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HomeMy WebLinkAboutC-2946 - MOU, Side Letters "Fire Management Association"SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this 2n day of NoVe\M16V C. 2022, by and between the City of Newport Beach ("City") and the Newport Beach Fire Management Association ("NBFMA") (collectively "Parties") with respect to the following: WHEREAS, on June 14, 2022, the City Council adopted Resolution No. 2022-39 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Insurance, City Contribution, of the MOU is amended to read as follows: 2. City Contribution Current Language: The City's contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum Ca1PERS participating employee's contribution). Amended Language: The City's monthly contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum Ca1PERS participating employer's contribution). Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,924.00 (plus the minimum Ca1PERS participating employer's contribution). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,824.00 (plus the minimum Ca1PERS participating employer's contribution). 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBFMA Side Letter Agreement Page 1 of 2 Executed this day of , 2022 FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: 5 , // Y 2'' a) Brian McDonough, ' esid FOR THE CITY OF WPORT BEACH: By: Kevin Mul• - . n, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: B ATTEST: Aaron C. Harp, City Attorney By: `' v Leilani Bro n, City Cler NBFMA Side Letter Agreement Page 2 of 2 SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this 23 day of IAutuST 2022, by and between the City of Newport Beach ("City") and the Newport Beach Fire Management Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on June 14, 2022, the City Council adopted Resolution No. 2022-39 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the Cost -of -Living and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, Subsection A, Salary, Number 2, Salary Adjustments — this MOU Period, of the MOU is amended to read as follows: Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the first day of the pay period following July 1, 2022, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the COLA. 2. Effective the first day of the pay period following July 1, 2023, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 3. Effective the first day of the pay period following July 1, 2024, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 4. Effective the first day of the pay period following July 1, 2025, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 2. Exhibit A of the MOU is replaced in its entirety with Exhibit A to this Agreement, which is attached hereto and incorporated herein by this reference. 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page Executed this 23 day of f\ OGU ST , 2022 ATTEST: By: FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: Brian McDonou h ' - side FOR THE CITY OF By: Kevin Muldoo', ayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: z EACH: 4c.--n C. Harp, City Attorney Leilani Brown, City Clerk Attachment: Exhibit A — Salary Schedule with Cost -of -Living Adjustment EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Fire Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 15, 2023 - 3% Cost -of -Living Adjustment REPRESENTED POSITIONS_ GRAD. ,_ _STEP...__, HOURLY1 Fire Battalion Chief 112 01 1 $ 52.81 12 816 $ Fire Battalion Chief 112 01 2 $ 55.45 $ 13 456 $ Fire Battalion Chief 112 01 3 $ 58.21 $ 14 126 $ Fire Battalion Chief 112 01 4 $ 61.13 $ 14 835 $ Fire Battalion Chief 112 01 5 $ 64.19 $ 15 577 $ Fire Battalion Chief 80 05 1 $ 73.94 $ 12 816 $ Fire Battalion Chief 80 05 2 $ 77.63 $ 13 456 $ Fire Battalion Chief 80 05 3 $ 81.50 $ 14,126 $ Fire Battalion Chief 80 05 4 $ 85.58 $ 14,835 $ Fire Battalion Chief 80 05 5 $ 89.87 $ 15,577 $ Fire Battalion Chief, Staff 04 1 $ 79.49 $ 13,778 $ Fire Battalion Chief, Staff 04 2 $ 83.47 $ 14,468 $ Fire Battalion Chief, Staff 04 3 $ 87.64 $ 15,191 $ Fire Battalion Chief, Staff 04 4 $ 92.02 $ 15,950 $ Fire Battalion Chief, Staff 04 5 $ 96.63 $ 16,748 $ Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. 153,789 161,467 169,517 178,015 186,924 153,788 161,467 169,517 178,016 186,924 165,332 173,612 182,292 191,397 200,981 EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Fire Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 13, 2024 - 3% Cost -of -Living Adjustment Fire Battalion Chief 112 01 1 $ 54.40 $ 13,200 $ 158,403 Fire Battalion Chief 112 01 2 $ 57.11 $ 13,859 $ 166,311 Fire Battalion Chief 112 01 3 $ 59.96 $ 14,550 $ 174,603 Fire Battalion Chief 112 01 4 $ 62.97 $ 15,280 $ 183,356 Fire Battalion Chief 112 01 5 $ 66.12 $ 16,044 $ 192,531 Fire Battalion Chief 80 05 1 $ 76.15 $ 13,200 $ 158,402 Fire Battalion Chief 80 05 2 $ 79.96 $ 13,859 $ 166,311 Fire Battalion Chief 80 05 3 $ 83.94 $ 14,550 $ 174,603 Fire Battalion Chief 80 05 4 $ 88.15 $ 15,280 $ 183,356 Fire Battalion Chief 80 05 5 $ 92.56 $ 16,044 $ 192,532 Fire Battalion Chief, Staff 04 1 $ 81.87 $ 14,191 $ 170,292 Fire Battalion Chief, Staff 04 2 $ 85.97 $ 14,902 $ 178,820 Fire Battalion Chief, Staff 04 3 $ 90.27 $ 15,647 $ 187,760 Fire Battalion Chief, Staff 04 4 $ 94.78 $ 16,428 $ 197,139 Fire Battalion Chief, Staff 04 5 $ 99.52 $ 17,251 $ 207,010 Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. Fire Battalion Chief 112 Fire Battalion Chief 112 Fire Battalion Chief 112 Fire Battalion Chief 112 Fire Battalion Chief 112 Fire Battalion Chief 80 Fire Battalion Chief 80 Fire Battalion Chief 80 Fire Battalion Chief 80 Fire Battalion Chief 80 Fire Battalion Chief, Staff Fire Battalion Chief, Staff Fire Battalion Chief, Staff Fire Battalion Chief, Staff Fire Battalion Chief, Staff EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Fire Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 12, 2025 - 3% Cost -of -Living Adjustment 01 01 01 01 01 05 05 05 05 05 04 04 04 04 04 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 56.03 58.83 61.76 64.85 68.10 78.44 82.36 86,46 90.80 95.34 84.33 88.55 92.98 97.62 102.51 13,596 14,275 14,987 15,738 16,526 13,596 14,275 14,987 15,738 16,526 14,617 15,349 16,116 16,921 17,768 Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. 163,155 171,300 179,841 188,856 198,307 163,154 171,300 179,841 188,857 198,307 175,401 184,185 193,393 203,052 213,221 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION July 1, 2022 through June 30, 2026 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. GENERAL PROVISIONS Recognition 1 Term 1 Scope 2 Bulletin Boards 2 Conclusiveness 2 Modifications 3 Savings 3 Impasse 3 Definitions 3 Section 2. COMPENSATION Salary 4 Salary Differential 4 Overtime — Hours Worked 5 Required Uniform 5 Scholastic Achievement/Certificate Pay 6 Bilingual Pay 7 Court Standby Pay 7 Compaction Adjustment 7 Section 3. LEAVES Flex Leave 7 Holiday Time 9 Bereavement Leave 9 Jury Duty 9 Family Sick Leave 10 Workers' Compensation Leave 10 Reassignment 10 Early Relief 10 Section 4. FRINGE BENEFITS Insurance 11 Additional Health Insurance Programs 12 Employee Assistance Program 13 PERS Retirement Benefits 13 Defined Contribution Plan 15 Retiree Medical Benefit 15 Deferred Compensation 19 Tuition Reimbursement 19 Annual Physical Examinations 20 Physical Conditioning Equipment/Apparel 20 Section 5. MISCELLANEOUS PROVISIONS Reductions in Force/Layoffs 20 Fire Suppression Staffing Levels 23 Staff Assignment Schedule 23 Consecutive Shifts 23 Requirement to Live Within 150 Miles of City Limits 23 Exhibit A (Represented Classifications and Salary Schedules) 25 ii MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. Term 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 July 1, 2022. This MOU shall remain in full force and effect through June 30, 2026, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The provisions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. 1 NBFMA MOU 2022-2026 C. 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. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. D. Bulletin Boards 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 NBFMA business, meetings, or events. All materials posted on bulletins boards by the NBFMA shall indicate that the NBFMA posted it. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 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 any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E-Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 2 NBFMA MOU 2022-2026 F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Upon request by the Association the parties will engage in non -binding fact finding pursuant to State law. 3 I. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40-hour workweek. 3. The term "line employee" shall mean any NBFMA 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. NBFMA MOU 2022-2026 SECTION 2. COMPENSATION A. Salary 1. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments — this MOU Period Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the first day of the pay period following July 1, 2022, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the COLA. 2. Effective the first day of the pay period following July 1, 2023, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. 3. Effective the first day of the pay period following July 1, 2024, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. 4. Effective the first day of the pay period following July 1, 2025, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. B. Salary Differential The Battalion Chief assigned as the Staff Battalion Chief shall receive an additional 7.5% of base pay over Battalion Chiefs while assigned to that position. Assignment as a Staff Battalion Chief is typically for 2 years, unless extended by the Fire Chief. Designation as a Staff Battalion Chief does not trigger a property interest in the position and removal from the position does not trigger any right of appeal. Line Battalion Chiefs who are assigned to modified or light duty assignments are not eligible for this pay. 4 NBFMA MOU 2022-2026 C. Overtime - Hours Worked 1. The City and Association agree that all unit classifications are properly exempted from the overtime provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Off -duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one -and -one-half times' the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1'/z rate and shift exchanges between two Battalion Chiefs do not qualify for overtime compensation. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (1%) 56-hour rate. The conditions are: • The Unit employee is working outside of his or her regularly scheduled hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime, members may elect to accrue compensatory time off. Compensatory time off is provided per this MOU, and not pursuant to the Fair Labor Standards Act. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. The provisions for accrual and use of compensatory time shall be provided in the Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. D. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, 5 NBFMA MOU 2022-2026 and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) the uniform allowance of $1,519 annually, paid biweekly, for each sworn classification as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as pensionable compensation to CaIPERS. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment, including safety boots and turnout gear. E. Scholastic Achievement/Certificate Pay NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. NBFMA members shall receive scholastic achievement/certificate pay in accordance with the City's evaluation and approval process for degrees and/or coursework awarded by accredited community colleges, state colleges, universities or other approved institutions as follows: 6 1. Scholastic Achievement Degree Scholastic Pay Percentage BA/BS 5.5% MA/MS/JD 7.0% 2. Certificate Pay Coursework Compensation Certified Chief Fire Officer 3.0% of base pay Certified Strike Team Leader $100 per month NBFMA MOU 2022-2026 The parties agree that to the extent permitted by law, the Scholastic Achievement/Certificate pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay. F. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive one hundred fifty ($150.00) dollars per month ($69.23 per pay period) in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Fire Chief. The parties agree that to the extent permitted by law, the bilingual pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) Bilingual Premium. G. Court Standby Pay NBFMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. H. Compaction Adjustment Effective July 1, 2017, the Battalion Chief salary range was adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. LEAVES A. Flex Leave NBFMA members shall accrue flex leave as follows. Years of Continuous Service LINE EMPLOYEES STAFF EMPLOYEES Accrual Hours/Pay Period Maximum Accrual Accrual Hours/Pay Period Maximum Accrual Less than 5 9.77 508.04 6.97 362.44 5 but less than 9 10.69 555.88 7.63 396.76 9 but less than 12 11.62 604.24 8.33 433.16 12 and over 12.54 652.08 8.95 465.40 7 NBFMA MOU 2022-2026 8 1. The Flex leave program shall be administered as follows: a. Newly hired NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months provided, however, if a member in the flex leave program becomes sick during the first three months of employment, the City will advance up to three (3) months of accrual for line employees (63.50 hours) / staff employees (45.30 hours) for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing three months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. Newly hired NBFMA members shall accrue three (3) months of flex leave [line employees (63.50 hours) / staff employees (45.30 hours)] immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. c. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay"). NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment unless, during the twelve months preceding the election, the member has taken at least ninety-six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below what each employee can accrue for fifty-two pay periods. However, in no event shall the flex leave balance be reduced below what each employee can accrue for fifty-two pay periods. d. 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. e. Members shall be paid for all accrued flex leave at their current hourly rate of pay upon termination. f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 was eliminated for all members. NBFMA MOU 2022-2026 B. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay. Holiday pay shall be paid bi-weekly with the regular check. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) and 571.1(b)(4) Holiday Pay. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex leave bank. C. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of a death or terminal illness in his/her immediate family." Staff employees shall be entitled to ) forty (40) hours of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence but no more than 90 days from the date of the death of the family member. Exceptions to the 90 day requirement may be made at the sole discretion of the Fire Chief. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, wife, husband, registered domestic partner, child, stepchild, or grandparent, and the employee's spouse/domestic partner's mother, father, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. D. Jury Duty Employees who are summoned to perform jury service shall be entitled to their regular compensation while serving; provided the fees, except mileage and subsistence allowance, if any, which they receive as jurors, are remitted to the City. If an employee calls in at night and finds out that he/she must report to jury duty the next day (and is scheduled to be working that day as part of a regular shift or on an 9 NBFMA MOU 2022-2026 overtime basis) he/she must contact his/her supervisor as soon as possible so that coverage can be arranged for his/her shift. E. Family Sick Leave Unit employees shall be entitled to use their annual leave accrual as set forth in Labor Code section 233. F. Workers' Compensation Leave The City will comply with the provisions of Labor Code section 4850 for workers' compensation claims. G. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. H. Early Relief The parties acknowledge Department of Labor regulation, 29 CFR section 553.225 that provides: "It is a common practice among employees engaged in fire protection activities to relieve employees on the previous shift prior to (between the hours of 0600 and 0800) the scheduled starting time. Such early relief time may occur pursuant to employee agreement, either expressed or implied. This practice will not have the effect of increasing the number of compensable hours of work for employees employed under section 7(k) where it is voluntary on the part of the employees and does not result, over a period of time, in their failure to receive proper compensation for all hours actually worked. On the other hand, if the practice is required by the employer, the time involved must be added to the employee's tour of duty and treated as compensable hours of work." The parties acknowledge that if there is early relief, the City does not require it. The Association agrees that it will advise the Human Resources Director in writing if at any time in the future it learns or believes that the City is requiring early relief. If that occurs, early relief will immediately end. 10 NBFMA MOU 2022-2026 SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee 11 The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. The City's contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum Ca1PERS participating employee's contribution). Unit members who do not enroll in any health care plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage, on an annual basis. Employees hired as full-time City employees prior to June 22, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired as full-time City employees on or after June 22, 2019 who elect to opt out of medical coverage offered by the City because they have provided NBFMA MOU 2022-2026 proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. If, prior to June 20, 2026, a court of competent jurisdiction or formal legal opinion determines that the City's cafeteria benefit plan is a bona fide plan such that the City's contributions towards medical premiums will not be included in the employee's regular rate of pay under the Fair Labor Standards Act, the City will increase the monthly contribution towards the Cafeteria Plan by a total of $200 over the remaining term of the agreement. The $200 will be prorated annually over the remaining term of the agreement, beginning with the first day of the month following the day it becomes bona fide. Example: If the cafeteria benefit plan becomes bona fide at the beginning of the third year of the agreement, the City will increase the monthly contribution by $100 per month in January of Year 3 and by an additional $100 per month (total $200) in January of Year 4. If the cafeteria benefit plan becomes bona fide at the beginning of the second year of the agreement, the $200 will be spread evenly over the remaining three years of the agreement, or at $67 per month in Year 2, another $67 per month in Year 3 and another $67 per month in Year 4. If the City's cafeteria benefit plan is not determined to be a bona fide plan as outlined above by a court of competent jurisdiction or formal legal opinion prior to June 30, 2026, this paragraph will become ineffective and the City's obligation to increase the cafeteria contribution by $200 will cease on June 30, 2026. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 12 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 NBFMA MOU 2022-2026 account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short -Term (STD) and Long -Term (LTD) disability insurance to all regular full time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered wages 66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 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. Employees shall pay one percent (1 %) of base salary as a post -tax deduction for this benefit. Effective the first premium payment following the City Council adoption of the MOU in Fiscal Year 2022-23, the City will no longer require unit members to pay one percent (1%) of base salary for this benefit and this Paragraph shall be deleted. 3. Life Insurance The City shall provide life insurance for all full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. PERS Retirement Benefits 13 1. Retirement Formula The City contracts with the California Public Employees' Retirement System ("CaIPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: NBFMA MOU 2022-2026 14 Tier I: Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier II: For classic members (as defined in the Public Employees' Pension Reform Act) employees first hired by the City on or after November 24, 2012, and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier III ("PEPRA"): For employees first hired by the City on or after January 1, 2013, who are new members as defined in the Public Employees' Pension Reform Act, the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average pensionable compensation during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation or compensation earnable, and will be made on a pre- tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. Tiers I and II: All members in Tier I and II shall contribute the full statutory member contribution equal to 9% of compensation earnable plus an additional 4.5% of compensation earnable of the Employer rate for a total contribution of 13.5% of compensation earnable. NBFMA MOU 2022-2026 Tier III: The normal member contribution rate for Tier III members is 50% of the total normal cost and is calculated annually for possible adjustments, as provided in the PERS valuations. Tier III unit members will contribute the full statutory member contribution. If that rate is less than 13.5% of pensionable compensation these employees will contribute an additional percentage of pensionable compensation of the Employer rateto achieve a total contribution of 13.5% of pensionable compensation. 3. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). E. Defined Contribution Plan To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement formula or 2.7% @ 57 formula, shall be eligible to participate in a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. F. 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 three categories. The benefit is structured differently for each of the categories. The categories are as follows: 15 a. Category 1 - Employees newly hired on or after January 1, 2006. NBFMA MOU 2022-2026 16 b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was Tess 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, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings Plan ("RHS", formerly the MERP plan): a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 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. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be NBFMA MOU 2022-2026 17 the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment (i.e. five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years of employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. NBFMA MOU 2022-2026 18 The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. NBFMA MOU 2022-2026 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. G. Deferred Compensation Each employee shall have a deferred compensation account set up by the City and subject to the rules of IRS Code section 457 to which s/he may make contributions. The City shall contribute to each employee's deferred compensation account each pay period as follows: 1. Effective June 22, 2019, the City shall contribute twenty-one dollars and sixty- seven cents ($21.67) per pay period to each employee's deferred compensation account. 2. Effective the first day of the pay period which includes July 1, 2020, the City shall contribute an additional twenty-one dollars and sixty-seven cents ($21.67) per pay period to each employee's deferred compensation account for a total of forty-three dollars and thirty-five cents ($43.35) per pay period to each employee's deferred compensation account. 3. Effective the first day of the pay period which includes July 1, 2021, the City shall contribute an additional twenty-one dollars and sixty-seven cents ($21.67) per pay period to each employee's deferred compensation account for a total of sixty-five dollars and two cents ($65.02) per pay period to each employee's deferred compensation account. Under federal law, there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to employees' accounts each pay period, it is the employees' responsibility to track their total contribution amount. If an employee's account contributions reach the annual 457 maximum, the City will stop making contributions for the remainder of the calendar year and will not owe the employee any additional compensation related to this section. All bargaining unit employees in paid status for the entirety of the pay period following City Council adoption of the MOU will receive a one-time lump sum deposit of $2, 000 into their deferred compensation account. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to CaIPERS. H. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses 19 NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful NBFMA MOU 2022-2026 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 NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Unit members who must stay in lodging to attend such classes, courses or seminars because of their location are required to seek single occupancy governmental rates (at GSA rates) when booking lodging for the class, course or seminar. Reimbursement for more than single occupancy governmental rates will be provided only if such rates are not available and if approved by the Fire Chief. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. I. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. J. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an "as needed" basis. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the 20 NBFMA MOU 2022-2026 extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 21 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted regular status, subject to the following: i. Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; 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 any Classification, seniority shall mean the time an employee has worked within any Classification within the Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one "Series" made up of one classification represented by the Association — Fire Battalion Chief. e. In this bargaining unit, since the Series consists of only one classification (Battalion Chief) "Bumping Rights", "Bumping" or "Bump" shall mean the right of a Battalion Chief who is subject to layoff to displace a Tess senior employee in a lower Classification which he/she has held in the Department. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures In the event the City Manager determines to reduce the number of Battalion Chiefs, the following procedures are applicable: NBFMA MOU 2022-2026 22 a. Battalion Chiefs shall be laid off in inverse order of seniority; b. A Battalion Chief shall have the right to Bump a Tess senior employee in a lower ranking Classification which he/she has held within the Department if he/she has more seniority which includes time in class as a Battalion Chief and lower classifications held within the Department. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. c. In the event two or more Battalion Chiefs are subject to layoff and have the same seniority, they shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any). 4. Re -Employment Regular employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. Re-employment lists will be valid for two (2) years. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re- employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Regular employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay Regular employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. NBFMA MOU 2022-2026 B. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. C. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, unit employees (who are all FLSA exempt) working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. D. Consecutive Shifts Members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24-hour shift. Additional consecutive shifts may be permitted with Fire Chief or designee approval, based upon exigent circumstances. E. Requirement to Live Within 150 Miles of City Limits Employees hired as full-time unit members on or after July 1, 2019 are required to live within 150 miles of the City limits. Signatures on the following page 23 NBFMA MOU 2022-2026 Executed this 14114 day of June, 2022. FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: ' 222 Brian ATTEST: By: Leil 24 h, President FOR THEY OPORT BE By: BY: ni Brown, City Clerk Kevin Muld'.n, Mayor APPROVED AS TO FORM: Charles Sakai, Special Counsel NBFMA MOU 2022-2026 EXHIBIT A NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective the pay period following July 1 (July 2, 2022) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Fire Battalion Chief, 112 Hours Fire Battalion Chief, Staff Fire Battalion Chief, 80 hours 01 1 $ 51.27 $ 12,442 $ 149,310 2 $ 53.83 $ 13,064 $ 156,764 3 $ 56.52 $ 13,715 $ 164,580 4 $ 59.35 $ 14,403 $ 172,830 5 $ 62.32 $ 15,123 $ 181,479 04 1 $ 77.17 $ 13,376 $ 160,517 2 $ 81.04 $ 14,046 $ 168,555 3 $ 85.09 $ 14,749 $ 176,982 4 $ 89.34 $ 15,485 $ 185,822 5 $ 93.81 $ 16,261 $ 195,127 05 1 $ 71.78 $ 12,442 $ 149,309 2 $ 75.37 $ 13,064 $ 156,764 3 $ 79.12 $ 13,715 $ 164,580 4 $ 83.09 $ 14,403 $ 172,831 5 $ 87.25 $ 15,123 $ 181,479 Hourly pay rates rounded to the nearest hundredths. Monthly and annual pay rates rounded to the nearest dollar. 25 NBFMA MOU 2022-2026 NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective the pay period following July 1 (July 15, 2023) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Fire Battalion Chief, 112 Hours Fire Battalion Chief, Staff Fire Battalion Chief, 80 hours 01 1 $ 52.30 $ 12,691 $ 152,296 2 $ 54.91 $ 13,325 $ 159,899 3 $ 57.65 $ 13,989 $ 167,872 4 $ 60.54 $ 14,691 $ 176,287 5 $ 63.57 $ 15,426 $ 185,109 04 1 $ 78.72 $ 13,644 $ 163,727 2 $ 82.66 $ 14,327 $ 171,927 3 $ 86.79 $ 15,043 $ 180,522 4 $ 91.12 $ 15,795 $ 189,538 5 $ 95.69 $ 16,586 $ 199,030 05 1 $ 73.22 $ 12,691 $ 152,296 2 $ 76.87 $ 13,325 $ 159,899 3 $ 80.71 $ 13,989 $ 167,871 4 $ 84.75 $ 14,691 $ 176,288 5 $ 88.99 $ 15,426 $ 185,109 Hourly pay rates rounded to the nearest hundredths. Monthly and annual pay rates rounded to the nearest dollar. 26 NBFMA MOU 2022-2026 NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective the pay period following July 1 (July 13, 2024) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Fire Battalion Chief, 112 Hours Fire Battalion Chief, Staff Fire Battalion Chief, 80 hours 01 1 $ 53.35 $ 12,945 $ 155,342 2 $ 56.01 $ 13,591 $ 163,097 3 $ 58.80 $ 14,269 $ 171,230 4 $ 61.75 $ 14,984 $ 179,813 5 $ 64.84 $ 15,734 $ 188,811 04 1 $ 80.29 $ 13,917 $ 167,002 2 $ 84.31 $ 14,614 $ 175,365 3 $ 88.53 $ 15,344 $ 184,133 4 $ 92.95 $ 16,111 $ 193,329 5 $ 97.60 $ 16,918 $ 203,010 05 1 $ 74.68 $ 12,945 $ 155,341 2 $ 78.41 $ 13,591 $ 163,097 3 $ 82.32 $ 14,269 $ 171,229 4 $ 86.45 $ 14,984 $ 179,813 5 $ 90.77 $ 15,734 $ 188,811 Hourly pay rates rounded to the nearest hundredths. Monthly and annual pay rates rounded to the nearest dollar. 