HomeMy WebLinkAboutS28 - NB Firefighters Association MOUCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. S28
May 27, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, Assistant City Manager
949 - 644 -3002, dkiff @city.newport- beach.ca.us
SUBJECT: Labor Negotiations — New 3 -Year Memorandum of Understanding (MOU) with
the Newport Beach Firefighters Association (NBFA)
ISSUE:
Shall the City enter into a new 3 -year MOU with the Newport Beach Firefighters Association
(NBFA)?
RECOMMENDATION:
Authorize the Mayor to execute a new 3 -year Memorandum of Understanding (MOU) with the
Newport Beach Firefighters Association.
DISCUSSION:
The City Council has completed negotiations in accordance with the Myers - Milias -Brown Act
( "MMBA ") with the bargaining unit representing about 118 firefighters (including paramedics, fire
engineers, and fire captains). MMBA is the state law (California Government Code §3500 et
seq) that the City must follow regarding negotiating wages, benefits, and working conditions with
our employees. The MMBA is intended to:
• "Promote full communication between public employers and their employees by providing a
reasonable method of resolving disputes regarding wages, hours, and other terms and
conditions of employment between public employers and public employee organizations; and
to
• "Promote the improvement of personnel management and employer - employee relations
within the various public agencies in the State of California by providing a uniform basis for
recognizing the right of public employees to join organizations of their own choice and be
represented by those organizations in their employment relationships with public agencies."
The MMB Act, among other things, sets forth:
The right of city employees to organize themselves.
• The right of city employees to be represented.
• The right to form an "agency shop" (all persons working within specific classifications must be
members of the employees' organization).
• The obligation of an employer to "meet and confer" on employment matters;
• A path for mediation when necessary.
MOU with NBFA
May 27, 2008
Page 2
The contract term for the MOU for NBFA expired December 31, 2007. Highlights and changes
between that MOU and the MOU proposed for adoption on May 27, 2008 are as follows:
SUMMARY OF MAJOR MOU TERMS
Term. The MOU covers the 3 -year period of January 1, 2008 - December 31, 2010.
Salary. The proposed salary benefit within the MOU is as follows:
• 2% increase effective December 22, 2007;
• 2% increase effective June 21, 2008;
• 3.25% increase effective December 20, 2008; and
• 3.5% increase effective December 19, 2009.
This results in a salary increase of 10.75% over the 3 -year MOU period.
Special Assignment Pay. There are certain roles that firefighters are assigned to work within
temporarily that NBFA and the City believes are roles deserving of additional pay for the time
during which the firefighter serves in them ( "special assignment pay "). Special assignment pay
ceases when the individuals are no longer working in the assignment. The pays proposed for
the new MOU are shown in Chart 1, with a cap on the number of people eligible to be in the
assignment and receive the pay at any one time:
Chart f
Special Assignment Pay
Note: The current MOU has a provision whereby firefighters assigned to work the "tiller" (a tiller
is a rear steering axle) in a ladder truck receives a 5% increase in pay for the period during
which he or she in this capacity ('Tiller Pay "). This provision continues in the new MOU.
Release Time. NBFA board members, in the past, have been awarded time off with pay for
labor negotiations and for education and conferences associated with labor negotiations
( "release time "). This MOU suggests going from 288 to 400 hours per year in release time.
Flex Leave. NBFA members are part of the City's general program to award "flex leave" to
allow paid absences (including for illness, vacation, doctors appointments, etc) instead of
traditional sick leave or vacation leave. Members accrue a certain amount of hours per pay
period depending upon their tenure in the system. This MOU would change the current accrual
� 6 9
a •
e
Name of Special Assignment
Current
Proposed MOU in
# Eligible
Arson Investigation
No extra Pay
5%
6
Back round Investi Investigation
No extra Pa
2%
3
Com Uter EX ert
5%
5%
1
Radio - Mobile Data Com uter Ex ert
No extra Pay
5 °h
1
SCBAIAir Pac Experts
No extra Pay
2%
3
IMap and Preplan Expert
I No extra Pa
2%
1
Note: The current MOU has a provision whereby firefighters assigned to work the "tiller" (a tiller
is a rear steering axle) in a ladder truck receives a 5% increase in pay for the period during
which he or she in this capacity ('Tiller Pay "). This provision continues in the new MOU.
Release Time. NBFA board members, in the past, have been awarded time off with pay for
labor negotiations and for education and conferences associated with labor negotiations
( "release time "). This MOU suggests going from 288 to 400 hours per year in release time.
Flex Leave. NBFA members are part of the City's general program to award "flex leave" to
allow paid absences (including for illness, vacation, doctors appointments, etc) instead of
traditional sick leave or vacation leave. Members accrue a certain amount of hours per pay
period depending upon their tenure in the system. This MOU would change the current accrual
MOU with NBFA
May 27, 2008
Page 3
by adding an hour over each pay period (this equates to about a 0.9% increase in total
compensation for the NBFA membership) as follows in Chart 2:
Chart 2
Flex Leave
Chief Fire Officer Certification. Today, firefighters who attain certification as Chief Fire
Officers receive 1.5% more in salary. This MOU proposes raising that to 3.0% to help
emphasize the value of this certification program to the membership.
Paramedics. To encourage more firefighters to become paramedics, this MOU proposes giving
additional pay to persons entering paramedic school by bringing them into the role at "Step 3"
instead of Step 1. If the person drops out or does not complete the program, they would return
to their other salary step as if they had not entered the program.
Health Benefit & MERP Increases. The MOU proposes cafeteria plan increases of $100 (to
$874) per employee per month starting December 22, 2007; another $100 (to $974) per
employee per month starting December 22, 2008, and another $75 per employee per month (to
$1,049) starting in December 19, 2010. Medical Expense Reimbursement Program ( "MERP" —
this is the City's program to assist in covering retired employees with medical expenses)
contributions paid by the City would rise from $1.50 per month to $2.50 per month, identical to
what the City's three "miscellaneous" groups of employees received in their most recent MOU,
approved in 2007.
