CITY COUNCIL: Resolution Amending the Memorandum of Understanding between City & Carmel International Association of Fire Fighters (IAFF)

Meeting Date: January 4, 2011
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Consideration of a Resolution amending the Memorandum of Understanding between the City of Carmel-by-the-Sea and the Carmel International Association of Fire Fighters (IAFF) to extend the term an additional 90 days.

Description: The current IAFF MOU, approved by the City Council, included a series of cost-of-living (COLA) increases, one of which was an 8.75% to take effect on January 1, 2011. Given that the Council has directed staff to present a series of options related to future fire services, Carmel IAFF agreed to amend its current agreement and postpone its upcoming increase until March 31, 2011.

The proposed amendment incorporates the following changes:
1. Extend the term of the contract to end on March 31, 2011.
2. Amend the timing of the 8.75% COLA increase to take effect on March 31, 2011, provided there is no merger, JPA, or consolidation.
3. Extend the term of the City’s contribution (80%) toward medical insurance to March 31, 2011.

The City’s special legal counsel, Liebert Cassidy Whitmore, drafted the previous revised amended language and the proposed amendments are consistent with the previous amendments.

Overall Cost:
City Funds: $55,960 in Fiscal Year 2010/2011
Grant Funds: N/A

Staff Recommendation: Adopt the Resolution.

Important Considerations: Approval of the amended IAFF agreement will result in a cost savings to the City of $27,980 in Fiscal Year 2010/2011.

Decision Record: The City Council adopted Resolution 2008-38 on June 3, 2008 approving a multi-year agreement with IAFF which included a series of equitable COLA increases which was to expire on June 30, 2010. Subsequently, Resolution 2010-5 on January 5, 2010 extended the contract term to December 31, 2010.

Reviewed by:

Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS (IAFF) TO EXTEND THE TERM AN ADDITIONAL 90 DAYS

WHEREAS, the current IAFF MOU, approved by the City Council on June 3, 2008, included a series of cost-of-living (COLA) increases, one of which was an 8.75% increase, to take effect on January 1, 2010; and

WHEREAS, given the current challenging financial environment and in the spirit of assisting the City reduce FY 2009/2010 labor costs, Carmel IAFF agreed to amend its current agreement and postpone its upcoming increase until December 31, 2010; and

WHEREAS, since the decision on the future of fire services will not take effect for an additional 90 days, Carmel IAFF agrees to amend its current agreement and postpone its upcoming increase once again until April 1, 2011.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES RESOLVE AS FOLLOWS:

1. Extend the term of the contract to end on March 31, 2011.

2. Amend the timing of the 8.75% COLA increase to take effect on December 31, 2010, provided there is no merger, JPA, or consolidation.

3. Extend the term of the City’s contribution (80%) toward medical insurance to March 31, 2011.

PASSED AND ADOPTED by the City Council of the City of Carmel-by-the-Sea this 4th day of January 2011, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

________________________
SUE McCLOUD, MAYOR

ATTEST:

___________________________
Heidi Burch, City Clerk

MEMORANDUM OF UNDERSTANDING between the City of Carmel-by-the-Sea and the Carmel Professional Firefighters Association for the period July 1, 2007 through March 31, 2011
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Memorandum of Understanding: Carmel Professional Firefighters
July 1, 2007 – March 31, 2011

Firefighters Association Memorandum of Understanding
July 1, 2006 through March 31, 2011
Table of Contents
ARTICLE 1: Preamble 1
ARTICLE 2: Recognition 1
ARTICLE 3: Term of Contract 2
ARTICLE 4: Probation 2
ARTICLE 5: Compensation 2-3
ARTICLE 6: Educational Incentive Pay Plan 3-5
ARTICLE 7: Retirement Programs 5
ARTICLE 8: Deferred Compensation 5
ARTICLE 9: Uniform Allowance 6
ARTICLE 10: Holidays 6
ARTICLE 11: General Leave 6
ARTICLE 12: Holiday-In-Lieu 6
ARTICLE 13: Vacation Accrual Plan 6-7
ARTICLE 14: Bereavement Leave 7
ARTICLE 15: Sick Leave 7-9
ARTICLE 16: Catastrophic Illness/Sick Leave Hours Transfer 9-10
ARTICLE 17: Physical Examinations 10-11
ARTICLE 18: Hours of Work/Scheduling 11
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Memorandum of Understanding: Carmel Professional Firefighters
July 1, 2007 – March 31, 2011

Firefighters Association Memorandum of Understanding
July 1, 2006 through March 31, 2011
Table of Contents (continued)
ARTICLE 19: Overtime Compensation and/or Compensatory Time 11-12
ARTICLE 20: Insurance Programs 12-14
ARTICLE 21: Other Benefits 14-15
ARTICLE 22: Impasse Resolution 15-16
ARTICLE 23: Comparable Cities 16
ARTICLE 24: Management Rights 16-17
ARTICLE 25: Carmel Regional Fire Ambulance (CRFA) 17
ARTICLE 26: Consolidation 17
ARTICLE 27: Separability 18
ARTICLE 28: Effect of Agreement 18
ARTICLE 29: Signatures 18
“Exhibit 1”
Health Benefit Program for Intermittent Engineers and Paid Call Firefighters
“Exhibit 2”
Layoff Policy
“Exhibit 3”
Paid-Call Battalion Chief
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Memorandum of Understanding Between The City of Carmel-by-the-Sea And Carmel Professional Firefighters Association

ARTICLE 1: PREAMBLE
This Memorandum of Understanding (MOU) is entered into between the City of Carmel-by-the-Sea, hereinafter referred to as "CITY," and the Carmel Professional Firefighters Association, hereinafter referred to as "ASSOCIATION," pursuant to California Government Code Section 3500 et seq. The purpose of this MOU is the establishment of rates of compensation, hours of work and other terms and conditions of employment. Existing practices and/or benefits which are not referenced in this MOU and which are subject to the meet and confer process shall continue without change unless modified subject to the meet and confer process.

