Marcella Marlowe, Ph.D., Assistant City Manager

Transcription

1 Date: December 16, 2014 STAFF REPORT Human Resources Office To: From: Subject: Steven A. Preston, FAICP, City Manager Marcella Marlowe, Ph.D., Assistant City Manager Adoption of MOUs with the Police Management Group and the Firefighters Association, and Resolution No , approving a compensation plan, for unrepresented employees SUMMARY The City Council will consider adoption of a Memorandum of Understanding with the Police Management Group, a Memorandum of Understanding with the Firefighters Association, and Resolution No for unrepresented employees, all approving compensation programs and working conditions for associated employees and employee groups through June 30, Background The City of San Gabriel has four employee associations: the Police Officers Association, the Police Management Group, the Firefighters Association, and the Fire Management Group. A Memorandum of Understanding (MOU) contains provisions for these groups related to compensation and working conditions. The last MOU with each group expired on June 30, The compensation resolution for unrepresented employees serves to establish (1) compensation, benefits, and any procedures, rights, or protections that are of particular interest, (2) items that are not already a part of the existing Civil Service Rules or current policies, and/or (3) items that revise existing provisions. Please note that the associations MOU terms do not impact or apply to unrepresented employees and, as such, another resolution must be approved in order for changes to occur. As a result, the City Council is given the opportunity to consider compensation for unrepresented employees on a regular basis. The City Council is also the approving authority for adding full-time positions to the budget, as needed, and approving any classification and/or salary alterations, as needed. At this point, agreement exists with the Police Management Group (PMG), Firefighters Association (FFA), and unrepresented employees, who hold informal conversations to stay informed and engaged in the organization. We still do not have agreements with the Police Officers Association (POA) or the Fire Management Group (FMG).

2 Adoption of PMG and FFA MOUs and Resolution No Page 2 Discussion The provisions of the compensation program set forth in all three documents are consistent. In sum, they reflect the following concepts: Term of Three (3) Years. The MOUs have a term of June 28, 2014 through June 30, 2017 and the unrepresented employees resolution also has provisions to take the City through June 30, Having a long-term agreement provides for relative stability and offers an opportunity to continue to focus on other critical matters, such as infrastructure. Compensation Adjustments. The documents provide for a 5% base salary increase over the three-year term of the agreements, as follows: Year 1 June 28, 2014 June 26, % Year 2 June 27, 2015 June 24, % Year 3 June 25, 2016 June 30, % Market Equity Adjustments. Each negotiation cycle, the City conducts compensation surveys of 10 organizations (Alhambra, Arcadia, El Monte, El Segundo, Glendora, La Verne, Monrovia, Montebello, Monterey Park, and West Covina), agreed to by the four represented associations years ago. This year, the data yielded by that process reflected that many of our classifications surveyed lower than the median of these 10 cities. As a consequence, the attached documents also contain additional compensation adjustments, effective June 28, 2014, for classifications and associated classifications as follows: At or above the median Between 0%-5% below the median Between 5%-10% below the median More than 10% below the median No adjustment No adjustment 1.5% adjustment to base salary 5% adjustment to base salary Cap on Health Insurance. City employees receive a monthly dollar amount to use to purchase health, dental, and vision insurance. Some time ago, it was negotiated that the amount would increase every year automatically, utilizing a set formula that has resulted in an increase of approximately $1200 per year per employee every year, for the last five years alone. As a result of that automatic escalator, every full-time employee currently receives $1568 per month toward the purchase of insurance; any unused amount is returned to the employee as taxable income. If the escalator formula remained in place, the amount was set to increase in 2015 to approximately $1658 per month, approximately $1100 annually more per employee. Instead, these agreements contain a provision removing the formula and capping the contribution amount at the existing $1568 per month per employee. Vacation Buyback. Many of our employees carry balances of vacation. Although we encourage all of our staff to utilize their accrued leave to refresh and rejuvenate, it isn t always possible, and unused accrued vacation time is a financial liability for the City that gets more expensive as time goes on. Therefore, to mitigate the City s financial liability, the agreements allow for employees to cash out one week of unused accrued vacation time each year of the three-year term. * * *

