or declared illegal or invalid by legislation,
decree of court of competent jurisdiction or other established governmental
administrative tribunal, such invalidation shall not affect the remaining portions of
this MOU provided, however, should the provisions of this MOU relating to salary
increases, fringe benefits, or the compensation policy be declared invalid the City
shall provide alternative forms of compensation such that NBFMA members suffer
no financial detriment by virtue of the decision or ruling with the manner and form
of the compensation to be determined by the parties after meeting and conferring
in good faith.
H. Impasse
In the event of an impasse (the failure to agree on a new MOU after the express
term of the existing MOU has expired), the parties may agree on mediation
pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a
successor resolution. 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
The term "member" or "NBFMA member" shall mean all persons within
classifications represented by NBFMA.
The term "staff employee" shall mean any NBFMA member who is assigned
to work a 40 -hour workweek.
The term "line employee" shall mean any NBFMA member assigned to work
an average 56 -hour workweek in 24-hour shift increments.
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.
NBFMA MOU 2018-2019
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
There shall be no cost of living adjustments to base salary during the term
of this agreement.
B. Overtime - Hours Worked
The City and Association agree that all unit classifications are properly
exempted from the overtime 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. 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'/z 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
(1 1/2) 56 -hour rate. The Conditions are:
The Unit employee is working outside of his or her regularly
scheduled hours;
The Strike Team is operating outside of the city limits;
4 NBFMA MOU 2018-2019
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. 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.
C. Required Uniform
City shall pay the entire cost of providing NBFMA member with each
component of the required NBFD uniform. The required NBFD uniform includes
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.
PERS Reporting of Uniform Allowance - To the extent permitted by law, the
City shall report to the California Public Employees' Retirement System
(CalPERS) the uniform allowance for each sworn classification as special
compensation in accordance with Title 2, California Code of Regulation,
Section 571(a)(5). Notwithstanding the previous sentence, for "new members"
as defined by the Public Employees' Pension Reform Act of 2013, the uniform
allowance will not be reported as pensionable compensation to CaIPERS.
Specifically, the City shall report as pensionable compensation the value of
provided uniforms at $1,519 annually ($58.42 per pay period) 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 Pay
NBFMA members are entitled to additional compensation contingent upon
scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay").
NBFMA members may apply for increases pursuant to this Section when
eligible and scholastic/certificate achievement pay shall be included in the
member's paycheck for the pay period immediately after approval by the Fire
Chief. It is the responsibility of the NBFMA member to apply for
NBFMA MOU 2018-2019
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
Degree Scholastic Pay %
AA/AS 3.5%
BA/BS 5.5%
2. Certificate Pay
Coursework Compensation
Certified Chief Fire Officer 3.0%
Strike Team Leader $100 per month
The parties agree that to the extent permitted by law, the Scholastic
Achievement pay in this section is special compensation and shall be reported
to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(2) Educational
Incentive Pay.
E. Bilingual Pay
Employees certified as bilingual (Spanish) shall be eligible to receive One
Hundred Fifty ($150.00) Dollars per month ($69.23 per pay period) 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.
The parties agree that to the extent permitted by law, the Bilingual pay in this
section is special compensation and shall be reported to Ca1PERS as such
pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium.
NBFMA MOU 2018-2019
F. Court StandbV PaV
NBFMA members who, pursuant to subpoena compelling attendance to testify
to acts, observations, or omissions occurring in the course and scope of
employment or at the direction of their supervisor, are required, while off-duty,
to remain within a certain response time from court, shall be considered to be
on "court standby time" and shall receive four hours of pay for each eight hours
of court standby time. NBFMA members shall, when required to appear in court
pursuant to a subpoena or the direction of their supervisor to testify at to matters
relating to their employment with the City, be considered to be on duty and shall
be paid accordingly. Members shall remit all witness fees received for testifying
or appearing on any matter for which the member is eligible to receive court
standby time.
G. Compaction Adjustment
Effective July 1, 2017, the Battalion Chief salary range was 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.
Years
of Continuous
Service
LINE EMPLOYEES
STAFF EMPLOYEES
Accrual Maximum Accrual
Hours/Pay Period
Accrual
Hours/Pay Period
Maximum Accrual
Less than 5
9.77
508.04
6.97
362.44
5 but less than 9
10.69
555.88
7.63
396.76
9 but less than 12
11.62
604.24
8.33
433.16
12 and over
12.54
652.08
8.95
465.40
1. The Flex leave program shall be administered as follows:
a. Newly hired 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 in 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 (63.50 hours) /staff employees (45.30 hours) for
use by the member to recover from illness.