ARTICLE 2: RECOGNITION
2.1 The City of Carmel-by-the-Sea recognizes the ASSOCIATION as the
recognized exclusive representative for the following classifications:
• Fire Captain
• Fire Engineer
• Fire Fighter

2.2 For clarity in this agreement the following definition shall apply:
Shift Employee: Those employees classified as regular, full time Fire Engineers, Fire Captains or Fire Fighters, who are normally assigned to work a Fifty-Six (56) hour work period.

ARTICLE 3: TERM OF CONTRACT
3.1 The term of this MOU shall be retroactive to July 1, 2007 and continue through March 31,
2011 unless otherwise stated.
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ARTICLE 4: PROBATION
4.1 Probationary Period: All original, promotional and re-hire appointments to full time, regular classifications shall be subject to a probationary period of twelve (12) months. Any time spent by an employee on unpaid status shall not be counted as qualifying service toward completion of the probationary period.

4.2 Objective of Probationary Period: The probationary period shall be regarded as part of the selection process and shall be utilized for training and observation of the new employee on work assignments and standards in order to evaluate the employee’s performance.

4.3 Rejection of Probationary Employee: During the probation period, an employee may be rejected at any time by the City Administrator upon recommendation of the Department Manager without the right of appeal. Notification of rejection shall be served to the probationary employee in writing. Any promoted employee who is rejected during the probationary period shall be entitled to return to the position held prior to promotion at the range and step held prior to promotion, unless the rejection is due to discharge in which case no reinstatement shall occur.

4.4 Extension of Probation: All efforts will be made to sufficiently evaluate the probationary employee during the designated period an extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extension shall be for a specific period of time not to exceed three (3) months.

ARTICLE 5: COMPENSATION
5.1 Regular Full-Time Shift Employee:
A. A salary adjustment of 8.75% will be applied to salaries effective retroactively to July 1, 2007.

B. A salary adjustment [related to Emergency Medical Technician (EMT) duties] of 5.0% will be applied to salaries effective retroactively to Jan 1, 2008. A salary adjustment of 5.0% will be applied only to those who are fully qualified and currently certified to perform Emergency Medical Technician (EMT) duties. The 5% EMT pay will be retroactive, but no earlier than January 1, 2008, to the date the employee was fully qualified and currently certified to perform EMT duties.

C. A salary adjustment of 8.75% will be applied to salaries effective July 1, 2009.
Deleted: A

D. A salary adjustment of 8.75% will be applied to salaries effective retroactively to January 1, 2010 only if no merger of fire related services, or Joint Powers Authority for fire related services, or any consolidation of fire related services with the City of Monterey/Pacific Grove is completed by March 31, 2011.

ARTICLE 6: EDUCATIONAL INCENTIVE PAY PLAN
6.1 Payment Established: The City Council, having determined the acquisition of additional education by employees makes those employees more valuable to the City, does hereby establish an Educational Incentive Pay Plan (EIP).

6.2 Definitions: For the purpose of this program, the following definitions shall apply:
A. Base Salary shall mean the monthly salary of the employee as established by the City Council and shall not include any overtime, holiday-in-lieu pay or allowances or other supplemental benefits.
B. Satisfactory Completion shall mean a grade of "C" or better in any course. No more than one-third (1/3) of the total number of units considered for EIP may be on a "credit only" or "pass/fail" basis (limit of 10 out of 30 units or 20 out of 60 units). Units earned with a grade of "C- Minus" or less or a failing grade will not be considered eligible under the EIP program.

6.3 College Level shall mean any post-high school educational institution accredited by the California State Department of Education, the Western Association of Schools and Colleges, or by equivalent organizations in other states and countries, or which have the prior approval of the City Administrator.

6.4 Job Related shall mean any college level course related to technical or specialized aspects of the employee's position, as well as courses meeting general educational degree requirements, which are reasonably job-related. The City Administrator's determination of the eligibility of any course shall be final and shall be obtained prior to taking a course.

6.5 Units shall mean semester units (two semesters to a full academic year). Each quarterly or trimester unit shall be counted at a value of .67% of a semester unit.

6.6 Rates of additional compensation:
A. Academic Education. Upon satisfactory completion of 30 units of college level related courses, the employee shall receive a salary increase equal to two and one-half percent (2.5%) of their base salary. Upon attainment of 60 units or the attainment of an Associate Degree, the employee shall receive a salary increase equal to five percent (5%) of base salary.