3 Adoption of PMG and FFA MOUs and Resolution No Page 3 There are other provisions that, for the purposes of this report and the employees covered in this report, affect only unrepresented employees and will take effect on January 10, 2015, unless otherwise noted. Executive Team Incentive Pay. In 2007, the Executive Team began receiving an amount equal to 96 hours of pay annually to compensate for the unique nature of their jobs, paid separately from base salary. In order to improve transparency in pay, this amount will be consolidated into the base pay ranges for these classifications instead of being paid as a separate item. Because it represents compensation already being paid, this adjustment is cost-neutral. Executive Team Severance Compensation. Unlike all other employees in the organization, Executive Team members are at will and serve at the pleasure of the City Manager. In order to provide stability to City leadership and assist the organization when involuntary separations are necessary, Resolution No provides for up to six (6) months of severance pay, subject to certain parameters, for Executive Team members, to be administered by, and at the discretion of, the City Manager. FLSA Status Designation. The Fair Labor Standards Act (FLSA) governs the working hours of employees. Typically, unrepresented employees are presumed to be considered non-exempt and eligible to be compensated at a rate of one-and-one-half for any actual time worked over forty (40) hours in a workweek. However, the FLSA permits agencies to designate some classifications as exempt from overtime, provided that they meet certain tests. Until now, the City has only exercised this prerogative with regard to Executive Team members and the Police Captain; however, a significant number of other classifications clearly meet the FLSA definitions of exempt. As a result, the City is designating an additional 23 classifications as exempt, essentially meaning that employees within those classifications will no longer be eligible to receive either paid overtime or compensatory time off for time worked in excess of forty (40) in a workweek. Although the classifications are detailed specifically in Resolution No , they include all non-sworn Management classifications (at this time), almost all non-sworn Supervisory/Professional classifications, and one Technical classification. Internal Equity Adjustments. We recognize that it is difficult to establish a perfect compensation system. However, many years without a fully functioning human resources department, compounded by a generation of piecemeal compensation decisions, have left the City s classification and compensation system in an unfortunate condition, where similarly situated classifications are not compensated similarly and where there are significant and inappropriately large gaps between classifications that are in the same series or job family. We have made strides in this area over the previous few years, through this meet and confer process, the reclassification process, and several departmental reorganizations, all of which have been intended to improve our organizational effectiveness, recruiting competitiveness, and retention success. While this still does not perfect our system, Resolution No represents a further step on our path. We recommend salary changes for 24 classifications, affecting 28 people (considering vacancies and multiple positions in some classifications): Accountant Assistant City Clerk Assistant Civil Engineer* Associate Civil Engineer Management Analyst Mission Playhouse Director Neighborhood Improvement Services (NIS) Manager Park Maintenance Leadperson

4 Adoption of PMG and FFA MOUs and Resolution No Page 4 Chief City Clerk Community Services Manager Field Operations Manager Finance Clerk II Financial Services Manager Fleet Manager Human Resources Analyst Maintenance Leadperson Parks & Facilities Manager Police Records Specialist Police Records Supervisor Principal Civil Engineer Recreation Supervisor Revenue Collection Administrator Senior Civil Engineer Stage Manager We recommend title changes only for five (5) classifications, affecting nine (9) full time employees: Administrative Assistant I to Administrative Assistant II Administrative Assistant II to Executive Assistant Executive Assistant to Executive Assistant to the City Manager Office Assistant to Administrative Assistant I Permit Technician to Permit Center Coordinator Finally, we recommend both title and salary changes for four (4) classifications, affecting one (1) employee: City Planner to Senior Planner* Facility Manager to Mission Playhouse Manager Building Division Manager to Building Official Economic Development & Planning Manager to Economic Development Manager* * Please note: All salary adjustments are increases, with the exception of three (3) classifications that reflect salary range decreases, all in classifications that are currently vacant. The total annual cost of these salary changes is approximately $170,000; however, no allocation from the general fund is necessary. The cost savings from the changes in exemption status noted above (i.e. the elimination of paid overtime) will cover the cost of these expenditures. Administrative Leave. Administrative leave is time off typically provided to FLSA Exempt employees in recognition of the sometimes unpredictable nature of the job. In San Gabriel, it is credited to employees annually and, if not utilized by the end of the year, is forfeited; it does not carry over and does not therefore carry an implicit cost liability. The City recognizes that the current allocation of Administrative Leave to classifications is haphazard, uneven among otherwise parallel classifications, and below industry norm significantly below, in some cases. Therefore, the administrative leave distribution policy will be clarified for unrepresented employees, as follows: Executive Team Management 60 hours annually (currently 40) 40 hours annually (currently varies between 0-40 hours) Supervisory/Professional and Technical (FLSA Exempt Employees only) 32 hours annually (currently varies between 0-40 hours)

