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HomeMy WebLinkAboutFIREMEN'S BENEVOLENT ASSOCIATION (FBA) -2012A-2012-035 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA, THE SANTA ANA FIREMEN'S BENEVOLENT 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 Firemen's Benevolent Association (hereinafter "SAFBA") and the individuals whose names and signatures adorn this agreement. WHEREAS, SAFBA 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 SAFBA whose rights and interests are affected by the contracting of firefighting and related services to the Orange County Fire Authority (hereinafter "OCFA"); WHEREAS, the labor relationship between SAFBA and the City is governed in part by a Memorandum of Understanding and various side letter agreements; WHEREAS, the city is desirous of contracting-out firefighting and related services currently being performed by SAFBA members to OCFA; WHEREAS, SAFBA and the City have informally met and discussed issues associated with contracting-out firefighting and related services to OCFA and, through such informal discussions, have reached an agreement concerning the rights and entitlements of its members in the event the City and OCFA should enter an agreement for the contracting of firefighting and related services; WHEREAS, SAFBA and the City wish to memorialize their agreement and provide for certain rights and entitlements of SAFBA members associated with the contracting-out of firefighting and related services to OCFA; and 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 SAFBA 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 SAFBA agree that the City shall be permitted to contract out firefighting and related services currently provided by SAFBA and its members effective 8:00 a.m. on April 20, 2012, according to the terms of the provisions of this MOU. At the time of such contracting-out the Memorandum of 1 Understanding (with an expiration date of June 30, 2014) between the City and the SAFBA will no longer have effect. 3. Relinquishment of Salary Increase: The Memorandum of Understanding (with an expiration date of June 30, 2014) between the City and the SAFBA provides that employees of the SAFBA shall receive a salary increase of 2.5% effective January 1, 2012. That salary increase was implemented on January 1, 2012 and the increase was reflected in SAFBA members' paychecks effective on the payroll checks following January 1, 2012. The City and the SAFBA agree the salary increase is rescinded and shall not be provided on any paychecks beyond the first paycheck of 2012 and that leave payoffs to which the parties have agreed herein will not reflect the 2.5% increase. 4. Transitioning Employees or New Hires: All sworn employees shall be deemed "transitioning" employees on the effective date that firefighting and related services are contracted out. Transitioning Santa Ana Employees will receive the top step base salary (Step 12) plus applicable bonus pays (per MOU) for the rank that the employee transitioned into, unless the Santa Ana employee's total compensation (base salary plus applicable bonuses) is not currently comparable or equivalent to the OCFA Step 12. In that case, the OCFA Human Resources Director will select the closest comparable salary rate from the applicable OCFA salary schedule that that does not provide the employee with a decrease from the amount of the employee's current Santa Ana compensation (salary plus bonuses only). The intent is for transitioning employees not at top step to receive a base pay rate so that when considered with their applicable OCFA bonus pay(s) their compensation is as close as possible to their current Santa Ana compensation as defined. Notwithstanding the foregoing, SAFBA employees at top step in Santa Ana (as of the date of transition) who will not transition over at top step at OCFA (Step 12) shall receive a monthly stipend from the City of Santa Ana (for which they will receive an IRS Form 1099) equal to the difference between their base salary at the step they are placed by OCFA and Step 12 of the OCFA salary schedule. The stipend shall expire at the earlier of two years from the date of transition or the date the employee is moved to Step 12. The list of transitioning employees and their applicable base salary step with OCFA is attached hereto as Exhibit 1. All non- sworn employees hired by OCFA shall be deemed new hires and shall be paid at the salary step as attached hereto as Exhibit 2. The parties agree that there is one sworn employee of the SAFBA who, pursuant to a separate agreement with the City, will remain an employee of the City until June 7, 2012 and will not transition to the OCFA. The employee is not a party to this MOU. The parties further agree that there will be one additional Captain position (for a total of 39 Captains notwithstanding the list of 38 Captains transitioning over to the OCFA set forth in Exhibit 1) transitioning over to the OCFA in the position of Administrative Captain. That Administrative Captain position will either be filled by an existing member of the Santa Ana Fire Management Association or a member of the SAFBA. 