27 NBFMA MOU 2022-2026 NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective the pay period following July 1 (July 12, 2025) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary_ Fire Battalion Chief, 112 Hours Fire Battalion Chief, Staff Fire Battalion Chief, 80 hours 01 1 $ 54.41 $ 13,204 $ 158,449 2 $ 57.13 $ 13,863 $ 166,359 3 $ 59.98 $ 14,554 $ 174,654 4 $ 62.98 $ 15,284 $ 183,409 5 $ 66.14 $ 16,049 $ 192,587 04 1 $ 81.90 $ 14,195 $ 170,342 2 $ 86.00 $ 14,906 $ 178,872 3 $ 90.30 $ 15,651 $ 187,815 4 $ 94.81 $ 16,433 $ 197,196 5 $ 99.55 $ 17,256 $ 207,071 05 1 $ 76.18 $ 13,204 $ 158,448 2 $ 79.98 $ 13,863 $ 166,359 3 $ 83.97 $ 14,554 $ 174,653 4 $ 88.18 $ 15,284 $ 183,410 5 $ 92.59 $ 16,049 $ 192,587 Hourly pay rates rounded to the nearest hundredths. Monthly and annual pay rates rounded to the nearest dollar. 28 NBFMA MOU 2022-2026 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION July 1, 2019 through June 30, 2022 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION July 1, 2019 through June 30, 2022 TABLE OF CONTENTS Preamble Section 1. GENERAL PROVISIONS Recognition 1 Term 1 Scope 2 Bulletin Boards 2 Conclusiveness 2 Modifications 3 Savings 3 Impasse 3 Definitions 3 Section 2. COMPENSATION Salary 4 Salary Differential 4 Overtime — Hours Worked 4 Required Uniform 5 Scholastic/Certificate Achievement Pay 6 Bilingual Pay 6 Court Standby Pay 7 Compaction Adjustment 7 Section 3. LEAVES Flex Leave 7 Holiday Time 8 Bereavement Leave 9 Jury Duty 9 Family Sick Leave 10 Worker's Compensation Leave 10 Reassignment 10 Early Relief 10 i Section 4. FRINGE BENEFITS Insurance 10 Additional Health Insurance/Programs 12 Employee Assistance Program 13 PERS Retirement Benefits 13 Defined Contribution Plan 15 Retiree Medical Benefit 15 Deferred Compensation 19 Tuition Reimbursement 20 Annual Physical Examinations 20 Physical Conditioning Equipment/Apparel 21 Section 5. MISCELLANEOUS PROVISIONS Reductions in Force/Layoffs 21 Fire Suppression Staffing Levels 23 Staff Assignment Schedule 23 Consecutive Shifts 23 Requirement to Live Within 150 Miles of City Limits 24 Exhibit A: Represented Classifications and Pay Rates 26 ii MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. Term 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 July 1, 2019. This MOU shall remain in full force and effect through June 30, 2022, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The provisions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. 1 NBFMA MOU 2019-2022 C. 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. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. D. Bulletin Boards 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 NBFMA business, meetings, or events. All materials posted on bulletins boards by the NBFMA shall indicate that the NBFMA posted it. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 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 any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E-Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 2 NBFMA MOU 2019-2022 F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Upon request by the Association the parties will engage in non -binding fact finding pursuant to State law. I. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40-hour workweek. 3. The term "line employee" shall mean any NBFMA 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. 3 NBFMA MOU 2019-2022 SECTION 2. COMPENSATION A. Salary 1. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments — this MOU Period Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the payroll period that includes July 1, 2019 there shall be a base salary increase of two percent (2%) for all represented classifications. 2. Effective the payroll period that includes July 1, 2020, there shall be a base salary increase of two percent (2%) for all represented classifications. 3. Effective the payroll period that includes July 1, 2021, there shall be a base salary increase of two percent (2%) for all represented classifications. B. Salary Differential Staff Battalion Chiefs shall receive an additional 7.5% of base pay over Line Battalion Chiefs. This does not apply to modified/light duty assignments. C. Overtime - Hours Worked 1. The City and Association agree that all unit classifications are properly exempted from the overtime provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Off -duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one -and -one-half times' the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1% rate and shift exchanges between two Battalion Chiefs do not qualify for overtime compensation. 4 NBFMA MOU 2019-2022 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (1 V2) 56-hour rate. The conditions are: • The Unit employee is working outside of his or her regularly scheduled hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime, members may elect to accrue compensatory time off. Compensatory time off is provided per this MOU, and not pursuant to the Fair Labor Standards Act. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. The provisions for accrual and use of compensatory time shall be provided in the Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. D. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) the uniform allowance for each sworn classification as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as pensionable compensation to CaIPERS. Specifically, the City shall report as compensation earned the value of provided uniforms at $1,519 annually ($58.42 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment, including safety boots and turnout gear. 5 NBFMA MOU 2019-2022 E. Scholastic/Certificate Achievement Pay NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. NBFMA member shall receive scholastic achievement pay for degrees awarded by accredited community colleges, state colleges, or universities in accordance with the following: 1. Scholastic Achievement Degree Scholastic Pay Percentage AA/AS 3.5% BA/BS 5.5% 2. Certificate Pay Coursework Compensation Certified Chief Fire Officer 3.0% of base pay Strike Team Leader $100 per month The parties agree that to the extent permitted by law, the Scholastic Achievement pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(2) Educational Incentive Pay. F. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive one hundred fifty ($150.00) dollars per month ($69.23 per pay period) in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees 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. 6 NBFMA MOU 2019-2022 The parties agree that to the extent permitted by law, the bilingual pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. G. Court Standby Pay NBFMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. H. Compaction Adjustment Effective July 1, 2017, the Battalion Chief salary range was adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. LEAVES A. Flex Leave NBFMA members shall accrue flex leave as follows. Years of Continuous Service LINE EMPLOYEES STAFF EMPLOYEES Accrual Hours/Pay Period Maximum Accrual Accrual Hours/Pay Period Maximum Accrual Less than 5 9.77 508.04 6.97 362.44 5 but less than 9 10.69 555.88 7.63 396.76 9 but less than 12 11.62 604.24 8.33 433.16 12 and over 12.54 652.08 8.95 465.40 1. The Flex leave program shall be administered as follows: a. Newly hired NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months provided, however, if a member in the flex leave program becomes sick during the first three months of employment, the City will advance up to three (3) months of accrual for line employees (63.50 hours) / staff employees (45.30 hours) for use by the member to recover from illness. 7 NBFMA MOU 2019-2022 In the event the City advances paid leave time and the employee is terminated or resigns before completing three months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. Newly hired NBFMA members shall accrue three (3) months of flex leave [line employees (63.50 hours) / staff employees (45.30 hours)] immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. c. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay"). NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment unless, during the twelve months preceding the election, the member has taken at least ninety-six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below what each employee can accrue for fifty-two pay periods. However, in no event shall the flex leave balance be reduced below what each employee can accrue for fifty-two pay periods. d. 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. e. Members shall be paid for all accrued flex leave at their current hourly rate of pay upon termination. f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 was eliminated for all members. B. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the 8 NBFMA MOU 2019-2022 rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay. Holiday pay shall be paid bi-weekly with the regular check. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex leave bank. C. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of a death or terminal illness in his/her immediate family." Staff employees shall be entitled to ) forty (40) hours of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence but no more than 90 days from the date of the death of the family member. Exceptions to the 90-day requirement may be made at the sole discretion of the Fire Chief. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, wife, husband, registered domestic partner, child, stepchild, or grandparent, and the employee's spouse/domestic partner's mother, father, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. D. Jury Duty Employees who are summoned to perform jury service shall be entitled to their regular compensation while serving; provided the fees, except mileage and subsistence allowance, if any, which they receive as jurors, are remitted to the City. If an employee calls in at night and finds out that he/she must report to jury duty the next day (and is scheduled to be working that day as part of a regular shift or on an overtime basis) he/she must contact his/her supervisor as soon as possible so that coverage can be arranged for his/her shift. 9 NBFMA MOU 2019-2022 E. Family Sick Leave Unit employees shall be entitled to use their annual leave accrual as set forth in Labor Code section 233. F. Workers' Compensation Leave The City will comply with the provisions of Labor Code section 4850 for workers' compensation claims. G. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. H. Early Relief The parties acknowledge Department of Labor regulation, 29 CFR section 553.225 that provides: "It is a common practice among employees engaged in fire protection activities to relieve employees on the previous shift prior to (between the hours of 0600 and 0800) the scheduled starting time. Such early relief time may occur pursuant to employee agreement, either expressed or implied. This practice will not have the effect of increasing the number of compensable hours of work for employees employed under section 7(k) where it is voluntary on the part of the employees and does not result, over a period of time, in their failure to receive proper compensation for all hours actually worked. On the other hand, if the practice is required by the employer, the time involved must be added to the employee's tour of duty and treated as compensable hours of work." The parties acknowledge that if there is early relief, the City does not require it. The Association agrees that it will advise the Human Resources Director in writing if at any time in the future it learns or believes that the City is requiring early relief. If that occurs, early relief will immediately end. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee 10 NBFMA MOU 2019-2022 The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay issue that includes: The City's contribution towards the Cafeteria Plan will increase by $200.00, to $1,824.00 (plus the minimum CaIPERS participating employee's contribution). Unit members who do not enroll in any health care plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage, on an annual basis. Employees hired as full-time City employees prior to June 22, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired as full-time City employees on or after June 22, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered 11 NBFMA MOU 2019-2022 California) shall receive $500.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short -Term (STD) and Long -Term (LTD) disability insurance to all regular full time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered wages 66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 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. Employees shall pay one percent (1%) of base salary as a post -tax deduction for this benefit. 12 NBFMA MOU 2019-2022 3. Life Insurance The City shall provide life insurance for all full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. PERS Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees' Retirement System ("CaIPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I: Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12- month period selected by the employee. Tier II: For classic members (as defined in the Public Employees' Pension Reform Act) employees first hired by the City on or after November 24, 2012, and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier III ("PEPRA"): For employees first hired by the City on or after January 1, 2013, who are new members as defined in the Public Employees' Pension Reform Act, the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average pensionable compensation during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). 13 NBFMA MOU 2019-2022 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation or compensation earnable, and will be made on a pre- tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. Tiers I and II: Effective June 22, 2019, all members in Tier I and II shall contribute the full statutory member contribution equal to 9% of compensation earnable plus an additional half of one percent (5%) of compensation earnable for a total of 3.5% of compensation earnable of the Employer rate for a total contribution of 12.5% of compensation earnable. Effective the pay period which includes July 1, 2020, all members in Tier I and II shall contribute the full statutory member contribution equal to 9% of compensation earnable plus an additional half of one percent (5%) of compensation earnable for a total of 4.0% of compensation earnable of the Employer rate for a total contribution of 13.0% of compensation earnable. Effective the pay period which includes July 1, 2021, all members in Tier I and 11 shall contribute the full statutory member contribution equal to 9% of pensionable compensation earnable plus an additional half of one percent (5%) of compensation earnable for a total of 4.5% of compensation earnable of the Employer rate for a total contribution of 13.5% of compensation earnable. Tier III: The normal member contribution rate for Tier III members is 50% of the total normal cost and is calculated annually for possible adjustments, as provided in the PERS valuations. Effective June 22, 2019, Tier Ill unit members will contribute the full statutory member contribution. If that rate is less than 12.5% of pensionable compensation these employees will contribute an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 12.5% of pensionable compensation. 14 NBFMA MOU 2019-2022 Effective the pay period which includes July 1, 2020, Tier 111 unit members will contribute the full statutory member contribution. If that rate is less than 13% of pensionable compensation these employees will contribute an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 13% of pensionable compensation. Effective the pay period which includes July 1, 2021, Tier 111 unit members will contribute the full statutory member contribution. If that rate is less than 13.5% of pensionable compensation these employees will contribute an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 13.5% of pensionable compensation. 3. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). E. Defined Contribution Plan To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement formula or 2.7% @ 57 formula, shall be eligible to participate in a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. F. 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 15 NBFMA MOU 2019-2022 administratively classified into one of three categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired on or after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 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, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings Plan ("RHS", formerly the MERP plan): a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 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. 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 16 NBFMA MOU 2019-2022 added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward Tong -term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment (i.e. five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years of employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and 17 NBFMA MOU 2019-2022 his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had Tess 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 Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will 18 NBFMA MOU 2019-2022 be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. G. Deferred Compensation Each employee shall have a deferred compensation account set up by the City and subject to the rules of IRS Code section 457 to which s/he may make contributions. The City shall contribute to each employee's deferred compensation account each pay period as follows: 1. Effective June 22, 2019, the City shall contribute twenty-one dollars and sixty- seven cents ($21.67) per pay period to each employee's deferred compensation account. 2. Effective the first day of the pay period which includes July 1, 2020, the City shall contribute an additional twenty-one dollars and sixty-seven cents ($21.67) per pay period to each employee's deferred compensation account for a total of forty-three dollars and thirty-five cents ($43.35) per pay period to each employee's deferred compensation account. 3. Effective the first day of the pay period which includes July 1, 2021, the City shall contribute an additional twenty-one dollars and sixty-seven cents ($21.67) per pay period to each employee's deferred compensation account for a total of sixty-five dollars and two cents ($65.02) per pay period to each employee's deferred compensation account. Under federal law, there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to employees' accounts each pay period, it is the employees' responsibility to track their total contribution amount. If an employee's account contributions reach the annual 457 maximum, the City will stop making contributions for the remainder of the calendar year and will not owe the employee any additional compensation related to this section. 19 NBFMA MOU 2019-2022 H. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 2. Non -College Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Unit members who must stay in lodging to attend such classes, courses or seminars because of their location are required to seek single occupancy governmental rates (at GSA rates) when booking lodging for the class, course or seminar. Reimbursement for more than single occupancy governmental rates will be provided only if such rates are not available and if approved by the Fire Chief. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. I. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. 20 NBFMA MOU 2019-2022 J. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an "as needed" basis. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted regular status, subject to the following: i. Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; 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 any Classification, seniority shall mean the time an employee has worked within any Classification within the Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one "Series" made up of one classification represented by the Association — Fire Battalion Chief. 21 NBFMA MOU 2019-2022 e. In this bargaining unit, since the Series consists of only one classification (Battalion Chief) "Bumping Rights", "Bumping" or "Bump" shall mean the right of a Battalion Chief who is subject to layoff to displace a less senior employee in a lower Classification which he/she has held in the Department. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures In the event the City Manager determines to reduce the number of Battalion Chiefs, the following procedures are applicable: a. Battalion Chiefs shall be laid off in inverse order of seniority; b. A Battalion Chief shall have the right to Bump a less senior employee in a lower ranking Classification which he/she has held within the Department if he/she has more seniority which includes time in class as a Battalion Chief and lower classifications held within the Department. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. c. In the event two or more Battalion Chiefs are subject to layoff and have the same seniority, they shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any). 4. Re -Employment Regular employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. Re-employment lists will be valid for two (2) years. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re- employment list shall have the right to appointment to the position, provided, he or 22 NBFMA MOU 2019-2022 she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Regular employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay Regular employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. C. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, unit employees (who are all FLSA exempt) working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. D. Consecutive Shifts Members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24-hour shift. Additional consecutive shifts may be permitted with Fire Chief or designee approval, based upon exigent circumstances. 23 NBFMA MOU 2019-2022 E. Requirement to Live Within 150 Miles of City Limits Employees hired as full-time unit members on or after July 1, 2019 are required to live within 150 miles of the City limits. Signatures on the following page 24 NBFMA MOU 2019-2022 Executed this 2 5 day of June, 2019. FOR THE NEWPORT BEACH FI - NAGEMENT ASSOCIATION: 7c ough, By'13./Z-���2% Brian McDon r esi Justin Carr, Vice -President FOR THE CITY OF NEWPT BEACH: Diane B. Dixon, Mayor By: APPROVED AS TO F,QRM: BY: ATTEST: By: Peter J.rown, Special Counsel ilfilfrk- Leilani Brown, Cityrk 25 NBFMA MOU 2019-2022 Exhibit A CITY OF NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION Revision Date: June 22, 2019 2% Cost of Living Adjustment Hourly Pay Rate 1 MIN MAX Monthly Pay Rate 2 MIN MAX Fire Battalion Chief (Line) Fire Battalion Chief (Staff) Fire Batt. Chief (Staff)+7.5% $48.32 $67.64 $72.72 $58.73 $82.22 $88.40 $11,725 $11,725 $12,605 $14,251 $14,251 $15,323 Revision Date: June 20, 2020 2% Cost of Living Adjustment Hourly Pay Rate' MIN MAX Monthly Pay Rate 2 MIN MAX Fire Battalion Chief (Line) Fire Battalion Chief (Staff) Fire Batt. Chief (Staff)+7.5% $49.28 $69.00 $74.17 $59.90 $83.86 $90.17 $11,959 $11,959 $12,857 $14,536 $14,536 $15,629 Revision Date: June 19, 2021 2% Cost of Living Adjustment Hourly Pay Rate' MIN MAX Monthly Pay Rate 2 MIN MAX Fire Battalion Chief (Line) Fire Battalion Chief (Staff) Fire Batt. Chief (Staff)+7.5% $50.27 $70.38 $75.66 $61.10 $85.54 $91.97 $12,198 $12,198 $13,114 $14,827 $14,827 $15,942 Pay rates reflect different assignments for one classification. 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to the nearest whole dollar. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATON July 1, 2018 through June 30, 2019 SECTION 1. GENERAL PROVISIONS 1 A. Recognition 1 B. Term 1 C. Scope 2 D. Bulletin Boards 2 E. Conclusiveness 2 F. Modifications 3 G. Savings 3 H. Impasse 3 I. Definitions 3 SECTION 2. COMPENSATION 4 A. Salary 4 B. Overtime - Hours Worked 4 C. Required Uniform 5 D. Scholastic/Certificate Achievement Pay 5 E. Bilingual Pay 6 F. Court Standby Pay 7 G. Compaction Adjustment 7 SECTION 3. LEAVES 7 A. Flex Leave 7 B. Holiday Time 9 C. Bereavement Leave 9 D. Jury Duty 10 E. Family Sick Leave 10 F. Workers' Compensation Leave 10 G. Reassignment 10 SECTION 4. FRINGE BENEFITS 10 A. Medical Insurance 10 B. Additional Health Insurance/Programs 11 C. Retirement Benefits 12 D. Retiree Medical Benefit 15 E. Tuition Reimbursement 18 F. Annual Physical Examinations 19 G. Physical Conditioning Equipment/Apparel 19 SECTION 5. MISCELLANEOUS PROVISIONS 19 A. Reductions in Force/Layoffs 19 B. Fire Suppression Staffing Levels 22 C. Staff Assignment Schedule 22 D. Consecutive Shifts 22 EXHIBIT A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. Term 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 July 1, 2018. This MOU shall remain in full force and effect through June 30, 2019, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The provisions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. 1 NBFMA MOU 2018-2019 C. 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. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. D. Bulletin Boards 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 NBFMA business, meetings, or events. All materials posted on bulletins boards by the NBFMA shall indicate that the NBFMA posted it. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 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 any protected class under the law or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E- Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 2 NBFMA MOU 2018-2019 F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Upon request by the Association the parties will engage in non -binding fact finding pursuant to State law. I. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40-hour workweek. 3. The term "line employee" shall mean any NBFMA 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. 3 NBFMA MOU 2018-2019 SECTION 2. COMPENSATION A. Salary 1. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments — this MOU Period There shall be no cost of living adjustments to base salary during the term of this agreement. B. Overtime - Hours Worked 1. The City and Association agree that all unit classifications are properly exempted from the overtime provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Off -duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one -and -one-half times' the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1% rate and shifts exchanges between two Battalion Chiefs do not qualify for overtime compensation. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (1'/2) 56-hour rate. The Conditions are: • The Unit employee is working outside of his or her regularly scheduled hours; • The Strike Team is operating outside of the city limits; 4 NBFMA MOU 2018-2019 • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. The provisions for accrual and use of compensatory time shall be provided in Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. C. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) the uniform allowance for each sworn classification as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as pensionable compensation to CaIPERS. Specifically, the City shall report as pensionable compensation the value of provided uniforms at $1,519 annually ($58.42 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment, including safety boots and turnout gear. D. Scholastic/Certificate Achievement Pay NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for 5 NBFMA MOU 2018-2019 Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. NBFMA member shall receive scholastic achievement pay for degrees awarded by accredited community colleges, state colleges, or universities in accordance with the following: 1. Scholastic Achievement Degree Scholastic Pay % AA/AS BA/BS 3.5% 5.5% 2. Certificate Pay Coursework Certified Chief Fire Officer Strike Team Leader Compensation 3.0% $100 per month The parties agree that to the extent permitted by law, the Scholastic Achievement pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(2) Educational Incentive Pay. E. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month ($69.23 per pay period) in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Fire Chief. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. 6 NBFMA MOU 2018-2019 F. Court Standby Pay NBFMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. G. Compaction Adjustment Effective July 1, 2017, the Battalion Chief salary range was adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. LEAVES A. Flex Leave NBFMA members shall accrue flex leave as follows. Years of Continuous Service LINE EMPLOYEES STAFF EMPLOYEES Accrual Hours/Pay Period Maximum Accrual Accrual Hours/Pay Period Maximum Accrual Less than 5 9.77 508.04 6.97 362.44 5 but less than 9 10.69 555.88 7.63 396.76 9 but less than 12 11.62 604.24 8.33 433.16 12 and over 12.54 652.08 8.95 465.40 1. The Flex leave program shall be administered as follows: a. Newly hired NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months provided, however, if a member in the flex leave program becomes sick during the first three months of employment, the City will advance up to three (3) months of accrual for line employees (63.50 hours) / staff employees (45.30 hours) for use by the member to recover from illness. 7 NBFMA MOU 2018-2019 In the event the City advances paid leave time and the employee is terminated or resigns before completing three months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. Newly hired NBFMA members shall accrue three (3) months of flex leave [line employees (63.50 hours) /staff employees (45.30 hours)] immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. c. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay"). NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment unless, during the twelve months preceding the election, the member has taken at least ninety- six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below what each employee can accrue for fifty- two pay periods. On or before December 31, 2018, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below what each employee can accrue for fifty-two pay periods. d. 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. e. Members shall be paid for all accrued flex leave at their current hourly rate of pay upon termination. 8 NBFMA MOU 2018-2019 f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 was eliminated for all members. B. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay. Holiday pay shall be paid bi-weekly with the regular check. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex leave bank. C. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of a death or terminal illness in his/her immediate family." Staff employees shall be entitled to) forty (40) hours of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence but no more than 90 days from the date of the death of the family member. Exeptions to the 90 day requirement may be made at the sole discretion of the Fire Chief. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, wife, husband, registered domestic partner, child, stepchild, or grandparent, and the employee's spouse/domestic partner's mother, father, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. 9 NBFMA MOU 2018-2019 D. Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24-hour shift during which the member is required to attend court and sit on a jury or await assignment. E. Family Sick Leave Unit employees shall be entitled to use their annual leave accrual as set forth in Labor Code section 233. F. Workers' Compensation Leave Any employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. G. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. FRINGE BENEFITS A. Medical lnsurance 1. Benefits Information Committee The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS 10 NBFMA MOU 2018-2019 participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay issue that includes: January 1, 2019, the City's contribution towards the Cafeteria Plan will increase by $200.00, to $1,824.00 (plus the minimum CaIPERS participating employee's contribution). Unit members who do not enroll in any health care plan offered by the City must provide proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage, on an annual basis. Employees electing to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive a maximum cafeteria allowance of $1, 000.00 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and 11 NBFMA MOU 2018-2019 medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Employees have a one (1.0%) percent reduction for the cost of this benefit from base salary. 3. Life Insurance The City shall provide life insurance for all full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. 4. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. C. Retirement Benefits 1. Retirement Formula 12 NBFMA MOU 2018-2019 The City contracts with the California Public Employees Retirement System ("CaIPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I: Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier II: For classic members (as defined in the Public Employees' Pension Reform Act) employees first hired by the City on or after November 24, 2012, and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier III ("PEPRA"): Employees first hired by the City on or after January 1, 2013, who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre- tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. 13 NBFMA MOU 2018-2019 Tiers I and II: Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 3% of pensionable compensation of the Employer rate, for a total contribution of 12%. Tier III: The normal member contribution rate for Tier III members is 50% of the total normal cost and is calculated annually for possible adjustments, as provided in the PERS valuations. Tier III members will contribute the full statutory member contribution, plus, if the statutory amount is below 12% an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 12%. If the member contribution for Tier 111 members is above 12%, they will not need to contribute any additional amount towards the Employer rate. 3. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). 4. To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement formula or 2.7% @ 57 formula, shall be eligible to participate in a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. 14 NBFMA MOU 2018-2019 D. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings Plan ("RHS", formerly the MERP plan): a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). 15 NBFMA MOU 2018-2019 Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment (i.e. five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the 16 NBFMA MOU 2018-2019 City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. 17 NBFMA MOU 2018-2019 c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for 18 NBFMA MOU 2018-2019 graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 2. Non -College Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an "as needed" basis. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 19 NBFMA MOU 2018-2019 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted regular status, subject to the following: i. Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; 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 any Classification, seniority shall mean the time an employee has worked within any Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one "Series" made up of the two classifications represented by the Association — Fire Battalion Chief, 80 hours (+7.5%) and Fire Line Battalion Chief 112 hours. e. "Bumping Rights", "Bumping" or "Bump" shall mean the right of an employee in a higher Classification who is subject to layoff to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become re- certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 20 NBFMA MOU 2018-2019 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority; b. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Firefighter shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. c. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any). 4. Re -Employment Regular employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. Re-employment lists will be valid for two (2) years. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the 21 NBFMA MOU 2018-2019 re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Regular employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay Regular employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. C. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, unit employees (who are all FLSA exempt) working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. D. Consecutive Shifts Members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24-hour shift. Additional consecutive shifts may be permitted with Fire Chief or designee approval, based upon exigent circumstances. Signatures on the following page 22 NBFMA MOU 2018-2019 Executed this 't' t 1 day of August, 2018. FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: V/uivi? 212 C'i� Brian McDono _ Pres•iaent By: Justin rr, Vice -President FOR THE CITY -OF NEWP• -T BEACH: By: Duffy Du '- Id, M- or APPROVED AS BY: Peter J. Brown, Special Counsel ATTEST: By: 1 rown, City Clerk 23 NBFMA MOU 2018-2019 Exhibit Newport Beach Fire Management Association Classifications and Pay Rates MOU Term: July 1, 2018 —June 30, 2019 Effective January 1, 2018 (2.75% adjustment) Fire Battalion Chief 80 Hrs (+7.5%) Fire Line Battalion Chief 112 Hrs Hourly Pay Rate Monthly Pay Rate Min Max Min Max $71.29 $86.67 $12,358 $15,022 $47.37 $57.58 $11,495 $13,972 24 NBFMA MOU 2018-2019 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBFMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from July 1, 2014 through June 30, 2018 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of this 2014-2018 MOU. 4. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. 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 July 1, 2014. This MOU shall remain in full force and effect through June 30, 2018, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The 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. 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. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. Bulletin Boards 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 NBFMA business, meetings, or events. All materials posted on bulletins 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, age, sexual orientation, 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 2 NBFMA MOU 2014 - 2018 which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion, age, sexual orientation, or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E-Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Upon request by the Association the parties will engage in non -binding fact finding pursuant to State law. I. Definitions For the purposes of this MOU these terms shall have the following meanings: 3 NBFMA MOU 2014 - 2018 1 The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments — this MOU Period Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: Effective the payroll period that includes July 1, 2015, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2016, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2017, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2018, there shall be a base salary increase of 2.75%. 4 NBFMA MOU 2014 - 2018 B. Overtime - Hours Worked 1. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Effective July 1, 2016, off -duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one -and -one-half times' the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1 % rate and shifts exchanges between two Battalion Chiefs do not qualify for overtime compensation. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (T'/2) 56-hour rate. The Conditions are: • The Unit employee is working overtime hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. Personnel must use all accrued compensatory time by time of retirement. The provisions for accrual and use of compensatory time shall be provided in Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. C. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes shoes, 5 NBFMA MOU 2014 - 2018 badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. As permissible by law, the City shall report as pensionable compensation the value of provided uniforms at $1,519 annually in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment, including safety boots and turnout gear. D. Scholastic/Certificate Achievement Pay NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. NBFMA member shall receive scholastic achievement pay for degrees awarded by accredited community colleges, state colleges, or universities in accordance with the following: 1. Scholastic Achievement Degree AA/AS BABS Scholastic Pay % 3.5% 5.5% 2. Certificate Pay Coursework Compensation Certified Chief Fire Officer 3.0% Strike Team Leader * $100 per month * Effective July 1, 2016 6 NBFMA MOU 2014 - 2018 E. Bilingual Pay 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. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. G. Compaction Adjustment Effective July 1, 2017, the Battalion Chief salary range will be adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. - LEAVES A. Flex Leave 1. NBFMA 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: Longevity Years of Accrual Accrual Pay Con't. Svc Hours/Pay Period Hours/Pay Period Increase Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 Line Employees Staff Employees 9.77 10.69 11.62 12.54 6.97 7.63 8.33 8.95 0.00% 0.00% 0.00% 0.00% 7 NBFMA MOU 2014 - 2018 16 but less than 20 20 but Tess than 25 25 and over 12.54 12.54 12.54 8.95 8.95 8.95 2. The Flex leave program shall be administered as follows: 1.5% 2.5% 3.5% a. NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months provided, however, if a member on the flex leave program becomes sick during the first three months of employment, the City will advance up to three (3) months of accrual for line employees for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing three months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. NBFMA members shall accrue three (3) months of flex leave immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. c. Members may accrue flex leave up to a maximum of fifty-two (52) times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay"). NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (52 times the member's 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. Employees, who have accrued in excess of fifty-two (52) times the member's bi-weekly accrual, shall accrue no additional time, unless through use of the time or any authorized cash payment, the accrued hours decrease to less than fifty-two (52) times the bi- weekly accrual rate. In no case shall the accrual again exceed fifty- two (52) times the bi-weekly accrual rate. 8 NBFMA MOU 2014 - 2018 d. 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. e. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 will be eliminated for all members. B. Telestaff Selection System 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 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 NBFMA 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." C. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex leave bank. 9 NBFMA MOU 2014 - 2018 D. 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 employees shall be entitled to five (5) working days of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, wife, husband, child, stepchild, or grandparent, and the employee's spouse/domestic partner's mother, father, brother, sister, child or grandparent. 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. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. E. Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. F. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. G. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. H. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided. The ratio for conversion of staff 10 NBFMA MOU 2014 - 2018 employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. - FRINGE BENEFITS A. Medical Insurance 1. Benefits Information Committee 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. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. The parties recognize that from July 1, 2014 through December 31, 2015, the City has contributed $1,274 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the pay issue that includes: January 1, 2016, the City's contribution towards the Cafeteria Plan will increase by $150.00 to $1,424.00 per month (plus the minimum Ca/PERS participating employer's contribution). January 1, 2017, the City's contribution towards the Cafeteria Plan will increase by $200.00, to $1,624.00 (plus the minimum Ca1PERS participating employee's contribution). 11 NBFMA MOU 2014 - 2018 On or before July 1, 2017, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, or other elements of healthcare services as a result of the Affordable Care Act (ACA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. Unit members who do not enroll in any health care plan offered by the City must provide evidence of health care insurance coverage and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage, on an annual basis. Current employees electing to opt -out of City provided medical coverage will be eligible to receive a maximum Cafeteria Allowance of $1,149 per month. Effective the first pay issue in January 2016, or as soon thereafter is practicable following MOU adoption, the opt -out Cafeteria Allowance will be $1,000 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and 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 12 NBFMA MOU 2014 - 2018 The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. 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. 4. 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. C. Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees Retirement System ("CaIPERS" or "PERS') to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: 13 NBFMA MOU 2014 - 2018 Tier 1 ("Legacy"): Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier iI ("Classic"): Employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula shall be 2%@50, calculated on the basis of the highest consecutive 36 month period selected by the employee. Tier 111 (`PEPRA"): Employees first hired by the City on or after January 1, 2013, who are new members, the retirement formula shall be 2.7%@57 calculated on the basis of the highest consecutive 36 month period selected by the employee. 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. Tiers I and II: Effective July 1, 2015, Tier I and 11 members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate, for a total contribution of 9.75%. Effective January 1, 2016, Tier 1 and 11 members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 1.5% of pensionable compensation of the Employer rate, for a total contribution of 10.5%. Effective January 1, 2017, Tier 1 and 11 members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, 14 NBFMA MOU 2014 - 2018 plus an additional 2.25% of pensionable compensation of the Employer rate, for a total contribution of 11.25%. Effective January 1, 2018, Tier I and 11 members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 3.0% of pensionable compensation of the Employer rate, for a total contribution of 12.0%. Tier 111: The normal member contribution rate for Tier 111 members is 50% of the total normal cost and is calculated annually for possible adjustments, as provided in the PERS valuations. For FY15-16 and FY16-17, the member contribution is 11.25% and 10.5% of pensionable compensation, respectively. Effective the pay period that includes January 1, 2017, Tier Ill members will contribute the full statutory member contribution equal to 10.5% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate for a total contribution of 11.25% of pensionable compensation. Effective the pay period that includes January 1, 2018, Tier /11 members will contribute the full statutory member contribution, plus an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 12.0%. 3. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). 4. To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement formula or 2.7% @ 57 formula, shall be eligible to participate in a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base 15 NBFMA MOU 2014 - 2018 salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. D. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2005 was Tess 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. 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) Retiree Health Savings Plan ("RHS", formerly the MERP plan): a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care 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 16 NBFMA MOU 2014 - 2018 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 31st 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 RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association 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 and Compensatory Time are 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 RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the 17 NBFMA MOU 2014 - 2018 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 vacation/flex 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 RHS 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, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account 18 NBFMA MOU 2014 - 2018 after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800.00 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 19 NBFMA MOU 2014 - 2018 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 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 just City insurance premiums. Effective July 1, 2006, a RHS 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). E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 20 NBFMA MOU 2014 - 2018 2. Non-Colleqe Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an "as needed" basis. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 21 NBFMA MOU 2014 - 2018 1 Definitions a. "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted permanent status, subject to the following: i. 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 any Classification, seniority shall mean the time an employee has worked within any Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). 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 re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another 22 NBFMA MOU 2014 - 2018 position. An employee has the right to "Bump" into only 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 law, the provisions of this Memorandum of Understanding, or City policy. 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-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 23 NBFMA MOU 2014 - 2018 employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay 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, but in no case to exceed ten (10) weeks of severance compensation. C. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. D. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, FLSA exempt employees working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. 24 NBFMA MOU 2014 - 2018 E. Consecutive Shifts Effective concurrent with this 2014-18 MOU, members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24 hour shift. A fifth consecutive shift may be permitted with Fire Chief or designee approval, based upon operational needs. Signatures on the following page 25 NBFMA MOU 2014 - 2018 Executed this ' day of January, 2016. FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: i, Jeff/Boyles, President() By: : /Z/C"2 27/ c_ n Brian McDonough, Vide -President FOR THE CITY OF NEWPO:, BEACH: ATTEST: By: By: Diane B. Dixon, eilani Brown, City Clerk APPROVED AS TO FORM: By: ayor Aaron Harp, City Attorney q111(1 CP 26 NBFMA MOU 2014 - 2018 Side Letter Agreement to the Memoranda of Understanding between the City of Newport Beach and the Newport Beach City Employees Association, the Newport Beach Employees League, the Newport Beach Firefighters Association (for non -safety employees), the Newport Beach Professional and Technical Employees Association, the Part Time Employees Association of Newport Beach, the Newport Beach Fire Management Association (for Administrative staff) as well as Unrepresented Employees In past years, the City and its employee associations have agreed to close City Hall during the winter holidays, between Christmas Eve and New Year's Day. The undersigned Associations and City have jointly agreed to close City Hall and other non -essential facilities and functions for Fiscal Year 2013/14. Beginning at noon on December 24, 2013 through January 1, 2014, City Hall and other off -site facilities will be closed to the public. City Hall and other off -site facilities will reopen on January 2, 2014. Facility closures shall be cost neutral to the City and will not result in additional paid days/hours off for employees. The City and the undersigned also agree that staff located at City Hall and other non -essential employees will only have the option to work during this period if specifically authorized or required to do so by the Department Director. Emergency Conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. For Regular full-time employees, the City Hall closure will result in a maximum of 3'/2 days that are required for employees to use flexible leave, vacation leave, administrative leave or compensatory time during the holiday closure (Thursday 12/26, Friday 12/27, Monday 12/30 and half day Tuesday 12/31). Employees on a 9/80 work schedule whose regular day off occurs during the closure will be required to use 21/4 days of flexible leave, vacation leave, administrative leave or compensatory time. 2. According to the City's Employee Policy Manual, an employee must be in paid status to receive holiday pay. Therefore, employees must either work or use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday to meet this requirement. 3. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 4. All other provisions of the Employee Policy Manual or applicable Memoranda of Understanding will remain in full force and effect. This agreement will assist in lowering the City's paid leave liability and provide savings of utilities and other maintenance costs. This agreement shall not apply to public safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Associations unaffected by the closure are not required to sign the agreement. Executed this 1 day of ((11) , 2013. Side Letter Agreement — Holiday Closure FY2013-14 Page 2 NEWPORT BEACH EMPLOYEE ASSOCIATIONS: Newport each City Employees Association Newport Beach By: By: Teresa Craig, PresiAnt Newport Beach Firefighter's Association (for Non -safety employees) Employees League Chris Auger, President) The Newport Beach Professional & Technical Employees Association By:By:13 22 7, o7 ?,rni�,, / B Brian Mcdonougl ' resident ueno, President Key & Management Group (Unrepresented) Part Time Employees Association of 1 Sa(n , evin ( New • rt Beach Fire Management Association (for Administrative staff) By: Todd Knipp, President FOR THE CITY OF NEWPORT BEACH: By: Keith Curry[Mayor Appro,Ued as to Fo Aynron Harp, City Atto by Newport Beach By: Amy M'ajrfield, President Leilani Brown, City Clerk k / / 0 ƒ $ 0 E 0 m m CO 2 \ / / To k< m 3 2 / / / k 0 'w E CO 2' % \ CO / 2 G (0 3 E E a 2 m 2 § } cc ƒ \ 0 g .t f / N o I 0 q \ q • 7 /cci • s .(1) �� o - ) o R Q 0) u -Cr 0 \ 7 0) E c p .. / / 22- b - 2ƒ% §E 0c°.o \\ o2 3E 0 $ 0 0 % U) k MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA 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, 2012 to June 30, 2014 and this tentative agreement has been embodied in this MOU. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of this 2012-2014 MOU. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. Duration of Memorandum Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be 1 NBFMA MOU 2012 - 2014 Scope considered effective as of January 1, 2012. This MOU shall remain in full force and effect until June 30, 2014, 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 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. 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 NBFMA 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. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . Bulletin Boards Space shall be provided on bulletin boards within the Fire Department at their present location for the posting of notices and bulletins relating to NBFMA business, meetings, or events. All materials posted on bulletins boards 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, age, sexual orientation, or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 2 NBFMA MOU 2012 - 2014 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, age, sexual orientation, 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. 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. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. 3 NBFMA MOU 2012 - 2014 Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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 Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. Salary Adjustments — this MOU Period a. Effective the pay period following adoption of this 2012-14 MOU, the salary range for Fire Line Battalion Chief will be increased by .5%. b. Effective the first payroll period commencing on or after January 1, 2013, there shall be a base salary increase of not less than 1.0%, nor more than 2%. The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price Index (All Urban Consumers) for the Los Angeles, Riverside, Orange County areas for the 12 consecutive months ending on November 30, 2012. If there is either no increase in the CPI or the increase is less than or equal to 1.0%, the base salary increase shall be 1.0%. If the increase is greater than 1.0%, the base salary increase shall be in the same amount, but in no event, greater than 2, 0%. 4 NBFMA MOU 2012 - 2014 c. Effective the first payroll period commencing on or after January 1, 2014, there shall be a base salary increase of not less than 1.0%, nor more than 2%. The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price Index (All Urban Consumers) for the Los Angeles, Riverside, Orange County areas for the 12 consecutive months ending on November 30, 2013. If there is either no increase in the CPI or the increase is less than 1.0%, the base salary increase shall be If there is either no increase in the CPI or the increase is less than or equal to 1.0%, the base salary increase shall be 1.0%. If the increase is greater than 1.0%, the base salary increase shall be in the same amount, but in no event, greater than 2.0%. B. Overtime - Hours Worked 1. Except as provided in Section B(2), all approved paid overtime shall be paid at the straight time rate. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. Overtime payments were decreased from time and one-half to straight time by agreement of the parties as part of a negotiation which increased the percentage spread between Battalion Chief and Fire Captain. The overtime rate shall be taken into account when comparing total compensation to benchmark positions in other agencies. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (TY2) 56-hour rate. The Conditions are: o The Unit employee is working overtime hours; o The Strike Team is operating outside of the city limits; 9 The Unit employee is on duty on the Strike Team for more than eight (8) hours; o A disaster declaration has been approved by the State or Federal government for the fire suppression action; and o The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 200 hours. Line personnel may accrue a maximum of 144 hours. Personnel must use all accrued compensatory time by time of retirement. The provisions for accrual and use of compensatory time shall be provided in Fire Department Standard Operating Procedure 7. C.203. 5 NBFMA MOU 2012 - 2014 C. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, base camp hat, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. The City will report the value of the required uniform at $1,719.00 to PERS. The City will provide an adequate number of reserve turnouts at Battalion Headquarters 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. Scholastic/Certificate Achievement Pay NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. NBFMA member shall receive scholastic achievement pay in accordance with the following: 1. Scholastic Achievement Pay Years of College % of actual step in Service: Semester/Unit: job class range 2 or more 30 1.5% 3 or more 60 2.5% 5 or more 90 3.5% 5 or more 120 4.5% 5 or more B.A./B.S. 5.5% 6 NBFMA MOU 2012 - 2014 Effective upon adoption of this 2012-2014 MOU, employees having obtained college units only will be ineligible to receive scholastic achievement pay. Employees will be eligible to receive the following Scholastic Achievement Pay: Years of Service Degree 3 or more AA/AS 5 or more BA/BS 2. Certificate Pay Coursework Completion of coursework for Certified Chief Fire Officer Bilingual Pay Scholastic Pay % 3.5% 5.5% Monthly Compensation Effective June 21, 2008 increase to 3.0% month of actual step in job class range 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. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 7 NBFMA MOU 2012 - 2014 SECTION 3. - LEAVES A. Flex Leave 1. NBFMA 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: Years of Con't. Svc Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Longevity Accrual Accrual Pay Hours/Pay Period Hours/Pay Period Increase Line Employees Staff Employees 9.77 10.69 11.62 12.54 12.54 12.54 12.54 6.97 7.63 8.33 8.95 8.95 8.95 8.95 2. The Flex leave program shall be administered as follows: 0.00% 0.00% 0.00% 0.00% 1.5% 2.5% 3.5% a. NBFMA 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. 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 members hourly rate of pay. b. NBFMA members who are staff 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 the 8 NBFMA MOU 2012 - 2014 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. Effective October 1, 2012, members may accrue flex leave up to a maximum of fifty-two (52) times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay ("Spillover Pay'). NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (52 times the member's 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. Employees, who have accrued in excess of fifty-two (52) times the member's bi-weekly accrual, shall accrue no additional time, unless through use of the time or any authorized cash payment, the accrued hours decrease to less than fifty-two (52) times the bi- weekly accrual rate. In no case shall the accrual again exceed fifty- two (52) times the bi-weekly accrual rate. 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. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Telestaff Selection 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 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 NBFMA member. Each member's overtime rate of pay shall be calculated on the basis of the member's 9 NBFMA MOU 2012 - 2014 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." C. Vacation/Sick Leave 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 Personnel Manual of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex (or vacation) leave bank. E. 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 employees shall be entitled to five (5) working days of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, mother, brother, sister, wife, husband, child, or grandparent, and the employee's spouse's mother, father, brother, sister, child or grandparent. 