Agenda — Fountain Valley City Council, June 4, 2024 (part 4 of 5)

192

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

CHLORINE GENERATORS
Project Number: TBD
Funding Source: Water Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: 2024/2025
Project Description:

Each of the City’s six wells utilizes On-Site Sodium Hypochlorite Generation Systems (OSHGS) to provide disinfection for the potable water system. This project will replace the OSHGS at one well per year as they have exceeded their life expectancy of ten years and are requiring additional maintenance as well as producing a lower strength solution.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Water Fund $100,000 $100,000
TOTAL $100,000 $100,000

Page 379 ends

193

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

WATER DELIVERY (SCADA UMC SERVER/PC/VIDEO WALL REPLACEMENT) Project Number: TBD
Funding Source: Water Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: 2024/2025
Project Description:

The City’s Water Utility system is carefully managed by a Supervisory Control Data Acquisition System (SCADA). The SCADA system is a computer-based control with several backup features.

The SCADA system enables 24-hour remote monitoring and control of the various water system facilities, flood control pump stations, and the sewer lift station in the City from a central station located at the City’s Field Services Operation Yard. This project is to replace the SCADA’s User Management Component (UMC) server, computer, and the video wall display.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Water Fund $750,000 $750,000
TOTAL $750,000 $750,000

Page 380 ends

194

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

WATER MASTER PLAN
Project Number: TBD
Funding Source: Water Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: 2024/2025
Project Description:

This project is for the update of the City’s water master plan to help the City assess the City’s water infrastructure and to help develop the City’s future water capital improvement program and fiscal plan.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Water Fund $600,000 $600,000
TOTAL $600,000 $600,000

Page 381 ends

195

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

WELL FACILITY DROUGHT TOLERANT LANDSCAPE IMPROVEMENTS
Project Number: TBD
Funding Source: Water Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: 2024/2025
Project Description:

This project is for the installation of drought tolerant landscape around the perimeter of the six well facilities in the City of Fountain Valley.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Water Fund $300,000 $300,000
TOTAL $300,000 $300,000

Page 382 ends

196
FUND 501
FY 2021
Actual
FY 2022
Actual
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Revised
Budget
FY 2025
Proposed
Budget
41000 INTEREST 76,419 71,254 136,574 118,250 118,250 210,300 41010 GAIN/LOSS ON INVESTMENTS (78,217) (266,643) (37,873) - - - 42751 LATE CHARGES/PENALTIES 7,270 19,855 21,426 14,000 14,000 15,000 42900 ASSESSMENTS 7,754 17,787 409 9,000 9,000 4,000
43003 OCTA AGREEMENT 327 - - - - -
45200 RECOVERY OF EXPENSE 69,000 - - - - -
46400 SEWER FEE 2,229,352 2,368,894 2,434,321 2,396,310 2,396,310 2,400,000 46401 SEWER CONNECTION FEE 143,372 9,310 78,200 100,000 100,000 100,000 2,455,277 2,220,458 2,633,057 2,637,560 2,637,560 2,729,300 SALARIES, WAGES, SPECIAL PAYS 358,807 317,593 414,627 525,165 525,165 597,930 BENEFITS, INSURANCE 209,590 202,767 145,585 166,985 166,985 231,510 POST EMPLOYEMENT EXPENSES (163,215) 132,145 (293,315) - - - TOTAL PERSONNEL-SALARIES & BENEFITS 405,181 652,506 266,897 692,150 692,150 829,440 52000 EQUIPMENT 1,619 1,129 2,036 2,285 2,285 3,395
52001 GENERAL GOVN'T BUILDINGS 5,894 8,079 14,306 12,165 12,165 10,395 52002 INFORMATION PROCESSING 8,099 8,626 9,946 15,400 15,400 15,390 52003 SELF INSURANCE 41,927 40,433 51,725 54,345 54,345 66,455 52004 VEHICLE MAINTENANCE 244,441 170,237 220,286 205,245 205,245 170,705 52005 CAPTL. EQ. ADDITION/RETIRED (1,994,525) - (198,770) - - - TOTAL INTERNAL SERVICE CHARGES (1,692,545) 228,504 99,529 289,440 289,440 266,340 53003 PROFESSIONAL SERVICES 34,401 67,669 32,009 135,000 135,000 239,222 53007 CONTRACT SERVICES 2,720 1,220 - 52,000 52,000 53,000 53015 OFFICE SUPPLIES - - - - - 1,000
53031 ELECTRICITY 3,231 3,285 4,585 6,000 6,000 6,000
53035 CELLPHONES/IPADS 769 132 34 1,584 2,634 1,584
53052 EDUCATIONAL MEETINGS-EMP 531 165 269 700 700 1,000 53054 MEMBERSHIP DUES 1,167 1,081 1,011 1,600 550 1,600 53058 SAFETY APPAREL & SUPPLIES 3,073 2,720 2,459 4,000 4,000 4,000 53080 COMPENSATED ABSENCES (9,108) (18,267) (9,405) - - - 53511 DEPRECIATION 334,899 341,981 341,981 - - -
53512 BAD DEBT EXPENSE 2,333 (1,431) 7,727 7,000 7,000 8,000 53526 LAUNDRY SERVICES/SUPPLIES 487 483 432 775 870 910 53540 MS4/WASTE WATER PERMIT 57,525 58,446 67,732 110,000 110,000 112,000 53580 WELLS/LIFT/RES M&R 370 2,814 153 3,000 3,000 9,500 53581 DISTRIBUTION SYSTEMS M & R 23,590 26,347 18,442 30,000 30,000 45,000 TOTAL OPERATING EXPENSES 455,989 486,646 467,428 351,659 351,754 482,816

OPERATING EXPENSES

ENTERPRISE FUNDS

SEWER ASSESSMENT

REVENUES

TOTAL REVENUES

EXPENDITURES

PERSONNEL-SALARIES & BENEFITS

INTERNAL SERVICE CHARGES
197

Page 383 ends

Sewer Assessment Continued
FY 2021
Actual
FY 2022
Actual
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Revised
Budget
FY 2025
Proposed
Budget
55500 HAND TOOLS 452 912 786 1,000 1,000 1,000
55510 OTHER CAPITAL IMPROVEMENTS - - - 910,000 1,060,000 760,000 55522 SEWER LINES 2,017,442 - 198,770 200,000 200,000 3,700,000 58006 TRANSFER OUT EMPLOYEE BENEFITS 124,760 139,030 134,126 144,140 144,140 - 58009 TRANSFERS OUT GAS TAX 53,350 42,600 30,000 - - -
58011 TRANSFERS OUT TRAFFIC IMPRVMNT 6,240 23,580 30,000 - - - 58100 TRANSFERS OUT - GENERAL FUND 53,752 63,477 62,605 101,470 101,470 70,740 58300 TRANSFERS OUT - CIP - - - 70,000 111,656 142,000
TOTAL CAPITAL, EQUIP, & CONTRIBUTIONS 2,255,996 269,599 456,287 1,426,610 1,618,266 4,673,740 1,424,621 1,637,255 1,290,141 2,759,859 2,951,610 6,252,336 1,030,655 583,202 1,342,915 (122,299) (314,050) (3,523,036) 12,515,364 13,546,019 14,129,221 15,472,137 15,472,137 15,158,087 $ 13,546,019 $ 14,129,221 $ 15,472,137 $ 15,349,838 $ 15,158,087 $ 11,635,051

CAPITAL, EQUIP, & CONTRIBUTIONS

TOTAL EXPENDITURES

BEGINNING FUND BALANCE

ENDING FUND BALANCE

NET CHANGE IN FUND BALANCE
198

Page 384 ends

Project Description General Fund Measure HH Gas Tax RMRA Measure M AQMD Water Sewer Solid Waste Proj # 100 100 240 241 243 244 500 501 502
FUND 501 - SEWER UTILITY
Rehab Sewer Manholes 24040 310,000 310,000
Sewer Master Plan (SF615) 24041 450,000 450,000
Structural Improvements (SF627) FY24 Design 24042 200,000 200,000 Structural Improvements (SF627) FY25 Construction 24042 3,500,000 3,500,000 TOTAL 4,460,000 - - - - - - 4,460,000
City of Fountain Valley
Capital Improvement Plan - Sewer Utility Fund
FY 2024-25
Funding Source
Total
Budget
199 Page 385

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

SEWER MANHOLES REHABILITATION
Project Number: TBD
Funding Source: Sewer Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: Reoccurring
Project Description:

This project will provide sewer manholes improvements at various locations throughout the City.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Sewer Tax $310,000 $100,000 $410,000
TOTAL $310,000 $100,000 $410,000

Page 386 ends

200

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

SEWER MASTER PLAN
Project Number: TBD
Funding Source: Sewer Fund
Estimated Start Date: 2024/2025
Estimated Completion Date: 2024/2025
Project Description:

This is for consulting services to help the City update its Sewer Master Plan.

BUDGET DETAIL
Funding Source 2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Sewer Tax $450,000 $450,000
TOTAL $450,000 $450,000

Page 387 ends

201

CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS

SEWER STRUCTURAL IMPROVEMENTS
Project Number: 24042
Funding Source: Sewer Fund
Estimated Start Date: 2023/2024
Estimated Completion Date: Reoccurring
Project Description:

Sewer pipe improvements at 13 different locations throughout the City. Following the design work are the structural improvements, which will result in the reduction of potential sewage overflows.

BUDGET DETAIL
Funding Source Prior Year(s)
Actual
2024/25
Budget 2025/26 2026/27 2027/28 2028/29 TOTAL
Design:

Sewer Fund $68,470 $200,000 $350,000 $350,000 $968,470
Construction:

Sewer Fund $3,500,000 $3,500,000 $3,500,000 $10,500,000 TOTAL $68,470 $3,700,000 $350,000 $3,500,000 $350,000 $3,500,000 $11,468,470

Page 388 ends

202
FUND 502
FY 2021
Actual
FY 2022
Actual
FY 2023
Actual
FY 2024
Adopted
Budget
FY 2024
Revised
Budget
FY 2025
Proposed
Budget
41000 INTEREST 8,170 7,299 14,749 12,450 12,450 21,250
42751 LATE CHARGES/PENALTIES 12,497 35,035 38,967 32,000 32,000 32,000 44011 STATE GRANTS - - 38,923 - 54,422 187,300
46600 REFUSE SERVICE FEE 3,743,040 3,876,895 4,470,074 4,200,000 4,200,000 4,500,000 3,763,707 3,919,230 4,562,712 4,244,450 4,298,872 4,740,550 53003 PROFESSIONAL SERVICES - 15,000 12,688 100,000 100,000 141,552 53006 NON-PROF SERVICES 568,437 575,236 614,921 610,000 610,000 675,000 53010 SERVICE CONTRACTS 2,951,664 3,052,999 3,561,358 3,500,000 3,500,000 4,052,185 53061 ACCOUNT COLLECTION EXPENSE 210,338 210,470 210,876 209,000 209,000 234,000 53512 BAD DEBT EXPENSE 2,976 (1,811) 9,042 3,000 3,000 4,000 53564 OTHER EQUIP - - 28,923 - 54,422 187,300
TOTAL OPERATING EXPENSES 3,733,415 3,851,893 4,437,807 4,422,000 4,476,422 5,294,037 58300 TRANSFERS OUT - CIP - - - - - 98,235
TOTAL CAPITAL, EQUIP, & CONTRIBUTIONS - - - - - 98,235
3,733,415 3,851,893 4,437,807 4,422,000 4,476,422 5,392,272 30,292 67,337 124,905 (177,550) (177,550) (651,722)
1,009,021 1,039,314 1,106,650 1,231,555 1,231,555 1,054,005 $ 1,039,314 $ 1,106,650 $ 1,231,555 $ 1,054,005 $ 1,054,005 $ 402,283

CAPITAL, EQUIP, & CONTRIBUTIONS

ENTERPRISE FUNDS

SOLID WASTE

BEGINNING FUND BALANCE

ENDING FUND BALANCE

REVENUES

TOTAL REVENUES

EXPENDITURES

OPERATING EXPENSES

TOTAL EXPENDITURES

NET CHANGE IN FUND BALANCE
203

Page 389 ends

APPENDIX
204

Page 390 ends

CITY OF FOUNTAIN VALLEY

RESPONSIBLE SPENDING PLEDGE
The City of Fountain Valley’s mission is to deliver cost-effective quality public services to provide a safe and desirable community that enriches its residents and businesses.

The City goals are to:
• Enhance economic development
• Achieve financial stability
• Attract, develop and retain quality staff within financial constraints • Maintain and enhance infrastructure and facilities
• Enhance community outreach and engagement
The Pledge: The City of Fountain Valley is committed to sound financial policies that maximize the highest level of City services for the people of Fountain Valley. The City Council recognizes the need to protect the City’s assets and to ensure long-term financial sustainability.

The City of Fountain Valley, like many cities in California, is experiencing significant financial challenges.

This is due to the continued state revenue take-away; dissolution of redevelopment and increased costs which are out of the City’s control. The City has taken significate steps to cut costs including permanent staff reductions, reduced benefits, employee pickup of costs, and contracting out services. The City of Fountain Valley is a built out bedroom community, which has limited ability to generate significant new revenues, to cover the cost of a growing structural budget deficit. This has impacted City services.

Therefore, in the event there are any significant increases in the City of Fountain Valley’s revenues, we believe that the majority of this money should be used to maintain:
• Essential City services including public safety / 911 emergency response; • Keep Fire Station 2 open and maintain firefighter / paramedics; • Police Station and Police officers; restore anti-gang / drug programs; • Senior and youth programs;
• Streets / sidewalks / roadways and repair storm water systems • Parks and play equipment; and
• Provide other essential City services.

We also believe, that whenever additional revenue gains are realized, City leadership should seek opportunities to:
• Pay off, pay down, consolidate or refinance the City’s outstanding debt; • Pay down unfunded liabilities; and
• Rebuild and maintain the City’s established reserves levels. (Such reserve policies have been adopted to protect the residents of Fountain Valley in the event of a natural disaster or severe economic downturn and for working cash flow and to fund “pay-go” capital projects.) Finally, the City Council believes this pledge is a clear guide to helping keep Fountain Valley a “Nice Place to Live”.

Adopted by the City Council on October 18, 2016. Ayes: Nagel, Vo, Collins, Brothers Noes:

McCurdy

Page 391 ends

205
Proposed 1 2345678
2021-2022
Actual
2022-2023
Actual
2023-2024
Budget
2024-2025
PROPOSED 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Revenues
Property Tax $ 22,019,180 $ 23,365,555 $ 23,997,740 $ 25,156,000 $ 26,380,680 $ 27,172,100 $ 27,987,263 $ 28,826,881 $ 29,691,688 $ 30,582,438 $ 31,499,912 Sales tax $ 16,091,255 $ 17,042,213 $ 16,650,000 $ 16,670,000 $ 17,003,400 $ 17,343,468 $ 17,690,337 $ 18,044,144 $ 18,405,027 $ 18,773,128 $ 19,148,590 Measure HH $ 17,162,175 $ 17,363,447 $ 17,250,000 $ 17,240,000 $ 17,584,800 $ 17,936,496 $ 18,295,226 $ 18,661,130 $ 19,034,353 $ 19,415,040 $ 19,803,341 Franchise Tax $ 2,088,568 $ 2,595,445 $ 2,410,000 $ 2,610,000 $ 2,636,100 $ 2,662,461 $ 2,689,086 $ 2,715,976 $ 2,743,136 $ 2,770,568 $ 2,798,273 Transient Occupancy Tax $ 1,305,350 $ 1,522,875 $ 1,496,000 $ 1,515,000 $ 1,530,150 $ 1,545,452 $ 1,560,906 $ 1,576,515 $ 1,592,280 $ 1,608,203 $ 1,624,285 Use of Money & Property $ (2,817,555) $ 2,239,414 $ 1,666,240 $ 1,931,220 $ 1,950,532 $ 1,970,038 $ 1,989,738 $ 2,009,635 $ 2,029,732 $ 2,050,029 $ 2,070,529 Other Revenues $ 2,510,238 $ 3,012,135 $ 2,487,515 $ 428,300 $ 432,583 $ 436,909 $ 441,278 $ 445,691 $ 450,148 $ 454,649 $ 459,196 Interfund Transfers $ 469,745 $ 564,438 $ 609,545 $ 2,708,535 $ 2,735,620 $ 2,762,977 $ 2,790,606 $ 2,818,512 $ 2,846,698 $ 2,875,164 $ 2,903,916 Finance Revenue $ 489,001 $ 522,618 $ 501,000 $ 509,000 $ 514,090 $ 519,231 $ 524,423 $ 529,667 $ 534,964 $ 540,314 $ 545,717 Planning Revenue $ 507,149 $ 460,059 $ 513,915 $ 424,390 $ 428,634 $ 432,920 $ 437,249 $ 441,622 $ 446,038 $ 450,499 $ 455,004 Building Revenue $ 1,695,364 $ 1,947,033 $ 1,531,000 $ 1,768,550 $ 1,786,236 $ 1,804,098 $ 1,822,139 $ 1,840,360 $ 1,858,764 $ 1,877,351 $ 1,896,125 Public Works Revenue $ 783,279 $ 891,993 $ 746,040 $ 1,248,240 $ 1,260,722 $ 1,273,330 $ 1,286,063 $ 1,298,924 $ 1,311,913 $ 1,325,032 $ 1,338,282 Fire Revenue $ 1,042,926 $ 694,596 $ 925,090 $ 1,084,500 $ 1,095,345 $ 1,106,298 $ 1,117,361 $ 1,128,535 $ 1,139,820 $ 1,151,219 $ 1,162,731 Ambulance Program $ 2,916,092 $ 2,585,640 $ 3,443,550 $ 4,220,000 $ 4,262,200 $ 4,304,822 $ 4,347,870 $ 4,391,349 $ 4,435,262 $ 4,479,615 $ 4,524,411 Police Revenue $ 861,148 $ 762,142 $ 740,750 $ 687,700 $ 694,577 $ 701,523 $ 708,538 $ 715,623 $ 722,780 $ 730,007 $ 737,307 Community Services Revenue $ 819,932 $ 987,761 $ 1,306,000 $ 1,102,900 $ 1,113,929 $ 1,125,068 $ 1,136,319 $ 1,147,682 $ 1,159,159 $ 1,170,751 $ 1,182,458 Grants/ Projects $ 8,123,738 $ 1,035,671 $ 2,216,000 $ 880,000 $ 888,800 $ 897,688 $ 906,665 $ 915,732 $ 924,889 $ 934,138 $ 943,479 Advertising Revenue -$ -$ -$ $ - -$ -$ $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Total Revenues $ 76,067,585 $ 77,593,035 $ 78,490,385 $ 80,184,335 $ 82,298,398 $ 83,994,878 $ 87,231,068 $ 89,007,980 $ 90,826,650 $ 92,688,144 $ 94,593,556 Expenses
Personnel Expenses $ 31,211,008 $ 33,408,224 $ 37,091,685 $ 41,578,110 $ 43,657,016 $ 45,839,866 $ 48,131,860 $ 49,094,497 $ 50,076,387 $ 51,077,914 $ 52,099,473 Internal Service Charges $ 7,983,683 $ 8,352,754 $ 9,185,735 $ 9,394,110 $ 9,104,502 $ 9,286,592 $ 9,472,324 $ 9,661,770 $ 9,855,006 $ 10,052,106 $ 10,253,148 Operating Expenses $ 5,802,948 $ 8,439,647 $ 10,694,714 $ 11,273,770 $ 11,499,245 $ 11,614,238 $ 11,730,380 $ 11,847,684 $ 11,966,161 $ 12,085,822 $ 12,206,681 Ambulance Program (contract) $ 1,837,355 $ 1,535,954 $ 2,522,426 $ 2,604,115 $ 2,656,197 $ 2,709,321 $ 2,763,508 $ 2,818,778 $ 2,875,153 $ 2,932,656 $ 2,991,310 Debt Service (annual) $ 2,333,870 $ 2,391,903 $ 2,440,685 $ 2,489,470 $ 2,537,806 $ 2,599,177 $ 2,658,482 $ 2,712,512 $ 2,780,863 $ 1,945,213 $ 1,981,537 Transfers out $ 2,248,102 $ 500,104 $ 1,268,220 $ - -$ -$ -$ -$ -$ -$ -$ PERS UAL Payment $ 7,319,996 $ 7,115,906 $ 6,877,100 $ 8,313,165 $8,146,902 $8,065,433 $7,984,778 $7,904,931 $7,825,881 $7,747,622 $7,670,146 OPEB ARC funding -$ -$ -$ $ - -$ 1,423,086 $ $ 1,623,540 $ 2,000,000 -$ -$ -$ CalPERS UAL Additional payments $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 Total Expenses $ 61,736,962 $ 64,744,492 $ 73,080,565 $ 78,652,740 $ 80,601,668 $ 84,537,713 $ 87,364,872 $ 89,040,171 $ 88,379,451 $ 88,841,334 $ 90,202,294 Total Operating Surplus/(Deficit) $ 14,330,623 $ 12,848,543 $ 5,409,820 $ 1,531,595 $ 1,696,730 $ (542,835) $ (133,804) $ (32,191) $ 2,447,199 $ 3,846,810 $ 4,391,262 Capital Projects $ 1,451,895 $ 11,205,956 $ 6,253,510 $ 7,659,205 $ 1,000,000 $ 1,000,000 $ 12,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Facility Capital Fund -$ -$ -$ $ 1,000,000 - $ $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Total Surplus/(Deficit) $ 12,878,728 $ 1,642,586 $ (843,690) $ (6,127,610) $ (303,270) $ (2,542,835) $ (13,133,804) $ (2,032,191) $ 447,199 $ 1,846,810 $ 2,391,262 Beginning Fund Balance $ 59,586,963 $ 72,465,691 $ 74,108,277 $ 73,264,587 $ 67,136,977 $ 66,833,707 $ 64,290,872 $ 51,157,068 $ 49,124,877 $ 49,572,076 $ 51,418,886