7 NBFMA MOU 2018-2019
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.
Newly hired NBFMA members shall accrue three (3) months of flex
leave (line employees (63.50 hours) /staff employees (45.30 hours)]
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.
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 not elect to buy down accrued Flex Leave
below the current threshold for payment 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 shall have the option of converting accrued Flex Leave
to cash on an hour for hour basis subject to the following: On or
before the pay period which includes December 15 of each calendar
year, an employee may make an irrevocable election to cash out
accrued flex leave which will be earned in the following calendar
year. The employee can elect to receive the cash out in the pay
period which includes June 30 and the pay period which includes
December 15 for those Flex Leave benefits that have been earned
during that portion of the year. In no event shall the flex leave
balance be reduced below what each employee can accrue for fifty-
two pay periods. On or before December 31, 2018, each employee
shall have the one-time option of cashing out all or a portion of Flex
Leave benefits credited to his/her account as of that date. However,
in no event shall the flex leave balance be reduced below what each
employee can accrue for fifty-two pay periods.
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.
Members shall be paid for all accrued flex leave at their current
hourly rate of pay upon termination.
NBFMA MOU 2018-2019
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 was eliminated for all members.
B. 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. Holiday pay shall be paid bi-weekly with the regular check. The parties
agree, to the extent permitted by law, the compensation in this section is
special compensation for those employees who are normally required to
work on an approved holiday because they work in positions that require
scheduled staffing without regard to holidays and shall be reported as such
pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay.
2. Staff Employees
Staff Employees may be required to take specified City holidays off, in the
sole discretion of the Fire Chief. Time will be charged against the
employee's flex leave bank.
C. Bereavement Leave
Bereavement leave shall be defined as "the necessary absence from duty by an
employee because of a death or terminal illness in his/her immediate family." Staff
employees shall be entitled to ) forty (40) hours 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 but no more than 90 days from the date of the death of the family
member. Exeptions to the 90 day requirement may be made at the sole discretion
of the Fire Chief. 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, registered domestic partner, child,
stepchild, or grandparent, and the employee's spouse/domestic partner's mother,
father, brother, sister, child or grandparent. An employee requesting bereavement
leave shall notify his/her supervisor as soon as possible of the need to take leave.
NBFMA MOU 2018-2019
D. Jury Du
NBFMA members who are assigned to line positions and are called to jury duty
shall be excused for each 24-hour shift during which the member is required to
attend court and sit on a jury or await assignment.
E. Family Sick Leave
Unit employees shall be entitled to use their annual leave accrual as set forth in
Labor Code section 233.
F. Workers' Compensation Leave
Any 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.
G. 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. 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
The City has established a Benefits Information Committee (BIC) composed
of one representative from each employee association 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 association with information
about health insurance/programs and to receive timely input from associations
regarding preferred coverage options and levels of coverage.
2. City Contribution
The City has implemented an IRS qualified Cafeteria Plan. In addition to the
amounts listed below, the City shall contribute the minimum CaIPERS
10 NBFMA MOU 2018-2019
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.
Effective the pay issue that includes:
January 1, 2019, the City's contribution towards the Cafeteria Plan will
increase by $200.00, to $1,824. 00 (plus the minimum CaIPERS participating
employee's contribution).
Unit members who do not enroll in any health care plan offered by the City
must provide proof of minimum essential coverage ("MEC') through another
source (other than coverage in the individual market, whether or not obtained
through Covered California) and execute an opt out agreement releasing the
City from any responsibility or liability to provide health care insurance
coverage, on an annual basis.
Employees electing to opt out of medical coverage offered by the City because
they have provided proof of minimum essential coverage ("MEC') through
another source (other than coverage in the individual market, whether or not
obtained through Covered California) will receive a maximum cafeteria
allowance of $1, 000.00 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
11 NBFMA MOU 2018-2019
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
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.
Employees have a one (1.0%) percent reduction for the cost of this benefit
from base salary.
3. Life Insurance
The City shall provide life insurance for all 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. Employees may also purchase
supplemental life insurance at their own cost.
4. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) for Association
members 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
12 NBFMA NIOU 2018-2019
The City contracts with the California Public Employees Retirement System
("CaIPERS" 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: 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 II: For classic members (as defined in the Public Employees' Pension
Reform Act) employees first hired by the City on or after November 24,
2012, and who are not new members as defined in Government Code
Section 7522.04(f), the retirement formula is 2%@50. For these same
employees, final compensation will be based on the highest annual average
compensation earnable during the three consecutive years of employment
immediately preceding the effective date of his or her retirement or any
other three consecutive year period chosen by the employee as set forth in
Government Code section 20037.
Tier III ("PEPRA"): Employees first hired by the City on or after January 1,
2013, who are new members as defined in the Public Employees' Pension
Reform Act), the retirement formula shall be 2.7%@57 provided for by the
Public Employees' Retirement Law at Government Code section
7522.25(d).
For these same employees, final compensation will be based on the highest
annual average compensation earnable during the three consecutive years
of employment immediately preceding the effective date of his or her
retirement or any other three consecutive year period chosen by the
employee as set forth in Government Code section 7522.32(a).
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.
13 NBFMA MOU 2018-2019
Tiers I and 11:
Tier I and II members shall contribute the full statutory member contribution,
equal to 9% of pensionable compensation, plus an additional 3% of
pensionable compensation of the Employer rate, for a total contribution of
12%.
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.
Tier III members will contribute the full statutory member contribution, plus,
if the statutory amount is below 12% an additional percentage of
pensionable compensation of the Employer rate to achieve a total
contribution of 12%. If the member contribution for Tier 111 members is
above 12%, they will not need to contribute any additional amount towards
the Employer rate.
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.
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 formula or 2.7% @ 57 formula, shall be eligible to participate in
a defined contribution plan to be administered by the City or its designee in
accord with said regulatory agency regulations and laws. The defined
contribution plan shall be funded by allowing each affected employee to
contribute a percentage of base salary each payroll period. The City shall
match any such employee contributions up to a maximum of 1.5% of base
salary. The employee only contributions shall be deemed fully vested at the
time of its deposit. The employer only matching contribution shall vest upon
a PERS retirement being implemented as follows: 100% - age 55+; 80% -
age 54; 60% - age 53, 40% - age 52; 20% - age 51.
14 NBFMA MOU 2018-2019
D. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the previous
"defined benefit" retiree medical program with a new "defined contribution"
program. The process of fully converting to the new program will be ongoing
for an extended period. During the transition, employees and (then) existing
retirees have been administratively classified into one of four categories. The
benefit is structured differently for each of the categories. The categories are
as follows:
a. Category 1 - Employees newly hired after January 1, 2005.
b. Category 2 - Active employees hired prior to January 1, 2006, whose
age plus years of service as of January 1, 2005 was less than 50 (46
for public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006, whose
age plus years of service was 50 or greater (46 for public safety
employees) as of January 1, 2005.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings Plan ("RHS",
formerly the MERP plan):
a. For emplovees in Cateoory 1. the prooram 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 expenses 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 1 sc based on status as of
December 31 st of the prior year).
15 NBFMA MOU 2018-2019
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. 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. 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.
Nothing in this section restricts taking leave for time off purposes
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 (i.e. five years at
full time status). 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
16 NBFMA MOU 2018-2019
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 i.e., the CaIPERS statutory minimum amount) 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.
31
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.
17 NBFMA MOU 2018-2019
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 per year,
accruing at the rate of $400 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.
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.
E. Tuition Reimbursement
Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal
year.
1. College Courses
NBFMA members attending accredited community colleges, colleges, trade
schools or universities may apply for reimbursement of one hundred percent
(100%) of the actual cost of tuition, books, fees or other student expenses for
approved job—related courses. Reimbursement is contingent upon the
successful completion of the course. Successful completion means a grade
of "C" or better for undergraduate courses and a grade of "B" or better for
18 NBFMA MOU 2018-2019
graduate courses. All claims for tuition reimbursement require the approval of
the Human Resources Director.
2. Non -College Courses
NBFMA members attending job-related classes, courses, and seminars given
by recognized agencies, organizations or individuals other than accredited
college institutions may apply for reimbursement of one hundred 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 NBFMA member, to be replaced on an
"as needed" basis. NBFMA members shall wear City provided workout apparel
when working out on duty.
