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HomeMy WebLinkAbout03/24/1986 Item #F-2eCITY OF NEWPORT BEACH PERSONNEL DEPARTMENT March 24, 1986 TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL FROM: Duane K. Munson Personnel Director *nda Item F2(e) BY THE CITY COUNCIL CITY OF NEWPORT REACH MAR 24 1986 �Cl�el/CC�i 4-S F�-2- SUBJ: F.L.S.A. COMPLIANCE PLAN FOR THE FIRE DEPARTMENT Background: As you are aware, last November, the President signeg­special relief legislation giving cities more time to come into compliance with the Fair Labor Standards Act (FLSA). The Fire Department, with its unique scheduling requirements, will experience far and away the most significant cost impact of any Department in our City. Last Fall we reopened meet -and -confer and arrived at the attached agreement as our method of compliance with the F.L.S.A. The agreement has two contingencies listed as Items Number 13 and 14. We invoked Number 13 when President Reagan signed S.1570 by eliminating the retroactive pay provisions described in Item Number 12, and by postponing the compliance date until at least April 15, 1986. With no further legislative that would further affect our F.L.S.A., it is time to gain required by Item Number 14. action or Court cases in sight obligation to comply with the the City Council's approval as Discussion: The proposed agreement is the product oT` negotiations between the City and the Newport Beach Firefighters Association. The authority for these negotiations comes from the current M.O.U. which provided for a reopener on the subject of F.L.S.A. compliance. The concept of this agreement was disclosed to the negotiators of the Firefighters Association as well as to the City Council's Budget Committee prior to the signing of the current M.O.U. The key element of the agreement is the method of determining the base hourly wage dividing annual earnings by 2990 hours rather than 2912 hours. This in effect reduces the base wage by 2.67%, which allows us to maintain the current 56 -hour weekly schedule without incurring any additional cost for the overtime that is now, by F.L.S.A.. definition, included in the base schedule. (�,F • -2- F.L.S.A. COMPLIANCE (continued) The actual compliance cost impact, by virtue of this agreement, is limited to only hours worked over and above the regularly scheduled 56 -hour workweek. The Fire Department will normally use between 15,000 and 20,000 unscheduled overtime manhours to maintain its forces in the interest of public safety. Under provisions of this agreement, F.L.S.A. compliance cost for this Fire Department will be approximately $125,000. Without this agreement, F.L.S.A. compliance cost would have been approximately $205,000. RECOMMENDATION: Staff respectfully requests that the City Council approve this agreement to become effective April 12, 1986, and to become an Addendum to the 1985-1986 Memorandum of Understanding betweem the Newport Beach Firefighters Association and the City of Newport Beach. Additionally, the staff recommends that we maintain the exempt status of Fire Battalion Chiefs, but also upgrade their overtime pay from straight time to time and one-half. This action would serve to maintain the pay differential between Battalion Chiefs and those who they supervise. This measure would cost an additional $1,250 per man per year at present salary levels, the total cost would approximate $5,000. oil • RESOLUTION NO. 86-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AN AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIREFIGHTERS' ASSOCIATION REGARDING COMPLIANCE WITH THE FAIR LABOR STANDARDS ACT. WHEREAS, the City is required to comply with the Fair Labor Standards Act on or before April 15, 1986. WHEREAS, the 1985-1986 Memorandum of Understanding between the City of Newport Beach and the Newport Firefighters' Association authorizes negotiations on the subject of compliance with the Fair Labor Standards Act. WHEREAS, the City and the Newport Beach Firefighters' Association have reached an Agreement regarding compliance with the Fair Labor Standards Act. The terms of this Agreement are attached hereto as Exhibit "A" and incorporated herein by this reference. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the terms of the Agreement between the City of Newport Beach and the Newport Beach Firefighters' Association regarding compliance with the Fair Labor Standards Act, as set forth in Exhibit "A" attached hereto and incorporated herein by this reference, are hereby approved. BE IT FURTHER RESOLVED that although the City has declared Fire Battalion Chiefs exempt from the provisions of the Fair Labor Standards Act, the City will pay Fire Battalion Chiefs time -and -one-half overtime for hours worked in excess of their normal schedule which is one hundred twelve (112) average hours per work period. BE IT FURTHER RESOLVED that this Resolution is to be effective on April 12, 1986 and attached as Addendum Number 2 to the 1985-1986 Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters' Association. ADOPTED this ATTEST; City Clerk 24th day of March , 1986. CITY OF NEWPORT BEACH • PERSONNEL OFFICE Oct. 2, 1985 TO: Jim Upton, President Newport Beach Firefighters Association FROM: Duane K. Munson Personnel Director SUBJ: REVIEW OF OUR AGREEMENT ON COMPLIANCE TO F.L.S.A. At our last meeting which took place on September 24, 1985, the City Negotiators reached a tentative agreement with the negotiators for the Newport Beach Firefighters Association for the purpose of coming into compliance with the Fair Labor Standards Act. This agreement is comprized of the following points: 1. The City will declare the 7K exemption under F.L.S.A. -ret-reaeta -ve- te- Apr4 I- Ira-, - 1889 . 2. The City will set the work/period at 28 days, and the work/ period will be an overlay of the City's payroll schedule. The Fire work periods will start new with the beginning of every other regular payroll. 3. The City declares the following represented classifications exempt from the provisions of the F.L.S.A: Captains - Executive Paramedic Coordinator - Executive Inspectors - Professional (personnel assigned to Fire Prevention more than 30 days) 4. The determination of the Base hourly wage will be the product of the individuals's annual earnings (prescribed by the City's Salary Ordinance) divided by 2990 hours. 5. The Base rate will be adjusted by the appropriate incentive rate (such as Education Pay) to equal the Regular rate. The Regular rate will be used for payment of hours worked outside of the normal schedule. 6. The Base hourly rate will be paid for all regularly scheduled work hours including regularly scheduled overtime. This will usually be 218, 218, & 254 (216 +2 and 240 + 14). 7. Overtime worked in addition to regular scheduled overtime, with exception of hours offset by sick hours in a bi-weekly pay period, will be compensated at 1.5 times the Regular rate. Sick time will not be used to offset regularly scheduled overtime. Exhibit A 0 • REVIEW OF AGREEMENT WITH FIREFIGHTERS ASSOCIATION ON COMPLIANCE TO F.L.S.A. 8. Although the City has declared Captains, the Paramedic Coordinator, and Inspectors exempt from the provisions of the F.L.S.A., the City will pay Captains and Inspectors time -and -one-half overtime for hours worked in excess of their normal schedule (224 112 average per pay period for Captains, the Paramedic Coordinator and UG 80 hours per pay period for Inspectors). 9. Any future sick pay conversions for retirees or vacation payoffs for employees who otherwise leave City employment will be calculated from the average daily rate, which will be determined by dividing the normally scheduled workdays into the annual salary as set by City Ordinance. 10. Non-exempt personnel shall be paid for actual hours worked bi-weekly at straight time. The 1/2 time premium on non scheduled overtime will bepaid avary-oiler-payroll, at-tha #.ime-o#-tle 7K-cloriag. on a biweekly basis. 11. Captains, the Paramedic Coordinator and Inspectors shall be paid on a 26 -installment amortization of their annual salary, overtime premiums for non scheduled overtime will be paid -wary-other-payroll on a biweekly basis and added to the amortized base. 12. Aeiro"Zive-$ay-wawa-react-bark-to-April-15,-1985.--Ile -pramiu& pay- due -will -be -calculated- by- usiag- the- formula desea^ileo-abeve%--T#ie-anfwa4-se4ery-ased-fer- the- bas4s-fer eaactrlat4ott-w44a- wHatever-was -4fi-offeet-at-the-tome-0e premltmrpey-was-earned: 13. The City and the Newport Beach Firefighters Association have agreed that should the Courts and/or the Legislature develop any form of partial or total relief from the provisions of the F.L.S.A. which applies to the City, this agreement becomes null and void and we will return to the provisions of our current M.O.U. 14. It is understood that final agreement is subject to approval of the members of the Newport Beach Firefighters Association and the City Council of Newport Beach.