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HomeMy WebLinkAboutHuntington Beach Fire Management Association (FMA) - 2021-07-01 NTINGT 2000 Main Street, �o oy Huntington Beach,CA off �n�,r N.eF 92648 City of Huntington Beach 1 'z APPROVED 7-0 File #: 23-501 MEETING DATE: 8/1/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Travis K. Hopkins, Assistant City Manager PREPARED BY: Theresa St. Peter, Interim Human Resources Director Subject: Adopt Resolution No. 2023-36 of the City Council of the City of Huntington Beach approving the Side Letter to the Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Fire Management Association for the term July 1, 2021 through December 31, 2023 Statement of Issue: This Side Letter provides language that reflects the agreement reached between the City of Huntington Beach and the Huntington Beach Fire Management Association related to the current Memorandum of Understanding. Financial Impact: The total cost for the 10 additional hours of scheduled overtime each work period for 24-hour shift employees through December 31, 2023, is $46,386. The annual cost moving forward based on the current pay for the affected employees is $18,802. This amount is included in the budget for FY 2023/24. Recommended Action: Adopt Resolution No. 2023-36,,"A resolution of the City Council of the City of Huntington Beach Approving the Side Letter to the Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Fire Management Association for the Term July 1, 2021 through December 31, 2023" authorizing the Side Letter between the City of Huntington Beach and the Huntington Beach Fire Management Association for the term beginning July 1, 2021 through December 31, 2023. . Alternative Action(s): Do not adopt Resolution No. 2023-36 authorizing the Side Letter between the City of Huntington Beach and the Huntington Beach Fire Management Association for the term beginning July 1, 2021 through December 31, 2023. City of Huntington Beach Page 1 of 2 Printed on 7/26/2023 powered by LegistarTM File #: 23-501 MEETING DATE: 8/1/2023 Analysis: As part of the negotiations for the current Memorandum of Understanding for Huntington Beach Fire Management Association effective July 1, 2021 through December 31, 2023, the City and Fire Management representatives agreed to amend the work period to a 24-day period for 24-hour shift employees and pay overtime at time-and-one-half for the 10 additional hours scheduled as overtime hours each work period. Additionally, it was agreed that employees would be provided the opportunity to be paid time and one-half for overtime worked in addition to being able to receive compensatory time. These changes were inadvertently omitted from the language included in this Memorandum of Understanding. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2023-36 2. Proposed Side Letter- Exhibit "A" 3. Presentation City of Huntington Beach Page 2 of 2 Printed on 7/26/2023 powered by LegistarTM RESOLUTION NO. 2023-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATON FOR THE TERM JULY 1, 2021 THROUGH DECEMBER 31, 2023. WHEREAS, the Parties are parties to a Memorandum of Understanding ("MOU") which has a term of July 1, 2021 through December 31, 2023, and WHEREAS, through this Agreement, the Parties wish to prospectively modify the work period of twenty-four (24) hour shift employees to a 24-day work period and to provide these employees with 5.85 additional hours of half-time overtime (equaling 2.925 hours of additional pay)per 14-day pay period; and WHEREAS, the calculation of this additional pay is derived at as follows: There are 15.20833 24-day FLSA work periods per year—365 days divided by 24= 15.20833. The threshold for overtime under a 24-day FLSA work period is 182 hours. These employees are scheduled to work 192 hours. . As such there are 10 hours of scheduled overtime each work period. Since employees' regular pay pays them for the straight time for their regularly scheduled hours, the overtime is the half time of the 10 hours. The calculation is then derived at as follows: 15.20833 work periods x 10 hours = 152.0833 hours x .5 = 76.04 hours of pay per year. 76.04 divided by 26 pay periods=2.925 hours of additional pay per pay period; and WHEREAS, language related to overtime pay was inadvertently omitted from this MOU; and WHEREAS,through this Side Letter,the Parties wish to retroactively modify the language related to Article VII, Paragraph A of their MOU effective July 1, 2021, and WHEREAS,the following sets forth the Parties' Agreement. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The Side Letter of Agreement attached hereto as Exhibit A is approved and adopted. 2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach and FMA. RESOLUTION NO. 2023-3 6 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting held on the Pt day of August, 2023. Mayor ATTEST: APPROVED AS FORM: (R04141./ City Clerk Ci Attorney REVIE D A APPROVED: INITIATED AND APPROVED: \\XMA(' 91,--74c) City Man er Interim Director of Human Resources Exhibit A—Side Letter Agreement 2 RESOLUTION NO. 2023-36 EXHIBIT 'A' SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION This Side Letter of Agreement(Agreement)between the City of Huntington Beach(City) and the Huntington Beach Fire Management Association (HBFMA) (collectively"Parties") is entered into with respect to the following: ARTICLE VIII—WORK SCHEDULES;OVERTIME AND COMPENSATORY PAY/TIME OFF A. Work Schedule 1. All twenty-four(24)hour shift employees shall work an average of fifty-six(56)hours per week pursuant to the current schedule of two (2) twenty-four (24) hour shifts in a two(2)day period with four(4)consecutive days off. Total hours worked in a calendar year will equal two thousand nine hundred and twelve (2912) hours. All twenty-four (24) hour shift employees shall be on a fifteen (15) day work period (effective July 1, 2021, the work period is changed to a twenty-four (24) day work period consistent with Section 207(k) of the Fair Labor Standards Act(FLSA). 2. Administrative work schedules are to be forty (40) hours per week on a four (4) day workweek, ten (10) hours per day, per the twenty-eight (28) day 7(k) FLSA work period. Total hours worked in a calendar year will equal to two thousand,eighty(2080) hours. 3. Hours worked shall be defined as actual time worked, approved vacation, sick leave, compensatory time off, bereavement leave, and industrial injury or illness leave, with the exception of exchange of shift not count as hours worked. B. Overtime 1. Effective July 1, 2021, 24-hour shift employees shall earn 5.85 hours of half time overtime per pay period. This equates to an additional 2.925 hours of additional base pay per pay period. Since the City considers these employees to be overtime exempt under the FLSA, this additional pay is paid per the MOU. This additional pay is intended to compensate the employees for the hours they are regularly scheduled to work in each 24-day FLSA work period, which qualify as overtime according to Section 207(k). 3 RESOLUTION NO. 2023-36 C. Compensatory Pay/Overtime 1. In addition to the overtime pay as provided in paragraph B above, all employees shall receive pay at the overtime rate(1 I/z times their regular rate)for hours worked in excess of regularly scheduled hours, unless the employee has "lost time" (defined as time when the employee does not work when regularly scheduled to do so and does not receive a leave of absence with pay)in a regularly scheduled shift.If there is"lost time" in any regularly scheduled shift,the employee shall receive overtime pay for only those overtime hours worked in excess of the number of"lost time" hours in the bi-weekly pay period. 2. Prior approval to accrue compensatory time/overtime All employees must gain approval from the Fire Chief in advance of accruing compensatory time or receiving overtime pay for hours worked in excess of regularly scheduled hours. For approved compensatory time or overtime, employees working suppression or administrative duties, as approved by the Fire Chief, accrue compensatory time off or paid overtime at time and one half for hours worked in addition to their regular schedule, subject to the limitations contained in Article VIII, C,3 below. Ilk F Iii! ' TH 1 v HUNTINGTON BEACH S/3kk Al Zelinka, -i ylIV r Date Peter Brown, Chief Negotiator Date FO HE IN N BEACH FIRE MANAGEMENT ASSOCIATION ( '6J7i2E'2.5 Marti Ortiz, res dent Date APPROVED ,• FO ' �� � Slcf1O?-3 Mi• ael Gates, City Attorney Date COUNTERPART 4 • RESOLUTION NO. 2023-3 6 C. Compensatory Pay/Overtime 1. In addition to the overtime pay as provided in paragraph B above, all employees shall receive pay at the overtime rate(1 '/:times their regular rate)for hours worked in excess of regularly scheduled hours, unless the employee has "lost time" (defined as time when the employee does not work when regularly scheduled to do so and does not receive a leave of absence with pay)in a regularly scheduled shift.If there is"lost time" in any regularly scheduled shift,the employee shall receive overtime pay for only those overtime hours worked in excess of the number of"lost time" hours in the bi-weekly pay period. 2. Prior approval to accrue compensatory time/overtime All employees must gain approval from the Fire Chief in advance of accruing compensatory time or receiving overtime pay for hours worked in excess of regularly scheduled hours. For approved compensatory time or overtime, employees working suppression or administrative duties, as approved by the Fire Chief, accrue compensatory time off or paid overtime at time and one half for hours worked in addition to their regular schedule, subject to the limitations contained in Article VIII, C,3 below. F THE CI 6 HUNTINGTON BEACH Al ' a;Ciy ag r Date N.. 82/0/Z-43 Peter Brown, Chief Negotiator Date FO HE UN IN N BIIACH FIRE MANAGEMENT ASSOCIATION ( Cf3/44,- 2.)2_) Martin Ortiz, res dent Date APPROVED FOR g/g l aad-3 Mi iael Gates, City Attorney Date COUNTERPART 4 Res. No. 2023-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on August 1, 2023 by the following vote: AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns NOES: None ABSENT: None RECUSE: None e44214Ad City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California TAN G ro"•,, Resolution 2023-36 P o Rq rF •••___ , ••. Approving a Side letter with the Fire Management „opt:J.), '' _ __° "t _ ?oh Association _ _- --� ___� _ = CITY OF HUNTINGTON BEACH gqzc _ /9 CITY COUNCIL MEETING l,61e• •- •e , v \e.N 41 August 1 , 2023'••;Fs. . Q o • 17 3 . . £OUNTP /� y �•,�r��,,lri Overview ➢ As part of the current MOU , effective July 1 , 2021 through December 31 , 2023, language related to overtime pay for 10 additional hours of scheduled overtime each work period was agreed to by the parties ➢ Additionally, the parties agreed that FMA would be paid at 1 .5 for overtime hours worked. ➢ These changes were inadvertently omitted from the MOU . . edi;NTY CO," Fiscal Imp act The total cost related to the 10 additional hours of scheduled overtime retroactive to 7/1 /21 is $37,708. Going forward this cost $ 18,802 per fiscal year. No additional funding is required as this is included in the FY 2023/24 budget. I#i „NT I N G T /J �I o`(��tyCpRPOggTfO'O." City Council Op ➢ Approve Resolution 2023-36 Approving the Side Letter between the City and FMA ➢ Do not approve Resolution 2023-36 Approving the Side Letter between the City and FMA ef0ATING c- T ...,.,, Fyn, 1II �.• - - 1U • _\ — _ . ter. pvat:• =007NT`I ci0 ii1 Questions ? �Fr: • .. , ,J..... ..:„. 7 u�a , , ,..,.1.--,r „.tm,i, :, _ ,„--'.4.,,,,,,q1,4. ' :S7J")' .:11) f,11,11::1,..,a,'":: '-:-.-- .':':' '' ' l',-Z:`--;-, ii' tvkija,l'4BAAI:' -: „:„..r.--L-7-... _,,', ‘ .'''' '-,N114\A, .„..4"031.z.",,. - ' - , �`� 'p 3.r•-'�xx '/ - 7 i �� ":''✓cos' 7 C` �' g *•, 4.-• ----,,,-„4 (,-- :;-,-,-. ,„.„--..7,-.-,:(,- 2,z;.!;.,...p-'7,-..at A 4 Y i t\,w ^yam t{a(� � L, � trik. y.J '.;` i, jai ` tjo:. ..7 7 it ,, :;„..,..,..44:•,,tsx't 2.,4: r,,,,,-'''''11'''''',.'r'r,*:::.''.4_ `1, +- a ,' '‘ 1 ��L,-' .�, r. .e k e . ., h: 3 2.tr$ `' .$v- P/e �-a-/ (cam- AV, t) NGTo 2000 Main Street, N B Huntington Beach,CA of f`•. oQ� City of Huntington Beach 92648 File #: 22-956 MEETING DATE: 11/15/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Brittany Mello, Administrative Services Director PREPARED BY: Brittany Mello, Administrative Services Director Dahie Bulosan, Chief Financial Officer Subject: Approve the Classification and Compensation Study Implementation Plan by adopting Resolutions No. 2022-70, 2022-71, 2022-72, 2022-73, and 2022-74 related to Side Letters of Agreement with the Huntington Beach Municipal Teamsters (HBMT), Management Employees' Organization (MEO), Marine Safety Management Association (MSMA), Surf City Lifeguard Employees' Association (SCLEA), and Fire Management Association (FMA); and by adopting Resolution No. 2022-76 modifying salary and benefits for appointed Non-Associated (NA) employees; and approve Amendment No. 1 to the Employment Agreement between the City of Huntington Beach and Scott Haberle; and adopt Resolution 2022-75 related to a Side Letter of Agreement with Huntington Beach Firefighters' Association (HBFA) regarding the Retiree Medical Trust Statement of Issue: The City has completed a large-scale Classification and Compensation Study that reviewed the City's job classifications to ensure that positions are still meeting the operational needs of the organization; that job families are logical and provide clear promotional ladders; and that the number of stand- alone classifications are reduced. Additionally, a compensation study was conducted to review how the City's compensation plan compared to other agencies in our employment market. The proposed implementation plan would simplify and modernize the City's job classifications, improve internal alignment, and bring jobs found to be behind in compensation up to the employment market average. These efforts will improve employee recruitment and retention in support of the City's mission as a service organization. Financial Impact: The total cost of the proposed side letters of agreement with HBMT, MEO, FMA, and NA is $1,347,113, which is a sum that will be spread across multiple fiscal years as employees earn their annual merit-based salary adjustment. The side letters of agreement with MSMA and SCLEA have no associated costs, as they contain only classification modifications. Finally, the side letter of City of Huntington Beach Page 1 of 6 Printed on 12/1/2022 powered by Legistar'' File #: 22-956 MEETING DATE: 11/15/2022 agreement with HBFA also has no associated costs related to updating the Retiree Medical Trust (RMT) leave bank contributions when an employee separates from the City; FMA is also updating their RMT contributions at no cost to the City. Recommended Action: * A) Adopt Resolution No. 2022-70, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Municipal Teamsters (HBMT) by Adopting the Side Letter of Agreement" (Attachment 1); and B) Adopt Resolution No. 2022-71, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Management Employees' Organization (MEO) by Adopting the Side Letter of Agreement" (Attachment 2); and ire C) Adopt Resolution No. 2022-72, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Marine Safety Management Association (MSMA) by Adopting the Side Letter of Agreement" (Attachment 3); and D) Adopt Resolution No. 222-73, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Surf City Lifeguard Employees' Association (SCLEA) by Adopting the Side Letter of Agreement" (Attachment 4); and E) Adopt Resolution No. 2022-74, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Fire Management Association (FMA) by Adopting the Side Letter of Agreement" (Attachment 5); and F) Adopt Resolution No. 