AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 3/21/2018
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council Consideration of the Corona Firefighters Association Memorandum of Understanding and Resolution No. 2018-011 approving the City of Corona Position Library and Compensation Plan
End
RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Adopt the Corona Firefighters Association Memorandum of Understanding effective March 21, 2018 through June 30, 2020.
2. Adopt Resolution No. 2018-011 approving the City of Corona Position Library and Compensation Plan and repealing prior Plans, including Resolution No. 2017-132.
Body
ANALYSIS:
The California Meyers-Millias-Brown-Act (MMBA) requires the City to meet and confer, in good faith, with its bargaining groups on all matters relating to employment conditions and employer-employee relations, including, but not limited to wages, hours and other terms and conditions of employment. The Corona Firefighters Association (CFA) represents all safety ranks in the Fire Department except for the Fire Chief. The current Memorandum of Understanding (MOU) between the City and CFA expired June 30, 2017. Pursuant to the MMBA, the City began negotiations with the CFA for a successor MOU. After meeting and conferring in good faith the City has reached agreement with CFA for a new MOU that will expire on June 30, 2020.
Terms of New Memorandum of Understanding
1. Medical Allowance: Effective the first full pay period following March 21, 2018, the City’s maximum contribution toward medical coverage will be $1,563.67 per month for employee plus two or more dependents coverage, $1,202.83 per month for employee plus one dependent coverage, and $601.42 per month for employee only coverage.
2. Tier II & Tier III Medical Difference: Effective the first full pay period following March 21, 2018, the maximum Medical Difference will be $950 per month based on level coverage elected.
3. Medical Opt-out: Effective the first full pay period following March 21, 2018, the maximum benefit for employees opting out of medical coverage will be $1,000 per month for employee plus two or more dependent coverage, $750 per month for employee plus one dependent coverage, and $450 per month for employee only coverage.
4. New Tier IV: Effective March 21, 2018, the medical allowance for employees hired on or after March 21, 2018 will be $946.92 per month for employee plus two or more dependent coverage, $946.92 for employee plus one dependent coverage, and $473.46 per month for employee only coverage. After a Tier IV employee has either been employed with the City for 5 years or, if the Tier IV employee is a Classic CalPERS Member, has at least 5 years of combined employment as a sworn firefighter with the City or some other organization, the employee’s medical allowance will increase to the same amount as Tier I, II & III Employees ( $1,563.67 per month for employee plus two or more dependents coverage, $1,202.83 per month for employee plus one dependent coverage, and $601.42 per month for employee only coverage) and the employee will be entitled to Medical Difference up to a maximum of $950.00 per month based on level of coverage elected. The retirement health savings benefit will be $2,500 per year for Tier IV Employees, rather than $5,000 per year provided to Tier II and III Employees.
5. Flex Spending Allowance: Eliminate flexible benefit allowance for the Tier I Battalion Chief. The flexible benefit allowance was eliminated for all other CFA Members (other than Tier I Deputy Fire Chief, in June 2013). Additionally, the lifetime flexible benefit allowance provided to Tier I Battalion Chiefs upon retirement will be eliminated.
6. Special Compensation: Effective the first full pay period following March 21, 2018, the following special compensation benefits will be converted from a percentage to a flat dollar amount based on unit average as follows:
A. HazMat Assignment Pay - $5,699 per year
B. Paramedic CQI Coordinator - $5,980 per year
C. Secondary Paramedic - $5,345 per year
D. Secondary Paramedic Acting as Primary Paramedic - additional $2.58 per hour
E. Bilingual Pay - $3,775 per year
7. New Classifications and Positions Series:
Effective the first full pay period following March 21, 2018, the following classifications will be created:
• Firefighter/Paramedic - Pay range and steps equal to Fire Engineer, which is 12.5% above current range and step for Firefighter. All Primary Paramedics will be assigned to the Firefighter/Paramedic classification. The 12.5% Primary Paramedic Pay will be eliminated.
• 40-Hour (for rank of Fire Captain, Fire Engineer, Firefighter, and Firefighter/Paramedic) - Pay range and steps established at 15% (30 steps on the salary grid) above the current range and steps for each rank. The 15% 40-Hour Assignment Pay will be eliminated, except for Acting 40-Hour positions, which assignments will not exceed 12 weeks.
• Firefighter Trainee and Firefighter/Paramedic Trainee - Pay range and steps equal to Firefighter and Firefighter/Paramedic, respectively.
Additionally, the following position series will be created:
• Firefighter - This position series will include Firefighter Trainee, Firefighter and 40-Hour Firefighter
• Firefighter/Paramedic Position Series - This position series will include Firefighter/Paramedic Trainee, Firefighter/Paramedic and 40-Hour Firefighter/Paramedic
• Fire Engineer - This position series will include Fire Engineer and 40-Hour Fire Engineer
• Fire Captain - This position series will include Fire Captain and 40-Hour Fire Captain
The above positions series were established to ensure that the Fire Department can continue to use the same method that it currently uses to assign members to these new classifications (i.e., without the merit/competitive system) while still complying with the City’s Personnel Classification policy. According to the City’s Personnel Classification policy (Policy 01400.801), Section 4.2(B)(6), the City Manager has the authority to approve promotions to a higher-level position in a Position Series provided there are sufficient budgeted funds, the employee meets the minimum qualifications for the higher position and the employee is substantially performing the duties of the higher level position satisfactorily.