5 Adoption of PMG and FFA MOUs and Resolution No Page 5 Any remaining classifications that currently receive administrative leave are remaining non-exempt and, effective December 31, 2014, will no longer be eligible for administrative leave. However, employees hired into those classifications prior to December 16, 2014, will still receive a one-time allocation of administrative leave for 2015 on January 1, Police Dispatcher Training Bonus. The training curriculum for new Dispatchers and Police Assistants is rigorous, highly regimented, and requires a significant amount of time, attention, and energy from the Dispatcher performing the training. The 5% training bonus will only be paid for actual time spent by the Dispatcher in a training capacity, will only apply to one Dispatcher on a given shift, and not even necessarily be paid for the entire shift. Based on the number of training hours required, we estimate the maximum annual cost for this program to be $4800. No additional allocation from the General Fund is necessary; the cost savings from the changes in exemption status noted above (i.e. the elimination of paid overtime) will cover the cost of this expenditure. Work Shoe/Boot Safety Program. Employees in the Public Works, Mission Playhouse, and Community Development Departments who work in precarious terrain currently are eligible to receive a maximum of $100 per year as a reimbursement for the purchase of appropriate safety shoes/boots; this reimbursement may only be utilized once per fiscal year. Effective July 1, 2015, the maximum reimbursement amount will increase by $100 to a total of $200. Based on the number of positions currently eligible for this reimbursement, we estimate the maximum annual cost increase to be $2800. No additional allocation from the General Fund is necessary; the cost savings from the changes in exemption status noted above (i.e. the elimination of paid overtime) will cover the cost of this expenditure. Uniform Allowance. Non-sworn personnel in the Police and Fire Departments are required to comply with uniform standards, including purchasing and maintaining their own uniforms. They currently receive an annual allowance of $600, but we estimate that the costs associated with those requirements are closer to approximately $1500. Resolution No increases the annual uniform allowance by $200; based on the number of positions currently eligible for this benefit (13 in Police, 1 in Fire), we estimate the maximum annual cost increase to be $2800. No additional allocation from the General Fund is necessary; the cost savings from the changes in exemption status noted above (i.e. the elimination of paid overtime) will cover the cost of this expenditure. Recommendation Staff recommends that the City Council: 1. Adopt the Memorandum of Understanding (MOU) with the Police Management Group (PMG), effective June 28, 2014 June 30, 2017; 2. Adopt the Memorandum of Understanding (MOU) with the Firefighters Associations (FFA), effective June 28, 2014 June 30, 2017; and 3. Adopt Resolution No , amending Resolution No and approving a compensation program for unrepresented employees, effective June 28, 2014, January 10, 2015, June 27, 2015, June 25, 2016; and 4. Direct Finance staff to increase each department s operating budget to provide funding for approved changes to compensation. Attachments 1. Police Management Group Memorandum of Understanding 2. Firefighters Association Memorandum of Understanding 3. Resolution No , ESTABLISHING A COMPENSATION PROGRAM FOR UNREPRESENTED EMPLOYEES

6 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SAN GABRIEL AND SAN GABRIEL POLICE MANAGEMENT GROUP PREAMBLE Pursuant to the California Government Code Sections 3500, et. seq., representatives of the City of San Gabriel, a municipal corporation, hereinafter referred to as the "City," have met and conferred with representatives of the San Gabriel Police Management Group, hereinafter referred to as the "Group", and have reached a Memorandum of Understanding; the provisions of which are contained herein. It is recommended that the City Council of the City of San Gabriel approve said Memorandum of Understanding and take such additional actions as may be necessary to implement the provisions thereof. ARTICLE 1. FULL UNDERSTANDING, MODIFICATION AND WAIVER The parties acknowledge that during the negotiations which resulted in this MOU, each had the full right and adequate opportunity to make demands and proposals with respect to any subject or matter within the scope of representation, and that the understandings arrived at after the exercise of that right are set forth in this MOU for its duration. If the City or Group desires to change any matters in the scope of representation, the representatives of the Group shall have an opportunity to meet and confer with the representatives of the City concerning the proposed changes. All benefits enjoyed by the employees at the present time, which are not included in, nor specifically changed by this MOU, shall remain in full force and effect during the term of this MOU. ARTICLE 2. PROVISIONS OF LAW It is understood and agreed that this MOU is subject to all current and future applicable Federal and State laws and regulations. If any part or provision of this MOU is in conflict or inconsistent with such applicable provisions of those Federal or State enactments, or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provisions shall be superseded and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected thereby. If any substantive part or provision of this MOU is suspended or superseded, the parties agree to reopen negotiations regarding the suspended or superseded part or provision. The parties hereto agree to refrain from initiating any legal action that would invalidate Articles of this MOU. ARTICLE 3. RECOGNITION The parties hereto agree that the Group is hereby recognized as the exclusive bargaining representative for those employees with the job classification of Police Sergeant and Police Lieutenant. ARTICLE 4. TERM This MOU, when approved and ratified, shall be effective June 28, 2014 and shall remain in effect until June 30,