Other Changes. This MOU makes other changes or clarifications to:
• Sets a higher uniform amount for reporting to CalPERS;
• Clarifies the time during which an existing paramedic can seek Engineer certification;
• Formalizes a departmental procedure for "move -up" pay;
• Formalizes a departmental procedure for "acting" appointments;
• Updates language in the Telestaff system, an existing system that schedules vacations and
other scheduled time off;
• Adds "spouse's grandparents" to the relations associated with bereavement leave;
• Sets forth a clarification procedure for scheduling medical treatment for industrial injuries;
• Tuition reimbursement goes from $1,000 per fiscal year per employee today (persons must
use the program for qualified educational and training programs, and receive a certain
grade) to $1,400 /year in July 2008 and to $1,500 /year in July 2010;
• Fitness equipment allowance goes to $12,000 per year department wide from $10,000. If a
new station is constructed, the City must budget $10,000 for fitness equipment for that new
station;
MOU with NBFA
May 27, 2008
Page 4
Smoking. The occasional use of. a celebratory cigar while off -duty is an acceptable
exception to the MOU's non- smoking policy;
Bid System. The MOU commits the Chief to consider developing a "bid" system whereby
individual firefighters could pick shift, station, and unit assignments. The Chief can reject
the system if he chooses and not implement it; and
Injury while training. The MOU incorporates language from the Risk Manager regarding
eligibility for workers compensation benefits if an employee is injured while undergoing
training or educational programs.
Retirement. There is no chanqe to the retirement benefit. NBFA members currently receive a
"defined benefit" (DB) retirement plan based on a "3% at 50" Plan for the bargaining unit's safety
employees administered by the California Public Employees Retirement System (CaIPERS).
Retirement benefits are calculated using a member's years of service credit, age at retirement,
and final compensation (highest twelve month average salary).
This Agenda Item. If approved by the City Council, this agenda item would authorize the Mayor
to execute the new three -year NBFA -City MOU. City staff would make retroactive payments to
the NBFA members dating back to the MOU's starting dates and will include going - forward
costs in the FY 2008 -09 budget calculations.
Funding Availability: The total cost of this MOU is roughly 13% of "total compensation."
Funding for these proposed changes is included in the City Budget — therefore a budget
amendment is not required to accomplish the changes. Chart 3 shows an estimate of the costs
of each element of the MOU package, at least for FY 2007 -08:
Chart 3
Estimated Cost Per Year
a
r
s
s
t
Salary Increase
409,393
588,530
487,225
Health Care Increase
142,800
142,800
107,100
Add'I Flex leave
84,738
88,356
91,448
Spec Assign Pay
55,470
57,833
59,846
Fire Officer Cert Pay
84,199
88,762
91,868
MERP $2.50
17,993
18,857
19,721
Total
776,600
966,281
837,487
PM at Step 3"
9.632
10,044
10,395
'Annualized COLAs = 3% in 2008.
4.25% in 2009, and 3.5% in 2010.
"Cost for each PM that starts at Step 3 instead of Step 1.
The proposed budget for FY 2008 -09 estimates that the City will spend $17.44 million in salaries
and benefits within its Fire Operations Division ($31.5 million for all of the Fire Department's
operations, including lifeguards). The proposed budget includes the cost of the MOU's
provisions.
MOU with NBFA
May 27, 2008
Page 5
Prepared and Submitted by:
ha- l
Dave'Kiff
Assistant City Manager
Attachments: Proposed NBFA -City MOU
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH FIREFIGHTERS ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
1. The Newport Beach Firefighters Association, International Association of
Firefighters, Local 3734 ( "NBFA"), 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. NBFA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms and conditions of employment for
the period from January 1, 2008 to December 31, 2010 and this tentative
agreement has been embodied in this MOU.
3. The City acknowledges and appreciates the cooperation of NBFA during the
meet and confer process leading to the adoption of the 2008 -2010 MOU.
4. This MOU, upon approval by NBFA 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 I. —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 NBFA 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 NBFA.
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 January 1, 2008. This MOU shall
remain in full force and effect until December 31, 2010, 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.
The parties agree that, if NBFA submits preliminary requests for
changes in wages, fringe benefits and other terms and conditions of
employment earlier than 90 days prior to expiration of the MOU, the
parties will begin negotiations promptly, with the objective of
reaching an agreement by December 31, 2010.
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. Release Time
1. NBFA members shall be allowed to participate in the following
activities and receive full pay ('Release Time "):
a. Attendance at meetings, conferences, seminars or
workshops related to matters within the scope of
representation;
b. To prepare for, travel to, and attend scheduled meetings
between the City and NBFA during the meet and confer
process.
2. City grants NBFA 400 hours of Release Time per calendar year to
engage in the activities described in subsection 1(a). Unused
hours from any calendar year may be carried over to the next year
not to exceed a total City provided release time accrual of three
hundred (300) hours.
3. City grants NBFA members the right to engage in the activities
described in subsection 1(b) at any time without reduction to the
Release Time granted in subsection 2.
4. NBFA shall designate certain members as those members entitled
to release time. In no event shall any one designate be entitled to
use more than 100 hours (150 hours for the Association President
only) of Release Time (exclusive of actual time spent meeting with
F
City representatives on matters relating to the scope of
representation), within any calendar year. Designates must give
reasonable advance notice to, and obtain permission from, their
supervisor prior to use of Release Time. Requests for Release
Time shall be granted by the supervisor unless there are specific
circumstances that require the designate to remain on duty.
Designates shall, to the maximum extent feasible, receive shift
assignments compatible with participation in the meet and confer
process.
5. In addition to City — provided Release Time and Release Time
provided pursuant to subparagraph (3), NBFA members may
contribute earned paid time off to an NBFA Release Time Bank.