B. Non-Academic Training or Instruction. For eligible employees, the City
Administrator, upon recommendation of the Department Manager, may grant prior approval for a course of instruction or training, which would lead to the attainment of EIP. The City Administrator shall be guided in this determination by the value to the City of the employee's knowledge and/or skill accumulation, and by the employee's expenditure of time and effort as compared to that put forth by an employee earning the same level of EIP by the accumulation of college-level units (at approximately 30 to 54 hours per college unit).
C. In no case shall the EIP rate of compensation exceed five percent (5%)

6.7 Eligibility: In order for employees to be eligible for EIP, ALL of the following conditions shall be met:
A. A regular, Full Time Shift, employee shall become eligible once successfully completing 18 months of continuous service to the City except that this period of time may be waived at the discretion of the City Administrator.
B. The education, training or instruction shall be acquired at times when the City does not compensate the employee. Reimbursement to the employee by the City for the costs of books, tuition, or supplies shall not affect eligibility. Scholarships or veteran’s benefit shall not be considered compensation.
C. Credit shall not be given for work experience, even though an academic
institution may have given credit for such experience, until such time as a degree is granted the employee by such institution.
D. The employee shall submit to the City Administrator through the Department Manager a list of courses and credits, together with transcripts or other proof of satisfactory completion, as may be required to verify the acquisition of claimed credits.

6.8 Time of payment: EIP shall be paid eligible employees beginning with the pay period in which the City Administrator has approved the application for EIP.

ARTICLE 7: RETIREMENT PROGRAMS
7.1 Retirement benefits for eligible, represented safety employees shall be those established by the Public Employees' Retirement System (PERS) for local safety members, 3% @ 50 Full Formula.

7.2 The CITY shall pay the rate prescribed by the Public Employees' Retirement System (PERS) for employer contributions in accordance with the rules and regulations governing such employer contributions.

7.3 Eligible members of the ASSOCIATION shall contribute the full amount of the employee contribution of nine-percent (9%) required by PERS. To the extent permissible, the full amount of this contribution shall be made in the form of a pre-tax payroll deduction.

7.4 The CITY shall continue to maintain the following, contracted retirement options:
A. Single Highest Year
B. Fourth level of 1959 Survivors Benefit ($2.00 per month cost to the
employee)
C. Permit members, if they choose, to purchase military service credit as public service to the extent permitted by PERS, solely at the members' expense.
D. Pursuant to Resolution No. 96-116, qualified members shall have the option to elect the pre-tax payroll deduction plan for their service credit purchases (i.e., redeposit, service prior to membership, military service, etc.).
E. In accordance with Government Code Section 20965, the employee may elect to apply unused sick leave toward CalPERS service credit.

ARTICLE 8: DEFERRED COMPENSATION
8.1 The CITY offers employees the opportunity to participate in a deferred compensation plan on a voluntary basis through the payroll deduction plan. Participation and contributions are regulated by the rules and regulations established by the Internal Revenue Service (IRS) for such plans (457 Plans). Nothing in this section shall prohibit or restrict this voluntary participation, in the plan(s) offered by the City.

8.2 The CITY shall make monthly contributions on behalf of each Full Time Shift employee in the amount of twenty-five dollars ($25.00). It shall be the responsibility of the employee to specify the plan and investment option.

ARTICLE 9: UNIFORM ALLOWANCE
9.1 Regular Full Time Shift Employees shall be entitled to a uniform allowance of $50.00 per month.

ARTICLE 10: HOLIDAYS
10.1 The following holidays shall be observed:
A. (New Years Day)
B. Third Monday of January (Martin Luther King Day)
C. (Lincoln’s Birthday) - February
D. Third Monday of February (President’s Day)
E. Last Monday of May (Memorial Day)
F. July 4th
G. First Monday of September (Labor Day)
H. November 11th (Veteran’s Day)
I. The Thursday in November appointed by the Governor or the President as
Thanksgiving Day
J. The Friday immediately following the Thursday in November designated as
Thanksgiving
K. The weekday (excludes Saturday and Sunday), which precedes December 25th
L. December 25th

ARTICLE 11: GENERAL LEAVE
11.1 Full Time Shift Employees of the Association shall be entitled to one shift (24 hours) of General Leave during the period of the contract. The Department Manager shall approve use of General Leave. General Leave may not be accumulated from one year to the next.

ARTICLE 12: HOLIDAY-IN-LIEU
12.1 Regular Full Time Shift Employees of the ASSOCIATION shall be compensated, at the regular hourly rate for that position, for holidays. General leave hours, as defined in this agreement, shall not be considered for monetary compensation as outlined by this section.

ARTICLE 13: VACATION ACCRUAL PLAN
13.1 The following vacation accrual schedule shall be in effect for all Regular Full Time Shift Employees:
1 - 4 years of service: 144 hours per year
5 - 10 years of service: 168 hours per year
11 - 15 years of service: 216 hours per year
15 years of service and over: 288 hours per year

13.2 Usage shall only be in increments of twenty-four (24) hours, unless prior approval has been obtained from the appropriate department administrator.

13.3 The maximum amount of vacation time that may be held in an unused status shall be the amount an employee is entitled to accrue in two (2) anniversary years; an employee stops earning vacation once the employee has banked an amount equal to two years accrual, and does not begin earning vacation again until the employee’s accrual drops below that amount. The department manager may grant exceptions with approval by the City Administrator.

ARTICLE 14: BEREAVEMENT LEAVE
14.1 Each regular full time Shift Employee of the ASSOCIATION shall be entitled to use seventy-two (72) hours of bereavement leave each fiscal year for serious illness, disability, or death in the employee's immediate family.

