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HomeMy WebLinkAbout60B - AGREEMENT WITH THE FIRE MANAGEMENT ASSOCIATIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 21, 2012 TITLE: AGREEMENT WITH THE FIRE MANAGEMENT ASSOCIATION CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2nd 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 the rights and entitlements of members should the City contract with the Orange County Fire Authority to provide firefighting and related services. DISCUSSION The City and the Fire Management Association (FMA) recently completed negotiations delineating the terms and conditions applicable to FMA members should fire services be contracted out to the Orange County Fire Authority (OCFA). The provisions of this agreement are as follows: 1) Contracting Out Effective Date: The contracting out of fire management services to OCFA will begin at 8:00 a.m. on April 20, 2012. At the time of such contracting out, the current Memorandum of Understanding (MOU) with the FMA will no longer be in effect. Should the transition not occur before June 15, 2012, the negotiated terms described below will become null and void. 2) Salary Increase: The current Memorandum of Understanding provides a 3.5% salary increase effective July 1, 2012. This salary increase will not be implemented. 3) Salary Upon Transition to OCFA: Transitioning members will receive OCFA's top step salary plus applicable salary additives. 60B-1 Agreement with the Fire Management Association February 21, 2012 Page 2 4) Disability Retirements: Any sworn member who is rejected from employment by OCFA due to an industrial injury or medical condition will be certified as qualified for an industrial disability retirement. Any member who has not received a disability retirement and receives clearance to return to full working status per OCFA standards will be offered employment with OCFA for up to one year from the initial contract date. 5) Paid Leave Balances: The City will address leave balances in the following manner: Holiday Leave: 100% paid to employees at separation. Vacation Leave: Up to 350 hours transferred to OCFA; any remaining vacation leave up to 350 hours will be paid to employees. City vacation hours which transfer to the OCFA will not be combined with vacation hours earned while at the OCFA. Sick Leave: Up to 350 hours transferred to OCFA. Remaining sick leave eligible for the City's cash out option will be paid to employees at separation. Order of usage: Following transfer to OCFA, members will be required to use accrued OCFA leave prior to using the vacation and sick leave transferred from the City. In five years, or earlier if the member separates from service, all remaining vacation and sick leave which transferred to OCFA will be paid off by the City at the member's rate of pay upon separation from the City. 6) Retiree Health Savings Account (Fund 105): Fund 105 monies will be disbursed to individual health savings accounts and deposited with ICMA-RC, a vendor that manages the City's Retirement Health Savings Plan. Subsidy payments to retirees will cease on March 16, 2012. 7) Retiring Personnel: Employees who have retired from CalPERS will not begin work with OCFA prior to the initial date of the contract. However, employees may retire from CalPERS following their transfer to OCFA and such employees will enter the Orange County Employees Retirement System (OCERS) as new members. Non-retiring employees transferred to OCFA will enter OCERS with the option of electing reciprocity with CalPERS or no reciprocity with CalPERS. 60B-2 Agreement with the Fire Management Association February 21, 2012 Page 3 8) Benefits: City-provided health insurance (medical, dental, vision), life and long term disability insurance, and flexible spending plans will cease April 30, 2012. OCFA will provide health insurance coverage effective May 1, 2012. FISCAL IMPACT The FY11-12 Budget has sufficient funding to cover the net cost of final FMA negotiated items resulting from transitioning Santa Ana Fire to OCFA. It is estimated that the new OCFA fire service contract will generate annual savings to the City of $8.7M to $10M commencing with Fiscal Year 2012-13. APPROVED AS TO FUNDS AND ACCOUNTS: 0 Edward Raya Executive Director Personnel Services Agency -, Francisco Gutierrez