2022-76, "A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented Employees by Adding or Amending Classifications and Compensations for Various Positions" (Attachment 6); and G) Approve and authorize the City Manager to execute, "Amendment No. 1 to the Employment Agreement between the City of Huntington Beach and Scott Haberle" (Attachment 7); and Ater&rah> fte.) City of Huntington Beach Page 2 of 6 Printed on 12/1/2022 powered by LegistarT" File #: 22-956 MEETING DATE: 11/15/2022 H) Adopt Resolution No. 2022-75, "A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding Between the City and the Huntington Beach Firefighters' Association (HBFA) by Adopting the Side Letter of Agreement" (Attachment 8); and * I) Authorize the City Manager to take all administrative and budgetary actions necessary to implement the Classification and Compensation Study. Alternative Action(s): Do not approve the proposed Classification and Compensation Study Implementation Plan, including the applicable Side Letters of Agreement and the Employment Agreement Amendments Listed Above, or the Retiree Medical Trust adjustments for HBFA and FMA; direct staff accordingly. Analysis: The City last conducted a large-scale Classification and Compensation Study in 2006. As organizational needs evolve over time, it is important to assess if the list of available job classifications is still appropriate and logical, and that the job series are well organized with clear promotional ladders between jobs. In addition, it is critical to evaluate how the City's compensation for its jobs compares with other agencies in our employment market in terms of salary and benefits. In doing so, the City would be engaging in a best management practice and identifying changes to the classification and compensation structure that will ultimately reduce staff turnover and allow the City to be more competitive during recruitment efforts for highly qualified municipal employees who can bring valuable skills to the workforce. On March 15, 2021, City Council approved an agreement with Public Sector Personnel Consultants, Inc., to conduct a Citywide Classification and Compensation Study. In the staff report, City Council approved eight comparator agencies, including Anaheim, Santa Ana, Irvine, Garden Grove, Orange, Fullerton, Costa Mesa, and Newport Beach. Huntington Beach generally competes with other Orange County cities when recruiting for new employees and working to retain its current employees. These comparator agencies are full-service or nearly full service (e.g., some agencies contract out Fire services)with populations over 100,000, except for Newport Beach (pop. 85,000), which faces similar issues as a fellow beach city. Over the past year and a half, Public Sector Personnel Consultants conducted multiple phases of the Classification and Compensation Study, starting by collecting information on employees'job duties, and the necessary education, training, and experience to perform a job via Position Analysis Questionnaires. Then, the consultant identified positions with similar job responsibilities in our employment market to use as a basis for comparison. The consultant conducted a market analysis of the base salary and total compensation (i.e., with benefits included) to see where the City fell in relation to the market. Additionally, the consultant proposed classification changes to modernize the nomenclature used in the City's job titles and standardize the job series titling within and across departments. Human Resources met with Department Heads and the impacted associations to review the proposed titling changes. Many single-position classifications were eliminated in favor of using broader, merged City of Huntington Beach Page 3 of 6 Printed on 12/1/2022 powered by LegistarT" File #: 22-956 MEETING DATE: 11/15/2022 classifications. This will assist in identifying promotional opportunities within and across departments, and allow for additional cross-training and succession planning. The City Council approved compensation increases as part of the new Memoranda of Understanding (MOUs) adopted in December 2021 through January 2022, as well as in June 2022 with SCLEA. Incorporated into these MOUs was the transition to a new master salary schedule that helped to standardize compensation across the various associations by creating salary ranges that are 1% apart with seven pay steps that are 5% apart and placing all positions onto a set salary range. Adopting this salary schedule was instrumental in being able to evaluate the City's compensation plan in relation to the market and to propose highly targeted pay adjustments to bring jobs into alignment with the market. Salary data was first collected in July 2021, and then the data was aged as of January 2022 and again as of July 2022 to give us a clear, updated snapshot of the market. As of July 2021, more than 41% of positions were considered "market outliers," defined as falling more than 5% behind the market average for that position. With the majority of the new MOUs in effect as of January 2022, only 16% of positions remained more than 5% behind the market. However, the market showed significant movement in the first six months of 2022, and as of July 2022, 21% of positions were identified as market outliers. After receiving authorization from the City Council in Closed Session, Human Resources began the meet and confer process with the impacted associations to finalize the proposed Classification and Compensation implementation plan. Individual employees could submit comments through their association representatives or by submitting a Request for Reconsideration. These employees met with the consultant to review their request for retitling, reclassification, or compensation adjustments based on available market data. The final determinations from the Request for Reconsideration process were incorporated into the proposed implementation plan where appropriate and feasible. The proposed Classification and Compensation implementation plan includes adjustments across the City's eleven (11) departments, including some changes that impact multiple departments, as follows: Department !New Merged Modified Deleted Total Classifications Classifications Classifications Classifications and/or Pay Ranges Cross-Departmental - 7 5 12 City Attorney - - 5 3 8 City Clerk - 3 - 3 'City Manager 1 - 6 1 8 City Treasurer - - - - - Administrative 1 8 11 9 29 Services Community 1 2 17 3 23 Development City of Huntington Beach Page 4 of 6 Printed on 12/1/2022 powered by Legistar'*" File #: 22-956 MEETING DATE: 11/15/2022 Community& Library 2 2 13 8 25 Services Finance - 5 6 5 16 Fire 1 - 12 - 13 Police 1 2 10 7 20 Public Works 2 38 36 14 90 Total 9 57 126 55 247 If approved by City Council, Human Resources staff will continue to meet with the impacted associations and department leadership to finalize the job classification specifications for each of the new, merged, or modified classifications. Then, these classification specifications will be presented to the Personnel Commission for review and approval. Additionally, Human Resources and the Finance Department will work diligently over the next few months to implement the changes in our internal systems. The effective date for the proposed Classification and Compensation implementation plan is February 4, 2023. The Non-Associated (non-represented) classification adjustments include changes proposed by the City Manager to strengthen the City's Executive Leadership Team, ensure adequate retention and succession exists consistent with City Council objectives, and expand existing roles into additional city management focus areas. If approved, City Manager Zelinka will be describing these proposed changes in greater detail during his "City Manager's First 100 Day Report" at the November 29, 2022, Special City Council Meeting. The proposed adjustments contemplate upgrading four current classifications; creating one new classification; modifying one title; adjusting compensation for a set number of classification to be brought into alignment with the market average; and amending one employment agreement to receive an existing Education Incentive Pay and Longevity Pay benefits from the FMA MOU, providing additional parity with Fire Management In October 2020, HBFA and FMA joined a retiree medical plan administered by the PORAC Retiree Medical Trust (RMT), which provides the opportunity to contribute funds into a pre-tax plan for medical expenses to use after separation or retirement from the City. Both the Police Officers' Association and Police Management Association participate in the RMT as well. An association's contributions into the RMT can be periodically amended by a vote of its members. Both HBFA and FMA have voted to adjust their leave bank contributions into the RMT upon separation. These modifications come at no cost to the City. The total cost of the proposed side letters of agreement with HBMT, MEO, and FMA is $1,050,000, over the course of multiple years as employees earn their annual, merit-based salary adjustments. The side letters of agreement with MSMA and SCLEA have no associated costs, as they contain only classification modifications. Actions related to Non-Associated employees, including adoption of Resolution No. 2022-75 and Amendment No. 1 to the Employment Agreement is estimated at a total cost of$297,113, also realized over multiple years as employees earn their annual merit-based salary adjustments. Environmental Status: City of Huntington Beach Page 5 of 6 Printed on 12/1/2022 powered by LegistarT'" File #: 22-956 MEETING DATE: 11/15/2022 Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2022-70, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Municipal Teamsters (HBMT) by Adopting the Side Letter of Agreement" 2. Resolution No. 2022-71, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Management Employees' Organization (MEO) by Adopting the Side Letter of Agreement" 3. Resolution No. 2022-72, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Huntington Beach Marine Safety Management Association (MSMA) by Adopting the Side Letter of Agreement" 4. Resolution No. 2022-73, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the City and the Surf City Lifeguard Employees' Association (SCLEA) by Adopting the Side Letter of Agreement" 5. Resolution No. 2022-74, "A Resolution of the City Council of the City of Huntington Beach Amending the City's Classification Plan and Memorandum of Understanding Between the Citt and the Huntington Beach Fire Management Association (FMA) by Adopting the Side Letter of Agreement" 6. Resolution No. 2022-76, "A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented Employees by Adding the Deputy City Manager, Amending the Classification for Deputy Director of Homelessness & Behavioral Health Services, Amending the Compensation for Fire Chief, Police Chief, and Chief Assistant City Attorney, & Amending the Classification and Compensation for Assistant City Manager" 7. Amendment No. 1 to the Employment Agreement between the City of Huntington Beach and Scott Haberle 8. Adopt Resolution No. 2022-75, "A Resolution of the City Council of the City of Huntington Beach Amending the Memorandum of Understanding Between the City and the Huntington Beach Firefighters' Association (HBFA) by Adopting the Side Letter of Agreement" 9. PowerPoint Presentation City of Huntington Beach Page 6 of 6 Printed on 12/1/2022 powered by LegistarTTM RESOLUTION NO. 2022 -74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE CITY'S CLASSIFICATION PLAN AND MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (FMA) BY ADOPTING THE SIDE LETTER OF AGREEMENT WHEREAS, on March 15, 2021, the City Council of Huntington Beach approved an agreement with Public Sector Personnel Consultants, Inc.,to conduct a citywide Classification and Compensation Study to review, simplify, and modernize the City's classification plan, and to conduct a comparison of salary and benefits within the City's employment market, which was defined as the cities of Anaheim, Santa Ana, Irvine, Garden Grove, Orange,Fullerton, Costa Mesa, and Newport Beach; and, WHEREAS, on December 21, 2021, the City Council of Huntington Beach adopted Resolution No. 2021-67 approving the MOU between the City and FMA through the term ending December 31, 2023, which transitioned all classifications to a new master salary schedule with pay ranges that are one percent(1%) apart and consist of seven(7) steps that are five percent(5%) apart that provides additional flexibility in assigning pay ranges and creates greater alignment across associations; and, WHEREAS,FMA desires to amend the provisions of the retiree medical plan administered by the PORAC Retiree Medical Trust as outlined in Article IX — Health and Other Insurance Benefits, Section E, to contribute the value of their members' unused earned General Leave and Sick Leave banks upon separation from the City to the Trust, and that these changes are at no cost to the City; and, WHEREAS, the City's Human Resources Division, with assistance from Public Sector Personnel Consultants, has met and conferred with the impacted associations and individual employees through the Request for Reconsideration process; and the proposed Classification and Compensation Study implementation plan improves internal alignment, more clearly defines career ladders, and brings classifications whose pay range maximums were behind the market average of similar positions in the City's employment market as close to market average as feasible within the authorized budget and constraints of the City's existing classification and compensation plan; and, Subsequent to the adoption of the MOU, the City of Huntington Beach and FMA has met and conferred and agreed to changes, corrections, and clarifications to the MOU that are reflected in a Side Letter of Agreement attached hereto as Exhibit A and incorporated herein by this reference. RESOLUTION NO. 2022-74 NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: 1. The Side Letter of Agreement attached hereto as Exhibit A is approved and adopted. 2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach and FMA. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of November, 2022. Mayor , 4 REVIE : • A D A' 'OVED: APPROVED FORM: City Ma :Qer 111. i Attorney INITIATED AND APPROVED: 6 S / eS- Director of Administrative Services 2 22-12109/295122 Resolution No. 2022-74 Exhibit "A" SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (FMA) Representatives of Huntington Beach Fire Management Association (FMA) and the City of Huntington Beach (City) have met and conferred regarding this Side Letter of Agreement to modify the following sections of the FMA MOU dated July 1, 2021, through December 31, 2023: ARTICLE II — REPRESENTATIONAL UNIT/CLASS The City of Huntington Beach proposes to add/modify the following classifications to the City's Classification Plan and the FMA MOU (see Exhibit A— Salary Schedule): ADD CLASSIFICATION Job Title Range Minimum Maximum Fire Deputy Chief 262 $156,395 $209,581 MODIFY CLASSIFICATIONS Job Title • Fire Battalion Chief Fire Division Chief The parties agree that this side letter agreement will take effect on the pay period beginning February 4, 2023. If the City is unable to complete implementation of these changes by this pay period due to competing year-end priorities, the parties agree that these changes will be retroactive to the pay period beginning February 4, 2023. Each employee will be placed on the step (A-G) of their classification's assigned salary range that is nearest to their current base salary step without being less. If the preceding methodology would result in an employee moving more than one step below their current step (e.g., Step F to Step D), then the employee will instead be placed one step below their current step (e.g., Step F to Step E). The parties agree that some of the above classifications are new and that the class specifications and minimum qualifications have not been completed. The parties agree to meet and confer on these class specifications and minimum qualifications before final implementation of the new classifications. The parties agree that the policies and procedures surrounding the addition of new full- time equivalent authorized positions and positional adjustments via the budgeting process remain in effect. The creation of a new job classification does not equate to a new authorized position, nor an upgrade to an existing position, and that if and when a position is added or upgraded, the policies surrounding the promotional process remain in effect. The parties agree that the implementation of this side letter will not change the anniversary date of employees that are being reclassified or retitled. Employees will receive their merit-based step advancement on their current anniversary date, in accordance with the Personnel Rules. The parties agree that no incumbent employee shall be required to serve a probationary period as a result of being reclassified, retitled, or placed under new supervision or a new reporting relationship as a result of this implementation. The parties agree that if a classification that has been merged or modified is listed elsewhere in the MOU, those sections will continue to remain in full effect. The parties agree that all of the intended additions or deletions of FMA positions are encompassed in this side letter agreement. If the City proposes any further additions and/or deletions to FMA positions following the adoption of this agreement, the parties agree to meet and confer on those matters. ARTICLE VIII —WORK SCHEDULE/COMPENSATORY PAY/TIME OFF B. Compensatory Pay 2. Prior approval to work any hours in addition to regular schedule Fire Battalion Chiefs, Fire Division Chief, and the Marine Safety Division Chief must gain approval to work any hours that are in addition to their regular schedule in advance from a Fire Deputy Chief. Fire Deputy Chiefs must gain approval to work any hours that are in addition to their regular schedule in advance from the Fire Chief. ARTICLE IX— HEALTH AND OTHER INSURANCE BENEFITS E. Retiree Medical Trust (RMT) The City authorizes the FMA to participate in a retiree medical plan administered by the PORAC Retiree Medical Trust ("Retiree Medical Trust" or "RMT"), with the following conditions: 3. The City shall withhold $100.00 per month on a pre-tax basis for each represented employee to participate in the program. The withholding amount could change, and if it does, it shall be in an amount as designated in writing by the FMA and shall be applicable to each employee. Deductions shall be taken on the first two checks of each month. Participation and contributions are required for every member of the bargaining unit represented by the Association. However, this requirement will not apply to an employee who is entitled to receive full retiree medical coverage due to their service in the United States military (Military Exception). 9—UpG-11-rettrement-GTIthe-C ity shall transfer to the Trust, an amount .,ervices expenses. ARTICLE X - LEAVE BENEFITS A. General Leave 1. Accrual Employees accrue General Leave at the accrual rates outlined below. General Leave may be used for any purpose, including vacation; and sick leave-and personal I ave. 4. Transfer of the Value of General Leave at Separation At the time of separation, the value of any unused earned General Leave (earned up to the last day of employment) will be transferred to either the employee's deferred compensation account or to the Retiree Medical Trust outlined in Article IX, Section E, on a pre-tax basis. The value of each hour of General Leave will be the employee's base rate of pay at separation. The employee must make the election for the transfer (to either deferred compensation or the Retiree Medical Trust) no later than the pay period prior to the employee's last day of employment. If no election is made, all unused earned General Leave will be transferred to the Retiree Medical Trust upon separation. If the employee elects to place some of the General Leave into their deferred compensation account or reaches the maximum annual deferral into their deferred compensation account, the remaining amount will be transferred to the Retiree Medical Trust. 5. General Leave Pay at Separation for Employees Exempt from the Retiree Medical Trust Upon separation of employment, employees exempt from the Retiree Medical Trust shall be paid for unused General Leave at their current regular rate of pay for all unused, earned General Leave to which they are entitled up to and including the last day of employment. B. Sick Leave 5. Pay Off At Termination f. Transfer of the Value of Sick Leave at Separation Upon separation of employment, the value of any unused sick leave, as determined in accordance with sections a-e above, will be transferred to either the employee's deferred compensation account or to the Retiree Medical Trust on a pre-tax basis. g. Sick Leave Pay at Separation for Employees Exempt from the Retiree Medical Trust Upon separation of employment, employees exempt from the Retiree Medical Trust shall be paid for unused sick leave in accordance with sections a-e above. Side Letter Implementation Should the MOU between FMA and the City of Huntington Beach continue beyond December 31, 2023, either through a successor MOU or an extension of the current MOU, all terms and conditions of this side letter shall remain in full force and effect unless changes are mutually agreed to by both parties. IN WITNESS WHEREOF, the parties have caused this SIDE LETTER AGREEMENT to be executed by and through their authorized officers on November 15, 2022 City . ► tington Be:.ch Fire anagement Association By: \� By: Al Zell Martin rti City Manager President By: By: ravis Hopkins V Tim dre Assistant City Manager Vic resident By: 76 . ..-2g.T Brittany Mello Administrative Services Director APPROVED F M: is el Gates C. Attorney COUNTERPART Side Letter Implementation Should the MOU between FMA and the City of Huntington Beach continue beyond December 31, 2023, either through a successor MOU or an extension of the current MOU, all terms and conditions of this side letter shall remain in full force and effect unless changes are mutually agreed to by both parties. IN WITNESS WHEREOF, the parties have caused this SIDE LETTER AGREEMENT to be executed by and through their authorized officers on City of Huntington Beach Fire Management Association By: By: Al Zelinka Martin Ortiz City Manager President By: By: Travis Hopkins Tim Andre Assistant City Manager Vice President By: 6. 7)1,Za Brittany Mello Administrative Services Director APPROVED AS TO FORM: Michael Gates 14 City Attorney COUNTERPART FIRE MANAGEMENT ASSOCIATION EXHIBIT A- SALARY SCHEDULE 40 Hour Rate (Hourly) Job Description Range A BCD E F G Fire Battalion Chief 248 65.41 68.68 72.12 75.72 79.51 83.48 87.66 Fire Division Chief 248 65.41 68.68 72.12 75.72 79.51 83.48 87.66 Marine Safety 248 65.41 68.68 72.12 75.72 79.51 83.48 87.66 Division Chief Fire Deputy Chief 262 75.19 78.95 82.9 87.04 91.39 95.96 100.76 56 Hour Rate (Hourly) Job Description Range A BCD E F G Fire Battalion Chief 248 46.72 49.06 51.51 54.09 56.79 59.63 62.61 Fire Division Chief 248 46.72 49.06 51.51 54.09 56.79 59.63 62.61 Marine Safety 248 46.72 49.06 51.51 54.09 56.79 59.63 62.61 Division Chief Fire Deputy Chief 262 53.71 56.39 59.21 62.17 65.28 68.54 71.97 Res. No. 2022-74 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on November 15, 2022 by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Moser, Kalmick NOES: None ABSENT: Carr RECUSE: None ;e014ft, 94-4,2Zatu) City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California C mug CU Am/ am Co 0 "mi. 0 CO CU CoC CI) 0) (o E E — c� oE > C.) V0, 0 _ z t1R)db. 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Huntington Beach,CA 9 926M City of Huntington Beach fiW ✓&-b --0 File #: 21-919 MEETING DATE: 12/21/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Brittany Mello, Interim Administrative Services Director Subject: Adopt Resolution No. 2021-67 approving and implementing the Memorandum of Understanding (MOU) between the Huntington Beach Fire Management Association (FMA) and the City of Huntington Beach for July 1, 2021 , through December 31 , 2023; and authorize appropriation of funds Statement of Issue: The Memorandum of Understanding (MOU) between the City of Huntington Beach and the Huntington Beach Fire Management Association (FMA) expired on September 30, 2017. Subsequently, the City and FMA engaged in good-faith negotiations, ultimately reaching tentative agreement on terms in October 2021 on a 2.5 year contract covering the period of July 1, 2021 , through December 31, 2023. The MOU was approved for introduction at the November 16, 2021 , meeting, and pursuant to the City's municipal code, is being brought back for formal consideration by the City Council. Financial Impact: Pursuant to the terms agreed upon with FMA, the Finance Department estimates the total projected average annual cost increase of the MOU to be $97,357 per year during the life of the agreement. Recommended Action: A) Adopt Resolution No. 2021-67, "A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Fire Management Association (FMA) and the City for July 1, 2021 , through December 31, 2023;" and, B) Authorize appropriations for all costs related to implementation of Resolution No. 2021-67. Alternative Action(s): Do not adopt the Resolution approving the successor MOU for FMA employees, and direct staff to: (1) continue to meet and confer with the Association, or (2) utilize the impasse procedures contained within the City's Employer-Employee Relations Resolution. Analysis: City of Huntington Beach Page 1 of 3 Pnnted on 1 211 5/202 1 c<we�l410 Lep-Star"' File #: 21-919 MEETING DATE: 12/21/2021 On November 16, 2021, the City Council approved the introduction of the proposed MOU between the City and the Huntington Beach Fire Management Association (FMA). The draft agreement is being brought back for formal consideration by the City Council. Key changes in the proposed MOU include the following: Term of Agreement July 1, 2021 , through December31, 2023 Salary Range Adjustment • Effective July 1, 2021, employees will shift to new, seven step salary range (A - G). Employees will be placed on the nearest step in the new range without losing any wages. • Employees who have reached the top step (Step G) in their assigned range will be eligible for an annual, merit-based performance bonus of up to three percent (3%) of their base rate of pay. CaIPERS Cost Sharing • Classic member safety employees shall contribute an additional 2% contribution towards CaIPERS costs (for a total of 13% contribution) beginning July 1, 2021. • New member safety employees shall contribute an additional 1 .25% contribution towards CaIPERS costs (for a total employee contribution of 13%) beginning July 1 , 2021 . Medical Benefits • Beginning January 1, 2022, the City's maximum monthly contribution to medical plan rates will increase to $745.83 for employee only; $1 ,468.95 for two party; and $1 ,837.83 for family coverage. • Beginning January 1 , 2023, the City's maximum monthly contribution will increase to $769.16 for employee only; $1 ,492.28 for two party; and $1,861.16 for family coverage. Special Pays • Additional contract adjustments with regard to specialty pay types were made with regard to educational incentive pay. EMT pay, strike team leader, and longevity pay. These key changes and all other negotiated provisions are included in the proposed Memorandum of Understanding. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1 . Summary of Memorandum of Understanding Modifications 2. Fiscal Impact Report City of Huntington Beach Page 2 of 3 Printed on 12/15/2021 powet450 LegistaC- File #: 21-919 MEETING DATE: 12/21/2021 3. Resolution No. 2021-67 4. Memorandum of Understanding - Exhibit "A" City of Huntington Beach Page 3 of 3 Printed on 1211512021 oowetL45,'�Lepstar1m City of Huntington Beach Huntington Beach Fire Management Association (FMA) Summary of MOU Modifications Article k Subject Proposal Article I Term July 1, 2021 —December 31, 2023 Term of MOU Article V New Salary Range Effective July 1, 2021, shift to new, seven-step (A—G) pay Salary Schedules schedule with 5% between each step. and Retirement Article V Performance Based Employees who have attained Step G are eligible for an annual Salary Schedules Bonus merit bonus of up to 3%of their base rate of pay. and Retirement Article V CalPERS Cost Sharing Effective July 1, 2021: Salary Schedules and Retirement Classic member employees shall cost share an additional 2%for a total cost share of 4%, increasing the employee pension contribution to 13%. New member employees shall cost share 1.25%, increasing the employee pension contribution to 13%. Article VI Master's Degree Employees who have attained a Master's Degree shall receive Additional 3% incentive pay. Management Benefits Article VI Strike Team Leader Employees who earn the designation of Strike Team Leader will Additional receive 1%of their base rate of pay. Management Benefits Article VI Emergency Medical Employees who possess an EMT certification shall receive 1.67% Additional Technician of their base rate of pay. Management Benefits Article VI Longevity Pay FMA employees will be eligible to receive Longevity Pay as Additional follows, based on total qualifying years of firefighting service: Management Benefits 1452 5-10 years—2.5%of base pay 10-20 years—5.0%of base pay 20+years—7.5%of base pay Article IX Employer Contribution to A modification to Article IX to increase the monthly maximum Health and Health and Other employer contribution towards flex benefits as follows: Other Insurance Insurance Benefits Benefits Effective the beginning of the pay period that includes January 1, 2022, and eliminate the vision opt-out benefit: Single - $745.83 Two party-$1,468.95 Family- $1,837.83 Opt Out - $745.93 Effective the beginning of the pay period that includes January 1, 2023, increase the employer contribution toward medical benefits by$23.33 per month, as follows: Single - $769.16 Two party- $1,492.28 Family- $1,861.16 Opt Out -$769.16 1453 \ , ) 0 \ \ \ \ - \ \ \ ) \ ! \ § « ( \ 2 { � t { \ 2 \ ( \ 7 ] ! ie § / u , z \ 0 / \ � , } 7 / / � ¥ ! _ , ) RESOLUTION INTO. 2021-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (FMA) AND THE CITY FOR JULY 1, 2021 THROUGH DECEMBER 31, 2023 The City Council of the City of Huntington Beach does hereby resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Fire Management Association (FMA), a copy of which is attached hereto as Exhibit "A" and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof; and the City Manager is authorized to execute this Agreement. Such Memorandum of Understanding shall be effective for the term of July 1, 2021 through December 31, 2023. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the o7/- day off em/xr2021. e ' AND AP ED ` � Mayor City Manager APPROVED AS TO F ,l �2r� City Attorney TIATED AND APPROVED e) . m52 Director of Administrative Services 21-10698/271728 PES9cu77dn/ Nd. -?o11- ln� TA ' Memorandum of Understanding Between Huntington Beach Fire Management Association And City of Huntington Beach ` ,/ ; July 1 , 2021 - December 31 , 2023 MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS PREAMBLE .................................................................................................................... 1 ARTICLE I - TERM OF MOU ......................................................................................... 