HomeMy WebLinkAbout20 - Amendment to MOU and Supplemental MOU - NBPMA, NBFMA and Fire Fighters Association• June 23, 1997
Agenda Item No. 20
CITY OF NEWPORT BEACH. _
ADMINISTRATIVE SERVICES DEPARTMEN }�
Resource Management Division JUN 2 3M
June 23, 1997 C — D 0490
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY
FROM: Dennis Danner, Administrative Services Director 4. 41
SUBJECT: AMENDMENT TO MEMORANDUM OF UNDERSTANDING AND
SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING - NEWPORT
BEACH POLICE MANAGEMENT ASSOCIATION, FIRE MANAGEMENT
ASSOCIATION AND FIRE FIGHTERS ASSOCIATION
DISCUSSION:
The Total Compensation Formula that presently exists in the Memorandums of Understanding
with the Newport Beach Police Management, Fire Management, and Firefighters Associations is
made up of Salaries, Employer Retirement Contribution, Employee Retirement Contribution, and
Health Insurance benefits. The City's Employer Retirement Contribution is scheduled to increase
approximately 3.2% on July 1, 1997. Under the existing Total Compensation Formula for these
associations, this increase would necessitate a decrease in employee's salaries since total
compensation is not scheduled to change on July I". This process follows past practice whereby
salaries would increase or decrease in inverse proportion to the increase or decrease to the
Employer's Retirement Contribution rate.
We have been negotiating with these associations for over 6 weeks to seek a solution to this
dilemma of reducing salaries. The following is a summary of the outcome of these negotiations:
1. The agreements that are scheduled to expire on December 31, 1997 have been extended
to December 31, 1998.
2. A 2% salary increase has been approved for the period January 1, 1998 to December 31,
1998.
3. The Total Compensation Formula has been revised to remove the Employer Retirement
Contribution from the formula, thus creating a Modified Total Compensation Formula.
This Modified Total Compensation Formula will be in existence only until December 31,
1998.
4. Based upon the Modified Total Compensation Formula, the City will pay any increase in
the Employer Retirement Contribution on July 1, 1997.
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5. Commencing in October of 1998, and October 1999, and 2000, the City and Associations
will meet and confer on all matters within the scope of representation with the intent to
reach an agreement on an MOU to be effective the first pay period the following January.
6. In negotiating adjustments to compensation, the City and Associations shall consider
information regarding salaries and benefits paid by other Law Enforcement Agencies 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 the City or
Associations considers relevant to the issue.
T Effective the first pay period in July, 1998, 1999, 2000, and 2001, the City shall, if
necessary, adjust total compensation, using the expired Modified Total Compensation
Formula, to the average of the 5 highest paid benchmark positions in Orange County.
This is a "fail-safe" arrangement to make sure that association members do not fall below
the compensation level they would have achieved had the Modified Total Compensation
Formula not expired on December 31, 1998. After 2001, there will be no reference to a
compensation formula in the Memorandums of Understanding with these Associations.
The total cost of these adjustments are estimated at $650,000, and are factored into the City's i
estimated General Fund fiend balance for the 1997-98 fiscal year. The Associations are currently
voting on this proposal, and if approved by the City Council and the Associations, will become
effective for the first pay period of July, 1997.
RECOMMENDATION:
That the City Council approve the attached Amendments to Memorandums of Understanding
and Supplemental Memorandums of Understanding for the Newport Beach Police Management
Employees, Fire Management Employees, and Firefighters Associations, to be effective on July
1, 1997.
C:\WINWORDIDENN[SWP\STAFFREP.DOC 06/17/97 7:12 AM
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is AMENDMENT TO MEMORANDUM OF UNDERSTANDING
This Amendment to the current Memorandum of Understanding between the City
of Newport Beach (City) and the Newport Beach Police Management Association
(NBPMA) is dated for purposes of identification and is based on
the following:
RECITALS
A. City and NBPMA are Parties to a Memorandum of Understanding
that currently expires on December 311, 1997 (Current MOU);
B. Subsequent to execution of the Current MOU, 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 practice, the
compensation paid to NBPMA members is negotiated and established on the
basis of "Total Compensation" which consists of three (3) 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,
City has increased the salaries of NBPMA members when PERS has decreased
the employer retirement contribution rate and decreased salaries when PERS
has increased the employer retirement contribution rate;
E. NBPMA members would experience substantial reductions in
salary if, on July 1, 1997, City followed the established past pattem/practice in
response to increases in PERS' employer contribution rates;
F. City and NBPMA intend, through this Amendment to:
1. Extend the term of the Current MOU for a period of one (1)
year;
2. Modify or eliminate certain provisions of the Current MOU
and eliminate the past pattern/practice of reducing the salary
of NBPMA members in response to increases in the PERS'
employer contribution rate;
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3. Eliminate provisions in the Current MOU, and the long- .
standing pattem/practice, which mandate consideration of
certain criteria in negotiating increases in Total
Compensation, subject to execution of a Supplemental MOU
(SMOU - copy attached as Exhibit "C'J which commits 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
follows;
Paragraph "2" of the Preamble is amended to read as
"NBPMA 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."
