HomeMy WebLinkAbout06 -MOU - Newport Beach Firefighters AssociationJanuary 13, 1997
Agenda Item No. 6
CITY OF NEWPORT BEACH -
ADMINISTRATIVE SERVICES DEPARTMENT
i Resource Management Division JAN J 3W
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December 20,1996
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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dennis Danner, Administrative Services Director C ",2d(,0
SUBJECT: MEMORANDUM OF UNDERSTANDING - NEWPORT BEACH
FIREFIGHTERS ASSOCIATION
DISCUSSION:
The current agreement with the Firefighters Association expired on December 31, 1995.
The terms of the agreement were extended through the current time with the mutual
consent of the City and the Association while negotiations were going on for a new
agreement. It was the City's goal to provide a fair and competitive salary and benefit
package to the Association members while reducing certain benefits that would achieve
a long term significant cost savings to the City. The Firefighters Association was very
cooperative and helpful in achieving this goal.
The City and the Association reached tentative agreement on a new contract earlier this
year. The new agreement will cover the period from January 1, 1996 through December
31, 1997. Following are the significant conditions of this agreement:
Compensation Adjustment:
A. Effective the first pay period of October, 1996 - The City will pick up
the full cost (1.75%) of the Employer PERS rate increase for the 1996-97
fiscal year.
B. Effective the first pay period of October, 1996 - A total compensation
adjustment equal to one-half of the amount needed to place the
association members at the average total compensation of the top five
fire agencies in Orange County, using July, 1995 survey figures.
Effective the first pay period of March, 1997 - A total compensation
adjustment which will place the association members at the average of
the total compensation of the top five fire agencies in Orange County,
using January, 1997 survey figures.
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The first adjustment will be approximately 1.0% of salary while the
second adjustment is estimated at approximately 2.0% of salary.
'W'eri ratification, the City agrees to cap the flex leave accrual schedule at the 12 but less is
than 16 year accrual level. At the same time, longevity increments of 1 % for the years of
16 but less than 20;1.75% for the years of 20 but less than 25; and 2.5% for years 25 and
over will be provided.
2. Holiday Pay:
Effective upon ratification, all association members will be given the
opportunity to convert 0 to 132 hours of holiday time to pay in 12 hour
increments. The association has indicated that this conversion will include
a minimum of 50% of holiday hours converted to pay. Holiday pay will be
paid bi-weekly with the regular paycheck. Newly hired employees shall
have 100% of their holiday compensation provided in pay.
3. Flex Leave Accrual Schedule for New Hires:
The following flex leave accrual rates would apply for employees hired
after October 1,1996:
Staff Employees:
Years of Accrual per Longevity •
Continuous Service lay period/hrs Days per Year Pay Increase
1 but less than 5
4.92
16.00
N/A
5 but less than 9
5.53
18.00
N/A
9 but less than 12
6.46
21.00
N/A
12 but less than 16
7.28
23.66
N/A
16 but Iess than 20
7.93
25.77
1.00%
20 but Iess than 25
7.93
25.77
1.75%
25 and over
7.93
25.77
2.50%
Line Employees:
1 but less than 5
6.89
7.45
N/A
5 but less than 9
7.74
8.38
N/A
9 but less than 12
9.04
9.79
N/A
12 but less than 16
10.18
11.03
N/A
16 but less than 20
11.10
12.13
1.00%
20 but less than 25
11.10
12.13
1.75%
25 and over
11.10
12.13
2.50% .
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4. Revised Salary Schedule:
Effective October 1, 1996 two lower salary steps, 10% and 5% below the
current starting salary steps, will be added to the salary range.
5. Health Insurance Opt Out:
Effective October 1, 1996, the City will implement a system whereby
employees with proof of alternative medical coverage could opt out of the
City plan and receive, in lieu, $200 monthly cash payment.
6. Retiree Medical:
Agree to achieve cost containment of retiree medical insurance through
meetings of the Medical Advisory Committee. Cap at $400 per month
contribution by City and active employees.
7. Personnel Rules:
Within 90 days of the execution of the MOU, the City will provide draft
revised personnel rules to the Association for review.
0 8. Progressive Discipline and Grievance Procedure:
The language in the existing MOU regarding the progressive discipline plan
and grievance procedure shall be carried forward in the new MOU.
9. Association Leave:
The City will provide the Association with 67 hours annually.
ANALYSIS:
As stated previously, in entering negotiations this year with the various employee
organizations, it was the City's goal to provide a fair and competitive salary and benefit
package to the association members while reducing certain benefits that would achieve
a long term significant cost savings to the City. The Firefighters Association was very
cooperative and innovative in achieving this goal.
The approximate total costs of the proposed adjustments for the Firefighters
Association are calculated as follows:
n
•
1996-97 1997-98
1.75% PERS pick up (10-01-96)
$106,800
$142,000
1.00% Increase (10-1-96)
81,300
81,300
2.00% Increase (3-1-97)
53,200
162,600
Longevity Increase (10-1-96)
50,000
50,000
Total Cost
291 300
35 90
The approximate total savings of the proposed adjustments for the Firefighters
Association are calculated as follows:
Holiday Pay Savings
Health insurance buyout
Reduced leave due to longevity pay
Reduced overtime due to longevity pay
Retiree Medical
Total Savings
1996-97 1997-98
$ 75,000
$ 85,000
20,000
20,000
50,000
50,000
30,000
35,000
0
0
175 000
190 00
Thus the total net first year cost is $116,300 and the total net second year cost is $245,900
for a total net two year cost of $362,200.
RECOMMENDATION:
It is recommended that the City Council approve the attached Memorandum of
Understanding between the City and the Firefighters Association which covers the
period from January 1, 1996 through December 31, 1997.
C:\WINWORD\DENNISWP\FIREMGT.DOC 12/20/96 10:22 AM
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MOU WILL BE DISTRIBUTED
WITH SUPPLEMENTAL ITEMS
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FRIDAY, JANUARY 10, 1997
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