1 ARTICLE II - REPRESENTATIONAL UNIT...................................................................1 ARTICLE III - SEVERABILITY.......................................................................................1 ARTICLE IV - MANAGEMENT RIGHTS........................................................................2 ARTICLE V - SALARY SCHEDULES AND RETIREMENT...........................................2 A. MONTHLY COMPENSATION.................................................................................................... 2 B. PERFORMANCE BONUS ........................................................................................................ 2 C. CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) PICK-UP......................... 3 D. SELF FUNDED SUPPLEMENTAL RETIREMENT BENEFIT............................................................ 4 E. MEDICAL INSURANCE UPON RETIREMENT.............................................................................. 5 F. CALPERS ADDITIONAL BENEFITS.............................:........................................................... 5 G. DIRECT DEPOSIT.................................................................................................................. 6 ARTICLE VI - ADDITIONAL MANAGEMENT BENEFITS.............................................6 A. HOLIDAY PAY-IN-LIEU........................................................................................................... 6 B. BILINGUAL SKILL PAY........................................................................................................... 7 C. EDUCATION INCENTIVE PAY.................................................................................................. 7 D. EMERGENCY MEDICAL TECHNICIAN PAY................................................................................ 8 E. STRIKE TEAM LEADER PAY................................................................................................... 8 F. LONGEVITY PAY................................................................................................................... 8 ARTICLE VII - UNIFORMS ............................................................................................9 ARTICLE VIII - WORK SCHEDULEXOMPENSATORY PAY/TIME OFF.....................9 A. WORK SCHEDULE ................................................................................................................ 9 B. COMPENSATORY PAY........................................................................................................... 9 1. Prior Approval to Earn Compensatory Time....................................................................................9 2. Prior Approval to Work any Hours in Addition to Regular Schedule..............................................10 3. Description of Compensatory Benefits...........................................................................................10 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS.................................10 A. HEALTH............................................................................................................................. 10 1. Effective Date of Coverage............................................................................................................10 FMA MOU July 1, 2021 through December 31, 2023 Page i MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS 2. California Public Employees' Retirement System (CaIPERS) Public Employees' Medical and HospitalCare Act (PEMHCA)........................................................................................................11 a. PEMHCA Employer Contributions............. ............... ..................................................11 b. Maximum Employer Contributions.............................................................................................11 3. Dental Insurance............................................................................................................................12 4. Retiree (Annuitant) Coverage........................................................................................................13 a. City Contribution (Unequal Contribution Method) for Retirees..................................................13 b. Termination of Participation in the CalPERS PEMHCA Program — Impact to Retirees............13 5. Additional Costs for Participation in the PEMHCA Program..........................................................13 a. Retiree and/or Annuitant Coverage...........................................................................................13 b. Termination Clause....................................................................................................................14 6. Medical Opt-Out.............................................................................................................................15 B. SECTION 125 EMPLOYEE PLAN........................................................................................... 15 C. POST RETIREMENT MEDICAL SAVINGS PLAN........................................................................ 15 D. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT ........................................................... 15 E. LONG TERM DISABILITY INSURANCE .................................................................................... 15 F. RETIREE MEDICAL TRUST.................................................................................................... 16 G. MISCELLANEOUS................................................................................................................... 18 1. City Paid Premiums While on Medical Disability ...........................................................................18 2. Insurance and Benefits Advisory Committee...................... ....____.............................................18 3. Health Plan Over-Payments ..........................................................................................................18 a. Reduction of Employee's Bi-Weekly Salary Warrant................................................................18 b. Notice of Ineligible Dependents.................................................................................................18 c. Twelve Month Recovery Period.................................................................................................18 ARTICLE X LEAVE BENEFITS.................................................................................... 19 A. GENERAL LEAVE................................................................................................................ 19 1. Accrual...........................................................................................................................................19 2. Eligibility and Approval...................................................................................................................19 3. Conversion to Cash........................................................................................................................20 B. SICK LEAVE ....................................................................................................................... 20 1. Accrual ...........................................................................................................................................19 2. Credit..............................................................................................................................................20 3. Usage.............................................................................................................................................20 4. Family Sick Leave..........................................................................................................................20 5. Pay Off At Termination...................................................................................................................20 C. BEREAVEMENT LEAVE ........................................................................................................ 22 ARTICLE XI — CITY RULES.........................................................................................22 FMA MOU July 1, 2021 through December 31, 2023 Page ii MEMORANDUM OF UNDERSTANDING HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION TABLE OF CONTENTS ARTICLE XII — MISCELLANEOUS ..............................................................................23 A. VEHICLE POLICY ................................................................................................................ 23 B. DEFERRED COMPENSATION LOAN PROGRAM....................................................................... 23 C. ASSOCIATION BUSINESS..................................................................................................... 23 D. MODIFIED RETURN TO WORK POLICY.................................................................................. 24 E. CONTROLLED SUBSTANCE AND ALCOHOL TESTING .............................................................. 24 F. GRIEVANCE HEARING OFFICER FEES .................................................................................. 24 G. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION ................................................................. 24 H. ALTERNATIVE DISPUTE RESOLUTION AGREEMENT ............................................................... 24 ARTICLE XIII — CITY COUNCIL APPROVAL..............................................................25 EXHIBIT A — SALARY SCHEDULE .............................................................................26 EXHIBIT B — SERVICE CREDIT SUBSIDY..................................................................27 EXHIBIT C — VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM ........ 31 EXHIBIT D — ALTERNATIVE DISPUTE RESOLUTION AGREEMENT.......................35 FMA MOU July 1, 2021 through December 31, 2023 Page iii MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH, CALIFORNIA (Herein Called CITY) AND THE HUNTINGTON BEACH FIRE MANAGEMENT ASSOCIATION (Hereinafter Called ASSOCIATION) PREAMBLE WHEREAS, the City of Huntington Beach and the Huntington Beach Fire Management Association (FMA) have met and conferred in good faith with respect to salaries, benefits and other terms and conditions of employment for the employees represented by the Association; Except as expressly provided herein, the adoption of this Memorandum of Understanding (MOU) shall not change existing terms and conditions of employment, which have been established for the classifications represented by the Huntington Beach Fire Management Association. NOW THEREFORE, this Memorandum of Understanding is effective July 1, 2021 , and it is agreed as follows: ARTICLE I -TERM OF MOU This Agreement shall be in effect commencing July 1, 2021, and expiring on December 31, 2023. This MOU constitutes the entire agreement of the parties as to the changes in wages, hours, and other terms and conditions of employment of employees covered hereunder for the term hereof. ARTICLE II - REPRESENTATIONAL UNIT It is recognized that the Huntington Beach Fire Management Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of represented employees of the Huntington Beach Fire Department within the classification titles of Fire Division Chief, Fire Battalion Chief, and Marine Safety Division Chief as outlined in Exhibit A attached hereto and incorporated herein. ARTICLE III - SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, is for FMA MOU July 1, 2021 through December 31, 2023 Page 1 FIRE MANAGEMENT ASSOCIATION any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions, or the application thereof to any person, be declared invalid or unconstitutional. ARTICLE IV - MANAGEMENT RIGHTS The City and the Fire Chief retain all rights, powers and authority to manage and direct the performance of fire services and the workforce, except as modified by the Memorandum of Understanding. The parties agree that the City has the right to unilaterally make decisions on all matters that are outside the scope of bargaining. Such matters include, but are not limited to, consideration of the merits, necessity, level or organization of fire services, staffing requirements, extra duty assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, reasonable work and safety rules and regulations. ARTICLE V - SALARY SCHEDULES AND RETIREMENT A. Monthly Compensation Employees shall be compensated at hourly rates by job code and pay grade during the term of this Agreement as set out in Exhibit A attached hereto and incorporated herein unless expressly provided for in other Articles of this Memorandum of Understanding. B. Performance Bonus Effective July 1, 2021, every member who has advanced through all salary steps A-G are eligible for an annual merit bonus of up to three percent (3%) of their base rate of pay. The annual merit bonus amount will be determined based upon the evaluation of the employee's performance. A completed performance evaluation with specific recognition of outstanding performance in accordance with the Fire Department's Leadership Intent document must be attached to the Personnel Action Form and sent to the Human Resources Division. Employees who disagree with the performance bonus award granted by their supervisor / manager may appeal the decision directly to the Fire Chief for FMA MOU July 1, 2021 through December 31, 2023 Page 2 FIRE MANAGEMENT ASSOCIATION additional consideration. After review, the Fire Chief's final decision regarding the performance bonus award amount shall be final and binding, and shall not be subject to grievance. The parties agree that to the extent permitted by CalPERS or law, the City will report the compensation in this section as special compensation pursuant to Title 2 CCR, Section 571 (a)(] ) Bonus. C. California Public Employees' Retirement System (CalPERS) Pick-up 1 . The City shall provide all safety employees described as "classic members by the Public Employees' Pension Reform Act of 2013 - "PEPRA" with that certain retirement program commonly known and described as the "3%" at age 50 plan" which is based on the retirement formula as set forth in the California Public Employees' Retirement System (PERS), Section 21362.2 of the California Government Code, including the one-half continuance option (Government Code Sections 21624 and 21626) for safety employees and the Fourth Level of the 1959 survivor option for all employees as established by the California Public Employees' Retirement System, Section 21571 of the California Government Code. 2. All "classic members" shall pay to PERS as part of the required member retirement contribution nine percent (9%) of pensionable income. i. Effective the beginning of the pay period that includes July 1 , 2021 , all "classic members" shall pay four percent (4%) additional compensation earnable as employer cost sharing, in accordance with Government Code Section 20516(f), for a total employee pension contribution of thirteen percent ( 13%). The parties agree that this cost sharing agreement shall continue after the expiration of this MOU unless/until otherwise negotiated to either an agreement (in a successor MOU) or the expiration of the impasse process by the parties. 3. The City has contracted with PERS to have retirement benefits calculated based upon the employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). 4. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this MOU. FMA MOU July 1, 2021 through December 31, 2023 Page 3 FIRE MANAGEMENT ASSOCIATION 5. The City provides the Pre-Retirement Optional Settlement 2 Death Benefit as set forth in California Government Code Section 21548 for all safety employees represented by the Association. 