Executive Director Finance & Management Services Agency 60B-3 60B-4 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA FIRE MANAGEMENT ASSOCIATION, AND THE INDIVIDUALS LISTED HEREIN This Memorandum of Understanding (hereinafter "MOU") is by and between the City of Santa Ana (hereinafter "City"), the Santa Ana Fire Management Association (hereinafter "SAFMA") and the individuals whose names and signatures adorn this agreement. WHEREAS, SAFMA is the recognized employee organization for designated classifications of employees employed by the City's Fire Department; WHEREAS, the individuals who are a party to this MOU are members of SAFMA whose rights and interests are affected by the contracting out of management oversight of firefighting and related services to the Orange County Fire Authority (hereinafter "OCFA"); WHEREAS, the labor relationship between SAFMA and the City is governed in part by a Memorandum of Understanding that, through various side letter agreements, has been extended through June 30, 2014 but which will expire upon the effective date of the contracting out of the City's Fire services to the OCFA; WHEREAS, the City is desirous of contracting out management oversight of firefighting and related services currently being performed by SAFMA members to OCFA; WHEREAS, SAFMA and the City have informally met and discussed issues associated with contracting out management oversight of firefighting and related services to OCFA and, through such informal discussions, have reached an agreement concerning the rights and entitlements of SAFMA members in the event the City and OCFA should enter an agreement for the contracting of firefighting and related services; and WHEREAS, SAFMA and the City wish to memorialize their agreement and provide for certain rights and entitlements of SAFMA members associated with the contracting out of firefighting and related services to OCFA. NOW, THEREFORE, the parties to this agreement hereby covenant and agree as follows: 1. Effective Date of Contracting Out of Fire Services to the OCFA: The City and OCFA have agreed to commence the contracting of services on April 20, 2012; provided, however, that if the transition does not occur on or before June 15, 2012, this MOU shall become null and void. The date of April 20, 2012 may be extended by mutual written agreement of SAFMA and the City and such extended date shall be incorporated into this agreement and replace each instance where April 20, 2012 is used herein by such new date. 2. Contracting of Firefighting and Related Services: The City and SAFMA agree that the City shall be permitted to contract out management oversight of firefighting and related services currently provided by SAFMA and its members effective 8:00 a.m. on April 20, 1 60B-5 2012, according to the provisions of this MOU. At the time of such contracting out, the Memorandum of Understanding (with an expiration date of June 30, 2014) between the City and SAFMA shall no longer have effect. 3. Status of Scheduled Salary Increase: The memorandum of understanding (with an expiration date of June 30, 2014) between the City and SAFMA provides that employees of SAFMA shall receive a salary increase of 3.5% effective July 1, 2012. That salary increase shall not be implemented, since it is due subsequent to the April 20, 2012 transition date to OCFA. 4. Transitioning Employees or New Hires: All City of Santa Ana Fire Battalion Chiefs shall be deemed "transition ing" employees on the effective date that firefighting and related services are contracted out. Transitioning Santa Ana Fire Battalion Chiefs shall receive the top step base salary for any position to which the member is assigned, plus applicable bonus pays (per appropriate OCFA MOU) for the rank of Fire Battalion Chief. The list of transitioning Fire Battalion Chiefs and their applicable base salary step with OCFA is attached hereto as "Exhibit 1 - Transitioning Employees" (attaches!). The City of Santa Ana Administrative Chief/Fire Marshal shall be hired as a non-sworn employee in the position of Assistant Fire Marshal, and shall receive the top step base salary (Step 12) plus applicable bonus pays (per appropriate OCFA MOU), and shall be deemed a new hire by OCFA as attached hereto as "Exhibit 2 - New Hires" (attaches!). 