7 ARTICLE 5. SCOPE OF REPRESENTATION It is mutually recognized between the City and the Group that the scope of representation of the Group shall include, but not be limited to: wages, hours, and other terms and conditions of employment. However, the scope of representation shall not include consideration of the merits, necessity or organization of any service or activity provided by law. Whenever the term "employee" is used in this agreement, the same shall mean and refer to individuals employed in job classifications represented by the Group. ARTICLE 6. MANAGEMENT RIGHTS All management rights shall remain vested exclusively with the City except those which are clearly and expressly limited or eliminated by this MOU. It is recognized by way of illustration that such management rights include, but are not limited to: a. The right to determine the mission of the City, its advisory boards, and commissions and work units. b. The right of full and exclusive control of the management of the City; supervision of all operations; determination of the methods, means, and personnel required to perform any and all work; and the composition, assignment, direction, location, and determination of the size and mission of the workforce. c. The right to determine the work to be done by the employees, including establishment of levels of service and staffing patterns. d. The right to change or introduce new or improved operations, methods, means, equipment, or facilities. e. The right to prescribe qualifications for employment and determine whether they are met; to hire, set and enforce performance standards, and promote employees; to establish, revise, and enforce work rules; to schedule work time; to transfer, reassign, or layoff employees; to determine the content of job classifications; to suspend, reduce in step, demote, discharge, or otherwise discipline employees. The City shall extend an offer to the Group to meet and confer on the impact on wages, hours, and other terms and conditions of employment of decisions made in the exercise of the preceding rights. ARTICLE 7. EMPLOYEE RIGHTS City and Group agree not to discriminate, interfere with, intimidate, restrain, or coerce, any employee because of the exercise of rights protected by this MOU, section 3506 of the California Government Code, and as may be established by judicial precedents. ARTICLE 8. WORK DISRUPTION The parties agree that no work disruption of any kind shall be caused or sanctioned by the Group during the term of any agreement entered into by the parties hereto. Work disruptions include but are not limited to: strikes, sit-down, sick-out, stay-down, speed-up or slowdown in any operations of the Department, curtailment of work, or disruption or interference with the operations of the City. The Group shall discourage any such work disruptions, and shall make positive efforts to effect the cessation of such activities. 2

8 The participation by an employee in conduct which disrupts or detracts from the operation of the City shall be grounds for disciplinary action. The parties agree that, in the absence of violations of this MOU by the Group or members thereof, the City shall institute no lockout of employees during the term of this agreement. ARTICLE 9. APPROVAL It is understood that this Memorandum of Understanding hereafter referred to as "MOU," has been presented to the members of the Group and ratified for submission to the City Council for the Council's consideration/action. It is further understood that this MOU will not be effective without the approval of the City Council. ARTICLE 10. COMPENSATION Salary Ranges: The base step ranges shown in Exhibit "A," attached hereto, shall be applicable for the employee's base salary for each classification to be effective as noted in said Exhibit. Effective June 28, 2014, employees represented by the Group shall receive a total base salary increase of four and one-half percent (4.5%), comprised of a three percent (3%) base increase and a one and onehalf percent (1.5%) external equity adjustment. Effective June 27, 2015, employees represented by the Group shall receive a base salary increase of one percent (1%). Effective June 25, 2016, employees represented by the Group shall receive a base salary increase of one percent (1%). ARTICLE 11. UNIFORM ALLOWANCE The uniform allowance shall be to $1, The uniform shall be distributed in a single, separate check in November of each year. The reason for the November distribution is that the uniform allowance is not "earned" until there has been twelve (12) consecutive months of employment immediately prior to November. For example, if an individual separates from employment during any of the twelve (12) months proceeding November of any year, said individual shall not be entitled to any uniform allowance distribution upon separation. Accordingly, uniform allowance is not "earned" unless the affected employee has been employed for twelve (12) consecutive months prior to November of each year. Therefore, an individual hired by the City shall be ineligible for any uniform allowance distribution until on a November date, that employee has served twelve (12) consecutive months as a City employee. The City cannot and does not represent that CalPERS shall include said uniform allowance payment as compensation for purposes of benefit determination. CalPERS shall make the determination as to inclusion of said uniform allowance as compensation. ARTICLE 12. SICK LEAVE After the completion of one year of service, an employee has the option of being paid for ½ of credited but unused sick leave at his/her then current rate of pay. Such option applies to the leave credited but unused during the 12 month period ending on October 31 st of each year. Leave that is not paid off will remain in the employee's sick leave bank. Payment of unused sick leave shall be included in the 1 st paycheck in December. 3

9 ARTICLE 13. DEFERRED COMPENSATION PROGRAM Effective the first payroll period commencing on or after July 1, 2007, the City shall cease paying to the CalPERS Deferred Compensation 457 Program the 4% employer contribution for qualifying, full-time sworn unit employees. The City shall modify its plan documents to allow employees to borrow from their individual deferred compensation accounts. ARTICLE 14. EDUCATION REIMBURSEMENT The Salary and Benefit Policy, is amended to provide that education reimbursement costs may also include lodging costs at the POST rate of $84.00 per night (standard) and $ per night (in metropolitan areas as defined by POST). However, lodging may be authorized only in those circumstances where the training course is greater than fifty (50) miles from the San Gabriel Police Department, and where the affected officer demonstrates that said training course will not be offered within a fifty (50) mile distance during the three (3) months following the commencement date of the more distant training course. Anyone officer can utilize this lodging expenditure only one time in any fiscal year. This modification to the definition of reimbursable costs, does not alter pre-existing policies, practices and procedures regarding authorization both to attend training and to utilize available education reimbursement funds. ARTICLE 15. EDUCATION INCENTIVE Unit members having qualified for and been issued an Intermediate POST certificate, but being ineligible for and/or not having been issued a college degree, shall be paid an additional three percent (3%) of their established salary. Unit members having qualified for and been issued an Advanced POST certificate, but being ineligible for and/or not having been issued a college degree, shall be paid an additional five percent (5%) of their established salary. Unit members having qualified for and been issued a Supervisory POST certificate, but being ineligible for and/or not having been issued a college degree, shall be paid an additional six percent (6%) of their established salary. Further, a unit member with a BA or BS degree and a Supervisory POST certificate shall be paid an additional 9% of their established salary. These incentive amounts shall not be in addition to any other education incentive amounts for which a unit member is eligible. For example, a unit member with an AA degree and an Intermediate POST certificate presently is eligible for a four percent (4%) salary increase. Application of the above language shall not result in a unit member receiving seven percent (7%) of salary. Likewise, a unit member having a BA or BS degree and a Supervisory POST certificate shall not receive a 17% salary increase. ARTICLE 16. SHIFT SELECTION Bargaining unit members will be allowed to select their first shift of each year based on seniority; otherwise, they will continue the same shift rotation. Members assigned to the Patrol Division will be allowed to trade Platoon assignments with another member of the same rank by requesting and receiving written the approval of the Division Commander at 4