8. Tuition Reimbursement: Education Plans approved after March 21, 2018 will be subject to a maximum amount of $2,500 per employee per fiscal year and a lifetime maximum amount of $10,000 per employee. The fiscal year maximum and lifetime maximum will not apply to California State Fire Marshal classes and California Incident Command Certification System classes. Associates Degrees will be reimbursable under the tuition program and will be subject to the fiscal year maximum and lifetime maximum.
9. Annual Leave Use: The “buddy” system will be eliminated by the deletion of language that requires CFA members to use a minimum number of annual leave hours per year (96 hours for 56-hour employees and 40 hours for 40-hour employees).
10. Annual Leave Buy Back: Effective March 21, 2018, annual leave buy back will not include Acting Pay, Hazardous Materials Assignment Pay, Standby Pay, Bilingual Pay, Certificate Pay, Uniform Pay, Working Out of Class Pay, Secondary Paramedic Pay, or Paramedic CQI Coordinator Pay.
11. Annual Leave & Longevity Pay: Effective the first full pay period following March 21, 2018, in exchange for the elimination of deferred compensation match and the flexible benefit allowance, the Tier I Battalion Chief longevity benefit for 20 years of service will be increased from 3.5% to 5% of base salary. This will realign the benefit provided to Tier I Battalion Chiefs with the existing longevity benefit provided to all other CFA Members (other than Tier I Deputy Fire).
12. Cost of Living Adjustment: Effective the first full pay period following March 21, 2018, the base rate for unit members will be increased by approximately two percent (2%) by moving each employee’s base pay four steps on the City’s salary grid.
13. Overtime for 40-Hour Positions: Language has been added to clarify that a 40-Hour Fire Captain, 40-Hour Fire Engineer, 40-Hour Firefighter, 40-Hour Firefighter/Paramedic, as well as an Acting 40-Hour Fire Captain, Acting 40-Hour Fire Engineer, Acting 40-Hour Firefighter and Acting 40-Hour Firefighter/Paramedic, who works overtime in a suppression capacity will not be compensated at the rate of pay for the 40-Hour position. Because the 40-Hour positions are now new classifications with their own salary ranges on the City’s Position Library and Compensation Plan that includes the former 15% assignment pay, the overtime rate for the 40-Hour employee working overtime in a suppression capacity needs to be calculated in a manner that excludes the 15% assignment pay. As such, the overtime rate for 40-Hour positions working overtime in a suppression capacity will be based upon 1.5 times the equivalent compensation step that the employee would be at for the 56-hour position (i.e., Fire Captain) that corresponds to the employee’s 40-hour position (i.e., 40-Hour Fire Captain), which equivalent step is determined by moving the employee’s base rate of pay as a 40-Hour employee thirty (30) steps down on the City’s salary grid.
14. Elimination of Deferred Compensation Match: Effective the first full pay period following March 21, 2018, the deferred compensation match benefit (up to $1,900 per year) is eliminated for the Tier I Battalion Chief.
15.Lay-off Procedures: Incorporates the newly established Firefighter Trainee, Firefighter/Paramedic Trainee, Firefighter/Paramedic, 40-hour Firefighter/Paramedic, 40-hour Firefighter, 40-hour Fire Engineer, 40-hour Fire Captain, Battalion Chiefs and Deputy Fire Chief positions in the list of employees who will be considered one job classification for purposes of lay-off procedures.
16. Promotion Policy: Fire Captains promoted to the position of Battalion Chief and Battalion Chiefs promoted to Deputy Fire Chief are assured a salary increase of 10% above base salary received by the employee prior to the promotion. When a Firefighter/Paramedic is promoted to the position of Fire Engineer the employee is assured a salary increase of 5% above the base salary received by the employee prior to promotion.
17. Acting Pay: For the Acting Fire Engineer position, the position of Firefighter/Paramedic was added as eligible positions that may be assigned to act in the capacity of Fire Engineer and receive the corresponding acting pay. Acting 40-Hour positions have also been added to allow for temporary assignments into 40-Hour positions.
18. Document Clean-Up: All provisions of the previously agreed to side letters have been incorporated. Language that was no longer relevant and applicable was removed.
Position Library
State regulations for public employers require disclosure of position classifications and corresponding compensation. In an effort to ensure compliance, and for even greater transparency, the City Council has previously adopted and updated the Position Library and Compensation Plan, a document which includes a list of all authorized employment positions for the City and their corresponding compensation ranges (“Plan”).
The Plan provides added organizational efficiency and permits departments to continue streamlining operations without impacting services levels. Additionally, it allows members of the public to see what any given position, even those not currently filled, would be paid. To this end, it is important to note that this document is strictly a resource document of available employment positions, as the positions listed will not necessarily be budgeted or funded in any given fiscal year. A current list of full time budgeted positions can be located on the City’s website.
