Loading...
HomeMy WebLinkAboutMINUTES - 12192014 - FPD D.3RECOMMENDATION(S): ADOPT Resolution No. 2014/5 approving the Memorandum of Understanding with United Professional Firefighters, Local 1230, for the period of July 1, 2014 through June 30, 2017. FISCAL IMPACT: The estimated cost of the negotiated contract is $1.4 million for 2014/15 ($750,000 from the 2.5% wage increase); $4.1 million for FY 2015/16 ($1.5 million from the previous wage increase and $1.5 million from the second 2.5% increase); and $6.0 million for FY 2016/17 ($3.0 million from the previous wage increases and $1.5 million from the last 2.5% increase). The three year contract has an estimated cost of $11.4 million. Implementation of a change in the Cost of Living Adjustment (COLA) to the pension benefit for employees who become members of CCCERA in the PEPRA tiers on and after January 1, 2015, is intended to result in long term savings for both the employee and the District. BACKGROUND: United Professional Firefighters, Local 1230 began bargaining with the District on May 8, 2014. A Tentative Agreement was reached between the District and Local 1230 on December 8, 2014, and the Memorandum of Understanding (MOU) was ratified on December 16, 2014. The resulting MOU, which is attached, includes modifications to wages, retirement, and other benefit changes. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/19/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, Director Candace Andersen, Director Mary N. Piepho, Director Karen Mitchoff, Director Federal D. Glover, Director Contact: Lisa Driscoll, County Finance Director (925) 335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 19, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Harjit S. Nahal, Assistant Auditor-Controller, Human Resources Transactions, Christine Penkala, County Benefits Manager, Kurt Schneider, Deputy Chief Executive Officer D.3 To:Contra Costa County Fire Protection District Board of Directors From:David Twa, County Administrator Date:December 19, 2014 Contra Costa County Subject:Memorandum of Understanding with United Professional Firefighters Local 1230 BACKGROUND: (CONT'D) > In summary, those changes include: Term The term of the agreement is July 1, 2014 through June 30, 2017. Preamble Specific Personnel Bulletins (Shift Activities (1), Morning Change of Shift Assembly (2), Roll Call (3), Firefighter-Paramedic Classification (51A), Paramedic Licensure and Accreditation (51C), Removal from the District Paramedic Program (51D), and Fire Station Assignments (81) were incorporated into the MOU. Definitions (Definitions Section) Temporary employment was deleted from this section as Local 1230 does not represent temporary employees. Wages (Section 5) Effective the first of the month following adoption by the Board of Directors, the base rate of pay for all classifications represented by IAFF, Local 1230 will be increased by two and one-half percent (2.5%). Effective July 1, 2015, the base rate of pay for all classifications represented by IAFF, Local 1230 will be increased by two and one-half percent (2.5%). Effective July 1, 2016, the base rate of pay for all classifications represented by IAFF, Local 1230 will be increased by two and one-half percent (2.5%). Performance Appraisals (Section 5.3) Performance evaluations are required annually on or about an employee’s anniversary date. Fire Investigation Unit Off-Duty Standby Differential (Section 5.12.A) To be eligible for this five percent (5%) differential, the employee must be on-call to the Fire Investigation Off-Duty Standby Team at least ten (10) days per month and must have their schedule approved by the Fire Marshal, or his designee. Fire Investigation Unit Staffing (Section 5.12.B) The District may, at any time, consider the feasibility of changing the Fire Investigation Unit staffing to a 24-hour on-duty shift schedule. If, after considering the feasibility of this change, the District concludes that a 24-hour on-duty shift schedule is preferable to the current schedule, the Fire Investigation Unit staffing will be changed to a 24-hour on-duty shift schedule. Pay Warrant Errors (Section 5.16) Pay errors recovery time is six (6) months; repayment schedules for overpayments shall be no longer than three (3) times the length of time the overpayment occurred. Training and Prevention Differential (Section 5.17) Previously a side letter, the language has been incorporated into the body of the MOU. Employees in the classifications of Fire Training Captain (RPTE) and Fire Prevention Captain (RPTD), who are permanently allocated to the Contra Costa Fire Protection District Training Division and Fire Prevention Bureau, shall receive a monthly pay differential of ten percent (10%) of base pay. Temporary Staff Assignment Differential (Section 5.18) Previously a side letter, the language has been incorporated into the body of the MOU. Employees in the classifications of Firefighter (RPWA), Firefighter-Paramedic (RPWB), Fire Engineer (RPVC) and Fire Captain (RPTA), regularly working line assignments with a 56-hour work week schedule and who are placed in a 40-hour work week Temporary Staff Assignment are eligible to receive the ten percent (10%) hourly pay differential. Overtime (Section 6) Overtime calculation will include hours worked and non-worked hours such