5. Members Rejected Due to Industrial Injury or Medical Condition: The City agrees that it shall certify as qualified for industrial disability retirement any sworn member of SAFMA who is rejected from employment by OCFA due to a legitimate industrial injury or other industrial medical condition, upon submission of the required paperwork (DWC-1, etc.). The parties agree that if a disability retirement is not granted, the City is under no obligation to reinstate the employee to employment with the City as the employee's position shall have ceased to exist as a result of the contracting out of the Santa Ana Fire Department. A. The parties agree that any SAFMA member who fails to meet the standards to be employed by OCFA on April 20, 2012 because of injury or illness and who either does not seek or does not qualify for a disability retirement shall be offered employment by OCFA upon meeting such standards, provided, however, OCFA shall not be obligated to offer any employment beyond one year from the effective date of the contracting out of firefighting and related services. B. Upon meeting the standards for employment and within the one year referenced in (a) above, the member shall be granted employment per Exhibits 1, 2, 3 and 4 (attached. 6. Leave Balances: The parties agree that the accrued leave balances for members of SAFMA being employed by OCFA shall be paid or forwarded to OCFA as specified below. A. Upon transition, the City of Santa Ana will establish a leave bank not-to-exceed 350 hours for each transitioning employee who transitioned from a Fire Management Association position at the City. These leave bank hours are based on shift schedules, 2 60B-6 and therefore, will be converted to staff hours, as appropriate, depending on the transitioning employee's assigned position. 1. Holiday Leave: The City shall cash out one hundred percent (100%) of the holiday leave time banks at the time of transitioning employees' separation from City employment. 2. Vacation Leave: Upon transitioning employees' separation from the City, up to a maximum of three hundred and fifty (350) hours of vacation leave shall be transferred to OCFA as part of the transitioning employee's leave bank. Each member shall designate how many hours of his/her current City vacation leave, up to a maximum of three hundred and fifty (350) hours, shall be transferred to OCFA. The City shall cash out the amount of accrued vacation leave, including management vacation, minus the amount designated by the member for transfer to OCFA, not to exceed three hundred and fifty (350) hours total. The vacation bank which transitions over to OCFA shall not be combined with vacation earned while at OCFA. 3. Sick Leave: Upon separation from the City, up to three hundred and fifty (350) hours of sick leave shall be transferred to OCFA as part of the transitioning employee's leave bank. Each member shall designate how many hours of his/her current City sick leave, up to a maximum of three hundred and fifty (350) hours, shall be transferred to OCFA. The City shall cash out the remaining balance of sick leave per the current SAFMA MOU. Any accrued, unused sick leave that is not subject to cash out per the current SAFMA Memorandum of Understanding shall be forfeited. B. OCFA recognizes that each employee's leave bank was derived from a combination of accrued holiday leave, vacation leave, and sick leave while employed by the City; however, upon transition, the leave balances shall be treated by OCFA as General Leave, and no longer tracked based on the individual categories listed above. C. General Leave banks transferred from the City will be tracked separately from new OCFA leave time accrued by the transitioning employees under the applicable MOU, and shall be used as a supplement to OCFA accrued vacation and sick leave. Transitioning employees shall be required to exhaust the balance of their respective OCFA accrued leave banks before using the General Leave transferred from the City. Use of all leave time, whether General Leave or OCFA accrued leave, must comply with OCFA's applicable MOU; however, General Leave banks are not eligible to be cashed- out by OCFA in lieu of using said time. D. The General Leave balance in each employee's leave bank shall be available for use by transitioning employees, as described above, up