Revisions to the Plan are highlighted on the attached redline version, with the highlight colors varying based on the reason for the change. Revisions are being requested to incorporate compensation range adjustments (green), added positions (yellow), and footnote updates (orange).
With another state-mandated minimum wage increase which took effect January 1, 2018, all staff earning less than the new minimum wage of $11 per hour were increased to comply. The increase closed the gap again between minimally skilled positions and those positions with certifications and experience requirements. The Lifeguard, Water Safety Instructor, and Pool Manager positions are being increased by 10 steps. Historically, aquatics positions have been difficult to fill. Most cities struggle to hire sufficient staff to offer a robust summer aquatics program. To attract and retain staff, and to remain competitive as compared to surrounding Cities, the compensation ranges for Lifeguard, Water Safety Instructor, and Pool Manager are being increased as noted above. Additionally, the Library & Recreation Leader II/III positions are being increased by 10 steps and the Park Maintenance II position is being increased by 3 steps to address the compaction created by the minimum wage increase.
The Recreation Specialist position is being increased 20 steps to be consistent with the level of the Pool Manager compensation range. The Recreation Services Manager is being reduced by 16 steps to be a level consistent with the Utilities Project Manager and the DWP Customer Care Manager. The Deputy Chief Information Officer is being increased by 31 steps consistent with the Deputy Fire Chief compensation range. The Network Analyst is being increased by 23 steps to realign the compensation range with the newly created position series, which now includes the Junior Network Analyst and Network Administrator positions. As a result of a reorganization in the Fire Prevention Division, the Fire Prevention Assistant is being increased by 32 steps, the Deputy Fire Marshal is being increased by 8 steps, and the Fire Marshal is being increased by 18 steps. Finally, the Business Manager position is being decreased by 28 steps in-line with the Operations Manager compensation range.
Footnote “D” addressing the minimum wage increase that went into effect on January 1, 2018 is being deleted, resulting in existing Footnote “E” retitled to Footnote “D” and Footnote “F” retitled to Footnote “E”. A new Footnote “F” is being included to indicate that employees who obtain their benefits from CFA on or after March 21, 2018 are entitled to a Step that is four (4) steps higher than noted in the Position Library and Compensation Plan. Finally, a new Footnote “G” is being included to address temporary employees performing overflow work consistent with the rules addressing employment after retirement in Government Code 21224.
Position changes have been incorporated to add new or amended classifications due to creating new positions or creating position series which allow the City to hire at a journey level or below and also create growth for employees into positions which require added experience and accountability at each level.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
The implementation of the agreement with CFA will result in an estimated savings of $1.9 million over the term of the contract. The estimated savings were calculated using the most recent data from the PERS actuarial report (June 30, 2016), projected 6% growth in future health premiums, and employee health plan elections made for calendar year 2018. All positions in the CFA group are budgeted in the General Fund. The funding for the part-time changes to address the compaction issues is estimated to be $10,000 through the remainder of the fiscal year. The amount will be transferred from existing funds in the General Government budget to the respective departments, within the General Fund.
CFA Contract:
|
FY 2017-18 Pro-rated |
($187,140) |
|
FY 2018-19 |
($748,555) |
|
FY 2019-20 |
($971,355) |
|
Total |
($1,907,050) |
|
GENERAL FUND |
|
|
Budget Workshop May 24, 2017 - Estimated Revenue Over Expenditures |
($2,172,529) |
|
Previously approved budget adjustments (net) |
413,542 |
|
Mid-Year Revised Revenue Projections |
804,199 |
|
Current Estimated Revenue Over Expenditures |
(954,788) |
|
CFA Agreement - Estimated FY 2017-18 Savings |
187,140 |
|
Transfer from General Government - Part Time Position Changes (Net $0) |
0 |
|
Estimated Amount from Budget Balancing Measures Reserve |
($767,648) |
|
|
|
|
Budget Balancing Measures Reserve - Estimated for 07/01/17 (Updated) |
$28,945,252 |
|
Use of Budget Balancing Measures Reserve - 12/20/17 |
(8,300,000) |
|
Estimated Use of Budget Balancing Measures Reserve FY 2017-18 |
(767,648) |
|
Budget Balancing Measures Reserve - Estimated Balance 06/30/18 |
$19,877,604 |
ENVIRONMENTAL ANALYSIS:
Environmental review is not required. The proposed actions are not a project under the California Environmental Quality Act.
PREPARED BY: EDELIA EVELAND, HUMAN RESOURCES MANAGER
REVIEWED BY: DEAN DERLETH, CITY ATTORNEY
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER
Attachments:
Corona Firefighters Association Memorandum of Understanding (Redline)
Corona Firefighters Association Memorandum of Understanding (Clean)
City of Corona Position Library and Compensation Plan (Redline)
Resolution No. 2018-011 approving the City of Corona Position Library and Compensation Plan