as leave hours or unpaid time off. Mandatory Recall (Section 7.1) If the District has not maintained 95% of minimum staffing as defined in Section 30, this provision does not apply. Days & Hours of Work/Timekeeping Waiver (Section 8) Define work schedules and eliminate the 12/80 work schedule; replace with “Kelly” work schedule. Local 1230 agrees to the implementation of an Automated Timekeeping System and waives its right to meet and confer regarding any impacts that may result from the County’s implementation of the automated timekeeping system, including but not limited to, changes to current departmental time reporting and pay practices. Local 1230 agrees to convert from the current payroll cycle when the county is able to upgrade the current payroll system or implement a new County payroll system. Holidays (Section 9) Language was added and deleted to clarify pay practices and time reporting for holidays. Sick Leave (Section 11) The employee may be required to provide a physician’s note upon return to work for all absences exceeding four (4) days for 40-hour personnel or three (3) days for shift (56-hour) personnel. Worker’s Compensation (Section 12) Align non-safety wage replacement to 70% standard. General Administration/Leaves of Absence (Section 13.2) Language updated to reflect twelve (12) weeks of FMLA. Health & Welfare, Life & Dental (Section 14) For the plan year that begins on January 1, 2016, the District will pay a monthly premium subsidy for each health plan that is equal to the actual dollar monthly premium subsidy that is paid by the District as of November 30, 2015. If there is an increase in the monthly premium charged by a health plan for 2016, the District and the employee will each pay fifty percent (50%) of that increase. For each calendar year thereafter, the District and the employee will each pay fifty percent (50%) of the monthly premium increase above the 2015 plan premium. Delta and PMI Delta Care For the plan year that begins on January 1, 2016, the District will pay a monthly premium subsidy for each health plan that is equal to the actual dollar monthly premium subsidy that is paid by the District as of November 30, 2015. In addition, if there is an increase in the monthly premium charged by a health plan for 2016, the District and the employee will each pay fifty percent (50%) of that increase. For each calendar year thereafter, the District and the employee will each pay fifty percent (50%) of the monthly premium increase above the 2015 plan premium. Dental Only Employees who elect dental coverage as stated above without health coverage will pay one cent ($.01) per month for such coverage. Beginning on January 1, 2016, the District will pay a monthly dental premium subsidy for each dental plan that is equal to the actual dollar monthly premium subsidy that is paid by the District for 2015. If there is an increase in the premium charged by a dental plan for 2016, the District and the employee will each pay fifty percent (50%) of the increase. For each calendar year thereafter he District and the employee will each pay fifty percent (50%) of the premium increase that is above the 2015 plan premium. In the event, in whole or in part, that the above amounts are greater than one hundred percent (100%) of the applicable premium of any plan, the District’s contribution will not exceed one hundred percent (100%) of the applicable plan premium. Retirement Dental Coverage (Section 14.11.A.2) For employees hired on or after January 1, 2015, no monthly premium subsidy will be paid by the District for any dental plan after they separate from District employment. Dual coverage (Section 14.12) On and after January 1, 2015, each employee and retiree may be covered by only a single District health and/or a single District dental plan, including CalPERS plans. On and after January 1, 2015, each dependent may be covered by the health and/or dental plan of only one spouse or one domestic partner. Retirement (Section 22) Effective January 1, 2015, each member in Tier A shall pay six percent (6%) of his or her retirement base to pay part of the employer’s contribution for the cost of the Tier A retirement benefit. Effective January 1, 2016, each member in Tier A shall pay three percent (3%) of his or her retirement base to pay part of the employer’s contribution for the cost of the Tier A retirement benefit. Effective January 1, 2017, the employee’s payment of three percent (3%) of his/her retirement base to pay part of the employer’s contribution for the cost of the Tier A benefit will cease. Uniform Allowance (Section 26) Language has been modified to reflect the current rate. Maximum Continuous Work Week (Section 29) Reduces maximum continuous work hours for Firefighters, Firefighter/Paramedics, Fire Engineers and Fire Captains from 120 to 96 work hours. Eliminates reference to a maximum number of continuous work hours for Dispatchers and Senior Dispatchers. Minimum Staffing/Two-Person Squad (Section 30) The minimum staffing in the Fire Protection District shall be 24 companies and 3 squads. Provided that the District shall maintain a minimum staff on all engines and trucks of three (3), the three shall be composed of: one (1) Fire Captain, one (1) Fire Engineer and one (1) Firefighter, of which at least one must be a