6. For "New Members" within the meaning of the California Public Employees' Pension Reform Act of 2013 (PEPRA). a. New Members shall be governed by the two and seven tenths percent at age 57 (2.7% @ 57) retirement formula set forth in Government Code section 7522.25(d). b. Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. c. "New members" as defined by PEPRA shall contribute one half of the normal cost rate, as established by CaIPERS. A. Effective the beginning of the pay period that includes July 1 , 2021 , all new members shall pay at least thirteen percent (13%) of pensionable compensation as their retirement contribution. If the required contribution per PEPRA (half the normal cost) is less than thirteen percent (13%), employees shall pay the difference between the required PEPRA contribution and thirteen percent (13%) as cost sharing per Government Code Section 20516(f). If the required PEPRA contribution is at least thirteen percent (13%) or more, new members will pay the required PEPRA contribution. The parties agree that this cost sharing agreement shall continue after the expiration of this MOU unless/until otherwise negotiated to either an agreement (in a successor MOU) or the expiration of the impasse process by the parties. 7. The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. D. Self Funded Supplemental Retirement Benefit FMA MOU July 1, 2021 through December 31, 2023 Page 4 FIRE MANAGEMENT ASSOCIATION Employees hired prior to August 17, 1998, are eligible for the Self Funded Supplemental Retirement Benefit, which provides that: 1 . In the event an employee elects Option # 1, #2, #2W, #3, #3W, or #4 of the Public Employees' Retirement Law, the City shall pay the difference between such elected option and the unmodified allowance which the employee would have received for his/her life alone as provided in California Government Code Sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the employee, shall be payable by the City during the life of the employee, and upon that employee's death, the City obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees covered by this agreement. 2. Employees hired on or after August 17, 1998, shall not be eligible for this benefit. E. Medical Insurance Upon Retirement As required by the Government Code, while the City is contracted with CalPERS to participate in the Public Employees' Medical and Hospital Care Act (PEMHCA) program, retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. CalPERS shall be the sole determiner of eligibility for retiree (annuitant) to participate in the PEMHCA program. The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the Association and the City or if the City elects to impose termination of its participation in the PEMHCA program, retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the City terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2002-120 Exhibit B to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. F. CalPERS Additional Benefits 1. The City shall provide all "Classic" safety employees with the retirement program commonly known and described as the "3% at age 50 plan" FMA MOU July 1, 2021 through December 31, 2023 Page 5 FIRE MANAGEMENT ASSOCIATION which is based on the retirement formula as set forth in the California Public Employees' Retirement Law, , Section 21362.2 of the California Government Code, including the one-half continuance option (Government Code Sections 21263 and 21263.1 ) for safety employees and the Fourth Level of the 1959 survivor option for all employees as established by the California Public Employees' Retirement Law, Section 21574 of the California Government Code. 2. The City shall continue to contract with CalPERS to have retirement benefits calculated based upon the employee's highest one year's compensation, pursuant to the provisions of Section 20042 (highest single year). 3. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this MOU. 4. Employees shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit as provided in Government Code Section 21548 G. Direct Deposit All unit employees shall be required to utilize direct deposit of payroll checks. ARTICLE VI -ADDITIONAL MANAGEMENT BENEFITS A. Holiday Pay-In-Lieu Employees shall be compensated by the City in lieu of the ten (10) listed holidays at the rate of 3.0768 hours multiplied by the employee's hourly rate set forth in Exhibit A, payable each and every pay period. The following are the recognized legal holidays under this MOU: 1 . New Year's Day (January 1 ) 2. Martin Luther King's Birthday (third Monday in January) 3. President's Day (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. Friday after Thanksgiving 10. Christmas Day (December 25) FMA MOU July 1, 2021 through December 31, 2023 Page 6 FIRE MANAGEMENT ASSOCIATION Any day declared by the President of the United States to be a national holiday, or by the Governor of the State of California to be a state holiday, and adopted as an employee holiday by the City Council of Huntington Beach. Holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. Employees designated by the Fire Chief who are required to work regular shifts on the above listed holidays as set forth in this Article, shall not be entitled to time off or additional pay. The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(5) Holiday Pay. B. Bilingual Skill Pov Employees whose bilingual skills are qualified, in accordance with the most current Huntington Beach Fire Department Organization Manual Policy D- 26, shall be paid an additional five percent (5%) of their base rate of pay in addition to their regular bi-weekly salary. In order to be qualified and certified for said compensation, employee's language proficiency will be tested and certified by the Administrative Services Director or designee. Basic conversational proficiency will be evaluated based on response to a scenario driven oral evaluation. Human Resources will notify candidates of the results of the oral evaluation. If the candidate's attempt is unsuccessful, they may repeat the process in six (6) months' time from the date of the previous exam. Bilingual skill pay shall begin the first day of the pay period following certification. The parties agree that to the extent permitted by law, Bilingual Skill Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(4) Bilingual Premium. C. Education Incentive Pay Employees who have attained a Master's Degree or successfully completed the United States Fire Administration Executive Fire Officer Program (EFOP) shall receive education incentive pay of three percent (3%) of their base rate of pay. FMA MOU July 1, 2021 through December 31, 2023 Page 7 FIRE MANAGEMENT ASSOCIATION The City supports employee participation in the EFOP. The City will provide each participating employee, upon EFOP program acceptance, full payment of each required program course, time to attend the course for each required program year, and travel expense to attend the required course for each program year. The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(2) Educational Incentive Pay- D. Emergency Medical Technician Pay All employees in the unit who possess an Emergency Medical Technician (EMT) certification shall receive one and sixty seven one hundredths percent (1 .67%) of base rate of pay. The parties agree that to the extent permitted by law, Emergency Medical Technician (EMT) Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(2) Emergency Medical Technician Pay- E. Strike Team Leader Pay Employees who successfully complete the required Incident Command System (ICS) training courses and Position Task Books as outlined in the California Incident Command Certification System (CICCS) Incident Qualifications Guide, and are certified as a Strike Team Leader Engine through the sponsoring Operational Area Peer Review Committee will receive one percent (I%) of their base rate of pay. The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(2) Educational Incentive Pay- F. Longevity Pay All employees with the following full time, paid employment as a Firefighter shall receive the following longevity pay: 1 . Five (5) years or more, but less than ten (10) years, of service shall receive longevity pay equal to 2.5% of base salary as set forth in Exhibit A. FMA MOU July 1, 2021 through December 31, 2023 Page 8 FIRE MANAGEMENT ASSOCIATION 2. Ten (10) years or more, but less than twenty (20) years, of service shall receive longevity pay equal to 5% of base salary as set forth in Exhibit A. 3. Twenty (20) years or more of service shall receive longevity pay equal to 7.5% of base salary as set forth in Exhibit A. Volunteer, reserve, and part-time position time will not be factored into the total years of service under Longevity Pay. The parties agree that to the extent permitted by law, Longevity Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(1) Longevity Pay. ARTICLE VII - UNIFORMS The City agrees to provide uniforms to employees on active duty who are required to wear uniforms. For each eligible employee, the City will report to the CalPERS the average annual cost of uniforms provided by the City as special compensation in accordance with Title 2, California Code of Regulations, Section 571 (a)(5). For employees who are not actively employed for an entire payroll calendar year, a prorated cost of uniforms shall apply. For "new members" as defined by the Public Employees' Pension Reform Act of 2013, the cost of uniforms will not be reported as compensation earnable to ColPERS. ARTICLE VIII - WORK SCHEDULE/COMPENSATORY PAY/TIME OFF A. Work Schedule 1 . All twenty-four (24) hour shift employees shall work an average of fifty-six (56) hours per week pursuant to the current schedule of two (2) twenty-four (24) hour shifts in a two (2) day period with four (4) consecutive days off. Total hours worked in a calendar year will equal two thousand nine hundred and twelve (2912) hours. All twenty-four (24) hour shift employees shall be on a fifteen (15) day work period consistent with the 7(K) exemption set forth in the Fair Labor Standards Act (FLSA). 2. Administrative work schedules are to be forty (40) hours per week on a four (4) day workweek, ten (10) hours per day, twenty eight (28) day 7(K) FLSA work period. Total hours worked in a calendar year will equal two thousand eighty (2080) hours. FMA MOU July 1, 2021 through December 31, 2023 Page 9 FIRE MANAGEMENT ASSOCIATION B. Compensatory Pay 1 . Prior approval to accrue compensatory time All employees must gain approval from the Fire Chief in advance of accruing compensatory time. For approved compensatory time, employees working suppression or administrative duties, as approved by the Fire Chief, accrue compensatory time off at time and one half for hours worked in addition to their regular schedule, subject to the limitations contained in Article VII.B.3. below. 2. Prior approval to work any hours in addition to regular schedule Battalion Chiefs must gain approval to work any hours that are in addition to their regular schedule in advance from a Division Chief, Division Chiefs must gain approval to work any hours that are in addition to their regular schedule in advance from the Fire Chief. 3. Description of Compensatory Pay Benefits a. Compensatory pay is paid at the forty (40) hour hourly rate for each hour. b. Compensatory time earned can be converted to cash at the employee's forty (40) hour hourly rate. c. Maximum accrual shall be one hundred sixty (160) hours. ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS A. Health The City shall continue to make available group medical, dental, and vision benefits to all Association employees. A copy of the medical, dental, and vision plan brochures may be obtained from the Human Resources Division. l . Effective Date of Coverage An employee and eligible dependent(s) shall become eligible to participate in the City's health insurance plans described herein. Effective the first of the month following the employee's date of hire, any required employee payroll deduction shall begin with the first full pay period following the effective date of coverage and shall continue through the FMA MOU July 1, 2021 through December 31, 2023 Page 10 FIRE MANAGEMENT ASSOCIATION end of the month in which the employee separates from employment. All employee contributions shall be deducted on a pre-tax basis. 2. California Public Employees' Retirement System (CaIPERS) Public Employees' Medical and Hospital Care Act (PEMHCA) The City presently contracts with CalPERS to provide medical coverage. The City is required under CalPERS PEMHCA to make a contribution to retiree medical premiums. A retiree's right to receive a City contribution, and the City's obligation to make payment on behalf of retirees, shall only exist as long as the City contracts with CalPERS for medical insurance, except as provided in Article VIII(4)(b). In addition, while the City is in CaIPERS, its obligations to make payments on behalf of retirees shall be limited to the minimum payment required by law. a. PEMHCA Employer Contributions The City shall contribute on behalf of each employee the mandated minimum sum per month toward the payment of premiums for medical insurance under the PEMHCA program. As the mandated minimum is increased, the City shall make the appropriate adjustments by decreasing its flex benefits contribution accordingly as defined in the following sub-section. b. Maximum Employer Contributions For the term of this agreement, the City's maximum monthly employer contribution for each employee's health and other insurance premiums are set forth as follows: i. The maximum City contribution shall be based on the employee's enrollment in each plan. The parties agree that the mandated minimum PEMHCA contribution referenced above in paragraph 2a is included in the sums stated above in this sub-section. If the employee enrolls in a plan wherein the costs exceed the City contribution, the employee is responsible for all additional premiums through pre-tax payroll deductions. ii. Effective January 1, 2022, the City's maximum monthly contribution shall be: 1 . Single - $745.83 2. Two Party - $1,468.95 3. Family - $1,837.83 FMA MOU July 1, 2021 through December 31, 2023 Page 11 FIRE MANAGEMENT ASSOCIATION iii. Effective January 1, 2023, the City's maximum monthly contribution shall be: 1. Single - $769.16 2. Two Party - $1,492.28 3. Family - $1,861.16 iv. Any increase in premiums above the City's 2023 contribution cap will be the responsibility of the employee. 3. Dental Insurance The annual maximum benefit for the Delta Dental PPO plan is $2000. a. Effective January 1, 2022, the maximum City contribution shall be equivalent to the premium for the Delta Dental PPO plan based on the employee's enrollment of employee only ("EE"), employee plus one dependent ("EE+1"), or employee plus two or more dependents ("EE+2"). b. Effective January 1, 2023, the City contribution shall not increase. Any increase in premiums above the City's current contribution cap will be the responsibility of the employee. The City's maximum monthly employer contributions for health and other insurance premiums are summarized in the tables below. The amounts are inclusive of the CalPERS statutory minimum amount. Table 1. FMA Health Contributions Effective January 1, 2022 Maximum City Contributions Tier Medical Dental Dental Vision PPO HMO Single 745.83 58.00 26.54 23.87 Two-Party 1,468.95 108.40 45.12 23.87 Family 1,837.83 142.90 69.01 23.87 Opt-out 745.83 - I - FMA MOU July 1, 2021 through December 31. 