RESERVES
Nonspendable $ 162,407 $ 1,216,221 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 Restricted $ 2,790,475 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 Committed for Emergencies $ 18,426,000 $ 18,426,000 $ 18,426,000 $ 18,650,500 $ 19,023,510 $ 19,403,980 $ 19,792,060 $ 20,187,901 $ 20,591,659 $ 21,003,492 $ 21,423,562 Pension Reserves $ 11,120,701 $ 15,799,650 $ 15,799,650 $ 15,799,650 $ 16,589,633 $ 17,419,114 $ 18,919,114 $ 20,419,114 $ 21,919,114 $ 23,419,114 $ 24,919,114 Benefits Reserve $ 2,422,709 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 Econ. Development Reserves $ 2,130,501 $ 1,956,806 $ 1,956,806 $ 1,956,806 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 Contingency Reserves $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Measure HH Reserves -$ 20,904,064 $ $ 20,060,374 $ 18,097,739 $ 16,597,739 $ 15,097,739 $ 13,597,739 $ 12,097,739 $ 10,597,739 $ 9,097,739 $ 7,597,739 Capital Reserves $ 35,592,386 $ 9,950,427 $ 10,320,741 $ 5,161,536 $ 6,010,668 $ 3,757,880 $ (9,764,003) $ (12,192,035) $ (12,148,594) $ (10,713,617) $ (8,742,425) Unassigned $ (679,488) $ 219,359 $ 219,359 $ 989,089 -$ -$ -$ -$ -$ -$ -$ Ending Fund Balance $ 72,465,691 $ 74,108,277 $ 73,264,587 $ 67,136,977 $ 66,833,707 $ 64,290,872 $ 51,157,068 $ 49,124,877 $ 49,572,076 $ 51,418,886 $ 53,810,148 20 YEAR PLAN - FY 2024-25 PROPOSED BUDGET
6/4/2024

Page 392 ends

206
Continued
9 101112 13 14151617181920
2032-2033 2033-2034 2034-2035 2035-2036 2036-2037 2037-2038* 2038-2039 2039-2040 2040-2041 2041-2042 2042-2043 2042-2044 $ 32,444,909 $ 33,418,256 $ 34,754,986 $ 36,145,186 $ 37,590,993 $ 39,094,633 $ 40,658,418 $ 42,284,755 $ 43,976,145 $ 45,735,191 $ 47,564,599 $ 49,467,183 $ 19,531,562 $ 19,922,193 $ 20,320,637 $ 20,727,050 $ 21,141,591 $ 21,564,423 $ 21,995,711 $ 22,435,625 $ 22,884,338 $ 23,342,024 $ 23,808,865 $ 24,285,042 $ 20,199,408 $ 20,603,396 $ 21,015,464 $ 21,435,773 $ 16,398,366 -$ -$ -$ -$ -$ -$ -$ $ 2,826,256 $ 2,854,519 $ 2,883,064 $ 2,911,894 $ 2,941,013 $ 2,970,423 $ 3,000,128 $ 3,030,129 $ 3,060,430 $ 3,091,035 $ 3,121,945 $ 3,153,164 $ 1,640,528 $ 1,656,933 $ 1,673,503 $ 1,690,238 $ 1,707,140 $ 1,724,211 $ 1,741,453 $ 1,758,868 $ 1,776,457 $ 1,794,221 $ 1,812,163 $ 1,830,285 $ 2,091,235 $ 2,112,147 $ 2,133,268 $ 2,154,601 $ 2,176,147 $ 2,197,909 $ 2,219,888 $ 2,242,086 $ 2,264,507 $ 2,287,152 $ 2,310,024 $ 2,333,124 $ 463,788 $ 468,425 $ 473,110 $ 477,841 $ 482,619 $ 487,445 $ 492,320 $ 497,243 $ 502,215 $ 507,238 $ 512,310 $ 517,433 $ 2,932,955 $ 2,962,285 $ 2,991,908 $ 3,021,827 $ 3,052,045 $ 3,082,565 $ 3,113,391 $ 3,144,525 $ 3,175,970 $ 3,207,730 $ 3,239,807 $ 3,272,205 $ 551,174 $ 556,686 $ 562,253 $ 567,875 $ 573,554 $ 579,289 $ 585,082 $ 590,933 $ 596,843 $ 602,811 $ 608,839 $ 614,927 $ 459,554 $ 464,149 $ 468,791 $ 473,478 $ 478,213 $ 482,995 $ 487,825 $ 492,704 $ 497,631 $ 502,607 $ 507,633 $ 512,709 $ 1,915,086 $ 1,934,237 $ 1,953,579 $ 1,973,115 $ 1,992,846 $ 2,012,775 $ 2,032,903 $ 2,053,232 $ 2,073,764 $ 2,094,502 $ 2,115,447 $ 2,136,601 $ 1,351,665 $ 1,365,182 $ 1,378,834 $ 1,392,622 $ 1,406,548 $ 1,420,614 $ 1,434,820 $ 1,449,168 $ 1,463,660 $ 1,478,296 $ 1,493,079 $ 1,508,010 $ 1,174,358 $ 1,186,102 $ 1,197,963 $ 1,209,942 $ 1,222,042 $ 1,234,262 $ 1,246,605 $ 1,259,071 $ 1,271,662 $ 1,284,378 $ 1,297,222 $ 1,310,194 $ 4,569,655 $ 4,615,352 $ 4,661,505 $ 4,708,120 $ 4,755,202 $ 4,802,754 $ 4,850,781 $ 4,899,289 $ 4,948,282 $ 4,997,765 $ 5,047,742 $ 5,098,220 $ 744,681 $ 752,127 $ 759,649 $ 767,245 $ 774,918 $ 782,667 $ 790,493 $ 798,398 $ 806,382 $ 814,446 $ 822,591 $ 830,817 $ 1,194,283 $ 1,206,225 $ 1,218,288 $ 1,230,471 $ 1,242,775 $ 1,255,203 $ 1,267,755 $ 1,280,433 $ 1,293,237 $ 1,306,169 $ 1,319,231 $ 1,332,423 $ 952,914 $ 962,443 $ 972,067 $ 981,788 $ 991,606 $ 1,001,522 $ 1,011,537 $ 1,021,653 $ 1,031,869 $ 1,042,188 $ 1,052,610 $ 1,063,136 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 96,544,009 $ 98,540,657 $ 100,918,867 $ 103,369,067 $ 100,427,619 $ 86,193,691 $ 88,429,111 $ 90,738,112 $ 93,123,392 $ 95,587,753 $ 98,134,107 $ 100,765,474 $ 53,141,462 $ 54,204,291 $ 55,288,377 $ 56,394,145 $ 57,522,028 $ 58,672,468 $ 59,845,918 $ 61,042,836 $ 62,263,693 $ 63,508,967 $ 64,779,146 $ 66,074,729 $ 10,458,211 $ 10,562,793 $ 10,668,421 $ 10,775,105 $ 10,882,856 $ 10,991,685 $ 11,101,602 $ 11,212,618 $ 11,324,744 $ 11,437,991 $ 11,552,371 $ 11,667,895 $ 12,328,748 $ 12,452,035 $ 12,576,555 $ 12,702,321 $ 12,829,344 $ 12,957,638 $ 13,087,214 $ 13,218,086 $ 13,350,267 $ 13,483,770 $ 13,618,607 $ 13,754,793 $ 3,051,136 $ 3,112,158 $ 3,174,402 $ 3,237,890 $ 3,302,647 $ 3,368,700 $ 3,436,074 $ 3,504,796 $ 3,574,892 $ 3,646,390 $ 3,719,317 $ 3,793,704 $ 2,017,494 $ 2,058,086 $ 2,094,515 $ 2,131,154 $ 979,087 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ $ - -$ -$ -$ -$ -$ -$ -$
$7,593,445 $7,517,510 $7,442,335 $7,367,912 $7,294,233 $70,721 $72,908 $74,870 $76,176 $75,775 $75,775 $75,776 -$ -$ -$ -$ $ - -$ -$ -$ -$ -$
$ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 -$ -$ -$ -$ -$ $ 91,590,495 $ 92,906,874 $ 94,244,606 $ 95,608,526 $ 95,810,195 $ 86,061,212 $ 87,543,715 $ 89,053,206 $ 90,589,771 $ 92,152,892 $ 93,745,217 $ 95,366,897 $ 4,953,514 $ 5,633,783 $ 6,674,262 $ 7,760,540 $ 4,617,424 $ 132,479 $ 885,395 $ 1,684,906 $ 2,533,621 $ 3,434,861 $ 4,388,890 $ 5,398,577 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 2,953,514 $ 3,633,783 $ 4,674,262 $ 5,760,540 $ 2,617,424 $ (1,867,521) $ (1,114,605) $ (315,094) $ 533,621 $ 1,434,861 $ 2,388,890 $ 3,398,577 $ 53,810,148 $ 56,763,663 $ 60,397,446 $ 65,071,707 $ 70,832,248 $ 73,449,672 $ 71,582,151 $ 70,467,546 $ 70,152,452 $ 70,686,073 $ 72,120,933 $ 74,509,823 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 845,907 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 2,713,040 $ 21,852,033 $ 22,289,074 $ 22,734,855 $ 23,189,553 $ 20,646,976 $ 11,860,432 $ 12,097,641 $ 12,339,594 $ 12,586,386 $ 12,838,113 $ 13,094,876 $ 13,356,773 $ 26,419,114 $ 27,419,114 $ 28,419,114 $ 29,419,114 $ 30,419,114 $ 31,419,114 $ 32,990,070 $ 34,639,573 $ 36,371,552 $ 38,190,130 $ 40,099,636 $ 42,104,618 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,422,710 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,501 $ 2,130,502 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 6,097,739 $ 5,097,739 $ 4,097,739 $ 3,097,739 $ 2,097,739 $ 1,097,739 -$ -$ -$ -$ -$ -$ $ (6,217,382) $ (3,020,639) $ 1,207,841 $ 6,513,684 $ 11,673,684 $ 18,592,707 $ 16,767,677 $ 14,561,127 $ 13,115,977 $ 12,480,532 $ 12,703,153 $ 13,834,850 -$ -$ -$ -$ $ - -$ -$ -$ -$ -$ -$ $ 1
$ 56,763,663 $ 60,397,446 $ 65,071,707 $ 70,832,248 $ 73,449,672 $ 71,582,151 $ 70,467,546 $ 70,152,452 $ 70,686,073 $ 72,120,933 $ 74,509,823 $ 77,908,400

PROJECTED
20 YEAR PLAN - FY 2024-25 PROPOSED BUDGET

Page 393 ends

207
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
www.fountainvalley.gov

Page 394 ends

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 4, 2024
Members of the City Council
SUBJECT: Approve the Employment Resolution related to wages, hours, terms and conditions of employment for the Administrative Officers.

Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☒ Attract and retain quality staff through best practices and trends ☐ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable
EXECUTIVE SUMMARY:

The current labor contracts for the individual groups are set to expire on June 30, 2024.

The City and the Administrative Officers group reached a tentative agreement based on the City Council’s review of the long-term 20-year budgeting forecast provided by the Finance Department. The data detailed sufficient revenue to provide a labor compensation package and reasonable salary increases to this group. The Council is also aware that CalPERS Pension obligations of the City are a large liability and addressing the ongoing pension costs and pension debt are key priorities. The total projected increase is 12.14% over three years.

DISCUSSION:

The City’s negotiating team met with representatives of the Administrative Officers bargaining group and came to terms on a new three-year agreement. The terms to be memorialized in a Resolution relating to wages, hours, and conditions of employment (hereinafter referred to as “Employment Resolution”), if adopted, would be effective July 1, 2024 through June 30, 2027. The terms of the new Resolution to include:

1. Term:
 3-year agreement, July 1, 2024-June 30, 2027

Page 395 ends

City Council Request
Adopt an Employment Resolution for Admin Officers
June 4, 2024

Page 2 ends

2. Base Salary Increases:

Base Salary Adjustment Effective Date Base Salary Adjustment Amount Pay Period Ending 7/5/2024 4%
Pay Period Ending 7/4/2025 4%
Pay Period Ending 7/3/2026 4%

3. Department Heads (non-safety): additional $250/month ($3,000/year) into 457 or 401a.

4. Chief of Police and Fire Chief:
o Uniform allowance annual reimbursement increased $1,000/year for each Chief. o Additional $2,000/year into 457 or 401a

5. 3-month salary/benefit upon severance. Accrual rate at 4 weeks per year.

Retroactive time for current Directors.

6. Increase administrative leave from 96 to 108 hours per year.

7. Provide a roll-over provision for unused administrative leave at end of year. Roll-over portion capped at 40 hours. No cash out provision for unused administrative leave.

8. City will deposit an additional $250 per month into each employee’s deferred compensation or 401a account for each Administrative Office who contributes $250 per month or more into the City’s deferred compensation or 401a plan.

9. Correct the Floating Holiday language to reflect regular hours scheduled per day.

10. Annually, Administrative Officers who use 20 hours of vacation and/or administrative leave in a calendar year and maintain an accrual of 20 hours of vacation leave (after vacation buy-back) may request to buy-back a maximum of 80 hours of vacation.

11. Include personal fitness equipment and body scans as a qualifier for reimbursement under wellness/fitness reimbursement provisions.

12. Amend RHS language to allow differing employee contribution rates.

13. Replace the names of specific health plans with “CalPERS PEMHCA” to conform with state law.

Other changes were made to conform with updates to State Law (e.g., revisions to Bereavement Leave) and to incorporate prior side letters (e.g., Retiree Health Savings Account).

Page 396 ends

City Council Request
Adopt a Resolution approving a MOU and an Employment Resolution June 4, 2024

Page 6 ends

FISCAL REVIEW:

The fiscal impact of the three-year package includes costs for employee compensation, benefits, and taxes.

Through the negotiation process, the City desires to provide consistency among bargaining groups, in both the economic benefit provided and the total cost to the City. Due to individual group cost structures and the need to address specific industry issues faced by each group, the total package costing has varied from group to group; however, the economic benefit provided has remained comparatively consistent.

Overall, the three-year Administrative Officers’ package represents an increase of

12.14% over the baseline cost. The projected costs have been included in the proposed FY 2024-25 Annual Budget. Subsequent year costs will be included in each individual fiscal year’s budget process.

Fountain Valley Admin Officers 2025 2026 2027 Total
3-Year Total Cost $ 2,396,070 $ 2,498,760 $ 2,598,115 $ 7,492,945 % Cost Increase over baseline 5.09% 3.00% 3.35% 12.14%
PUBLIC NOTIFICATION:

Agendized pursuant to the Ralph M Brown Act and an oral report will precede Council action.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney(s) for the City negotiated and prepared the Employment Resolution.

ALTERNATIVES:

Alternative No.1: Adopt an Employment Resolution relating to wages, hours, terms and conditions of employment for the
Administrative Officers.

Alternative No. 2: Do not approve the Employment Resolution

Page 397 ends

City Council Request
Adopt a Resolution approving a MOU and an Employment Resolution June 4, 2024

Page 6 ends

RECOMMENDATION:

It is recommended the City Council approve the following:

1. Adopt an Employment Resolution relating to wages, hours, terms and conditions of employment for the Administrative Officers.

Prepared by: Colin Burns, Attorney for the City
Fiscal Review by: Brianna Laszlo, Payroll Administrator Approved by: Maggie Le, City Manager
Attachment: 1. Resolution relating to wages, hours, terms and conditions of employment for the Administrative Officers.

Page 398 ends

- 1 -
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF FOUNTAIN VALLEY RELATING TO THE

CLASSIFICATION, COMPENSATION, AND TERMS

AND CONDITIONS OF EMPLOYMENT OF

ADMINISTRATIVE OFFICERS OF THE CITY, AND

SUPERSEDING ALL PROVISIONS CONTAINED IN
RESOLUTION NOS. 9801, 9849, AND 9866 WHICH
PERTAIN TO ADMINISTRATIVE OFFICERS.

WHEREAS, The City of Fountain Valley has non-represented Administrative Officers also referred to as Department Directors; and
WHEREAS, the City desires to include in one comprehensive document the current benefits and terms and conditions of employment for Administrative Officers; and
WHEREAS, the City has reached agreements with all represented bargaining groups which included changes to the existing salaries and benefits for represented employees; and
WHEREAS, the City intends to make changes to the existing salaries and benefits for Administrative Officers.

NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby resolve as follows:

SECTION 1. This Resolution shall supersede all provisions contained in Resolution Nos. 9801. 9849, and 9866 which pertain to Administrative Officers.

SECTION 2. The classification, compensation, and terms of employment for Professional and Technical employees, un-represented Professional and Technical employees, General Unit, Field Services Unit, sworn non- management Fire personnel, sworn management Fire personnel, sworn Police personnel, and sworn management Police personnel and the City Manager are set forth by separate

Page 399 ends

- 2 -
Resolutions of the City Council and the provisions herein set forth shall not apply to those employees.

SECTION 3 - DESIGNATED CLASSIFICATIONS.

The following is a listing of classifications designated as Administrative Officers:

CLASSIFICATION_Chief of Police
Fire Chief
Community Services Director
Deputy City Manager
Finance Director
Human Resources Director
Information Technology Director
Community Development Director
Community Development Director/Deputy City Manager
Director of Public Works
SECTION 4 - COMPENSATION.

A. The schedule of base salary rates for Administrative Officers shall adjust accordingly:
4% COLA effective pay period ending 7/5/24
4% COLA effective pay period ending 7/4/25
4% COLA effective pay period ending 7/3/26
B. Matching Deferred Compensation Contribution: The City will match up to $250 per month into each employee's 457 deferred compensation or 401a account for each Administrative Officer who contributes $250 per month or more into the City's 457 deferred compensation or 401a plan. a. Effective the pay period including July 1, 2024, the City will contribute an additional $250 per month ($3,000) per year into non-safety Administrative Officers’ 457 or 401a account.
b. Effective in the pay period including July 1, 2024, the City will contribute an additional $167 per month ($2,000) per year into the Chief of Police’s and Fire Chief’s 457 or 401a account.

Page 400 ends

- 3 -
C. Bilingual Pay:

Bilingual Pay is defined as compensation to employees who are routinely and consistently assigned to a position requiring communication skills in languages other than English. This is designated by CCR 571 (a) as special assignment pay.

An employee shall receive a Bilingual Premium of $75 per month if the following conditions are met:
a. An employee is required to speak in Spanish, Vietnamese, or other eligible language as part of the regular duties of his/her position. The Human Resources Director or his/her designee shall determine which languages will be eligible for bilingual pay based on the needs of the community.
b. The employee must successfully pass a proficiency test to certify that they are proficient in speaking and/or writing in Spanish, Vietnamese or other eligible language.

SECTION 5 - PAY FOR PERFORMANCE PLAN. The Pay for Performance Plan for eligible Administrative Officers shall consist of the following:

A. Five (5) step salary ranges for each position shall be established at 5% between each step. Placement within the range would be based on current salary plus existing adjustments.

B. At the time of employment, the employee shall have a salary anniversary date established. The date shall be the first day of the pay period which is one year from the employee's date of employment.

C. Upon promotion into a classification different than the one an employee is occupying, a new salary anniversary date shall be established, which shall be twelve (12) months from the effective date of the promotion.

Page 401 ends

- 4 -
D. Employees shall be eligible for subsequent merit (step) increases annually on the first day of the pay period following their anniversary date until they reach the fifth step.