Paramedic. Additionally, Squads shall be staffed by a minimum of two personnel to include one (1) Engineer and one (1) Firefighter, one of whom must be a paramedic. The District shall reduce two-person Squads before reducing three-person engines/trucks. Communication Center (Section 31) The District shall provide supervisor and dispatcher staffing to handle call and processing, incident dispatching, training and vacation relief. For 24-hour shifts described below, the District shall maintain staffing of five (5) dispatching personnel per day shift, one (1) of these five (5) will be a Senior Fire District Dispatcher; and four (4) dispatching personnel per night shift, one (1) of these four (4) will be a Senior Fire District Dispatcher. Effective January 1, 2015, or as soon as practical thereafter, center personnel will transition from the 48/96 schedule to the Kelly schedule. All 24-hour shifts shall be based on the Kelly schedule. Center personnel hired prior to January 1, 2015 may remain on the 24-hour shift schedule. Effective January 1, 2016, Fire District Dispatchers (REWA) and Senior Fire District Dispatchers (RETA) hired after January 1, 2015, can be moved to twelve hour shifts at the District’s discretion. After the District establishes twelve hour shifts, existing center personnel hired prior to January 1, 2015, may request to transition to the 12 hour shift at their option, however this transition shall be deemed permanent and they may not revert back to the 24 hour shift. Local 1230 agrees to re-open the contract to discuss the consolidation of County and Fire Dispatch operations. Paramedic Pay Differentials (Section 32) Language has been modified to reflect the classifications eligible to receive this differential. Scope of Agreement (Section 39.1) Any past side letters or any other agreements that are not incorporated into or attached to this MOU are deemed expired upon approval of this MOU by the Board of Supervisors. Sections Deleted Meet and Confer (Section 5.17) Home Garaging (Section 25) Paramedic Staffing (Section 33) CONSEQUENCE OF NEGATIVE ACTION: The District will continue to be out of contract with United Professional Firefighters, Local 1230 and may experience recruitment and retention difficulties. CHILDREN'S IMPACT STATEMENT: Not applicable. CLERK'S ADDENDUM Speakers:  Vince Wells, President Local 1230.  ATTACHMENTS Resolution No. 2014/5 IAFF, Local 1230 MOU 7-1-14 thru 6-30-17 3200 N. Central Ave., Suite 2200 • Phoenix, AZ 85012-2425 602.864.3500 • 602.864.3535 fax July 8, 2014 Ms. Lisa Driscoll Finance Director Contra Costa County 651 Pine Street, 10th floor Martinez, CA 94553 Re: Complying with California Government Code Section 7507 Regarding Changes to Pension Benefits of United Professional Firefighters, Local 1230 Dear Ms. Driscoll: We have been asked to estimate the effect on the County’s current and future unfunded actuarial accrued liabilities and Annual Required Contributions resulting from a new tier of benefits in the structure of Assembly Bill 340 (AB340) with a 2.00% Cost of Living Adjustment (COLA) effective on January 1, 2015 or alternatively, effective July 1, 2015. Both dates are used as potential effective dates for the proposed change for the members of the United Professional Firefighters, Local 1230 (Local 1230). We are comparing this benefit structure to the AB340 structure with a 3.00% COLA which the plan currently provides. We have analyzed the changes both combined and separating the safety and the non-safety. Because this change affects only future employees, it will have no effect on the unfunded actuarial accrued liabilities of Contra Costa County Employees’ Retirement Association (CCCERA) as of the effective date. We show the cost impacts in the charts below assuming one Non-Safety hire per year and one Safety hire per year. The costs shown are combined employee and employer normal costs. By going from a 3.00% COLA to a 2.00% COLA, the County will realize a savings. The savings are equal to the excess of the normal cost for an AB340 structure with a 3.00% COLA over the normal cost of an AB340 structure with a 2.00% COLA. We have expressed the savings in annual dollar amounts and as percentages of covered payroll for calendar years 2015, 2016, 2017, and 2018. These results are merely illustrative and the actual impact will depend upon the actual demographic characteristics of the employees as well as the pattern of future hiring. Ms. Lisa Driscoll July 8, 2014 Page 2 Future actuarial measurements may differ significantly from the current measurement presented in this report due to such factors as: plan experience different from that anticipated by the economic and demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements; and changes in plan provisions or applicable law. Due to the limited scope of this report, an analysis of the potential range of such future measurements has not been performed. The methods and assumptions used are the same as those used in the December 31, 2012, actuarial valuation of CCCERA. Information on our new entrant profile is given in Note 2 of the enclosed projections. The report was prepared under the supervision of Charlie Chittenden and Stephen Drake. Both are Enrolled Actuaries and Members of the American Academy of Actuaries. Charlie is a Fellow and Stephen is an Associate of the Society of Actuaries. Both meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this report. This report has been prepared in accordance with all Applicable Actuarial Standards of Practice. We are available to answer any questions on the material contained in the report, or to provide explanations or further details as may be appropriate. Sincerely, Charles E. Chittenden, FSA, EA, MAAA Stephen Drake, ASA, EA, MAAA Principal and Consulting Actuary Director, Retirement Actuary Ms. Lisa Driscoll July 8, 2014 Page 3 Local 1230 Combined - Non-Safety and Safety (January 1, 2015) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee from Safety and one active employee from Non‐ safety at January 1 of each projection year.  