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HomeMy WebLinkAbout25P - WAGES, TERMS, COND OF EMPLOYMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 5, 2008 TITLE: AGREEMENT WITH THE FIRE MANAGEMENT ASSOCIATION ~~ r J?~c CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1S` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Fire Management Association regarding wages and other terms and conditions of employment. DISCUSSION The City and the Fire Management Association (FMA) recently completed contract negotiations resulting in a two-year contract extension (attached as Exhibit "A") of the existing Memorandum of Understanding. This extension period covers July 1, 2008 through June 30, 2010. The provisions of the extended agreement are as follows: 1. Salary Increase: July 1, 2008 = 40 January 1, 2009 = 2.50 July 1, 2009 = 40 January 1, 2010 = 2.50 2. Medical Premium Contributions: Maintain Kaiser California CalPERS HMO rates during extended term of agreement. 3. Shift Replacement/Special Assignment Pay for Fire Battalion Chiefs: Pay in 6-hour rather than 12-hour increments, effective May 1, 2008. 4. Vacation Pay Options: Allow employees to receive cash compensation in lieu of an additional five (5) days vacation, effective January 1, 2009. 5. Credit for Unused Sick Leave: Continue to allow employees to have unused sick leave at retirement credited toward PERS service credit. 25P-1 Agreement with FMA May 5, 2008 Page 2 of 2 6. Promotion: Authorize Fire Chief, with City Manager approval, to promote employees at top step, when appropriate. 7. 2.7o at 55 CalPERS "Miscellaneous Employee" Retirement Formula: A. Employees agree formula: July July July B. City agrees to retirement formu FISCAL IMPACT to contribute toward enhanced 1, 2007 = 2.0% 1, 2008 = Additional 2.Oo (total 1, 2009 = Additional 2.30 (total amend CalPERS contract for la, effective January 1, 2009. retirement of 4%) of 6.30) ?.7o at 55 Funds for contract extension are available in the affected Fire Department division salary and benefit accounts (object codes 6111 and 6171 respectively). There is no new cost for FY 2007-08. APPROVED AS TO FUNDS AND ACCOUNTS: Enriqu A Execu i e D'r ctor Perso nel Services Department Francisco Gutierrez Executive Director Finance & Management Services Agency~,~ 25P-2 Exhibit A TWO-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA FIRE MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2008-09 AND 2009-10 The City of Santa Ana (CITY) and the Santa Ana Fire Management Association (SAFMA) have met and agreed to amend the Memorandum of Understanding (MOU) between the CITY and SAFMA for Fiscal Years 2004-05 through 2007-08 by extending this MOU for two additional years. The existing MOU provisions will remain unchanged unless addressed by this addendum. The new expiration date of the MOU will be June 30, 2010, and the MOU will be amended as follows: AMENDED ARTICLE IV (new language in bold) 4.3 Salary Adjustments. A. New paragraphs as follows: Effective July 1, 2007, Miscellaneous employees covered by this Agreement shall contribute 2% of their salary toward the 2.79° at 55 retirement benefit. To the extent permitted by CuIPERS and Internal Revenue Service regulations, this 29'° contribution shall be implemented through payroll deduction on a pre-tax basis. Effective July 1, 2008, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 49'°). Effective July 1, 2008, Miscellaneous employees covered by this Agreement shall contribute nn additional 2% of their salary (for a total of 4Y°) toward the 2.7~° at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this additional 2% contribution shall be implemented through payroll deduction on a pre-tax basis. Effective January 1, 2009, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.5~°). 25P-3 Effective July 1, 2009, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 49'0). Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.39'0 of their calory (for a total of 6.39'0) toward the 2.79~o at 55 retirement benefit. To the extent permitted by CuIPERS and Internal Revenue Service regulations, this additional 2.39'o contribution shall be implemented through payroll deduction on a pre-tax basis. Effective January 1, 2010, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.50). 4.5 Beginning Rates. A. Fire Management Group A Classes. An employee appointed to a Fire Management Group A class (Deputy Fire Chief or Fire Marshal) shall be compensated at any rate within the lower third of the 15-step salary rate range (Steps "1" through "5") for their job classification as authorized by the Fire Chief. When economic conditions, unusual employment conditions, or exceptional qualifications of a candidate for employment indicate a higher rate would be in the City's best interests, the City Manager may authorize hiring at a higher rate in the salary rate range, up to and including Step 15. B. Fire Management Group B Classes. An employee appointed to a Fire Management Group B class (Fire Battalion Chief or Fire Communications Manager) may be placed by the Fire Chief at any step within the applicable five (5) step salary rate range (Steps "A" through "E") in the schedule to which the class has been allocated through adoption of this Agreement, provided that such employee shall be assigned such salary step upon the commencement of his or her service in said classification and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step in accordance with the further provisions of this Article as set forth below. 25P-4 AMENDED ARTICLE VIII (new language in bold) 8.2 Shift Replacement/Special Assignment Pay for Fire Battalion Chiefs. Off duty employees in the class of Fire Battalion Chief who are assigned by the Fire Chief to a twenty-four (24) hour work shift will receive straight time pay in ~ six (6) hour increments (i.e. from one (1) to ~ six (6) hours worked equals ~ six (6) hours pay, e~ ~3--te-~4 seven (7) to 12 hours worked equals 12 hours pay, 13 to 18 hours worked equals 18 hours pay, or 19 to 24 hours worked equals 24 hours pay, respectively). The purpose of this pay is compensation for replacing another Battalion Chief who is on sick leave, vacation, bereavement leave, or other approved absence. Additionally, this compensation will be received when an off-duty Battalion Chief is directed by the Fire Chief to respond to an emergency situation, to serve on special assignment, or to act as a training officer. This practice shall conform to the following guidelines: A. Special Shift