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Home My WebLink About25D - MOU - FBA REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: SEPTEMBER 20, 2010 TITLE: APPROVED 0 As Recommended AGREEMENT WITH THE FIREMEN'S E3 Amended BENEVOLENT ASSOCIATION 0 O Or rdinance on Est Reading El Ordinance on 2ntl Reading Implementing Resolution Set Public Hearing For 7 CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Firemen's Benevolent Association regarding wages and other terms and conditions of employment. DISCUSSION The City and the Firemen's Benevolent Association (FBA) recently completed contract negotiations resulting in a four-year contract extension to the FY 2004-10 Memorandum of Understanding (MOU). The extension period covers July 1, 2010 through June 30, 2014. The provisions of this extended agreement are as follows: 1) Salary: 7/01/10-6/30/11 = 0% 7/01/11 - 12/31/11 = 0% 1/01/12 - 12/31/12 = 2.5% 1/01/13-6/30/13 = 4.0% 7/01/13-6/30/14 = 0% 2) Payment toward 3% at 50 Service Retirement Benefit: Effective January 1, 201 1 , "safety" employees contribute an additional .50%, for a total employee contribution of 1.43%. 3) Retirement Reopener: If the employer contribution rate for a fiscal year meets or exceeds 25%, then the provisions of Article 15.5 "Payment of 3% @ 50 Service Retirement Benefit" shall be reopened at the request of the City- 25D-1 Agreement with the Firemen's Benevolent Association September 20, 2010 Page 2 4) Overtime (Fire Suppression): Employees may choose monetary payment or take compensatory time for overtime worked and employees must place one overtime shift worked in a comp time bank during Fiscal Years 2010-11, 2011-12, 2012-13, and 2013- 14. Additionally, the City shall not backfill for employees taking compensatory time for the aforementioned fiscal years. 5) Staffing: FY 2010-11 and 201 1-12 = Reduce daily staffing from 66 to 63 positions FY 2012-13 and 2013-14 = Increase daily staffing from 63 to 64 positions 6) Paramedic School: During the term of the Agreement, when an employee attends medic school, the City shall not be required to "backfill" with overtime. 7) Vacation Cash Out: Employees shall defer longevity vacation cash-out for Fiscal Years 2010-11 and 2011-12. The ability to cash-out longevity vacation leave time shall be reinstated on July 1, 2012_ Allow carryover of up to three periods of regular and longevity vacation; maximum cash-out value is 160 hours per year. 8) Should any other bargaining unit receive a salary or benefit increase during the term of this Agreement that is of greater value than the combined value of the 4% and 2.5%, as described above under "salary", FBA employees shall be granted that salary or benefit equivalent. FISCAL IMPACT There are first-year savings to the City of $5,201,980, which includes deferral of salary increases and vacation cash out, and reduction in staffing. There are additional ongoing savings of $1,135,673 for staffing reductions and increased PERS contributions. APPROVED AS TO FUNDS AND ACCOUNTS: Kathie S_ Gonzalez Francisco Gutierrez Executive Director Executive Director Personnel Services Agency Finance & Management Services Agency 25D-2 FOUR-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA FIREMEN'S BENEVOLENT ASSOCIATION FOR FISCAL YEARS 2010-11 through 2013-14 The City of Santa Ana (City) and the Santa Ana Firemen's Benevolent Association (SAFBA) have met and agreed to extend the 2004-10 Memorandum of Understanding (MOU) between the CITY and SAFBA for four (4) additional years. The initial MOU provisions, and the provisions outlined in the two-year Contract Extension for Fiscal Years 2008-09 and 2009-10, shall remain unchanged and in effect unless modified by this Contract Extension. The new expiration date of the MOU shall be June 30, 2014, and the MOU shall be amended as follows: AMENDED ARTICLE IV (new language in bold italics) 4.3 Salary Adjustments o F. Effective July 1, 2009, there shall be no salary increase for employees covered by this Agreement. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute an additional 2.3% of their salary (for a total of 6.3%) toward the 2.7% at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. o G. Effective January 1, 2010, there shall be no salary increase for employees covered by this Agreement. H. Effeetiye July i, 2010, the base salary ef empleyees eeyered by this Agreem o shall be ineressed by eight (8) salary rate ranges (appreximetely H. Effective July 1, 2010, there shall be no salary increase for employees covered by this Agreement. 