14.2 Immediate family is defined as the employee's spouse, child, stepchild, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, sister-in-law, and brother-in-law, or any other person approved by the department manager. The department manager may require the employee furnish satisfactory proof to substantiate the use of bereavement leave. Bereavement leave shall not be subtracted from an employee's sick leave account and shall not accrue from one fiscal year to the next.

ARTICLE 15: SICK LEAVE
15.1 The rate of accrual for sick leave for Regular Full Time Shift Employees of the ASSOCIATION shall be 24 hours per month. These days are to be used in used in accordance with the procedure(s) outlined below and in the Personnel Ordinance of the Municipal Code of the City of Carmel- by-the-Sea.

15.2 Sick leave shall be charged against an employee's credit only for regular working days and shall not be charged for time absent on holidays or other authorized days off. Charges against an employee's credit shall be rounded off to the lowest hour, for example:
Time Off Work Time Charged
59 minutes or less 0
1 hour 1 hour
1 hour and any segment of the next hour 1 hour
A. Medical appointments of 59 minutes or less, with written physician verification, shall not be charged to an employee's sick leave account.
B. Medical appointments of 59 minutes or less, without written physician verification, shall be charged to employee's sick leave account in 15 minute segments.
C. If an employee becomes sick on scheduled vacation time, the department manager may, with acceptable documentation, authorize the use of sick leave instead of vacation leave.

15.3 Regular Full Time Shift employees hired on or after 1 November 1984 shall be able to accumulate an unlimited number of sick leave hours, while employed. A maximum of six hundred (600) base hours will be the total amount on which the City will base reimbursement to the employee upon termination or resignation from employment. This provision does not apply to employees with less than five (5) years of continuous service who shall not be entitled to any compensation under this section.
A. Resignation from employment after five (5) years will result in reimbursement at 25% of 600 hours maximum, times the actual hourly rate at the time of resignation.
B. Retirement from employment after five (5) years will result in reimbursement at 50% of 600 hours maximum, times the actual hourly rate at the time of resignation.

15.4 Regular Full Time Shift employees employed by the City before 1 November 1984 will be entitled to accumulate an unlimited amount of sick leave hours. The formula for compensation upon severance of employment will be:
A. Resignation: Twenty-five percent (25%) of the full-accrued sick leave hours times the current hourly rate.
B. Retirement: Fifty-percent (50%) of the full accrued sick leave hours times the current hourly rate.

15.5 Upon approval of the department manager, accrued sick leave may be used to accommodate the need for additional hours in the case of illness, disability, or death in the employee's immediate family. Immediate family is defined as the employee's spouse, child, step-child, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, sister-in-law, and brother-in-law, or any other person approved by the department manager. The department manager may require the employee furnish satisfactory proof to substantiate the use of sick leave for this purpose.

15.6 Pursuant to Government Code Section 20965 and the City’s CalPERS retirement contract, an employee may elect to use sick time available to him/her under the provision of the contract for sick leave service credit. If an employee elects to use sick leave available for service credit, such time cannot also be applied to the “sell back” provision under this section.

ARTICLE 16: CATASTROPHIC ILLNESS/SICKLEAVE HOURS TRANSFER
16.1 General Requirements: A Regular Full Time Shift employee shall be faced with or have incurred either a catastrophic illness or major injury from an accident in order to be eligible for this program. Individual determinations of catastrophic illness or major injury from an accident shall be determined by the appointing authority (City Administrator)

16.2 The employee requesting the transfer of sick leave hours must have reached zero balances in the sick leave, vacation, compensatory time and executive leave accounts during the illness or recovery period in order to be eligible.

16.3 Generally, the illness or accident recovery period must be longer than three weeks for the employee to be eligible. The appointing authority will evaluate each request and may modify this time period based on the facts of the case.

16.4 Any employees desiring to contribute hours must maintain a minimum balance of three hundred-sixty (360) hours after the transfer has been deducted from their sick leave account(s).

16.5 Hours transferred from general employee accounts to any Shift Employee of the ASSOCIATION shall be deducted in eight (8) hour blocks and converted into twenty- four (24)-hour units by multiplying by three (3). The result shall be the number of hours that will be transferred to the employee.

16.6 Hours transferred from these accounts to any forty (40) hour per week employee shall be deducted in twenty-four (24) hour blocks and converted into eight hour units by dividing by three (3). The result shall be the number of hours that will be transferred.

16.7 Employee Use of the Program - Employees MUST:
A. Notify their Department Manager to request assistance in utilizing the program.
B. State the reason for the request and the approximate number of hours they believe will be needed.

16.8 The Department Manager WILL:
A. File the employee's request with the Human Resources Office.

16.9 The Administrative Services Department WILL:
A. Present the request to the City Administrator for authorization and determination of the validity of the request.
B. Disseminate notices to Municipal Departments stating an employee is in need of sick leave hours and request interested employees to contact the Administrative Services Department.
C. Maintain the confidentiality of the employee(s) who donates sick leave
hours to the employee in need.
D. Notify the Finance Specialist to make the transfer of sick leave hours when the transfer is approved.

16.10 The City Administrator WILL:
A. Review requests for participation in the program.
C. Authorize or deny the transfer of sick leave hours pursuant to the request.

ARTICLE 17: PHYSICAL EXAMINATIONS
17.1 Each Regular Full Time Shift employee under the age of forty-five (45) shall be entitled to a physical examination every other year during the term of the contract, subject to the financial guidelines stated in this section. Employees in this category who had a City paid physical in the fiscal year just prior to the fiscal year of this contract shall not be entitled to a City paid physical during the period of this contract.