10 least 30 days prior to the beginning of shift rotation. The Department reserves the right to insert personnel into the rotation as necessary for training purposes which may cause existing personnel to be temporarily or pem1anently moved to a different platoon. The Department reserves the right to insert personnel into the rotation as necessitated by reassignments and promotions. The Department reserves the right to make platoon reassignments in the event of other necessities that might arise for the orderly functioning of the Department. ARTICLE 17. SUBPOENA NOTICE The City will make every reasonably effort to notify police personnel that they have been served with a subpoena to appear in court forty eight (48) hours prior to the scheduled court appearance. However, both parties recognize that there will be exceptions such as -the officer is on vacation and cannot easily be located, the subpoena was received after the forth eight (48) hour period, etc. ARTICLE 18. VACATION Police management employees shall be entitled to an increase in vacation leave as follows: 15 years 168 hours 16 years 176 hours 17 years 184 hours 18 years 192 hours 19 years hours In December 2014, during a window of not less than one calendar week, at the discretion and convenience of the Finance Department, an employee may voluntarily elect to be paid cash for up to maximum of forty (40) hours of accrued vacation. The cash pay out shall be paid on the December 31, 2014 payroll check. In the Fall of 2015, during a window of not less than one calendar week, at the discretion and convenience of the Finance Department, but not outside six (6) weeks of the selected paydate, an employee may voluntarily elect to be paid cash for up to maximum of forty (40) hours of accrued vacation. The cash pay out shall be paid on the second regular payroll check in November In the Fall of 2016, during a window of not less than one calendar week, at the discretion and convenience of the Finance Department, but not outside six (6) weeks of the selected paydate, an employee may voluntarily elect to be paid cash for up to maximum of forty (40) hours of accrued vacation. The cash pay out shall be paid on the second regular payroll check in November ARTICLE 19. RETIREMENT Employee Retirement Contribution Effective July 14, 2012, employees shall pay two-thirds (2/3) [i.e., six percent (6%)] of the required nine percent (9%) employee contribution on behalf of the employee to CalPERS. This payment shall be made on a pre-tax basis. Effective June 13, 2013, employees shall pay the entire portion of the required nine percent (9%) employee contribution on behalf of the employee to CalPERS. This payment shall be made on a pre-tax basis. 5

11 Retirement Formula As soon as approval is granted by CalPERS, the City shall implement a second tier retirement formula for those hired after the PERS contract Amendment: 50 Three-year average Post retirement survivor allowance Employees to pay 100% of the employee contribution Employees currently on payroll who are promoted to sworn positions in the Police Department shall retain their existing 50 formula. Employees who are hired from outside the organization shall be placed on the second tier formula. ARTICLE 20. FLEXIBLE BENEFIT PROGRAM The City will contribute $1568 per month to each employee through a Flexible Benefit Program in order to purchase basic medical, dental, and vision care benefits. Once the enrollment requirements of our insurance providers are met, the employee has the option to receive any unspent funds as taxable income. SAN GABRIEL POLICE MANAGEMENT GROUP CITY OF SAN GABRIEL Signature Date Signature Date 6

12 Exhibit A Effective June 28, 2014 A B C D E Police Lieutenant $8,725 $9,161 $9,619 $10,100 $10,605 Police Sergeant $6,958 $7,305 $7,671 $8,054 $8,457 Effective June 27, 2015 A B C D E Police Lieutenant $8,812 $9,253 $9,715 $10,201 $10,711 Police Sergeant $7,027 $7,379 $7,747 $8,135 $8,542 Effective June 25, 2016 A B C D E Police Lieutenant $8,900 $9,345 $9,812 $10,303 $10,818 Police Sergeant $7,097 $7,452 $7,825 $8,216 $8,627 7