Members may contribute earned time only during the period from
July 1 through August 15th during any calendar year. However,
members shall not have the right to contribute time to the NBFA
Release Time bank if NBFA has accumulated more than 600 hours
of total Release Time. Any NBFA member who contributes time to
the Release Time Bank gives up any right to usage of, or payment
for, the contributed time. Contributions may be made only in six -
minute increments. Contributions shall be on forms prepared by
the City which shall then be submitted to the appropriate
department employee. City shall advise NBFA as to the balance of
hours in the Release Time Bank upon request. For purposes of
this subparagraph only, the term "time off' includes accrued flex
leave, accrued vacation leave, and accrued holiday time.
D. 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.
When the Department proposes to change any SOP departmental
rule or regulation, it will provide a copy of such change to the
Association no less than seven (7) days prior to implementation of
the proposed change. If such proposed change materially impacts
any matter within the scope of representation, then the parties
agree to meet and confer over such impact.
2. Pursuant to this MOU, the City reserves and retains all of its
inherent exclusive and non —exclusive managerial rights, powers,
3
functions and authorities ( "Management Rights ") as set forth in
Resolution No. 2001 -50.
E. 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 NBFA business, meetings, or events. All
materials posted on bulletin 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 or 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 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.
F. Dues Check -off
NBFA members shall have the right to authorize the City to deduct regular
monthly NBFA dues from their bi— weekly paycheck. The City shall deduct
payment of NBFA dues when the employee has authorized such
deduction and City shall remit all payments to NBFA in accordance with
the terms of each member's authorization.
G. Maintenance of Membership
Any employee in this Unit who has authorized association deductions on
the effective date of this Agreement, or at any time subsequent to the
effective date of this Agreement, shall continue to have such dues
deductions made by the City during the term of this Agreement, provided
that any employee in the Unit may terminate such Association dues by
submitting a signed request to cancel payroll deduction to the Human
Resources Director. This signed request shall be followed up with a
second request at a time between 30 and 45 days of the original letter.
The Association shall indemnify the City and hold it harmless against any
and all suits, claims, demands and liabilities that may arise out of or by
reason of the application or implementation of the provisions of this
section.
a
H. 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.
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.
J. 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 NBFA 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.
K. 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.
L. Definitions
For the purposes of this MOU these terms shall have the following
meanings:
The term "member" or "NBFA member" shall mean all persons
within classifications represented by NBFA.
5
2. The term "staff employee" shall mean any NBFA member who is
assigned to work an average 40 -hour workweek.
3. The term 'line employee" shall mean any NBFA 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. Salary Adiustments.
a. Effective December 22, 2007, the City shall increase base
salary for the firefighter classification by two percent (2 %)
(with increases for other classifications pursuant to the
matrix below).
b. Effective June 21, 2008, the City shall increase base salary
for the firefighter classification by two percent (2 %) (with
increases for other classifications pursuant to the matrix
above).
C. Effective December 20, 2008, the City shall increase base
salary for the firefighter classification by three and one -
quarter percent (3.25 %) (with increases for other
classifications pursuant to the matrix above).
d. Effective December 19, 2009, the City shall increase base
salary for the firefighter classification by three and one -half
percent (3.5 %) (with increases for other classifications
pursuant to the matrix above).
The adjustments to salary and total compensation described in this
Section shall maintain the salary differentials between the position
of Firefighter (benchmark position) and the other positions
represented by NBFA, as set forth below, so there is an appropriate
internal relationship among the primary classifications represented
by NBFA. Subject to the foregoing, the salaries specified below or
total compensation, as appropriate, shall be subject to the following
guaranteed adjustments:
Firefighter Series
Firefighter
Engineer
Paramedic
Line Captain
Fire Prevention Series
Fire Inspector, Non - safety
Fire Engineer /PSI
Fire Prevention Specialist, Non - safety*
Fire Engineer /PCI
Fire Prevention Specialist Plan Check,
Non- safety*
*Special Provision
Percent of
Firefighter
Top Step
N/A
112.50%
122.25%
132.00%
Percent of
Fire Inspector, Non - safety
Top Step
N/A
115%
116.5%
125%
126.5%
Effective December 22, 2007, the matrix was modified for the non -
safety members of this bargaining unit.
Staff Captains and Deputy Fire Marshal shall receive an additional
7.5% of base pay over Line Captains.
2. Special Step Increase
Firefighters who successfully complete the Department Engineer
Certification program within twelve (12) months of passing
probation will be granted a salary step increase. Firefighters
attending Paramedic School before two years of employment will
upon returning from school have 12 months to complete the
Engineer Certification program. Once engineer certification
program is successfully completed, the member will be entitled to a
salary step increase.
Overtime — Hours Worked
1. Overtime shall consist of authorized work in excess of the normal
number of hours in any scheduled work shit or work in excess of
the maximum number of hours permitted by the United States
Department of Labor regulations for up to a twenty -eight (28) day
pay period. Use of Flex Leave, Vacation Leave, Holiday Leave,
7
and Sick Leave shall be considered as hours worked for the
purposes of determining eligibility for overtime pay pursuant to the
Fair Labor Standards Act and /or Department of Labor regulations.
2. Temporary vacancies in line positions shall be selected in
accordance with Department S.O.P.
3. Qualified employees wishing to work voluntary overtime in a class
lower than their current class (downgrade) may volunteer to do so
and shall be compensated at one and one -half times the highest
hourly rate for the position as published in the City's compensation
plan. Said employees shall be selected according to the provisions
set forth in the Department's Standard Operating Procedures
related to staffing and overtime. This provision applies only to
persons wishing to downgrade to the position of Firefighter, Fire
Engineer or Firefighter /Paramedic.
4. Personnel assigned to staff assignments may request
compensatory time off in lieu of paid overtime with the approval of
the Department. Compensatory time may be granted, subject to
maximum accrual of eighty (80) hours.
C. Required Uniform
City shall pay the entire cost of providing NBFA member with each
component of the required NBFD uniform. The required NBFD uniform
includes safety shoes, badges and insignias, uniform pants, uniform shirts,
uniform jackets and liner, belts, work out shirts, work out trunks,
sweatshirt, base camp hat, baseball cap and turnout safety clothing. City
shall not be responsible for providing employee with socks, underwear, or
workout shoes, or other clothing.