17.2 Regular Full Time Shift Employees who turn forty-five (45) years of age during the term of this contract shall be entitled to one City paid physical per year after attaining that age and subject to the financial guidelines stated in this section.

17.3 Regular Full Time Shift Employees forty-five (45) years of age or older shall be entitled to one City paid physical examination per fiscal year, subject to the financial guidelines stated in this section.

17.4 The City shall pay up to two hundred and twenty-five dollars ($225.00) for the physical examination and accompanying tests. Any expense in excess of this amount shall be borne by the employee.

17.5 A licensed physician of the employee’s choice may perform physical examinations. The physician shall complete a Physician Evaluation Report Form. Payment shall be made upon receipt by the Human Resources Office of the form and a statement of all charges, within ninety (90) days from date-of-service.

ARTICLE 18: HOURS OF WORK/SCHEDULING
18.1 The work period for Shift Employees shall be fifty-six (56) hours.
A. Development of the shifts pursuant to this agreement shall be at the discretion of the Department Manager, subject to meet and confer in good faith.

ARTICLE 19: OVERTIME COMPENSATION AND/OR COMPENSATORY TIME
19.1 The CITY shall comply with all regulations established by the Fair Labor Standards Act (FLSA).

19.2 Shift Employees shall have all overtime compensation based on the fifty-three (53) hour work period rate. Exception: The three (3) hours between fifty-three (53) and fifty-six (56) shall be compensated at half time.

19.3 There shall be a one (1) hour minimum call back.

19.4 Overtime shall be compensated at time and one-half for all work performed over the normal work period. Paid time off shall be counted as time worked.

19.5 Employees entitled to overtime compensation may, in lieu of monetary
compensation for statutory overtime, choose to receive compensatory time at a rate of not less than one and one-half hours for each hour of overtime worked. Compensatory time shall only be granted upon approval of the department manager.

19.6 Accrued compensatory time may be used within a “reasonable period” of time after an employee’s request as long as it does not “unduly disrupt” the operations of the agency. (Per FLSA guidelines)

19.7 Compensatory time may be accrued up to the following limits with Department Manager approval: 75 hours (equals 50 straight-time hours)

19.8 In the event compensatory time is sold back to the CITY, it will be paid at the FLSA regular rate on an hour-for-hour basis since it was accumulated at the time and one-half rate.

ARTICLE 20: INSURANCE PROGRAMS
20.1 The City offers a variety of insurance protection programs for the employee and dependents. Some protection is provided through fully insured instruments. Other protection is provided through a City self-funded program. Other protection is employee funded.

20.2 For the purposes of this section the following definitions and groupings of coverage shall exist:
A. Non-Elective (Core): Mandatory coverages: (Employer Paid)
1) The mandatory contribution required by CalPERS for each employee enrolled in the medical protection program. The non-elective City contribution/premium toward the medical will be the following:
Calendar Year 2007 $80.80 per month per employee
Calendar Year 2008 $97.00 per month per employee
Calendar Year 2009 TBD by PERS – minimum contribution required under Gov. Code Section 22892)
Calendar Year 2010 TBD by PERS minimum contribution required under Gov. Code Section 22892)
2) Employee/Dependent dental premium, established by the City’s
broker of record for the self-insured dental plan, depending on the level of coverage chosen
3) Collective employee/dependent vision premium established by the City’s
broker of record for the self-insured vision plan.
4) Basic $30,000 life insurance premium (available only to Full-Time Shift
employees).
5) Accidental Death and Dismemberment Policy (available only to Full Time
shift employees)
B. Elective (non-core) coverages, available for purchase with flexible spending monies given each eligible employee:
1) Employee and/or dependent medical coverage in the CalPERS Program less
the mandatory per month required employer payment.
2) Optional (Supplemental) Life Insurance
3) I.R.C. Section 125 - Flexible Spending Account
4) I.R.C. Section 125 - Dependent Care
C. Opting Out (Medical Program Only): Full-Time Shift- employees may elect not to participate in the CalPERS medical plan. Anyone opting out shall only be eligible to take cash in the amount of $291 per month, providing they meet the following condition(s):
1) They shall submit proof of coverage elsewhere.
2) They shall sign a medical plan waiver.
3) Married employees shall be required to obtain the signature of their spouse on the medical plan waiver form.
4) Employees under legal order to provide medical coverage for any dependents shall only be permitted to opt out after showing proof of coverage for each dependent identified in such legal order.
D. Section 125 Plan: The City's insurance plan is structured within this tax-deferred program. This is an Internal Revenue Code permitted plan. A third party administrator provides administration of the plan. The City pays administrative fees.

20.3 Medical Insurance Contributions:
A. For the period July 1, 2007 through March 31, 2011, City shall contribute toward employee medical premiums in an amount of eighty
percent (80%) of CalPERS CHOICE premium for employees and dependents, who are enrolled in City sponsored PEMHCA plan. Eighty percent computation includes the non-elective, mandatory CalPERS premium.

20.4 If employees select elective benefits which cost more than their allotted flexible spending dollars as defined in Section 20.3, that cost will be deducted through payroll deduction on a monthly basis, using pre-tax dollars.

