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HomeMy WebLinkAbout06 - Firefighters Association MOUCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No 6 November 8, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport - beach.ca.us SUBJECT: Memorandum of Understanding with Firefighters Association RECOMMENDATION: Approve the Memorandum of Understanding (MOU) with the Firefighters Association for the three -year period of January 2005 through December 2007. DISCUSSION: Background_ The MOU with the Firefighters Association expired on December 31, 2004. As with the MOUs with our police associations, one of the most important issues for this employee group was an improved retiree medical program. The complexity of this issue resulted in negotiations taking more time than usual. In addition, the Firefighters were very interested in the enhanced retirement benefit of 3% @ 50. Negotiating terms on this issue was also challenging and time consuming. We have concluded the negotiations and reached tentative agreement with the Association, pursuant to direction from the City Council, and the members have ratified the agreement. Summary of MOU Provisions: 1. Term: 3 years 2. Salary Adjustments: 2% January 2005 1 % July 2005 3% July 2006, plus 1% for contribution to retiree medical ■ 2% July 2007 MOU with Firefighters Association November 8, 2005 Page 2 Nearby fire agencies, including Santa Ana, Costa Mesa and Orange County, have increased salaries and Newport Beach had fallen behind the market. 3. Bilingual Pay: The City has paid police employees who have bilingual skills for several years, because these skills help the City to provide better service to the entire community. The most recent MOUs with non - safety employees have provisions for bilingual pay. This MOU provides the same pay for Firefighters as Police Officers. 4. Flex Leave: Eliminate "2 "d tier" When the City was experiencing budget challenges in the 1990's as a result of ERAF !, the employee associations agreed to the reduction of flex leave accrual rates for employees hired after October 1, 1996. The lower level of leave accrual has become a recruitment problem, which is a concern as the Fire Department expects a number of employees to retire in the near future. This change would equalize flex leave accrual rates, prospectively only; it would not result in adding accrued leave for any period prior to the January 1, 2005 effective date of this MOU. 5, Health Benefit: $722 per month July 2005 $788 per month January 2006 $854 per month January 2007 The January 2005 increase will bring the Firefighters to the same level as the non - safety employees, and the increase of $50 in the following years addresses the ongoing increases in medical insurance costs. 6. Retiree Medical Benefit: Effective December 31, 2005, the City will provide a new retiree medical program. The City now provides a defined benefit program, with the City, active employees and retirees sharing the costs. Several years ago, we addressed the unfunded liability of this program, and the City and employees agreed to make additional contributions to begin funding that liability. We have made progress, but as health care costs have increased, employees grew concerned about the adequacy of the $400 per month cap on the benefit as well as ongoing contributions to the City's liability for the program. The new program is a defined contribution program, through which each employee will have an account to be used for his or her medical needs during retirement. Contributions to the account will be made by both the employees and the City, and invested as determined by each employee. Employees who are closer to retirement would not be able to accumulate a sufficient amount in their accounts, so the program also provides MOU with Firefighters Association November 8, 2005 Page 3 for some employees to remain on the existing plan and the MOU includes conversion thresholds. 7. Tuition Reimbursement: Some of the education and training needed for professional development in the fire service is not available at colleges, but through other seminars and workshops. The MOU expands the types of courses that are eligible for reimbursement, up to the existing amount of $1,000 per year. 8. Retirement Benefit: Firefighters now have the 3 % @55 retirement benefit, while the police employees received 3 % @50 three years ago. In addition, Newport Beach is the only Orange County fire agency that does not provide 3 % @50, with the exception of one city that provides additional salary instead of enhanced retirement. The MOU provides that the City will provide 3 % @50 by December 31, 2007, at the very end of the MOU term. The Association agreed to a three -year term (when other associations have had only two - year terms), and agreed to a lower salary increase in the final year of the MOU, in exchange for the enhanced retirement benefit. Funding Availability: Staff estimates the cost of implementing this MOU to be approximately $212,000 for the first six months, funds for which were available in the 2004 -05 budget. For fiscal year 2005 -06, the cost is estimated to be $281,000. Funds for these salary and benefit increases are included in the 2005 -06 budget. Submitted by: Sharon Wood Assistant City Manager Attachment: Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters Association MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIREFIGHTERS ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: 1. The Newport Beach Firefighters Association, International Association of Firefighters, Local 3734 ( "NBFA "), a recognized employee organization, and the City of Newport Beach ( "City "), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBFA representatives and City representatives have reached a tentative agreement as to wages, hours and other terns and conditions of employment for the period from January 1, 2005 to December 31, 2007 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFA during the meet and confer process leading to the adoption of the 2005 -2007 MOU. 4. This MOU, upon approval by NBFA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 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 NBFA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer /Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBFA. B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of January 1, 2005. This MOU shall remain in full force and effect until December 31, 2007, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. C. Release Time 1. NBFA members shall be allowed to participate in the following activities and receive full pay ( "Release Time "): a. Attendance at meetings, conferences, seminars or workshops related to matters within the scope of representation; b. To prepare for, travel to, and attend scheduled meetings between the City and NBFA during the meet and confer process. 