Loading...
HomeMy WebLinkAbout08 - Newport Beach Fire Management Association Labor Agreement� CITY OF NEWPORT BEACH! COUNCIL STAFF REPORT Agenda Item No. 8 August 14, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Dave Kiff, City Manager APPROVED: �LN—, 1(-^A. V TITLE: Labor Agreement: Newport Beach Fire Management Association ABSTRACT: The City's negotiators and the Newport Beach Fire Management Association have reached a tentative agreement on a Memorandum of Understanding (MOU) for the term of January 1, 2012 through June 30, 2014. The Council's ratification of the MOU would complete the agreement. RECOMMENDATION: Authorize Mayor Gardner to execute a Memorandum of Understanding (MOU) with the Newport Beach Fire Management Association ( NBFMA). Adopt Resolution No 2012 -76 to change the reporting of the Employer Paid Member Contribution (EPMC) for the PERS retirement benefit (as provided for in the proposed MOU). FUNDING REQUIREMENTS: See financial information in the body of the discussion text. DISCUSSION: The Fire Management Association is the recognized labor bargaining unit for employees in the classifications of Fire Battalion Chief and Fire Division Chief. The Memorandum of Understanding between the City and the NBFMA expired December 31, 2011 and City and NBFMA negotiators have been meeting and conferring since November 2011 on a successor MOU. A number of key issues took time to address and it was necessary for negotiations to continue past the expiration date. Labor Agreement: Newport Beach Fire Management Association August 14, 2012 Page 2 Consistent with direction provided by the City Council in closed session, which was in accordance with the Brown Act Section 54957.6 that authorizes the City Council to confer with the City's negotiators, the City and NBFMA have reached a tentative agreement. The principal provisions of the Memorandum of Understanding between the City and NBFMA are as follows: 1. Term — January 1, 2012 through June 30, 2014, 2. Pension Contributions - Employer -Paid Member Contribution (EPMC): a. NBFMA members currently contribute 3.5% of base pay to the City to help offset retirement costs. Under the new MOU this deduction would roll into a permanent contribution of 3.5% of compensation towards the "Employee Share" of the 3% at 50 Pension program for current employees. Concurrently with the timing of this 3.5% switch, the amount paid and reported as EPMC would reduce from 9% to 5.5 %. b. NBFMA members would, in the course of the MOU, pay an additional 5.5% of compensation towards the Employee Share, making the total paid by employees nine percent (9 %). Nine percent is the full "Employee Share" for the PERS 3% at 50 Safety formula. Each time an additional percentage is paid by the employee, EPMC would be reduced until it reaches zero (and would be reported as zero). c. To institute the changes to the Employer Paid Member Contribution the City Council must rescind prior agreements and adopt a Resolution defining the new terms (Attachment B). 3. 2nd Tier for New Hires. This MOU proposes that new employees to the NBFMA membership be brought in under the following "2 "d Tier" retirement formula: a. A hybrid formula combining a "Defined Contribution (DC)" and a "Defined Benefit (DB)" plan. The defined benefit would be a 2% at 50 Formula, with the new employee paying the full 9% employee share, 0% EPMC, and the employee's pensionable salary being based on the highest three -year average compensation. The DC side would be a voluntary contribution made by the employee of 1.5% of salary (or more, if the employee seeks to do so). The City would match any contribution up to 1.5 %. 4. Cost of Living Adjustment (COLA). This MOU proposes the NBFMA membership receive two "collared" COLAs. Both would be based on the change in the Consumer Price lndex (CPI) from generally a year prior with a floor of 1% and a cap of 2 %. As a result, the minimum COLA in this MOU period would be 2% with the maximum at 4 %. The current cost of living has been increasing at slightly more than 3% per year. Labor Agreement: Newport Beach Fire Management Association August 14, 2012 Page 3 5. Medical Insurance Contribution. The City's "cafeteria" plan sets aside a sum of money per month for each employee to purchase medical insurance from one of the City's vendors, or to take cash if other insurance is available through a spouse or partner. Currently, NBFMA members receive $1,049 1month plus an additional amount if they are in a PERS medical program. This MOU proposes that the City's contribution gradually increase to $1,274 /month over the course of the MOU. 6. Other Items. The negotiators have tentatively agreed to these additional changes: a. Severance pay would be capped at 10 weeks (otherwise one week for every year worked in Newport Beach). b. Salary range adjustment of 0.5% to maintain salary alignment with classifications in the Firefighters Association. c. Assignment pay for Battalion Chiefs assigned to a staff position. d. "Unit Pay." New hires would not be eligible for Scholastic Achievement Pay if they received only educational units, not degrees. e. If a person separates from employment, cash -out of certain leave time would be at 100% of the amount, not 109% as was in the prior MOU. f. Reduction of leave accrual maximums from 78 times the bi- weekly benefit to 52 times the bi- weekly benefit. g. Persons who opt -out of the City's Medical Plans (and who have other insurance) have a cap of $1,149 1month. The estimated fixed costs to implement the provisions of this MOU are about $19,508 over the 30 month term, but this does not include quantification of any savings associated with eliminating "PERS on PERS" as well as reducing the overall pensionable compensation curve for FMA members (savings estimated at about $35,000 — resulting in a net savings with this MOU of about $15,000 over the 30 -month term). I will conclude this staff report noting my appreciation for the cooperative spirit with which the NBFMA approached these MOU discussions. MOU discussions are never easy, and they were especially challenging this term, as the City sought additional pension contributions. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) Labor Agreement: Newport Beach Fire Management Association August 14, 2012 Page 4 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: _�. - L� ., Dave Kiff City Manager Attachments: A. Proposed Memorandum of Understanding with NBFMA B. Resolution to Modify EPMC Reporting 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, 2012 to June 30, 2014 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 2012 -2014 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 1 NBFMA MOU 2012 . 2014 C} 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. 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, age, sexual orientation, or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 2 NBFMA MOU 2012 - 2014 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, age, sexual orientation, or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E -Marl may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains ali 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. 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. 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 in Exhibit A. 2. 