1€ffeetive January 12011, the 0 shall be ineressed by fiye (6) salary rate ranges (appreximetely FBA Contract Extension: 2010-2014 25D-3 Page 1 -3 I. Effective January 1, 2011, there shall be no salary increase for employees covered by this Agreement. J. Effective July 1, 2011, there shall be no salary increase for employees covered by this Agreement. K. Effeetive January 12012, there by this Agreement. 9. Effective January 1, 2012, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.5%). L. Effective July 1, 2012, there shall be no salary increase for employees covered by this Agreement. A Effective January 1, 2013, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 47o). N. Effective FY2013-14, there shall be no salary increase for employees covered by this Agreement. 0. Should any other bargaining unit receive a salary or benefit increase that is of greater value than the combined value of that set forth in "Han"g= "K" and W hereof during the term of this Agreement, the SAFBA shall be granted that- solar er benefit equiYalent as well the value of that additional salary or benefit. AMENDED ARTICLE IX (new language in bold italics) 9.5 Compensation for Overtime - Fire Suppression Personnel Assigned to the 24- Hour Duty Work Schedule. A. Overtime Duty: Emergency or Scheduled. A Fire Suppression pei-sennel employee who etpe is required to remain on active duty or who volunteers to work overtime following the scheduled termination of his or her tour of duty will be paid overtime at the rate of one and one-half times his or her regular hourly rate of pay for all such time worked in excess of his or her regularly scheduled workday or work schedule. 1. The regular hourly rate of pay will be computed by dividing the employee's regular monthly base rate of pay, plus pay additives, by 243. 2. FBA Contract Extension: 2010-2014 25D-4 Page 2 -4 A suppression employee shall have two options for compensation for overtime work: a) Monetary Payment - The employee may receive cash overtime pay at one and one-half times his or her regular hourly rate for all such time worked in excess of his or her regularly scheduled workday or work schedule. b) Compensatory Time - The employee may receive time off with pay at a rate of one and one-half hours for every hour of overtime worked. Compensatory time may be accumulated to a maximum of 144 hours. Compensatory time may be used in any hourly increment. Compensatory time off shall be taken at the discretion of the employee, provided it does not unduly disrupt the operations of the Fire Department. The requirement to backfill on overtime shall not unduly disrupt the operations of the Fire Department. subject- te the eperatienal needs and steffw@ The SAFBA agrees that the first 24-hour overtime shift worked by every suppression employee in Fiscal Years 2009-10, 2010-11, 2011-I2, 2012-13, and 2013-14 shall be taken as compensatory time and placed into their employees' Compensatory Time Banks. Should any employee exceed the maximum 144 hours allowed in the compensatory time bank, that time shall be paid in cash as overtime. The parties hereto further agree that the City shall not be required to backfill for employees taking compensatory time off, for a period of t we four (4) years, ending July 1, 2-044 2011. During that period, the SAFBA agrees to allow the Department to utilize step-up (move-up) for any staffing issues created by members' use of compensatory time. The parties agree that- these medifiestiens te Seetien 9.6 setisfy the entire furleugh equiyeleney burden te the SAFBA fer the term ef this Agreement. C. Staffing Levels. 1. , The minimum daily staffing level (without Battalion Chiefs) for Suppression and EMS shall be as follows: • July 1, 2010 through June 30, 2012: 63 personnel (reduction of one Captain, one Engineer and one Firefighter per shift) FBA Contract Extension: 2010-2014 25D Page 3 -5 • After July 1, 2012: 64 personnel (Whether the additional position is of the Firefighter, Engineer, or Captain rank shall be determined mutually by the parties). The hiring practice will be to hire Firefighters as follows: • juiy 1, 2004 thi-eugh june 30, 2006: When the steffing 'eye' i-eeehes 192 • juiy 1, 2006 thi-eugh june 30, 2007: When the steffing 'eye' i-eeehes 195 • juiy 1, 2007 thi-eugh june 30, 2008: When the steffing 'eye' i-eeehes 198 • July 1, 2010 through June 30, 2012: When If, during the term of this Agreement, the number of permanent employees assigned to Fire Suppression in ranks represented by the SAFBA drops to t-eeehes 189 or less , the City wi= 4 may then hire additional employees, provided, however, that the maximum number of te-e steffing 'eye' ef 195 permanent employees assigned to Suppression in ranks represented by the SAFBA shall, in no event, exceed 195. • After July 1, 2012: essigned te Suppi-essien, the City will then hii-e te e steffing 'eye' ef 198 If, during the term of this Agreement, the number of permanent employees assigned to Fire Suppression in ranks represented by the SAFBA drops to 192 or less, the City may then hire additional employees, provided, however, that the maximum number of permanent employees assigned to Suppression in ranks represented by the SAFBA shall in no event exceed 198. In the event there is a change in the deployment of apparatus, the City will increase staffing levels to support this deployment. For purposes of this Agreement, the City agrees to maintain the following deployment levels on duty daily: • July 1, 2010 through Tune 30, 2012: 14 Captains, 14 Engineers, 35 Firefighters or Firefighter/Paramedics, and 6 Staff Captains. • After Tuly 1, 2012: 14 Captains, 14 Engineers, 35 Firefighters or Firefighter/Paramedics, 6 Staff Captains, plus one additional position to be determined mutually by the parties (see V" above). 2. If, due to budget overruns or revenue shortfalls budget appropriations are insufficient to fund the minimum staffing level during the term of this Agreement, FBA Contract Extension: 2010-2014 25D-6 Page 4 -6 then this provision of the Agreement is subject to being reopened for negotiation. Between Ju/y 1, 2010 and June 30, 2014, any change shall be by mutual agreement of the City and FBA. 3. Effective July 1, 2010 through June 30, 2014: The parties agree that the City shall not be required to 'backfill" for up to one employee per platoon to attend Paramedic School. AMENDED ARTICLE X (new language in bold italics) 10.3 Cash Option - All m ems employees covered by this Agreement shall be given an option, twice per calendar year, concurrent with the longevity vacation cash out option, to receive cash compensation on a straight time basis in lieu of all or part of their holiday leave benefits set forth in section 10.2 above. Such option may be eliminated or modified at the discretion of the Fire Department or to the extent it is construed as overtime under Department of Labor guidelines implementing provisions of the Fair Labor Standards Act (FLSA). Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Year 2009-10 the employee's ability to cash out holiday leave time. The ability to cash out holiday leave time shall be re-instated July 1, 2010. During the term of this Agreement, such deferral shall not affect an employee's ability to be compensated for the accumulated holiday leave time upon separation from employment with the City, not to exceed a maximum of 216 hours. 10.5 A maximum of one (1) year of accrued Holiday leave time hours benefits may Abe carried over from one calendar year to the next. Effective July 1, 2010, employees choosing to cash out their holiday time may do so to a maximum Yalue of 1.33 x 108 hears, er of 144 hours per year. During the term of this Agreement, such limit on yearly cash-out shall not affect an employee's ability to be compensated for the accumulated holiday leave time upon separation from employment with the City, not to exceed a maximum of 216 hours. AMENDED ARTICLE XI (new language in bold italics) 11.2 Regular Vacation Period E. Computation of Regular Vacation 2. During the term of this Agreement, no employee may carry over from one calendar year to the next more than the equivalent of twe three (3) regular vacation periods and twe three (3) longevity vacation periods from the previous two years., end Yeeetie" FBA Contract Extension: 2010-2014 25D-7 Page 5 -7 A regular vacation period is defined as the maximum amount of vacation earned in a calendar year as provided in Subsection 11.2A above. 3. The time at which an employee shall take his or her vacation shall be determined by seniority within rank, with due regard for the needs of the Department. 4. The policy requiring minimum mandatory annual pre-selected vacations as set forth in the Manual of Operations (M.O.O.) shall be suspended for the term of this Agreement. Annual pre-selected vacation will be voluntary and a M.O.O. policy shall be drafted to reflect this change. Additionally, all employees shall be given the option to cancel and bank their unused Calendar Year 2009 pre-selected vacations (subject to maximum vacation accrual limitations). 