E. At least one month prior to his/her salary anniversary date, the employee shall submit a memo to his/her Supervisor detailing his/her accomplishments during the rating period. The Supervisor shall then complete a Management Performance Evaluation.

F. Merit (step) increases will be based on the employee's Management Performance Evaluation. The employee must receive an overall performance evaluation rating of "Meets Expectations" or "Exceeds Expectations" to be eligible for a merit (step) increase to the next step within the salary range. An overall performance evaluation rating of "Needs Improvement" will not result in a merit (step) increase.

SECTION 6 - FAIR LABOR STANDARDS ACT EXEMPTION. Pursuant to the Fair
Labor Standards Act, the City hereby determines that Administrative Officers are exempt from both minimum wage and overtime provisions under the Executive Exemption.

The Fire Chief, in consideration for call outs, will receive a bank of 20 hours of compensatory leave time. The City Manager shall have sole discretion to issue additional compensatory leave time as needed or warranted.

SECTION 7 - UNIFORM ALLOWANCE. The uniform allowance is defined as compensation paid for the purchase and maintenance of required clothing, including clothing made from specially designed protective fabrics, which is a ready substitute for personal attire the employee would otherwise have to acquire and maintain. This excludes items that are solely for personal health and safety such as protective vests, pistols, bullets and safety shoes. Designated by CCR 571 (a) as statutory items.

A. Chief of Police. The City shall provide the Chief of Police with a uniform allowance in the amount of $2,200.00 per year and the allowance will be paid (as earned) in equal installments each pay period over the course of the calendar

Page 402 ends

- 5 -
year.
(Effective: 10/5/99; Revised 11116/10, 2116191, 9/1/2020, 7/01/2024) B. Fire Chief. The City shall provide the Fire Chief with a uniform allowance in the amount of $2000.00 per year and the allowance will be paid (as earned) in equal installments each pay period over the course of the calendar year. (Effective: 10/5/99; Revised 2/16/91, 9/11/2020, 7/9/2021, 07/01/2024) SECTION 8 - RETIREMENT. Administrative Officers shall be enrolled as members in the California Public Employees' Retirement System (CalPERS) and are subject to all applicable provisions of the City's contract with CalPERS.

A. Non-Safety Administrative Officers Initially Hired August 15, 2010 and Earlier.

Non- Safety Administrative Officers whose hire date as a full-time employee is effective August 15, 2010 and earlier will be covered under the 2.5% at 55 formula with the benefits specified below.

Provision Government Code
Section

2.5% at 55 formula 21354.4
One Year Final Compensation (Single Highest Year) 20042 Service Credit for Unused Sick Leave 20965
Post Retirement Survivor Allowance 21624, 21626 and
21635
Fourth Level of 1959 Survivor Benefit 21574
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps: VISTA
Service 21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Non-Profit Corporation 21026
Military Service Credit for Retired Persons 21027
Local System Service Credit included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase upon Industrial Disability Retirement 21037

Page 403 ends

- 6 -
8% Employee Contribution. Non-Safety Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 8% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefor and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such advice from their personal tax advisors regarding such matters.

Increase in miscellaneous employee contribution for PERS for "Classic"/ Tier One employees as follows:

0.50% effective pay period ending
7/9/21* 0.50% effective pay period
ending 7/8/22* 0.50% effective pay
period ending 7/7/23*
City Contribution. The City agrees to pay the employer contribution to CalPERS.

B. Non-Safety Administrative Officers Initially Hired August 16, 2010 through December 31, 2012. Non-Safety Administrative Officers whose hire date as a full-time employee is effective August 16, 2010 through December 31, 2012 will be covered under the 2% at 60 formula with the benefits specified below.

Provision Government
Code Section
2% at 60 Formula 21353

Page 404 ends

- 7 -
Three Highest Years Average Compensation 20037
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Service Credit for Unused Sick Leave 20965

Page 405 ends

- 8 -
Fourth Level of 1959 Survivor Benefit 21574
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps: VISTA
Service 21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Non-Profit Corporation 21026
Military Service Credit for Retired Persons 21027
Local System Service Credit included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase upon Industrial Disability Retirement 21037
7% Employee Contribution. Non-Safety Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 7% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution.

However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefor and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

C. Sworn, Safety Administrative Officers Initially Hired July 1, 2010 and Earlier.

Sworn Safety Administrative Officers whose hire date as a full-time employee is effective July 1, 2010 and earlier will be covered under the 3% at 50 formula with the benefits specified below.

Page 406 ends

- 9 -
Provision Government
Code Section
3% at 50 formula 21362.2
One Year Final Compensation
(Single Highest Year)
20042
Service Credit for Unused Sick Leave 20965
Post Retirement Survivor Allowance
21624, 21626, and
21635
2% Cost-of-Living 21329
Prior Service Credit 20055
Retired Death Benefits 21620
Pre-Retirement Option 2W Death Benefits 21548
Military Service 20996
Military Service Credit 21024
Military Service Credit for Retirees 21027
Peace Corps Service Credit 21023.5
Public Service Layoff Service Credit 21022
Member Cost Sharing (applicable only to Police
Administrative Officers)
20516
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon
Industrial Disability Retirement
21037
9% Employee Contribution. Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefor and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such

Page 407 ends

- 10 -
advice from their personal tax advisors regarding such matters.

Increase in safety employee contribution for PERS for "Classic"/ Tier One employees as follows:

1.0% effective pay period ending
7/9/21* 1.0% effective pay period
ending 7/8/22* 1.0% effective pay
period ending 7/7/23*
City Contribution. The City agrees to pay the employer contribution to CalPERS.

D. Police Chief Hired Between August 1, 2010 through December 31, 2012. The Police Chief whose hire date as a full-time employee is effective August 1, 2010 through December 31, 2012 will be covered under the 3% at 55 formula with the benefits specified below.

Provision Government Code
Section
3% at 55 formula 21363.1
Three Highest Years Average 20037
Service Credit for Unused Sick Leave 20965
2% Cost-of-Living 21329
Pre-Retirement Option 2W Death Benefits 21548
Military Service Credit 21024
Military Service Credit for Retirees 21027
Peace Corps Service Credit 21023.5
Public Service Layoff Service Credit 21022
Different Level of Benefits 20475
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon
Industrial Disability Retirement
21037
9% Employee Contribution. Administrative Officers agree to share the cost of

Page 408 ends

- 11 -
retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefor and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

E. Fire Chief Hired Between August 1, 2011 and December 31, 2012. The Fire Chief whose hire date as a full-time employee is effective August 1, 2011 through December 31, 2012 will be covered under the 2% at 50 formula with the benefits specified below.

VISTA
Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Military Service Credit for Retired Persons 21027

Page 409 ends

- 12 -
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon
Industrial Disability Retirement
21037
9% Employee Contribution. Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution.

City Contribution. The City agrees to pay the employer contribution to CalPERS F. California Employees' Pension Reform Act of 2013. Assembly Bill No. 340 (2012) established the California Public Employees' Pension Reform Act of 2013 (hereinafter referred to as PEPRA). The City is required to comply with the provisions of PEPRA.

G. New Members and New Employees Under PEPRA.

New Members Defined by PEPRA. New members are defined by PEPRA as an employee who becomes a member of a public retirement system for the first time on or after January 1, 2013 and:

1. Was not a member of a public retirement system before January 1, 2013; or

2. Was a member of a public retirement system before January 1, 2013 that is not subject to reciprocity with CalPERS; or

Page 410 ends

- 13 -

3. Alternatively, anyone who was an active member of a retirement system, has a break in service of six (6) months or more, and returns to active membership in the same system with a new employer.

New Employees Defined by PEPRA. New employees are defined by PEPRA as an individual hired on or after January 1, 2013 and:

1. Never worked in the public sector before January 1, 2013; or

2. Worked in the public sector before January 1, 2013, but worked for an employer with a retirement plan that did not have reciprocity with CalPERS.

Non-Safety New Members and New Employees will be covered under the 2% at 62 formula with the benefits specified below.

Provision Government Code Section
2% at 62 7522.20(a)
Three year final compensation 7522.32
Pre-retirement Optional Settlement 2 Death
Benefit
21548
Military Service Credit as Public Service 21024
Sworn Safety New Members and New Employees will be covered under the 2.7% at 57 formula with the benefits specified below.

Provision Government Code Section

2.7% at 57 7522.20(b)
Three year final compensation 7522.32
Military Service Credit as Public Service 21024
Pre-retirement Optional Settlement 2 Death
Benefit
21548
New Member and New Employee Contribution. PEPRA (Government Code Section 7522.30) states "Equal sharing of normal costs between public employers and public employees shall be the standard." The

Page 411 ends

- 14 -
standard shall be that employees pay at least 50% of normal costs and the employers not pay any of the required employee contributions.

The "normal cost rate" shall mean the annual actuarially determined normal cost for the defined benefit plan of an employer expressed as a percentage of payroll.

New Members and New Employees shall pay 50% of the normal cost adjusted annually in accordance with the CalPERS actuarial valuation for the City of Fountain Valley 2% at 62 or 2.7% at 57 plan. Any change to the New Member and New Employee contribution rate will become effective the first payroll period closest to July 1 of the appropriate year.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

H. Classic/Legacy Employees Under the California Employees' Pension Reform Act of 2013. An Administrative Officer hired on or after January 1, 2013 who was employed by any public employer before January 1, 2013 and who does not meet the definition of "New Member" or "New Employee" under the PEPRA will be designated as a Classic/Legacy Employee. Classic/Legacy Employees are defined as those individuals who are:

1. Working for an employer providing CalPERS retirement benefits who begins employment with the City of Fountain Valley without a break in service or a break in service of less than six (6) months; or

2. Current member of a public retirement system or plan with reciprocity with CalPERS.

Non-Safety Classic/Legacy Employees will be covered under the 2% at 60 formula with the benefits specified below.

Provision Government Code
Section

Page 412 ends

- 15 -
2% at 60 Formula 21353
Three Highest Years Average Compensation 20037
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Service Credit for Unused Sick Leave 20965
Fourth Level of 1959 Survivor Benefit 21574

Page 413 ends

- 16 -
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps: VISTA
Service 21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Non-Profit Corporation 21026
Military Service Credit for Retired Persons 21027
Local System Service Credit included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase upon Industrial Disability Retirement 21037
7% Employee Contribution. Non-Safety Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 7% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

Classic/Legacy Police Chief will be covered under the 3% at 55 formula with the benefits specified below.

Page 414 ends

- 17 -
Military Service Credit 21024
Military Service Credit for Retirees 21027
Peace Corps Service Credit 21023.5
Public Service Layoff Service Credit 21022
Different Level of Benefits 20475
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon
Industrial Disability Retirement
21037
9% Employee Contribution. Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefore and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

Classic/Legacy Fire Chief will be covered under the 2% at 50 formula with the benefits specified below.

Provision Government
Code Section
2% at 50 21362
Three year final compensation 20037
Different levels of benefits 20475

Page 415 ends

- 18 -
Pre-retirement Optional Settlement 2 Death Benefit 21548

Page 416 ends

- 19 -
Credit for Unused Sick Leave 20965
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps:

VISTA
Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Military Service Credit for Retired Persons 21027
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon
Industrial Disability Retirement
21037
9% Employee Contribution. Administrative Officers agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate Administrative Officers' desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the Administrative Officer, the City shall not be responsible therefore and the City has made no representation regarding such tax treatment and Administrative Officers shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

I. Compensation Reportable to CalPERS.

Administrative Officers Hired on or Before December 31, 2012. For purposes of calculating retirement benefits, the City will report to the California Public Employees' Retirement System all regular compensation and special

Page 417 ends

- 20 -
compensation including uniform allowance.

Administrative Officers Hired January 1, 2013 and Later. For purposes of calculating retirement benefits, the City will report to the California Public Employees' Retirement System, all regular compensation. In accordance with PEPRA, for employees hired beginning January 1, 2013 and later, special compensation including uniform allowance is not pensionable compensation and therefore may not be reported to CalPERS as pensionable compensation.

PEPRA, amendments and CalPERS law will define those special pays which may be reportable as pensionable compensation.

SECTION 9 - GROUP MEDICAL AND DENTAL INSURANCE.

A. The City contracts with the California Public Employees' Retirement System's Public Employees' Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees. The payment of premiums towards group medical/dental/life insurance will be through the administration of a flexible benefit package.

The City shall pay the CalPERS statutory minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act. In addition to the CalPERS statutory minimum employer contribution, the City shall make contributions to a flexible benefits plan as noted herein.

B. Employees Defined.

1. Tier 1A Medical Employees are defined as those individuals employed in a fulltime position with the City of Fountain Valley beginning July 31, 2011 and earlier.

2. Tier 2 Medical Employees are defined as those individuals employed in a fulltime position with the City of Fountain Valley beginning August 1, 2011 and later.

If an employee separates employment then later returns to employment with the City of Fountain Valley, the date the employee returned to employment will

Page 418 ends

- 21 -
become the hire date for the employee and will be considered a Tier 2 employee and only eligible for Tier 2 benefits.

The amount identified as flex dollars is inclusive of the CalPERS statutory minimum. The annual City contribution towards health insurance will be published during the open enrollment period each year.

C. Tier 1 Employees City Contribution. The City contribution is as follows:

Flex Dollar Allowance Flex
Dollars
Longevity
Health
Stipend
Total Flex
Allowance
Employee Only coverage $575.00 $1,779.76 $2,354.76
Employee +1 Dependent coverage $1,050.00 $1,304.76 $2,354.76 Employee+ Family coverage $1,300.00 $1,054.76 $2,354.76 Administrative Officers who elect not to be covered under the medical plan provided through the cafeteria plan (waiver of premium) shall receive the CalPERS statutory minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act as cash wages. However, the Administrative Officer will be required to pay for dental and life insurance premiums, both of which are mandatory out of the CalPERS statutory minimum employer contribution waiver of premium contribution.

D. Tier 2 Employees City Contribution. The City will make contributions to each Administrative Officer's flexible spending account based upon coverage elected.

Specifically, Tier 2 Administrative Officers may select from CalPERS PEMHCA available plans with the City paying for the full premiums for coverage selected for the employee and eligible dependents. Tier 2 employees do not qualify for the longevity health stipend.

Administrative Officers who elect not to be covered under the medical plan provided through the cafeteria plan shall receive the CalPERS statutory minimum

Page 419 ends

- 22 -
employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act as cash wages. However, the Administrative Officer will be required to pay for dental and life insurance premiums, both of which are mandatory out of the CalPERS statutory minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act waiver of premium contribution.

E. Cafeteria Plan. The provisions of the Cafeteria Plan are described below.

1. Benefits Provided Through the Cafeteria Plan. Effective January 1, 2011, the insurance benefits provided for in this Section will be provided through the provision of a cafeteria plan adopted in accordance with the provisions of Internal Revenue Code§ 125: medical and dental.

2. Each month the City will contribute to the cafeteria plan flex dollars for current employees and new hires as specified in the flexible benefit form.

In addition, the City will contribute a longevity stipend for Tier 1 employees as specified in Section C above. The City's flex dollar contribution includes the CalPERS statutory minimum paid by the City.

3. The Purchase of Optional Benefits Through the Cafeteria Plan. The cafeteria plan offers Administrative Officers the opportunity to purchase optional medical insurance and AFLAC insurance. Eligible employees may select from any of the medical insurance plans offered by CalPERS. If CalPERS changes any of the medical insurance plans by either adding or deleting the plan options, employees will be limited to those plan options offered by CalPERS.

Administrative Officers may also elect any of the optional AFLAC insurance options the City offers to employees at the employee's sole cost.

Dental and life insurance are not optional benefits and such premiums will be deducted from each employee's cafeteria plan flex dollars or waiver of premium contribution.

Page 420 ends

- 23 -

4. Employee Contributions for Benefit Options. If an Administrative Officer chooses optional benefits whose aggregate cost exceeds the total flex dollar City contribution to the cafeteria plan, the City will automatically deduct the excess amount on a pre-tax basis, if applicable, from the employee's bi-weekly payroll.

5. The Receipt of Cash Through the Cafeteria Plan. Tier 1 Administrative Officers will be eligible to receive cash (subject to taxation as wages) through the cafeteria plan if they either opt out of receiving medical insurance or if they choose optional benefits that do not cost as much as the flex dollars provided by the City towards the cafeteria plan. Any such employee shall be eligible to receive in cash the difference between the City's monthly cafeteria plan flex dollar contribution and the total of the premiums selected up to a maximum of $350 per month. Tier 1 Administrative Officers who are receiving cash through the cafeteria plan in excess of $350 per month as of January 1, 2018 are grandfathered to continue to receive cash in excess of $350 per month until they are no longer a Tier 1 Administrative Officer or the receipt of cash falls below $350 per month. Tier 1 Administrative Officers appointed after January 1, 2018 are capped at receiving a maximum of $350 per month as cash.

In order to opt out of the City's medical coverage, employees will be required to maintain and provide proof of group health plan coverage through an alternative source and the alternative group health plan coverage must meet the Affordable Care Act's requirements regarding affordability and minimum value.

F. Voluntary Vision Plan. The City will offer a voluntary vision care plan as one of the health programs offered under the City's cafeteria plan. Enrollment in the vision program is voluntary with premiums paid by the employee.

SECTION 10 - TERM LIFE INSURANCE. The City shall provide each Administrative Officer with a term life insurance policy equal to $100,000 worth of

Page 421 ends

- 24 -
coverage and shall pay the full cost of the life insurance premium. Retired Administrative Officers shall not be eligible for life insurance coverage.

SECTION 11 - LONG-TERM DISABILITY INSURANCE. The City shall maintain and pay full premiums for a long-term disability insurance policy for all Administrative Officers. The purpose of long-term disability insurance is to ensure that Administrative Officers will have a source of income if they are disabled from performing their regular duties for a period longer than sixty (60) calendar days.

A. Eligibility. An Administrative Officer's eligibility for long-term disability benefits depends on whether or not the Administrative Officer's disability is industrial or non-industrial in nature. If the disability is industrially related, the Administrative Officer's eligibility for long-term disability benefits begins on the 61st calendar day of continuous absence from work for non-safety Administrative Officers and upon exhaustion of Labor Code 4850 benefits for Safety Administrative Officers.

If the Administrative Officer's disability is not industrially related, the Administrative Officer's eligibility begins either on the 61st calendar day of the Administrative Officer's absence from work, or upon expiration of the Administrative Officer's sick leave, whichever period is longer.

B. Benefits. An Administrative Officer who is eligible to receive long-term disability benefits will receive 66 2/3% of the first $5,000 of his/her monthly salary as of the date their disability began less any deductible benefits, as provided for in the longterm disability policy.

C. Off Payroll Status. An Administrative Officer who is receiving long-term disability benefits is considered in an off-payroll status, and will not accrue benefits during the time that he/she is in such status. In addition, Administrative Officers who are in an off-payroll status while receiving long-term disability benefits are responsible for maintaining group health insurance coverage and for paying premiums therefor.

Page 422 ends

- 25 -
D. In Lieu of Other Benefits. Such long-term disability benefits are in lieu of all other City- provided compensation, such as Workers' Compensation benefits or disability retirement benefits and shall not be paid in addition to those other benefits.

SECTION 12 - FLEXIBLE SPENDING ACCOUNT. The City shall provide a voluntary Flexible Spending Plan (Section 125 Plan under the Internal Revenue Code) to Administrative Officers. Enrollment in the plan allows employees to pay for out-of-pocket Health Care and Dependent Care costs with pre-tax dollars. Flexible Spending Account limits will be followed by the City as set each year by the Internal Revenue Service (IRS).

At enrollment and annually thereafter, participants must designate the Flexible Spending Account election amount for the remainder of the year for new hires and for the next year for current employees. The annual amount is deducted from the employee's paycheck in equal installments, on a pre-tax basis, and credited to the employee's Flexible Spending Account. Reimbursement will be paid directly by a third party administrator.

Federal law prohibits any change in a Flexible Spending Account during the calendar year unless the employee or his/her dependent(s) have a qualifying "life event." A qualifying "life event" is marriage, divorce or legal separation, birth or adoption of a dependent, death of a dependent, or a change in the employee or employee's spouse's employment status.

The change in the Flexible Spending Account must be due to and consistent with the "life event" which permits the change.

An annual open enrollment period will be provided for the upcoming year's program.

Administrative Officers must affirmatively enroll in the Flexible Spending Account for each year. There is no automatic renewal.

When estimating annual expenses, Administrative Officers are cautioned to only consider those expenses he/she is reasonably certain he/she will incur. Any amount left in an Administrative Officer's Flexible Spending Account at the end of the year is

Page 423 ends

- 26 -
forfeited.