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. 10 NBFMA MOU 2012 - 2014 Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. Flex Leave Premium Pay Account Each member shall, upon termination, resignation, retirement or other separation from service, receive terminal pay at the rate of 100% 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. 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 100% of their final base salary for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave or 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 100% of their base salary per hour for 450 hours of Sick Leave - 1200 hours multiplied by .375). 11 NBFMA MOU 2012 - 2014 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 100% of their then current base salary, for any accumulated Vacation Leave up to a maximum of 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 100% 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. K. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. 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. 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. Release Time The Association will have an account of thirty-six (36) hours per year to be used for the purposes of educational development of the unit members in employer - employee relations. The Association shall submit a request to use the release time to the Fire Chief, and the Fire Chief may grant the request based on current operational needs. SECTION 4. - FRINGE BENEFITS 12 NBFMA MOU 2012 - 2014 A. Medical lnsurance 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. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay period beginning on or immediately or after: a January 1, 2012, the City's contribution towards the Cafeteria Plan will increase to $1,149 (plus the minimum CaIPERS participating employer's contribution.) O January 1, 2013, the City's contribution towards the Cafeteria Plan will increase to $1,174.00 (plus the minimum CaIPERS participating employee's contribution.) 9 January 1, 2014, the City's contribution towards the Cafeteria Plan will increase to $1,274.00 (plus the minimum CaIPERS participating employee's contribution.) Effective upon the ratification of this agreement, NBFMA members who do not want to enroll in any health care plan offered by the City must provide evidence of health care insurance coverage, and execute an opt out 13 NBFMA MOU 2012 - 2014 agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. Those members participating in the opt -out program shall be permitted to cash out no more than $1,149.00 monthly. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. Additional Health Insurance/Programs 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 Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days 14 NBFMA MOU 2012 - 2014 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. 4. 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. C. Retirement Benefits 1. Current Members a. The City provides the Public Employees' Retirement System retirement formula of 3% at 50. b. Effective the first payroll period following adoption of this MOU, the April 13, 2010 Supplemental Memorandum of Understanding SECTION 4 FRINGE BENEFITS shall be modified to reflect that the 3.5% payroll deduction made by all unit employees as regards funding of retirement, shall continue in said amount but shall be made pursuant to Government Code § 20691. c. Effective the first payroll period commencing on and after January 1, 2013, unit members shall pay 7% of compensation as and for the individual member's normal employee PERS contributions required to be paid to PERS. Said payment shall be made pursuant to Government Code § 20691. d. Effective the first payroll period commencing on and after July 1, 2013, unit members shall pay 9% of compensation as and for the 15 NBFMA MOU 2012 - 2014 individual member's normal employee PERS contributions required to be paid to PERS. Said payment shall be made pursuant to Government Code § 20691. The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre -retirement option settlement 2 death benefit (Section 21548). To the extent during the term of this Memorandum of Understanding, that the City pays a portion of the normal PERS contributions of members, said payments shall be reported to PERS as special compensation as is authorized by Government Code §2O636(c)(4), Payment by any unit member of the individual member's normal employee PERS contributions required to be paid by PERS, shall not be reported to PERS as special compensation as was authorized by Government Code § 20636(c)(4) or by any other authority. 4. New Hires — 2"d Tier. All employees hired into an NBFMA classification (a) from an outside agency; or (b) from the City of Newport Beach Fire Department who is a 2% at 50 member shall, following City Council adoption of this 2012-2014 Memorandum of Understanding and implementation of the necessary PERS contract amendments, be subject to the following retirement benefits. a. The 2% at 50 retirement formula with the retiree's annuity being calculated based upon the employee's highest average annual compensation eamable during any period of three consecutive years of employment during membership in CaIPERS. b. All such hires shall pay 100% of the statutorily mandated employee PERS contribution. c. Unless specifically modified herein, said newly hired employees shall be subject to other then -existing City-PERS contract provisions. d. To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled 16 NBFMA MOU 2012 - 2014 in the 2% at 50 retirement formula, shall be eligible to participate in a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51 In the event that the City in its sole judgment determines that implementation of this defined contribution plan is (or will be) invalid or otherwise unlawful, the parties shall reopen the meet and confer process only as to the issue of a replacement for the defined contribution plan, with neither party being obligated to reach agreement as to a replacement benefit 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. 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. 17 NBFMA MOU 2012 - 2014 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 31st 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 100% Flex, 0% Sick, and 0% comp time. 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 18 NBFMA MOU 2012 -2014 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 vacation/flex 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, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the 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. 19 NBFMA MOU 2012 - 2014 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS 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. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: 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 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 Category 3, the program is the same as for those in Category 2 with the following exception: 20 NBFMA MOU 2012 - 2014 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 just 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). 21 NBFMA MOU 2012 - 2014 E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. Non -College Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Division Chief before submittal to Human Resources. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. 22 NBFMA MOU 2012 - 2014 G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an "as needed" basis. Workout apparel shall consist of three workout shirts and two trunks. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. "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. For purposes of determining layoffs within any Classification, seniority shall mean the time an employee has worked within any Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary 23 NBFMA MOU 2012 - 2014 positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). "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 re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 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. 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. 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 24 NBFMA MOU 2012 - 2014 the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 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 law, the provisions of this Memorandum of Understanding, or City policy. 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-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 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, but in no case to exceed ten (10) weeks of severance compensation. 25 NBFMA MOU 2012 - 2014 Discipline Plan Employees of this Association are exempt from disciplinary leave of less than five (5) days. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member's request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks' notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member's personal/professional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, FLSA exempt employees working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. Dues Checkoff NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each member's authorization. Signatures on the following page 26 NBFMA MOU 2012 - 2014 Executed this II day of August, 2012. NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION (NBFMA) By C4 By: Chip Duncan, President, NBFMA eff Boyles, Vice rP)esident, NBFMA CITY OF NEWPORT BEACH ATTEST: By: Nancy Ga-• er, ayor Leilani Brown, City Clerk APPROVED AS TO FORM: By:-- c-'-1.--_._ Aaron Harp, City Attorney 27 NBFMA MOU 2012 - 2014 EXHIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Class Code Classification Compensation F315 Fire Line Battalion Chief Section 2 (A) (1) FXXX Staff (Training) Battalion Chief F315 + 7.5% F305 Fire Division Chief F315 + 12.5% F306 Fire Line Division Chief F315 + 12.5% 28 NBFMA MOU 2012 - 2014 AMENDMENT TO 2008-2011 SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION WHEREAS, the 2008-2011 Supplemental Memorandum of Understanding between representatives of the City of Newport Beach and the Newport Beach Fire Management Association, Section 4 FRINGE BENEFITS (D) THE RETIREMENT BENEFIT (3) provides in part that, "Effective November 6, 2010, all safety unit employees hired into the unit July 31, 2010 or later will contribute 3.5% of base pay towards retirement costs. Employees hired into the unit prior to July 31, 2010 will pay 5.0%, also effective November 6, 2010. Both of these payments will continue through December 31, 2011."; and WHEREAS, representatives of the City and the Newport Beach Fire Management Association are in the process of negotiating a successor to the 2008-2011 Memorandum of Understanding; and WHEREAS, said meet and confer process is not likely to conclude on or before December 31, 2011; NOW THEREFORE, subject to a modification to Section 4(D)(3) which will now require that all unit members will now contribute 3.5% of base pay towards retirement costs, representatives of the City and the Newport Beach Fire Management Association agree that all provisions in Section 4(D)(3) of the 2008-2011 Supplemental Memorandum of Understanding shall remain in full force and effect through and including the date upon which either the City Council adopts a Memorandum of Understanding that is a successor to the 2008-2011 MOU, or in the case of an impasse existing regarding negotiation of said successor MOU, all available and/or required impasse proceedings have been exhausted, whichever event occurs first. IT IS AGREED: By: Chip Duncan President, Newport Beach Fire Management Association City of Newpo h By: Nancy Ga dner, Mayor Date Date zit VI/ 1/ill/v Page 1 of 2 553974.2 NE020-027 I- II.12- By: Leilani Brown, City Clerk Date APP OVED AS TO FO By: Aaron Harp, City Alll ftorney (2-2_1- If Date Page 2 of 2 553974.2 NE020-027 Side Letter to the Memoranda of Understanding between the City of Newport Beach and Several Newport Beach Employee Associations as well as Unrepresented Employees Since 2009 the City and its employee associations agreed upon the closure of the City Hall complex during the Christmas and New Year's Holiday period. The Newport Beach employee associations and the unrepresented group listed below acknowledge the need for the City to reduce expenditures and the City's leave accrual liability. The undersigned Associations and City jointly agree to close the City Hall complex and other non- essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2011 through January 2, 2012). Facility closures shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that staff located at the City Hall complex and other non -essential employees will not have the option to work during this period, unless specifically requested by Department Directors and exclusively authorized by the City Manager or designee. Emergency Conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Both Christmas Eve and New Year's Eve fall on a Saturday in 2011. Per applicable Memoranda of Understanding, the City provides half -day holidays (4 hours each) for Christmas Eve and New Year's Eve, which would otherwise be observed on December 23 and December 30 respectively. Under this agreement only, the two half -day holidays will be combined into one paid 8-hour holiday and observed on Friday, December 30. In conjunction, the City Hall complex will be open a full day on Friday, December 23, 2011. 2. Christmas Day and New Year's Day fall on a Sunday in 2011. As provided for in the current Memoranda of Understanding, the holiday will be observed the following Monday. Christmas Day will be observed on December 26, 2011 and New Year's Day will be observed on January 2, 2012. This results in only 3 full days (12/27, 12/28, and 12/29) that are required for employees to use Flex Leave during holiday closure. This is a one-time exception of the existing designated holiday schedule outlined in the current Memoranda of Understanding for each Association. 3. According to the City's Employee Policy Manual, an employee must be in paid status in order to receive holiday pay. Therefore, employees must either work or use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday in order to meet this requirement. The only day employees would be eligible to take leave w/out pay and still receive holiday pay would be Wednesday, December 28. 4. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 5. Employees on a flexible schedule whose regularly scheduled day off is Friday, December 30, will take their regularly scheduled day off and bank the 8 hours of holiday pay to their Comp or Flex Leave Bank. Side Letter Agreement - Holiday Closure FY2011-12 Page 2 This agreement will help lower the liability on the City's books for leave balances and provide savings of utilities and other maintenance costs for fiscal year 2011-2012. This agreement shall not apply to Public Safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Any questions or requests for information shall be addressed to the Human Resources Department. Executed this '"I day of GLSt 2011. NEWPORT BEACH EMPLOYEE ASSOCIATIONS: City Employees' Association By: Teresa Craig, President Firefighter's Association By: -6 71i 7 Brian McDonouci$. President Fire Management Association By: C- Charles Duncan, President Key & Management Employees By: Mike Pisani Police Management Association By: Steve Rasmussen, President Approved David 'IFLr1t?, City Attorney Newport Beach Employees' League BY: 0G Chris Auger, Preside Lifeguard Magna ement Association By: /F1Brent Jacob n, President Profess'onal & Technical Employees' Assoc. By: i, President !m4-rrdt sbo eS PoliceAssociation By: A�ct„n,� David Syvoc , Pr ident FOR THE CITY OF NEWPORT BEACH: By: Ct. Da iff, City Manager Leilani Brown, City Clerk SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This Supplemental Memorandum of Understanding modifies the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association for the period of January 1, 2008 to December 31, 2010. Upon the signing of this Supplemental Memorandum, the 2008-2010 MOU is modified to incorporate these changes. SECTION 1. GENERAL PROVISIONS B. Duration of Memorandum — Amend to read: 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, 2011, 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, NBFMA will submit preliminary requests for changes in wages, fringe benefits and other terms and conditions of employment not less than 90 days prior to expiration of the MOU, and that the parties will begin negotiations promptly, with the objective of reaching an agreement by December 31, 2011. SECTION 4. FRINGE BENEFITS D. The Retirement Benefit — Amend to read: 1. Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all safety employees covered by this agreement and hired before November 23, 2010, (or the effective date of the change in the newly hired employees contribution, whichever is later) 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. For safety employees hired into the City after November 23, 2010 (or as soon thereafter as possible based on PERS approval), the City will pay 3.5% of the member contribution. Such employees will be eligible to receive the 9% the beginning of their 6th year of uninterrupted service. In addition, the Page 1 of 3 amount of the City payment of member contributions (EPMC) 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 employees' accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBFMA acknowledges that the City is making this payment pursuant to a specific request of NBFMA to do so. The City's contract with PERS shall also provide for: a. A 3% @ 50 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. b. The military service credit as public service pursuant to Section 21024 of the California Government Code and the highest year benefit pursuant to Section 20042. c. The Level 4 1959 Survivors Benefits. d. Pre -retirement option settlement 2 death benefit pursuant to Section 21548. 3. Effective November 6, 2010, all safety unit employees hired into the unit July 31, 2010 or later will contribute 3.5% of base pay towards retirement costs. Employees hired into the unit prior to July 31, 2010 will pay 5.0%, also effective November 6, 2010. Both of these payments will continue through December 31, 2011. These payments will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not affect the reporting of the 9% EPMC for employees hired before November 23, 2010 (Section 20636)(c)(4) of the California Government Code. NEW SEC. TRIAL 48/96 SCHEDULE The Fire Department has implemented a trial 48/96 schedule. The schedule may be canceled by the Department, at its discretion. Except as provided herein, the Memorandum of Understanding between the City and the Newport Beach Fire Management Association remains in full force and effect. Signatures are on the next page. Page 2 of 3 Executed this day of , 2010: NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: By: Chip Duncan, Presi By: CITY OF NEWPORT BEACH BY: Keith D. Curry, Mayor Leilani Brown, City Clerk APPROVED AS TO FORM: ttorney oyles, Nego iator Page 3 of 3 eVN Side Letter to the Memoranda of Understanding between the City of Newport Beach and the Several Newport Beach Employee Associations and Unrepresented Employee Group In 2009, the City and its Employee Associations agreed upon the closure of the Civic Center complex during the Christmas and New Year's Holiday period. To support the City's ongoing efforts to meet its fiscal, managerial and operational goals, the Newport Beach Employee Associations and Unrepresented Group representatives listed below acknowledge the need for the City to reduce expenditures and the City's liability during Fiscal Year 2010-2011. The undersigned Associations and the City jointly agree to the closure of the Civic Center complex and other non -essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2010 through December 31, 2010). Facility shutdowns, including the Civic Center complex, shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that the Civic Center complex and other non -essential employees will not have the option to work during this period, unless specifically requested by Department Directors and exclusively authorized by the City Manager, or designee. Emergency conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Due to the holidays of Christmas and New Year's Day falling on Saturday, employees will work a full day on Thursday, December 23 and roll the designated 1/2 paid holiday from December 23 to Thursday, December 30, in order to make one complete paid holiday (8 hours). This results in only 3 full days (12/27, 12/28, and 12/29) that are required for employees to take off during the holiday closure. This is a one-time exception of the existing designated holiday schedule outlined in the current Memoranda of Understanding for each Association. 2. According to the City's Employee Policy Manual, an employee must be in paid status in order to receive holiday pay. Therefore, employees must use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday in order to meet this requirement. The only day employees will be eligible to take leave without pay and still receive holiday pay will be Tuesday, December 28. 3. Employees who have completed their initial probationary period, but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 4. Employees on a flexible schedule whose regularly scheduled day off falls between December 24, 2010 and December 31, 2010 will take their regularly scheduled day off. Employees in this category will only be required to take flexible leave, vacation leave, administrative leave or compensatory time for the alternate day they are scheduled to work. This agreement will help lower the liability on the City's books for leave balances and will provide for some savings in utilities and other maintenance costs for Fiscal Year 2010-2011. This agreement shall not apply to Public Safety personnel or essential functions that operate on a 24/7 basis, regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Any questions or requests for information shall be addressed to the Human Resources Department. Signatures are on the next page. Executed this day of 2010 NEWPORT BEACH EMPLOYEE ASSOCIATIONS: CITY EMPLOYEES LEAGUE EMPLOYEES By: catp,ocLaf Teresa Craig, President By: FIREFIGHTERS ASSOCIATION LIFEGUARD MANAGEMENT By: %l1`G 7G ` /7,•, Brian McDinough, President By: Brent Jacobsen, 're dent FIRE MANAGEMENT PROFESSIONAL AND TECHNICAL By: C ✓ By: Charles Duncan, Vice - President Russell Bunim, President KEY & MANAGE ENT EMPLOYEES By: Mike Pisani POLICE MANAGEMENT By: Mark Harr(iltbn, President CITY OF NEWPORT BEACH By: L Dav Kiff, City Manager POLICE By: David Syvoc Pr= ident APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By: David R. Hunt, City At EXHIBIT A Side Letter to the Memoranda of Understanding between the City of Newport Beach and the Several Newport Beach Employees Associations as well as Unrepresented Employee Groups In the spirit of unity and to support the City's ongoing efforts to meet its fiscal, managerial, and operational goals, the Newport Beach Employees Associations and Unrepresented Group representatives listed below acknowledge the need for the City to reduce expenditures and the City's liability during the Fiscal Year 2009-2010. The City has shared its budget challenges in an open manner and is hopeful that the resolution to the problem will be a collaborative effort. To that end, the undersigned Associations and the City jointly agree to the closure, of City Hall and other non -essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2009 at 12:00 noon through and including January 1, 2010). Facility shutdowns, including City Hall, shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that City Hall and other non -essential employees will not be given the option to work during this period, unless specifically requested by Department Directors and authorized by the City Manager. Emergency conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Employees will be required to take flexible leave, vacation leave, administrative leave or compensatory time for the hours that they are scheduled to work from December 26, 2 009 through December 31, 2009. Scheduled paid holidays designated in existing Memoranda of Understanding (MOU) and authorized for unrepresented employee groups will not be affected. 2. Employees in their initial probationary period may choose to be advanced the leave time from their flexible leave bank for each day they are scheduled to work. 3. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 4. Employees on a flexible schedule whose regularly scheduled day off falls between December 25, 2009 and January 1, 2010 would take their regularly scheduled day off. Employees in this category would only be required to take flexible leave, vacation leave, administrative leave or compensatory time for the alternate day they are scheduled to work. The goal of this current furlough is to lower the liability on the books for leaves taken, result in savings of utilities and other maintenance costs for fiscal year 2009/2010. This agreement shall not apply to Public Safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Signatures are on the next page. Executed this day of , 2009 NEWPORT BEACH EMPLOYEE ASSOCIATIONS: CITY EMPLOYEES By: -•=4— Teresa Craig, Presi FIREFIGHTERS ASSOCIATION 7 (10 By: RS�l Chad Ponegalek, President FIREgc%A,tNAGEMENT Z`� NT''li By: Dave Mais, President KEY &ANAGEMENT EMPLOYEESSO By: Susan Giangrande or Mike Pisani CITY OF NEWPORT BEACH: By: DaJe.Kiff, City Man er 0 LEAGUE P OYEES ' By: Dusti Burnside. resident LIFEGUARD MANAGEMENT Y^` By: rent Jaj'bsen, President PROFESSIONAL AND TECHNICAL Zoe By: /`d.�� �/l/✓ Michael Wojciechowski, President POLICE EMPLOYEES Zb's By: �i David Syvock, r sident POLICE MANAGEMENT 2s1 Z By: om Gazsi, President C- ?114-ft MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA 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 NBFMA during the meet and confer process leading to the adoption of the 2005-2007 MOU and this 2008-2010 MOU. 4. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. 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. 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. 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 NBFMA 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, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. 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 NBFMA business, meetings, or events. All materials posted on bulletins 2 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. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. 3 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. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed below. Classification Percent of Battalion Chief Top Step Fire Line Battalion Chief N/A Fire Division Chief 112.5% Fire Deputy Chief 118% Fire Marshal 112.5% 4 2. Salary Adjustments a. Effective December 22, 2007, the City shall increase base salary for the Battalion Chief classification by two percent (2%) (with increases for other classifications pursuant to the matrix below). Effective June 21, 2008, the City shall increase base salary for the Battalion Chief 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 Battalion Chief 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 Battalion Chief classification by three and one-half percent (3.5%) (with increases for other classifications pursuant to the matrix above). B. Overtime - Hours Worked 1. Except as provided in Section B(2), all approved paid overtime shall be paid at the straight time rate. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. Overtime payments were decreased from time and one-half to straight time by agreement of the parties as part of a negotiation which increased the percentage spread between Battalion Chief and Fire Captain. The overtime rate shall be taken into account when comparing total compensation to benchmark positions in other agencies. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (T%) 56-hour rate. The Conditions are: • The Unit employee is working overtime hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and 5 • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 200 hours. Line personnel may accrue a maximum of 144 hours. Personnel must use all accrued compensatory time by time of retirement. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, base camp hat, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. The City will report the value of the required uniform at $1,719.00 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 NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. NBFMA member shall receive scholastic achievement pay in accordance with the following: 6 1. Scholastic Achievement Pay Years of College % of actual step in Service: Semester/Unit: lob class range 2 or more 30 1.5% 3 or more 60 2.5% 5 or more 90 3.5% 5 or more 120 4.5% 5 or more B.A./B.S. 5.5% 2. Certificate Pay Coursework Completion of coursework for Certified Chief Fire Officer E. Bilingual Pay Monthly Compensation Effective June 2, 2008 increase to 3.0% month of actual step in job class range 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. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 7 SECTION 3. - LEAVES A. Flex Leave 1. Effective December 22, 2007, NBFMA 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: Longevity Years of Accrual Accrual Pay Con't. Svc Hours/Pav Period Hours/Pay Period Increase Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Line Employees Staff Employees 9.77 10.69 11.62 12.54 12.54 12.54 12.54 6.97 7.63 8.33 8.95 8.95 8.95 8.95 2. The Flex leave program shall be administered as follows: 0.00% 0.00% 0.00% 0.00% 1.5% 2.5% 3.5% a. NBFMA 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. 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. NBFMA members who are staff 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 8 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 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 2(1), prior to the effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi- weekly at the member's hourly rate of pay. NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (78 times the member's 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. 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. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Telestaff Selection 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 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 NBFMA 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 9 of leave" for all members shall be identified in the budget as the "LEAVE COVERAGE FUND." C. Vacation/Sick Leave 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 Personnel Manual of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. D. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex (or vacation) leave bank. E. 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 employees shall be entitled to five (5) working days of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee's father, mother, brother, sister, wife, husband, child, or grandparent, and the employee's spouse's mother, father, brother, sister, child or grandparent. 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. 10 F. Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. G. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. H. Flex Leave Premium Pay Account On request NBFMA 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 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. 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 final base salary for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 11 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave or 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. 