2023 Page 12 FIRE MANAGEMENT ASSOCIATION Table 2. FMA Health Contributions Effective January 1, 2023 Maximum City Contributions Tier Medical Dental Dental Vision PPO HMO Single 769.16 58.00 26.54 23.87 Two-Party 1,492.28 108.40 45.12 23.87 Family 1,861.16 142.90 69.01 23.87 Opt-out 769.16 - - - 4. Retiree (Annuitant) Coverage As required by the Government Code retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. The City's requirement to provide retirees and/or annuitants medical coverage is solely governed by the Government Code requirement to extend this benefit to retirees (annuitants). While the City is contracted with CaIPERS to participate in the PEMHCA program, CalPERS shall be the sole determiner of eligibility for retiree and/or annuitant to participate in the PEMHCA program. a. City Contribution (Unequal Contribution Method) for Retirees As allowed by the Government Code and the CaIPERS Board, and requested by the Association, the City shall use the Unequal Contribution Method to make the mandated minimum allowable City contribution on behalf of each retiree or annuitant. b. Termination of Participation in the CaIPERS PEMHCA program - Impact to Retirees The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the Association and the City or if the City elects to impose termination of its participation in the PEMHCA program, retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the City terminates its participation in the PEMHCA program, the retiree medical subsidy program in place per FMA MOU July 1, 2021 through December 31, 2023 Page 13 FIRE MANAGEMENT ASSOCIATION Resolution No. 2002-120, Exhibit B, to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. 5. Additional Costs for Participation in the PEMHCA Program a. Retiree and/or Annuitant Coverage The Association shall pay to the City an amount equal to $1 .00 per month for each additional retiree and/or annuitant in the bargaining unit who elects to participate in the PEMHCA plan but is not participating in the City sponsored retiree medical program as of the beginning of a pay period after the PEMHCA program is in place. Each January 10 the amount per month paid to the City for each retiree and/or annuitant described above shall increase by the amount PEMHCA requires the City to pay on behalf of each retiree (annuitant). Article VIII (A) (4) (a) above provides an example of expected payments per retiree or annuitant per month. In the event of passage of state legislation, judicial rulings, or CalPERS board actions that increases the mandatory minimum monthly contribution for retirees (annuitants), the Association shall pay an equal amount to the City. Payments shall be made the first of the month (following implementation). If the Association fails to make timely payments for two consecutive months, the City shall implement a decrease in the supplemental benefit contribution to health insurance for each unit employee by an amount equal to the total increased cost paid by the City. (For example, if the increased cost for retirees equals $6,000 per year, the monthly supplemental benefit for each employee will be decreased as follows: $6,000 divided by twelve (months) = $500, which is then divided by the number of employees receiving supplemental benefits). b. Termination Clause The City and Association may each request termination of the City's contract with CaIPERS after the announcement of state legislation, judicial rulings, or a CalPERS board action that changes the employer's contribution, insurance premiums or program changes to the CaIPERS medical plan. FMA MOU July 1, 2021 through December 31, 2023 Page 14 FIRE MANAGEMENT ASSOCIATION The City and Association may elect to terminate its participation in the CalPERS PEMHCA program by mutual agreement through the meet and confer process between the Association and the City. 6. Medical Opt-Out If an employee is covered by a group health insurance outside of a City- provided program (evidence of which must be supplied to the Human Resources Division, as described below), the employee may elect to discontinue City health insurance coverage and receive as taxable compensation, the cash equivalent of the single-party maximum City contribution, paid bi-weekly. This amount may be deposited into the employee's deferred compensation account or any other pre-tax program offered by the City. In order to be eligible for the opt-out payment the employee must be able to demonstrate to the City's satisfaction that they have minimum essential coverage as defined by the Affordable Care Act, (through another source other than coverage in the individual market, whether or not obtained through Covered California) and will not incur penalties under the ACA. B. Section 125 Employee Plan The City shall provide an Internal Revenue Code Section 125 employee plan that allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses as determined by the Internal Revenue Code. C. Life and Accidental Death and Dismemberment Each employee shall be provided with $50,000 (fifty thousand) life insurance and $50,000 (fifty thousand) accidental death and dismemberment insurance paid for by the City. Each employee shall have the option, at their own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the City's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. Long Term Disability Insurance This program provides, for each incident of illness or injury, a waiting period of thirty (30) calendar days, during which the employee may use accumulated sick leave, general leave, or the employee may elect to be in a non-pay status. Subsequent to the thirty (30) day waiting period, the employee will be FMA MOU July 1, 2021 through December 31, 2023 Page 15 FIRE MANAGEMENT ASSOCIATION covered by an insurance plan paid for by the City, providing 66 2/3% (sixty six and two-third percent) of the first $12,500 (twelve thousand five hundred) of the employee's basic monthly earnings. The maximum benefit period for disability due to accident or sickness shall be to age 65 (sixty-five). Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability is defined as: "The inability to perform all of the duties of regular occupation during two years, and thereafter the inability to engage in any employment or occupation, for which he is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in another occupation. Survivor's benefit continues plan payment for three (3) months beyond death. A copy of the plan is on file in the Human Resources Division. E. Retiree Medical Trust (RMT) The City authorizes the FMA to participate in a retiree medical plan administered by the PORAC Retiree Medical Trust, with the following conditions: l . The City and FMA agree that the City shall not provide any contribution to the program. 2. Effective 10/01 /2020, City shall withhold $100.00 per month for each represented employee. Thereafter, said withholding shall be in an amount as designated in writing by FMA. Deductions shall be made on the first two pay periods of each month. 3. The City shall withhold $100.00 per month for each represented employee to participate in the program. The withholding could change and if it does, it shall be in an amount as designated in writing by the FMA. Deductions shall be taken on the first two checks of each month. 4. FMA shall pay all associated expenses incurred to participate in this program. 5. Upon request, the FMA shall provide documentation to the City as follows: a. A copy of the in-force employee medical welfare benefit trust fund program: FMA MOU July 1, 2021 through December 31, 2023 Page 16 FIRE MANAGEMENT ASSOCIATION b. A statement certifying that funds collected are for employee welfare medical benefits for FMA represented employees only; c. A copy of the current program document as well as any changes, amendments or written confirmation that there have been no changes to the employee medical welfare benefit trust fund program provider; d. verification of the funds submitted to the PORAC Retiree Medical Trust; and e. A statement certifying that the submitted funds are only being utilized to provide employee welfare medical benefit trust funds for participating members including members of the FMA. 6. City shall pay the withheld funds to the PORAC Retiree Medical Trust bi- weekly. 7. All Federal and State laws regarding employee medical welfare benefit trust funds coverage shall be followed. 8. FMA agrees that it will indemnify and hold harmless the City as well as all direct or indirect successors, officers, directors, heirs, predecessors, assigns, agents, insurers, employees, attorneys, representatives, and each of them, past and present, from and against any claims, lawsuits, penalties, interest, taxes, or liability of any kind whatsoever, which may result from the qualified employee welfare benefit trust fund program. 9. Upon retirement of an employee, the City shall transfer to the Trust, an amount equal to the employee's payout outlined in the City of Huntington Beach Separation Agreement and General Release. The City shall contribute the monies on a pre-tax basis. The monies contributed to the Trust fund shall only be used for retiree health insurance premiums or heath care services expenses. There shall be no employee election to take such amount in cash. 10.The City hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust Office in regard to reporting and depositing the required contributions set forth above. The City will cooperate with the Trust in allowing a payroll audit for the purpose of ascertaining if the proper amount of contributions have been made. FMA MOU July 1, 2021 through December 31, 2023 Page 17 FIRE MANAGEMENT ASSOCIATION G. Miscellaneous 1. City Paid Premiums While on Medical Disability When an employee is off work without pay for reason of medical disability, the City shall maintain the City paid employee's insurance premiums during the period the employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24) months. 2. Insurance and Benefits Advisory Committee The City and the Association participate in a City-wide joint labor and management insurance and benefits advisory committee to discuss and study issues relating to insurance benefits available for employees. 3. Health Plan Over-Payments Unit employees shall be responsible for accurately reporting the removal of ineligible dependents from health plan coverage. The City shall have the right to recover any premium paid by the City, on behalf of ineligible dependents. Recovery of such over-payments shall be made as follows: a. Reduction of Employee's Bi-Weekly Salary Warrant The employee's bi-weekly salary warrant shall be reduced by one- half (1/2) of the amount of the bi-weekly over-payment. Such reduction shall continue until the entire amount of the over- payment is recovered. b. Notice of Ineligible Dependents The City shall use its best efforts to advise all unit employees of their obligation to report changes in the status of dependents, which affect their eligibility. c. Twelve Month Recovery Period The City shall be entitled to recover a maximum of twelve (12) months of premium over-payments. Neither the employee nor the dependent shall be liable to the City other than as provided herein. FMA MOU July 1, 2021 through December 31, 2023 Page 18 FIRE MANAGEMENT ASSOCIATION ARTICLE X - LEAVE BENEFITS A. General Leave 1 . Accrual Employees accrue General Leave at the accrual rates outlined below. General Leave may be used for any purpose, including vacation, sick leave and personal leave. Employees shall accrue General Leave at their appropriate assigned work schedule rate, either forty (40) hour or fifty six (56) hour workweek. In the event of a change in work schedules, which must be at the beginning of a pay period, payroll shall change the accrued General Leave balance and accrual rate based on the new schedule using the conversion factor of .7143. Personnel who change from a fifty-six (56) hour schedule to a forty (40) hour schedule shall multiply the existing General Leave by .7143. Personnel who change from a forty (40) hour schedule to a fifty-six (56) hour schedule shall divide their existing General Leave by .7143. General Leave General Leave Years of Service Accrual Accrual 40-Hour Rate 56-Hour Rate First through Fourth Year 176 Hours 246.4 Hours Fifth through Ninth Year 200 Hours 280.0 Hours Tenth through Fourteenth Year 224 Hours 313.6 Hours Fifteenth Year and Thereafter 256 Hours 358.4 Hours 2. Eligibility and Approval General Leave must be pre-approved; except for illness, injury or family sickness, which may require a physician's statement for approval. Accrued General Leave may not be taken prior to six (6) months' service except for illness, injury or family sickness. General Leave accrued time is to be computed from hiring date anniversary. Employees shall not be permitted to take General Leave in excess of actual time earned. Employees on a forty (40) hour schedule shall not accrue General Leave in excess of six hundred forty (640) hours; fifty- six (56) hour employees shall not accrue General Leave in excess of eight hundred and ninety six (896) hours. General Leave accumulated in excess of six hundred forty (640) hours for forty (40) hour schedule employees and General Leave accumulated in excess of eight hundred and ninety six (896) hours for FMA MOU July 1, 2021 through December 31, 2023 Page 19 FIRE MANAGEMENT ASSOCIATION fifty-six (56) hour employees shall be paid at the base hourly rate of pay, on the first pay day following such accumulation. Employees may not use their General Leave to advance their separation date on retirement or other separation from employment. 3. Conversion to Cash Twice during each fiscal year, each employee shall have the option to convert into a cash payment up to a total of one hundred twenty (120) hours of earned General Leave benefits. The employee shall give two (2) weeks advance notice of their desire to exercise such option. B. Sick Leave 1 . Accrual No employee shall accrue sick leave. 2. Credit Employees assigned to FMA shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage Employees may use accrued sick leave for the some purposes for which it was used prior to the employee's assignment to FMA. 4. Family Sick Leave The City will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 5. Pay Off At Termination a. Employees covered by this agreement and on the payroll on November 20, 1978, shall be entitled to the following sick leave payoff plan: FMA MOU July 1, 2021 through December 31, 2023 Page 20 FIRE MANAGEMENT ASSOCIATION At involuntary termination by reason of industrial or non-industrial disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred twenty (720) hours of unused, accumulated sick leave, except as provided in paragraph 4 below. Upon termination for any other reason, employees shall be compensated at their current forty (40) hour equivalent rate of pay for fifty percent (50%) of all unused, accumulated sick leave. The maximum number of hours paid off at termination will be a total of seven hundred twenty (720) hours. Example: Employee has one thousand nine hundred twenty (1920) hours of accrued sick leave. 