5. Sworn Members Demoted: The City shall pay directly to any sworn member of the SAFBA who is demoted in rank as a result of the decision to contract firefighting and related services to OCFA a monthly stipend (for which former Santa Ana SAFBA members receiving such stipend will receive an annual IRS Form 1099 for the stipend income 2 received) equal to the difference between the member's OCFA base salary at the demoted rank (e.g., Step 12) and the Step 12 OCFA base salary for the class from which the employee was demoted. For example, if a City Fire Captain is demoted to Step 12 Firefighter with OCFA, the City shall pay to that person a monthly stipend equal to the difference between Step 12 OCFA Firefighter and Step 12 OCFA Captain. The City's obligation to pay such monthly stipend shall continue for twenty-four (24) months from the date of demotion (i.e., the date of transition to the OCFA) or until the member is both promoted to his or her former rank and his or her base salary with OCFA is elevated to Step 12 of that promoted rank, whichever occurs first. A. Some transitioning City employees will be demoted in rank by the OCFA upon transition. The parties agree that any such demotions will be based on seniority in rank, (based upon the manner in which seniority has been calculated in the Department as set forth in Exhibit 3 to this MOU) provided, however, an employee not slated for demotion can elect to voluntarily demote in place of another employee. The City's agreement to directly pay demoted employees a monthly stipend, above, shall apply to any employee who voluntarily demotes (in transitioning over to the OCFA) in place of another transitioning employee who would otherwise be demoted. The parties further agree that if an employee who would not otherwise be demoted chooses to voluntarily demote, the employee who benefits from this decision and is thus not demoted is the employee with the greatest seniority in the rank who would have otherwise been demoted. 6. Members Rejected Due to Industrial Injury or Medical Condition: The City agrees that it will certify as qualified for industrial disability retirement any sworn member of SAFBA who is rejected from employment by the OCFA due to a legitimate industrial injury or other industrial medical condition, upon submission of the required paperwork (DWC-1, etc.). The City agrees that if a non-sworn member is rejected from employment by OCFA due to a legitimate industrial injury or industrial medical condition, it will not contest any application by the employee for an industrial disability retirement filed with the California Public Employees' Retirement System ("CalPERS"), which shall determine whether to grant a disability retirement for such non-sworn member. 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 has ceased to exist as a result of the contracting out of the Santa Ana Fire Department. SAFBA members who are on leave pursuant to Labor Code section 4850 on the date of transition and who thus are not being immediately offered a position by the OCFA will continue to receive their Section 4850 payments for the duration of their statutory entitlement (up to one year) under the law. However, such individuals will not be considered employees of the City beyond the date of transition. SAFBA employees who are off on a non-industrial injury or illness leave or who have exhausted their Labor Code 4850 benefits on the date of transition will be laid off from the City as of the date of transition, and shall be paid for their accrued leaves per the existing MOU between the City and the SAFBA. Pursuant to subparagraph a, below, such employees will also be eligible to become employed by OCFA or file for disability retirement. 3 A. The parties agree that any SAFBA member who fails to meet the standards to be employed by the OCFA on April 20, 2012 because of injury or illness and who either does not seek or does not qualify for a disability retirement will be offered employment by the 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. 7. Dispatch Personnel: The parties agree that full-time Fire Services Dispatchers of the City (up to a maximum of four (4)) who pass a police background investigation shall be given the option of employment as Police Services Dispatchers. If there are more than four (4) full- time Fire Services Dispatchers who wish to remain employed by the City who pass a police background investigation, the parties agree that the four most senior (based on City-wide seniority) shall be offered employment as City of Santa Ana Police Services Dispatchers and the remaining employees will be offered positions as Communications Services Officers. The parties further agree that members employed as Communications Services Officers shall be promoted to Police Services Dispatchers upon obtaining their POST Basic Dispatcher Certificate. The parties agree that employees will be offered employment at the salary step for Police Services Dispatcher or Communications Services Officer, whichever is applicable, that is closest to each employee's salary as a Fire Services Dispatcher and which does not provide the employee a cut in pay of greater than $50 per month; provided, however, under no circumstances will any employee be paid above top step for a Police Services Dispatcher (if assigned as such) or Communications Services Officer (if assigned as such). 