2. City grants NBFA 288 hours of Release Time per calendar year to engage in the activities described in subsection 1(a). Unused hours from any calendar year may be carried over to the next year not to exceed a total City provided release time accrual of three hundred (300) hours. 3. City grants NBFA members the right to engage in the activities described in subsection 1(b) at any time without reduction to the Release Time granted in subsection 2. 4. NBFA shall designate certain members as those members entitled to release time. In no event shall any one designate be entitled to use more than 100 hours (150 hours for the Association President 2 only) of Release Time (exclusive of actual time spent meeting with City representatives on matters relating to the scope of representation), within any calendar year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of Release Time. Requests for Release Time shall be granted by the supervisor unless there are specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. 5. In addition to City — provided Release Time and Release Time provided pursuant to subparagraph (3), NBFA members may contribute earned paid time off to an NBFA Release Time Bank. Members may contribute earned time only during the period from July 1 through August 15th during any calendar year. During 2005 only, members may contribute time earned prior to July 1, 2005 until December 30, 2005. However, members shall not have the right to contribute time to the NBFA Release Time bank if NBFA has accumulated more than 600 hours of total Release Time. Any NBFA member who contributes time to the Release Time Bank gives up any right to usage of, or payment for, the contributed time. Contributions may be made only in six - minute increments. Contributions shall be on forms prepared by the City which shall then be submitted to the appropriate department employee. City shall advise NBFA as to the balance of hours in the Release Time Bank upon request. For purposes of this subparagraph only, the term "time off' includes accrued flex leave, accrued vacation leave, and accrued holiday time. D. Scope 1. All present written rules and currently established practices and employee rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts 3 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. E. Bulletin Boards 1. Space shall be provided on bulletin boards within the Fire Department at their present location for the posting of notices and bulletins relating to NBFA business, meetings, or events. All materials posted on bulletin boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 2. Material posted and messages sent through electronic mail (E— Mail) shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E —Mail may be used for Association business on a limited basis and consistent with Department Policy. F. Maintenance of Membershi Any employee in this Unit who has authorized association deductions on the effective date of this Agreement, or at any time subsequent to the effective date of this Agreement, shall continue to have such dues deductions made by the City during the term of this Agreement, provided that any employee in the Unit may terminate such Association dues by submitting a signed request to cancel payroll deduction to the Human Resources Director during the period of December 1 through December 31 each year. The Association shall indemnify the City and hold it harmless against any and all suits, claims, demands and liabilities that may arise out of or by reason of the application or implementation of the provisions of this section. 4 G. Dues Check -off NBFA members shall have the right to authorize the City to deduct regular monthly NBFA dues from their bi— weekly paycheck. The City shall deduct payment of NBFA dues when the employee has authorized such deduction and City shall remit all payments to NBFA in accordance with the terms of each member's authorization. H. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. I. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. J. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. K. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001 -50 or a successor resolution. L. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFA member"' shall mean all persons within classifications represented by NBFA. 2. The term "staff employee" shall mean any NBFA member who is assigned to work an average 40 -hour workweek. 3. The term "line employee" shall mean any NBFA member assigned to work an average 56 -hour workweek in 24 -hour shift increments. 4. The term "Municipal Fire Departments in Orange County" or "Municipal Fire Departments" shall mean all City operated Fire Departments and the Orange County Fire Authority. SECTION 2.— COMPENSATION A. Salar 1. Salary Adjustments. The adjustments to salary and total compensation described in this Section shall maintain the salary differentials between the position of Firefighter (benchmark position) and the other positions represented by NBFA, as set forth below, so there is an appropriate internal relationship among the primary classifications represented by NBFA. Subject to the foregoing, the salaries specified below or total compensation, as appropriate, shall be subject to the following guaranteed adjustments: Percent of Firefighter Firefighter Series Top Step Firefighter N/A Engineer 112.50% Paramedic 122.25% Line Captain 132.00% G 2. Fire Prevention Series Fire Inspector, Non - safety Fire Engineer /PSI Fire Prevention Specialist, Non - safety Fire Engineer /PCI Fire Prevention Specialist Plan Check, Non - safety Percent of Fire Inspector, Non-safety Top Step N/A 115% 115% 125% 125% Staff Captains and Deputy Fire Marshal shall receive an additional 7.5% of base pay over Line Captains. a. Effective December 25, 2004, the City shall increase base salary for the firefighter classification by two percent (2 %) (with increases for other classifications pursuant to the matrix above). b. Effective June 25, 2005, the City shall increase base salary for the firefighter classification by one percent (1 %) (with increases for other classifications pursuant to the matrix above). C. Effective June 24, 2006, the City shall increase base salary for the firefighter classification by three percent (3 %) (with increases for other classifications pursuant to the matrix above). d. Effective June 23, 2007, the City shall increase base salary for the firefighter classification by two percent (2 %) (with increases for other classifications pursuant to the matrix above). e. Special Adjustment Effective the pay period beginning December 24, 2005 (concurrent with the implementation of the revised retiree medical benefit as set forth in Section 4E) base salaries shall be increased by 1 %. Special Step Increase Firefighters who successfully complete the Department Engineer Certification program within twelve (12) months of passing probation will be granted a salary step increase. 