20.6 Long Term Disability Insurance: The CITY also agrees to pay a monthly premium of $20.00 for the Group Long Term Disability Insurance (LTD), provided through Myers-Stevens and Toohey effective with the first billing period subsequent to the enrollment of eligible members of the Association. The CITY is required to provide proof of paid premiums for Group Long-Term Disability Insurance (LTD) on a monthly basis.

20.7 As stated in Section 20.2(B.2) above, the CITY agrees to maintain a contract for Supplemental Term Life Insurance. The cost of this insurance shall be paid fully by each participating employee. Implementation and continuation requires participation of ten (10) employees from the eligible group. For purposes of this program the eligible group shall include all city employees currently eligible for the City Funded Life Insurance. Individuals must purchase coverage in blocks of $10,000, with 5 blocks available without a medical certification/examination. Dependent blocks are also available. Rates for each $10,000 of coverage and are determined on a cash-specific basis using age of the individual and whether or not the individual is a smoker/non-smoker.

ARTICLE 21: OTHER BENEFITS
21.1 Jury Duty
A. The CITY provides time off with no loss of salary for employees who must fulfill jury duty obligations. Employees shall be entitled to keep the mileage reimbursement for such service. Any per diem amount received by the employee shall be signed over to the CITY.

21.2 Employee Payroll Deductions
A. The CITY, upon authorization from any employee, shall make direct deposit(s) to the financial institution of the employee’s choice providing the CITY has the compatible technology to do so. Employee funded insurance programs and deductions for deferred compensation programs shall be paid through payroll withholding.

21.3 Acting Out of Class Pay
A. Regular full time shift employees assigned to work out of class shall receive pay for duties of the position assumed after serving a minimum of one (1) hour until they are relieved of the duties of the acting out of class assignment.
B. Rate of Compensation: Employees eligible for acting out of class pay shall receive increased pay as provided below:
Engineer working as Fire Captain: Closest higher step with a minimum
guarantee of 5% Fire Fighter working as Engineer: Closest higher step with a minimum guarantee of 5%

21.4 Layoff Policy: Per Resolution 92-90, the policies and procedures for the layoff of City employees are incorporated herein as “EXHIBIT 1” to the MOU.

ARTICLE 22: IMPASSE RESOLUTION
22.1 Impasse Defined
A. "Impasse" means that the representatives of the City and a recognized employee organization have reached a point in their meeting and conferring in good faith where their differences on matters to be included in a Memorandum of Understanding, and concerning which they are required to meet and confer, remain so substantial and prolonged that further meeting and conferring would be futile.

22.2 Initiation of Impasse Procedures
If the meet and confer process has reached impasse as defined in "A" above, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all issues. The City Administrator shall
then schedule an impasse meeting promptly. The purpose of such meeting shall be:
A. To allow the parties to review each others position in a final effort to reach agreement on a Memorandum of Understanding; and

B. To discuss arrangements for the utilization of the impasse procedures if the impasse is not resolved.

22.3 Mediation
A. The parties agree that if the impasse is not resolved the dispute shall be submitted to a mediator from the California State Mediation and Conciliation Service. Costs for mediation services, if any, shall be borne equally by the City and the Employee Association.
B. All mediation proceedings shall be private. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues.

ARTICLE 23: COMPARABLE CITIES
23.1 During the term of this agreement, CITY and ASSOCIATION will meet in an effort to agree upon at least three (3) new benchmark cities for purposes of comparing future salary and benefit data for classifications within the ASSOCIATION.

ARTICLE 24: MANAGEMENT RIGHTS
24.1 It is understood and agreed that the CITY retains all of its powers and authority to manage municipal services and the work force performing those services.

24.2 It is agreed that during the term of this contract the CITY shall not be required to meet and confer on matters, which are solely a function of management, including the right to:
A. Determine and modify the organization of City government and its constituent work units.
B. Determine the nature, standards, levels, and mode of delivery of services to be offered to the public.
C. Determine the methods, means, and the numbers and kinds of personnel by which services are to be provided.
D. Determine whether goods or services shall be made or provided by the City, or shall be purchased, or contracted for.
Deleted: services to
E. Establish employee performance standards and to require compliance therewith.
F. Discharge, suspend, demote, reduce in pay, reprimand, withhold salary increases and benefits, or otherwise discipline employees, subject to the requirements of applicable law including the current Personnel Ordinance.
G. Relieve employees from duty because of lack of work or lack of funds or for other legitimate reasons.
H. Implement rules, regulations, and directives consistent with all applicable laws and the specific provisions of the Memorandum of Understanding.
I. Take all necessary actions to protect the public and carry out its mission in emergencies.

24.3 Decisions under this section shall not be subject to the grievance procedure unless specifically authorized by the Personnel Ordinance or other applicable law.

ARTICLE 25: CARMEL REGIONAL FIRE AMBULANCE
25.1 CITY and ASSOCIATION agree that they shall meet and confer regarding any terms and conditions of employment of ASSOCIATION members that may be affected by a change to CITY’s relationship with the Carmel Regional Fire Ambulance (CRFA).

ARTICLE 26: CONSOLIDATION
26.1 CITY and ASSOCIATION agree that they will meet and confer regarding any terms and conditions of employment of ASSOCIATION members that may be affected by consideration of consolidation of the existing Carmel-by-the-Sea Fire Department with another agency or agencies. CITY also agrees that one or more ASSOCIATION members shall be selected to participate on a
task force formed by the City Administrator upon the inception of initial discussions regarding consolidation studies relative to the Carmel-by-the-Sea Fire Department.