The City shall report the value of the required uniform at $1719 to PERS.
The City will provide an adequate number of reserve turnouts at each
station to allow for proper turnout cleaning /decontamination. This
equipment will be used to temporarily replace an employee's personal
turnout equipment that cannot be placed in service because they are wet,
contaminated, or aged.
D. Scholastic /Certificate Achievement Pay
NBFA members are entitled to additional compensation contingent upon
scholastic achievement ( "Scholastic /Certificate Achievement Pay "). NBFA
members may apply for increases pursuant to this Section when eligible
and scholastic and /or certificate achievement pay shall be included in the
member's paycheck for the pay period immediately after approval by the
E
E.
Fire Chief. It is the responsibility of the NBFA member to apply for
Scholastic and /or 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 and /or certificate
achievement pay prior to the date the application is approved even though
the member may have been eligible prior to approval. Scholastic and /or
Certificate achievement pay is contingent upon years of service and
number of units and /or degrees received by the employee. Qualifying units
and /or degrees must be awarded by accredited community colleges, state
colleges or universities. NBFA member shall receive scholastic and /or
certificate achievement pay in accordance with the following:
Scholastic Pav
Years of
College
% of Actual Step in
Service:
SemestedUnit.
Job Class Range:
2 or more
30
1.5% /month
3 or more
60
2.5% /month
3
90
3.5% /month
4 or more
90
3.5% /month
4
120
4.5% /month
4
B.A. /B.S.
5.5% /month .
Certificate Pa
% of Actual Step in
Coursework: Job Class Range:
Successful Completion of 1.5% /month
coursework for Effective June 21, 2008
Fire Officer I or increase to 3.0% /month
Fire
Prevention Officer II
Special Assignment Pay
The following additional payments shall be made to certain NBFA
members based on assignment:
Certified members of the Hazardous Materials Response Team
shall receive special assignment pay of five percent (5 %) of base
pay per month.
2. Individuals properly trained and assigned by the Department to
perform special assignments shall be compensated as follows:
F
Assignment
Maximum Compensation
Number* (% of base pay)
Shift Fire Investigator 6 5%
Computer Expert 1 5%
Radio /MDC 1 5%
SCBA 3 2%
Background Investigator 3 2%
Map /Preplan 1 2%
Compensation shall cease when individuals are no longer
performing the assignment.
*Subject to modification by the department.
3. Should the City establish a Tactical Paramedic Assignment and /or
an Urban Search and Rescue Team, it will give notice to and, upon
request, meet and confer with the Association on those aspects of
the program which fall within the scope of representation.
4. Temporary Special Assignment Pay
Temporary Special Assignment pay will be at the rate of five
percent (5 %) above base salary, plus overtime at the rate of time
and one half, for employees who are assigned special projects
outside of or above and beyond their normal job classification. The
types and duration of these temporary assignments will remain a
management prerogative.
Committee participation such as Safety Committee, and work on
various projects such as Public Safety Day and the CERT Program
are excluded from consideration under this Agreement.
Temporary Upgrading of Employees
1. Move up Assignment
A move up assignment shall be defined as the temporary
assignment of an employee to work in a job classification which is
higher than his or her current classification. A move up employee
need not meet the minimum requirements for the position to which
they are moved up to. Employees who do meet the minimum
requirements for the �osition shall be deemed "Acting
Appointments" after their 6t consecutive shift.
If the employee is moved -up for five (5) hours or more, the move -up
compensation shall be computed as follows:
10
2.
Firefighter to Engineer
Firefighter to Paramedic
Firefighter to Captain
Engineer to Paramedic
Engineer to Captain
Paramedic to Captain
Captain to Battalion Chief
Regular rate +5%
Regular rate +22.4095% (Step C min.)
Regular rate +5%
Regular rate +8.935% (Step C min.)
Regular rate +5%
Regular rate +5%
Regular rate +9.5%
All holiday, vacation, sick leave and paid leave shall be paid at the
employee's regular rate of pay. Time accumulated working in a
move up position shall -not be applied towards the probationary
period or count as "time in rank" for the purpose of seniority.
A move up employee who completes the minimum requirements for
the position while working in the move -up classification shall be
deemed an "Acting Appointment" effective the date the minimum
qualification is met.
The following positions shall be considered for move -up
assignments:
Fire Battalion Chief
Fire Captain
Fire Paramedic
Fire Engineer
Assignment to the move up position shall be made at the sole
discretion of the Fire Chief and are limited to a maximum time
period of 360 days.
Acting Appointments
The formal and expressed assignment of an employee to perform
the significant duties and responsibilities of a higher classification
for more than six (6) consecutive shifts shall be deemed an acting
appointment. All acting appointees must satisfy the minimum
requirements for the position to which they are appointed.
Acting employees, except acting paramedics, shall be
compensated in the salary range of his /her acting classification at a
rate that is at least five (5 %) percent higher than their current rate.
Acting paramedics shall be compensated at a rate no lower than
paramedic salary classification Step 3. All holiday, vacation, sick
leave and paid leave shall be paid at the employee's new rate of
pay.
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In the event the acting employee is subsequently appointed to the
higher classification, the time accumulated while acting in the
higher classification shall be applied towards the probationary
period and count as "time in rank" for the purpose of seniority.
If an acting employee is returned to his /her former classification for
more than six (6) months, he /she will not be credited with the time
accumulated in the acting position for the purposes of probation or
as "time in rank" for the purpose of seniority.
Acting appointments shall be made at the sole discretion of the Fire
Chief and are limited to a maximum time period of 180 days.
3. Tiller Assignment
Employees temporarily upgraded to Tiller shall receive a five (5 %)
pay differential over their regular rate of pay for all time worked in
this job classification if they are assigned to work in this job
classification for a period of four (4) working hours or longer.
G. Paramedic Compensation
Employees sent to Paramedic School or working as a paramedic will be
compensated at a rate no lower than Step 3 in the paramedic salary job
class range.