Deductions for Flexible Spending Accounts shall not reduce earnable compensation for purposes of calculating benefits or contributions for the California Public Employees' Retirement System.

The City maintains the right to select and change, if needed, the vendor to administer the Flexible Spending Account program.

SECTION 13- MEDICAL AND DENTAL INSURANCE FOR RETIREES.

The City shall provide group medical/dental insurance to Administrative Officers who retire from the City meeting the criteria and subject to the conditions and limitations noted below. The City contracts with the California Public Employees' Retirement System's Public Employee's Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees and retirees. Benefits are grouped in tiers based upon hire date and years of continuous City service.

A. Retiree Medical Tiers and City Contributions.

1. Tier 1 Medical Retiree. Tier 1 medical retirees are defined as those individuals employed as an Administrative Officer with the City of Fountain Valley beginning July 31, 2011 and earlier.

2. Tier 2 Medical Retiree. Tier 2 medical retirees are defined as those individuals hired as an Administrative Officer with the City of Fountain Valley beginning August 1, 2011 and later.

3. Tier 3 Medical Retirees. Tier 3 medical retirees are defined as City employees (hired August 20, 2012 and earlier) promoted to Administrative Officer with the City of Fountain Valley beginning August 21, 2012 and later:

Bargaining Unit
Promoted From
Original City
Hire Date
Benefits

Page 424 ends

- 27 -
Police Officers
Management
NIA City contributions continue and
become supplemental to Medicare
upon the dependent or
retiree
reaching age 65.

Battalion Chief
and Professional/
Technical Unit
2/15/86
& earlier.

City contributions continue and
become supplemental to Medicare
upon the dependent or retiree
reaching age 65.

Battalion Chief and
Professional/
Technical Unit
2/16/86
& later.

City contributions will continue until
the retiree or covered dependent
reaching age 65, whichever
reaches age 65 sooner, at which
time, City contributions will be
reduced to the CalPERS
statutory minimum
employer contribution.

Individually
Represented
Professional/
Technical Employee
Human Resource
Director
6/5/89 City contributions continue and
become supplemental to Medicare
upon the dependent or retiree
reaching age 65.

B. Retiree Medical/Dental Tiers. The following is a synopsis of each tier

Page 425 ends

- 28 -
Tier Effective Date of
Promotion to Administrative
Officer
Years of
Continuous
City
Service
Provisions the Employee in
the Specified Tier is Eligible
for
1A 7/31/11 and earlier 10 or more
years
1,3,4,5,6,8,9,11,13,14
1B 7/31/11 and earlier
(Disability
Retirement)
N/A 2,3,4,5,6,8,9,11,13,14
1C 7/31/11 and earlier if
City service does not fit
into Tier
1A or B
1,4,6,7,12
2A 8/1/11 and later N/A 1,4,6,7,12
2B 8/1/11 and later
(Disability Retirement)
N/A 2,4,6,7,12
3A Promotion to
Administrative
Officer from the
Police Officers
Management Unit.
10 or more
years.
1,3,4,5,6,8,9,11,13,14
3B Promotion to
Administrative Officer
8/21/12 and later from
the Battalion Chief or
Professional/
Technical Unit with an
original City hire date of
2/15/86 and
earlier.
10 or more
years.
1,3,4,5,6,8,9,11,13,14
3C Promotion to
Administrative Officer
8/21/12 and later from
the Battalion Chief or
Professional/Technical
Unit with an original City
hire date
of 2/16/86 and later.
10 or more
years.
1,3,4,5,6,8,10,11,13,14

Page 426 ends

- 29 -
3D Promotion to
Administrative Officer
8/21/12 and later from
Individually
Represented
Professional/Technical
10 or more
years.
1,3,4,5,6,8,9,11,13,14
3E Employee in the
classification
of Personnel Manager
with an original hire date
of 6/5/89.
1,4,6,7,12
The provision numbers listed below correspond to the code above designating which benefits each retiree is eligible for. If a code is not included in the "Provisions the Employee in the Specified Tier is Eligible for" section, the employee in the specified tier is not eligible for that benefit.

Provision No. 1 - Retired Employee Definition. An Administrative Officer is a retired employee when he/she:

1. Has reached 50 years in age or greater;

2. Has been employed for at least 5 years;

3. Is a vested member of CalPERS;

4. Retires with a service retirement after October 1, 1980;

5. Must retire directly from actual duty and maintain continuous coverage both prior to and subsequent to retirement;

6. Any lapse in coverage for the retiree or his/her dependents (including voluntarily removing a dependent from the plan) will result in a permanent loss of City contributions towards such retiree's and dependent's medical and dental premiums.

Page 427 ends

- 30 -
Provision No. 2 - Disability Retired Employee Definition. Any of the following permanent disabilities shall be conclusively presumed to be total in character:

1. Loss of both eyes or the sight thereof.

2. Loss of both hands or the use thereof.

3. An injury resulting in practically total paralysis.

4. An injury to the brain resulting in incurable imbecility or insanity.

In all other cases, permanent total disability shall be determined in accordance with the fact.

Totally disabled employees may apply to the life insurance carrier for continued life insurance coverage under the waiver of premium provision. Coverage is subject to the annual provision, review and approval of the insurance carrier.

Provision No. 3 - Eligible Qualified Dependent Coverage Limitation.

For Tier 1 and Tier 3 employees, City contributions towards medical premiums in excess of the CalPERS statutory minimum employer contribution is limited to the eligible retiree and those dependent(s) covered on the employee's plan for a minimum of two (2) full years (24 months) prior to the Administrative Officer's retirement date. Such dependent will be classified as a qualified dependent.

Definition of Qualified Dependent. A spouse and/or dependent child covered on the employee's medical and dental plan for a minimum of two (2) full years (24 months) prior to retirement. Such dependent will be classified as a qualified dependent.

Dependent Children. City contributions for dependent children will end the month during which the dependent child turns age 23. The dependent child may continue on the plan until age 26, in accordance with plan provisions; however, the City will not pay any contributions toward the dependent child's medical or dental

Page 428 ends

- 31 -
premiums past age

23. The following examples illustrate the impact to the City contribution when a dependent child turns age 23:

1. If the retiree covers 1) himself/herself and 2) a dependent child, the month during which the dependent child reaches age 23, the City ceases contributions towards the premium for the dependent child and pays only single coverage for the retiree.

2. If the retiree covers 1) himself/herself, 2) a spouse and 3) a dependent child, the month during which the dependent child reaches age 23, the City ceases contributions towards the premium for the dependent child and pays two-party coverage for the retiree and spouse.

3. If the retiree covers 1) himself/herself, 2) a spouse and 3) more than one (1) dependent child, the City will continue to pay the premium for family coverage for the retiree, spouse and dependent child under age 23.

Effective during the month during which the youngest child reaches age 23, the City ceases contributions towards the premiums for the dependent child(ren) and pays two- party coverage for the retiree and spouse.

4. If the retiree covers 1) himself/herself, 2) more than two (2) dependent children, the month during which the dependent child reaches age 23, the City ceases contributions towards the premium for the 23 year old dependent child and pays two-party coverage for the retiree and the dependent child under age 23.

Definition of Non-Qualified Dependent. A dependent added to the employee's medical and dental plan less than two (2) full years (24 months) prior to retirement or at a later date is ineligible for any City contribution towards medical insurance. The non-qualified dependent may enroll in the medical plan; however, premiums for such enrollment are entirely dependent paid. The City will not pay any contributions towards the medical premium for such non-qualified dependent(s). Failure to pay premiums for non-qualified

Page 429 ends

- 32 -
dependents will result in loss of coverage.

Provision No. 4 - Separation Then Return to City Service. If an employee separates employment then later returns to employment with the City of Fountain Valley, the date the employee returned to employment will become the hire date for the employee and will be considered a new hire and only eligible for new hire benefits.

Provision No. 5 - Limitation. There is no cash back provision if the premium for the medical and dental plans for qualified dependents is less than the difference between the CalPERS statutory minimum and the medical premium for the plan selected for the retiree and eligible qualified dependent(s) up to the maximum the City contributes for Administrative Officers for Tier 1 employees.

Provision No. 6 - Life or Vision Insurance. Retirees are not eligible for life or vision insurance coverage through the City.

Provision No. 7 - CalPERS Statutory Minimum Employer Contribution. Only while participating in the CalPERS medical plan will the City pay the minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act (PEMHCA) to CalPERS. Should the City discontinue contracting with PEMHCA at any time, the City will not be responsible for paying any contribution towards health insurance premiums for such retiree and those premiums shall be entirely retiree paid.

Provision No. 8 - City_ Contributions.

The City will contribute towards the monthly medical and dental premiums for the retiree and qualified dependent(s) who were covered on the employee's plan for a minimum of two (2) full years (24 months) prior to retirement (designated as qualified dependent) up to the maximum the City contributes for Administrative Officers for Tier 1 employees. The City's contribution will equal the premium for the retiree and eligible qualified dependents medical and dental plan. If PERS Care is selected, the City's contribution will equal the premium for the retiree and eligible qualified dependents on PERS Choice or comparable plan with the

Page 430 ends

- 33 -
remainder of the PERS Care premium paid by the retiree. The City guarantees that the premium payment shall be the same as active Administrative Officers, provided that the contribution paid by the City shall not be less than the City contribution at the time Resolution No. 9338 was in effect.

Provision No. 9 - Supplemental to Medicare City Contribution. Coverage will become supplemental to Medicare at age 65. The City will pay the supplemental to Medicare/basic medical and dental premium as applicable for the retiree and eligible qualified dependent(s) up to the maximum the City contributes for Administrative Officers for active Tier 1 employees. The retiree will be responsible for paying Medicare premiums.

Provision No. 10 - Termination of City Contribution.

Medical coverage will terminate upon the retiree or covered dependent reaching age 65, at which time, the employee and covered dependent continues coverage at his/her own expense for medical insurance. Only while participating in the CalPERS medical plan will the City pay the minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act (PEMHCA) to CalPERS. Retiree only dental premiums will continue to be paid by the City until the retiree's death.

Provision No. 11 - Surviving, Eligible Qualified Dependent(s) City Contribution. The City pays the actual medical and dental premium for the surviving dependent(s) up to the maximum the City contributes for Administrative Officers for Tier 1 employees.

Provision No. 12 - Retiree Contributions. The retiree enrolls in the medical plan at his/her own expense. The retiree may elect dental coverage through COBRA continuation for 18 months. If elected, the retiree will pay the full premium plus the 2% administrative fee. Failure to pay premiums will result in loss of coverage.

Provision No. 13 - Retiree Contributions.

Page 431 ends

- 34 -
Non-Qualified Dependent(s).

If non-qualified dependent(s) are covered under the plan, the retiree will be responsible for paying for the full premium for such dependent(s).

Medicare Premium.

Medicare premiums are to be paid by the retiree.

Provision No. 14 - Surviving, Eligible Qualified Dependent(s) Coverage - Continuation on the Medical and Dental Plans. Coverage for dependent survivors of deceased retired employees or employees killed in the line of duty shall continue though coverage will become supplemental if the surviving spouse obtains other group medical insurance or Medicare at age 65. If the surviving spouse remarries, all coverage for the survivor's spouse and dependent survivors, including supplemental coverage paid by the City will terminate. If none of these events which would terminate coverage occurs, coverage for dependent survivors of deceased retirees or employees killed in the line of duty under the City's group medical insurance plan will continue in accordance with the Public Employees' Medical and Hospital Care Act Program or the medical plan currently in existence.

SECTION 14 - HOLIDAYS. Administrative Officers will be entitled to 11 paid holidays per calendar year. The 11 paid holidays to which they are entitled are:

New Year's Day
Martin Luther King Jr's Day
President's Day (Washington's
Birthday) Memorial Day
Independence
Day Labor Day
Veterans' Day
Thanksgiving and the day after Thanksgiving
Christmas
"Floating Holiday"
Holidays will be paid at the full day work rate (i.e., if an employee is scheduled to

Page 432 ends

- 35 -
work a 4/10 shift, the holiday will be paid out at 10 hours).

The exact date upon which each of the above holidays will be observed and during which City Hall will be closed shall be set by Administrative Regulation each year.

The "floating holiday" may be taken at any time during the year, subject to approval of the City Manager. The "floating holiday" must be used during the calendar year, and may not be carried over from one year to the next. The floating holiday shall be consistent with the regular workday of an Administrative Officer. Administrative Officers who separate from employment may not be compensated for any unused holiday.

SECTION 15 -VACATION ACCRUAL RATE. Administrative Officers shall accrue vacation time at the following rate:

Years of Service Hours Per Year Hours Per Payroll
Period
6 months - 1 year 80 3.08
Years 2 - 5 120 4.62
Years 6 - 8 136 5.23
Years 9 - 10 144 5.54
Years 11 - 12 152 5.85
Years13-14 160 6.15
Years 15 and over 200 7.69
A. Maximum Vacation Accrual: Administrative Officers may accrue up to 240 hours of vacation and with City Manager approval, may exceed 240 hours for business necessity.

B. Annual Vacation Payoff: Annually, Administrative Officers who use 20 hours of vacation and/or administrative leave in a calendar year and maintain an accrual of 20 hours of vacation leave (after vacation buy-back) may request to buy-back a maximum of 80 hours of vacation. To request a vacation payoff, the Administrative Officer must submit an irrevocable election form specifying the number of hours requested. The irrevocable election form must be received by the Human Resources Department before December 31st of the year prior to the payoff.

Page 433 ends

- 36 -
For example, to receive a payout in 2022, an Administrative Officer must submit a completed irrevocable election form to Human Resources before December 31, 2021. If during the 2022 calendar year, the Administrative Officer meets the criteria specified herein to be eligible for payoff, he/she will receive the requested payoff.

If the Administrative Officer does not submit the irrevocable election form within the required timeline or he/she does not meet the criteria for payoff, no payoff will be given.

C. Annual Sweep of Vacation Hours in Excess of 240 Hours:
1 . Annually, effective on the first payroll period in February, should an Administrative Officers vacation accrual exceed the maximum annual vacation accrual specified in Section 15 B, the sum above the maximum will be swept into a qualifying plan such as a 457 or Retiree Health Savings (RHS) Account as defined below. The hours exceeding the maximum will be cashed out and deposited into the Administrative Officer's account.
2 . Those promoted into the Administrative Officers’ unit between 7/1/2019 and 12/31/2019, and those promoted into the Administrative Officers’ unit between 1/1/2023 through 1/15/2023, will deposit the Annual Sweep of Vacation Hours in excess of 240 hours into their individual RHS account(s).

3. Those appointed (hired) to the City, and in the Administrative Officers’ unit beginning 9/1/2023 through 6/30/2024 will deposit fifty (50%) percent of their Annual Sweep of Vacation Hours in Excess of 240 hours into their individual RHS account(s)
D. Vacation Accrual at Separation: At separation, the monetary value of the Administrative Officer's accrued, unused vacation time will be cashed out and paid to the Administrative Officer or deposited into their individual RHS accounts as defined in Section 23 Retiree Health Savings Account.

SECTION 16 -SICK LEAVE. Administrative Officers shall accrue sick leave at the rate of 3.69 hours per bi-weekly pay period (one, eight-hour day per month).

Page 434 ends

- 37 -
In accordance with California Labor Code section 245 et seq., should an Administrative Officer separate from employment with the City of Fountain Valley, and then return to City employment within one (1) year from the date of separation, the employee's accrued, unused sick leave hours at the time of separation after any sick leave payoff if any, shall be reinstated upon re-hire.

A. Sick Leave Usage. The first three (3) days or work hours equivalent (e.g. 30 hours for employees on a 4/10 schedule) of paid sick leave taken each 12 month period will be considered sick leave used pursuant to the Healthy Workplaces, Healthy Families Act of 2014 (California Labor Code sections 245-249). The 12 month period is July 1 through June 30 for employees hired prior to July 1, 2015. For employees hired on or after July 1, 2015, the 12 month period is the 12 month period beginning on the employee's hire date, until the following July 1, at which point the employee's 12 month period will change to July 1 - June 30.

1. Administrative Officers can use sick leave for themselves for preventative care (such as physical exams) or care of an existing health condition;

2. Administrative Officers can use up to a maximum of one-half of one year's annual accrued sick leave (e.g. 60 hours for employees on a 4/10 work schedule) per year for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's child, parent, spouse or registered domestic partner. The first three days (or work hours equivalent) of sick leave an employee uses in a 12 month period can also be used for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's sibling, parents-in-law, grandparent or grandchild. Sick leave usage for family illness is separate from Family Care and Medical Leave, the provisions of which are included in Administrative Regulation No. 1050; however, sick leave usage for family illness may run concurrently with Family Care and Medical Leave; or

3. Administrative Officers can use sick leave for specified purposes if they are victims of domestic violence, sexual assault or stalking as set forth in

Page 435 ends

- 38 -
California Labor Code section 230(f) and 230.1(a).

After an Administrative Officer has used three sick leave days (or work hours equivalent) in a 12 month period, the use of sick leave shall be subject to the approval of the City Manager who may request a physician's statement or other documentation substantiating the illness at any time and may require a release to duty before allowing an Administrative Officer to return to duty. Administrative Officers will be required to use accrued sick leave prior to requesting a leave of absence without pay.

C. Sick Leave Payoff. Upon completion of ten (10) years of continuous service with the City, Administrative Officers who separate from the City for any reason other than termination for cause shall be paid 25% of the Administrative Officer's accrued, unused sick leave balance at the time of separation. In the event of death at any time during employment with the City, 25% of the Administrative Officer's accrued, unused sick leave will be paid to the Administrative Officer's estate. Contributions to the California Public Employees' Retirement System shall not be made on any payoff for accrued, unused sick leave.

D. Retirement Credit for Unused Sick Leave. Pursuant to Government Code Section 20965 and the City's contract with CalPERS, Administrative Officers who retire from the City may receive service credit towards their retirement for all accrued, unused sick leave for which they do not receive compensation. This provision shall apply only to Administrative Officers whose effective date of retirement is within four (4) months of separation from employment with the City.

SECTION 17 - BEREAVEMENT LEAVE. Administrative Officers shall be entitled to a maximum of 5 working days (up to three (3) of which shall be with pay) as Bereavement Leave, when they are compelled to be absent from duty by reason of death of an immediate family member, or in the event of critical illness where death appears to be imminent. For purposes of bereavement leave, "immediate family member" refers to spouse, registered domestic partner, child, stepchild, grandchild, sibling, parent, step-parent, parent-in-law, grandparent, or legal guardian.

Page 436 ends

- 39 -
SECTION 18 - INDUSTRIAL INJURY LEAVE. Administrative Officers who sustain injuries or illnesses arising out of their employment and in the course of their employment shall be entitled to the following:

A. Non-sworn Administrative Officers shall be entitled to a maximum of ninety (90) calendar days of industrial injury leave at full salary and benefits in lieu of temporary disability benefits. Administrative Officers who are absent from work for longer than ninety (90) calendar days due to industrial illness or injury will receive those benefits provided for in the Workers' Compensation Law, as well as, any long-term disability benefits to which they may be entitled. Administrative Officers will also be permitted, after exhaustion of the ninety (90) days industrial injury leave, to use accrued sick leave to supplement their Workers' Compensation benefits for a maximum of sixty (60) calendar days. In no case will an Administrative Officer be permitted to receive more than their regular pay.

B. Sworn Administrative Officers shall be entitled to a maximum of one year of industrial injury leave at full salary and benefits, pursuant to Labor Code Section 4850. Administrative Officers who are absent from work for longer than one year due to industrial illness or injury will receive those benefits provided for in the Workers' Compensation law, as well as, any long-term disability benefits to which they may be entitled. In no case will an Administrative Officer be permitted to receive more than their regular pay.

SECTION 19 - ADMINISTRATIVE LEAVE. All Administrative Officers shall be eligible for Administrative Leave of 108 hours per calendar year. Administrative Officers can roll over a maximum of 40 hours of Administrative Leave at the end of the calendar year. There is no cash out of Administrative Leave.

SECTION 20 - CITY VEHICLE. The Chief of Police and Fire Chief shall be provided with a City vehicle which may be used for transportation between the City and home and for official work-related business.

SECTION 21 - WELLNESS/FITNESS.

Page 437 ends

- 40 -
A. City will provide up to $500 per fiscal year for gym memberships, nutritional memberships/counseling, meal prep services, personal fitness equipment, and body scans with proof of membership/purchase/services. The program is defined in Administrative Regulation 1086.

B. Reimbursement equal to or not to exceed $500 per fiscal year with proof of membership/purchase/services.

SECTION 22 – SEVERANCE.