11.3 Longevity Vacation. D. All m ems employees covered by this Agreement shall be given an option, twice per calendar year, concurrent with the holiday cash out option, to receive cash compensation on a straight time basis in lieu of all or part of their longevity vacation leave benefits set forth in Subsection A above. Such option may be eliminated or modified at the discretion of the Fire Department or to the extent it is construed as overtime under Department of Labor guidelines implementing provisions of the Fair Labor Standards Act (FLSA). Effective July 1, 2009, all employees covered by this Agreement shall defer for the duration of Fiscal Years 2009-10, 2010-11 and 2011-12 an employee's ability to cash out longevity vacation leave time. The ability to cash out longevity vacation leave time shall be re-instated July 1, 2012. This deferral shall not affect an employee's ability to be compensated for the accumulated longevity vacation leave time upon separation from employment with the City. Effective July 1, 2010, employees choosing to cash out their longevity vacation may do so to a maximum Yalue of 1.33 x 12 r of 160 hours per year. This cap on annual cash-out of longevity vacation shall not affect an employee's ability to be compensated for a// accumulated longevity vacation leave time upon separation from employment with the City. AMENDED ARTICLE XIV (new language in bold italics) 14.6 Retiree Health Insurance. liffeetiye Peteberr2004;t-The City shall contribute each October 1 an amount equal to ° FBA Contract Extension: 2010-2014 25D Page 6 -8 , t-espeetiyely, the City she" eenti-ibute one and three quarter percent (1.75%) of the bargaining unit's salary base, including assignment pays to the fund. a fund for the purpose of providing premium reduction assistance. This program is for premium reduction only and is provided for bargaining unit employees retiring after July 1, 1989. The SAFBA shall be entitled to inspect/audit the financial affairs and status of the fund. The SAFBA agrees to defer the City's annual FBA Retiree Health Insurance Fund (Fund 84) October 2009 deposit to a date no later than March 31, 2010. Interest shall continue to accrue during this deferral period as stipulated by the Fund 84 Policy. The Association agrees to a loan of $700,000 from Fund 84 (FBA Retiree Health Insurance Fund) to Fund 11 (General Fund), effective November 1, 1996. The loan is to be for an indefinite term at an annual interest rate of 5.65%, and will be repaid when necessary, based on the fiscal condition of the FBA Retiree Health Insurance Fund. The City shall provide the Association an annual report on the status of Fund 84 and the status of the loan from Fund 84. As of July 1, 2010, the parties acknowledge that the entire $700, 000 loan is outstanding. The City and Association agree to form a joint labor-management committee for the purpose of formulating a plan by which the Association will take over the administration of this fund during the term of this Agreement. Once the Association accepts responsibility for the administration of the plan, the FBA will provide an independent actuarial valuation to the City on an annual basis. AMENDED ARTICLE XV - (new language in bold italics) 15.5 Payment of 3% at 50 Service Retirement Benefit. The eetue' st fei. the benefit shell be The City and Association agree that eligible employees will pay , met to eeed .93% of sefety pery~eal the City's employer contribution. Effective January 1, 2011, this employee contribution shall be increased to 1.43%. 15.6 Yearly Actuarial Valuation Fluctuations. CalPER5 provides the City with a yearly actuarial valuation informing it of its new employer contribution rate to be in effect July 1St of each year. The City and Association agree that the City's employer contribution rate will fluctuate from year to year based on this investment returns earned by the retirement system. The City agrees that current eligible safety employees paying to receive this benefit should also benefit from this yearly fluctuation in the City's annual actuarial valuation. ° FBA Contract Extension: 2010-2014 25D Page 7 -9 0 Should the City employer contribution rate meet or exceed 257. during the term of this Agreement, the City and Association agree to a reopener of this section, but there shall be no changes without the mutual written agreement of the parties. AMENDED ARTICLE XXVI (new language in bold italics) 26.1 The term of this Agreement shall be from July 1, 2010 through June 30, 2014. 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 29*h 20th day of die September 2010. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: By: MAYOR Dated: By: CITY MANAGER Dated: By: EXECUTIVE DIRECTOR PERSONNEL SERVICES ATTEST: APPROVED AS TO FORM: CLERK OF THE COUNCIL CITY ATTORNEY FBA Contract Extension: 2010-2014 Page 8 25D-10 This Agreement has been ratified by the membership of the Santa Ana Firemen's Benevolent Association. Dated: SANTA ANA FIREMEN'S BENEVOLENT ASSOCIATION By: MARK EIDE, PRESIDENT FBA Contract Extension: 2010-2014 Page 9 25D-11 25D-12