1920 hours X 50% = 960 hours. Maximum pay off is seven hundred twenty (720) hours. Pay off = 720 hours X employee's current forty (40) hour equivalent pay rate. b. Employees hired after November 20, 1978, shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current forty (40) hour equivalent rate, for twenty-five percent (25%) of unused, earned sick leave to four hundred eighty (480) hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of four hundred eighty (480) hours, but not to exceed seven hundred twenty (720) hours, except as provided in paragraph 4 below. c. Except as provided in paragraph 4 below, no employee shall be paid at termination for more than seven hundred twenty (720) hours of unused, accumulated sick leave. However, employees may utilize accumulated sick leave on the basis of "last in, first out" meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Employees who had unused, accumulated sick leave in excess of seven hundred twenty (720) hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs a and b above. In FMA MOU July 1, 2021 through December 31, 2023 Page 21 FIRE MANAGEMENT ASSOCIATION no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over seven hundred twenty (720) hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. e. To the extent that any "capped" amount of excess sick leave over seven hundred twenty (720) hours is utilized, the maximum compensate amount shall be correspondingly reduced. (Example: Employee had one thousand (1,000) hours accumulated. Six months after July 5, 1980, employee has accumulated another forty eight (48) hours. Employee is then sick for one hundred (120) hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by seventy two (72) hours to nine hundred twenty-eight (928) hours. C. Bereavement Leave Employees assigned to the forty (40) hour work week shall be entitled to Bereavement Leave not to exceed thirty (30) work hours in each instance of death in the immediate family. Employees assigned to the fifty-six (56) hour work week for suppression assignments shall be entitled to Bereavement Leave not to exceed forty- eight (48) work hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, registered domestic partner, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in- law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. ARTICLE XI - CITY RULES The City's Personnel Rules are incorporated into this Agreement by reference as though set forth in full. All City Personnel Rules shall apply to Association members, however, to the extent this MOU modifies the City's Personnel rules, the Personnel Rules as modified will apply to Association members. FMA MOU July 1, 2021 through December 31, 2023 Page 22 FIRE MANAGEMENT ASSOCIATION ARTICLE XII -- MISCELLANEOUS A. Vehicle Policy l . Approval is required by the City Manager or their designee for any City vehicle to be taken home by an employee. 2. The auto allowance for qualifying employees shall be one hundred sixty-one dollars and fifty-three cents ($161 .53) bi-weekly. 3. The monthly automobile allowance shall not be reduced during the term of this agreement. 4. Eligibility for automobile allowance and the use of City vehicles shall be determined in accordance with the Administrative Regulation, Vehicle Use Policy and the City's Fleet Management Program. 5. Only employees that reside within thirty five (35) miles of the City's limits may be assigned a City vehicle. An employee assigned a vehicle may be required to be able to report directly to work or any emergency situation, at the direction of the Fire Chief or their designee. Use of the assigned vehicle for more than minimal personal use is not authorized. Employees assigned a City vehicle pursuant to this section shall participate in the DMV Pull Notice program. B. Deferred Compensation Loan Program Employees may borrow up to fifty percent (50%) of their deferred compensation funds for critical needs, such as medical costs, college tuition, or purchase of a home, pursuant to program standards and regulations. C. Association Business An allowance of fifty (50) hours per year shall be established for the purpose of allowing authorized representatives of the Association to represent employees in their employment relations. FMA MOU July 1, 2021 through December 31, 2023 Page 23 FIRE MANAGEMENT ASSOCIATION D. Modified Return To work Policy The City and Association agree to meet and confer during the term of this agreement to establish a modified return to work policy for employees who experience an industrial or non-industrial injury or illness. E. Controlled Substance and Alcohol Testing The City maintains the right to conduct a controlled substance and/or alcohol test during working hours of any employee that it reasonably suspects is under the influence of alcohol or a controlled substance in the workplace. F. Grievance Hearing Officer Fees The City and Association agree that for any personnel matter, pursuant to Personnel Rules 19 and 20, whereby a hearing officer is mutually agreed upon to render an opinion, the hearing officer costs shall be shared equally by the City and Association. G. Employer-Employee Relations Resolution During the term of this agreement, the City and the Association agree to meet and confer to update the Employer Employee Relations Resolution to reflect current state law. H. Alternative Dispute Resolution Agreement The Alternative Dispute Resolution (ADR) agreement between the City and FMA as executed on April 1, 2013, and amended on December 16, 2019, is herein referenced as Exhibit D. FMA MOU July 1, 2021 through December 31, 2023 Page 24 FIRE MANAGEMENT ASSOCIATION ARTICLE XIII - CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this T?P�day of Deaznbe r , 2021. HU TINGTON B ACH 0401H NGTON BEACH FIR MA GE WT A SOCIATION Oliver Chi Martin rt City Manager FMA Presid At Travis Hopkins Tim An( e Assistant City Manager FMA V' a resident Brittany Mello Interim Administrative Services Director Scott Haberie Fire Chief APPROVED A 'li-ch9fel Gates Cit Attorney ,wJ FMA MOU July 1, 2021 through December 31, 2023 Page 25 FIRE MANAGEMENT ASSOCIATION EXHIBIT A - SALARY SCHEDULE Effective the Beginning of the Pay Period Including July 1 2021 40 Hour Rate (Hourly) Job No Job Description Range A B C D E F G 31 Fire Battalion Chief 248 65.41 68.68 72.12 75.12 79.51 83.48 81.66 26 Fire Division Chief 262 75.19 78.95 82.90 87.04 91.39 95.96 100.76 32 Marine Safety Division Chief 221 50.00 52.50 55.13 57.88 60.78 63.82 67.01 56 Hour Rafe (Hourly) Job No Job Description Range A { C D E F G 31 Fire Battalion Chief 248 46.72 49.06 51.51 54.09 56.79 59.63 62.61 26 Fire Division Chief 262 53.71 56.39 59.21 62.17 65.28 68.54 71.97 32 Marine Safety Division Chief 221 35.71 37.50 39.38 41.34 43.41 45.58 47.86 Monthly Rate Job No Job Description Range A t C D ! F G 31 Fire Battalion 248 11,338.01 11,904.91 12,500.15 13,125.16 13,781.42 14,470.49 15,194.01 Chief 26 Fire Division 262 13,032.75 13,684.38 14.368.60 15,087.03 15,841.38 16,633.45 17,465.12 Chief 32 Marine Safety 221 8,666.82 9,100.16 9,555.16 10,032.92 10,534.57 11,061.30 11,614.36 Division Chief FMA MOU July 1. 2021 through December 31, 2023 Page 26 FIRE MANAGEMENT ASSOCIATION EXHIBIT B - SERVICE CREDIT SUBSIDY An employee who has retired from the City and meets the plan participation requirements shall receive a monthly Service Credit Subsidy to reimburse the retiree for the payment of qualified medical expenses incurred for the purchase of medical insurance. Plan Participation Requirements 1 . At the time of retirement the employee has a minimum of ten (10) years of continuous regular (permanent) City service or is granted an industrial disability retirement: and 2. At the time of retirement, the employee is employed by the City, and 3. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System (CalPERS). The City's obligation to pay the Service Credit Subsidy as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: a. On the first of the month in which a retiree or dependent reaches age sixty five (65) or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay Service Credit Subsidy may be adjusted downward or eliminated. b. In the event of the death of an eligible employee, whether retired or not, the amount of the Service Credit Subsidy benefit which the deceased employee was eligible for at the time of their death, shall be paid to the surviving spouse or dependent for a period not to exceed twelve (12) months from the date of death. 4. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for Service Credit Subsidy begins after an employee has completed ten (10) years of continuous regular (permanent) service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of their rehire in accordance with the City's Personnel Rules. FMA MOU July 1, 2021 through December 31, 2023 Page 27 FIRE MANAGEMENT ASSOCIATION EXHIBIT B — SERVICE CREDIT SUBSIDY To receive the Service Credit Subsidy retirees are required to purchase medical insurance from City sponsored plans. The City shall have the right to require any retiree (annuitant) to annually certify that the retiree is purchasing medical insurance benefits. 5. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $120 (one hundred twenty). Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. b. Service Credit Subsidy Payment shall not exceed dollar amount, which is equal to the qualified medical expenses incurred for the purchase of City sponsored medical insurance. 7. Maximum Monthly Service Credit Subsidy Payments All retirees, including those retired as a result of disability whose number of years of service exceeds ten (10) continuous years of regular (permanent) service immediately prior to retirement shall be entitled to a maximum monthly Service Credit Subsidy by the City for each year of completed City service as follows: FMA MOU July 1, 2021 through December 31, 2023 Page 28 FIRE MANAGEMENT ASSOCIATION EXHIBIT B - SERVICE CREDIT SUBSIDY Maximum Service Credit Subsidy Retirements After: Service Credit Years of Service Subsidy 10 $ 120 11 135 12 150 13 165 14 180 15 195 16 210 17 225 18 240 19 255 20 270 21 285 22 299 23 314 24 329 25 344 The Service Credit Subsidy will be reduced every January 151 by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). Article VIII(A)(4)(a) provides an example of expected reductions per retiree per month. 8. Medicare a. All persons are eligible for Medicare coverage at age 65. Those with sufficient credited quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, the participant pays for Part B of Medicare. b. when a retiree and their spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the Service Credit Subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. FMA MOU July 1, 2021 through December 31, 2023 Page 29 FIRE MANAGEMENT ASSOCIATION EXHIBIT B - SERVICE CREDIT SUBSIDY c. When a retiree at age 65 is eligible for paid Part A of Medicare and their spouse is not eligible for paid Part A of Medicare, the spouse shall not receive the subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and their spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. 9. Cancellation a. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: i. Coverage for a retiree under the Service Credit Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age 65. ii. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application," whether or not application has been made for Medicare, the Service Credit Subsidy Plan will be eliminated. FMA MOU July 1, 2021 through December 31, 2023 Page 30 FIRE MANAGEMENT ASSOCIATION EXHIBIT C - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Guidelines 1 . Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either; return to work, long-term disability, or medical retirement. Employees who accrue Vacation, General Leave or Exempt Compensatory Time may donate such leave to another employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of Vacation, General, or Sick Leave. 2. Definitions Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the employee or an employee's family member. Family Member - For the purposes of this policy, the definition of family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner). 3. Eligible Leave Accrued Exempt Compensatory Time, Vacation or General Leave hours may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Permanent employees who accrue Vacation or General Leave may donate such hours to eligible recipients. Exempt Compensatory Time accrued may also be donated. An eligible recipient is an employee who: • Accrues Vacation or General Leave; • Is not receiving disability benefits or Workers' Compensation payments; and • Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted FMA MOU July 1, 2021 through December 31, 2023 Page 31 FIRE MANAGEMENT ASSOCIATION EXHIBIT C — VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM into a dollar amount based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient's hourly wage. An employee needing leave will complete a Leave Donation Request Form and submit it to the Department Director for approval. The Department Director will forward the form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. Employees wanting to make donations will submit an Authorization for Donation to Payroll in the Finance Department. All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. Other Please contact the Human Resources Division on questions regarding staff participation in this program. FMA MOU July 1, 2021 through December 31, 2023 Page 32 FIRE MANAGEMENT ASSOCIATION EXHIBIT C - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated Vacation, General Leave or Exempt Compensatory Time. MY SIGNATURE CERTIFIES THAT: • A Leave of absence in relation to a catastrophic illness or injury has been approved by my department; and • I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type: Last, First, MI) ork Phone: Department: ob Title: Employee ID#: Requester Signature: Date: IDep r mo t ent Director Signature of Support: Date: Human Resources Division-Use Only End donation date will bridge to: donation date: ❑ Long Term Disability ❑ Medical Retirement beginning ❑ Length of FMLA leave ending ❑ Return to work Administrative Services Director Signature: Date signed: Please return this form to the Human Resources Office for processing. FMA MOU July 1. 2021 through December 31, 2023 P.l ;' FIRE MANAGEMENT ASSOCIATION EXHIBIT C — VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete Donor Name: (Please Print or Type: Last, First, MI) Work Phone: Donor Job Title: Type of Accrued Leave: ffffHours rs I wish to Donate: ❑ Vacation Vacation ❑ Compensatory Time Hours of Exempt Compensatory Time ❑ General Leave Hours of General Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued Vacation, Exempt Compensatory Time or General Leave hours to the Leave Donation Program for: Eligible recipient employee's name (Last, First, Ml): Donor Signature: Date: Please submit to Payroll in the Finance Department. FMA MOU July 1, 2021 through December 31, 2023 Page 34 FIRE MANAGEMENT ASSOCIATION EXHIBIT D - ALTERNATIVE DISPUTE RESOLUTION AGREEMENT LABOR MANAGEMENT WORKERS' COMPENSATION ALTERNATIVE DISPUTE RESOLUTION AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE FIRE MANAGEMENT ASSOCIATION This Labor Management Alternate Dispute Resolution Agreement ("Agreement") entered into by and between the City of Huntington Beach ("City") and the Fire Management Association ("FMA") is created pursuant to California Labor Code Section 3201 .7(a)(3)(c). Nothing in this Agreement diminishes the entitlement of an employee to compensation payments for total or partial disability, temporary disability, or medical treatment fully paid by the employer as otherwise provided in Division 4 of the Labor Code. Nothing in this Agreement denies to any employee the right to representation by counsel at all stages during the alternative dispute resolution process. Article I. Purpose The purposes of this Agreement are: l . To provide active employees claiming compensable injuries under Division 4 of the California Labor Code ("Workers' Compensation Law") with an expedited procedure to resolve medical disputes in accordance with Article IV, Section D of this Agreement to facilitate their prompt return to work at either full duties or a transitional duty assignment; 2. To provide retirees claiming a presumptive injury as defined by California Labor Cade (hereinafter "Labor Code") section 3212 et seq. with an expedited procedure to resolve medical disputes in accordance with Article IV, Section D of the Agreement; 3. To reduce the number and severity of disputes between the City and covered employees, when those disputes relate to workers' compensation; and 4. To provide workers' compensation coverage in a way that improves labor management relations, improves organizational