Section 1B1 is amended to read as follows:
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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."
3. The provisions of Section 2A of the Current MOU are
deleted in their entirety. This deletion confirms and implements the intent
of the Parties that, subject to the provisions of the SMOU, the
"Compensation Policy" is of no force or effect as of the effective date of
this Amendment. This deletion also confirms and implements the intent
and understanding of the Parties to eliminate, subject to provisions of the
SMOU, the long-standing pattern/practice which mandates the use of
Total Compensation as the basis for, and the consideration .of specific
criteria in, negotiating salaries and benefits.
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4. Section 2B1 (a) is amended to read as follows:
• A. Direct Wa-ge Payments
1. Pay for Time Worked
"(a) Salary Adjustments: The Parties have agreed on internal
relationships among the various classifications represented by
NBPMA, as well as the relationship between each step in those
classifications and the Benchmark Position. The term Benchmark
Position shall mean the top step non -specialty police officer of any
municipal police department in Orange County and top step Patrol
Deputy for the County of Orange without consideration of special
pay or benefit categories or designations such as Master Officer or
Senior Officer which are based on a combination of experience,
training or education. These internal relationships have been
computed in terms of numbers which, when multiplied by the
Criteria Salary (the salary that must be paid to the Benchmark
Position in Newport Beach to achieve the appropriate level of Total
Compensation or Modified Total Compensation and not the salary
actually paid to the Benchmark Position in Newport Beach which is
beyond the control of the Parties) represent the salary to be paid to
the classifications represented by NBPMA. The multipliers for each
step of each classification represented by NBPMA are shown on
the Matrix attached as Exhibit `B". The matrix shall be effective
on January 1, 1996. The salaries of classifications represented by
NBPMA shall be subject to the following mandatory adjustments
calculated and implemented in accordance with the foregoing:
(i) Effective the first pay period of January, 1997, the Total
Compensation for all classifications represented by NBPMA
shall be increased by fifty percent (50%) of the difference, as
of July 1, 1996, between the Total Compensation of the
Benchmark Position in City and the average Total
Compensation of the five (5) Benchmark Positions with the
highest Total Compensation. The ranking and average Total
Compensation of the five (5) Benchmark Positions with the
highest Total Compensation of the Benchmark Position as of
July 1, 1996 shall be calculated on the basis of the survey
conducted by the Orange County Division of the League of
California Cities (League Survey) as verified and/or
augmented by telephonic or written communication by the
City and/or NBPMA, the results of which shall be made
0 available to the other Party. The term Total Compensation
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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.
(ii) Effective the first pay period in July, 1997, the Total
Compensation for all classifications represented by NBPMA
shall be increased by the remaining fifty percent (50%) of
the difference, as of July 1, 1996, between the Total
Compensation paid to the Benchmark Position in City and
the average Total Compensation paid to the five (5)
Benchmark Positions with the highest Total Compensation.
(iii) Effective the first pay period in January, 1998, City shall
increase salaries for all classifications represented by
NBPMA by two percent (2%). NBPMA shall be entitled to
reopen negotiations solely on the issue of appropriate salary
adjustments as of the first pay period iri 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%).
B. PERS Rate Increases
(i) Effective July 1, 1996, 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 NBPMA member.
(ii) Effective July 1, 1997, 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
NBPMA member
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5. Section 2132(e) is added to read as follows:
(e) NBPMA members shall receive two hours of Flex Leave in
addition to their normal Flex Leave accrual for each quarter
(January through March, April through June, July through
September and October through December) during the
period from May 1, 1995 through June 30, 1997 in which
he/she is assigned to work any 3/12 shift. Effective July 1,
1997, NBPMA members shall receive two hours of Holiday
Pay in addition to their normal Holiday Pay for each quarter
in which he/she is assigned to work any 3/12 shift.