In the event the employee fails, drops out of Paramedic School, is not
assigned or demotes for any reason, they will return to the salary of their
previous classification with their original time in rank plus time spent as a
paramedic. Assignment to Paramedic School shall not be construed as
assignment to position for the purposes of probation.
H. Y- Rating
Employees who are reclassified to a position with a lower maximum salary
shall be Y- rated. Y- rating shall refer to a pay rate outside of the assigned
salary range of the employee.
If the salary of the employee is greater than the maximum of the new
range, the salary of the employee shall be designated as a Y -rate and
shall not change during continuous regular service until the maximum of
the new range exceeds the salary of the employee.
If the salary of the employee is the same or less than the maximum of the
new class, the salary and merit increase eligibility date of the employee
shall not change.
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Shift Holdover
NBFA members who are held over at the conclusion of any shift shall be
compensated at the rate of one hour for each hour, or portion thereof, the
employee worked beyond the end of the shift. Any member held over
after shift shall be compensated at time and a half for all time worked
during the work period in excess of the maximum permitted under the
provisions of Section 29 USC 507(k).
J. Emergency Recall
If an employee who is not on stand -by or shift hold -over and is required to
return to work during his /her off -duty hours for actual firefighting, or similar
emergency designated by the Department Director, the employee shall
receive a minimum of four (4) hours compensation for the first hour
worked and compensation for time worked thereafter.
K. 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.
L. Court Standby Pay
NBFA 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 (4)
hours of pay for each eight hours of court standby time. NBFA 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.
SECTION 3. - LEAVES
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A. Flex Leave
1. Effective December 22, 2007, NBFA 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.
Leave Accrual Longevity Pay
Years of Cont. Svc Hours/Pay Period Increase
Line Employees
1 but less than 5
9.77
0.00%
5 but less than 9
10.69
0.00%
9 but less than 12
11.62
0.00%
12 but less than 16
12.54
0.00%
16 but less than 20
12.54
1.5%
20 but less than 25
12.54
2.5%
25 and over
12.54
3.5%
Leave
Accrual
Longevity Pay
Years of Cont. Svc
Hours/Pav Period
Increase
Staff and Non - Safety
Employees
1 but less than 5
6.97
0.00%
5 but less than 9
7.63
0.00%
9 but less than 12
8.33
0.00%
12 but less than 16
8.95
0.00%
16 but less than 20
8.95
1.5%
20 but less than 25
8.95
2.5%
25 and over
8.95
3.5%
Longevity increases specified above shall be reported to PERS as
special compensation and shall be regarded as compensation
earnable as defined in Government Code Sec. 20636 (c) (1) for
purposes of computing retirement benefits and contributions.
2. The Flex leave program shall be administered as follows:
a. NBFA members shall not accrue flex leave until continuously
employed by the Newport Beach Fire Department for a
period of six (6) months provided, however, if a member on
the flex leave program becomes sick during the first six
months of employment, the City will advance up to six (6)
months of accrual for line employees for use by the member
to recover from illness.
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In the event the City advances paid leave time and the
employee is terminated or resigns before completing six
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. NBFA members who are staff or non - safety employees shall
accrue six (6) months of flex leave and line employees shall
accrue six (6) months of flex leave immediately upon
completion of six (6) 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 six months of employment.
C. Members employed by the City prior to initiation of the flex
leave program have had the current accrued vacation time
converted to flex leave on an hour for hour basis with the
current sick leave placed in a bank to be used as provided in
the Employee Policy Manual. Members entitled to use sick
leave pursuant to Section the Employee Policy Manual and
who are absent due to illness shall have their sick leave
bank reduced by the duration of the absence unless the
member notifies appropriate department personnel that the
absence should be charged to the member's flex leave
account.
d. Subject to the provisions of Section 3(J), members shall be
entitled to accrue flex leave up to a maximum of seventy -
eight (78) times the members bi- weekly accrual rate.
Earned flex leave in excess of the maximum permitted is
currently paid bi- weekly at the members hourly rate of pay.
NBFA members may, at any time, elect to receive pay (at
the members normal hourly rate) for all accrued flex leave in
excess of seventy -two (72) hours for a line employees and
40 hours for staff employees. However, NBFA members
may not elect to buy down accrued Flex Leave below the
current threshold for payment seventy -eight (78) times the
members 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. For
the purposes of this section, Flex Leave shall include any
earned paid leave such as vacation leave, compensatory
time off, or holiday time.
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e. 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.
f. Flex Leave may be taken in four (4) hour increments.
g. Members shall be paid for all accrued flex leave at their then
current hourly rate of pay (hourly rate before incentives,
other pays, etc.) upon termination of the employment
relationship except as provided by Section 3(J).
B. Telestaff System
The City has implemented "Telestaff' which phased out the Vacation
Selection System (VSS). 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 /Holiday 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 NBFA 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." Notwithstanding, any other provision of this
MOU, the Fire Chief shall have the sole discretion to take whatever action
may be necessary to reduce overtime payments, including the temporary
reduction of staffing levels or personnel, in the event payments for
overtime out of the LEAVE COVERAGE FUND exceed 25% of the fund
during the first three months of the fiscal year, 50% of the fund during the
first six months of the fiscal year, or 75% of the fund during the first nine
months of the fiscal year.
C. Vacation /Sick Leave
1. Administration of the vacation and sick leave program for members
who have not converted to flex leave shall be in accordance with
the provisions of the Employee Policy Manual of the City of Newport
Beach. Line employees shall accrue sick leave at the rate of twelve
(12) hours per month and staff employees shall accrue sick leave at
the rate of eight (8) hours per month. Vacation Leave may be taken
in six (6) hour increments.
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NBFA members on the vacation /sick leave system shall accrue as
follows:
Years of Leave Accrual
Cont. Service Hours/Pay Period
Line Employees
Less than 5 5.54
5 but less than 9 6.47
9 but less than 13 7.39
13 but less than 17 8.31
17 but less than 21 9.23
21 but less than 25 10.16
25 and over 11.08
Years of Leave Accrual
Cont. Service Hours/Pav Period
Staff Employees
Less than 5 3.70
5 but less than 9 4.31
9 but less than 12 4.93
12 but less than 16 5.54
16 but less than 20 6.16
20 but less than 25 6.77
25 and over 7.39
Maximum vacation accrual shall be seventy -eight (78) times the
member's bi- weekly accrual rate.