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 CPl 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 e 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 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' /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 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 j C 0 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: lob class range 2 or more 30 1.5% 3 or more BO 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 E F 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 De ree 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. Court Standby PaV 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 1 j 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 /Pav Period Hours /Pav Period Increase 2. The Flex ieave program shall be administered as follows: 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 1', Line Employees Staff Employees Less than 5 9.77 6.97 0.00% 5 but less than 9 10.69 7.63 0.00% 9 but less than 12 11.62 8.33 0.00% 12 but less than 16 12.54 8.95 0.00% 16 but less than 20 12.54 8.95 1.5% 20 but less than 25 12.54 8.95 2.5% 25 and over 12.54 8.95 3.5% 2. The Flex ieave program shall be administered as follows: 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 1', 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 members 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 17 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. 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 NBFMA MOU 2012 - 2014 1 t.i F L Jury Du 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 (112) 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 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: LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE PERCENT OF UNUSED SICK LEAVE: NONE 25% 37.5% 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 Ir_ 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 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. 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 517. 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 12 NBFMA MOU 2012 • 2014 (. 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 employers 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.- • January 1, 2012, the City's contribution towards the Cafeteria Plan will increase to $1,149 (plus the minimum CaIPERS participating employer's contribution.) • January 1, 2013, the City's contribution towards the Cafeteria Plan will increase to $1,174.00 (plus the minimum CalPERS participating employee's contribution.) • 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 1 / t., n 4 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. 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 Maximum Benefit Minimum Benefit 66.67% gross weekly wages $1 0,000/month $50 Waiting Period 30 Calendar Days 14 NBFMA MOU 2012 - 2014 1 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 `1 individual member's normal employee PERS contributions required to be paid to PERS. Said payment shall be made pursuant to Government Code § 20691. 2. 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). 3. 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 § 2O636(c)(4) or by any other authority. 4. New Hires — 2r' 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 J(' 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 PEPS 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. 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. 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 Vi based on status as of December 31 �`i 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 specfes 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 PIERS 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 CalPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. 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 r 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. 2. Non- Collene 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. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. 22 NBFMA MOU 2012 - 2014 v (f 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 speck 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, 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 23 NBFMA MOU 2012 - 2014 ..� 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; 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 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. 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 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. 25 NBFMA MOU 2012 - 2014 'hC1 B. Discipline Plan Employees of this Association are exempt from disciplinary leave of less than five (5) days. C. Fire Suppression Staffinq 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 5140, 4110 or 9180 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to 9 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 personaUprofessional obligations. In addition, occasionally and at the discretion and approval of the Fire Chief, FLSA exempt employees working a 4110 or 9180 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. 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. Signatures on the following page 26 NBFMA vlOU 2012 - 2014 `' Executed this day of August, 2012. NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION (NBFMA) By: G4— Chip Duncan, President, NBFMA By: j�� eff Boyles, % e= PJesident, NBFMA CITY OF NEWPORT BEACH ATTEST: 2.1 Nancy Gardner, Mayor Leilani Brown, City Clerk APPROVED AS TO FORM: By: A — C 6. ��' Aaron Harp, City Attorney 27 NBFMA MOU 2012 - 2014 �� Class Code F315 FXXX F305 F306 EXHIBIT A FIRE MANAGEMENT ASSOCIATION REPRESENTED CLASSIFICATIONS Classification Fire Line Battalion Chief Staff (Training) Battalion Chief Fire Division Chief Fire Line Division Chief m Compensation Section 2 (A) (1) F315 + 7.5% F315 + 12.5% F315 + 12.5% NBFMA MOU 2012 - 2014 / a ' ATTACHMENT B RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RESCINDING RESOLUTION NO. 94-47 TO MODIFY THE PAYING AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION WHEREAS, the City Council of the City of Newport Beach previously adopted Resolution No. 9447 to pay and report the value of the 9% Employer Paid Member Contribution (EPMC) to CaIPERS for employees represented by the Newport Beach Fire Management Association; and WHEREAS, the City Council of the City of Newport Beach has the authority to implement Government Code Section 20636(c)(4) pursuant to Section 20691 to report the value of the Employer Paid Member Contribution if provided for in a labor agreement; and WHEREAS, the City Council of the City of Newport Beach and the Newport Beach Firefighters Association have a written agreement which specifically provides a portion of the normal member contribution to be paid by the employer and reported as additional compensation; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Council of the City of Newport Beach of a resolution to modify the paying and reporting of the EPMC; and WHEREAS, the City Council of the City of Newport Beach has identified the following conditions for the purpose of its election to pay and report the value of the EPMC. NOW, THEREFORE, the City Council of the City of Newport Beach does RESOLVE to pay and report the value of EPMC as follows: Section 1. This benefit shall apply to all employees represented by the Newport Beach Fire Management Association (NBFMA). Section 2. Effective August 25, 2012 this benefit shall be modified to consist of paying 5.5% of the normal contributions as EPMC and reporting the same percent (value) as compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. Section 3. Effective the first payroll period commencing on or after January 1, 2013, this benefit shall be modified to consist of paying 2.0% of the normal contributions as EPMC and reporting the same percent (value) as compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. Section 4. Effective the first payroll period commencing on or after July 1, 2013, this benefit shall be modified to consist of paying 0% of the normal contributions as EPMC and reporting the same percent (value) as compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. Adopted this day of August, 2012 m ATTEST: City Clerk Mayor of the City of Newport Beach