SECTION 5. MISCELLANEOUS PROVISIONS
A. Reductions in Force/Layoffs
The provisions of this section shall apply when the City Manager determines that
a reduction in the work force is warranted because of actual or anticipated
reductions in revenue, reorganization of the work force, a reduction in municipal
services, a reduction in the demand for service or other reasons unrelated to the
performance of duties by any specific employee. Reductions in force are to be
accomplished, to the extent feasible, on the basis of seniority within a particular
Classification or Series and this Section should be interpreted accordingly.
19 NBFMA MOU 2018-2019
1. Definitions
"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 regular status, subject to the following:
Credit shall be given only for continuous service (as described
in the next paragraph) subsequent to the most recent
appointment to regular status in the Classification or Series;
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.
"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).
In this bargaining unit, there is one "Series" made up of the two
classifications represented by the Association — Fire Battalion Chief,
80 hours (+7.5%) and Fire Line Battalion Chief 112 hours.
e. "Bumping Rights", "Bumping" or "Bump" shall mean the right of an
employee in a higher Classification who is subject to layoff to
displace a less senior employee in a lower Classification within the
Series. No employee shall have the right to Bump into a
Classification for which the employee does not possess the minimum
qualifications such as specialized education, training or experience,
provided, however, the City shall allow an employee to become re-
certified as an EMT or a paramedic in the event the employee's
certification has expired due to promotion to another position. An
employee has the right to "Bump" into only those positions the
employee has previously held with the Department.
20 NBFMA MOU 2018-2019
2. Procedures
In the event the City Manager determines to reduce the number of
employees within a Classification, the following procedures are applicable:
a. Employees within a Classification shall be laid off in inverse order of
seniority;
b. 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.
C. 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).
4. Re -Employment
Regular employees who are laid off shall be placed on a Department re-
employment list in reverse order of layoff. Re-employment lists will be valid
for two (2) years. The re-employment list shall remain in effect until
exhausted by removal of all names on the list. In the event a vacant position
occurs in the Classification which the employee occupied at the time of
layoff, or a lower ranking Classification within a Series, the employee at the
top of the Department re-employment list shall have the right to appointment
to the position, provided, he or she reports to work within seven (7) days of
written notice of appointment. Notice shall be deemed given when
personally delivered to the employee or deposited in the U.S. Mail, certified,
return receipt requested, and addressed to the employee at his or her past
known address. Any employee shall have the right to refuse to be placed
on the re-employment list or the right to remove his or her name from the
21 NBFMA MOU 2018-2019
re-employment list by sending written confirmation to the Human Resources
Director.
5. Demotion
Regular 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
Regular 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. 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.
C. 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 is not able
to perform theirjob 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 at the discretion
and approval of the Fire Chief, unit employees (who are all FLSA exempt) working
a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change
does not disrupt departmental operations.
D. Consecutive Shifts
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.
Additional consecutive shifts may be permitted with Fire Chief or designee
approval, based upon exigent circumstances.
Signatures on the following page
22 NBFMA MOU 2018-2019
Executed this day of August, 2018.
FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION:
0
Brian McDonough, President
By:
Justin rr, Vice -President
FOR THE CITY OF NEWPORT BEACH:
ATTEST:
IN
0
Duffy Duffield, Mayor
APPROVED AS ORM:
BY:
Peter J. Brown, Special Counsel
Leilani Brown, City Clerk
23 NBFMA MOU 2018-2019
Exhibit A
Newport Beach Fire Management Association
Classifications and Pay Rates
MOU Term: July 1, 2018—June 30, 2019
Effective January 1, 2018 (2.75% adjustment)
Fire Battalion Chief 80 Hrs (+7.5%)
Fire Line Battalion Chief 112 Hrs
Hourly Pay Rate
Min Max
$71.29 $86.67
$47.37 $57.58
Monthly Pay Rate
Min Max
$12,358 $15,022
$11,495 $13,972
24 NBFMA MOU 2018-2019
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, the foregoing resolution, being Resolution
No. 2018-61 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 141h day of August, 2018; and the same was so passed and adopted by the
following vote, to wit:
AYES: Council Member Herdman, Council Member Diane Dixon, Council Member Kevin
Muldoon, Council Member Scott Peotter, Council Member Brad Avery, Mayor Pro Tem
Will O'Neill, Mayor Duffy Duffield
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 251h day of July, 2018.
/ d4l
Leilani I. Brown
City Clerk
Newport Beach, California