until and including April 13, 2017. OCFA shall pay amounts due to transitioning employees who use time from the City's General Leave bank, and the City will repay such amounts to OCFA, as invoiced on a quarterly basis. E. Any amounts remaining in the transitioning employees' General Leave banks effective April 14, 2017 (or such earlier date if the transitioning employee separates from OCFA) 3 60B-7 will no longer be available for use by transitioning employees. OCFA will provide a report to the City within 30 days after April 14, 2017 (or within 30 days following separation) detailing the hours remaining in each employee's bank. With respect to the vacation and sick leave transferred to OCFA described in subsections A through C, above, former SAFMA members shall be required first to use their OCFA accrued vacation and sick leaves, respectively, before using the vacation or sick leave which transferred from the City. On April 14, 2017, or such earlier date if the former SAFMA member separates from OCFA, all remaining vacation and sick leave which transferred to OCFA from the City shall be paid off by the City at the former SAFMA member's regular rate of pay as of April 20, 2012. With respect to any leave described in subsections 1 through 3 above which the City is paying off to employees as a result of the transition to OCFA, it shall be paid to employees on the second payday following the transition date. If that date is April 20, 2012, it shall be paid on May 20, 2012. 7. Fund 105: The City shall cease subsidy payments to retirees on or about March 16, 2012. The City agrees to amend the existing contract with its current Retirement Health Savings Plan ("RHS") vendor, 1CMA-RC", to allow current SAFMA members and retirees to participate in the "Vantage Care" RHS. SAFMA shall determine how the existing funds shall be divided among its current members and retirees. All existing funds shall be deposited into the RHS established specifically for SAFMA by April 16, 2012. 8. Transitioning Employees, New Hires and CaIPERS Retirement: The parties agree that OCFA shall not offer employment to City personnel who retire from the City prior to April 20, 2012. However, the parties agree that employees are not precluded from transitioning to OCFA and then retiring from CalPERS. OCERS has informed the City that transitioning employees, and new hires who retire from CalPERS and then work under OCERS, start as new employees under the OCERS system. Therefore, the parties acknowledge that their mutual understanding is that City transitioning employees and new hires able to transition to OCFA: 1) with full reciprocity elected, 2) with no reciprocity elected or 3) starting as a new employee in OCERS and then retiring from CalPERS. 9. Health Insurance for the Month of May 2012: The parties acknowledge that by transitioning to the OCFA on April 20, 2012, the City would be responsible to continue to cover the SAFMA employees' health insurance through the month of May 2012 unless otherwise agreed. The parties agree that since transitioning employees will be covered by OCFA's health and welfare insurance plans effective May 1, 2012, the City need not cover such employees for any health insurance (including medical, dental and vision insurance) beyond April 30, 2012. As such, this agreement constitutes a clear waiver of the right to city-sponsored health insurance coverage in May 2012 and beyond. All other health and welfare benefit plans sponsored by the City (including dental, vision, life and AD&D, long- term disability insurance and flexible spending plans) shall cease on April 30, 2012 per the current contract provisions with each insurance provider, and notification of COBRA Election Rights will be sent to all affected qualified beneficiaries. 