6. Section 2132(f) is added to read as follows:
(f) NBPMA members who were employed by City on February
1', 1996 shall receive Flex Leave equal to one and one-half
times the hours worked during their normal daily work shift
as scheduled in the month of February, 1996. This grant of
Flex Leave to NBPMA members does not create, and is not
evidence of, any pattern or practice of granting Flex Leave
or other consideration for working assigned shifts during any
future leap year. NBPMA agrees that City has the right, in
the future, to respond to the need to staff February 29"'
without granting any additional Flex Leave by, among other
options, reducing manpower on certain shifts, modifying
assignments/ schedules, or scheduling an additional day off.
SECTION 2. Contingency
The SMOU constitutes the primary consideration for NBPMA's Agreement
to eliminate provisions of the Current MOU (Section 2A) and the long-standing
pattern/practice which mandate consideration of certain criteria in negotiating
adjustments to Total Compensation. The SMOU ensures that the Modified Total
Compensation paid to NBPMA members will remain 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.
Signatures
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SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING 0
This Supplemental Memorandum of Understanding (SMOU) between the
City of Newport Beach (City) and the Newport Beach Police Management
Association (NBPMA) is dated the _ day of 1997 for purposes
of identification and is based on the following:
A. City and NBPMA have entered into an agreement to amend
provisions of the Current MOU (Amendment - copy attached)
B. The 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. The 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 Ah
ensure that Modified Total Compensation for NBPMA members is, OW
specified dates during the term, 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, League Survey and Criteria Salary shall be defined/ calculated
as specked 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
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 by
other Law Enforcement Agencies 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. SuDolemental 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 NBPMA members to a level 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
NBPMA with the results of verification to be shared by the Parties.
5. Adjustment Procedures
Once the appropriate adjustment in Modified Total Compensation 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 calculate the corresponding increase
in the Criteria Salary for the Benchmark Position in Newport Beach
necessary to achieve the appropriate level of Modified Total
Compensation and adjust salaries for all classifications represented by
NBPMA in accordance with the multipliers in the Matrix.
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AMENDMENT TO MEMORANDUM OF UNDERSTANDING
This Amendment to the current Memorandum of Understanding between the
City of Newport Beach (City) and the Newport Beach Fire Management
Association (NBFMA) is dated this _ 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 31St, 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 pattem/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 pattern/practice in
response to increases in PERS employer contribution rates;
F. City and NBFMA intend, through this Amendment to:
Extend the term of the Current MOU for a period of one year;
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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
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 1131 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."
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4. The provisions of Section 2A of the Current MOU are modified to read
as follows:
A. Pay for Time Worked
1._ Salary/Total Compensation Adiustments
(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
change in overtime compensation provided in Section 4
(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
is enrolled in the health plan having the largest number 0V
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 speck 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 specked 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 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
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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 link
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.
Signatures
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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 _ day of , 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
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authorized representatives of the Parties; and (b) upon execution of the
Amendment by authorized representatives of the Parties. 0
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
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 Adjustments.
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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. Adjustment 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
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NBFMA in accordance with the Matrix while maintaining the salary
differentials specified in the Amendment.
SMOUF1
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AMENDMENT TO MEMORANDUM OF UNDERSTANDING
This Amendment to the current Memorandum of Understanding between the
City of Newport Beach (City) and the Newport Beach Firefighters Association
(NBFA) is dated this _ of , 1997, for purposes of
identification and is based on the following:
RECITALS
A. City and NBFA are parties to a Memorandum of Understanding that currently
expires on December 31', 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 20166
C. According to the Current MOU and long-standing pattern/practice, the
compensation paid to NBFA 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 NBFA members when PERS has
decreased the employer retirement contribution rate and decreased salaries
when PERS has increased the employer retirement contribution rate;
E. NBFA members would experience substantial reductions in salary if, on July
1, 1997, the City followed the established past pattern/practice in response
to increases in PERS employer contribution rates;
F. City and NBFA intend, through this Amendment to:
1. Extend the term of the Current MOU for a period of one year;
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2. Modify or eliminate certain provisions of the Current MOU and eliminate
the past pattern/practice of reducing the salary of NBFA members in
response to increases in the PERS employer contribution rate;
3. Eliminate provisions in the Current MOU, and the long-standing
pattern/practice, which mandate 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
Paragraph "2" of the introductory paragraphs is amended to read as
follows;
"NBFA representatives and City representatives have reached a
tentative agreement as to wages, hours and other terms and conditions
of employment for the period from January 1, 1996 to December 31, 1998
and this tentative agreement has been embodied in this MOU."