2. Sick Leave Conversion
Members who, at the end of any calendar year have a sick leave
bank greater than a sum equal to eighty —six (86) times their normal
bi— weekly sick leave accrual rate and who have used six (6) or
fewer days during the calendar year, may elect to covert up to six
(6) days of sick leave to three (3) days pay or, with the approval of
the Fire Chief, three (3) days of vacation. Members shall elect to
convert to sick leave within sixty (60) days after the end of any
calendar year.
3. Within 60 days of the signing of this Memorandum of
Understanding all unit members still in the vacation /sick leave
program may, collectively, elect to convert to the flex leave
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program. Conversion terms shall be the same as those utilized
during the initial establishment of the flex leave program.
E. Holiday Time
1. Line Employees
The provisions of this subsection shall apply only to NBFA
members who are line employees during all or a portion of any
calendar year and, as to those members who are line employees
for only a portion of the year, the provisions of this subsection shall
be applicable on a pro —rata basis. NBFA members who are line
employees shall accrue holiday time at the rate of 5.54 hours per
pay period. Holiday time shall be added to the member's Flex
Leave or Vacation Leave Account on a bi— weekly basis.
Effective October 1, 1996, all Line employees were provided a one-
time opportunity to elect to convert all or any portion of their annual
holiday benefits to cash on an annual basis. This election shall be
uniform from year to year. For example, an employee electing to
convert 108 of the 144 annual benefits to cash must so convert 108
hours of earned holiday benefits each year thereafter. The election
to change holiday time to pay shall be in twelve (12) hour
increments. Holiday pay will be paid bi- weekly with the regular
check. Holiday leave conversion pay will not count in the total
compensation formula used to adjust salaries and benefits.
This holiday compensation shall be reported to PERS as special
compensation and shall be regarded as compensation earnable as
defined in Government Code Sec. 20636 (c) (6) for purposes of
computing retirement benefits and contributions.
Note: Newly hired employees shall be given a one -time option,
within 60 days of employment, to elect to receive up to one -half of
accrued holiday time as time off.
2. Staff Employees
Staff employees shall receive the following fully paid holidays:
New Years Day, Martin Luther King Birthday, Presidents Day,
Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day and the day after Thanksgiving, one —half day on
Christmas Eve, Christmas, and one —half day on New Years Eve.
In addition, Staff employees will be entitled to one floating holiday
at the member's election.
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Staff employees shall have the one -time option of accruing holiday
time as pay. Staff employees may be required to take specified
City holidays off at the sole discretion of the Fire Chief. Time will
be charged against the employee's flex (or vacation) leave bank.
F. 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 and Non -
Safety employees shall be entitled to forty (40) hours of Bereavement
Leave per calendar year per event while Line Employees shall be entitled
to ninety (90) hours of Bereavement Leave. 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
father, mother, brother, sister, wife, husband, child, father -in -law, mother -
in -law, grandparents, and spouse's grandparents. 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.
G. Catastrophic Leave
Unit members may participate in the City's Catastrophic Leave Program.
H. Jury Dutv
NBFA members who are assigned to line positions and are called to jury
duty shall be excused for each twenty -four (24) hour shift during which the
member is required to attend court and sit on a jury or await assignment.
I. Sick Leave Pay Out
Upon paid retirement, termination in good standing or death, but not
termination for cause or resignation in lieu of termination, any member or
his /her estate shall be paid, at the rate of 109% of their then current base
hourly rate of pay (hourly rate before incentives, other pays, etc.) for a
percentage of the employees accrued but unused Sick Leave computed
as follows:
Years of Sefvice: Percent of Unused Sick
Leave Paid For:
Less than 10
None
10 but less than 15
25%
15 but less than 20
37.5%
20 or more
50%
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Payment for accrued but unused Sick Leave shall be limited to the first
800 hours of accrued Sick Leave for Staff Employees and the first 1200
hours for Line Employees (for example if a Line Employee had
accumulated 1400 hours of Sick Leave and retired after 16 years he or
she would receive Terminal Sick Leave Pay in a sum equal to 109% of
their base salary per hour for 450 hours of Sick Leave — 1200 hours
multiplied by .375).
J. Flex Leave Premium Pay Account
NBFA members shall have the right to receive pay, at the rate of 109% of
their then current base salary, for any Flex Leave banked, up to a
maximum of seventy -eight (78) times their bi— weekly Flex Leave accrual
rate as of June 30, 1994 (Flex Leave Premium Pay Account). The Flex
Leave Premium Pay Account balance shall be shown on each member's
regular pay stub. The Flex Leave Premium Pay Account shall be reduced
in accordance with member purchases. Each member shall, upon
termination, resignation, retirement or other separation from service,
receive terminal pay at the rate of 109% of their then current base salary
for all accrued Flex Leave to the full extent of the remaining balance in the
Flex Leave Premium Pay Account with any remaining Flex Leave paid at
the then current base salary. The provisions of this section shall apply
only to members employed by the City of Newport Beach on or before
June 30, 1994.
K. Vacation Leave Premium Pay Account
Members who are on the traditional Vacation /Sick Leave program as of
June 30, 1994 shall be entitled to receive pay, at the rate of 109% of their
then current base salary, for any accumulated Vacation Leave up to a
maximum of fifty -two (52) times their bi— weekly Vacation Leave accrual
rate as of June 30, 1994 (Vacation Leave Premium Pay Account). The
Vacation Leave Premium Pay Account balance shall be shown on each
members regular pay stub. The Vacation Premium Pay Account balance
shall be reduced commensurate with member purchases. Each member
shall, upon termination, resignation, retirement or other separation from
service, receive terminal pay at the rate of 109% of their then current base
salary for all accrued Vacation Leave to the full extent of the remaining
balance in the Vacation Leave Premium Pay Account with any remaining
Vacation Leave paid upon termination at the then current base salary.