Administrative Officers shall accrue severance at the rate of four weeks per calendar year, up to a maximum of 3-months. The accrual shall be retroactive for current Directors. In the event City determines to terminate an Administrative Officer’s employment without cause, then City shall pay to the Administrator Officer that Administrative Officer’s accrued severance. No severance pay will be provided if Administrative Officer’s employment is terminated for cause. “Cause” shall mean any of the following:
a. Conviction of a felony or a crime involving moral turpitude that adversely affects the City’s or the Administrative Officer’s reputation; or b. Conviction of a misdemeanor arising out of the Administrative Officer’s duties or performance; or
c. Misappropriation of public funds; or
d. Willful abandonment of duties consisting of the failure to report to work for five (5) consecutive working days (for reasons not medically related) and not notifying the City Manager of Administrative Officer’s status; or e. A willful and intentional failure to carry out materially significant and legally constituted policy decisions of the City Manager or City Council; or f. Willful destruction or misuse of City property; or
g. Willful violation of the federal, state, or City discrimination laws concerning race, religious creed, color, national origin, ancestry, physical handicap, marital status, sex, or age concerning either members of the general public or City employee(s) while acting in the course and scope of employment and while acting without the prior approval or direction of the City Manager or City Council; or

Page 438 ends

- 41 -
h. Any other intentional or grossly negligent action or inaction by the Administrative Officer that: 1) materially and substantially impedes or disrupts the operations of the City or its organizational units; 2) is detrimental to employees or public safety; 3) violates properly established rules or procedures of the City causing a material and substantial adverse impact on the City; or 4) has a material and substantial adverse effect on the City’s interests as clearly defined and delineated by properly established Administrative or City Council action, policy, regulations, ordinances, or City Code provisions.

SECTION 23 – RETIREE HEALTH SAVINGS ACCOUNT.

A The City will establish a plan agreement within its existing contract for Administrative Officers to contribute employee pre-tax contributions into their individual Retiree Health Savings ("RHS") Account.

B. The City has the right to select and change, if needed, the vendor to administer and be the exclusive record-keeper for the RHS plan.

C. Contributions to the retiree health savings plan are made solely by the employee and all administrative fees for the plan will be deducted from the employee's individual account assets. The account assets that accumulate, plus investment earnings, will be used in retirement to pay health insurance premiums and other eligible out of pocket expenses such as deductibles, co-pays, dental and vision care in accordance with the Internal Revenue Code Section 213. The employee contribution will be portable if an employee should leave employment with the City prior to retirement.

1. Those promoted into the Administrative Officers' unit between 7/1/2019 and 12/31/2019 will make mandatory reduction in salary employee compensation contributions in the amount of five-percent (5%) of base earnings each pay period for the Plan Year deposited into their individual RHS accounts.

2. Those appointed (hired), or promoted into the Administrative Officers' unit beginning 1/1/2020 through 12/31/2022, and after 9/1/2023, will make mandatory reduction in salary employee compensation contributions in the amount of two-percent (2%) percent of base earnings each pay period for the Plan Year deposited into their individual RHS accounts.

3. Those promoted into the Administrative Officers’ unit between 7/1/2019 and 12/31/2019 and between 1/1/2023 through 1/15/2023, and those Administrative Officers appointed (hired) to the City after 9/1/2023, will be required to deposit forty-percent (40%) of their vacation accrual bank hours at separation or retirement into their RHS account(s).

Page 439 ends

- 42 -
SECTION 24 - ADMINISTRATIVE REGULATIONS. The City Manager is authorized to issue written administrative personnel regulations designed to augment or clarify the provisions of this resolution.

SECTION 25 - EFFECTIVE DATE. Except as otherwise specified to the contrary in this Resolution, all provisions shall be effective as of the pay period ending July 5, 2024.

SECTION 26 - APPLICABILITY. This Resolution shall apply to any newly created Director position.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting on this 4th day of June, 2024.

Glenn Grandis, Mayor
ATTEST:

Rick Miller, City Clerk Administrator

APPROVED AS TO FORM

HARPER & BURNS LLP
Colin Burns
Attorney(s) for the City

Page 440 ends

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 4, 2024
Members of the City Council
SUBJECT: Adopt a Resolution and Approve the Memorandum of Understanding for the Individually Represented Battalion and Division Chiefs, and Approve the Employment Resolution related to wages, hours, terms and conditions of employment for the Confidential Non-represented Professional / Technical
employees.

The current labor contracts for the individual groups are set to expire on June 30, 2024.

The City and the Individually Represented Battalion and Division Chiefs (hereinafter referred to as “Fire Management”, and the Confidential Non-represented Professional and Technical Unit (hereinafter referred to as “IRP&T”), reached a tentative agreement based on the City Council’s review of the long-term 20-year budgeting forecast provided by the Finance Department. The data detailed sufficient revenue to provide a labor compensation package and reasonable salary increases to these two groups. The Council is also well aware that the CALPERS Pension obligations of the City are a large liability and addressing the ongoing pension costs and pension debt are key priorities. The total projected financial impact for the three-year labor compensation package is $3,278,234 for Fire Management and $5,993,577 for IRP&T.

Page 441 ends

City Council Request
Adopt a Resolution adoption a MOU and an Employment Resolution June 4, 2024

Page 2 ends

DISCUSSION:

The City’s negotiating team met with representatives of the individual bargaining groups and came to terms on new three-year agreements. The terms to be memorialized in the Memorandum of Understanding (hereinafter referred to as “MOU”) and a Resolution relating to wages, hours, and conditions of employment (hereinafter referred to as “Employment Resolution”), if adopted, both would be effective July 1, 2024 through June 30, 2027. The terms of the new Fire Management MOU and Employment Resolution for IRP&T to include, as relevant to each:

1. Term:
 3-year agreement, July 1, 2024-June 30, 2027

2. Base Salary Increases:

Base Salary Adjustment Effective Date Base Salary Adjustment Amount Pay Period Ending 7/5/2024 4%
Pay Period Ending 7/4/2025 4%
Pay Period Ending 7/3/2026 4%

3. Fire Management – Increase of Uniform Allowance from $800/year to $1,600/year.

Increase to initial cost (1x reimbursement) up to a maximum of $3,000.

4. Fire Management – Administrative Leave of 48 hours per fiscal year for attending conferences, Strategic Planning sessions, etc. during regularly scheduled days off.

5. Fire Management - $150 per month employer deposit into employees individual 457- deferred compensation account.

6. Fire Management – agrees to a cap on sick leave converted to service credit at retirement to a maximum of 2,000 hours.

7. IRP&T – 4/10-pilot work schedule program.

8. IRP&T – Medical Tier 3 only employees to receive an additional $150 per month towards their flex dollars beginning July 1, 2024.

9. IRP&T – Eliminate Tier 3 Administrative Leave and allow 80 hours per fiscal year.

10. IRP&T – Eliminate Tuition Reimbursement language in Resolution and add group to the City’s Administrative Regulation.

Page 442 ends

City Council Request
Adopt a Resolution approving a MOU and an Employment Resolution June 4, 2024

Page 6 ends

FISCAL REVIEW:

The fiscal impact of the three-year package includes costs for employee compensation, benefits, and taxes. The tables below show the annual and total cost of the three-year package, as well as the annual and total percentage increase over the baseline cost for the three-year term.

Fountain Valley Fire Management 2025 2026 2027 Total
3-Year Total Cost $ 1,019,304 $ 1,090,951 $ 1,167,978 $ 3,278,234 % Cost Increase over baseline 4.73% 3.82% 3.85% 13.72%
Independently Represented
Professional & Technical 2025 2026 2027 Total
3-Year Total Cost $ 1,886,632 $ 2,001,705 $ 2,105,241 $ 5,993,577 % Cost Increase over baseline 5.00% 3.65% 3.67% 13.43%
Overall, the three-year Fire Management package is projected to cost $3,278,234 or an increase of 13.72% over the baseline cost and the three-year IRP&T package is projected to cost $5,993,577 or an increase of 13.43% over baseline cost. The projected costs have been included in the proposed FY 2024-25 Annual Budget. Subsequent year costs for the Fire Management and IRP&T packages will be included in each individual fiscal year’s budget process.

In order to stay within the parameters of the City’s 20-year budget and maintain financial solvency with the loss of Measure HH funds in 2037, the City established a goal of providing new contracts that allowed for a 12% cost increase over the baseline budget. Through the process, the City also has also sought to provide a 4% COLAs over the three-year term of the contract and $150 (4/4/4 + $150) in monthly benefit increases to employees. In certain groups, this allows the City to maintain costing at approximately 12% over baseline. In groups such as FV Fire Management and Independently Represented P&T, the cost over baseline was higher than the 12% but maintains consistency in the 4/4/4 + $150 package. The City will continue to pursue fair and consistent packages with all labor groups.

Page 443 ends

City Council Request
Adopt a Resolution approving a MOU and an Employment Resolution June 4, 2024

Page 6 ends

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney(s) for the City have reviewed and approved the MOU and Employment Resolution.

ALTERNATIVES:

Alternative No.1: Adopt a Resolution and Approving the MOU for the Individually Represented Battalion and Division Chiefs
and Approving the Employment Resolution relating to
wages, hours, terms and conditions of employment for
the Confidential Non-represented Professional /
Technical employees.

Alternative No. 2: Do not approve the Resolution and MOU.

RECOMMENDATION:

It is recommended the City Council approve the following:

1. Adopt a Resolution Approving the Memorandum of Understanding for the Individually Represented Battalion and Division Chiefs, and Approving the Employment Resolution relating to wages, hours, terms and conditions of employment for the Confidential Non-represented Professional / Technical employees.

Prepared by: Carrie Hanes, Human Resources Director
Reviewed by: Colin Burns, Attorney for the City
Fiscal Review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachment: 1. Resolution Approving the Memorandum of Understandings for the Individually Represented Battalion and Division Chiefs, Fountain Valley and Approving the Resolution relating to wages,

Page 444 ends

City Council Request
Adopt a Resolution approving a MOU and an Employment Resolution June 4, 2024

Page 6 ends

Exhibits: 1. Memorandum of Understanding with the Individually Represented Battalion and Division Chiefs.

2. Resolution Relating to Wages, Hours and Terms and
Conditions of Employment of the Confidential Non-represented Professional/Technical Employees.

Page 445 ends

MEMORANDUM OF UNDERSTANDING
2024 - 2027

CITY OF FOUNTAIN VALLEY
AND

INDIVIDUALLY REPRESENTED

BATTALION CHIEFS AND DIVISION CHIEF
This Memorandum of Understanding sets forth the terms of agreement reached between the City of Fountain Valley and the Individually Represented Battalion Chiefs and Division Chief for the period beginning July 1, 2024 through June 30, 2027. Unless otherwise indicated herein, all provisions shall become effective in the pay period including July 1, 2024.

Page 446 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 1 -

TABLE OF CONTENTS

PAGE NO
PREAMBLE 4
ARTICLE 1 RECOGNITION 4
ARTICLE 2 REPRESENTED CLASSIFICATION 4
ARTICLE 3 PROBATIONARY PERIOD 4
Section 3.01 New Hires 4
Section 3.02 Promotion 5
ARTICLE 4 COMPENSATION 5
Section 4.01 Compensation 5
Section 4.02 Fire Operations/Training Division Chief Compensation 5 Section 4.03 Educational Incentive Pay (Chief Officer Certification) 5 Section 4.04 Educational Incentive Pay (Chief Officer Management) 5 Section 4.05 Educational Incentive Pay (Strike Team Leader Certification) 6 Section 4.06 Hazard Premium (Exposure) 6
Section 4.07 Physical Fitness Program Pay (Wellness) 6
Section 4.08 Management Performance Program 7
Section 4.09 Fair Labor Standards Act Exemption 7
Section 4.10 Battalion Chief Suppression Overtime 8
Section 4.11 Non-Suppression Overtime 8
Section 4.12 Non-FLSA Overtime 8
Section 4.13 Compensation to the Fire Operations/Training Division Chief when assigned to Work as the Suppression Battalion Chief 8 Section 4.14 Longevity Pay 8
Section 4.15 Deferred Compensation Matching 9
ARTICLE 5 UNIFORMS AND SAFETY BOOTS 9
Section 5.01 Uniforms 9
Section 5.02 Uniform Allowance 9
Section 5.03 Uniforms Damaged in the Line of Duty 10
Section 5.04 Safety Boots 10
ARTICLE 6 RETIREMENT 10
Section 6.01 CALPERS Retirement System 10
Section 6.02 Employees Hired July 31, 2011 and Earlier 10

Page 447 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 2 -
Section 6.03 Employees Hired August 2, 2011 Through December 31, 2012 11 Section 6.04 California Employees’ Pension Reform Act of 2013 12 Section 6.05 New Members and New Employees Under PEPRA 12 Section 6.06 Classic/Legacy Employees Under the California Employees’ Pension Reform Act of 2013
13 Section 6.07 Compensation Reportable to CalPERS 14
Section 6.08 Retiree Health Savings Account 14
ARTICLE 7 HEALTH AND OTHER INSURANCE FOR EMPLOYEES 15
Section 7.01 Group Medical and Dental Insurance for Employees Hired July 31, 2011 and Earlier
15 Section 7.02 Group Medical and Dental Insurance for Employees Hired August 1, 2011 and Later
16 Section 7.03 Cafeteria Plan 16
Section 7.04 Term Life Insurance 17
Section 7.05 Long-Term Disability 17
Section 7.06 Flexible Spending Account 18
ARTICLE 8 MEDICAL/DENTAL INSURANCE FOR RETIREES 19
ARTICLE 9 LEAVES 25
Section 9.01 Holidays 25
Section 9.02 Holiday Payoff 25
Section 9.03 Administrative Leave and Holidays 25
Section 9.04 Vacation Accrual Rate 25
Section 9.05 Maximum Vacation Accruals 26
Section 9.06 Vacation Buy Back 26
Section 9.07 Sick Leave – Accrual Rate 27
Section 9.08 Sick Leave Usage 27
Section 9.09 Sick Leave Usage for Family Illness 28
Section 9.10 Sick Leave Payoff 28
Section 9.11 Retirement Credit for Unused Sick Leave 28 Section 9.12 Sick Leave Upon Reinstatement 29
Section 9.13 Bereavement Leave 29

Page 448 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 3 -
Section 9.14 Administrative Leave 29
Section 9.15 Industrial Injury Leave 29
ARTICLE 10 ILLEGAL/CONTROLLED SUBSTANCE SCREENING 30
ARTICLE 11 PHYSICAL FITNESS PROGRAM AND HEALTH

EVALUATIONS
30 Section 11.01 Physical Fitness/Wellness Program 30
Section 11.02 Health Evaluations 30
ARTICLE 12 GRIEVANCE PROCEDURE 32
Section 12.01 General 32
Section 12.02 Scope of Grievance Procedure 32
Section 12.03 Form 32
Section 12.04 Informal Discussion 33
Section 12.05 Formal Grievance Procedure 33
Section 12.06 Appeal to City Manager 33
Section 12.07 Extension or Waiver of Time Limits 34
Section 12.08 Conduct of Grievance Procedure 34
Section 12.09 Interpretation of MOU 35
Section 12.10 Appeals of Testing and Selection Procedure 35 ARTICLE 13 APPEALS OF DISCIPLINARY ACTION 35
Section 13.01 General Provisions 35
Section 13.02 Appeal Procedures for Discipline Not Involving Discharge, Demotion, Suspension or Reduction in Salary
36 Section 13.03 Appeal to the City Manager for Discipline Not Involving Discharge, Demotion, Suspension or Reduction in Salary
37 Section 13.04 Appeal Procedure for Suspension, Reduction in Pay, Demotion or Termination
38 ARTICLE 14 MANAGEMENT RIGHTS 39
ARTICLE 15 NON-DISCRIMINATION 40
ARTICLE 16 GENERAL PROVISIONS 41
EXHIBIT 1 PHYSICAL FITNESS/WELLNESS PROGRAM 42
EXHIBIT 2 SALARY SCHEDULE 45
EXHIBIT 3 UNIFORM SPECIFICATIONS 46

Page 449 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 4 -

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF FOUNTAIN VALLEY
AND

THE INDIVIDUALLY REPRESENTED

BATTALION CHIEFS
(2024-2027)

PREAMBLE
Representatives of the City of Fountain Valley and the Individually Represented Professional/Technical Battalion Chiefs and Division Chief (hereinafter referred to as Individually Represented Battalion Chiefs) having requested individual representation by letter pursuant to Resolution 9379 and having met on a number of occasions and having conferred in good faith, exchanging a number of proposals concerning wages, hours, fringe benefits, and other terms and conditions of employment.

The City Manager and the Individually Represented Battalion Chief and Division Chief have reached an understanding as to certain recommendations to be made to the City Council of the City of Fountain Valley and have agreed that the parties hereto will jointly urge the City Council to adopt one or more resolutions which will provide for the changes in wages, hours, fringe benefits, and other terms and conditions of employment contained herein.

Having met and conferred in good faith, the City Manager of the City of Fountain Valley and the Individually Represented Battalion Chiefs agree as follows:

ARTICLE 1 - RECOGNITION
Battalion Chief and Division Chief is individually represented on wages, hours, fringe benefits, and other terms and conditions of employment.

Recognition shall mean acknowledgment by the City that an employee organization is the exclusive representative of all employees in an appropriate unit except employees in such bargaining units who have elected to represent themselves. The City has received written correspondence indicating that the designated employee has requested individual representation.

ARTICLE 2 - REPRESENTED CLASSIFICATION
The classification of Battalion Chief and Division Chief are represented.

ARTICLE 3 – PROBATIONARY PERIOD
Section 3.01 – New Hires. New employees hired from outside current City employment after August 1, 2007, shall be subject to an eighteen (18) month probationary period. If the new Individually Represented Battalion Chief and Division Chief is off work for reason other than approved vacation or sick leave for more than thirty (30) calendar days, the

Page 450 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 5 -
Individually Represented Battalion Chief’s probationary period will be extended by the period the Individually Represented Battalion Chief is off work. The Individually Represented Battalion Chief shall be eligible for a merit increase as specified in Section

4.08. Section 3.02 – Promotion. Employees who are promoted to the classification of Battalion Chief effective August 1, 2007 and thereafter shall be subject to a twelve (12) month probationary period. If the Individually Represented Battalion Chief is off work for reason other than approved vacation or sick leave for more than thirty (30) calendar days, the Individually Represented Battalion Chief’s probationary period will be extended by the period the Individually Represented Battalion Chief is off work. The Individually Represented Battalion Chief shall be eligible for a merit increase as specified in Section

4.08. ARTICLE 4 - COMPENSATION
Section 4.01 – Compensation. Adjustments to the schedule of base salary rates for classifications covered under this contract are outlined below:

Adjustment Effective Date Adjustment Amount
Pay period ending July 5, 2024 4%
Pay period ending July 4, 2025 4%
Pay period ending July 3, 2026 4%
Section 4.02 –Division Chief Compensation. An Individually Represented Division Chief is assigned to Fire Suppression, shall receive a salary differential of 9.0% above top step Battalion Chief. An Individually Represented Division Chief assigned to an administrative position will receive 12.5% above top step Battalion Chief.

Section 4.03 – Educational Incentive Pay (Chief Officer Certification). Defined as compensation to employees for completing educational courses, certificates and degrees which enhance their ability to do their job. Designated by 2 CCR § 571 (a) (2) as Educational Pay. Individually Represented Battalion Chiefs and Division Chiefs who have completed all required Chief Fire Officer courses, or possess a Chief Officer Certification by the State of California shall receive educational incentive pay (Chief Officer Certification) in the amount of nine percent (9%) of base pay per month. (Revised 8/20/10, 8/9/08, 8/11/07, 8/8/98, 2/17/97, 2/1/96, 8/1/95, 2/1/95, 8/1/94, 8/1/16, 1/1/2024, 7/1/2024)
Section 4.04 – Educational Incentive Pay (Chief Officer Management). Defined as compensation to employees for completing educational courses, certificates and degrees which enhance their ability to do their job. Designated by 2 CCR § 571 (a) (2) as Educational Pay. Individually Represented Battalion Chiefs and Division Chief possessing a Chief Officer Certificate from the State of California who have earned a minimum of 90 semester units at an accredited college or university shall be eligible for sixty-five hundredths of a percent (0.65%) of base pay per month educational incentive

Page 451 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 6 -
pay (Chief Officer Management Certification). The Individually Represented Battalion Chief must submit a college or university transcript showing completion of a minimum of ninety (90) semester units. Chief Officer Management Pay is in addition to Chief Officer Certification Pay.
(Effective 8/1/07, 1/1/2024)
Section 4.05 – Educational Incentive Pay (Strike Team Leader Certification).