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 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. K. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. L. 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. 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. 12 K. Release Time The Association will have an account of thirty-six (36) hours per year to be used for the purposes of educational development of the unit members in employer - employee relations. The Association shall submit a request to use the release time to the Fire Chief, and the Fire Chief may grant the request based on current operational needs. SECTION 4. - FRINGE BENEFITS A. Medical 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. City Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below.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 Beach Fire Management 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, 2007 the City's contribution towards the Cafeteria Plan will increase to $874 (plus the minimum CaIPERS participating employer's contribution). 13 Effective December 22, 2008 the City's contribution towards the Cafeteria Plan will increase to $974 (plus the minimum CaIPERS participating employer's contribution). Effective December 19, 2009 the City's contribution towards the Cafeteria Plan will increase to $1,049 (plus the minimum CaIPERS participating employer's contribution). Effective upon the ratification of this agreement, NBFMA members who do not want to enroll in any health care plan offered by the City must provide evidence of health care insurance coverage, and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: 14 Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $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. 4. 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. C. Retirement Benefits 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. 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 15 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. NBFMA acknowledges that the City is making this payment pursuant to a specific request of NBFMA to do so. 2. The City's contract with PERS shall also provide 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 Benefit. d. The City has amended its PERS contract to provide the pre - retirement option settlement 2 death benefit (Section 21548) to be effective July 23, 2005. D. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. 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. 16 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 3151 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. 17 The Association has decided to participate in Part C contributions at the level of 100% Flex, 0% Sick, and 0% comp time. 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 vacation/flex 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, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The 18 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS 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. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: 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 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. 19 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 Category 3 the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their 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 just 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. 20 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). E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA 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 NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 2. Non -College Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. 21 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. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member. Workout apparel shall consist of three workout shirts and two trunks. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted 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; 22 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. For purposes of determining layoffs within any Classification, seniority shall mean the time an employee has worked within any Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). 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 re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 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; 23 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 Personnel Resolution. 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-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 24 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay 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. Discipline Plan Employees of this Association are exempt from disciplinary leave of less than five (5) days. C. Fire Suppression Staffing Levels Move -up and move -down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. D. Staff Assignment Schedule As a matter of past practice, staff employees have worked various schedules including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past practice, been required to attend meetings or training sessions on days off by switching their normal day off and have not received compensation. When the parties have agreed not to alter any rights that members may have as a result of any past practice, NBFMA members shall select, in writing, one of the preceding schedules of the schedule option selected. The staff member shall be entitled to work that schedule unless that work schedule would significantly interfere with the ability of the member to perform his/her required duties. All NBFMA members assigned to work a forty hour work week shall have the option to work any of the following schedules: - Five eight hour days, Monday through Friday. - Four ten hour days. - Nine eighty work schedule. E. Dues Checkoff NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct 25 payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each member's authorization. Executed this (-day of January, 2009 NEWPORT BEAC,bi'FIRE/IANAGEMENT ASSOCIATION (NBFMA) By: By: Paul D. Matheis, President, NBFMA Dave K. Mais, Vice -President, NBFMA CITY OF NEWPORT B By: Edward Selich, Mayor ATTEST: By: Leilani Brown, Cit',�/Clerk APPROVED AS TO FORM: B David Hunt, City Attorney EXHIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Class Code Classification Compensation F315 Fire Line Battalion Chief Section 2 (a) (i) F305 Fire Division Chief F315 + 12.5% F310 Fire Deputy Chief F315 + 18 % F320 Fire Marshal F315 + 12.5% 27 r- • SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This Supplemental Memorandum of Understanding (SMOU) modifies the Memorandum of Understanding (MOU) between the City of Newport Beach and the Newport Beach Fire Management Association for the term commencing January 1, 2005 and concluding December 31, 2007. SECTION 4 — Fringe Benefits, Subsection D. Retiree Health Benefits Program is amended to read as follows 2. Effective December 24, 2005 iii. Part C contributions (leave settlement as determined by Association): The Association has determined that the level of contribution for all employees it represents will be 100% of sick and 0% of flex leave. Any future changes are subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. The computation of the cash equivalent for leave hours to be included in the MERP will be the same as the computation used when leave is "cashed out" for other reasons. However, individual employees must not have the option of receiving compensation for the value of the same leave hours in the form of cash. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City would have the cash equivalent of 50% of whatever balance is in his or her leave account added to the MERP, on a pre-tax basis.. The remaining 50% would be paid in cash as taxable income. Again, individual employees would not have the option to deviate from this breakout. If the Association decides to participate in Part C contributions, at any level, this same level of participation is mandatory for any conversion of leave to cash by its members, with the exception of "spillover" amounts above the maximum accumulation balance. No such spillover payments will be included in Part C contributions. Use of leave for time off purposes is not constrained by this prohibition. 1 Sick leave balances may also be included in the MERP, 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 vacation/flex leave participation, and thresholds must be separately identified by the Association. All other provisions of the MOU remain in effect. Executed this day of , 2007. NEWPORT BEAFIRE M ' AGEMENT ASSOCIATION By: l CITY OF.NEWPOR EACH By: Mayor APPROVED AS TO FORM: c City Attorney 2 • • MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA 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, 2005 to December 31, 2007 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation. of NBFMA during the meet and confer process leading to the adoption of the 2005-2007 MOU. 4. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. 1 • i 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, 2005. This MOU shall remain in full force and effect until December 31, 2007, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The 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. 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 NBFMA 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, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. 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 NBFMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material 2 • • 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. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. 3 • H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. Definitions For the purposes of this MOU these terms shall have the following meanings: The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed below. Classification Percent of Battalion Chief Top Step Fire Line Battalion Chief N/A Fire Division Chief 112.5% Fire Deputy Chief 118% Fire Marshal 112.5% 4 • • 2. Salary Adjustments a. Effective December 25, 2004, the City shall increase base salary for the Battalion Chief classification by two (2%) percent (with increases for other classifications pursuant to the matrix above). b. Effective June 25, 2005, the City shall increase base salary for the Battalion Chief classification by one (1%) percent (with increases for other classifications pursuant to the matrix above). c. Effective June 24, 2006, the City shall increase base salary for the Battalion Chief classification by three (3%) percent (with increases for other classifications pursuant to the matrix above). d. Effective June 23, 2007, the City shall increase base salary for the Battalion Chief classification by two (2%) percent with increases for other classifications pursuant to the matrix above). e. Special Adjustment Effective the pay period beginning December 24, 2005 (concurrent with the implementation of the revised retiree medical benefit as set forth in Section 4.D.2) base salaries shall be increased by 1%. B. Overtime - Hours Worked 1. All approved paid overtime shall be paid at the straight time rate. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. Overtime payments were decreased from time and one-half to straight time by agreement of the parties as part of a negotiation which increased the percentage spread between Battalion Chief and Fire Captain. The overtime rate shall be taken into account when comparing total compensation to benchmark positions in other agencies. 2. Compensatory Time In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 140 hours. Line personnel may accrue a maximum of 144 hours. Personnel must use all accrued compensatory time by time of retirement. 5 • • C. Required Uniform City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, base camp hat, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. The City will report the value of the required uniform at $1,369.00 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 NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. NBFMA member shall receive scholastic achievement pay in accordance with the following: 1. Scholastic Achievement Pay Years of College % of actual step in Service: Semester/Unit: job class range 2 or more 30 1.5% 3 or more 60 2.5% 5 or more 90 3.5% 5 or more 120 4.5% 5 or more B.A./B.S. 5.5% 6 • 2. Certificate Pay Coursework Monthly Compensation Completion of coursework for 1.5% of actual step in job class range Certified Chief Fire Officer E. Bilingual Pay 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. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. - LEAVES A. Flex Leave 1. Effective December 25, 2004, NBFMA members hired on or after October 1, 1997 shall (prospectively) accrue flex leave at the same rate as members hired prior to October 1, 1997. NBFMA 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: 7 Years of Con't. Svc Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Accrual Hours/Pav Period Line Employees 8.77 9.69 10.62 12.00 12.00 12.00 12.00 Longevity Accrual Pay Hours/Pav Period Increase Staff Employees 6.26 6.92 7.58 8.57 8.57 8.57 8.57 2. The Flex leave program shall be administered as follows: 0.00% 0.00% 0.00% 0.00% 1.5% 2.5% 3.5% a. NBFMA 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. 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. NBFMA members who are staff 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 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 8 • • the absence should be charged to the member's flex leave account. d. Subject to the provisions of Section 2(1), prior to the effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi- weekly at the member's hourly rate of pay. NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (78 times the member's 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. 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. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Vacation Selection System The City has implemented a vacation selection system (VSS) which phased out mandatory scheduling for vacation relief in favor of leave coverage by paying overtime to other members occupying the same position. The City commits to maintain VSS 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 VSS. The amount to be budgeted shall be calculated by computing the Vacation/Flex leave 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 NBFMA 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." 9 • • C. Vacation/Sick Leave 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 Personnel Manual of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. D. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis: NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 2. Staff Employees Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex (or vacation) leave bank. E. 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 employees shall be entitled to five (5) working days of Bereavement Leave per calendar year while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per occurrence. 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, and 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. 10 • M F. Jun/ Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. G. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. H. Flex Leave Premium Pay Account On request NBFMA 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 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 members 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. 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 final base salary for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% 11 • • Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave or 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. 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 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. K. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. L. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned toa 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. 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. 12 • • SECTION 4. - FRINGE BENEFITS A. Medical lnsurance 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. City Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below.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 Beach Fire Management 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 June 25, 2005 the City's • contribution towards the Cafeteria Plan will increase to $674 (plus the minimum CaIPERS participating employer's contribution). Effective December 24, 2005 the City's contribution towards the Cafeteria Plan will increase to $724 (plus the minimum CaIPERS participating employer's contribution). Effective December 23, 2006 the City's contribution towards the Cafeteria Plan will increase to $774 (plus the minimum CaIPERS participating employer's contribution). Effective upon the ratification of this agreement, NBFMA members who do not want to enroll in any health care plan offered by the. City must provide evidence of health care insurance coverage, and execute an opt out 13 • • agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $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 19 • • 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. 4. 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. C. Retirement Benefits 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. 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. NBFMA acknowledges that the City is making this payment pursuant to a specific request of NBFMA to do so. 2. The City's contract with PERS shall also provide for: a. A 3% @ 55 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. 15 c. The Level 4 1959 Survivors Benefit. 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. e. The City will further amend its PERS contract to provide for the 3% @ 50 retirement formula to be in effect no later than December 31, 2007. D. Retiree Health Benefits Program 1. Prior to December 24, 2005 An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the CalPERS medical insurance plan and the mandatory minimum of $16 per month employer contribution to said plan on behalf of the annuitant. The City has implemented a $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Fire Management Association. In accordance with existing agreements, the City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums.- The employee's current share of the retirement contribution in accordance with the formulas set forth above shall be 44.07 per month. Subsequent contribution levels shall be set annually, in accordance with the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide the NBFMA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBFMA prior to any increases in employee deduction levels. The parties agree that any increase will take effect as soon as possible after January 1. b. In order to accumulate funds to meet the potential unfounded liability in retiree medical insurance premium payments as 16 projected by the City's actuary and in addition to the contribution in (a) above; each NBFMA unit employee will contribute $10 per month and the City shall contribute $20 per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBFMA mutually agree to end the funding on behalf of NBFMA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. The funds for the unfunded liability account shall be kept in an interest bearing account and may only be used to pay for unfounded retiree medical insurance premiums not covered by the funds collected under above. In the event the retiree medical insurance program described herein is discontinued, NBFMA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBFMA on the distribution of said funds back to active (not retired/full-time) City employees in the NBFMA unit. The City will provide NBFMA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. 2. Effective December 24, 2005 a. Overview A new Defined Contribution Plan will be established to set aside funds for employee medical expenses during retirement. This plan will replace the existing Defined Benefit Plan ("old plan"), which will be phased out. The plan will be a Medical Expense Reimbursement Plan ("MERP") funded through an Integral Part Trust (IPT). b. Structure 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 retirement. 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 17 • • taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. i. Part A contributions (mandatory employee): 1 % of Salary. ii. Part B contributions (employer for employees fully converting to new plan): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31s of the prior year). Part C contributions (leave settlement as determined by Association): The Association has determined that the level of contribution for all employees it represents will be 100% of sick leave. Any future changes to this level are subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. The computation of the cash equivalent for leave hours to be included in the MERP will be the same as the computation used when leave is "cashed out" for other reasons. However, individual employees must not have the option of receiving compensation for the value of the same leave hours in the form of cash. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City would have the cash equivalent of 50% of whatever balance is in his or her leave account added to the MERP, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Again, individual employees would not have the option to deviate from this breakout. If the Association decides to participate in Part C contributions, at any level, its members will not have the right to voluntarily convert leave to cash for one full year prior to retirement, other than "spillover" of amounts above the maximum accumulation balance. However, taking leave for time off purposes would not be constrained, 18 • Sick leave balances may also be included in the MERP, 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 vacation/flex 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 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 monthly. Part C deposits, if any, will be made at the time of employment termination. 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 retirement. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. An employee who leaves City employment within the first five years will not be entitled to any Part B contributions. Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after retirement, 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 19 • • 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 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS 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. c. Employee Participation New Employees Participation in the new plan is mandatory from the onset of employment. New employees will make no contributions to the old plan. ii. Conversion Threshold for Current Employees Members whose age plus years of service equal 45 or less at the time of implementation must convert to the new plan. Those with age plus years of service of 46 or more have the option of fully converting or remaining in the old plan with modified participation in the new plan. iii. Current Employees Fully Converting to New Plan 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 IPT accounts that equates to $100 per month for every month they contributed to the current plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 20 • • Employees in this category will make no further contributions to the existing plan, and will no longer participate in it. The parties agree that this one time payment satisfies the requirements in paragraph D1.b. of Section 4 (Fringe Benefits) regarding an accounting and potential distribution of contributions upon discontinuation of the previous version of the Retiree Medical Program. iv. Current Employees Remaining on Old Plan Employees in this category will contribute a flat $100 per month to the old plan for the duration of their employment. The maximum benefit provided by the old plan at retirement is $4800.00 per year, accruing at the current rate of $400.00 per month. City share of each retiree's cost may be used for anything authorized for the IPT program, rather than just for Insurance Premiums for one of the City plans. There is no cash out option for these funds. Employees remaining on the old plan will also participate in the IPT program, with Part A contributions being mandatory; no Part B contributions; and Part C contributions if applicable. Employees in this category will also receive an additional one- time City contribution of $75 per month for every month they contributed to the old plan prior to the date of implementation of the new program, up to a maximum of 15 years (180 months). This contribution will be made to the IPT account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. Retroactivity Limited retroactivity is provided for employees who retired from the City during the period covered by the contract in which this new program is implemented, but before the program is implemented. For those employees who retired under the old program during this period, the provision for increased flexibility in the use of the $4800.00 maximum (accruing at $400 per month) benefit will apply. In addition, a. MERP account will be opened for each employee in this category, and a contribution of $75 per month for each month of prior contribution to the old plan will be deposited by the City. 21 No other provisions of the new program are applicable to employees in this category, and no provisions of the program are applicable to any other existing retirees. e. Administration A vendor will be selected by the City to administer the MERP. 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 will have the authority to determine investment options that will be available through the plan. f. Value of Benefit For all purposes, the MERP shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,000 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 2. Non -College Courses NBFMA members attending job -related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred 22 • percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job -related courses and seminars will be considered pre -authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Division Chief before submittal to Human Resources. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member. Workout apparel shall consist of three workout shirts and two trunks. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. 23 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. For purposes of determining layoffs within any Classification, seniority shall mean the time an employee has worked within any Series. 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 re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 29 • 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. 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 Personnel Resolution. 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-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 25 reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Human Resources Director. 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pav 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. Discipline Plan Employees of this Association are exempt from disciplinary leave of less than five (5) days. C. Fire Suppression Staffing Levels Move -up coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. D. Staff Assignment Schedule As a matter of past practice, staff employees have worked various schedules including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past practice, been required to attend meetings or training sessions on days off by switching their normal day off and have not received compensation. When the parties have agreed not to alter any rights that members may have as a result of any past practice, NBFMA members shall select, in writing, one of the preceding schedules of the schedule option selected. The staff member shall be entitled to work that schedule unless that work schedule would significantly interfere with the ability of the member to perform his/her required duties. All NBFMA members assigned to work a forty hour work week shall have the option to work any of the following schedules: 26 - Five eight hour days, Monday through Friday. -Four ten hour days. - Nine eighty work schedule. E. Dues Checkoff NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each member's authorization. Executed this o� day of O1/EI"Vl e_,� 2005 By: By: NB NBFMA CITY OF NEWPORT BEACH Bv: ohn Heffernan, Mayor ATTEST: La onne Harkless, City Clerk APPROVED AS TO FORM: By: Robin Clauson, City Attorney 27 • • • • EXHIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Class Code Classification Compensation F315 Fire Line Battalion Chief Section 2 (a) (i) F305 Fire Division Chief F315 + 12.5% F310 Fire Deputy Chief F315 + 18 % F320 Fire Marshal F315 + 12.5% 28 • C-ap)"Ice Letter of Understanding between the City of Newport Beach ("City") and the Newport Beach Fire Management Association ("NBFMA") regarding an amendment to Section 2, sub -section 8 of the Memorandum of Understanding between the City and the NBFMA, for the period of February 1, 2003 through December 31, 2004, pertaining to Overtime — Hours Worked. This Letter of Understanding (LOU) shall, by reference, become part of the Memorandum of Understanding between the City of Newport Beach ("City") and the Newport Beach Fire Management Association ("NBFMA") for the period from January 1, 2002 to December 31, 2004. Due to the limited number of Line Battalion Chief positions authorized as part of the Fire Department budget, there are occasions where the ability of a Line Battalion Chief wishing to utilize paid leave or accumulated compensatory time off is limited for lack of an available replacement. Therefore, it has been practice to allow members assigned to Staff positions to work overtime as a Line Battalion Chief. It has also been practice to compensate Staff members working as a Line Battalion Chief at their regular rate of pay times the number of hours worked as a Line Battalion Chief times a Staff -to -Line conversion rate of 5/7. In 1996, the City and the Newport Beach Firefighters Association met and conferred and agreed to a policy that allowed members in a higher class to work overtime in specified lower classes (downgrade) and receive compensation at the highest hourly rate for the position as published in the City's compensation plan. These two practices for compensating employees who work downgrade are inconsistent. Therefore the City and the NBFMA agree to amend Section 2, sub -section 8, as follows: Section 2. - COMPENSATION 8. Overtime - Hours Worked A. All approved overtime shall be paid at the employee 's regular straighttime rate of hao.. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act for the purposes of calculating premium pay. Overtime payments were decreased from time -and -one-half to straight time by agreement of the parties as part of a negotiation, which increased the percentage spread between Battalion Chief and Fire Captain. The overtime rate shall be taken into account when comparing total compensation to benchmark positions in other agencies. B. Members may receive compensatory time off in lieu of overtime compensation subject to a maximum accrual of eighty (80) hours for staff personnel and a maximum accrual of one hundred and twenty (120) hours for line personnel. C. Qualified members assigned to Staff positions wishing to work voluntary overtime as a Line Battalion Chief (downgrade) may volunteer to do so and shall be compensated hour for hour at 1.063% of the highest hourly rate for the position of Line Battalion Chief as published in the City's compensation plan; or may receive compensatory time off in lieu of overtime compensation by multiplying the number of hours worked as a Line Battalion Chief times a Staff - to -Line conversion rate of 5/7. D. Members shall be selected to work approved overtime according to the provisions set forth in the Department's Standard Operating Procedures related to staffing and overtime. Roerla ., President Homer C. Bludau,lty Manager Ne ort Beach Fire Management Association City of Newport Beach D t2// .2/0 -3 Date MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition 1 Duration of Memorandum 1 Scope 2 Bulletin Boards 2 Conclusiveness 3 Modifications 3 Savings 3 Impasse 3 Definitions 3 Section 2. Compensation Direct Wage Payments 4 Salary Adjustments 4 Flex Leave Premium Pay Account 5 Vacation Leave Pteuuum Pay Account 5 Scholastic/Certificate Achievement Pay 6 Certificate Pay 6 Court Standby Pay 6 Overtime — Hours Worked 7 Section 3. Leaves Pay for Time Not Worked 7 Vacation Selection System 7 Sick Leave 8 Compensable Time Off 8 Flex Leave 8 Holiday Time _ 10 Worker's Compensation Leave 11 Vacation/Sick Leave 11 Sick Leave Conversion 11 Bereavement Leave 11 Reassignment 12 • Section 4. Fringe Benefits Health/Dental Insurance 12 Retirement Benefits 13 Benefits Information Committee 13 Retiree Health Insurance 14 Disability Insurance 15 Employee Assistance Program 16 Annual Physical Examinations 16 Physical Conditioning Equipment/Apparel 16 Required Uniform 16 Section 5. Miscellaneous Provisions Dues Check -off 16 Fire Suppression Staffing Levels 17 Jury Duty 17 Staff Assignment Schedule 17 Reduction in Force/Layoffs 17 Definitions 17 Procedures 18 Notice... 19 Re -Employment 19 Demotion 20 Severance Pay 20 Amortizing Payroll System 20 Discipline Plan 20 1 C z 11Lb Final MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA 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, 2002 to December 31, 2004 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of the 2002-2004 MOU. 4. This MOU, upon approval by NBFMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS. A. Recognition. In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. 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 1 Final as of January 1, 2002 This MOU shall remain in full force and effect until December 31, 2004; and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The 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. 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 NBFMA 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, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. 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 NBFMA business, meetings, or events. All materials posted on bulletins 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 Final 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. E. Conclusiveness. This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications. Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings. Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse. In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. I. Definitions. For the purposes of this MOU these terms shall have the following meanings: 3 Final 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. Pay for Time Worked. 1. Guaranteed Salary/Total Compensation Adjustments. (a) Effective the first payroll period December 29, 2001, the salary schedule for the classifications represented by the Association shall be as specified below. The salary for the position of Fire Battalion Chief shall maintain at least a 9% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary. (b) Fire Management Association Represented Classifications: Classification Percent of Battalion Chief Top Step Fire Battalion Chief N/A Staff Battalion Chief 112.5% Deputy Fire Chief 118% Fire Marshal 112.5% Deputy Chief, Marine Div. 112.5% + $325/mo. (i) Effective December 29, 2001, the City shall increase base salary for the Battalion Chief classification by eight (8%) percent (with increases for other classifications pursuant to the matrix above). This increase is inclusive of a five (5%) percent market adjustment. 4 Final (ii) Effective January 11, 2003, the City shall increase base salary for the Battalion Chief classification by three (3%) percent (with increases for other classifications pursuant to the matrix above). (iii) Effective June 28, 2003, the City shall increase base salary for the Battalion Chief classification by two (2%) percent(with increases for other classifications pursuant to the matrix above). (iv) Effective January 10, 2004, the City shall increase base salary for the Battalion Chief classification by three (3%) percent. (v) Effective June 26, 2004, the City shall increase base salary for the Battalion Chief classification by two (2%) percent. 2. Flex Leave Premium Pay Account. On request NBFMA 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 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. 3. 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 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 5 Final shall apply only to members employed by the City of Newport Beach on or before June 30, 1994. 4. Scholastic/Certificate Achievement Pay. NBFMA members are entitled to additional compensation contingent upon scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic/certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic/Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic/certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic/Certificate achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. NBFMA member shall receive scholastic achievement pay in accordance with the following: Years of College Monthly Service: Semester/Unit: Comp: 2 or more 30 1.4% 3 or more 60 2.0% 3 90 2.6% 4 120 3.2% 4 B.A./B.S. 3.8% • of base monthly top step Battalion Chief salary 6. Certificate Pay. Coursework Monthly Compensation Completion of coursework for 1%/mo base Certified Chief Fire Officer 7. Court Standby Pay. NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment 6 Final or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 8. Overtime - Hours Worked . All approved paid overtime shall be paid at the straight time rate. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. Overtime payments were decreased from time and one-half to straight time by agreement of the parties as part of a negotiation which increased the percentage spread between Battalion Chief and Fire Captain. The overtime rate shall be taken into account when comparing total compensation to benchmark positions in other agencies. SECTION 3. - LEAVES A Pay for Time Not Worked. 1. Vacation Selection System. The City has implemented a vacation selection system (VSS) which phased out mandatory scheduling for vacation relief in favor of leave coverage by paying overtime to other members occupying the same position. The City commits to maintain VSS 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 VSS. The amount to be budgeted shall be calculated by computing the Vacation/Flex leave 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 NBFMA 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." 7 Final 2. Sick Leave. 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 final base salary for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE NONE 25% 37.5% 50% 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). B. Compensable Time Off. 1. Flex Leave. (a) NBFMA personnel hired prior to 10/1/96, shall accrue flex leave at the following rates. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Cont. Svc Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours/Pay Period Line Employees 8.77 9.69 10.62 12.00 12.00 12.00 12.00 8 Leave Accrual Longevity Hours/Pav Period Pay Increase Staff Employees 6.26 6.92 7.58 8.57 8.57 8.57 8.57 0.00% 0.00% 0.00% 0.00% 1.5% 2.5% 3:5% Final NBFMA personnel hired or rehired by the City of Newport Beach on or after 10/1/96 shall accrue flex leave at the following rates: Years of Leave Accrual Leave Accrual Longevity Cont. Svc Hours/Pay Period Hours/Pay Period Pay Increase Line Personnel Staff Personnel Less than 5 7.81 5 but less than 9 8.66 9 but less than 12 10.62 12 but less than 16 11.54 16 but less than 20 12.00 20 but less than 25 12.00 25 and over 12.00 5.58 6.19 7.59 8.24 8.57 8.57 8.57 (b) The Flex leave program shall be administered as follows: 0.00% 0.00% 0.00% 0.00% 1.5% 2.5% 3.5% (i) NBFMA 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. In the event the City advances paid leave time and the employee is tenninated 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. (ii) NBFMA members who are staff 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. (iii) 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 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 9 Final department personnel that the absence should be charged to the member's flex leave account. (iv) Subject to the provisions of Section 2(A)(3), prior to the effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay. NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (78 times the member's 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. (v) 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. (vii) Members currently in the vacation/sick leave program shall be provided a one-time opportunity to convert to the flex -leave program during the month of July, 2002. All changes shall be effective the first pay period in January, 2002. 2. Holiday Time. (a) Accrual. The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 10 Final (b) Staff Employees. Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee's flex (or vacation) leave bank. 3. Worker's Compensation Leave. Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. 4 Vacation/Sick Leave. 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 Personnel Manual of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. 5. 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. 6. Family Sick Leave. Unit employees shall be entitled to use one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. 7. 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 employees shall be entitled to 11 Final five (5) working days of Bereavement Leave per calendar year while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per occurrence. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. 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. 8. 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. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. - FRINGE BENEFITS A. Insurance. 1. Health and Dental Insurance. The City has implemented an IRS qualified Cafeteria Plan. NBFMA members shall join this plan effective August 1, 2002. The City contribution toward the Cafeteria Plan shall be as set forth below. In addition, the City shall contribute a total of $16 towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurances/programs. The City and the Newport Beach Fire Management 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 during regular open enrollment periods. Effective January, 2002, the City's contribution towards health insurance programs will be a maximum of $500. Effective July, 2002, the City's contribution towards the Cafeteria Plan will be $484 (plus the $16 medical contribution). Effective January, 2003, the City's contribution towards the Cafeteria Plan will be $534 (plus the $16 medical contribution). 12 Final Effective January, 2004, the City's contribution towards the Cafeteria Plan will be $559 (plus the $16 medical contribution). Effective upon the ratification of this agreement, NBFMA members who do not want to enroll in any health care plan offered by the City must provide evidence of health care insurance coverage, and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. 3. Retirement Benefits. (a) Pursuant to Section 20615 of the California Govemment 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. 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 20023(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 20615 of the California Government Code. NBFMA acknowledges that the City is making this payment pursuant to a specific request of NBFMA to do so. (b) The City's contract with PERS shall also provide for: (i) A 3% @ 55 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. (ii) The military buy-back provisions pursuant to Section 20930.3 of the California Govemment Code and the highest year benefit pursuant to Section 20042. (iii) The Level 4 1959 Survivors Benefit. 4. Benefits Information Committee. The City shall meet with a medical - dental information committee on a quarterly basis. The committee shall be comprised of one representative from each bargaining unit and up to three management representatives. Committee advisory function shall include determination of coverage, preparation and solicitation of bids, consultation with the City's broker, determination of plan coverage, and selection of carrier and coverage options. Meetings and determinations shall be 13 Final coordinated to facilitate inclusion of findings or decisions in the collective bargaining process. 5. Retiree Insurance. (a) An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the CaIPERS medical insurance plan and the mandatory minimum of $16 per month employer contribution to said plan on behalf of the annuitant. (i) The City has implemented a $400 per month cap for retiree medical insurance premium contributions as agreed to by the the City and the Newport Beach Fire Management Association. In accordance with existing agreements, the City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. The employee's current share of the retirement contribution in accordance with the formulas set forth above shall be $27.47 per month. Effective March 9t6, 2002, the employee's current share of the retirement contribution shall be $34.06 per month. Subsequent contribution levels shall be set annually, in accordance with the formula described above. (ii) Prior to increasing the deductions for the employee's contribution share, the City shall provide the NBFMA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBFMA prior to any increases in employee deduction levels. The parties agree that any increase will take effect as soon as possible after January 1. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfounded retiree medical insurance premiums not covered by the funds collected under D. (a) above. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in (a) above; each NBFMA unit employee will contribute $10 per 14 Final month and the City shall contribute $20 per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBFMA mutually agree to end the funding on behalf of NBFMA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. The funds for the unfunded liability account shall be kept in an interest bearing account and may only be used to pay for unfounded retiree medical insurance premiums not covered by the funds collected under D.(a) above. In the event the retiree medical insurance program described herein is discontinued, NBFMA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBFMA on the distribution of said funds back to active (not retired/full-time) City employees in the NBFMA unit. The City will provide NBFMA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. B. Disability Insurance. The City provided disability insurance with the following provisions: Weekly Benefit 66 2/3% gross weekly wages Maximum Benefit (mo.) $8,000 Minimum Benefit $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. Employees are responsible for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. There will be no increase in the cost of the disability insurance program for the term of this agreement. 15 Final C. Employee Assistance Program. City shall provide an Employee Assistance Program through a properly licensed provider. NBFMA members may access the Employee Assistance Program at no cost subject to provider guidelines. D. Annual Physical Examinations. All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. E. Physical Conditioning Equipment/Apparel. City shall provide workout apparel for each NBFMA member. Workout apparel shall consist of three workout shirts and two trunks. NBFMA members shall wear City provided workout apparel when working out on duty. F. Required Uniform. City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. The City will report the value of the required uniform at $750.00. 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 employees personal turnout equipment that cannot be placed in service because they are wet, contaminated, or aged. These reserve turnouts will be available by August 1, 2002. SECTION 5. - MISCELLANEOUS PROVISIONS A. Dues Checkoff. NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each member's authorization. 16 Final B. Fire Suppression Staffing Levels. Move -up coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. C. Jury Duty. NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. D. Staff Assignment Schedule As a matter of past practice, staff employees have worked various schedules including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past practice, been required to attend meetings or training sessions on days off by switching their normal day off and have not received compensation. When the parties have agreed not to alter any rights that members may have as a result of any past practice, NBFMA members shall select, in writing, one of the preceding schedules of the schedule option selected. The staff member shall be entitled to work that schedule unless that work schedule would significantly interfere with the ability of the member to perform his/her required duties. All NBFMA members assigned to work a forty hour work week shall have the option to work any of the following schedules: - Five eight hour days, Monday through Friday. - Four ten hour days. Nine eighty work schedule. E. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off' shall mean the non -disciplinary termination of employment. 17 Final (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: (i) 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 any Classification, seniority shall mean the time an employee has worked within any Series. (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 re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: 18 Final (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 Personnel Resolution. 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-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to 19 Final remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion. Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay. 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. F. Amortizing Payroll System. The City shall establish an amortizing payroll system which will ensure that compensation and benefits due to members be paid or conferred in twenty six (26) equal bi-weekly installments during each calendar year. G. Discipline Plan. Employees of this Association are exempt from disciplinary leave of less than five (5) days. Executed thistnday of 20 ,2002 CITY OF NEWPORT BEACH By: , Tod Ridgew Mayor ATTEST: By: gU rhm..�-- l % . LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robert H. Burnham,/,City Attorney 21 Final Final EXIIIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Class Code Classification F300 Fire Battalion Chief F305 Staff Battalion Chief F310 Deputy Fire Chief F315 Line Battalion Chief F320 Fire Marshal F325 Deputy Chief, Marine Div. 22 • • AMENDMENT TO MEMORANDUM OF UNDERSTANDING This Amendment to the current Memorandum of Understanding between the City of Newport Beach (City) and the , ewport Beach Fire Management Association (NBFMA) is dated this 084 of , 1997, for purposes of identification and is based on the following: RECITALS A. City and NBFMA are parties to a Memorandum of Understanding that currently expires on December 31m, 1997 (Current MOU); B. Subsequent to execution of the Current MOU, the City received notice from PERS that, effective July 1, 1997, the rate of employer retirement contributions would substantially increase with the amount of the increase contingent on the funding horizon chosen by the City (2000, 2011 or 2016); C. According to the Current MOU and long-standing pattern/practice, the compensation paid to NBFMA members is negotiated and established on the basis of "Total Compensation" which consists of three factors: salary, employer and employee retirement contributions, and City employee health plan contributions; D. According to a long-standing pattern/practice and consistent with the concept of negotiating compensation of the basis of Total Compensation, the City has increased the salaries of NBFMA members when PERS has decreased the employer retirement contribution rate and decreased salaries when PERS has increased the employer retirement contribution rate; E. NBFMA members would experience substantial reductions in salary if, on July 1, 1997, the City followed the established past pattem/practice in response to increases in PERS employer contribution rates; F. City and NBFMA intend, through this Amendment to: 1. Extend the term of the Current MOU for a period of one year; 2. Eliminate any provisions in the Current MOU that pertain to, and the past pattern/practice of, reducing the salary of NBFMA members in response to increases in the PERS employer contribution rate; 3. Eliminate provisions in the Current MOU that relate to, incorporate by reference or describe any compensation policy, and the long-standing pattern/practice which involves consideration of certain criteria in negotiating increases in Total Compensation, subject to execution of a Supplemental MOU (SMOU - copy attached as Exhibit "C") which commits the City to maintain a certain level of Modified Total Compensation during the term of the SMOU; NOW, THEREFORE, the Parties agree as follows: SECTION A AMENDMENTS TO CURRENT MOU 1. Paragraph "2" of the introductory paragraphs is amended to read as follows; "NBFMA 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, 1996 to December 31, 1998 and this tentative agreement has been embodied in this MOU." 2. Paragraph "3" of the introductory paragraphs is amended to read as follows: " The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of the 1996-98 MOU. 3. Section 1 B1 is amended to read as follows: "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, 1996. This MOU shall be effective as of January 1, 1996 and shall remain in full force and effect until December 31, 1998. The provisions of this MOU shall remain in effect subsequent to the date of expiration in the event the parties are meeting and conferring on a successor MOU as provided in the SMOU." 4. The provisions of Section 2A of the Current MOU are modified to read as follows: A. Pay for Time Worked 1. Salarv/Total Compensation Adjustments 2 (a) The Parties have agreed on salary differentials among the various classifications represented by NBFMA, as well as the relationship between each step in those classifications and the Benchmark Position. These salary differentials and the salary schedule (as of January 1, 1996) for all classifications as represented by NBFMA are reflected in the Matrix attached as Exhibit A. Subject to the provisions of Subsection (b), the adjustments to Total Compensation required by this MOU shall achieve and maintain the following salary differentials reflected in the Matrix: (b) Effective January 1, 1996, the salary for the bottom step Fire Battalion Chief shall be five percent (5%) greater than the salary for the top step Fire Captain. Concurrent with the change in overtime compensation provided in Section 4 B (Overtime), the salary of the bottom step Fire Battalion Chief shall be six and three-quarters percent (6.75%) higher than the top step Fire Captain. (c) For purposes of this MOU, the term Benchmark Position shall mean the top step firefighter of any municipal fire department in Orange County without adjustment for any specific combination of experience, training or education. The Benchmark Position in Newport Beach is top step Firefighter. The term Total Compensation shall mean a combination of salary, retirement benefits (including contributions required to be paid to PERS by an employer and the contributions required to be paid by an employee even if paid by the City) and health insurance contributions. For purposes of determining Total Compensation, the salary and retirement benefits shall be calculated using the amount paid to, or on behalf of, the Benchmark Position and health insurance contributions shall be calculated based on the maximum contribution made by the employer on behalf of an employee with two or more dependents who is enrolled in the health plan having the largest number of employee participants. The ranking and average Total Compensation of the five (5) Benchmark Positions with the highest Total Compensation of the Benchmark Position as any specific date shall be calculated on the basis the information in the survey conducted by the Orange County Division of the League of California Cities (League Survey) current as of the date specified for comparison as verified and/or augmented by telephonic or written communication by the City and/or NBFMA, the results of which shall be made 3 available to the other Party. The average Total Compensation paid to the five (5) Benchmark Positions with the highest Total Compensation shall be determined solely on the basis of the factors specified in this MOU and without regard to weighting, the number of officers or employees in any municipal fire department or any other similar factor. The term Criteria Salary shall mean the salary that must be paid to the Benchmark Position in Newport Beach to achieve the appropriate level of Total Compensation and not the salary actually paid to the Benchmark Position in Newport Beach which is beyond the control of the Parties. (d) Effective October 1, 1996, the City shall adjust the salaries for all classifications represented by NBFMA to reflect the Criteria Salary of the Benchmark Position in Newport Beach that would correspond to an increase in Total Compensation paid to the Benchmark position in Newport Beach equal to fifty percent (50%) of the difference, based on the League Survey of July, 1995, between the average Total Compensation paid to the five (5) Benchmark Positions with the highest Total Compensation and the Benchmark Position in Newport Beach (e) Effective March 1, 1997, the salaries for all classifications represented by NBFMA shall be adjusted to reflect a Criteria Salary for the Benchmark Position in Newport Beach that corresponds to a level of Total Compensation which is, based on the League Survey published in July, 1996, equal to the average Total Compensation paid to the five (5) Benchmark Positions with the highest Total Compensation. (f) Effective the first pay period in January, 1998, the City shall increase salaries for all classifications represented by NBFMA by 2%. NBFMA shall be entitled to reopen negotiations solely on the issue of appropriate salary adjustments as of the first pay period in January, 1998, in the event the Consumer Price Index (Los Angeles/Long Beach, all urban consumers) for the twelve month period ending October 1, 1997, exceeds five percent (5%). (g) Effective July 1, 1996, the City shall assume the payment of the full employer retirement contribution increase for safety employees (1.76%) without any corresponding reduction in the salary or Total Compensation of any NBFMA member. (h) Effective July 1, 1997, the City shall assume the payment of the full employer retirement contribution increase for safety employees (approximately 3.2%) without any corresponding reduction in the salary or Total Compensation of any NBFMA member SECTION 2. CONTINGENCY The SMOU constitutes the consideration for NBFMA's agreement to modify and/or eliminate provisions of the Current MOU (Section 2A) and a long-standing pattern/practice which mandate consideration of certain criteria in negotiating adjustments to Total Compensation or Zink compensation of NBFMA members to the compensation paid to other City employees. The SMOU ensures that the Modified Total Compensation paid to NBFMA members will, during the term of the SMOU, correspond to a level of Total Compensation of the Benchmark Position in Newport Beach that is at least equal to the average Modified Total Compensation of the five (5) Benchmark Positions with the highest Modified Total Compensation. Accordingly, this Amendment shall not be effective until the SMOU is fully executed by authorized representatives of the Parties. NBFM (f)/ NBFIVIA r,/§d,�:�, LaV• ne Harkless, City Clerk Robert H. Burnham, City Attorney Dennis Danner, Administrative Services Director/Treasurer DA 72 DA E 74/P7 DATE F:\cat\mou\nbfma\amend.doc 7-22-97 5 • SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING This Supplemental Memorandum of Understanding (SMOU) between the City of Newport Beach (City) and the Newport Beach Fire Management Association (NBFMA) is dated the d3,,4 day of dome, , 1997 for purposes of identification and is based on the following: A. City and NBFMA have entered into an agreement to amend provisions of the Current MOU (Amendment - copy attached). B. This SMOU and the Amendment collectively achieve the objectives of the Parties as indicated in the Amendment Recitals and implement the agreement of the Parties with respect to matters beyond the term of the Amendment. C. This SMOU is intended to establish general guidelines for meeting and conferring regarding matters within the scope of representation while providing for periodic and mandatory adjustments necessary to ensure that Modified Total Compensation for NBFMA members, on specified dates during the term of this SMOU, corresponds to a level of Total Compensation paid to Benchmark Position in Newport Beach that is at least equal to the average of the Modified Total Compensation paid to the five (5) Benchmark Positions with the highest Modified Total Compensation. NOW, THEREFORE, the Parties agree as follows: 1. Definitions For purposes of this SMOU, the terms Total Compensation, Benchmark Position, Matrix and League Survey shall be defined/ calculated as specified in the Amendment. 2. Term/Effective Date. The term of this SMOU shall commence on July 1, 1998 and expire on July 1, 2001. This SMOU shall be effective: (a) when signed by authorized representatives of the Parties; and (b) upon execution of the Amendment by authorized representatives of the Parties. 3. General Criteria for Negotiations. The Parties shall, commencing in October of 1998, and October in 1999 and 2000 if required due to the expiration of an MOU approved subsequent to the Amendment, meet and confer on all matters within the 1 scope of representation with the intent to reach agreement on an MOU to be effective the first pay period the following January. In negotiating adjustments to compensation, the Parties shall, during the term of this SMOU, consider information regarding salaries and benefits paid to equivalent positions by other municipal fire departments in Orange County, increases or decreases in the Consumer Price Index or similar indexes during the period since the last adjustment in compensation, internal relationships, increases in salary, compensation or benefits offered or provided to other City recognized employee associations, matters fundamental to prudent fiscal policy and fiscal decisions such as current and projected revenue, the level of reserves, unfunded contingent obligations and potential liability claims, and any other information either Party considers relevant to the issue. 