The provisions of this section shall apply only to members employed by
the City of Newport Beach on or before June 30, 1994.
L. Worker's Compensation Leave
Any Safety NBFA employee who has been incapacitated by reason of any
injury or illness which has been determined to have arisen out of or in the
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M
N..
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.
Scheduling of Medical Treatment for Industrial Iniuries
Time spent by an employee receiving medical attention during the
employee's normal working hours is considered hours worked and
compensable, when the City or it's representative schedules the
appointment.
When an employee is temporarily disabled due to an industrial injury, and
is unable to perform even limited duty in the workplace, all appointments,
whether arranged by the City or the employees, shall be considered as
occurring during normal working hours. The employee shall not be
entitled to any additional compensation, regardless of the employee's
regular work schedule or the type of compensation currently received,
except as otherwise required by law.
When an employee has been released to either full or limited duty and has
returned to the workplace, time spent receiving ongoing medical
treatment, such as physical therapy or follow -up visits that are not
scheduled by the City, is not considered hours worked and therefore, is
not compensable. To avoid disruption in the workplace, an employee
shall schedule such appointments to occur during off duty hours whenever
possible. In the event such scheduling is not available, employee may be
allowed to attend an appointment during their regularly scheduled duty
shift with prior supervisory approval. Regular recurring appointments
(i.e., weekly physical therapy) must be scheduled off duty.
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, Vacation Leave, Sick Leave, Bereavement Leave
and other benefits from the position previously held to the newly assigned
position provided, however, upon reassignment a line employee shall be
entitled to either receive pay for accrued holiday time or add accrued
holiday time to the member's Flex Leave or Vacation Leave account. 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.
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SECTION 4. — Fringe Benefits
A. 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. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan.
Effective December 22, 2007, the City contribution toward the
Cafeteria Plan shall be $874. In addition, 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 the
Newport Firefighter Association 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 December 22, 2008 the City's contribution towards the
Cafeteria Plan will increase to $974 (plus the minimum CalPERS
participating employer's contribution).
Effective December 19, 2009 the City's contribution towards the
Cafeteria Plan will increase to $1,049 (plus the minimum CalPERS
participating employer's contribution).
NBFA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
22
3.
U
5.
insurance coverage on an annual basis.
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.
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.
Changes in Insurance Carriers and Coverages
There shall be no change in Insurance carriers or coverages during
the term of this agreement unless the City has given prior notice to
the Association and, upon request, met and conferred.
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 the employee will be
reduced by the amount designated by the employee for
reimbursable expenses.
2. Disability Insurance
The City shall provide
disability insurance to
following provisions:
Weekly Benefit
Maximum Benefit
Minimum Benefit
Short-term (STD) and Long -term (LTD)
all regular full time employees with the
23
66.67% gross weekly wages
$10,000 /month
$50
Waiting Period 30 Calendar Days
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.
C. 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.
D. The Retirement Benefit
1. Pursuant to Section 20691 of the California Government Code, the
City shall pay to PERS, on behalf of all employees covered by this
agreement, the entire required normal "safety member" retirement
contribution, but not to exceed 9% of the compensation earnable
which PERS uses to calculate retirement contributions and benefits
and the entire normal miscellaneous member contribution, not to
exceed 7 %. In addition, the amount of this payment shall be
reported to PERS as special compensation, which is part of the
employee's compensation earnable, pursuant to the provisions of
Section 20636 (c)(4) of the California Government Code, as
amended effective July 1, 1994. This payment shall be credited to
the employee's accounts maintained by PERS in accordance with
Section 20691 of the California Government Code. NBFA
acknowledges that the City is making this payment pursuant to a
specific request of NBFA to do so, that the City has made
significant financial commitments to NBFA in this MOU in
C
consideration of the members' agreement to relinquish their
previously held "irrevocable right" to pay their own PERS
contribution and receive a corresponding salary increase, and that
the significant financial concessions to NBFA (which included
Leave Premium Pay Accounts, changes in the calculation of "hours
worked" for purposes of overtime and internal salary adjustments)
were made to avoid the potential for increased overtime
compensation approximating $450,000 if all NBFA members
exercise their irrevocable right to make their own PERS contribution
and receive a corresponding salary increase.
2. The City's contract with PERS shall also provides for:
a. A 3% @ 50 retirement formula pursuant to the provisions of
Section 21252.01 of the California Government Code.
b. The military buy -back provisions pursuant to Section
20930.3 of the California Government Code and the highest
year benefit pursuant to Section 20042.
C. The Level 4 1959 Survivors Benefits.
The City will amend its PERS contract to provide the pre- retirement option
settlement 2 death benefit (Section 21548) to be effective July 23, 2005.
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.
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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) Medical Expense Reimbursement
Program Plan (MERP).
a. For employees in Category 1, the program is structured as
follows:
Each employee will have an individual MERP account for
bookkeeping purposes, called his or her "Employee Account." This
account will 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 1st
based on status as of December 31 St 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
MERP, 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 _,percent (_ %) flex and sick. 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 is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the MERP 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
vacationtflex 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 MERP 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, 9 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
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contributions and Part C leave settlement contributions, if any, will be
in the MERP 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 MERP account at the time of
separation.
Distributions from MERP 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 MERP
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 MERP 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 CalPERS medical
plan, or any other plan with a similar employer contribution
requirement, the required City contribution will be withdrawn from the
retiree's MERP account.
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 MERP 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
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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 Cateqory 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
MERP 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 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 MERP
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, not iust City
insurance premiums.
Effective July 1, 2006, a MERP 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).
F. Tuition Reimbursement
Maximum tuition reimbursement for NBFA members shall be $1,000 per
fiscal year. Effective July 2008 maximum reimbursement shall increase to
$1,400, effective July 2010 maximum reimbursement shall increase to
$1,500.
1. College Courses
NBFA 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 graduate
courses. All claims for tuition reimbursement require the approval of
the Human Resources Director.