Defined as compensation to employees for completing educational courses, certificates and degrees which enhance their ability to do their job. Designated by 2 CCR § 571 (a) (2) as Educational Pay. Individually Represented Battalion Chiefs and Division Chief completing all required courses for Strike Team Leader (Engine) Certification from the State of California shall receive educational incentive pay (Strike Team Leader Certification) in the amount of sixty-five hundredths of a percent (0.65%) of base pay per month.

A Battalion Chief or Division Chief who returns to work from a strike team deployment of greater than 24 hours in duration on that Battalion/Division Chief’s regularly assigned duty shift, will not be expected to return to duty for the remainder of the regular duty shift. The Battalion or Division Chief will not be required to utilize any accrued leave and the shift will remain backfilled.
(Revised 8/20/10, 8/9/08, 8/11/07, 9/1/2020, 1/1/2024)
Section 4.06 – Hazard Premium Pay (Exposure). Defined as compensation to employees who are routinely and consistently exposed to toxic, radioactive, explosive or other hazardous substances or perform hazardous activities to implement health or safety procedures. Designated by 2 CCR § 571 (a) (4) as premium pay. Individually Represented Battalion Chiefs and Division Chiefs shall receive hazard premium in the amount of five percent (5%) of base pay per month in addition to their base rate of pay. (Revised 2/17/97, 2/16/93, 1/1/2022)
Section 4.07 – Physical Fitness Program Pay (Wellness). Defined as compensation to local safety members who meet an established physical criterion. Designated by 2 CCR § 571 (a) (1) as incentive pay. The Individually Represented Battalion Chief and Division Chief may participate in a voluntary physical fitness/wellness program.

Individually Represented Battalion Chiefs successfully passing the semi-annual performance standards shall receive physical fitness program pay (wellness) in the amount of $50.00 per month for Tier 1. If qualified for Tier 2, the Individually Represented Battalion Chief and Division Chief shall receive physical fitness program pay (wellness) in the amount of four percent (4%) of base pay per month. The employee may elect to use whatever portion of this pay as may be necessary to satisfy their full obligation to pay health insurance premiums.
(Revised 8/20/10, 8/9/08, 8/11/07,1/1/2022)

Page 452 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 7 -
Section 4.08 – Management Performance Program.

A. Individually Represented Battalion Chiefs shall submit a memo to their supervisor detailing their accomplishments during the rating period within twenty-one (21) days prior to the employee’s anniversary date.

B. Supervisors and/or the Fire Chief complete the Management Performance Evaluation form prior to the employee’s anniversary date.

C. The City Manager reviews each Management Performance Evaluation.

Eligibility for Merit Increase. Individually Represented Battalion Chiefs must receive an overall performance evaluation rating of “Meets Expectations” or “Exceeds Expectations” to be eligible for a merit increase to the next step within the salary range. An overall performance evaluation rating of “Needs Improvement” will not result in a merit increase.

If an Individually Represented Battalion Chief receives a “Needs Improvement” rating and, therefore, is not approved for a merit increase, the Individually Represented Battalion Chief may be reconsidered for such merit increase no sooner than thirty (30) days after the evaluation is delivered.

Current Employee Merit Increase. Employees who are promoted to Battalion Chief shall be eligible for a merit increase upon completion of twelve (12) months of continuous City service and successful completion of probation subject to Section 3.02. Thereafter, Individually Represented Battalion Chiefs shall be eligible for a merit increase effective with completion of twenty-four (24) months, thirty-six (36) months then forty-eight (48) months assuming the Individually Represented Battalion Chief starts at Step 1. In no case, will an Individually Represented Battalion Chief be paid more than Step 5 of the salary range for their classification.

Employees who are promoted to Battalion Chief or Division Chief prior to July 1, 2021 shall be eligible for a merit increase upon completion of twelve (12) months of continuous City service and successful completion of probation. Thereafter, sworn, management fire personnel shall be eligible for a merit increase effective with completion of twenty-four (24) months after appointment then thirty (30) months after appointment, then forty-eight (48) months after appointment.

New Hire Merit Increase. Individually Represented Battalion Chiefs hired from outside current City employment after August 1, 2007, shall be eligible for a merit increase upon completion of twelve (12) months of continuous City service and successful completion of probation subject to Section 3.01 of this Memorandum of Understanding. Thereafter, Individually Represented Battalion Chiefs shall be eligible for a merit increase effective with completion of twenty-four (24) months, thirty-six (36) months then forty-eight (48) months of employment assuming the Individually Represented Battalion Chief starts at Step 1. In no case, will an Individually Represented Battalion Chief be paid more than Step 5 of the salary range for their classification.

Section 4.09 – Fair Labor Standards Act Exemption. Pursuant to Section 13(a)(1) of the Fair Labor Standards Act, the City hereby determines that the Individually Represented Battalion Chief is exempt from both the minimum wage and overtime provisions of the Fair Labor Standards Act.

Page 453 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 8 -
Notwithstanding the provisions of Section 4.09, the Individually Represented Battalion Chief assigned to suppression shall be eligible for non-Fair Labor Standards Act/Memorandum of Understanding overtime under the conditions noted below.

Section 4.10 – Battalion Chief Suppression Overtime. The Individually Represented Battalion Chief shall be paid at the rate of one and one-half times their regular hourly rate for all suppression hours worked in excess of one hundred twelve (112) hours in a fourteen-day (14) work period (Note: Suppression duty is defined as incident or potentially incident based).

Section 4.11 - Non-Suppression Overtime. The Individually Represented Battalion Chief shall be paid at the regular base hourly rate (straight time) for all non-suppression hours worked in excess of one hundred twelve (112) hours in a fourteen-day (14) work period. Non-suppression work shall include attendance at meetings, work as a Fire Investigator, work on pre-employment background investigations, etc. The Individually Represented Division Chief shall not be paid for Non-Suppression Overtime. (Revised 1/1/2022)
Section 4.12 – Non-FLSA Overtime. For purposes of determining eligibility for non- Fair Labor Standards Act/Memorandum of Understanding overtime pay, absences (i.e., sick leave, etc.), whether compensated or uncompensated, shall not be counted as hours worked, for the purposes of determining eligibility for non-Fair Labor Standards Act/Memorandum of Understanding overtime pay. Only vacation and bereavement leave hours will be counted as hours worked for determining eligibility for non-Fair Labor Standards Act/Memorandum of Understanding overtime pay.

Section 4.13 – Compensation to the Fire Operations/Training Division Chief when Assigned to Work as the Suppression Battalion Chief. On those occasions when the Fire Operations/Training Division Chief is assigned to work as the on-duty suppression Battalion Chief, on the Fire Operations/Training Division Chief’s regularly scheduled day off, for those suppression hours only the Fire Operations/Training Division Chief will be paid at one and one-half times the base hourly rate of a fifty-six (56) hour Battalion Chief at the Fire Operations/Training Division Chief’s current salary step. (Note: Suppression duty is defined as incident or potentially incident based).

Section 4.14 Longevity Pay: (labeled 4.13 in side letter in error) Defined as compensation to incentivize sworn, Individually Represented Battalion Chiefs and Division Chief to remain with the City of Fountain Valley, and defined as special compensation 2 CCR § 571 (a) (1) Longevity Pay. Eligible employees will earn a retention incentive premium at the following rates based on their cumulative, full-time sworn fire department service. Only sworn fire department employees with the rank of Firefighter or higher, as determined by the Fire Chief, shall be included as qualified, sworn fire service experience. Any retention incentive premium shall not commence until the Fire Department is notified by the employee of obtaining eligibility and all required proof of eligibility is received by the Human Resources Department and approved by the Fire Chief and City Manager.

Page 454 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 9 -
A. After completion of fifteen (15) years of qualified service, and beginning their sixteenth (16th) year of service, eligible employees will receive five percent (5%) of base pay only.

B. After completion of twenty (20) years of qualified service, and beginning their twenty-first (21st) year of service, eligible employees will receive six percent (6%) of base pay only.

An eligible employee shall only be entitled to receive one retention incentive premium and is not intended to be stacked.
(Established and effective 1/1/2023)

4.15 Deferred Compensation Matching: Beginning the pay period including July 1, 2024, the City will match employee contributions to their deferred compensation account up to the maximum of one-hundred fifty dollars ($150) per month (or approximately $69.23 bi-weekly).
(Established and effective 7/1/2024)
ARTICLE 5 - UNIFORMS AND SAFETY BOOTS
Section 5.01 – Uniforms. The Individually Represented Battalion Chief and Division Chief shall be required to purchase, maintain, and wear uniforms as specified by the Fire Chief. The City will provide, at no cost to the employee, all turnout and safety clothing and equipment not specified in Exhibit 3.

Section 5.02 – Uniform Allowance. Defined as compensation paid for the purchase and/or maintenance of required clothing, including clothing made from specially designed protective fabrics, which is a ready substitute for personal attire the employee would otherwise have to acquire and maintain. Designated by CCR 571 (a) as statutory items.

The City shall provide the Individually Represented Battalion Chief and Division Chief with a uniform allowance of $800.00 per year. The allowance shall be paid and reported to CalPERS over twenty-six (26) pay periods in the amount of $30.77 per pay period.

Effective in the pay period including July 1, 2024 the uniform allowance will increase to $1,600 per year. The allowance shall be paid and reported to CalPERS for Classic Members over twenty-six (26) pay periods in the amount of approximately $61.53 per pay period. If a Battalion Chief is promoted into this during the calendar year after the first pay period of the calendar year the uniform allowance will be pro-rated. (Revised 1/10/09, 1/12/08, 07/01/2024)
Upon promotion to the rank of Battalion Chief, the City will provide the specified annual uniform allowance and will reimburse the Individually Represented Battalion Chief for City uniforms purchased up to a maximum of $3.000 (for annual uniform allowance and reimbursement) as long as the employee provides a receipt documenting the expenditure for these uniforms. This is a one-time non-reportable to PERS reimbursement.

Page 455 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 10 -
If, during the term of the agreement, the Fire Chief requires sworn management Fire personnel to purchase, maintain, and wear uniforms that are substantially more costly than the standard uniform, which was required at the time this agreement was signed, the City and Individually Represented Battalion Chief and Division Chief mutually agree to meet and confer within a reasonable period of time to discuss only the issue of uniform allowance.
(Revised 7/1/2024)
Section 5.03 – Uniforms Damaged in the Line of Duty. Upon submission of proper documentation by the Department that an employee's uniform has been damaged in the line of duty, the City shall, at its discretion, pay for the cost of repair or replacement of the uniform, unless it is determined that such damage was the result of negligence on the part of the employee. "Damaged in the line of duty" shall not include normal wear and tear.

Section 5.04 – Safety Boots. The City shall provide a voucher for one (1) pair of OSHAapproved safety boots for each Individually Represented Battalion Chief and Division Chief at the time of employment and when the Fire Chief certifies that their boots are no longer serviceable. The voucher shall be in the amount of the least expensive pair of OSHA-approved safety boots, plus applicable tax, available at a vendor designated by the City.

ARTICLE 6 – RETIREMENT
Section 6.01 – CalPERS Retirement System: Employees are members of the California Public Employees’ Retirement System (hereinafter referred to as CalPERS) and are subject to all applicable provisions of the City’s contract with CalPERS for the miscellaneous employees.

Section 6.02 – Employees Hired July 31, 2011 and Earlier: Employees whose hire date as a full-time employee is July 31, 2011 or earlier will be covered under the 3% at 50 formula with the benefits specified below.

Provision Government Code Section
3% at 50 21362.2
Single Highest Year 20042
Service Credit for Unused Sick Leave 20965
2% Cost-of-Living 21329
Prior Service Credit 20055
Post-Retirement Survivor Allowance 21624, 21626, and 21635 Retired Death Benefits 21620
Pre-Retirement Option 2W Death Benefits 21548
Military Service 20996
Military Service Credit 21024
Military Service Credit for Retirees 21027
Peace Corps Service Credit 21023.5
Public Service Layoff Service Credit 21022

Page 456 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 11 -
Member Cost Sharing
(This provision was eliminated and deleted from the
CalPERS contract effective March 31, 2012)
20516
Public Service Credit for Service Rendered to a
Nonprofit Corporation
21026
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit
Purchase Upon Industrial Disability Retirement
21037
Employee Contribution. Employees have agreed to pay a pension contribution of twelve percent (12%).

Employees agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution and an additional 3% cost sharing of the employer’s contribution. It is the intent of the parties to accommodate employees’ desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the employees, the City shall not be responsible therefore and the City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS minus any cost sharing the employees have agreed to in this contract.

Section 6.03 – Employees Hired August 2, 2011 Through December 31, 2012:

Employees whose hire date as a full-time employee is August 1, 2011 through December 31, 2012 will be covered under the 2% at 50 formula with the benefit specified below.

Provision Government Code
Section
2% at 50 21362
Three year final compensation 20037
Different levels of benefits 20475
Pre-retirement Optional Settlement 2 Death Benefit 21548 Credit for Unused Sick Leave 20965
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps: VISTA
Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Nonprofit Corporation
21026
Military Service Credit for Retired Persons 21027
Local System Service Credit Included in Basic Death Benefit 21536 Cancellation of Payments for Service Credit Purchase Upon 21037

Page 457 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 12 -
Industrial Disability Retirement
9% Employee Contribution. Employees agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate employees’ desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the employees, the City shall not be responsible therefore and the City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

Section 6.04 California Employees’ Pension Reform Act of 2013: Assembly Bill No. 340 (2012) established the California Public Employees’ Pension Reform Act of 2013 (hereinafter referred to as PEPRA). The City is required to comply with the provisions of PEPRA.

Section 6.05 New Members and New Employees Under PEPRA:

New Members Defined by PEPRA. New Members are defined by PEPRA as an employee who:

A. Was brought into CalPERS membership for the first time on or after January 1, 2013 and who has no prior membership in any California public retirement system; or B. Was brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another public retirement system; or C. First established CalPERS membership prior to January 1, 2013 and who is rehired by a different CalPERS employer after a break in service of greater than six (6) months.

New Members will be covered under the 2.7% at 57 formula with the benefits specified below.

Provision Government Code
Section
$500 Retired Death Benefit Section 21620
2% Annual Cost-of-Living Allowance Increase Section 21329

2.7% @ 57 Formula for Safety Members Section 7522.25(d) Additional Service Credit 2 Years - Local Member Section 20903 Final Compensation 3 Years Section 20037
Military Service Credit as Public Service Section 21024 Military Service Credit for Retired Persons Section 21027 Pre-Retirement Death Benefits to Continue After Section 21551

Page 458 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 13 -
Remarriage of Survivor
Pre-Retirement Option 2W Death Benefit Section 21548
Prior Service Section 20055
Public Service Credit for Peace Corps, AmeriCorps
VISTA, or AmeriCorps Service Section 21023.5
Public Service Credit for Periods of Layoff Section 21022 Unused Sick Leave Credit - Local Member Section 20965
Employee Contribution. PEPRA (Government Code Section 7522.30) states “Equal sharing of normal costs between public employers and public employees shall be the standard.” The standard shall be that employees pay at least 50% of normal costs and that employers not pay any of the required employee contribution.

The “normal cost rate” shall mean the annual actuarially determined normal cost for the defined benefit plan of an employer expressed as a percentage of payroll.

New Members shall pay 50% of the normal cost adjusted annually in accordance with the CalPERS actuarial valuation for the City of Fountain Valley 2.7% at 57 plan. Any change to the New Member and New Employee contribution rate will become effective the first payroll period including July 1 of the appropriate year.

Upon receipt of the annual actuarial valuation from CalPERS for the 2.7% at 57 plan, the Human Resources Department will forward a copy to the Association specifying the New Member contribution rate for the upcoming period. This process shall serve as the meet and confer process for any increase in the employee contribution rate. The Association may request to meet with the City if the New Member and New Employee contribution rate increases but the parties understand and agree that the New Members will be required to pay 50% of the normal cost beginning on the date specified in this Section regardless of whether the parties have concluded the meet and confer process..

City Contribution. The City agrees to pay the employer contribution to CalPERS.

Section 6.06 Classic/Legacy Employees Under the California Employees’ Pension Reform Act of 2013: An individual hired on or after January 1, 2013 who was employed by any public employer before January 1, 2013 and who does not meet the definition of “New Member” under the PEPRA will be designated as a Classic/Legacy Employee.

Classic/Legacy Employees are defined as those individuals who are:

A. Working for an employer providing CalPERS retirement benefits who begins employment with the City of Fountain Valley without a break in service or a break in service of less than six (6) months; or
B. Current member of a public retirement system or plan with reciprocity with CalPERS.

Classic/Legacy members will be covered under the 2% at 50 formula with the benefits specified below.

Provision Government Code Section
2% at 50 21362

Page 459 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 14 -
Three year final compensation 20037
Different levels of benefits 20475
Pre-retirement Optional Settlement 2 Death Benefit 21548 Credit for Unused Sick Leave 20965
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps:

VISTA Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a
Nonprofit Corporation
21026
Military Service Credit for Retired Persons 21027
Local System Service Credit Included in Basic Death
Benefit
21536
Cancellation of Payments for Service Credit Purchase
Upon Industrial Disability Retirement
21037
9% Employee Contribution. Employees agree to share the cost of retirement contribution on a pre-tax basis by paying the full 9% employee contribution. It is the intent of the parties to accommodate employees’ desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the City has filed the CalPERS IRS Code section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for the employees, the City shall not be responsible therefore and the City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

City Contribution. The City agrees to pay the employer contribution to CalPERS.

Section 6.07 – Compensation Reportable to CalPERS.

Employees Hired on or Before December 31, 2012.

For purposes of calculating retirement benefits, the City will report to the California Public Employees’ Retirement System all regular compensation and special compensation (uniform allowance).

Employees Hired January 1, 2013 and Later. For purposes of calculating retirement benefits, the City will report to the California Public Employees’ Retirement System all regular compensation. In accordance with PEPRA, for employees hired beginning January 1, 2013 and later, special compensation (uniform allowance) is not pensionable compensation and therefore may not be reported to CalPERS as pensionable compensation. PEPRA, amendments to PEPRA and CalPERS law will define those special pays which may be reportable as pensionable compensation.

Section 6.08 – Retiree Health Savings Account. Individually Represented Battalion Chiefs and Division Chief hired to the City on or after 8/1/2011, will be required to contribute two percent (2%) of the top step salary for Firefighter/Paramedic per payroll period to the employee’s retiree health savings account. Contributions to the retiree

Page 460 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 15 -
health savings are made solely by the employee and all administrative fees for the plan will be deducted from each employee’s individual account assets. The account assets that accumulate, plus investment earnings, will be used in retirement to pay health insurance premiums and other eligible out-of-pocket medical expenses such as deductibles, co-payments and dental care in accordance with Internal Revenue Code Section 213. The employee contribution will be portable if an employee should leave employment with the City of Fountain Valley prior to retirement.

ARTICLE 7 – HEALTH AND OTHER INSURANCE FOR EMPLOYEES
Section 7.01 – Group Medical and Dental Insurance for Employees Hired July 31, 2011 and Earlier. The City contracts with the California Public Employees’ Retirement System’s Public Employees’ Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees. The payment of premiums towards group medical/dental/life insurance will be through the administration of a flexible benefit package.

The City shall pay the CalPERS statutory minimum employer contribution specified in Section 22892 of the Public Employees’ Medical and Hospital Care Act. In addition to the CalPERS statutory minimum employer contribution, the City shall make contributions to a flexible benefits plan as noted herein.

Employees Defined.

Tier 1 Employees are defined as those individuals employed in a full-time position with the City of Fountain Valley beginning July 31, 2011 and earlier.

Tier 1 Employees’ City Contribution. The City contribution for Tier 1 employees is as follows:

Flex Dollar Allowance Flex Dollars
Longevity
Health
Stipend
Total Flex
Allowance
Electing Employee Only coverage $623.64 $1,082.75 $1,706.39 Electing Employee +1 Dependent
coverage
$1,110.61 $595.78 $1,706.39
Electing Employee + Family
coverage
$1,428.76 $277.63 $1,706.39
The amount identified as flex dollars is inclusive of the CalPERS statutory minimum.

Individually Represented Battalion Chiefs and Division Chief who elect not to be covered under the medical plan provided through the cafeteria plan shall receive the equivalent of the CalPERS statutory minimum as cash wages. However, the employee will be required to pay for dental and life insurance premiums, both of which are mandatory out of the waiver of premium contribution (CalPERS statutory minimum).

Separation then Return to City Service. If an employee separates employment and later

Page 461 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 16 -
returns to employment with the City of Fountain Valley, the date the employee returned to employment will become the hire date for the employee and they will be considered a Tier 2 employee and only eligible for Tier 2 benefits.

Section 7.02 – Group Medical and Dental Insurance for Employees Hired August 1, 2011 and Later.