8. Civilian Paramedics: Of the SAFBA civilian paramedics, Dawna Cooper meets the job requirements for, and will be offered the position of, EMS Nurse Educator with the OCFA. The City has decided to contract-out Basic Life Support (BLS) transport services 9. Paid Leave Balances: The parties agree that the leave balances provided in the parties' MOU for members of SAFBA being employed by OCFA will be paid or forwarded to OCFA as follows: A. Holiday Leave: The City will cash out 50% of accrued holiday leave at the time of separation from City employment. The remaining 50% will be converted to vacation leave and forwarded to OCFA as set forth below. B. Vacation Leave: Upon separation from the City, the first 350 hours of vacation leave, inclusive of converted holiday leave, will be transferred to OCFA as vacation leave. The City will cash out the remaining amount of accrued vacation leave which, when combined with the converted holiday leave referenced above, exceeds 350 hours total. The vacation bank which transitions over to the OCFA will not be combined with vacation earned while at the OCFA and shall not be counted towards the maximum cap of OCFA vacation accrual. C. Compensatory Time Off ("CTO"): SAFBA members with CTO banks will be offered the following options (at their individual choice): 1) to cash out 100% of their 4 CTO at the time of separation from City employment, or 2) if the amount of vacation leave transferring to OCFA on their behalf (from a combination of holiday and vacation leave) is less than 350 hours, the member can choose to convert any portion of their CTO to vacation which would not result in more than 350 hours of vacation leave being transferred to the OFCA, and be paid for the remaining amount, if any, at the time of separation. D. Sick Leave: Employees will be cashed out for 50% of the accrued sick leave to which they are entitled to a cash-out based on years of service per the current SAFBA Memorandum of Understanding. The remaining 50% of sick leave subject to cash-out will transfer to OCFA but will not be combined with the sick leave earned while at the OCFA and shall not be counted towards any maximum sick leave accrual cap that may be established by OCFA. Any accrued, unused sick leave that is not subject to cash out per the current SAFBA Memorandum of Understanding will be forfeited. E. With respect to the vacation and sick leave transferred to OCFA described in subsections a) through d), above, former SAFBA members will 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 SAFBA member separates from OCFA, all remaining vacation and sick leave which transferred to OCFA from the City will be paid off by the City at the former SAFBA member's regular rate of pay as of April 20, 2012. With respect to any leave described in subsections a) through d) above which the City is paying off to employees as a result of the transition to OCFA, it will be paid to employees on the second payday following the transition date. If that date is April 20, 2012, it will be paid on May 20, 2012. F. Sick Leave for Employees with Less Than Ten (10) Years of City Service: SAFBA employees with less than ten (10) years of service as of April 20, 2012, have no sick leave with cash-out value. Accordingly, the City agrees that it will provide forty-eight (48) hours of sick leave for each such employee upon his or her employment with OCFA. The 48 hours of sick leave will be available to former SAFBA employees for three years from the effective date of the contracting of firefighting and related services with OCFA. Such sick leave may be used for non- occupational illness or injury for which the employee has no OCFA accrued sick leave balance available. Upon expiration of three years, any of this sick leave remaining will be forfeited. In addition, if any such employee separates from OCFA within the three years, such sick leave will have no cash value. 10. Fund 84: The Fund 84 balance (approximately $995,000) and SAFBA Loan (principal & interest of approximately $1,490,000) shall be disbursed to individual Retiree Health Savings Accounts pursuant to instructions provided to the City by SAFBA. Said disbursement shall be made on or about July 16, 2012. The City shall cease subsidy payments to retirees on a date designated by SAFBA, on or about July 16, 2012. The City agrees to continue to administer the subsidy payment program until the disbursement of funds on or about July 16, 2012. The SAFBA agrees to defend the City and hold the City 5 harmless for any legal challenges brought by any former or current employee claiming that the City's administration of the program violates their rights to funds in the program. 