4. Supplemental Adiustments Effective the first pay period in July, 1998,1999, 2000, and 2001, the City shall, if necessary, adjust Modified Total Compensation (Total Compensation less employer retirement contributions but including employer "pickup" or payment of employee retirement contributions) paid to NBFMA members to correspond to a level of Modified Total Compensation paid to the Benchmark Position in Newport Beach which is at least equal to the average Modified Total Compensation paid to the five (5) Benchmark Positions with the highest Modified Total Compensation. The comparison of Modified Total Compensation shall be based on the League Survey published in the preceding January, subject to verification of accuracy by the City and/or NBFMA with the results of verification to be shared by the Parties. 5. Adiustment Procedures Once the appropriate adjustment in Modified Total Compensation of the Benchmark Position has been agreed to (subsequent to meet and confer) or calculated (in the case of adjustments in the first pay period in July that may be necessary to comply with Section 4), City shall adjust the Modified Total Compensation of all classifications represented by NBFMA in accordance with the Matrix while maintaining the salary differentials specified in the Amendment. 2 NBFMA NBFMA LaV Debay, Mayor ne Harkless, City Clerk DAT 7/ 792 DATE c%/P7 DATE /c? 7 DATE 7 7-3/-97 Robert H. Burnham, City Attorney DATE 7$c)-?7 ennis Danner, DATE Administrative Services Director/Treasurer F:\cat\mou\nbfma\supp.doc 07-22-97 3 COUNCIL AGENDA NO. /7 �►/��j�� MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION January 1, 1996 through December 31, 1997 NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS Section 1. - General Provisions Recognition 1 Duration of Memorandum 1 Scope 2 Bulletin Boards 2 Conclusiveness 2 Modifications 2 Savings 3 Impasse 3 Definitions 3 Section 2. - Compensation Salary/Total Compensation Adjustments 3 Flex Leave Premium Pay Account 4 Vacation Leave Premium Pay Account 4 Scholastic Achievement Pay 5 Court Standby Pay 5 Overtime - Hours Worked 5 Section 3. - Leaves Vacation Selection System 6 Sick Leave 6 Flex Leave 6 Holiday Time 8 Worker's Compensation Leave 9 Vacation/Sick Leave 9 Sick Leave Conversion 9 Family Sick Leave 9 Bereavement Leave 10 Reassignment 10 Section 4. - Fringe Benefits Health Insurance 10 Retirement Benefits 10 Medical Advisory Committee 11 Retiree Insurance 11 Health Care Opt Out 11 Short Term Disability/Long Term Disability 12 Employee Assistance Program 12 Annual Physical Examinations 13 Physical Conditioning Equipment/Apparel 13 Required Uniform 13 NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS Page 2 Section 5. - Miscellaneous Provisions Schedule 13 Dues Checkoff 13 Fire Suppression Staffing Levels 13 Jury Duty 14 Staff Assignment Schedule 14 Reduction in Force/Layoffs 14 Amortizing Payroll System 16 Progressive Discipline Plan 16 Exhibit A • MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOO") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for theiperiod from January 1, 1996 to December 31, 1997 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA duringthe meet and confer process leading to the adoption of the 1996-97 MOU. •. 4. This MOU, upon approval by NBFMA and the Newport Beach City Coundil, represents the total and complete understanding and agreement between the parties': regarding all matters within the scope of representation. SECTION 1. - GENERAL PROVISIONS. A. Recognition. In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 7173, the City acknowledges that NBFMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for 411 employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. 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, 1996. This MOU shall remain in full force and effect until December 31, 1997, and the provisions of this MOU shall continue ',after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terns and conditions of this MOU shall prevail over ant 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. 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. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 7173 (copy attached as Exhibit "B"). D. 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 NBFMA business, meetings, or events. All materials posted on bulletins 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 pomographic 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 impermis$ible basis, as well as any pornographic or obscene material. E-Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness. This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative Of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications. Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings. 2 • • 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 pdrtions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City :shall provide alternative forms of compensation such that NBFMA members sufferi 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 ii good faith. H. Impasse. In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 10 of Resolution No. 7173 or a successor resolution. - Definitions. For the purposes of this MOU these terms shall have the following meaning§: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. Pay for Time Worked. 1. Salary/Total Compensation Adjustments. i) Effective January 1, 1996, the salary schedule for the classifications represented by the Association shall be as specified in Exhibit "A." The salary for the position of Fire Battalion Chief shall maintainiat least a 5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary. ii) Upon ratification, concurrent with the change in overtime compensation called out in Section 4 B (Overtime) below, the salary for unit classifications shall be further adjusted so that the salary differential between top step of Fire Captain and bottom step of Fire Battalion Chief shall increased by 1.75%. 3 • • iii) Effective July 1, 1996, the City shall pay the July 1st, 1996 increase in the employer retirement rate for all NBFMA members without any corresponding reduction in salary for any NBFMA member. Effective October 1, 1996, the City shall increase Fire Battalion Chief's salaries by 1/2 of any increase in salary which would be granted to the position of Fire Captain (benchmark position) utilizing the formula in the Fire Unit Memorandum of Understanding based upon July 1995 comparison data. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA. v) The remaining fifty (50% ) percent adjustment necessar}j to reach the X salary which would be granted to the position of Fire Captain based upon the compensation formula in the Fire Unit Memorandum of Understanding shall be paid effective March 1997 utilizing the July 1990 comparison data. Adjustments to the salary of Fire Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA. \/vi) The adjustments outlined in iv) and v) will be paid based upon the /J\ benchmark calculation, regardless of whether or not adjustntients are made for the Fire Captain classification. 2. Flex Leave Premium Pay Account. On request NBFMA 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 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. Thp 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: 3. 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 thedn current base salary, for any accumulated Vacation Leave up to a maximum of 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 4 • • shall apply only to members employed by the City of Newport Beach on or before June 30,1994. 4. Scholastic Achievement Pay. NBFMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible acid scholastic achievement pay shall be included in the member's paycheck for t1e pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFMA member to apply for Scholastic 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 achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic 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. NBFMA member shall receive scholastic achievement pay in accordance with the following: Years of College Monthly Service: Semester/Unit: Compensation: 2 or more 30 $70.00 3 or more 60 $100.00 3 90 $135.00 4 or more 90 $135.00 4 120 $175.00 4 B.A./B.S. $225.00 5. Court Standby Pay. NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to j be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in cloud 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 fort testifying or appearing on any matter for which the member is eligible to receive court standby time. 6. Overtime - Hours Worked . Effective October 1, 1996, all approved paid overtime shall be paid at the straight time rate. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. 5 s • SECTION 3. - LEAVES A. Pay for Time Not Worked 1. Vacation Selection System The City has implemented a vacation selection system (VSS) which phased out mandatory scheduling for vacation relief in favor of leave coverage by paying overtime to other members occupying the same position. The City commits to maintain VSS 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 VSS. The amount to be budgeted shall be calculated by computing the Vacation/Flex leave 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 NBFMA 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!' 2. Sick Leave. Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, airy member or his/her estate shall be paid, at the rate of 109% of their final base salary for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave or 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 multipliebd by .375). B. Compensable Time Off. 1. Flex Leave. (a) Subject to the provisions of subsection (b), NBFMA members shall accrue flex leave as follows: 6 Years of Con't. Svc,: Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours/Pay Period: Line Employees 8.77 9.69 10.62 12.00 12.92 13.85 14.77 Leave Accrual Hours/Pay Period Staff Employees 6.26 6.92 1.58 8.57 9.23 9.89 10.55 1 Effective 10/1/96 current NBFMA personnel shall accrue flex leave at the following rates. It is mutually understood that accrual rates have, been modified to provide for the longevity increase set forth below: 1 Years of Con't.. Svc Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours/Pay Period Line Employees 8.77 9.69 10.62 12.00 12.00 12.00 12.00 Leave Accrual Hours/Pav Period Staff Employees 6.26 6.92 7.58 8.57 8.57 8.57 8.57 Longevity Increase 0.00% 0.00% Q.00% 0.00% 1.00% 1.75% 2.50% NBFMA personnel hired or rehired by the City of Newport Beach crn or after 10/1/96 shall accrue flex leave at the following rates: 1 Years of Con't.. Svc Less than 5 5 but less than 9 9butlessthan 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours/Pay Period Line Personnel 6.89 7.74 9.04 10.18 12.00 12.00 12.00 Leave Accrual Longevity Hours/Pay Period hicrease Staff Personnel i 4.92 0.00% 5.53 0.00% 6.46 0.00% 7.28 0.00% 8.57 1.00% 8.57 1.75% 8.57 2.50% (b) The Flex leave program shall be administered as follows: (i) NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department fbr 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 81 hours of paid leave time to staff employees and 114 hours of paid leave time for line employees for use by the member to recover from illness. • • 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. (ii) NBFMA members who are staff employees shall accrue 81 hours of flex leave and line employees shall accrue 114 hours 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. (iii) 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 Section 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution 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. (iv) Subject to the provisions of Section 2(A)(3), prior tothe effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay. NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (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 oflpaid leave if a staff employee. (v) 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. 2. Holiday Time. (a) Line Employees. The provisions of this subsection shall apply only to NBFMA 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 8 s • (b) a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.077 hours per pay period. Holiday time shall be added to the member's Administrative Bank on a bi-week1ly basis. The Administrative Leave Bank shall be a separate account maintained by the Fire Chiefs Secretary. Effective October 1, 1996, all Line Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. . Staff Employees . Staff employees shall receive the following fully paid holidays: New Years Day, 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 two floating holidays at the members election. Effective July 1, 1996, one floating holiday shall be eliminated. 3. Worker's Compensation Leave. Any NBFMA member who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the curse 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. 4. Vacation/Sick Leave. 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 Personnel Resolution of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. 5. 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 leaye 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. 6. Family Sick Leave. Staff employees shall be entitled to use forty (40) hours of accrued sick leave per calendar year and line employees shall be entitled to use forty-eight (48) hours of sick leave per calendar year for an illness of a dependent which requires the presence of the employee. Family Sick Leave shall be administered in accordance with the provisions of Sections 703.4.2.1 of the Personnel Resolution. The provisions of this Section shall not be construed to affect or reduce the right 9 of any employee to any unpaid family medical leave authorized by State or Federal law. 7. 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 employees shall be entitled to five (5) working days of Bereavement Leave per calendar year while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per occurrence. Bereavement leave shall be administered in accordance with the provisions of Section 705 of Resolution No. 88-13. 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. 8. 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 provid$d. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. - FRINGE BENEFITS A. Insurance. 1. Health Insurance. The City shall make available to all NBFMA members the PERS health insurance programs and a second health care plan as long as permitted by PERS. City shall pay the health and dental premium for each NBFMA member, up tp a maximum of $400 per month. 2. Retirement Benefits. a) Pursuant to Section 20615 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by th5s agreement, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which AERS uses to calculate retirement contributions and benefits. 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 20023(c)(4) of the California Govemment Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20615 of the California Government Code. NBFMA acknowledges Met the City is Making this payment pursuant to a specific request of NBFMA to do so. b) The City's contract with PERS shall also provide for: 10 1 • • 1. A 2% @ 50 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code 2. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest; year benefit pursuant to Section 20042. 3. Medical Advisory Committee. The City shall meet with a medical - dental advisory committee during the months of July, November, January and May. The committee shall be comprised of one representative from each bargaining unit and up to three management representatives. Committee advisory function shall include determination of coverage, preparation and solicitation of bids, consultation with the City's broker, determination of plan coverage, and selection of carrier and coverage options. Meetings and determinations shall be coordinated to facilitate; inclusion of findings or decisions in the collective bargaining process. NBFMA and the City have worked together in the selection of a new health care provider. This process involved participation in the medical advisory committee and the meet and confer process. 4. Retiree Insurance. a. City shall provide a retiree health insurance plan through the City's group health plan carrier and PERS. NBFMA agrees that twent}i five percent (25%) of the cost of providing health insurance to retirees pursuant to the City's group health care plan will be borne by probationary and regular employees of the City of Newport Beach and that NBFMA members shall pay their pro-rata share of the active employee contribution to retiree health insurance. The member's contribution shall be the same as other Newport Beach employees and is calculated by dividing 25']% of the cost of providing retiree health insurance by the number of probationary and regular employees of the City of Newport Beach and dividing that number by 26 to determine the amount the bi-weekly payroll deduction. b. The parties agree that during the term of this Agreement, the maximum combined contribution by the City and active employees for retiree medical insurance shall not exceed $400.00 per month. Further, the City and Association agree to work, through] a City wide committee, on a variety of issues involving retiree medical insurance in an attempt to achieve cost containment and equity amongst the City's retiree medical programs. 5. Health Care Opt Out Employees will be allowed to opt out of the City's health plans (Medical, dental and vision), and if they choose to do so they shall receive $200 per month. To qualify the employee would be required to supply evidence of alternative medical coverage, and to sign a hold harmless agreement, releasing the city from any responsibility as a health care provider. i • 11 B. Short Tenn Disability/Long Term Disability. The following provisions shall control a members' payment for, and access to, eligibility for short term and long term disability plans or programs. 1. Payment. Line employees shall pay the full cost of any short term end long term disability plan or program until he or she has accrued 120 hours of flex leave/sick leave, 50 percent of the cost after accruing between 120 hours and 2310 hours, and City shall pay the full cost upon accrual of more than 240 hours of flex leave/ sick leave. Staff employees shall pay the full cost of any disability plan or program until they have accrued at least 80 hours of flex leave/ sick leave, 50 percent of the cost when they have accrued more than 80 hours, but less than 160 hours, and City shall pay full cost upon accrual of 160 hours or more of flex leave/ sick leave. Whenever any line employee has accrued at least 240 hours of flex leave/ sick leave, and when any staff employee has accrued at least 160 hours of flex leave/ sick leave for a period of 24 months or more, City shall pay the full cost of that member's disability plan or program so long as the member is employed with the Newport Beach Fire Department. 2. A member shall not be entitled to receive short term or long term disability benefits unless: (a) - The member is enrolled in the appropriate disability program; (b) The employee has exhausted all accrued sick leave; (c) Flex leave program. The member must use at least 5 days, or 1/3, of accrued sick leave, whichever is greater. Any staff emplgyee who has used at least 160 hours of sick leave, or any line employee who has used at least 240 hours of sick leave for the injury or illness which results in disability shall not be required to use flex leave as a precondition to accessing the short term/long term disability program. (d) The member has completed a 5 day waiting period, which may be satisfied by use of accrued flex leave, sick leave or authorized unpaid';absence from work. 3. Disability benefits shall be calculated on the basis of a percentage of a member's salary. The maximum benefit for non -industrial claims shall be $5,000 per month. In the case of an industrial disability, benefits provided pursuant to this subsection shall not be paid on any portion of a member's salary in excess of $2,625.00 per month and the maximum benefit for industrial disability claims shall; be $1,750.00 per month. The limitations on industrial disability claims are imposed in light of entitlement to supplemental industrial disability income pursuant to Section 803.4 of Resolution 88-13 and the provisions of Section 4850 et seq. of the Labor Code of the State of California. C. Employee Assistance Program. City shall provide an Employee Assistance Program through a properly licensed provider. NBFMA members may access the Employee Assistance Program at no cost subject to provider guidelines. 12 • • D. Annual Physical Examinations. All NBFMA members are eligible, but not required, to receive, at their option and at City's expense, a complete annual health fitness evaluation from Centinela Hospital or an annual medical examination from Dr. Lynn Stanton. The health fitness evaluation, and the comprehensive medical examination shall include limited cancer; screening as specified in the contract between the medical vendor and the City. The cost of the examination or evaluation shall not be included in the calculation; of the total compensation. Members who elect to receive a health fitness Evaluation or comprehensive medical examination shall do so on their own time. Members who elect to receive the health fitness evaluation or comprehensive medical evaluation shall sign a consent form authorizing the vendor to advise the Fire Chief, in writing, ifthe employee is physically fit to perform his/her normal duties. E. Physical Conditioning Equipment/Apparel. City shall provide workout apparel for each NBFMA member. Workout apparel shall consist of three workout shirts and two trunks. NBFMA members shall wear City provided workout apparel when working out on duty. F. Required Uniform. City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. SECTION 5.- MISCELLANEOUS PROVISIONS A. Dues Checkoff. NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each members authorization. B. Fire Suppression Staffing Levels. Moveup coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. C. Jury Duty. NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. D. Staff Assignment Schedule As a matter of past practice, staff employees have worked various schedules including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past practice, been required to attend meetings or training sessions on days off by switching their normal day 13 off and have not received compensation. When the parties have agreed ndt to alter any rights that members may have as a result of any past practice, NBFMA members shall select, in writing, one of the preceding schedules of the schedule option selected. The staff member shall be entitled to work that schedule unless that work schedule would significantly interfere with the ability of the member to perform his/her required duties. All NBFMA members assigned to work a forty hour work week shall have! the option to work any of the following schedules: - Five eight hour days, Monday through Friday. - Four ten hour days. - Nine eighty work schedule. E. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated:reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extetit 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. (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: (I) 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 any Classification, seniority shall mean the time an employee has worked within any Series. (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 tempor{uy positions. Classifications within a Series shall be ranked according tO pay (lowest ranking, lowest pay). (d) "Series" shall mean two or more Classifications within 4 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 14 • for subordinates. The City Manager shall determine those Classifications which constitute a Series. (e) "Bumping Rights", "Bumping" or "Bump" shall mean thee 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 Os specialized education, training or experience, provided, however, the City shall allow an employee to become re -certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures. In the event the City Manager determines to reduce the number of eniiployees 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 Personnel Resolution. 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. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the 15 • • 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 hqr past known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the reemployment list by sending written confirmation to the Personnel Director. 5. Demotion. Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay. 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. G. Amortizing Payroll System. The City shall establish an amortizing payroll system which will ensure that compensation and benefits due to members be paid or conferred in twenty six (26) equal bi-weekly installments during each calendar year. H. Progressive Discipline Plan. City and NBFMA shall develop a Progressive Discipline Plan to be incorporated, by reference, into this MOU. Employees of this Association are exempt from disciplinary leave of less than five (5) days. 16 Executed this day of Bv: By. 1996: / IWO" //i NBFMA CITY OF NEWPORT BEACH By: ATTEST: John Hedges Mayor By: �/ �� "jP2J LaVonne Harkless, City Clerk API • VED AS TO FORM: obert H. Burnham, City Attorney 17 EXHIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Class Code Classification Compensation F300 Fire Battalion Chief Section 2 (a) (i) F305 Staff Battalion Chief F300 + 7.5% F310 Deputy Fire Chief F300 + 12.5% F315 Line Battalion Chief F300* 40/56 F320 Fire Marshal F300 + 12.5% F325 Deputy Chief, Marine Div. F300 + 12.5% + $325/mo. 18 • 1 , • • C `2796 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA"), 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. NBFMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from July 1,1993 to July 1,1995 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of the 1992-93 MOU. NBFMA recognized that the on -going recession and the state budget crisis resulted in significant reductions in municipal revenue during that fiscal year and agreed to withdraw their request to a proposed 6.5 percent increase in total compensation. 4. This MOU, upon approval by NBFMA and. the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. 5. NBFMA and the City have, subsequent to the effective date of the agreement which is memorialized in this MOU, met and conferred regarding provisions of the original agreement which gave NBFMA members an "irrevocable right" to pay their own PERS contribution and receive a corresponding 9% increase in salary. NBFMA members have agreed to relinquish this "irrevocable right" and reduce the potential increase in overtime compensation the City would have been required to pay if the "regular pay" of NBFMA members had been increased by 9% if and when the "irrevocable right" was exercised. The relinquishment of the "irrevocable right" in consideration of the City's agreement to make certain internal adjustments, establish premium pay accounts for Vacation Leave, Sick Leave and Flex Leave and the inclusion of Sick Leave and Holiday Pay in the calculation of hours worked for purposes of calculating FLSA overtime will save the City money in overtime pay. The City appreciates a continued cooperation of NBFMA and its members. • • SECTION 1. - General Provisions. A. Recognition. In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 7173, the City acknowledges that NBFMA is the majority representative for the pm -pose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFMA. B. 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 July 1, 1993. This MOU shall remain in full force and effect until December 31, 1994, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The 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. 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. 2 • • 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 7173 /copy attached as Exhibit "B"). D. 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 NBFMA business, meetings, or events. All materials posted on bulletins 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 statutory 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. E. Conclusiveness. This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications. Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. 3 G. Savings. Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse. In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 10 of Resolution No. 7173 or a successor resolution. I. Definitions. For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or " NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA 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. 4 SECTION 2. - Direct Wage Payments. A. Pay for Time Worked. 1. Salary/Total Compensation Adjustments. Effective January 1,1994, the salary schedule for the classifications represented by the Association shall be as specified in Exhibit "A." _ The salaries of members of NBFMA shall be adjusted to reflect any increase or decrease in salary granted to the position of Fire Captain (benchmark position). When the salary for the benchmark position is adjusted the salary for the position of Fire Battalion Chief shall also be adjusted to maintain a 5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary 2. Retirement Benefits. (a) Pursuant to Section 20615 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. 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 20023(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 20615 of the California Government Code. NBFMA acknowledges that the City is making this payment pursuant to a specific request of NBFMA to do so, that the City has made significant financial commitments to NBFMA and NBFA this MOU in 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 NBFMA and NBFA (which included Leave Premium Pay Accounts, changes in the calculation of "hours worked" for purposes of overtime and internal salary 5 adjustments) were made to avoid the potential for increased overtime compensation if all NBFMA and NBFA members exercised their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. (b) In the 1988-89 MOU between the City and NBFMA, City agreed to provide NBFMA members with retirement benefits based upon highest year compensation ("Highest Year Benefit"). Pursuant to that MOU, the City agreed to pay the total extra cost of the Highest Year Benefit during 1988-89 and thereafter phase the additional cost into the total compensation calculation at the rate of "an additional 20% per year" until fully absorbed in the total compensation calculation. The parties wish to resolve any disagreement over the meaning and method of implementation of those provisions of the 1988-89 MOU related to the Highest Year Benefit by converting the current value of the Highest Year Benefit to a guaranteed payment over and above each member's salary. This guaranteed payment shall be calculated by multiplying the member's salary by a percentage determined by dividing sixty percent (60%) of the cost of the Highest Year Benefit for the benchmark position (as of April 28,1993) by total compensation for the benchmark position as of April 28, 1993. This guaranteed payment shall be effective June 1, 1993, shall continue in full force and effect until December 31,1994, and shall not be included in the calculation of total compensation for any purpose, including, without limitation, the computation of total compensation for the purpose of calculating salary increases pursuant to subsection 2(A)(1). City shall provide NBFMA with proof of compliance with this subsection within thirty (30) days after its effective date and within thirty (30) days after each subsequent salary increase. (c) City's contract with PERS shall provide for a "two percent at fifty" retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. (d) City shall elect to be subject to the military buy back provisions of Section 20930.3 of the California Government Code and shall amend the contract with PERS to reflect this election. 