7 B. Overtime — Hours Worked 1. Overtime shall consist of authorized work in excess of the normal number of hours in any scheduled work shift or work in excess of the maximum number of hours permitted by the United States Department of Labor regulations for up to a twenty -eight (28) day pay period. Use of Flex Leave, Vacation Leave, Holiday Leave, and Sick Leave shall be considered as hours worked for the purposes of determining eligibility for overtime pay pursuant to the Fair Labor Standards Act and /or Department of Labor regulations. 2. Temporary vacancies in line positions shall be selected in accordance with Department S.O.P. 3. Qualified employees wishing to work voluntary overtime in a class lower than their Current class (downgrade) may volunteer to do so and shall be compensated at one and one -half times the highest hourly rate for the position as published in the City's compensation plan. Said employees shall be selected according to the provisions set forth in the Department's Standard Operating Procedures related to staffing and overtime. This provision applies only to persons wishing to downgrade to the position of Firefighter or Fire Engineer. 4. Personnel assigned to staff assignments may request compensatory time off in lieu of paid overtime with the approval of the Department. Compensatory time may be granted, subject to maximum accrual of eighty (80) hours. C. Required Uniform City shall pay the entire cost of providing NBFA member with each component of the required NBFD uniform. The required NBFD uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, work out shirts, work out trunks, sweatshirt, base camp hat, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. The City shall report the value of the required uniform at $1,369 to PERS. The City will provide an adequate number of reserve turnouts at each station to allow for proper turnout cleaning /decontamination. This equipment will be used to temporarily replace an employee's personal e1 A turnout equipment that cannot be placed in service because they are wet, contaminated, or aged. Scholastic /Certificate Achievement Pay NBFA members are entitled to additional compensation contingent upon scholastic achievement ( "Scholastic /Certificate Achievement Pay "). NBFA members may apply for increases pursuant to this Section when eligible and scholastic and /or certificate achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the NBFA member to apply for Scholastic and /or Certificate Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic and /or certificate achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic and /or Certificate achievement pay is contingent upon years of service and number of units and /or degrees received by the employee. Qualifying units and /or degrees must be awarded by accredited community colleges, state colleges or universities. NBFA member shall receive scholastic and /or certificate achievement pay in accordance with the following: 1. Scholastic Pav Years of College % of Actual Step in Service: Semester /Unit: Job Class Range: 2 or more 30 1.5% /month 3 or more 60 2.5% /month 3 90 3.5% /month 4 or more 90 3.5% /month 4 120 4.5% /month 4 B.A. /B.S. 5.5% /month 2. Certificate Pay Coursework: Completion of coursework for Fire Officer I or Fire Prevention Officer 11 % of Actual Step in Job Class Range: 1.5% /month E. Special Assignment Pay The following additional payments shall be made to certain NBFA members based on assignment: 1. Certified members of the Hazardous Materials Response Team shall receive special assignment pay of five percent (5 %) of base pay per month. 2. Should the City establish a Tactical Paramedic Assignment, it will give notice to and, upon request, meet and confer with the Association on those aspects of the program which fall within the scope of representation. 3. Temporary Special Assignment Pay Temporary Special Assignment pay will be at the rate of five percent (5 %) above base salary, plus overtime at the rate of time and one half, for employees who are assigned special projects outside of or above and beyond their normal job classification. The types and duration of these temporary assignments will remain a management prerogative. Committee participation such as Safety Committee, and work on various projects such as Public Safety Day and the CERT Program are excluded from consideration under this Agreement. F. Temporary Upgrading of Employees Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification which is assigned to a salary schedule higher than his /her regular job classifications. Employees temporarily upgraded to the following job classifications shall receive a five percent (5 %) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of four (4) working hours or longer- Fire Battalion Chief Fire Captain Fire Paramedic Fire Engineer Tiller Assignment 10 All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. G. Y- Ratinq Employees who are reclassified to a position with a lower maximum salary shall be Y- rated. Y- rating shall refer to a pay rate outside of the assigned salary range of the employee. If the salary of the employee is greater than the maximum of the new range, the salary of the employee shall be designated as a Y -rate and shall not change during continuous regular service until the maximum of the new range exceeds the salary of the employee. If the salary of the employee is the same or less than the maximum of the new class, the salary and merit increase eligibility date of the employee shall not change. H. Shift Holdover NBFA members who are held over at the conclusion of any shift shall be compensated at the rate of one hour for each hour, or portion thereof, the employee worked beyond the end of the shift. Any member held over after shift shall be compensated at time and a half for all time worked during the work period in excess of the maximum permitted under the provisions of Section 29 USC 507(k). Emergency Recall If an employee who is not on stand -by or shift hold -over and is required to return to work or to continue on duty during his /her off -duty hours for actual firefighting, or similar emergency designated by the Department Director, the employee shall receive a minimum of three (3) hours compensation for the first hour worked and compensation for time worked thereafter. J. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following 11 certification. Additional languages may be certified for compensation pursuant to this section by the Fire Chief. K. Court Standby Pay NBFA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four (4) hours of pay for each eight hours of court standby time. NBFA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. - LEAVES A. Flex Leave 1. Effective December 25, 2004, NBFA members shall accrue flex leave as follows. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below. Leave Accrual Longevity Pay Years of Cont. Svc Hours /Pay Period Increase Line Employees 1 but less than 5 8.77 0.00% 5 but less than 9 9.69 0.00% 9 but less than 12 10.62 0.00% 12 but less than 16 11.54 0.00% 16 but less than 20 11.54 1.5% 20 but less than 25 11.54 2.5% 25 and over 11.54 3.5% 12 6 Leave Accrual Years of Cont. Svc Hours /Pay Period Staff and Non - Safety Employees Longevity Pay Increase 1 but less than 5 6.26 0.00% 5 but less than 9 6.92 0.00% 9 but less than 12 7.59 0.00% 12 but less than 16 8.24 0.00% 16 but less than 20 8.24 1.5% 20 but less than 25 8.24 2.5% 25 and over 8.24 3.5% Longevity increases specified above shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (1) for purposes of computing retirement benefits and contributions. The Flex leave program shall be administered as follows: a. NBFA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of six (6) months provided, however, if a member on the flex leave program becomes sick during the first six months of employment, the City will advance up to six (6) months of accrual for line employees for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing six months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. NBFA members who are staff or non - safety employees shall accrue six (6) months of flex leave and line employees shall accrue six (6) months of flex leave immediately upon completion of six (6) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first six months of employment. C. Members employed by the City prior to initiation of the flex leave program have had the current accrued vacation time 13 converted to flex leave on an hour for hour basis with the current sick leave placed in a bank to be used as provided in the Employee Policy Manual. Members entitled to use sick leave pursuant to Section the Employee Policy Manual and who are absent due to illness shall have their sick leave bank reduced by the duration of the absence unless the member notifies appropriate department personnel that the absence should be charged to the member's flex leave account. d. Subject to the provisions of Section 3(J), members shall be entitled to accrue flex leave up to a maximum of seventy - eight (78) times the member's bi- weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi- weekly at the member's hourly rate of pay. NBFA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of seventy -two (72) hours for a line employees and 40 hours for staff employees. However, NBFA members may not elect to buy down accrued Flex Leave below the current threshold for payment seventy -eight (78) times the member's bi- weekly accrual rate) unless, during the twelve months preceding the election, the member has taken at least ninety -six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. For the purposes of this section, Flex Leave shall include any earned paid leave such as vacation leave, compensatory time off, or holiday time. e. All requests for scheduled flex leave shall be submitted to appropriate department personnel. In no event shall a member take or request flex leave in excess of the amount accrued. f. Flex Leave may be taken in six (6) hour increments. g. Members shall be paid for all accrued flex leave at their then current hourly rate of pay (hourly rate before incentives, other pays, etc.) upon termination of the employment relationship except as provided by Section 3(J). B. Vacation Selection System The City has implemented a vacation selection system (VSS) which phased out mandatory scheduling for vacation relief in favor of leave coverage by paying overtime to other members occupying the same 14 C position. The City commits to maintain VSS subject to budgetary constraints outlined in this Section. The City shall, for each fiscal year during the term of this MOU, adopt a budget which provides for the payment of overtime specifically for the purpose of implementing VSS. The amount to be budgeted shall be calculated by computing the Vacation /Flex leave /Holiday time (leave) normally accrued by each member during a fiscal year (total annual leave) multiplying total annual leave, by that member's overtime rate of pay (value of leave) and then adding the value of leave for each NBFA member. Each member's overtime rate of pay shall be calculated on the basis of the member's highest anticipated rate of pay during the upcoming fiscal year. The total "value of leave" for all members shall be identified in the budget as the "LEAVE COVERAGE FUND." Notwithstanding, any other provision of this MOU, the Fire Chief shall have the sole discretion to take whatever action may be necessary to reduce overtime payments, including the temporary reduction of staffing levels or personnel, in the event payments for overtime out of the LEAVE COVERAGE FUND exceed 25% of the fund during the first three months of the fiscal year, 50% of the fund during the first six months of the fiscal year, or 75% of the fund during the first nine months of the fiscal year. Vacation /Sick Leave 1. Administration of the vacation and sick leave program for members who have not converted to flex leave shall be in accordance with the provisions of the Employee Policy Manual of the City of Newport Beach. Line employees shall