4 60B-8 10. Terms of OCFA Agreement With the City Incorporated Herein: The City and OCFA have negotiated a Fire Services and Emergency Medical Services Agreement which governs the provision of firefighting and related services to the City, some terms of which impact the wages, hours and other terms and conditions of employment of SAFMA members that will become employees of OCFA. The parties agree that the following provisions of the City's agreement with OCFA are incorporated herein and are thus part of this MOU between the parties. Additional specific information is contained as "Exhibit 3 - Transition of Employment Agreement between Orange County Chief Officers Association and Orange County Fire Authority". A. As addressed in item one (1), page one: Effective Date of Contracting Out of Fire Services to the OCFA and item five (5), page two: Members Rejected Due to Industrial Injury or Medical Condition above, OCFA shall offer employment effective 8:00 a.m., April 20, 2012, or as soon thereafter as possible if that date cannot be accommodated by all of the tasks which must be accomplished by that date, to personnel employed by City on the effective date of this agreement who meet the minimum physical and medical standards for their designated positions with OCFA, as determined by a physical examination conducted prior to April 20, 2012. B. "Exhibit 1" to this MOU sets forth the names of sworn SAFMA members who shall be offered employment subject to the terms of this MOU. "Exhibit 1" includes the rank or job title being offered and the OCFA salary step at which the SAFMA member shall be placed on the date of hire. As addressed in paragraph 4 above sworn SAFMA members listed in "Exhibit 1" who accept employment with OCFA shall be referred to as "Transitioning Employees". C. Transitioning Employees shall be considered to have passed their probationary period with OCFA. D. Continuous employment with the City shall be considered the same as continuous employment with OCFA for all Transitioning Employees for the purposes of meeting minimum requirements for promotional opportunities, lay-off protections and the accrual of vacation and sick leave. "Exhibit 4" to this MOU sets forth the seniority in rank for Transitioning Employees. Transitioning Employees shall accrue vacation and sick leave at the OCFA at the rates designated in the applicable OCFA bargaining unit MOU for employees based on years of service, which includes service time with the City of Santa Ana. Transitioning members shall be governed by the provisions outlined in as "Exhibit 3". E. As addressed in item four (4), page two: Transitioning Employees or New Hires and set forth in "Exhibit 2" to this MOU, OCFA shall offer employment effective 8:00 a.m., April 20, 2012, to one designated non-sworn employee, who held the sworn position of Administrative Chief/Fire Marshal with the City on the effective date of this agreement. Such non-sworn employee is considered a "new hire" for all purposes. 5 60B-9 F. "Exhibit 2" to this MOU sets forth the name of the sworn Administrative Chief/Fire Marshal who shall be offered employment, the class or job title being offered and the OCFA salary step at which the non-sworn SAFMA member shall be placed on the date of hire. G. Other specific information relative to wages, hours, and other terms and conditions of employment is contained in the applicable OCFA bargaining unit MOU's. Such items are subject to modification through the collective bargaining process between the OCFA and the bargaining unit which represents such employees. 11. Ratification and Execution. The City and SAFMA have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa. The City and the SAFMA acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of SAFMA 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 SAFMA and entered into this 21St day of February 2012. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: Dated: Dated: ATTEST: CLERK OF THE COUNCIL By: MAYOR By: CITY MANAGER By: EXECUTIVE DIRECTOR - PERSONNEL SERVICES APPROVED AS TO FORM: CITY ATTORNEY This Agreement has been ratified by the membership of the Santa Ana Fire Management Association. Continued next page 6 60B-10 Dated: SANTA ANA FIRE MANAGEMENT ASSOCIATION By: RANDY BLACK, PRESIDENT Anthony Espinosa James Henery Delores Smith 60B-11 60B-12 2 CL 0 N O N N w M m m 0 Q to co m Q d Q J cl LL Q U v7 O O ~ f» En (A Q M rn M N Cl) O N oo ffl n 0 60 z O Q CA N V3 m N t4 0 0 N N 2 _ LU 0 0 a m ° U LL U a U ( U F 1? ? n ? v^i ?i ? ? o e o W ? a 0 0 0 a? a a? ° Li ii u_ LL H U U U OLL ul ? IQ NmQ '_ h sv u.nl Z d 6 L L U. U U c c u y o O 00 0) LL T ii LL 2 LL w U w O O Ir w aJ LL O z > 2 O w Z LL 0 L -0 cu o f N E z z a X cu 0 Q LU Exhibit 1 zZ N z a 2 v m c O -1 m w = U T Q LL w U ° N Cl) m LL. OO w(0 60B-13 60B-14 2 a 0 N a W N ~ N n N Q >- 00 m N r LL U N co O m b9 v Q -j a0o N ?