Tier 2 Employees are defined as those individuals employed in a full-time position with the City of Fountain Valley beginning August 1, 2011 and later.

Tier 2 City Contribution. The City contribution for Tier 2 employees is as follows:

Effective the first pay period in July 2019, the City contribution for Tier 2 employees is as follows:

Flex Dollar Allowance Flex Dollars
Electing Employee Only coverage $774
Electing Employee +1 Dependent coverage $1,261
Electing Employee + Family coverage $1,579
Tier 2 employees do not qualify for the longevity health stipend.

An Individually Represented Battalion Chief or Division Chief who elects not to be covered under the medical plan provided through the cafeteria plan shall receive the equivalent of the CalPERS statutory minimum as cash wages. However, the employee will be required to pay for dental and life insurance premiums, both of which are mandatory, out of the waiver of premium contribution (CalPERS statutory minimum).

Section 7.03 – Cafeteria Plan. The provisions of the Cafeteria Plan are described below.

Benefits Provided Through the Cafeteria Plan. The insurance benefits provided for in this article will be provided through the provision of a cafeteria plan adopted in accordance with the provisions of Internal Revenue Code § 125: medical and dental.

Each month the City will contribute to the cafeteria plan flex dollars for current employees and new hires as specified in Sections 7.01 and 7.02. In addition, the City will contribute a longevity stipend for Tier 1 employees as specified in Section 7.01. The City’s flex dollar contribution includes the CalPERS statutory minimum paid by the City.

Prior to January 1, 2011, dependent dental premiums were fully employee paid.

However, due to the provisions of the cafeteria plan, dependent dental premiums are to be deducted from the flex dollars. Upon retirement, retirees are not covered by a cafeteria plan; therefore, dependent dental premiums will be fully retiree paid, if coverage is elected. Nothing in these provisions require City contributions towards dependent dental premiums.

The Purchase of Optional Benefits Through the Cafeteria Plan. The cafeteria plan offers Individually Represented Battalion Chiefs or Division Chief the opportunity to purchase

Page 462 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 17 -
optional medical insurance, vision insurance, and AFLAC insurance. Eligible employees may select from any of the medical insurance plans offered by CalPERS. If CalPERS changes any of the medical insurance plans by either adding or deleting the plan options, employees will be limited to those plan options offered by CalPERS.

Individually Represented Battalion Chiefs or Division Chief may also elect any of the optional AFLAC insurance options the City offers to employees at the employee’s sole cost.

Dental and life insurance are not optional benefits and such premiums will be deducted from each employee’s cafeteria plan flex dollars or waiver of premium contribution.

Employee Contributions for Benefit Options. If an Individually Represented Battalion Chiefs or Division Chief chooses optional benefits whose aggregate cost exceeds the total flex dollar City contribution to the cafeteria plan, the City will automatically deduct the excess amount on a pre-tax basis, if applicable, from the employee’s bi-weekly payroll.

The Receipt of Cash Through the Cafeteria Plan. Individually Represented Battalion Chiefs or Division Chief will be eligible to receive cash (subject to taxation as wages) through the cafeteria plan if they either opt out of receiving medical insurance or if they choose optional benefits that do not cost as much as the flex dollars provided by the City towards the cafeteria plan. Any such employee shall be eligible to receive in cash up to a maximum of $350 per month for employees who elect medical coverage or if medical coverage in declined, up to the CalPERS statutory minimum minus dental, life and vision insurance premiums.

Individually represented Battalion Chiefs or Division Chief who are receiving cash through the cafeteria plan in excess of $350 as of September 1, 2017 are grandfathered (per a side letter of agreement) to continue to receive cash in excess of $350 per month until they are no longer a Fire Battalion Chief /Division Chief or the receipt of cash falls below $350.

In order to opt out of the City’s medical coverage, employees will be required to maintain and provide proof of group health plan coverage through an alternative source and the alternative group health plan coverage must meet the Affordable Care Act’s requirements regarding affordability and minimum value.

Section 7.04 – Term Life Insurance. The amount of term life insurance for each Individually Represented Battalion Chief and Division Chief shall be $50,000.

Section 7.05 – Long-Term Disability Insurance. The City shall maintain and pay full premium for a long-term disability insurance policy for all Individually Represented Battalion Chiefs and Division Chief. The purpose of long-term disability insurance is to ensure that the Individually Represented Battalion Chiefs or Division Chief will have a source of income if they are disabled from performing their regular duties for a period longer than sixty (60) calendar days.

Page 463 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 18 -
Eligibility. An employee's eligibility for long-term disability benefits depends on whether or not the employee's disability is industrial or non-industrial in nature. If the disability is industrially related, the employee's eligibility for long-term disability benefits begins on the sixty-first (61st) calendar day of continuous absence from work. If the employee's disability is not industrially related, the employee's eligibility begins either on the sixty-first (61st) calendar day of the employee's absence from work or upon expiration of the employee's sick leave, whichever period is longer.

In addition, the eligible employee must meet the insurance carrier's definition of disability prior to eligibility to receive benefits.

Benefits. An employee who is eligible to receive long-term disability benefits will receive

66.67% of the employee's monthly salary up to $5,000 as of the date the employee's disability began, less any deductible benefits, starting 60 days after you are out of work as provided for in the long-term disability policy.

An employee who is receiving long-term disability benefits is considered to be in an offpayroll status and will not accrue benefits during the time that they is in such status. In addition, employees who are in an off-payroll status while receiving long-term disability benefits are responsible for maintaining group medical insurance coverage and for paying the premiums therefore.

The City reserves the right to self-insure any or all Long-Term Disability benefits, provided that there shall be no change to existing eligibility requirements or coverage unless mutually agreed to in writing by both the City and the Individually Represented Battalion Chief or Division Chief.

Section 7.06 – Flexible Spending Program
The City shall provide a voluntary Flexible Spending Plan (Section 125 Plan under the Internal Revenue Code) to Individually Represented Battalion Chiefs and Division Chief.

Enrollment in the plan allows employees to pay for out-of-pocket Health Care and Dependent Care costs with pre-tax dollars. Flexible Spending Account limits will be followed by the City as set each year by the Internal Revenue Service (IRS).

At enrollment and annually thereafter, participants must designate the Flexible Spending Account election amount for the remainder of the year for new hires and for the next year for current employees. The annual amount is deducted from the employee’s paycheck in equal installments, on a pre-tax basis, and credited to the employee’s Flexible Spending Account. Reimbursement will be paid directly by a third party administrator.

Federal law prohibits any change in a Flexible Spending Account during the calendar year unless the employee or their dependent(s) have a qualifying “life event.” A qualifying “life event” is marriage, divorce or legal separation, birth or adoption of a dependent, death of a dependent, or a change in the employee or employee’s spouse’s employment status.

The change in the Flexible Spending Account must be due to and consistent with the “life event” which permits the change.

Page 464 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 19 -
An annual open enrollment period will be provided for the upcoming year’s program.

Administrative Officers must affirmatively enroll in the Flexible Spending Account for each year. There is no automatic renewal.

When estimating annual expenses, Individually Represented Battalion Chiefs and Division Chief are cautioned to only consider those expenses they is reasonably certain they will incur. Any amount left in a Flexible Spending Account at the end of the year is forfeited.

Deductions for Flexible Spending Accounts shall not reduce earnable compensation for purposes of calculating benefits or contributions for the California Public Employees’ Retirement System.

The City maintains the right to select and change, if needed, the vendor to administer the Flexible Spending Account program.

ARTICLE 8 – MEDICAL/DENTAL INSURANCE FOR RETIREES
The City shall provide group medical/dental insurance to Individually Represented Battalion Chiefs and Division Chief who retire from the City meeting the criteria and subject to the conditions and limitations noted below. The City contracts with the California Public Employees’ Retirement System’s Public Employees’ Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees and retirees.

Benefits are grouped in tiers based upon hire date and years of continuous City service.

Tier Hire Date Years of
Continuous City
Service
Provisions the Employee in
the Specified Tier is Eligible
for
1A 2/15/86 and earlier 15 or more years 1,3,4,5,6,8,11,13,15,16 1B 2/16/86-10/25/04 15 or more years 1,3,4,5,6,8,12,13,15,16 1C 10/26/04-7/31/11 15 but less than 20
years
1,3,4,5,6,9,12,13,15,16
1D 10/26/04-7/31/11 20 or more years 1,3,4,5,6,8,12,13,15,16 1E 2/15/86 and earlier
(Disability
Retirement)
N/A 2,3,4,5,6,8,11,13,15,16
1F 2/16/86 -7/31/11
(Disability
Retirement)
N/A 2,3,4,5,6,8,12,13,15,16
1G 7/31/11 and earlier if
City service does
not fit into Tiers 1A1F
1,4,6,7,14
2A 8/1/11 and later N/A 1,4,6,7,10,14
2B 8/1/11 and later
(Disability
Retirement)
N/A 2,4,6,7,10,14

Page 465 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 20 -
The provision numbers listed below correspond to the code above designating which benefits each retiree is eligible for. If a code is not included in the “Provisions the Employee in the Specified Tier is Eligible for” section, the employee in the specified tier is not eligible for that specific provision.

Provision No. 1 - Retired Employee Definition. An Individually Represented Battalion Chief or Division Chief is a retired employee when they:

A. Has reached 50 years in age or greater;
B. Has been employed for at least five (5) years;
C. Is a vested member of CalPERS;
D. Retires with a service retirement after October 1, 1980; E. Retires directly from active duty and maintains continuous coverage both prior to and subsequent to their retirement.

F. Any lapse in coverage will make the employee permanently ineligible for City contributions towards such retiree’s premiums in excess of the CalPERS statutory minimum employer contribution.

Provision No. 2 - Disability (Totally) Retired Employee Definition. An Individually Represented Battalion Chief or Division Chief is disability (totally) retired when:

Any of the following permanent disabilities shall be conclusively presumed to be total in character (total disability):

A. Loss of both eyes or the sight thereof.

B. Loss of both hands or the use thereof.

C. An injury resulting in a practically total paralysis.

D. An injury to the brain resulting in incurable imbecility or insanity.

In all other cases, permanent total disability shall be determined in accordance with the fact.

Provision No. 3 - Eligible Qualified Dependent Coverage Limitation.

For Retirements Effective July 31, 2011 and Earlier.

Qualified dependent coverage is limited to the eligible retiree and those specific dependents as defined in the service provider’s group benefit agreement that were

Page 466 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 21 -
covered at the time of the employee’s retirement, except for new spouses and newborn children who are eligible for coverage if enrolled pursuant to the group health benefit agreement.

For Retirements Effective August 1, 2011 and Later.

Definition of Qualified Dependent. A spouse and/or dependent child covered on the employee’s medical and dental plan for a minimum of two (2) full years (24 months) prior to retirement. Such dependent will be classified as a qualified dependent.

New Spouse Exception. An exception will be made for employees who get married and add their spouse to their medical plan within thirty (30) calendar days of the marriage. In such cases, the spouse must be on the plan for a minimum of one (1) full year (12 months) prior to their retirement in order to receive City contributions towards retiree medical and will be classified as a qualified dependent. No other exceptions will be made.

A. If the retiree covers 1) himself/herself and 2) a dependent child, the month during which the dependent child reaches age 23, the City ceases contributions for the dependent child and pays only single coverage for the retiree.

B. If the retiree covers 1) himself/herself, 2) a spouse and 3) a dependent child, the month during which the dependent child reaches age 23, the City ceases contributions for the dependent child and pays two-party coverage for the retiree and spouse.

C. If the retiree covers 1) himself/herself, 2) a spouse and 3) more than one (1) dependent child, the City will continue to pay family coverage. Effective during the month during which the youngest child reaches age 23, the City ceases contributions for the dependent child(ren) and pays two-party coverage for the retiree and spouse.

Definition of Non-Qualified Dependent. A dependent added to the employee’s medical and dental plan less than two full years (24 months) prior to retirement or at a later date is ineligible for any City contribution towards medical insurance. A newly-married spouse not added to the employee’s medical and dental plan within thirty (30) calendar days of marriage and on the plan for a minimum of one full year prior to the employee’s retirement is ineligible for any City contributions towards medical insurance. The non-qualified dependent may enroll in the medical plan; however, premiums for such enrollment are entirely dependent paid. The City will not pay any contributions towards the medical premium for non-qualified dependent(s).

Premiums for additional covered dependent(s) or dependent(s) added on at a later date in accordance with plan provisions will be paid entirely by the retiree and will be classified as non-qualified dependent(s). Dependent dental premiums will be paid entirely by the retiree. Failure to pay premiums for non-qualified dependent(s) will result in loss of

Page 467 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 22 -
coverage.

Provision No. 4 - Separation then Return to City Service. If an employee separates employment and later returns to employment with the City of Fountain Valley, the date the employee returned to employment will become the hire date for the employee and they will be considered a new hire and only eligible for new hire benefits.

Provision No. 5 - Limitation. There is no cash back provision if the premiums for the medical and dental plans for qualified dependents is less than the difference between the CalPERS statutory minimum and the medical premium for the plan selected for the retiree and eligible qualified dependent(s) and retiree only dental premium up to the maximum the City contributes for active Individually Represented Battalion Chiefs or Division Chief for Tier 1 employees.

Provision No. 6 - Life Insurance. Retirees are not eligible for life insurance coverage through the City.

Provision No. 7 - CalPERS Statutory Minimum Employer Contribution. Only while participating in the CalPERS medical plan will the City pay the CalPERS statutory minimum employer contribution specified in Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA) to CalPERS. Should the City discontinue contracting with PEMHCA at any time, the City will not be responsible for paying any contribution towards health insurance premiums for such retiree and those premiums shall be entirely retiree paid. No City contributions towards dental insurance.

Provision No. 8 - City Contributions.

For Retirements Effective July 31, 2011 and Earlier.

The City will contribute towards the monthly medical premium for the retiree and eligible qualified dependent(s) as specified in Provision No. 3 for retirements effective July 31, 2011 and earlier and retiree only dental premium up to the maximum the City contributes for active Individually Represented Battalion Chiefs or Division Chief. At no time, will the maximum City contribution be less than the maximum City contribution at the time the employee retired from the City.

For Retirements Effective August 1, 2011 and Later.

The City will contribute towards the monthly medical premium for the retiree and those eligible qualified dependent(s) as specified in Provision No. 3 for retirements effective August 1, 2011 and later and retiree only dental premium up to the maximum the City contributes for active Individually Represented Battalion Chiefs or Division Chief. At no time, will the maximum City contribution be less than the maximum City contribution at the time the employee retired from the City.

Provision No. 9 - City Contributions (75%).

For Retirements Effective July 31, 2011 and Earlier.

Page 468 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 23 -
contributes for active Individually Represented Battalion Chiefs or Division Chief. At no time, will the maximum City contribution be less than the maximum City contribution at the time the employee retired from the City.

For Retirements Effective August 1, 2011 and Later.

The City will contribute towards the monthly medical premium for the retiree and those eligible qualified dependent(s) as specified in Provision No. 3 for retirements effective August 1, 2011 and later and retiree only dental premium up to 75% of the maximum the City contributes for active Individually Represented Battalion Chiefs or Division Chief. At no time, will the maximum City contribution be less than the maximum City contribution at the time the employee retired from the City.

Provision No. 10 - Retiree Health Savings Account.

See Section 6.08
Provision No. 11 - Supplemental to Medicare City Contribution. Coverage will become supplemental to Medicare at age 65. The City will pay the medical premium, as applicable for the retiree and eligible qualified dependent(s) and retiree only dental premium up to the maximum the City contributes for active Individually Represented Battalion Chiefs for Tier 1 employees. At no time, will the maximum City contribution be less than the maximum City contribution at the time the employee retired from the City Provision No. 12 - Termination of City Contribution.

For Retirements Effective July 31, 2011 and Earlier.

Medical coverage will terminate upon the retiree or covered dependent reaching age 65, at which time, the employee and covered dependent(s) continues coverage at their own expense for medical insurance. Only while participating in the CalPERS medical plan will the City pay the minimum employer contribution specified in Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA) to CalPERS. Retiree only dental premiums will continue to be paid by the City until the retiree’s death.

For Retirements Effective August 1, 2011 and Later.

Medical coverage will terminate upon the retiree or covered dependent reaching age 65, at which time, the employee and covered dependent continues coverage at their own expense for medical insurance. Only while participating in the CalPERS medical plan will the City pay the minimum employer contribution specified in Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA) to CalPERS. City contributions for retiree dental premiums will continue until the retiree’s death but effective the month immediately following the retiree reaching age 65, the City contribution for dental will be limited to the single premium for the HMO dental plan. Should the employee elect the PPO dental plan, the employee will be billed for the difference between the HMO and PPO single premium. Failure to pay the difference in premiums will result in a change to HMO single dental coverage.

Provision No. 13 – Surviving, Eligible Qualified Dependent(s) City Contribution.

While eligible for City contributions, the City pays the actual supplemental to Medicare/basic medical premium for the surviving spouse and eligible qualified dependent(s) up to the maximum the City contributes for active Individually Represented

Page 469 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 24 -
Battalion Chiefs or Division Chief for Tier 1 employees minus the CalPERS statutory minimum employer contribution during the time period the survivors are eligible for City contributions. No City contributions towards dental premiums.

Provision No. 14 - Retiree Contributions. The retiree enrolls in the medical plan at their own expense for medical insurance.

The retiree may elect dental coverage through COBRA continuation for 18 months. If elected, the retiree will pay the full premium plus the 2% administrative fee. Failure to pay premiums will result in loss of coverage.

Provision No. 15 - Retiree Contributions.

Premiums for Plan Selected Exceeds the Total City Contribution.

If a retiree chooses benefits whose aggregate premium cost exceeds the total City contribution, the retiree will be responsible for paying the excess premiums.

Non-Qualified Dependent(s).

If non-qualified dependent(s) are covered under the plan, the retiree will be responsible for paying for the full premium for such dependent(s).

Dependent Dental Premium.

If dependent dental coverage is elected, the dependent dental premium is deducted from the City’s reimbursement to the retiree for health premiums or the retiree will be billed because such premiums continue to be employee/retiree paid.

Medicare Premium.

Medicare premiums are fully retiree paid.

Provision No. 16 - Surviving Eligible Qualified Dependent(s) Coverage - Continuation on the Medical and Dental Plans. The surviving spouse and dependent(s) of a deceased retiree or dependent survivors of employees killed in the line of duty may continue on the City’s medical and dental plan which will become supplemental upon eligibility of the surviving spouse or dependent children for other group health insurance or Medicare at age 65. If the surviving spouse remarries, all coverage, including supplemental coverage paid by the City will terminate. If none of the events listed above which would terminate coverage occurs, coverage for surviving dependent(s) of deceased retirees or employees killed in the line of duty under the City’s group medical insurance plan will continue in accordance with the provisions of the City of Fountain Valley’s group medical insurance carrier, after which the surviving dependent(s) will be provided an opportunity to continue their coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA). City contributions will continue until such time as any of the conditions listed above render the surviving dependent(s) ineligible for coverage or until coverage otherwise is terminated. Dental premiums for the surviving spouse and eligible qualified dependent(s) are paid by the survivor and will be deducted from the City reimbursement or the survivor will be billed if coverage is elected.

Page 470 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 25 -
ARTICLE 9 - LEAVES
Section 9.01 – Holidays. The Individually Represented Battalion Chief and Division Chief shall be entitled to eleven (11) paid holidays per calendar year except as otherwise provided for in this Memorandum of Understanding. The eleven (11) eight (8) hour paid holidays to which Individually Represented Chiefs are entitled shall be as follows:

New Year's Day
Martin Luther King Jr. Day
President’s Day (Washington's Birthday)
Memorial Day
Independence Day
Labor Day
Veterans' Day
Thanksgiving and the day after Thanksgiving
Christmas
"Floating Holiday"
Section 9.02 – Holiday Payoff. This is defined as additional compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays. Designated by 2 CCR §571 (a) (4) as statutory items. Payment for holidays shall be based on a forty (40) hour per week hourly base rate and shall be made in the payroll period in which the holiday is observed.

New hires will only be entitled to holiday payoff for the holidays observed in accordance with the Administrative Regulation for holidays for the specific calendar year, starting with their employment date moving forward. Holidays that were observed in the calendar year previous to the employee’s hire date are not compensable to the new hire.

Section 9.03 – Administrative Leave and Holidays. The Individually Represented Battalion Chief/Fire Operations/Training Division Chief (administrative position) will have, in addition to regular base pay, the option of taking holiday time off or using Administrative Leave with the approval of their supervisor, or of being paid for the unused holiday time.

Accrued vacation may not be used in lieu of holiday time. Payment for holidays shall be based on a forty (40) hour per week base hourly rate and paid in accordance with Section

9.02 and are non-reportable to PERS.