11. Bilingual Pay: The parties agree that transitioning employees from the City to OCFA who are assigned to a work location within the City of Santa Ana will be paid $135 per month for Spanish language Bilingual Pay, in lieu of the compensation provided in the Bilingual Pay section of the OCFA MOU. Those employees of the City deemed bilingual as of April 20, 2012, will not be required to take a proficiency test to be deemed bilingual with OCFA. A separate side letter to the OCFA contract with the City contains other specific terms of the Bilingual Pay agreement and is hereby incorporated by reference, attached hereto as Exhibit 4 and deemed an integral part of this agreement. This benefit is a term and condition of employment subject to modification after June 30, 2014 through the bargaining unit representing the sworn employees at the OCFA. 12. Employees Suspended in Last Year: The parties acknowledge that the provision contained in Attachment B to the City's contract OCFA which provides that employees on probation and employees who have been suspended in the one year between April 21, 2011 and April 20, 2012 may have to serve a new period of probation upon transitioning to OCFA. The City hereby certifies that as of the signing of this MOU and through the date of transition, no employee has been served a notice of proposed suspension and/or notice of suspension and none shall be so served. 13. Transitioning Employee and CalPERS Retirement: The parties agree that OCFA will 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 the OCFA and then retiring from CalPERS. OCERS has informed the City that transitioning employees who retire from CalPERS and then work under OCERS, start as a new employee under the OCERS system. Therefore the parties acknowledge that their mutual understanding is that City transitioning employees can transition to OCFA with: 1) full reciprocity elected, 2) no reciprocity elected or 3) starting as a new employee in OCERS and then retiring from CalPERS. 14. 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 otherwise responsible to continue to cover the SAFBA employees' health insurance through the month of May 2012 unless otherwise agreed. The parties agree that since the transitioning employees will be covered by OCFA's health and welfare insurance plans effective on 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 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) will 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. 15. Terms of OCFA Agreement With the City Incorporated Herein: 6 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 SAFBA 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. A. As addressed in paragraphs 1 and 6 above, OCFA will offer employment effective 8:00 a.m., April 20, 2012, 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 SAFBA 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 SAFBA member shall be placed on the date of hire. As addressed in paragraph 4 above sworn SAFBA members listed in Exhibit 1 who accept employment with OCFA shall be referred to as "Transitioning Employees". C. In accordance with the applicable OCFA bargaining unit MOU, Transitioning Employees assigned by OCFA to hazardous materials, ARFF, USAR Logistics, Staff Assignment, EMT, or paramedic assignments will be paid specialty pay. The parties understand and acknowledge that once the Transitioning Employees become employees of the OCFA and members of the applicable bargaining unit at the OCFA, all terms and conditions of employment set forth in the MOU between the bargaining unit and the OCFA are subject to modification in accordance with the law and collective bargaining between those parties. This includes, but is not limited to the specialty pays described herein. D. Transitioning Employees who qualify for bilingual pay, but do not qualify pursuant to Paragraph 11 of this MOU, shall receive the compensation provided under the Bilingual Pay provision of the applicable OCFA bargaining unit MOU. As addressed in paragraph 15c above, this benefit is subject to modification through collective bargaining between the OCFA and the bargaining unit who will be representing the Transitioning Employees at the OCFA. E. Those Transitioning Employees who qualify for Education Incentive Pay pursuant to the terms of the applicable OCFA bargaining unit MOU shall be able to collect such pay upon verification by the OCFA. As addressed in paragraph 15c above, this benefit is subject to modification through collective bargaining between the OCFA and the bargaining unit who will representing the Transitioning Employees at the OCFA. F. Transitioning Employees assigned to positions requiring special training will receive such training. However, once these employees are OCFA employees, the training they receive is up to the OCFA to determine. The parties agree and acknowledge 7 that no part of this MOU guarantees any particular type of training for Transitioning Employees. G. Transitioning Employees will be considered to have passed their probationary period with OCFA, except that any employee who has not completed probation with the City and any employee who has been suspended from duty within the period of April 20, 2011, to April 20, 2012, may be required by the OCFA Human Resources Director to serve a new probationary period of fifty-two continuous weeks from the date he/she is first employed by OCFA. H. Continuous employment with City shall be considered the same as continuous employment with OCFA for all Transitioning Employees only for the purposes of meeting minimum requirements for promotional opportunities and the accrual of vacation and sick leave. Transitioning Employees shall accrue vacation and sick leave at the