accrue sick leave at the rate of twelve (12) hours per month and staff employees shall accrue sick leave at the rate of eight (8) hours per month. Vacation Leave may be taken in six (6) hour increments. NBFA members on the vacation /sick leave system shall accrue as follows: Years of Cont. Service Line Employees Less than 5 5 but less than 9 9 but less than 13 13 but less than 17 17 but less than 21 21 but less than 25 25 and over iIII Leave Accrual Hours/Pay Period 5.54 6.47 7.39 8.31 9.23 10.16 11.08 E. Years of Cont. Service Staff Employees Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Leave Accrual Hours /Pay Period 3.70 4.31 4.93 5.54 6.16 6.77 7.39 Maximum vacation accrual shall be seventy -eight (78) times the member's bi- weekly accrual rate. 2. Sick Leave Conversion Members who, at the end of any calendar year have a sick leave bank greater than a sum equal to eighty —six (86) times their normal bi— weekly sick leave accrual rate and who have used six (6) or fewer days during the calendar year, may elect to covert up to six (6) days of sick leave to three (3) days pay or, with the approval of the Fire Chief, three (3) days of vacation. Members shall elect to convert to sick leave within sixty (60) days after the end of any calendar year. Holiday Time Line Employees The provisions of this subsection shall apply only to NBFA members who are line employees during all or a portion of any calendar year and, as to those members who are line employees for only a portion of the year, the provisions of this subsection shall be applicable on a pro —rata basis. NBFA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. Holiday time shall be added to the member's Flex Leave or Vacation Leave Account on a bi— weekly basis. Effective October 1, 1996, all Line employees were provided a one- time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 108 of the 144 annual benefits to cash must so convert 108 16 hours of earned holiday benefits each year thereafter. The election to change holiday time to pay shall be in twelve (12) hour increments. Holiday pay will be paid bi- weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. Note. Newly hired employees shall be given a one -time option, within 60 days of employment, to elect to receive up to one -half of accrued holiday time as time off. 2. Staff Employees Staff employees shall receive the following fully paid holidays: New Years Day, Martin Luther King Birthday, Presidents Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day and the day after Thanksgiving, one —half day on Christmas Eve, Christmas, and one —half day on New Years Eve. In addition, Staff employees will be entitled to one floating holiday at the member's election. Staff employees shall have the one -time option of accruing holiday time as pay. Staff employees may be required to take specified City holidays off at the sole discretion of the Fire Chief. Time will be charged against the employee's flex (or vacation) leave bank. F. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee having a regular or probationary appointment because of a death or terminal illness in his /her immediate family. Staff and Non - Safety employees shall be entitled to forty (40) hours of Bereavement Leave per calendar year per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother - in -law, and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. 17 G. Catastrophic Leave Unit members inay participate in the City's Catastrophic Leave Program. H. Jury Duty J NBFA members who are assigned to line positions and are called to jury duty shall be excused for each twenty -four (24) hour shift during which the member is required to attend court and sit on a jury or await assignment. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his /her estate shall be paid, at the rate of 109% of their then current base hourly rate of pay (hourly rate before incentives, other pays, etc.) for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE PERCENT OF UNUSED SICK LEAVE PAID FOR: NONE 25% 37.5% 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). Flex Leave Premium Pay Account NBFA members shall have the right to receive pay, at the rate of 109% of their then current base salary, for any Flex Leave banked, up to a maximum of seventy -eight (78) times their bi— weekly Flex Leave accrual rate as of June 30, 1994 (Flex Leave Prernium Pay Account). The Flex Leave Premium Pay Account balance shall be shown on each member's regular pay stub. The Flex Leave Premium Pay Account shall be reduced in accordance with member purchases. Each member shall, upon termination, resignation, retirement or other separation from service, receive terminal pay at the rate of 109% of their then current base salary 18 for all accrued Flex Leave to the full extent of the remaining balance in the Flex Leave Premium Pay Account with any remaining Flex Leave paid at the then current base salary. The provisions of this section shall apply only to members employed by the City of Newport Beach on or before June 30, 1994. K. Vacation Leave Premium Pay Account Members who are on the traditional Vacation /Sick Leave program as of June 30, 1994 shall be entitled to receive pay, at the rate of 109% of their then current base salary, for any accumulated Vacation Leave up to a maximum of fifty -two (52) times their bi— weekly Vacation Leave accrual rate as of June 30, 1994 (Vacation Leave Premium Pay Account). The Vacation Leave Premium Pay Account balance shall be shown on each members regular pay stub. The Vacation Premium Pay Account balance shall be reduced commensurate with member purchases. Each member shall, upon termination, resignation, retirement or other separation from service, receive terminal pay at the rate of 109% of their then current base salary for all accrued Vacation Leave to the full extent of the remaining balance in the Vacation Leave Premium Pay Account with any remaining Vacation Leave paid upon termination at the then current base salary. The provisions of this section shall apply only to members employed by the City of Newport Beach on or before June 30, 1994. L. Worker's Compensation Leave Any Safety NBFA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the 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. M. Reassignment In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Vacation Leave, Sick Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided, however, upon reassignment a line employee shall be entitled to either receive pay for accrued holiday time or add accrued holiday time to the member's Flex Leave or Vacation Leave account. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. 19 SECTION 4. —Fringe Benefits A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee group with information about health insurance /programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. Effective June 25, 2005, the City contribution toward the Cafeteria Plan shall be $674. In addition, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance /programs, The City and the Newport Firefighter Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective December 24, 2005 the City's contribution towards the Cafeteria Plan will increase to $724, (plus the minimum CalPERS participating employer's contribution). Effective December 23, 2006 the City's contribution towards the Cafeteria Plan will increase to $774, (plus the minimum CalPERS participating employer's contribution). NBFA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical 20 3. 0 N insurance coverage on an annual basis. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. Changes in Insurance Carriers and Coverages There shall be no change in Insurance carriers or coverages during the term of this agreement unless the City has given prior notice to the Association and, upon request, met and conferred. B. Additional Health Insurance /Programs 1 IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit 21 Short -term (STD) and Long -term (LTD) all regular full time employees with the 66.67% gross weekly wages $10,000 /month Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0 %) percent of base salary. Simultaneously, the City increased base wages by one (1.0 %) percent. 3. Life Insurance The City shall provide life insurance for all regular full -time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre -70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by this agreement, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which PERS uses to calculate retirement contributions and benefits and the entire normal miscellaneous member contribution, not to exceed 7 %. In addition, the amount of this payment shall be reported to PERS as special compensation, which is part of the employee's compensation earnable, pursuant to the provisions of Section 20636 (c)(4) of the California Government Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBFA acknowledges that the City is making this payment pursuant to a 22 specific request of NBFA to do so, that the City has made significant financial commitments to NBFA in this MOU in consideration of the members' agreement to relinquish their previously held "irrevocable right" to pay their own PERS contribution and receive a corresponding salary increase, and that the significant financial concessions to NBFA (which included Leave Premium Pay Accounts, changes in the calculation of "hours worked" for purposes of overtime and internal salary adjustments) were made to avoid the potential for increased overtime compensation approximating $450,000 if all NBFA members exercise their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. 2. The City's contract with PERS shall also provides for a. A 3% @ 55 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. b. The military buy -back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. C. The Level 4 1959 Survivors Benefits. The City will amend its PERS contract to provide the pre- retirement option settlement 2 death benefit (Section 21548) to be effective July 23, 2005. The City will further amend its PERS contract to provide for the 3% @ 50 retirement formula to be in effect no later than December 31, 2007. E. Retiree Health Benefits Program 1. Prior to December 24, 2005 An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the CalPERS medical insurance plan and the mandatory minimum employer contribution to said plan on behalf of the annuitant. a. The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Firefighters Association. The City and active employees shall be responsible for 3 /4ths (112 City and 1/4 actives) of retiree medical insurance prernium under this program to a maximum of $400. Retirees shall be responsible for any 23 remaining medical insurance premiums. For NBFA unit employees, the per month employee deduction for retiree medical insurance shall be $44.07 per month. Subsequent contribution levels shall be set as needed in the month of July per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBFA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBFA prior to any increases in employee deduction levels. b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in (a) above; each NBFA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBFA mutually agree to end the funding on behalf of NBFA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under El(a). In the event the retiree medical insurance program described herein is discontinued, NBFA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBFA on the distribution of said funds back to active (not retired /full -time) City employees in the NBFA unit. The City will provide NBFA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. 2. Effective December 24, 2005 a. Overview A new Defined Contribution Plan will be established to set aside funds for employee medical expenses during retirement. This plan 24 will replace the existing Defined Benefit Plan (`old plan "), which will be phased out. The plan will be a Medical Expense Reimbursement Plan ( "MERP ") funded through an Integral Part Trust (IPT). b. Structure Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after retirement. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not 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): 1 % of Salary. ii. Part B contributions (employer for employees fully converting to new plan): $1.50 per month for each year of service plus year of age (updated every January V based on status as of December 31St of the prior year). iii. Part C contributions (leave settlement as determined by Association): No later than November 30, 2005, 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 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. The computation of the cash equivalent for leave hours to be included in the MERP will be the same as the computation used when leave is "cashed out" for other reasons. However, individual employees must not have the option of receiving compensation for the value of the same leave hours in the form of cash. 25 For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City would have the cash equivalent of 50% of whatever balance is in his or her leave account added to the MERP, on a pre -tax basis. The remaining 50% would be paid in cash as taxable income. Again, individual employees would not have the option to deviate from this breakout. If the Association decides to participate in Part C contributions, at any level, its members will not have the right to voluntarily convert leave to cash for one full year prior to retirement, other than "spillover" of amounts above the maximum accumulation balance. However, taking leave for time off purposes would not be constrained. Sick leave balances may also be included in the MERP, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out' at 800, and specifies that sick leave hours are "cashed out' on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation /flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of City employment. At that time, the City will credit the first five years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made monthly. Part C deposits, if any, will be made at the time of employment termination. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon retirement. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. An employee who 26 leaves City employment within the first five years will not be entitled to any Part B contributions. Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after retirement, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the MERP accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005 -24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and /or other authorized dependents (if any) must be forfeited. That particular MERP Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum 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. C. Employee Participation i. New Employees Participation in the new plan is mandatory from the onset of employment. New employees will make no contributions to the old plan. ii. Conversion Threshold for Current Employees Safety: Members whose age plus years of service equal 45 or less at the time of implementation must convert to the new plan. Those with age plus years of service of 46 or more have the option of fully converting or remaining in the old plan with modified participation in the new plan. 27 Non - Safety: Members whose age plus years of service equal 49 or less at the time of implementation must convert to the new plan. Those with age plus years of service of 50 or more have the option of fully converting or remaining in the old plan with modified participation in the new plan. iii. Current Employees Fully Converting to New Plan In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one -time City contribution to their individual IPT accounts that equates to $100 per month for every month they contributed to the current plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. Employees in this category will make no further contributions to the existing plan, and will no longer participate in it. The parties agree that this one time payment by the City satisfies the requirement in paragraph E1.b. of Section 4 (Fringe Benefits) of the previous MOUs regarding an accounting and potential distribution of contributions upon discontinuation of the previous version of the Retiree Medical Program. iv. Current Employees Continuing to Participate in Some Elements of Old Plan Employees in this category will contribute a flat $100 per month to the old plan for the duration of their employment. The maximum benefit provided by the old plan at retirement is $4800.00 per year, accruing at the current rate of $400.00 per month. City share of each retiree's cost may be used for anything authorized for the IPT program, rather than just for Insurance Premiums for one of the City plans. There is no cash out option for these funds. Employees remaining on the old plan will also participate in the IPT program, with Part A contributions being mandatory; no Part B contributions; and Part C contributions if applicable. Employees in this category will also receive an additional one- time City contribution of $75 per month for every month they contributed to the old plan prior to the date of implementation of 28 the new program, up to a maximum of 15 years (180 months). This contribution will be made to the IPT account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. Retroactivity Limited retroactivity is provided for employees who retired from the City during the period covered by the contract in which this new program is implemented, but before the program is implemented. For those employees who retired under the old program during this period, the provision for increased flexibility in the use of the $4800.00 maximum (accruing at $400 per month) benefit will apply. In addition, a MERP account will be opened for each employee in this category, and a contribution of $75 per month for each month of prior contribution to the old plan will be deposited by the City. No other provisions of the new program are applicable to employees in this category, and no provisions of the program are applicable to any other existing retirees. e. Administration A vendor will be selected by the City to administer the MERP. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee will have the authority to determine investment options that will be available through the plan. f. Value of Benefit For all purposes, the MERP shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). F. Tuition Reimbursement Maximum tuition reimbursement for NBFA members shall be $1,000 per fiscal year. 29 1. College Courses NBFA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100 %) of the actual cost of tuition, books, fees or other student expenses for approved job — related courses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. 2. Non - College Courses NBFA members attending job - related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100 %) of the actual cost of tuition, parking fees, travel and lodging expenses. Job - related courses and seminars will be considered pre - authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Division Chief before submittal to Human Resources. G. Fitness Program All NBFA members shall participate in the Department Fitness Program as outlined in Department SOP. H. Physical Conditioning Equipment 1. City has acquired fitness equipment for use by members in maintaining physical fitness. City shall budget $10,000 per year for the acquisition, maintenance, repair, improvement, or replacement of fitness equipment. Up to $7,500 may be carried over to a subsequent fiscal year(s). 