The total of the annual valuation pay amounts at entry are  assumed to be $139,300, $144,200, and $149,200 for the 2015, 2016, and 2017 hires, respectively.   The average age at entry for new hires is assumed to be 34.  3. The maximum compensation limit for the retirement benefit is assumed to be $117,365 for non‐safety  and $140,838 (120% of $117,365) for safety for 2015 and it is expected to grow 2.00% per year.  4. The benefit multiplier is different for safety and non‐safety.  See footnote 4 of the individual safety  and non‐safety pages following for a description of the benefits.  Ms. Lisa Driscoll July 8, 2014 Page 4 Local 1230 Combined - Non-Safety and Safety (July 1, 2015 Effective Date) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee from Safety and one active employee from Non‐safety  at July 1 of each projection year.  The total of the annual valuation pay amounts at entry are assumed to be  $139,300, $144,200, $149,200, and $154,400 for the 2015, 2016, 2017, and 2018 hires, respectively.  The  average age at entry for new hires is assumed to be 34.  3. The maximum compensation limit for the retirement benefit is assumed to be $117,365 for non‐safety and  $140,838 (120% of $117,365) for safety for 2015 and it is expected to grow 2.00% per year.  4. The benefit multiplier is different for safety and non‐safety.  See footnote 4 of the individual safety and  non‐safety pages following for a description of the benefits.      Ms. Lisa Driscoll July 8, 2014 Page 5   Local 1230 - Non-Safety (January 1, 2015 Effective Date) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee at January 1 of each projection year.  The annual  valuation pay amounts at entry are assumed to be $63,200, $65,400, and $67,700 for the 2015, 2016,  and 2017 hires, respectively.  The age at entry for new hires is assumed to be 35.  3. The maximum compensation limit for the retirement benefit is assumed to be $117,365 for 2015 and  it is expected to grow 2.00% per year.  4. In the AB340 benefit structure, the multiplier is 2% at 62.  The multiplier increases by 0.1% for ages  above 62 to a maximum of 2.5% at 67.  It decreases by 0.1% for ages below 62 to a minimum of 1.0%  at 52.    Ms. Lisa Driscoll July 8, 2014 Page 6   Local 1230 - Non-Safety (July 1, 2015 Effective Date) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee at July 1 of each projection year.  The annual valuation  pay amounts at entry are assumed to be $63,200, $65,400, $67,700, and $70,100 for the 2015, 2016, 2017,  and 2018 hires, respectively.  The age at entry for new hires is assumed to be 35.  3. The maximum compensation limit for the retirement benefit is assumed to be $117,365 for 2015 and it is  expected to grow 2.00% per year.  4. In the AB340 benefit structure, the multiplier is 2% at 62.  The multiplier increases by 0.1% for ages above  62 to a maximum of 2.5% at 67.  It decreases by 0.1% for ages below 62 to a minimum of 1.0% at 52.      Ms. Lisa Driscoll July 8, 2014 Page 7   Local 1230 - Safety (January 1, 2015 Effective Date) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee at July 1 of each projection year.  The annual  valuation pay amounts at entry are assumed to be $76,100, $78,800, and $81,600 for the 2015, 2016,  and 2017 hires, respectively.  The age at entry for new hires is assumed to be 33.  3. The maximum compensation limit for the retirement benefit is assumed to be 120% of $117,365, or  $140,838 for 2015 and it is expected to grow 2.00% per year.  4. In the AB340 benefit structure, the multiplier is 2.5% at 55. The multiplier increases by 0.1% for ages  above 55 to a maximum of 2.7% at 57. It decreases by 0.1% for ages below 55 to a minimum of 2.0%  at 50.    Ms. Lisa Driscoll July 8, 2014 Page 8   Local 1230 - Safety (July 1, 2015 Effective Date) Notes:  1. The methods and assumptions used to determine the savings were the same as those used for the  December 31, 2012, valuation.  2. The county is assumed to hire one active employee at July 1 of each projection year.  The annual  valuation pay amounts at entry are assumed to be $76,100, $78,800, $81,600, and $84,500 for the  2015, 2016, 2017, and 2018 hires, respectively.  The age at entry for new hires is assumed to be 33.  3. The maximum compensation limit for the retirement benefit is assumed to be 120% of $117,365, or  $140,838 for 2015 and it is expected to grow 2.00% per year.  4. In the AB340 benefit structure, the multiplier is 2.5% at 55. The multiplier increases by 0.1% for ages  above 55 to a maximum of 2.7% at 57. It decreases by 0.1% for ages below 55 to a minimum of 2.0%  at 50.