- U 0 ? m W LL d' a o C LL a .o (1) z 0w LL N Q Q CO) m a U U O z O v a Q a LL U O w ? W O Z LL N O O O d ? LL ? z w0 LU P: < a Exhibit 2 = Z z W F w 0 Z J n N U W S LL W y O O 60B-15 60B-16 TRANSITION OF EMPLOYMENT AGREEMENT BETWEEN ORANGE COUNTY FIRE AUTNORITy CHIEF OFFICERS ASSOCIATION AND Tt7M1 OF AGREEMENT ORANGE COUNTY FIRE AUT?? 281TFRtO M DECEMBER 11, 2013 PAGE 1 OF 2 In oorrsideration of the Orange County Fire Authority's r0CFAj intent to, by contractual Waamarrt, provide fire services for Pic agues within Orange County who had previous Prov?l e fiM Wv1M thn Vh their own Fire Mpartment, the Orange County Fire Auk and th the OrsrlgO County Fire ?g provisions i Authority Chief 0Mogrs Assoc n C'OCFACOAJ agree to the within Oran Co s In xA t the transition of empbyan from ot? ilk fire service sgencW with the OCFA: 1. Except as 8Pedficaoy modified In 2., 3., 4., and 5. below, son fine service agency employees shall be based on the dated of ?? pubes fire service agency b the OCFA. 2. Transitioning public fine service agency employ' oontinuous smPloyment with the public fire service agency from which they are Vansitioning -hall oonwidered the as continuous employment with the OCFA for the purpose a A. Sick leave and vacation accruals, and 13. Meeting minkrum M*sfrements for promotional cpiortunjties. 3. Transitloning Public fine aervioe agency OrrPbYees' continuous Public fie service agency from which they are transitieoni eminsMe rat with the as continuous employment with the OCFA for the n9 shoo be filleted the same limitations described below. ?? of Layoff seniority within the A. Credit for public fire service nuns of safety ?bnaer gcy time for layoff seniority shall be limited to the to by the oontracg Public We required for the service level agreed excess of this rwmber shoo not reoelve Vwwy. ova ror the" Ppoem as sPecified in 3.8. below. wPf. except S. When an employee, who has received Mleaves employment with the OCFAthe " credit pursuant to 3.A above, ' e3i0t>8 3.A. above shoo be applied t0 the trarreitieorned SMPIPM public fire service who has the longest oa?tinuous service in the same under the provisioriaof 3A above. ? but who has not Previously received crept for seMority 4. To the extent not provided with their tMnsition to employment with the OCFA, the parties agree to apply the provisions of 3.A and 3.8 above to employees who previomly transitloned to the OCFA from the cities of Stanton end sea Beach 5. To the extent not provided with their transition to employment with the OCFA, the Parties 8130 agree to apply the Provisions of 3.A. and 3.8. above to amps EXHIBIT 3 60B-17 TRANSITION OF EMPLOYMENT AGREEMENT PAGE 2 OF2 who on or before July 1, 1980 transitioned to the OCFA from the California Department of Forestry. 6. Nothing in this Agreerent shall be construed In a manner that would provide credit for service with a public fire service agency other that the OCFA for any purpose not slnaficsslly provided herein. 7. The parties agree that this Agreement resolves an issues regarding seniority for employees transits ft from the California Departrnard of Forestry and dies of Stanton and Seal Beach and all issues regarding seniority for amployaes two in the future from other pubic fire service agencies within Orange County pursuant to service contracts with the OCFA. 8. T he rties agree that this Agreement shad not serve as a precedent for any grievanoe, dispute. lawsult or resolved by this Agreement between Me parties, eV those Issues speclficaliy, 8• Disputes regWdkg the application Of the provisions of this Agreement shall not be subject to appeal through the GrievanOe prooedwe set forth in Article IX of the Fine Management Unit Menwrandum of Linderstanding. ORANGE COUNTY FIRE AUTHORITY CHIEF OFFICERS Ron Mkd. COA Chief Napmmw I AkA- David OA itNbgogabpr Dab ?` ??? 60B-18 ORANGE COUNTY FIRE AUTHORITY I ° UI ofI ID N C W d R W mV O o M 0 d 1- `d d C > d _ d 0 7 d ii W . C N O N d H m ? O q U ° N O 0 o O d ? ? l6 F ` U d U a? U v a U- LL U. E w M O ° U 0 ? d U F > C O_ d a ? ? CD d LL C H LO i N A O co p U a d t ? U F d d LL CL a d 0 C d ? P O O O ? U O o o 0 0 O d a ? N d w U U U U c o 0 0 z co co co V N LL d iL d LL E m z LL O c 0 c d E ? E co Z I Y V C d C A N J ? 07 w W d 2 O y LL n a ti N m ( O EXHIBIT 4 60B-19 60B-20