13 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SAN GABRIEL AND SAN GABRIEL FIREFIGHTERS ASSOCIATION, LOCAL 2197 PREAMBLE Pursuant to the California Government Code Sections 3500, et. seq., representatives of the City of San Gabriel, a municipal corporation, hereinafter referred to as the "City", have met and conferred with representatives of the San Gabriel Firefighters Association, Local 2197, hereinafter referred to as the "Association", and have reached a Memorandum of Understanding; the provisions of which are contained herein. It is recommended that the City Council of the City of San Gabriel approve said Memorandum of Understanding and take such additional actions as may be necessary to implement the provisions thereof. ARTICLE 1. FULL UNDERSTANDING, MODIFICATION AND WAIVER The parties acknowledge that during the negotiations which resulted in this MOU each had the full right and adequate opportunity to make demands and proposals with respect to any subject or matter within the scope of representation, and that the understandings arrived at after the exercise of that right are set forth in this MOU for its duration, therefore constituting the complete and total agreement between the City and Association with respect to wages, hours, and other terms and conditions of employment. Any prior or existing MOU between the parties regarding any such matters are hereby superseded and terminated in their entirety. If the City desires to change any matters in the scope of representation, the representatives of the Association shall have an opportunity to meet and confer with the representatives of the City concerning the proposed changes. All benefits enjoyed by the employees at the present time, which are not included in, nor specifically changed by this MOU, shall remain in full force and effect during the term of this MOU. ARTICLE 2. PROVISIONS OF LAW It is understood and agreed that this MOU is subject to all current and future applicable Federal and State laws and regulations. If any part or provision of this MOU is in conflict or inconsistent with such applicable provisions of those Federal or State enactments, or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provisions shall be suspended and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected thereby. If any substantive part or provision of this MOU is suspended or superseded, the parties agree to reopen negotiations regarding the suspended or superseded part or provision. The parties hereto agree to refrain from initiating any legal action that would invalidate Articles of this MOU. ARTICLE 3. RECOGNITION The parties hereto agree that the Association is hereby recognized as the exclusive bargaining representative for those employees with the job classifications of Firefighter, Fire Engineer, and Fire Captain. 1

14 ARTICLE 4. TERM This MOU, when approved and ratified, shall be effective June 28, 2014 and shall remain in effect until June 30, ARTICLE 5. SCOPE OF REPRESENTATION It is mutually recognized between the City and the Association that the scope of representation of the Association shall include, but not be limited to: wages, hours, and other terms and conditions of employment. However, the scope of representation shall not include consideration of the merits, necessity or organization of any service or activity provided by law. Whenever the term "employee" is used in this agreement, the same shall mean and refer to individuals employed in job classifications represented by the Association. ARTICLE 6. PAYROLL DEDUCTION It is agreed that Association membership dues shall be deducted by the City from the pay warrant of each represented employee who files with the City a written authorization requesting that such deduction be made. Remittance of the aggregate amount of all membership dues deducted from the pay warrants of the employees shall be made to the Association within thirty (30) days after the conclusion of the month in which said membership dues were deducted. The City shall not be liable to the Association, employees, or any party by reason of the requirements of this Article for the remittance of any sum other than that constituting actual deductions made from employee wages. ARTICLE 7. MANAGEMENT RIGHTS All management rights shall remain vested exclusively with the City except those which are clearly and expressly limited or eliminated by this MOU. It is recognized by way of illustration that such management rights include, but are not limited to: a. The right to determine the mission of the City, its advisory boards, and commissions and work units. b. The right of full and exclusive control of the management of the City; supervision of all operations; determination of the methods, means, and personnel required to perform any and all work; and the composition, assignment, direction, location, and determination of the size and mission of the work force. c. The right to determine the work to be done by the employees, including establishment of levels of service and staffing patterns. d. The right to change or introduce new or improved operations, methods, means, equipment or facilities. e. The right to prescribe qualifications for employment and determine whether they are met; to hire, set and enforce performance standards, and promote employees; to establish, revise and enforce work rules; to schedule work time; to transfer, reassign, or layoff employees; to determine the 2