OCFA at the rates designated in the applicable OCFA bargaining unit MOU. For the 144 most senior Transitioning Employees, continuous employment with City shall be considered continuous employment with OCFA for the purposes of layoff seniority and bid assignment seniority preference. When one of these 144 employees leaves employment with OCFA, the additional seniority credit specified in this subparagraph for City employment shall be applied to the Transitioned Employee who had the longest continuous service with the City but who has not previously received such credit under the terms of this subparagraph. For example if one of the 144 most senior Transitioning Employees separates from OCFA, the 145th most senior Transitioning Employee will bump into the top 144 and receive the service credit for layoffs and assignment bids. J. All Transitioning Employees shall participate in a retiree health defined contribution plan or "Retiree Health Savings Plan" at the OCFA and shall be eligible for reimbursement benefits upon separation from employment from OCFA. K. OCFA will supply new uniforms and additional safety clothing deemed necessary by the OCFA to Transitioning Employees. L. As addressed in paragraph 4 above and set forth in Exhibit 2 to this MOU, OCFA will offer employment effective 8:00 a.m., April 20, 2012, to designated non-sworn personnel employed by City on the effective date of this agreement. Such non- sworn personnel are considered "new hires" for all purposes. 8 M. Exhibit 2 to this MOU sets forth the names of non-sworn SAFBA members who shall be offered employment, the class or job title being offered and the OCFA salary step at which the non-sworn SAFBA member shall be placed on the date of hire. 16. Ratification and Execution. The City and SAFBA have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa. The City and the SAFBA acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of SAFBA 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 SAFBA and entered into this 21St day of February 2012. CITY OF SANTA ANA, a Municipal Corporation of the JUN - 6 202 Dated: Dated: S ATTEST: CLERK OF THE COUNCII klzi Ed Raya Executive Director of Personnel City of Santa Ana Chris Roelle President, Santa Ana Firemen's Benevolent Association Date APPROVED AS TO FORM: Peter Brown ttorney Date .2?IZ Date Robert Wexler, Attorney Date 9 By: CITY MANAGER m a O 0 m v d O a` y J T 0 c N U. 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'O EXHIBIT 4 SPANISH LANGUAGE SPECIALTY PAY AGREEMENT BETWEEN ORANGE COUNTY PROFESSIONAL FIREFIGHTERS ASSOCIATION, IAFF LOCAL 3631 AND ORANGE COUNTY FIRE AUTHORITY TERM OF THE AGREEMENT: APRIL 6, 2012 THROUGH JUNE 30, 2014 PAGE 1 OF 1 The Orange County Fire Authority (OCFA) and the Orange County Professional Firefighters Association, IAFF Local 3631 (OCPFA) hereby enter Into this Agreement on the matter of providing a Spanish Language Specialty Pay In the amount of $135hi mth, for Firefighter Unit members In the classifications of Fire Captain, Firefighter and Fire Apparatus Engineer who hold rights to post positions assigned within the City of Santa Ana (City). in addition, any member serving In the City of Santa Ana StaffOvislon Fire Captain assignment Is eligible for Specialty Pay in the amount of $135/month. Eligibility for the Spanish Language Specialty Pay (Specialty Pay) is subject to all of the following conditions; 1. Employees must have post position rights within the City and be actively working in such a position. 2. Employees must be certified as proficient in conversing In the Spanish Language by either the City of Santa ana or OCFA Human Resources 3. Employees who voluntarily transfer into an administrative assignment, except in situations Involving light duty assignments as a result of a work-relates! Injury, that pmts them from working In their post position on a regularly scheduled basis, are not eligible to receive the Specialty Pay. 4. Employees on leave and not wonting in their post position, except in situations Involving the use of accrued vacation, sick leave, bereavement leave, performing jury duty, or receiving 4850 benefits, are not eligible to receive the Specialty Pay. 5. Employees who maintain post position rights outside of the City, but work overtime or perform sht t- trades within the City, are not eligible to receive the specialty Pay. 6. Employees receiving the Specialty Pay may not concurrently receive Bilingual Pay in accordance with Aftle XXIV, ti #kn ,4 1, of the Firefighter Unit Memorandum of Understanding. However, an employee who Is receiving the Specialty Pay. but surrenders his/her rights to a post position in the City, will convert to receiving Bilingual Pay in accordance with Ste MOU Article referenced herein. 7. Eligible employees will continue to receive the Specialty Pay at the rate of $135/month when assigned to a "strike team` or engaged In out-of-coLity suppression assignments as long as they maintain their post position rights within the City. 8. The Specialty Pay that is part of the empkryee's regularly scheduled hours is considered 'compensation Eamable' and Is subject to the sane treatment as all other forms of "Compensation Eamabie' It will be included in the FLSA calculation.