2. Non - College Courses
NBFA 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
rai
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 Division
Chief before submittal to Human Resources.
G. Fitness Program
All NBFA members shall participate in the Department Fitness Program as
outlined in Department SOP.
H. Physical Conditioning Equipment
1. City has acquired fitness equipment for use by members in
maintaining physical fitness. City shall budget $12,000 per year for
the acquisition, maintenance, repair, improvement, or replacement
of fitness equipment. Up to $10,000 may be carried over to a
subsequent fiscal year(s). An additional $10,000 shall be budgeted
to equip any new stations built during the term of this agreement.
2. City shall provide workout apparel for each NBFA member
assigned to fire suppression. Workout apparel shall consist of
three workout shirts and two trunks. All NBFA members on duty
between the hours of 4:00 p.m. one day and 7:30 a.m. the next,
shall wear either the approved workout apparel, or the approved
NBFD uniform.
SECTION 5. — Miscellaneous Provisions
A. Reductions in Force /Lavoffs
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.
1. Definitions
a. "Layoffs" or "Laid off' shall mean the non — disciplinary
termination of employment.
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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 the
Classification of Firefighter, seniority shall mean the
time an employee has worked within the Series from
Firefighter to Captain.
C. "Classification" shall mean one or more full time positions
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 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
recertified as 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
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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 the Employee Policy Manual.
4. Re— Employment
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-
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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 last 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. 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.
B. Schedule
The City shall have the right to designate a 14 day or 28 day work period
pursuant to Section 29 USC 507(k) (7k exemption), provided, however,
the 7k exemption shall not affect the City's obligation to pay overtime
pursuant to provisions of this MOU including the provisions of Section
1(D)1.
C. Discipline Plan
Any discipline shall be in accordance with Department SOP and the
Employee Policy Manual.
D. Fire Suppression Staffing Levels
The City shall not reduce current staffing levels for fire suppression
equipment during the term of this MOU. The City believes that
appropriate staffing levels call for three fire suppression personnel for
each engine company, four fire suppression personnel for each truck
company, and two firefighter /paramedics on each paramedic unit. PAU
staffing shall conform to the provisions in Section 5(G).
E. EMT Certification
All members are required to attend regularly scheduled departmental EMT
certification classes. Any member, except members who are paramedic
34
certified, who misses, or anticipates missing, a regularly scheduled EMT
certification class shall contact the Fire Chief or his /her designee in an
attempt to schedule a makeup session, provided, however, members may
view videotaped classes to make up for absences from a regularly
scheduled class in accordance with County and State requirements. If a
makeup session is not available within the program schedule established
by the Department, the member shall, prior to loss of certification, attend a
Departmental session or class offered by a public or private institution on
the member's own time and without compensation by the City.
F. Pre - Hospital Emergency Medical Services (EMS) System
In a prior MOU, the City and Association have met and conferred on the
City's Paramedic and Emergency Transportation System. The parties at
that time agreed as follows:
Two engine companies shall be converted to a Paramedic Assessment
Unit (PAU's. The two current paramedic units shall be converted to
Paramedic Ambulances (PAU's) and a City operated 24 -hour Basic Life
Support (BLS) ambulance shall be staffed by two sworn Firefighter EMT -
D's. The PA's shall normally transport patients requiring advanced life
support (ALS) . The BLS ambulance shall normally transport patients
requiring basic life support (BLS). Either the PA's or the BLS ambulance
may transport ALS or BLS patients based upon operational need.
G. No Smoking
All employees hired after January 1, 1999 shall not smoke or use any
tobacco products at any time while on, or off, duty. Employees shall be
required to sign an agreement consistent with this section. Violation of the
agreement may subject the employee to disciplinary action. Employees
shall have input into the agreement to be developed.
Smoking an occasional celebratory cigar (birth of a child, etc.) while off-
duty shall not be considered a violation of this section.
H. Fire Inspection Classifications
Existing flexible staffing provisions in Fire Prevention Classifications shall
remain in effect for the term of this agreement.
Exposure Log
The City maintains an exposure log system.
35
J. Grievance Procedure
Unit employees are covered by the grievance procedure contained in the
Employee Policy Manual (attached). The City and NBFA agree on the
following: (1) that "Immediate Supervisor' in Step 1 means either Captain
or Battalion Chief; (2) that Department Director in Step 3 means Fire
Chief; and (3) a meeting will be held at all steps of the process upon the
request of either party.
K. Seniority Bid System
The Newport Beach Fire Department and the Newport Beach Firefighters
Association have established a committee to develop a seniority bid
system for shift, station, and unit assignments prior to the negotiations for
this agreement.
The committee will present a proposal for a seniority bid system to the Fire
Chief no later than October 1, 2008 for implementation no later than
January 1, 2009, with bidding to commence in the prior months to
implementation.
The Fire Chief may accept the proposal, modify it or deny the proposal in
its entirety. The Fire Chief may send the proposed bid system back to the
committee with further direction, or completely abandon the committee
and proposed bid system as being unworkable during the term of the
agreement.
If the seniority bid system is approved and operational, it will be
considered a trial program until permanently implemented by the Fire
Chief.
L. Training
Employees of the Newport Beach Fire Department will be considered
within the definition of course of employment and arising out of
employment for purposes of workers compensation coverage when they
have been authorized by the Fire Chief to attend pre- approved training
that furthers the department's mission in providing fire and medical public
safety services to the community.
The Fire Chief will provide a departmental standard operating procedure
(SOP) that will address administrative procedures and a list of approved
training classes.
NBFA may provide assistance to the Chief in developing the Training
Class list and propose a class for the Chiefs consideration at any time.
The Chief may add or delete classes to the Training Class List at any time.
e�7
m
Executed this _day of May, 2008:
Jeff Boyles, NBFA President
Winokur, NBFA Vice- President
Brian McDonough, NBFA Treasurer
By:
Ty Lunde, NBFA Health /Benefits Director
CITY OF NEWPORT BEACH
m
ATTEST:
Bv:
Edward Selich, Mayor
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
Robin Clauson, City Attorney
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