15 content of job classifications; to suspend, reduce in step, demote, discharge or otherwise discipline employees for cause; and, to otherwise maintain orderly, effective, efficient operations. The City shall extend an offer to the Association to meet and confer on the impact on wages, hours, and other terms and conditions of employment of decisions made in the exercise of the preceding rights. ARTICLE 8. EMPLOYEE RIGHTS The City and Association agree not to discriminate, interfere with, intimidate, restrain, or coerce, any employee because of the exercise of rights protected by this MOU, section 3506 of the California Government Code, and as may be established by judicial precedents. ARTICLE 9. WORK DISRUPTION The parties agree that no work disruption of any kind shall be caused or sanctioned by the Association during the term of any agreement entered into by the parties hereto. Work disruptions include but are not limited to: strikes, sit-down, sick-out, stay-down, speed-up or slowdown in any operations of the Department, curtailment of work, or disruption or interference with the operations of the City. The Association shall discourage any such work disruptions, and shall make positive efforts to effect the cessation of such activities. The participation by an employee in conduct, which disrupts or detracts from the operation of the City, shall be grounds for disciplinary action. The parties agree that, in the absence of violations of this MOU by the Association or members thereof, the City shall institute no lockout of employees during the term of this agreement. ARTICLE 10. APPROVAL It is understood that this Memorandum of Understanding hereafter referred to as, "MOU", has been presented to the members of the Association and ratified for submission to the City Council for the Council s consideration/action. It is further understood that this MOU will not be effective without the approval of the City Council. ARTICLE 11. COMPENSATION Section 1. Base Salaries Salary Ranges: The base step ranges shown in Exhibit A shall be applicable for the employee's base salary for each classification to be effective as noted in said Exhibit. Effective June 28, 2014, employees represented by the Association shall receive a total base salary increase of four and one-half percent (4.5%), comprised of a three percent (3%) base increase and a one and one-half percent (1.5%) external equity adjustment. Based on the agreed upon salary increase, employees represented by the association shall receive a retroactive salary adjustment ( retroactive pay ) to June 28,

16 Effective June 27, 2015, employees represented by the Association shall receive a base salary increase of one percent (1%). Effective June 25, 2016, employees represented by the Association shall receive a base salary increase of one percent (1%). Section 2. Special Pay Paramedic Premium Pay: When assigned to perform the full range of duties of a paramedic, an employee in the Firefighter class will receive a salary rate that is fifteen percent (15%) above his/her regular firefighter rate of pay. Fire Captains and Fire Engineers who are certified paramedics are required to maintain such certification and to perform paramedic duties as a regular part of their job. In recognition of these requirements the employee shall be paid an additional 5% of his/her regular rate of pay. Employees assigned to a 40 hour staff assignment may receive paramedic premium pay at the discretion of the Fire Chief. Bi-Annual Paramedic Re-certification Pay: After an employee has been certified as a Paramedic and is assigned to perform said duties, he/she shall be paid one hundred dollars ($100.00) for each subsequent re-certification. Recall Pay: When an employee working a 24-hour shift schedule is called in to work during his/her off duty hours he/she shall receive a minimum work time credit of four (4) hours. Such minimum shall not apply when the time worked constitutes an extension of the employee s regular shift or when the employee is required to begin his/her regular shift at other than the regular starting time. Ambulance Pay: Employees classified as Firefighters on July 1, 2001 and receiving the Ambulance Pay of 2.5% shall continue to receive said pay until they are promoted to any class above the rank of Firefighter, including but not limited to Fire Inspector, Fire Engineer, Fire Captain and Fire Division Chief. Additionally, for purposes of this provision, Firefighter/Paramedic shall be deemed a professional class. Education Pay: After two years of employment with the City, Firefighters, Fire Engineers and Fire Captains will be eligible for the following educational incentive program. Employees with a Fire Officer certification and 60 college units, approved by the Fire Chief, who are not receiving education incentive for a degree shall be paid an additional three percent (3%) of their established salaries. Employees with an A.A. or A.S. degree in Fire Service or an approved job related major shall be paid an additional three percent (3%) of their established salaries. Employees with a B.A. or B.S. degree in Fire Science or other approved job related major, shall be paid an additional six percent (6%) of their established salaries. Employees with a Masters degree in Fire Science or other approved job related major, shall be paid an additional eight percent (8%) of their established salaries. 4

17 Bilingual Pay: The City shall pay one hundred ($100.00) per month to employees who can demonstrate a skill in Cantonese, Mandarin, Spanish or Vietnamese at the conversational level, or another language, which the Department Head and City Manager have approved as being needed in the provision of safety services. In order to receive bilingual pay, the employee shall satisfactorily complete a conversational fluency test in the language for which pay is requested. Section 3. Acting Assignments/Pay Employees assigned to perform duties allocated to a position in a higher classification shall receive acting pay in accordance with the following: 1. Time worked in an acting capacity must be for a period of at least eight (8) consecutive working hours. 2. The work assumed must be that of a budgeted position performed in the absence of the regular incumbent. 3. At least ninety percent (90%) of the employee's time must be spent in the performance of duties appropriate to the higher-level class. 4. Credit shall not be given for any acting capacity work that is referenced in a class specification as being appropriate to the employee's class. 5. Acting capacity work must be assigned in writing by someone having the authority to do so. 6. Employees in an acting capacity shall receive the appropriate step in the salary range assigned the position being filled which ensures no less than a five percent (5) increase above the employee s current monthly earnings, (including any premium pays). Acting pay shall begin on the 8th consecutive working hour of an acting assignment and shall be retroactive to the first working hour. 7. Employees who request temporary placement in a higher level position for training purposes or are participating in a training program involving work in an acting capacity shall be ineligible for acting pay. 8. Acting capacity assignments shall be for a maximum period of ninety (90) calendar days unless otherwise approved by the City Manager. 9. Employees assigned to an acting position must meet at least the desirable qualifications of the class to which the position is allocated. Section 4. USAR Pay With the approval of the Fire Chief employees qualified at the USAR Heavy Equipment level shall be paid $50/month. The Fire Chief shall determine the number of employees who will receive the pay subject to a maximum of 6 employees per shift. Section 5. Paramedic Coordinator There shall be created the assignment (not a classified position) of Paramedic Coordinator. The assignment shall be compensated at 3% of the individual s unadjusted base salary. Staffing of the assignment shall be made in the sole discretion of the Fire Chief and for a duration in the sole discretion of the Fire Chief. However, every two years or earlier as may be solely deemed appropriate by the Fire Chief, letters of interest in the assignment shall be solicited and given consideration by the Fire Chief. The 5