ARTICLE 27: SEPARABILITY
27.1 If a court of competent jurisdiction finally determines that any provision of the Memorandum of Understanding is invalid and unenforceable, such provision shall be separable, and the remaining provisions of the Memorandum of Understanding shall remain in full force and effect.

EXHIBIT “1"
Layoff Policy
Per Resolution 92-90
(Layoff Policy Included in the MOU per agreement)

Introduction
It is the intention of the City of Carmel-by-the-Sea to provide a layoff policy that insures fairness and objectivity to all City employees as well as the best opportunity for a transition to reemployment.

The City of Carmel-by-the-Sea, at its sole discretion, may layoff an employee due to the lack of work, lack of funds, discontinuance of a program or service, or for any similar reason. The City shall inform affected employees and the employee's representative Association regarding potential layoffs in a timely manner when the City becomes aware of potential layoffs.

The City shall utilize a committee appointed by the City Administrator, composed of administration and recognized Employee Association representatives, to review potential layoffs and discuss alternatives to layoffs.

For the purposes of this policy the following definitions shall apply:
Positions A group of duties and responsibilities assigned to one employee
Classification A group of positions with the same job title having similar duties, responsibilities, and qualifications Re-Employment List A list for a specific position or classification containing the names of laid off employees who have reinstatement rights to that classification or position

Laid-Off Employee List One master list containing the names of all employees who are in a layoff status
Regular Full-time Position A full-time position is an authorized budgeted position, which may only be filled for the Department’s standard workweek as approved by the City Council on a full-time basis and entitled to
the benefits negotiated by the applicable bargaining unit.
Employees working 35 hours per week or more shall be considered full-time.
Regular Part-time Position Regular part-time positions are those authorized by the City Administrator to have regularly scheduled workweeks.
Employees filling these positions shall work a minimum of 1000 hours in a fiscal year and less than the City’s standard workweek established for that position. Employees authorized for these positions shall be eligible for specific benefits, determined by the number of hours authorized to work in the fiscal year, as follows:
1. 1,000 – 1,559 hours worked per fiscal year. Those benefits required by applicable state and federal law, membership in the California Public Employees Retirement System (CalPERS), and eligible for participation in the CalPERS Health program at the employee’s expense. These positions shall be considered at-will employees.
2. 1,560 hours worked per fiscal year and less than 1,819 hours worked per fiscal year. All benefits available to full-time positions, except that all leave hours, including but not limited to vacation leave, general leave, sick leave and bereavement leave, shall be computed at 75% of the full-time position entitlements.
Temporary Employee These positions work no more than 1,000 hours per fiscal year and are eligible for only those benefits required by applicable state and federal laws. These positions shall be considered at-will employees
Intermittent Fire Engineer An employee who works in the capacity of a Fire Engineer in a seasonal, limited-term emergency, intermittent, substitute, or other irregular basis, who works an average of twenty-four (24) hours
per month in a fiscal year.
City The City Administrator and the powers granted the position by the
City Council Base Pay For the purpose of layoffs base salary includes the salary listed on the applicable range-step scale for a classification plus the percentage of educational incentive pay (EIP) that an employee is receiving immediately prior to layoff.

LAYOFFS
I. Procedure
Layoffs shall be determined within City departments, not the City as a whole. In the event of a reduction in work force in a department, the City shall designate the classification(s) and position(s) to be eliminated. The City shall provide affected employees and their Association representative(s) with a current seniority list for the positions affected, the basis for proposed layoffs, the effective date of layoffs, and a copy of this policy no later than thirty (30) calendar days prior to the effective date of the layoffs. Additionally, affected employees shall be provided a summary of all accrued benefits and entitlement at least thirty (30) calendar days prior to the effective date of layoffs.
Layoffs shall be made among all representation unit employees in the same classification within a City department in the following order:
A. Temporary employees;
B. Probationary new employees;
C. Regular Part-time employees working 1,000 – 1,559 hours per fiscal year.
D. Regular Part-time employees working 1,560 – 1,819 hours per fiscal year, and Intermittent Fire Engineers
E. Regular Full-time employees;
No regular full-time or regular part-time employee within a department shall be laid off in any classification if there are temporary employees in an active status in the same classification within that department.

II. Seniority Defined
Except as stated otherwise in this policy, for purposes of layoff, seniority shall be defined as the length of paid continuous service in all regular full-time positions within the City as determined by City personnel records. Continuous service for purposes of determining seniority shall be defined to include work related injury leave of up to one (1) year's duration, per leave and cumulatively. For purposes of layoff, seniority for Intermittent Fire Engineers shall be date of hire for that classification.

III. Layoff by Classification
Layoffs shall be accomplished solely within individual departments, except as noted in IV below.

The order of layoff within a classification shall be based exclusively on seniority, with the least senior employee being the first to be laid off.

IV. "Right to Return"
In the event that an employee is to be laid off, that employee shall have the right to return to ("bump") any specific position in the City in which the employee has served in regular full-time status or has qualifications for a lower classification within that department, with due consideration
to reclassifications, job descriptions and changes in titles of the position previously held. In cases where the prior position has been reclassified or the title changed, the City Administrator shall
determine whether a right to return exists. An employee must notify the City within ten (10) calendar days after receipt or written notice of layoff of his/her desire to return to any classification or position, and shall identify the classification or position.

