HomeMy WebLinkAbout17 - Memorandum of Understanding - Newport Beach Fire Management AssociationNovember 5,1996
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
TO:
FROM:
SUBJECT:
CITY OF NEWPORT BEACH
ADMINISTRATIVE SERVICES DEPARTMEP
Resource Management Division
7
Agenda Item # 17
THE CITY COUNCIL
Dennis Danner, Administrative Services Director
MEMORANDUM OF UNDERSTANDING - NEWPORT BEACH FIRE
MANAGEMENT ASSOCIATION
DISCUSSION:
The current agreement with the Fire Management 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 Fire Management
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:
1. Compensation Adjustment:
A. Effective the first pay period of July, 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 July, 1996 survey figures.
Each of these adjustments should be approximately 1.0% of salary.
Upon ratification, the City agrees to cap the flex leave accrual schedule at the 12 but less
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. Overtime:
Effective upon ratification, all paid overtime shall be at the straight -time
rate. Concurrently, the differential between Battalion Chief and Captain
shall be increased by 1.75% (Step 1 compared to top step Captain).
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
7.45
Longevity
Continuous Service
pay period/hrs
Days per Year
Pay Increase
9 but less than 12
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 less than 20
7.93
25.77
1.00%
20 but less 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%
4. Revised Holiday Schedule:
Effective July 1, 1996, one floating holiday shall be eliminated from the
holiday accrual schedule.
5. Holiday Time:
Effective October 1, 1996, all Line employees shall receive holiday time in
pay. Holiday pay will be paid bi-weekly with the regular paycheck.
6. Tuition Reimbursement:
Effective July 1, 1996, tuition reimbursement shall be capped at $1,000 per
employee.
7. 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.
8. 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.
9. Personnel Rules:
Within 90 days of the execution of the MOU, the City will provide draft
revised personnel rules to the Association for review.
10. 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.
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 Fire Management Association was
very cooperative and innovative in achieving this goal.
The approximate total costs of the proposed adjustments for the Fire Management
Association are calculated as follows:
1.75% PERS pick up (07-01-96)
1.00% Increase (10-1-96)
1.00% Increase (3-1-97)
Longevity Increase (10-1-96)
Differential Increase (10-1-96)
Total Cost
1996-97 1997-98
$ 17,000
$ 17,000
7,500
10,000
3,000
10,000
13,000
17,000
13,000
17,000
53 500
71000
The approximate total savings of the proposed adjustments for the Fire Management
Association are calculated as follows:
Loss of one Holiday
Straight Time Overtime Pay
Health insurance buyout
Reduced Overtime due to Paid Holidays
Reduced leave due to longevity pay
Reduced overtime due to longevity pay
Tuition Reimbursement
Retiree Medical
Total Savings
1996-97 1997-98
$ 4,000
$ 4,000
19,000
24,000
6,000
7,000
6,500
6,500
13,000
17,000
3,000
4,000
500
500
0
0
52 000
63 000
Thus the total net first year cost is $1,500 and the total net second year cost is $8,000 for
a total net two year cost of $9,500.
RECOMMENDATION:
It is recommended that the City Council approve the attached Memorandum of
Understanding between the City and the Fire Management Association which covers
the period from January 1, 1996 through December 31, 1997.
C:\WINWORD\DENNISWP\FIREMGT.DOC 11/01/96 2:21 PM