18 solicitation and consideration of letters of interest shall not be a mandate that the incumbent in the assignment be replaced. The incumbent shall have no property rights in continuing assignment and shall have no method of contesting the manner in which the Fire Chief exercises his staffing discretion. The Fire Chief shall have sole discretion to abolish the assignment if and when the duties of the assignment are undertaken through cooperative relationships with other jurisdictions, or when in other circumstances, in the sole discretion of the Fire Chief, the need for the assignment is deemed to be of nominal value. The duties of the Paramedic Coordinator assignment are subject to variation in the sole discretion of the Fire Chief. In general, an exemplar of typical duties are: oversight of the EMT-1 and Paramedic programs and provision of related training, ensuring compliance with county and state certification requirements for provision of emergency medical services, investigating both internally and externally-generated service complaints and other related duties. Section 6. Longevity Pay Each eligible public safety employee shall receive longevity pay in accordance with the following schedule. Eligibility for each tier commences with the start of the initial tier level, for example, the start of the fifth year of employment. Years of service are defined as cumulative years of service in the employ of the City of San Gabriel. 5-9 years of service $500 per year years of service $750 per year 15 or more years of service $1000 per year Longevity pay shall be paid on a bi-weekly pay period basis. Section 7. Deferred Compensation The City shall modify its plan documents to allow employees to borrow from their individual deferred compensation accounts. Section 8. Uniform Allowance and Holiday Pay Reconsideration The parties have agreed to the method of uniform and holiday pay distribution as described herein, in order to increase the probabilities of CalPERS considering such distributions to be compensation for purposes of CalPERS computation of retirement benefits. The City does not and cannot make any representations as to whether or not CalPERS accepts the parties agreed upon method of uniform and/or holiday pay distribution to be compensation for CalPERS benefit determination purposes. Nonetheless, if during the term of this MOU, the Association seeks and is in possession of information from CalPERS to the effect that a different mode of uniform and/or holiday pay distribution than that which has been agreed upon by the parties, shall result in a CalPERS determination that the alternate distribution method is compensation, the City shall at the Association s request, reopen the meet and 6

19 confer process solely as regards the issue of method of distribution (lump sum versus bi-weekly), and as to no other issue. Section 9. Deputy Fire Marshal Assignment The parties have agreed to requirements involving the Deputy Fire Marshall Position which is attached and incorporated herein as Exhibit B. At the request of either party, this section may be reopened to discuss changes. Only changes agreed by both parties will be made during the term of the MOU. ARTICLE 12. SALARY RATES AND STEP ADVANCEMENTS Section 1. Initial Appointment The rate of compensation in the case of initial permanent appointment to any class listed in the current salary resolution shall be at the minimum step in the range, provided that the City Manager may approve a higher rate of compensation at any step within the range if he shall find that the person appointed thereto is reasonably entitled, because of his/her experience or ability, to a rate in any one of the steps above the minimum or that is impracticable to obtain qualified appointees at the established minimum rate or at any one of the higher steps below the maximum. Section 2. Compensation Upon Promotion When an employee is promoted to a classification with a salary range higher than the range for his/her former position, his/her new salary shall be determined by selecting the step in the salary range for his/her new position which is a minimum of two and one half percent (2 1/2%) above his/her previous rate of compensation. In no case shall his/her new salary be lower than Step A of the new range nor higher than top step of the new range. Notwithstanding anything contained in this Section, the City Manager may approve a higher rate of compensation at any step within the range if he shall find that the person promoted thereto is reasonably entitled, because of his/her experience and/or ability, to a rate in any one of the steps above the minimum or that it is impracticable to obtain qualified appointees at the established minimum rate, or at any one of the higher steps below the maximum. Section 3. Advancement Within Salary Range Adjustments Advancement in rate of compensation of employees within their respective ranges shall be based upon the time served in their employment by the City of San Gabriel, satisfactory performance in such employment, recommendation of the department head and approval of the Personnel Director, financial ability of the City to make such adjustments and shall be progressive as follows: (A) (B) (C) (D) "B" step upon completion of six (6) months continuous service in "A" step. "C" step upon completion of twelve (12) months continuous service in "B" step. "D" step upon completion of twelve (12) months continuous service in "C" step. "E" step upon completion of twelve (12) months continuous service in "D" step. 7