Replacement Pay will be calculated by multiplying either six (6), 12, 18, or 24 hours, respectively, times the hourly rate of pay for Fire Battalion Chief, "E" step, based on a 24-hour shift schedule and assuming pay additives of 7.5%, regardless of the salary step of the affected employees. B. Shift exchanges between two employees of the class of Fire Battalion Chief will not qualify for Special Shift Replacement Pay under these provisions. C. Under no circumstances will Special Shift Replacement Pay be construed as "overtime pay," as defined under the Fair Labor Standards Act. AMENDED ARTICLE X (new language in bold) 10.6 Vacation Pay Options. Once each fiscal year, all employees covered by this Agreement shall be given the option to receive cash compensation, computed on a straight-time basis, in lieu of up to five (5) working days of earned, unused vacation leave benefits set forth in this Article. Effective January 1, 2009, employees covered by this Agreement may cash out up to a total of 10 working days of earned, unused vacation leave benefits set forth in this Article. 25P-5 AMENDED ARTICLE XII (new language in bold) 12.1 Health Insurance. A. The City shall contribute toward the payment of premiums for affected employees and their dependents under the CaIPERS Health Program. Effective July 1, 2005, January 1, 2006, January 1, 2007, ~ January 1, 2008, January 1, 2009, and January 1, 2010, respectively, the City shall contribute toward medical premiums an amount consistent with the rates then in effect on the dates listed above for the "employee-only", "employee plus one", and "family" tiers, respectively, of the Kaiser "Other Southern California" CafPERS HMO plan. Effective January 1, 2006, the City shall establish a Cafeteria benefit plan for employees covered by this Agreement. AMENDED ARTICLE XIV (new language in bold) 14.2 Deferred Retirement. The City shall continue to make payment to CaIPERS on behalf of each affected employee covered by this Agreement in an amount equal to one hundred percent (100%) of each employee's individual retirement contribution. Such payments shall be credited to the individual employee's CaIPERS account. Such payments are not increases in base salary and no salary rate range applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and thus, will not withhold Federal or state income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, not ordinary income. In the event that the City receives a subsequent ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each affected employee shall forthwith be increased by eighteen (18) salary rate ranges (9.0%) for "safety-member" employees covered under the "3% at Age 50" CaIPERS formula and fourteen (14) salary rate ranges (7.0%) for "miscellaneous-member" employees covered by this Agreement. Effective January 1, 2009, this amount shall be increased to sixteen (16) salary 25P-6 rate ranges (8.09'°) for "miscellaneous-member' employees covered by this Agreement. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were a part of the employee's base salary. 14.4 2% at 55 for CaIPERS "Miscellaneous" Members. CaIPERS designated "miscellaneous" employees represented by the Association shall be covered by the 2% at 55 retirement benefit. ,~ ° ° .Effective beginning January 1, 2009, miscellaneous employees covered by this Agreement shall be covered by the 2.79° at 55 retirement benefit, as specified in section 14.14 below. - , ° f+t: ° 14.14 2.7~° at 55 Service Retirement Benefit for Miscellaneous Members. The City agrees to amend its retirement contract with CaIPERS to provide Miscellaneous employees covered by this Agreement with the 2.79'o at 55 Service Retirement benefit to be effective January 1, 2009. Pursuant to CaIPERS regulations, this new formula will apply to all miscellaneous members covered by this Agreement that are in active status on the date this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ana. Payment of New 2.7% at 55 Service Retirement Benefit. Miscellaneous employees covered by this Agreement agree to pay 6.39'° of CaIPERS reportable compensation toward the cost of the 2.79'° at 55 enhanced retirement formula in the following manner: 1. Effective July 1, 2007, the City shall deduct from each miscellaneous employee covered by this Agreement two percent (29'°) of CaIPERS reportable compensation to pay toward the cost of the new enhanced retirement formulo. 25P-7 2. Effective July 1, 2008, the City shall deduct from each miscellaneous employee covered by this Agreement an additional two percent (29'0} of CaIPERS reportable compensation (49'o total) to pay toward the cost of the new enhanced retirement formula. 3. Effective July 1, 2009, the City shall deduct from each miscellaneous employee covered by this Agreement an additional two point three percent (2.39'0) of CaIPERS reportable compensation (6.39'o total) to pay toward the cost of the new enhanced retirement formula. Pre-Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 14.15 Credit for Unused Sick Leave. Effective January 1, 2002, anon-sworn employee covered by this Agreement can have unused accumulated sick leave at the time of retirement converted to additional service credit, pursuant to regulations prescribed by CaIPERS. The City must report only those hours of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within four (4) months of separation of employment. Effective July 1, 2007, the provisions of this section will also apply to sworn employees covered by this Agreement. AMENDED ARTICLE XXVI Article 26 -Term of Agreement The term of this Agreement shall be from July 1, 2004 through June 30, 20910. 25P-8 ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION 27.1 The City and Association have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have agreed that the parties hereto will jointly urge said Council to adopt a new wage and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Association acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Association and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and Association and entered into this ~*~ 5th day of dt-+4e May 209508. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: Dated: Dated: By: MAYOR By: CITY MANAGER By: ASSISTANT DIRECTOR PERSONNEL SERVICES ATTEST: APPROVED AS TO FORM: CLERK OF THE COUNCIL CITY ATTORNEY 25P-9 This Agreement has been ratified by the membership of the Santa Ana Fire Management Association. Dated: SANTA ANA FIRE MANAGEMENT ASSOCIATION By: RANDY BLACK, PRESIDENT 25P-10