Paragraph "3" of the introductory paragralihs is amended to read as
follows:
" The City acknowledges and appreciates the cooperation of
NBFA during the meet and confer process leading to the adoption of the
1996-98 MOU.
3. Section 1131 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."
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4. The provisions of Section 2A of the Current MOU are deleted in their
entirety. This deletion confirms and implements the intent of the Parti
that, except to the extent embodied in the SMOU, the "Compensation
Policy" is of no force or effect as of the effective date of this Amendment.
This deletion also confirms and implements the intent and understanding
of the Parties to eliminate, except to the extent embodied in the SMOU,
the long-standing pattem/practice which mandates the use of Total
Compensation as the basis for, and the consideration of specific criteria
in, negotiating salaries and benefits.
5. Section 2B1 is amended to read as follows:
A. Direct Wage Payments
1. Internal relationships.
The Parties have agreed on salary differentials (Internal
Relationships) among the various classifications
represented by NBFA, as well as the relationship between
each step in those classifications and the Benchmark
Position. The term Benchmark Position shall mean the top
step firefighter of any municipal fire department in Orange
County without adjustment for any speck combination
experience, training or education. These internal
relationships have been computed in terms of percentages
which, when multiplied by the salary paid to the Benchmark
Position in Newport Beach, represent the salary to be paid
to the classifications represented by NBFA. 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 percentages for NBFA classifications are
as follows:
Classification Percents
Engineer 112.50%
Paramedic
122.25% Fire Specialist
125.00% Line Captain
132.00% Staff Captain/Deputy Fire Marshal
139.50%
The adjustments to Total Compensation required by
Section 2A2 shall maintain these internal relationships.
6 Section 2B2 shall be amended to become 2A2 and to read as follows:
2. Total Compensation Adjustments/PERS Commitments
City shall adjust the Total Compensation of NBFA Members and
assume increases in the PERS employer retirement contribution
rate as follows:
(a) Effective the first pay period of October, 1996, the
Total Compensation for the Benchmark Position in Newport
Beach shall be increased by fifty percent (50%) of the
difference, as of July 1, 1996, between the Total
Compensation of the Benchmark Position in Newport
Beach and the average Total Compensation of the five (5)
Benchmark Positions with the highest Total Compensation.
The ranking and average Total Compensation of the five (5)
Benchmark Positions with the highest Total Compensation
of the Benchmark Position as of July 1, 1996 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) as verified and/or
augmented by telephonic or written communication by the
City and/or NBFA, the results of which shall be made
available to the other Party. The Total Compensation of all
other classifications represented by NBFA shall be adjusted
as of the same pay period in accordance with the
procedures specified in Subsection 2 A 1.
(b) Effective the first pay period in July, 1997, the Total
Compensation paid to the Benchmark Position in Newport
Beach shall be adjusted to equal the average Total
Compensation paid to the five (5) Benchmark Positions with
the highest Total Compensation as determined by the
League Survey for July 1996. The Total Compensation for
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all other classifications represented by NBFA shall be
adjusted as of the same pay period and in accordance wii
the procedures specified in Subsection 2 A 1.
(c) Effective the first pay period in January, 1998, the City
shall increase salaries for all classifications represented by
NBFA by two percent (20!0). NBFA 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%).
(d) Effective October 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 NBFA member.
(e) 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 Compensat*
of any NBFA member
SECTION 2. CONTINGENCY
The SMOU constitutes partial consideration for NBFA's agreement to
eliminate provisions of the Current MOU (Section 2A) and a long-
standing patternipractice which mandate consideration of certain criteria
in negotiating adjustments to Total Compensation. The SMOU ensures
that the Modified Total Compensation paid to NBFA members will remain
at least equal to the average Modified Total Compensation of the five (5)
Benchmark Positions (excluding the Benchmark Position in Newport
Beach) 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.
signatures
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! SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING
This Supplemental Memorandum of Understanding (SMOU) between the
City of Newport Beach (City) and the Newport Beach Firefighters Association
(NBFA) is dated the _ day of , 1997 for purposes of identification
and is based on the following:
A. City and NBFA 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 NBFA members, on
specified dates during the term of this SMOU, corresponds to a level
of Total Compensation paid to the Berichmark 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
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authorized representatives of the Parties; and (b) upon execution of the
Amendment by authorized representatives of the Parties. 0
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
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 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 Adjustments.
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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 NBFA 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 NBFA with the
results of verification to be shared by the Parties.
5. Adjustment 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
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NBFA in accordance with the Matrix while maintaining the salary
differentials specified in the Amendment.
SMOUFI