3. Special Assignment Pay. The following additional payments shall be made to certain NBFMA members based on assignment: a) The City agrees to compensate forty (40) hour work week personnel with an additional seven and one half (7 1/2) percent differential pay (calculated on base salary). b) The City agrees to compensate Deputy Chiefs with an additional five (5) percent differential pay in addition to the forty hour personnel differential pay (calculated on base salary). 4. Shift Holdover. Notwithstanding the provisions of Section 602.7.3.3 of Resolution No. 88-13 (Personnel Policy Resolution) NBFMA 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). 5. Flex Leave Premium Pay Account. On request, NBFMA 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 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. 6. 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 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. 7. Sick Leave. 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 final base salary for a percentage of the employee's accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% 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). B. Compensable Time Off. 1. Flex Leave. (a) Subject to the provisions of subsection (b), NBFMA members shall accrue flex leave as follows: Years of Con't. Svc: Line Employees 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Years of Con't. Svc.: Staff Employees 1 but less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours/Pay Period: 9.69 10.62 12.00 12.92 13.85 14.77 Leave Accrual Hours/Pay Period: 6.26 6.92 7.58 8.57 9.23 9.89 10.55 These accrual rates are effective July 1, 1993. Flex leave banks of NBFMA members shall be adjusted to reflect the new accrual rates as of July 1, 1993. (b) The Flex leave program shall be administered as follows: (i) NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of six (6) months provided, 9 • • however, if a member on the flex leave program becomes sick during the first six months of employment, the City will advance up to 81 hours of paid leave time to staff employees and 114 hours of paid leave time for line employees for use by the member to recover from illness. 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. (ii) NBFMA members who are staff employees shall accrue 81 hours of flex leave and line employees shall accrue 114 hours 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. (iii) Members employed by the City prior to initiation of the flex leave program have had then current accrued vacation time converted to flex leave on an hour for hour basis with then current sick leave placed in a bank to be used as provided in Section 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution 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. (iv) Subject to the provisions of Section 2(A)(5), prior to the effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi- weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay. NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. 10 • • However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (78 times the member's 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. (v) 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. (vii) Prior to January 1,1990, NBFMA members accrued both sick leave and vacation leave. In 1990, the City adopted an alternative system called the Flex Leave Program. Employees who opted for the Flex Leave Program accrued less leave than the combined vacation/sick leave accrual, but no restrictions were placed upon the use of the leave. NBFMA members hired prior to January 1, 1990 and who enrolled in the Flex Leave Program shall have the right to return the vacation/sick leave system by filing a written election to do so prior to January 1, 1995. Those members who elect to return to the vacation/sick leave system shall have their vacation and their sick leave banks adjusted to reflect accruals as if they had never elected to convert from the vacation/sick leave system to flex leave. By way of example, assume a member accrued 5 hours of vacation leave and 5 hours of sick leave under the traditional system, accrues 8 hours of flex leave under the new system, and has used 200 of the 400 hours of flex leave accrued since the employee elected to convert to the flex leave system. In such case, the member would have 125 hours of vacation leave and 125 hours of sick leave added to the leave accrued as of the date he/she elected to convert to the flex leave 11 program and the member would no longer have a flex leave account. 2. Holiday Time. (a) Line Employees. The provisions of this subsection shall apply only to NBFMA 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. NBFMA members who are line employees shall accrue holiday time at the rate of 5.538 hours per pay period. Holiday time shall be added to the member's Administrative Leave Bank on a bi-weekly basis. The Administrative Leave Bank shall be a separate account maintained by the Fire Chief's Secretary. (b) Staff Employees. Staff employees shall receive the following fully paid holidays: New Years Day, 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 two floating holidays at the members election. 3. Worker's Compensation Leave. Any NBFMA member who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. 4. Vacation/Sick Leave. 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 Personnel Resolution of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve hours per month and staff employees shall accrue sick leave at the rate of eight hours per month. 12 5. 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. 6. Family Sick Leave. Staff employees shall be entitled to use forty (40) hours of accrued sick leave per calendar year and line employees shall be entitled to use forty-eight (48) hours of sick leave per calendar year for an illness of a dependent which requires the presence of the employee. Family Sick Leave shall be administered in accordance with the provisions of Sections 703.4.2.1 of the Personnel Resolution. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. 7. 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 employees shall be entitled to five (5) working days of Bereavement Leave per calendar year while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave. Bereavement leave shall be administered in accordance with the provisions of Section 705 of Resolution No. 88-13. 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. 8. 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 13 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. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/ 7. SECTION 3. - Fringe Benefits. A. Insurance. 1. Health Insurance. City shallprovide a health care plan available to all NBFMA members, their spouses, and dependents. The health plan shall be underwritten by a reputable health care provider and PERS. The City shall also provide dental coverage with a maximum annual benefit of $1,000.00 and limited vision care benefits. The dental coverage may be offered by a provider other than the one which sponsors the health care plan. City shall pay the health and dental premium for each NBFMA member, spouse and dependents up to a maximum of $400 per month. City and NBFMA shall meet and confer during the term of this MOU with respect to the health care plan provider, adjustments to the maximum City contribution per member, and other issues relevant to health care coverage. 2. Medical Advisory Committee. The City shall meet with a medical - dental advisory committee during the months of July, November, January and May. The committee shall be comprised of one representative from each bargaining unit and up function shall include determination of coverage, preparation and solicitation of bids, consultation with the City's broker, determination of plan coverage, and selection of carrier and coverage options. Meetings and determinations shall be coordinated to facilitate inclusion of findings or decisions in the collective bargaining process. NBFMA and the City have worked together in the selection of a new health care provider. This process involved participation in the medical advisory committee and the meet and confer process. 14 3. Insurance. City shall provide a retiree health insurance plan through the City's group health plan carrier and PERS. NBFMA agrees that twenty five percent (25%) of the cost of providing health insurance to retirees pursuant to the City's group health care plan will be borne by probationary and regular employees of the City of Newport Beach and that NBFMA members shall pay their pro-rata share of the active employee contribution to retiree health insurance. The member's contribution shall be the same as other Newport Beach employees and is calculated by dividing 25% of the cost of providing retiree health insurance by the number of probationary and regular employees of the City of Newport Beach and dividing that number by 26 to determine the amount the bi-weekly payroll deduction. B. Short Term Disability/Long Term Disability. The following provisions shall control a members' payment for, and access to, eligibility for short term and long term disability plans or programs. 1. Payment. Line employees shall pay the full cost of any short term and long term disability plan or program until he or she has accrued 120 hours of flex leave/sick leave, 50 percent of the cost after accruing between 120 hours and 240. hours, and City shall pay the full cost upon accrual of more than 240 hours of flex leave/ sick leave. Staff employees shall pay the full cost of any disability plan or program until they have accrued at least 80 hours of flex leave/ sick leave, 50 percent of the cost when they have accrued more than 80 hours, but less than 160 hours, and City shall pay full cost upon accrual of 160 hours or more of flex leave/ sick leave. Whenever any line employee has accrued at least 240 hours of flex leave/ sick leave, and when any staff employee has accrued at least 160 hours of flex leave/ sick leave for a period of 24 months or more, City shall pay the full cost of that member's disability plan or program so long as the member is employed with the Newport Beach Fire Department. 3. A member shall not be entitled to receive short term or long term disability benefits unless: 15 • (a) The member is enrolled in the appropriate disability program; (b) The employee has exhausted all accrued sick leave; (c) Flex leave program. The member must use at least 5 days, or 1/3, of accrued sick leave, whichever is greater. Any staff employee who has used at Least 160 hours of sick leave, or any line employee who has used at least 240 hours of sick leave for the injury or illness which results in disability shall not be required to use flex leave as a precondition to accessing the short term/long term disability program. (d) The member has completed a 5 day waiting period, which may be satisfied by use of accrued flex leave, sick leave or authorized unpaid absence from work. 4. Disability benefits shall be calculated on the basis of a percentage of a member's salary. The maximum benefit for non -industrial claims shall be $5,000 per month. In the case of an industrial disability, benefits provided pursuant to this subsection shall not be paid on any portion of a member's salary in excess of $2,625.00 per month and the maximum benefit for industrial disability claims shall be $1,750.00 per month. The limitations on industrial disability claims are imposed in light of entitlement to supplemental industrial disability income pursuant to Section 803.4 of Resolution 88-13 and the provisions of Section 4850 et seq. of the Labor Code of the State of California. C. Employee Assistance Program. City shall provide an Employee Assistance Program through a properly licensed provider. NBFMA members may access the Employee Assistance Program at no cost subject to provider guidelines. D. Scholastic Achievement Pay. NBFMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). NBFMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. 16 It is the responsibility of the NBFMA member to apply for Scholastic 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 achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic 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. NBFMA member shall receive scholastic achievement pay in accordance with the following: Years of College Monthly Service: Semester/Unit: Compensation: 2 or more 30 $70.00 3 or more 60 $100.00 3 90 $135.00 4 or more 90 $135.00 4 120 $175.00 4 B.A./B.S. $225.00 E. Annual Physical Examinations. All NBFMA members are eligible, but not required, to receive, at their option and at City's expense, a complete annual health fitness evaluation from Centinela Hospital or an annual medical examination from Dr. Lynn Stanton. The health fitness evaluation, and the comprehensive medical examination shall include limited cancer screening as specified in the contract between the medical vendor and the City. The cost of the examination or evaluation shall not be included in the calculation of the total compensation. Members who elect to receive a health fitness evaluation or comprehensive medical examination shall do so on their own time. Members who elect to receive the health fitness evaluation or comprehensive medical evaluation shall sign a consent form authorizing the vendor to advise the Fire Chief, in writing, if the employee is physically fit to perform his/her normal duties. F. Physical Conditioning Equipment/Apparel. City shall provide workout apparel for each NBFMA member. Workout apparel shall consist of three workout shirts and two trunks and NBFMA 17 members shall wear City provided workout apparel when working out on duty. G. Required Uniform. City shall pay the entire cost of providing NBFMA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. Court Standby Pay. NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 4. - Miscellaneous Provisions. A. 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(c)1. B. Overtime - Hours Worked . Pursuant to past practice, overtime shall be paid to Battalion Chiefs when a Line Battalion Chief is held over after his or her shift and/or when a 18 • • Staff Battalion Chief fills the position of a Line Battalion chief. Overtime shall consist of authorized work in excess of the normal number of hours in any scheduled work shift or work in excess of the maximum number of hours permitted by the United States Department of Labor regulations for a 28 day pay period. Use of Flex Leave, Vacation Leave, Holiday Leave, 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. C. Dues Checkoff. NBFMA members shall have the right to authorize the City to deduct regular monthly NBFMA dues from their bi-weekly paycheck. The City shall deduct payment of NBFMA dues when the employee has authorized such deduction and City shall remit all payments to NBFMA in accordance with the terms of each member's authorization. D. Fire Suppression Staffing Levels. Moveup coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. E. Vacation Selection System. The City has implemented a vacation selection system (VSS) which phased out mandatory scheduling for vacation relief in favor of leave coverage by paying overtime to other members occupying the same position. The City commits to maintain VSS 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 VSS. 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 NBFMA 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." 19 F. 'fury Duty. NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. G. Staff Assignment Schedule As a matter of past practice, staff employees have worked various schedules including 10/80, 8/80 and 9/80. Staff employees have, also as a matter of past practice, been required to attend meetings or training sessions on days off and have not received compensation. While the parties have agreed not to alter any rights that members may have as a result of any past practice, NBFMA members shall select, in writing, one of the preceding schedules of the schedule option selected. The staff member shall be entitled to work that schedule unless that work schedule would significantly interfere with the ability of the member to perform his/her required duties. All NBFMA members assigned to work a forty hour work week shall have the option to work any of the following schedules: - Five eight hour days, Monday through Friday. - Four ten hour days. - Nine eighty work schedule. H. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. 20 • • (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: (i) 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 any Classification, seniority shall mean the time an employee has worked within any Series. (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, 21 however, the City shall allow an employee to become re- certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 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. 22 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 Personnel Resolution. 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. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment List by sending written confirmation to the Personnel Director. 5. Demotion. Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay. 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. Amortizing Payroll System. The City shall establish an amortizing payroll system which will ensure that compensation and benefits due to members be paid or conferred in twenty six (26) equal bi-weekly installments during each calendar year. 23 K. Progressive Discipline Plan. City and NBFMA shall develop a Progressive Discipline Plan to be incorporated, by reference, into this MOU. Executed this c ay of �"J 4994: /9 CITY OF NEWPORT BEACH By: John Hedges Mayor APPRD AS TO FORM: obert H. Burnham, City Attorney NBFMA-2.mou (Word) 7-13-95 cdh (gib) 24 ATTEST: By: 4 1 CC/ 7) Wanda Raggio City Clerk • 0 00 cm cm Z•9i 0 >Z ma mM 9 w w n .... w w W id r ro ro e O > aM N O N e N e 00 1> + 111 a e 10 V 4 N DEPUTY CHIEF. MARINE DIV. 1YHBUVN 311l4 l37H3 11Y8 38Id 43IH3 11V8 38Id r ro 43IN3 11V8 38I3 43017 NOI1VLLV8 310Id -1 r m con 0.4 to-4 n ro >a 0 oZ » m me ..m aay.M aau.W nnnnro **UMW -44uW WWMW. Z 00 N 4 V -1 W+ V 4 N -I O 0 W ro 4 V• N V 4 0 a 0 P N W+ 0 > r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 W n 4 a O a a a 0 N V U e O+ a a a 0 0 U 0 P 0+ a N 0 W 0 O•. •.I4n00 400 ca0 4411040 04040 .roS VO r r OW W V V a 0041111 .6..444.0 III + W ro a4W -1-J 00004 4 Zm O a n U n a OWN W + •J a s .40440W a s 0 wean > P 0 O 4+ 0 a 4 0 .s P e+ u W 0 a 0 0 V .60040 O N n N a 00 M- O -> 11�J uuWWW uwWWu unnnro 6144uro WWWnro Wroronro P a W a a u+ 0 0 e 4 0 0 N a 4 0 0 W+ 0 0 -4 O V 0 0 0 .11W O o ro A u O W n n 0 + 0a V M o 0 ro a w+ N n N U+ a V P a+ ro 0 W+ V O ....0 0 141 - V V e 0 M a N 0 0 0 e 00 A1333M-I8 44400 J-I P PO PPPON -1.1OO• -IPOPN • • • • • 0 0 0+ O N 0+ 0 u ro ■ 0 4 0 N W+ a N 0 n 0 U n W o 414040 0 -J 000410 4 0 M W e - 0 0+ WOW + O O P W n ro 0 0 0 0+ r 00a00 .�OOWro u0v4 .�eOWro WownO +WOrw -4 ..... ..... .... .... Z a O 0 n 0 O O n p a O O n V P O O n 0 a O n 0 a+ O P n V O Z 446444000U1.4 OVOu a+ O+ a a 0 V a+ a+ e+ 4 a 4I11 W 0+• a N V a+ > --4 W 04u 4040 --I n+-ac 44 U--4 04400 M-44J r S► '88N 35Vd CITY OF NEWPORT BEACH P.O. BOX 1768, NEWPORT BEACH, CA 92659-1768 May 6,1993 Ronald Sutherland, President Newport Beach Fire Management Association (NBFMA) PO Box 1768 Newport Beach, California 92658-8915 Dear Ronald Sutherland: Pursuant to Section 8 of City Council Resolution number 7173, the Employer -Employee Relations Resolution, the Newport Beach Fire Management Association (NBPMA) has petitioned the City of Newport Beach, California for recognition as the exclusive representative of a certain unit of the City employees for purposes of the Meyers-Milias-Brown Act, California Government Code section 3500 et seq. Pursuant to the aforesaid petition, the NBFMA requested to be recognized as the exclusive representative of the following unit employees: "All sworn public safety officers employed by the City Fire Department holding permanent classifications in the rank of Battalion Chief." Pursuant to Resolution #7173, the NBFMA provided the City with all information required therein including sufficient information establishing: (1) That the aforesaid unit is an appropriate unit of employees for the purposes of recognition pursuant to the Meyers-Milias-Brown Act; (2) That a majority of the employees within said unit desire to be represented by the NBFMA for the purposes set forth in the Meyers-Milias- Brown Act; (3) That the NBFMA meets all of the requirements for recognition as set forth in Resolution #7173. Pursuant to section 8 of Resolution # 7173, the City Representative, at his sole discretion, may grant recognition to a petitioner that meets the 3300 Newport Boulevard, Newport Beach criteria of an employee organization, as the exclusive representative to a defined employee unit. It is hereby my determination, that the NBFMA does meet the criteria set forth in Resolution # 7173 of an employee organization, and therefore I officially recognize the NBFMA as the exclusive representative for "All sworn public safety officers employed by the City Fire Department holding permanent classifications in the rank of Battalion Chief", and certify that the NBFMA shall enjoy this status from this date forward. Duanelc. Munson Director of Personnel NEWPURT BEACH FIRE DEPAR'i i 4ENT P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (714) 644-3103 March 30, 1993 Duane Munson Personnel Director City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mr. Munson: Timothy Riley Fire Chief Due to the fact that significant changes are being ccinsidered in the method used to determine the way city employees are compensated, a request that an extension of 35 days be given to Section 13 of Resolution No. 7173 in order to allow the following to be evaluated: Pursuant to California Government Code sections 3502, 3503, 3504, and City of Newport Beach Resolution No. 7173, the Newport Beach Fire Management Association seeks recognition as the representative organization for sworn officers of the Newport Beach Fire Department at the rank of Battalion Chief. The information contained in this document will correspond by letter with Section 7 of Resolution No. 7173. (A) The name of the organization shall be the NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION. (B) The officers of the organization are: President: BC Ron Sutherland Vice President: BC Don Jones Secretary: BC Scott Allan (C) The President and/or Vice President may speak on behalf of the organization. (D) A copy of the organization's Constitution will be provided within three (3) working days of approval of this request. (E) The organization's membership may be affiliated with the California State Firefighters' Association and/or the Orange County Firemen's Association. (F) Notice to the organization can be directed to the President or Vice President at P.O. Box 1768, Newport Beach, CA 92659-1768. 3300 Newport Boulevard, Newport Beach Duane Munson March 30, 1993 Page Two (G) The organization recognizes that Section 923 of the Labor Code is not applicable to City employees. (H) The organization has no restriction on membership based on race, color, creed, sex, national origin, or age. (I) The employees represented are all Fire Department Battalion Chiefs. They are: Ron Sutherland Don Jones Scott Allan Augie Wagner Nick Waite Tom Arnold Ray Brown (J) A signed statement from a majority of the group represented designating this organization as their representative is attached. (K) It is requested that the City Representative recognize the Newport Beach Fire Management Association as the majority representative of the employees in the Employee Group for the purpose of meeting and conferring in good faith on all matters within the scope of representation. Ron Suu t1erland, P ide t Newport Beach Fire Management Association Enclosure cc: Tim Riley Kevin Murphy The following undersigned employees of the Newport Beach Fire Department holding the officer rank of Battalion Chief, request representation from the Newport Beach Fire Management Association as our representative in our employment relations with the o wport Bea; Ron Sutherland Don Jones Scott Allan A. J. Wagner Nick Waite Tom Arnold Ray Brown Date—30r7.3 Date 3 Date 3 -' Date Date '3 "- 5 0 -15 �� / .2 '614 Date 3 -3 0 Date `�)P 9� CONSTITUTION OF THE NEWPORT BEACH ARE MANAGEMENT ASSOCIATION ARTICLE I (Title) Section 1. The name of the organization shall be known as the Newport Beach Fire Management Association. ARTICLE II (Purpose) Section 1. To establish an Association among the sworn managers of the Newport Beach Fire Department that will promote, provide and protect those ideals held for the furtherance of a professional fire service for the community of Newport Beach. To select representatives that will meet and confer with the city regarding matters that affect conditions of employment. ARTICLE III (Nature) Section 1. Membership in this organization does not affect a member's duties or responsibilities to the service of the fire department. Fire rank does not exist in this organization except with reference to representative groups for the purpose of elections. ARTICLE IV (Membership) Section 1. There shall be two types of membership: voting members and associate members. Section 2. Voting members are active duty members of the association who pay the required dues. Voting members shall have the right to vote on any issue 1 brought to a membership meeting and vote to elect representatives for the board of directors and meet and confer. Section 3. Associate members are any retired sworn member of the Newport Beach Fire Department who retired at the rank of battalion chief, or any member of the Newport Beach Fire Manager Association who retires with a service retirement from the Newport Beach Fire Department. An associate member is not entitled to vote. Section 4. The rights of voting membership shall not be denied to any full time employed sworn position at the rank of battalion chief of the Newport Beach Fire Department, or retired battalion chief for associate membership when such employee indicates his/her intention to join this organization, support its constitution, and pay dues required herein. ARTICLE V (Administration) Section 1. The executive and administrative power of this organization shall be vested in the Board of Directors which will be composed of three (3) members. Section 2. There shall be included in the Board of Directors: one (1) President, one (1) Vice President, and one (1) Secretary. Section 3. A quorum of the Board of Directors shall be two (2) members. Section 4. Any item before the Board of Directors that is a change in working conditions SHALL be submitted to the general membership for a majority vote. ARTICLE VI (Election of Office) Section 1. Any active duty member desiring to run for election to the Board of Directors shall submit his name in writing to the Board of Directors within 10 days of the opening of nominations and prior to the close of nominations. The nomination 2 period shall be December first (1) through December tenth (10) each voting year. Section 2. The Board of Directors shall be elected by the membership of the Association. The secretary shall prepare a printed ballot bearing the names of members nominated for election to the Board of Directors. One ballot shall be submitted to each member who shall proceed to ballot. The balloting period shall be at least seven (7) days, unless all members have voted prior to the last day. The ballots shall be placed in the ballot box. Section 3. The secretary, after the final voting date, shall open the ballot box and count the votes. The nominees receiving the greatest numbers of votes cast within the number of positions allotted for, shall be declared elected. Section 4. The President, Vice President, and Secretary shall be elected from the Board of Directors by the Board of Directors. Section 5. Each member of the Board of Directors shall be elected for a term of two (2) years beginning January first of the current year and concluding December thirty-first of the second year. ARTICLE VII (Removal from the Board of Directors) Section 1. Any member of the Board of Directors who becomes negligent in the performance of his duties, or guilty ofany act detrimental to the welfare of the association, may be removed from office by a two-thirds vote of the members. ARTICLE VIII (Vacancies) Section 1. When a vacancy occurs of the. Board of Directors the vacancy shall be filled in the manner prescribed under ARTICLE VI and will be for the balance of the term of the member being replaced. When a vacancy occurs to a Meet and Confer Representative the vacancy shall be filled in the manner prescribed under ARTICLE IX and will be for the balance of that year. 3 ARTICLE IX (Meet and confer representation) Section 1. During the first month of each calendar two year the members shall elect two (2) members to meet and confer with the city regarding working conditions, salaries, benefits, and related items. ARTICLE X (Incorporation) Section 1. The Board of Directors shall have the power and authority to incorporate this organization under the laws of the State of California. ARTICLE XI (Amendments) Section 1. This constitution shall be amended by a favorable vote of two-thirds of the membership. Such a vote shall be by ballot after such amendment or amendments shall have been submitted in writing, entered into the minutes, and noticed by publication of the proposed change or changes and the date of balloting. Such publication to be at least ten (10) days prior to the date selected for balloting. The balloting period shall be at least seven (7) days unless all members shall have voted prior to the last day. ARTICLE XII (Ratification & Amendments) Section 1. This constitution shall be in full force and effect immediately upon adoption and shall supersede and render null and void any existing constitution and by- laws of any previous Fire Association. Section 2. Any amendments to this constitution shall be in full force and effect immediately upon adoption. 4 • ARTICLE XIII (Membership meetings) Section 1. Membership meetings may be called by the Board of Directors or by two (2) members, providing at least 24 hours notice to members is given. Notice of the meetings must state generally the business to be transacted, and the time and place of the meeting. Notice of the meeting must be posted. Membership meetings shall be chaired by a member of the Board of Directors in order of secession. Section 2. For all membership meetings a quorum shall consist of four (4) eligible members entitled to vote. Section 3. Members entitled to vote at any meeting of members shall be members in good standing. Voting may be by voice, hand or ballot. Written proxies are permitted provided they have been signed and dated by the absentee member, and contain the name of the bearer. Absentee ballots shall be collected by the sergeant at arms. Each member entitled to vote shall cast one (1) vote on each matter submitted to a vote of the members. If any member requests the vote be by ballot, that shall be the method of voting. Section 4. If a quorum is present, the affirmative vote of a simple majority of the voting power represented at the meeting, entitled to vote and voting on any matter, shall be the act of the members. A simple majority is defined as 50% of those voting plus one. Section 5. The Chairman of each meeting of the general membership shall appoint a Sergeant at Arms for that meeting. Should a dispute arise as to the conduct of any matter at a meeting of the general membership, the Sergeant at Arms will use "Roberts Rules of Order" to settle the dispute. ARTICLE XIV (Records) Section 1. The Secretary shall keep records of all meetings. Minutes of all meetings shall be made and distributed to all members by the Board's Secretary. 5