V. Severance Pay
Each laid off employee shall receive severance pay based on the following:
Years of paid service Severance pay
Less than 5 years An amount equal to 3 weeks pay
5 - 10 years An amount equal to 4 weeks pay
11 - 15 years An amount equal to 5 weeks pay
16 years and over An amount equal to 6 weeks pay

VI. Health Insurance
Each employee who at time of layoff is covered by the City's Health Protection Plan shall be eligible to continue group health insurances under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) with the City's group health plan for a period defined by law. Cost for participation in this program shall be paid by the employee pursuant to the rules and regulations of COBRA.

If a laid off employee elects this coverage, the benefit will continue until whichever of the following events occurs first:
* Expiration of COBRA period defined by law
* Employee becomes covered under any other group health plan as an employee or dependent.
If the laid off employee fails to notify the City of such coverage, the City may immediately terminate group coverage under COBRA and take action to recover the City's costs for the period of time of dual eligibility.
* Employee or covered dependent becomes eligible for Medicare.

VII. Accrued Time
At the time of separation, each laid off employee shall be paid in full for all accrued time earned during the course of employment to include 100 percent (100%) of vacation time, holidays, compensatory time, general leave and management leave.

Shift employees of the Fire Department shall have accrued hours in their vacation accounts divided
in half and paid at their current hourly rate (Section X (C)(1) of the 1991-92 MOU).

Accrued sick leave at the employee's option shall be paid, at the employee's hourly rate at time of layoff, as follows:
A. Employees hired prior to November 1, 1984, shall be paid fifty percent (50%) of accrued sick leave in their account.
B. Employees hired after November 1, 1984, shall be paid fifty percent (50%) of accrued sick leave in their account to a maximum of three hundred (300) hours.
C. Shift Employees of the Fire Department shall have hours in their sick leave account converted as described in Section XIII of the 1991-92 MOU and then paid as described in sections A or B above. In-lieu of being compensated for accrued sick leave, a laid off employee may choose to leave
his/her sick leave hours on account with the City until recalled for employment or for no more than twenty-four (24) months from date of layoff. If a laid off employee is not recalled for employment within twenty-four (24) months he/she shall be paid in accordance with applicable Sections A-C above at the hourly rate in existence at time of layoff.

VIII. Re-employment of Laid off Employees - Only
The names of persons laid off under these procedures shall be maintained on a City re-employment list for the classification from which the employee was laid off and for those specific positions that an employee previously held in regular City service for a period of up to twenty-four (24) months from date of layoff. When using a re-employment list to fill
a position in a classification from which layoffs have occurred within the twenty-four (24) month period, the City shall re-employ laid off employees from the list in reverse order of layoff. During the twenty-four (24) month period, no new employee shall be hired nor shall any employee be
promoted to a classification from which layoffs have occurred until all employees on layoff status in that classification have had the opportunities permitted under this policy.

A laid off employee may be removed from the City re-employment list for any of the following reasons: 1) The expiration of twenty-four (24) months from the date of layoff; or 2) Failure to accept an offer of employment with the City in the classification held prior to layoff; or 3) Failure to
appear for a job interview after fourteen (14) days notification by Certified U.S. Mail of such interview; or 4) Failure to respond within fourteen (14) days of available employment; or 5) Request
in writing by the laid off employee to be removed from this list.

It is the responsibility of the laid off employee to advise the City Personnel Office, in writing, of any change in address or phone number. Failure to abide by this provision constitutes a waiver of rights by the employee.

IX. Retraining
It is the City's intent to consider on-the-job training programs for laid off employees or employees who have received notification of layoffs who may be interested in transitioning to other available
positions within the City for which they may or may not yet be fully qualified. If an employee's qualifications are judged to meet the minimum desirable qualifications as outlined in the job description, or if, in the opinion of the City Administrator in cooperation with the Personnel Officer
and Department Director it is reasonable to expect the employee to meet the minimum desirable qualifications within a 90 calendar day period of on-the-job training, without any adverse impact on the City or any City program or service, the City will consider that laid off employee prior to any other employee or applicant. In the event that there is more than one laid off employee who is considered for retraining, the laid off employee who has greater seniority will be given first priority for consideration of the on-the-job training opportunity. If a laid off employee is selected for such a position he/she will serve the training and observation period established by applicable MOU for that position.

X. Restoration of Benefits for Recalled Employees
Any employee who has been laid off and is hired from a City re-employment list under the terms of this article within twenty-four (24) months from the date of layoff shall be entitled to: 1) Restoration of regular status or for employees who have not completed their training and observation period, credit for that portion which has been completed shall be given; and 2) Restoration of any accrued time lost due to layoff; and 3) Credit for all years of service, which does not include time spent on layoff for the purpose of determining seniority and benefits, with the exception of retirement system benefits which are controlled by the Public Employees' Retirement System; and 4) Placement in the same step of the salary range the employee held at time of layoff.

XI. Appeal Procedure
An employee directly affected by the operation of this policy may, within ten (10) calendar days after notice of layoff is received, request a meeting with his/her department manager to review the application of this policy as it affects the employee's status. The employee may be accompanied by the representative of his/her choice.

If the employee is not satisfied with the review provided by his/her department manager, a further review of the application of the layoff policy may be requested by the employee with the City Administrator. This request must be made within five (5) calendar days after the discussion with the employee's department manager. The determination of the City Administrator is final. An employee has no due process right to an evidentiary appeal to challenge a layoff.