effectiveness, and reduces costs to the City. These purposes will be achieved by utilizing an exclusive list of medical providers to be the sole and exclusive source of medical evaluations for disputed issues surrounding covered employees in accordance with California Labor Code Section 3201 .7(c). Now, therefore, in consideration of the mutual terms, covenants and conditions herein, the parties agree as follows: Article If. Term of Agreement FMA MOU July 1, 2021 through December 31, 2023 Page 35 FIRE MANAGEMENT ASSOCIATION EXHIBIT D — ALTERNATIVE DISPUTE RESOLUTION AGREEMENT The City and FMA enter into this Agreement with the understanding that the law authorizing this Agreement is new, untested and evolving. The parties further understand that this Agreement governs a pilot program and that it will become effective after it is executed by the parties, submitted to the Administrative Director of the State of California, Department of Industrial Relations, Division of Workers' Compensation in accordance with Title 8, California Code of Regulations, Section 10202(d), and accepted by the Administrative Director as evidenced by the Director's letter to the parties indicating approval of the Agreement. This Agreement shall be in effect for eighteen ( 18) months from the date of the implementation of the program. Thereafter, it shall be reviewed and, if found to be effective will continue and remain in force from year to year unless terminated by either party. Any claim arising from an industrial injury sustained before the termination of this Agreement shall continue to be covered by the terms of this Agreement, until all medical issues related to the pending claim are resolved. Any medical issue resolved under this Agreement shall be final and binding. The parties reserve the right to terminate this Agreement at any time for good cause, by mutual agreement or by act of the legislature. The terminating party must give thirty (30) days written notice to the other party. The parties agree to meet and confer in good faith to try and resolve the issues underlying the termination during the thirty day period prior to the termination of the Agreement. Upon termination of this Agreement, the parties shall become fully subject to the provisions of the California law to the same extent as they were prior to the implementation of this Agreement, except as otherwise specified herein. Article III. Scope of Agreement A. This Agreement applies only to injuries, as defined by Workers' Compensation Law, claims by 1 ) active employees; 2) retirees who claim a presumptive injury as defined by California Labor Code Section 3212 et seq.; and 3) active employees who file a claim and subsequently retire before the claim is resolved. Retirees who filed claims while they were active employees are covered under this Agreement only for the purposes of petitions to reopen a pre-existing claim unless covered under A(2). This Agreement does not apply to any other retired employees. This Agreement does not cover post-retirement amendments to active claims. B. Employees who are covered under this Agreement remain covered during the entire period of active employment. C. Injuries occurring and claims filed after termination of this Agreement are not covered by this Agreement. D. This Agreement is restricted to establishing an exclusive list of medical providers to be used for medical dispute resolution for the above-covered employees in accordance with California Labor Code Section 3201 .7(c). Article IV. Medical Provider FMA MOU July 1, 2021 through December 31, 2023 Page 36 FIRE MANAGEMENT ASSOCIATION EXHIBIT D — ALTERNATIVE DISPUTE RESOLUTION AGREEMENT A. This Agreement does not constitute a Medical Provider Network ("MPN"). Physicians who act as a covered employee's independent medical examiner ("IME") under this Agreement shall not act as the some employee's treating physician even if the physician has been pre-designated as the employee's treating physician, unless otherwise mutually agreed by the parties. Pre-designation of a physician must comply with the requirements set forth in Labor Code section 4600(d)(I). B. All employees with a disputed medical issue as described below in Section D must be evaluated by an approved physician from the exclusive list of approved medical providers. Said physician will serve as an IME. If the IME needs the opinion of a different specialist, the IME shall refer the employee to a physician of the IME's choice even if that doctor is not on the approved list. The exclusive list of approved medical providers will be established when the Agreement has been approved by all parties. C. The exclusive lists of approved medical providers shall include the specialties as agreed upon by the parties. D. An IME shall be used for all medical disputes that arise in connection with a workers' compensation claim including but not limited to determination of causation, the nature and extent of an injury, the nature and extent of permanent disability and apportionment, work restrictions, ability to return to work, including transitional duty, future medical care, and resolution of all disputes arising from utilization review, including need for spinal surgery pursuant to Labor Code section 4062(b). The parties will use the originally chosen IME for all subsequent disputes under this Agreement. In the event that said IME is no longer available, then the parties shall utilize the next specialist on the list pursuant to Article IV G d (below). The IME process will begin when either party gives the other written notice of an objection. Objections from the City will be sent to the employee with a copy to the employee's legal representative if represented and a copy to FMA. Objections from the employee or employee's legal representative will be sent to the employee's assigned Claims Examiner with a copy to the Claims Manager. Objections will be sent within thirty days of receipt of a medical report or a utilization review decision. A letter delaying decision of the claim automatically creates a dispute. A subsequent acceptance of the claim and/or resolution of the dispute issue eliminates the need for completion of the dispute resolution process set forth in this Agreement. E. The exclusive list of approved medical providers shall serve as the exclusive source of medical-legal evaluations as well as all other disputed medical issues arising from a claimed injury. FMA MOU July 1, 2021 through December 31, 2023 Page 37 FIRE MANAGEMENT ASSOCIATION EXHIBIT D - ALTERNATIVE DISPUTE RESOLUTION AGREEMENT F. The parties hereby agree that from time to time the exclusive list of approved medical providers may be amended. For either party to add an IME to the exclusive list of medical providers, the party must provide notice, in writing, to the other party of its intent to add a physician to the list. Absent a written objection to the other party within thirty (30) calendar days of receipt of the written proposal, the addition will be made. In the event there is an objection, the physician will not be added to the list. A physician may only be deleted from the exclusive list of medical providers if they breach the terms and conditions of the contract with the City or by mutual agreement of the parties. G. Appointments. a. The Claims section of the Workers' Compensation Division shall make appointment(s) with the IME within ten days of the date of the objection and/or notification of delay for employees covered under this Agreement. b. The employee shall be responsible for providing the Claims staff with their work schedule prior to an appointment being made so that appointments can be made during an employee's nonworking hours or the first or last hour of their workday. The amount of time allotted for hours spent at a physician's appointment during working hours will be subject to verification and will be allowed accordingly. c. Mileage reimbursement to covered employees shall be consistent with City policy and in accordance with Labor Code Section 4600 (e)(2) unless transportation is provided by the City. d. For purposes of appointments, the Claims staff will select the IME's by starting with the first name from the exclusive list of approved medical providers within the pertinent specialty, and continuing down the list, in order, until the list is exhausted, at which time the Claims staff will resume using the first name on the list. e. The City is not liable for the cost of any medical examination used to resolve the parties' disputes governed by this Agreement where said examination is furnished by a medical provider that is not authorized by this Agreement. Medical evaluations cannot be obtained outside of this Agreement for disputes covered by this Agreement. f. Both parties shall be bound by the opinions and recommendation of the IME selected in accordance with the terms of this Agreement. H. Industrial Disability Retirements a. The City and FMA recognize that the ADR process can also be utilized to obtain a competent medical opinion as it relates to determining an employee's eligibility for an Industrial Disability Retirement (IDR), pursuant to California Government Code Sections 21154 and 21156(a)(2). FMA MOU July 1, 2021 through December 31, 2023 Page 38 FIRE MANAGEMENT ASSOCIATION EXHIBIT D — ALTERNATIVE DISPUTE RESOLUTION AGREEMENT b. Pursuant to the guidelines outlined in Article IV of this Agreement, the City and the FMA shall meet and confer to identify an agreed-upon listing of IMEs to serve as the competent medical examiner in reviewing the employee's eligibility for an IDR. I. Use of IME When Medical Disputes Exist a. An IME shall be used for all medical disputes that arise in connection with a workers' compensation claim, including but not limited to determination of causation, the nature and extent of an injury, the nature and extent of permanent disability and apportionment, work restrictions, ability to return to work, including transitional duty, future medical care, and resolution of all disputes arising from utilization review, including need for spinal surgery pursuant to Labor Code Section 4062(b). b. Furthermore, City and FMA agree that IME reports will be admissible in any proceeding and / or hearing involving an injured employee. Article V. Discovery A. Employees covered by this Agreement shall provide the Claims staff with fully executed medical, employment and financial releases and any other documents reasonably necessary for the City to resolve the employee's claim, when requested. B. The parties agree they have met and conferred on the language of the medical/financial/employment releases to be used under this Agreement. If said releases cause undue delay and/or unforeseen adverse impact(s) to the City and/or the FMA and/or its members, then either party may request a meet and confer regarding said under delay and/or adverse impact(s). The parties shall meet and confer within 30 days of a party's request to meet and confer. C. Employees shall cooperate in providing a statement. D. This Agreement does not preclude a formal deposition of the applicant or the physician when necessary. Attorney's fees for employee depositions shall be covered by Labor Code section 5710. There will be no attorney's fees for doctor's depositions. Article VI. General Provisions A. The Agreement constitutes the entire understanding of the parties and supersedes all other Agreements, oral or written, with respect to the subject matter in this Agreement. B. This Agreement shall be governed and construed pursuant to the laws of the State of California. FMA MOU July 1, 2021 through December 31, 2023 Page 39 FIRE MANAGEMENT ASSOCIATION EXHIBIT D — ALTERNATIVE DISPUTE RESOLUTION AGREEMENT C. This Agreement, including all attachments and exhibits, shall not be amended, nor any provisions waived, except in writing, signed by the parties which expressly refers to this Agreement. D. If any portion of this Agreement is found to be unenforceable or illegal the remaining portions shall remain in full force and effect. E. Notice required under this Agreement shall be provided to the parties as follows: F. In the event that there is any legal proceeding between the parties to enforce or interpret this Agreement or to protect or establish any rights or remedies hereunder, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney's fees. FMA MOU July 1, 2021 through December 31, 2023 Page 40 Res. No. 2021-67 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on December 21, 2021 by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Consideration of Proposed Memoranda of Understanding with Huntington Beach Firefighters' Association; Fire, Police, and Marine Safety Management Associations; and Management Employees' Organization; and Introduction of the Huntington Beach Municipal Teamsters' MOU Overview OWN "Oro- ► On I I/16/2021. the City Council voted affirmatively to introduce Iwo labor agreements for formal consideration ► Huntington Beach Firefighters' Association (HBFA) ► 1 12 members ► MOU expired in June 2021 P. Fire Management Association (FMA) ► 8 members ► MOU expired in September 2017 i Overview sF� ► Or 21112021. the City Council voted affirmatively to introduce three labor agreements for formal consideration ► Management Employees' Organization (MEO) ► 105 Members ► MOU expires in December 2021 ► Marine Safety Management Association (MSMA) ► 18 Members ► MOU expired in March 2018 ► Police Management Association (PMA) ► 13 Members ► MOU expired in June 2020 Overview ► Tonight for City Council's consideration is the adoption of the proposed MOUs with these five associations: and. ► Introduction of the Proposed MOU with Huntington Beach Municipal Teamsters (HBMT) ► 345 Members ► MOU expires in December 2021 Proposed Memoranda of Understanding Huntington Beach Huntington Beach Fire Firefighters' Association (HBFA) Management Association (FMA) P. 25-yea agreement(July I. 2021 ► 2.5-Yea aaggrreement(July 1. 2021 - Dec.31. 2023) Dec.31. 20231 ► Opportunity to earn additional slep ► Opporlunily to earn up to 3%meril- increase.and up to 3%merit bused based lump sum bonus for top-step lump sum bonus for lop-step employees employees ► Increase employee CaIPERS cost P. Increase employee ColPFRS cost sharing by 2%(to the mox.of 13;( sharing by I%(to the max.of 13 0l P. City's medical pion contribution to ► City's medical plan conhibulion to increase by -$901 month. $23 in increase by -$601 month in Year I Year 2 $23 in Year 2 ► Education specialty.and longevity ► Holiday-in-Lieu 3 specially pay pay updates adustrnents ► the average annual cost of this P. the average annual cost of this overall agreement is$97,357 overall ogreemenl is$1.IM Proposed Memoranda of -•- Understanding Management Marine Safety Police --"- Employees Management Management Organization (MEO) Association (MSMA) Association (PMA) ram " Proposed Memoranda of Understanding { Huntington Beach Municipal Teamsters (HBMT) ► 3-year agreement (Jan. 1. 2022-Dec.31. 2024) ► 2 o wage increase I. Opportunity to earn additional step increase,and up to 3% merit-based lump sum bonus for top-step employees ► City's medical plan contribution to increase by overage of -$67/month in Year 1, $23/month in Year 2 ► Formal incorporation of two City-paid holidays (Christmas Eve and New Year's Eve) ► The overage annual cost of this overall agreement is$1.15M ,.n+cis City Council Options ► Approve the Proposed Successor Memoranda of Understanding with HBFA, FMA. MSMA. PMA. and MEO' and ► Approve the Introduction of the Proposed Successor MOU with HBMT ► Do not approve the adoption or introduction of the proposed agreements. and direct staff to: i i Continue to meet and confer with one or more Association(s), or 2I Utilize the impasse procedures contained within the City's Employer-Employee Relations Resolution