30 2. City shall provide workout apparel for each NBFA member assigned to fire suppression. Workout apparel shall consist of three workout shirts and two trunks. All NBFA members on duty between the hours of 4:00 p.m. one day and 7:30 a.m. the next, shall wear either the approved workout apparel, or the approved NBFD uniform. SECTION 5. —Miscellaneous Provisions A. Reductions in Force /Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non — disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted permanent status, subject to the following: I. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status iii the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. iii. For purposes of determining layoffs within the Classification of Firefighter, seniority shall mean the time an employee has worked within the Series from Firefighter to Captain. C. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job 31 title authorized in the City budget and shall not include part — time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights ", "Bumping" or "Bump" shall mean the right of an employee in a higher Classification who is subject to layoff to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become recertified as a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only 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 32 notify the Department Director within seven (7) working days after notice of layoff of his /her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay —off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Employee Policy Manual. 4. Re— Employment Permanent and probationary employees who are laid off shall be placed on a Department re— employment list in reverse order of layoff. Re- employment lists will be valid for two (2) years. The re- employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re— employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Human Resources Director. 5. Severance Pav Permanent employees who are laid off shall, as of the date of lay- off, receive one -week severance pay for each year of continuous service with the City of Newport Beach. 33 B. Schedule The City shall have the right to designate a 14 day or 28 day work period pursuant to Section 29 USC 507(k) (7k exemption), provided, however, the 7k exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU including the provisions of Section 1(D)1. C. Discipline Plan Any discipline shall be in accordance with Department SOP and the Employee Policy Manual. D. Fire Suppression Staffing Levels The City shall not reduce current staffing levels for fire suppression equipment during the term of this MOU. The City believes that appropriate staffing levels call for three fire suppression personnel for each engine company, four fire suppression personnel for each truck company, and two firefighter /paramedics on each paramedic unit. PAU staffing shall conform to the provisions in Section 5(G). E. EMT Certification All members are required to attend regularly scheduled departmental EMT certification classes. Any member, except members who are paramedic certified, who misses, or anticipates missing, a regularly scheduled EMT certification class shall contact the Fire Chief or his /her designee in an attempt to schedule a makeup session, provided, however, members may view videotaped classes to make up for absences from a regularly scheduled class in accordance with County and State requirements. If a makeup session is not available within the program schedule established by the Department, the member shall, prior to loss of certification, attend a Departmental session or class offered by a public or private institution on the member's own time and without compensation by the City. F. Pre - Hospital Emergency Medical Services (EMS) System 1. In a prior MOU, the City and Association have met and conferred on the City's Paramedic and Emergency Transportation System. The parties at that time agreed as follows: Two engine companies shall be converted to a Paramedic Assessment Unit (PAU's. The two current paramedic units shall be converted to Paramedic Ambulances (PAU's) and a City operated 24 -hour Basic Life Support (BLS) ambulance shall be staffed by 34 two sworn Firefighter EMT -D's. The PA's shall normally transport patients requiring advanced life support (ALS) . The BLS ambulance shall normally transport patients requiring basic life support (BLS). Either the PA's or the BLS ambulance may transport ALS or BLS patients based upon operational need. 2. EMS Staffing All such services shall be staffed using sworn personnel represented by the NBFA. It is understood that the City and the NBFA have agreed to staff one of the three Paramedic Units (PAU's) using existing personnel. Six firefighters assigned to the fourth (4th) position on Truck 62 and Truck 63 pursuant to Section 5.D of this MOU have been reclassified as Fire Paramedics and reassigned to a Paramedic Unit. Should the City reduce or eliminate the number of Paramedic Units serving the city, these six positions will be reclassified as Firefighters and reassigned to the fourth (4`h) position on Truck 62 and Truck 63. Should the City make changes in this program that fall within the scope of representation, the City shall give appropriate notice to the Association and provide the opportunity for the Association to meet and confer on matters within scope. G. No Smoking All employees hired after January 1, 1999 shall not smoke or use any tobacco products at any time while on, or off, duty. Employees shall be required to sign an agreement consistent with this section. Violation of the agreement may subject the employee to disciplinary action. Employees shall have input into the agreement to be developed. H. Fire Inspection Classifications Existing flexible staffing provisions in Fire Prevention Classifications shall remain in effect for the term of this agreement. Exposure Log The City maintains an exposure log system. Signatures are on the following page. 35 Executed this ,day of 2005: By: Rich Thomas, NBFA By: Jeff Boyles, NBFA By: Jeff Remmele, NBFA By: Keith Winokur, NBFA CITY OF NEWPORT BEACH By: John Heffernan, Mayor ATTEST: Bv: LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney 36