Section 9.04 – Vacation Accrual Rate. The Individually Represented Battalion Chief and Division Chief assigned to a 56-hour schedule shall accrue vacation time at the following rates:

Years of Service Hours Per Year Hours Per Payroll Period Less than 1 year 112 4.31
2-5 years 168 6.46
6-7 years 180 6.92
8-9 years 192 7.38
10-11 years 204 7.85

Page 471 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 26 -
12-14 years 216 8.31
15 or more years 280 10.77
The Individually Represented Battalion Chief or Division Chief assigned to a forty (40) hour schedule shall accrue vacation time at the following rates:

Years of Service Hours Per Year Hours Per Payroll Period Less than 1 year 80 3.08
2-5 years 120 4.62
6-7 years 128 4.92
8-9 years 136 5.23
10-11 years 144 5.54
12-14 years 152 5.85
15 or more years 200 7.69
Section 9.05 – Maximum Vacation Accruals. The Individually Represented Battalion Chief or Division Chief shall be entitled to accrue a maximum of three hundred thirty-six (336) hours of vacation time when assigned to a fifty-six (56) hour per week shift and a maximum of 240 hours of vacation time when assigned to a forty (40) hour per week shift.

An exception will be made for an employee who is absent from duty as a result of an industrial injury/illness, and who is concurrently precluded from utilizing vacation time, shall be allowed to accrue more than 336 hours as long as they remain absent from duty as the result of an industrial injury.

Section 9.06 – Vacation Buy Back. The Individually Represented Battalion Chief or Division Chief will have the option to request cash payment for accrued vacation in accordance with the following:

When assigned to a fifty-six (56) hour per week shift.

At the end of each calendar year, the Individually Represented Battalion Chief or Division Chief assigned to a fifty-six (56) hour shift shall have the option of receiving a cash payment for accrued vacation up to a maximum of fifty-six (56) hours if the following criteria are met:

A. A minimum of 112 hours of vacation have been used during the calendar year.

Vacation may be utilized in any increment as approved by their supervisor as long as a minimum of 112 hours have been used.

B. A minimum accrual of thirty-four (34) hours of vacation remains after payoff.

If the aforementioned criteria have been met, the Individually Represented Battalion Chief or Division Chief may request a cash payment of fifty-six (56) hours maximum to be included in the holiday warrant to be issued within the first ten (10) days in December.

When assigned to a forty (40) hour per week shift.

Page 472 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 27 -
At the end of each calendar year, the Individually Represented Battalion Chief or Division Chief assigned to a forty (40) hour per week shift shall have the option of receiving a cash payment for accrued vacation up to a maximum of forty (40) hours if the following criteria are met:

A. A minimum of eighty (80) hours of vacation have been used during the calendar year.

Vacation may be utilized in any increment as approved by their supervisor as long as a minimum of eighty (80) hours have been used.

B. A minimum accrual of twenty (20) hours of vacation remains after payoff.

If the aforementioned criteria have been met, the Individually Represented Battalion Chief or Division Chief may request a cash payment of forty (40) hours maximum to be included in the holiday warrant to be issued within the first ten days in December.

To request a vacation payoff, the employee must submit an irrevocable election form specifying the number of hours the employees is requesting which must be received in the Human Resources Department before December 31 of the year prior to the payoff.

For example, to receive a payout in 2021, a Fire Battalion Chief or Division Chief must submit a completed irrevocable election form to Human Resources before December 31, 2020. If during the 2021 calendar year, the employee meets the criteria specified herein to be eligible for vacation payoff, they will receive the requested payoff. If the employee does not submit the irrevocable election form within the required timeline or they does not meet the criteria for payoff, no payoff will be given.

Section 9.07 Sick Leave Accrual Rate. The Individually Represented Battalion Chief or Division Chief shall accrue sick leave at the rate of twelve (12) hours per month when assigned to a fifty-six (56) hour per week schedule and eight (8) hours per month when assigned to a forty (40) hour per week schedule.

Section 9.08 – Sick Leave Usage. Sick leave for the employee’s own illness may be used for the following purposes in accordance with Labor Code sections 245-249:

A. The diagnosis, care or treatment of an existing health condition or preventative care.

B. For an employee who is a victim of domestic violence, sexual assault or stalking to obtain or attempt to obtain any relief, including but not limited to, a temporary restraining order, restraining order or other injunctive relief, to help ensure the health, safety or welfare of the employee or their child(ren) and also:

1. Seek medical attention for injuries caused by domestic violence, sexual assault or stalking.

2. Obtain services from a domestic violence shelter, program or rape crisis center as a result of domestic violence, sexual assault or stalking.

Page 473 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 28 -

3. Obtain psychological counseling related to an experience of domestic violence, sexual assault or stalking.

4. Participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault or stalking including temporary or permanent relocation.

The use of sick leave shall be subject to the approval of the Fire Chief, who may request a physician's statement or other documentation substantiating the illness at any time, and may require a release to duty before allowing an employee to return to duty.

Sick leave may be used for absences resulting from industrial injuries or illnesses.

Section 9.09 - Sick Leave Usage for Family Illness. The Individually Represented Battalion Chief or Division Chief may use accrued sick leave up to a maximum of onehalf of one year’s annual accrued sick leave seventy-two (72) hours for employees on a fifty-six (56)-hour work schedule or forty-eight (48) hours for employees on a forty (40- hour work schedule) for family illness. In accordance with Labor Code sections 245-249, family sick leave may be used for the diagnosis, care or treatment of an existing health condition or, or preventative care for an employee’s family member as defined below:

A child (biological, adopted, foster child, step child, legal ward or a child to whom the employee stands in loco parentis) regardless of age or dependency status.

A biological, adoptive, or foster parent, step parent or legal guardian of an employee or the employee’s spouse or registered domestic partner or a person who stood in loco parentis when the employee was a minor child.

A spouse.

A registered domestic partner.

A grandparent.

A grandchild.

A sibling.

An employee may designate one person per 12-month period at the time the employee requests family sick leave.

Individuals who live in the same household or whose relationship to the employee is that of a dependent or near-dependent.

Section 9.10 – Sick Leave Payoff. Upon completion of ten (10) years of continuous service with the City, the Individually Represented Battalion Chief or Division Chief who separates from the City for any reason other than termination for cause shall be paid 25% of the employee's accrued, unused sick leave balance at the time of separation. In the event of death, if the employee has completed ten (10) years of continuous service with the City, the value of 25% of the employee's accrued, unused sick leave will be paid to the employee's estate.

Section 9.11 – Retirement Credit for Unused Sick Leave. Pursuant to Government Code Section 20862.8 and the City's contract with CalPERS, the Individually Represented Battalion Chief who retires from the City may receive service credit towards their retirement for a maximum of two-thousand (2,000) hours of accrued, unused sick

Page 474 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 29 -
leave for which they do not receive compensation. This provision shall apply to the Individually Represented Battalion Chief or Division Chief whose effective date of retirement is within four (4) months, one-hundred twenty (120) days of separation from employment with the City.

Section 9.12 – Sick Leave Upon Reinstatement. In accordance with Assembly Bill 1522, beginning July 1, 2015, should a sworn, non-management fire employee separate from employment with the City of Fountain Valley then is rehired by the City within one year from the date of separation, their accrued, unused sick leave hours at the time of separation or hours reported to CALPERS after any sick leave payoff if any, shall be reinstated once the employee is rehired by the City.

Section 9.13 – Bereavement Leave. The Individually Represented Battalion Chief or Division Chief who have been employed for at least thirty (30) days with the City shall be entitled to a maximum of five (5) working days of absence (AB 1949) in which three (3) working days of absence will be paid as Bereavement Leave, when they are compelled to be absent from duty by reason of death of an immediate family member, or in the event of critical illness where death appears to be imminent.

For purposes of bereavement leave, "immediate family member" refers to spouse, registered domestic partner, child, step-child, grandchild, sibling, parent, step-parents, parents-in-law, grandparents, or legal guardian.

Section 9.14 – Administrative Leave. The Individually Represented Battalion Chief assigned to suppression and working a fifty-six (56) hour per week schedule shall eligible to receive forty-eight (48) hours of Administrative Leave per calendar year or prorated for less than a calendar year. These hours are meant to compensate those assigned to suppression who attend conference(s) each year that may fall on an employee’s regularly scheduled day(s) off. When assigned to Fire Operations/Training Division Chief working a forty (40) hour per week schedule, they shall be eligible to receive Administrative Leave equivalent to one (1) day per month (maximum ninety-six (96) hours each calendar year).

If a suppression employee is promoted to a Fire Operations/Training Division Chief during the calendar year, they will receive the difference between the suppression administrative leave hours and the Fire Ops/Training Division Chief administrative leave hours on a prorated amount.

Section 9.15 – Industrial Injury Leave. The Individually Represented Battalion Chief or Division Chief may be entitled to a maximum of one (1) year industrial injury leave with full salary and benefits, pursuant to Labor Code Section 4850.

Reassignment to a Forty (40) Hour Schedule. Employees reassigned from a fifty-six (56) hour to a forty (40) hour schedule to work light duty shall continue to accrue vacation and sick leave at the fifty-six (56) hour rate. In addition, an employee reassigned to a forty (40) hour schedule and using accrued vacation or sick leave shall be charged one (1) hour for each hour of vacation or sick leave used.

Page 475 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 30 -
ARTICLE 10 - ILLEGAL/CONTROLLED SUBSTANCE SCREENING
The Individually Represented Battalion Chief or Division Chief acknowledges the City's right to, at its discretion, include illegal/controlled substance screening as part of the pre-employment physical examination for employees hired. "Illegal/Controlled Substance" is defined as a drug, substance, or immediate precursor which are included in Schedules I through V, inclusive of the "California Uniform Controlled Substances Act" (Health and Safety Code Sections 11054-11057), as well as defined in Health and Safety Code Sections 11018-11020.

The random, reasonable suspicion and post-accident drug and alcohol testing is detailed in Administrative Regulation No.1060.

ARTICLE 11 – PHYSICAL FITNESS PROGRAM AND HEALTH EVALUATIONS Section 11.01 – Physical Fitness/Wellness Program. The voluntary physical fitness/wellness program shall involve the following elements:

A. Performance testing shall be completed in May and September of each year. A representative from the Human Resources Department may preside over the testing process.

B. Performance testing standards shall be calibrated according to the age of the candidates as specified in Exhibit 1.

C. Performance testing shall be conducted while the Individually Represented Battalion Chief is on duty; however, workouts in preparation for the testing shall be carried out on off-duty hours.

D. Eligible personnel who have previously met all performance standards and are unable to re-qualify due to an injury or illness shall continue to receive Wellness Pay subject to the determination of the Fire Chief that the person is unable to participate in the performance test. However, said personnel shall be required to submit to a performance test as soon as they are released to full duty.

E. Eligible personnel who fail any or all standards of the performance testing process shall be given the opportunity to retest within thirty (30) days of the failure.

Section 11.02 – Health Evaluations. The City of Fountain Valley agrees to contract with a qualified health-care provider to conduct periodic health/fitness evaluations of Individually Represented Battalion Chiefs and to pay the cost of such evaluations subject to the provisions listed below.

A. Confidentiality of Information. The medical portion of the results of the health/fitness evaluations shall be protected as confidential, medical information and shall not be disclosed to anyone other than the employee, unless a condition or situation exists where it appears as though an employee has sustained a job-related illness, injury, or disease, or where the evaluation reveals a condition, illness, injury or disease which might jeopardize the health and safety of others. In either of these situations, the

Page 476 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 31 -
employee and the City shall be notified of any limitations on the ability to perform the essential job functions and the nature and/or extent of the limitations.

B. The City of Fountain Valley and the Individually Represented Battalion Chief have met and conferred on several occasions to discuss integration of the current health evaluation program for Public Safety Personnel and have reached agreement on a new program effective March 2010 to include the following provisions:

1. Wellness Program for Public Safety Personnel. The City’s Qualified Health Provider will provide:
a. Comprehensive fitness assessment and individualized fitness profile. b. Blood chemistry panel for general health and coronary risk screening. c. Lecture series on health, nutrition, injury prevention, and exercise science topics.

2. Health Evaluation Components for Employees Age 35 and Under. Employees 35 years and under shall receive:
a. Health Evaluations to be Conducted by the City’s Qualified Health-Care Provider:

1. Lung x-ray every other year.

2. Doctor’s examination annually.

3. HIV screening annually.

4. Tuberculosis screening annually.

5. Hepatitis B screening as needed.

6. Respirator examination annually.

7. Review stress EKG results annually.

8. Review lab results annually.

9. Heavy metal exposure annually.

10.Blood screening (comprehensive metabolic panel and lipid/cardio risk profile) annually.

11.Stress EKG annually.*

12.Pulmonary function annually.

3. Health Evaluation Components for Employees Over Age 35: Employees age 35 and over shall receive:
a. Health Evaluations to be Conducted by the City’s Qualified Health-Care Provider:

1. Lung x-ray annually.

2. Doctor’s examination annually.

3. HIV screening annually.

4. Tuberculosis screening annually.

5. Hepatitis B screening as needed.

6. Respirator examination annually.

7. Review stress EKG results annually.

8. Review lab results annually.

9. Heavy metal exposure annually.

Page 477 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 32 -

10.Blood screening (comprehensive metabolic panel and lipid/cardio risk profile) annually.

11.Stress EKG annually.*

12.Pulmonary function annually.

C. Individually Represented Battalion Chiefs shall attend the health evaluations on duty.

Individually Represented Battalion Chiefs may not attend the health evaluation while not on duty without the express pre-approved authorization of the Fire Chief.

ARTICLE 12 - GRIEVANCE PROCEDURE
Section 12.01 - General. The following grievance procedure is for the purpose of affording employees a means of obtaining appropriate consideration by supervisory and management personnel of problems within their power to resolve.

Section 12.02 - Scope of Grievance Procedure. A grievance may be initiated by any employee who believes that the application of a policy, practice, rule, or procedure has been incorrect or inappropriate, and has adversely affected their employment.

A. The following subjects are excluded from the scope of the grievance procedure:

1. Matters which have other means of appeal within the City, including disciplinary actions.

2. Matters which are within the exclusive jurisdiction of another agency and for which a means of appeal is provided.

3. Matters pertaining to clarification of any of the provisions of this Memorandum of Understanding are within the scope of the grievance procedure.

4. Classification content.

Section 12.03 - Form. All grievances must be submitted in writing and must contain the following information:

A. Employee's name, title, department, and division.

B. The name of the individual or organization, if any, representing the employee in the grievance procedure.

C. The date the grievance is being submitted.

D. The nature of the grievance, including a statement of the specific rules, regulations, policies, procedures, ordinances, or resolutions, if any, which are alleged to have been violated, the date the alleged violation occurred and the specific decision or action which constituted the alleged violation.

E. The facts and/or circumstances which gave rise to the grievance.

F. Any available support documentation or other material which is to be considered in conjunction with the grievance.

Page 478 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 33 -
G. A statement of efforts that have been undertaken to resolve the grievance informally.

Section 12.04 - Informal Discussion. If an employee has a problem relating to a work situation, the employee is encouraged to request a meeting with their immediate supervisor to discuss the problem in an effort to clarify the issue and to work cooperatively towards resolution.

Section 12.05 - Formal Grievance Procedure.

A. Step 1

1. An employee shall submit a grievance to their immediate supervisor within fifteen (15) calendar days of the occurrence giving rise to the grievance, or within fifteen (15) calendar days of the date that the employee became aware of the occurrence giving rise to the grievance. Grievances submitted pursuant to this section shall include a statement of efforts that have been undertaken to resolve the grievance informally.

2. Upon receipt of a formal grievance, the employee's supervisor shall make an initial determination as to whether or not they have the authority to resolve the grievance.

If so, the supervisor shall proceed as outlined in subsection (3) below. If the supervisor determines that it is not within their authority to resolve the grievance, the grievance shall be forwarded to the appropriate individual within the chain-ofcommand for consideration and the employee shall be so notified.

3. Within fifteen (15) calendar days after receipt of a formal grievance, the supervisor to whom the grievance is directed shall meet with the employee who may be accompanied by their designated representative. Within fifteen (15) calendar days after meeting with the employee, the supervisor shall forward their decision in writing to the employee.

B. Step 2

1. A formal grievance that has not been satisfactorily resolved at the supervisory level may be submitted to the employee's Department Director within fifteen (15) calendar days after receipt of the decision rendered by the appropriate supervisor.

2. Within fifteen (15) calendar days after receiving the grievance, the Department Director shall schedule a meeting with the employee who may be accompanied by their designated representative. Within fifteen (15) calendar days after meeting with the employee, the Department Director shall notify the employee in writing of their decision.

Section 12.06 - Appeal to City Manager.

A. Grievances which are not satisfactorily resolved under Step 2, and which meet the conditions set forth below, may be submitted to the City Manager within fifteen (15) calendar days after receipt of the written decision from Step 2.

Page 479 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 34 -
B. Grievances which meet one or more of the following conditions may be submitted to the City Manager:

1. The grievant alleges an abuse of discretion on the part of the Department Director during the grievance process.

2. The remedy sought is not within the authority of the Department Director to approve or implement.

C. Grievances submitted to the City Manager shall be accompanied by the following information:

1. Copies of the written decisions at Steps 1 and 2.

2. Information indicating how or in what manner the Department Director abused their discretion, if an abuse of discretion is alleged and/or how the remedy sought is not within the authority of the Fire Chief to approve or implement.

D. Within fifteen (15) calendar days after receipt of the grievance, the City Manager shall schedule a meeting with the employee who may be accompanied by their designated representative. The date, time, and location of the meeting shall within reason be acceptable to both parties, and shall be scheduled so as to accommodate those individuals whose presence may be required at the meeting.

E. The City Manager may conduct such activities as are necessary and appropriate to properly resolve the employee's grievance.

F. The City Manager shall submit a written response to the employee within fifteen (15) calendar days after meeting with the employee or within fifteen (15) calendar days after completing their investigation.

Section 12.07 - Extension or Waiver of Time Limits. Any of the time limits contained in this grievance procedure may be extended or waived upon mutual agreement of the City and the employee or their representative.

Section 12.08 - Conduct of Grievance Procedure.

A. An employee may be represented by a person of their choosing at any step of the grievance procedure.

B. Employees shall be assured freedom from reprisal good faith utilization of the grievance procedure.

C. Proceedings held pursuant to this grievance procedure shall not be evidentiary hearings. This limitation shall not preclude the grievant from presenting witnesses or other relevant evidence as matter as part of the proceedings.

Page 480 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 35 -
Section 12.09 - Interpretation of MOU. Questions regarding the interpretation and/or application of any of the provisions of this Memorandum of Understanding shall be formally raised only by the parties to the MOU, subject to the following conditions:

A. The party raising the question of interpretation/application of the MOU shall notify the other party of the nature of the question within ten (10) working days after the matter is brought to their attention.

B. Both parties shall attempt to resolve the dispute at the supervisory or departmental level, if appropriate. If it is not possible to resolve the matter at the supervisory or departmental level, both parties shall submit a statement of the facts concerning the matter to the City Manager for their findings and determination.

Section 12.10 - Appeals of Testing and Selection Procedures.

A. An employee who wishes to appeal a testing or selection procedure or the results thereof, shall present his or her appeal to the immediate supervisor, who shall forward the appeal through the chain-of-command to the City Manager/ Human Resources Director or their designated representative. Appeals of testing or selection procedures may not be filed until the testing and selection process is completed, and shall be filed within fifteen (15) calendar days after the certification of the eligibility list. All persons who participated in the testing and selection process shall be notified of the date on which the eligibility list is certified.

B. Upon receiving an appeal of a testing or selection procedure or the results thereof, the City Manager shall investigate, or cause to be investigated, all relevant facts regarding the appeal, and shall make a determination which shall be final. Such an appeal shall not require a hearing.

C. An employee can only appeal a selection/testing procedure if the result would place him/her on the eligibility list, or change their position on this list. An individual appealing a testing/selection procedure must have been an applicant, or would have been, but for the procedure being appealed.

C. If the City Manager makes a determination sustaining the appeal and such determination results in the invalidation of all or part of the testing and selection procedure, a new recruitment shall be initiated.

ARTICLE 13 - APPEALS OF DISCIPLINARY ACTIONS
Section 13.01 - General Provisions.

A. City agrees to afford Individually Represented Battalion Chiefs and Division Chief the protections of the Firefighters Procedural Bill of Rights Act (hereinafter “FBOR”) as enacted in AB 220, Chapter 591 Stats 2007, as set forth in Government Code Section 3250 et seq.

Page 481 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 36 -
B. No Individually Represented Battalion Chief or Division Chief shall be disciplined unless the person imposing the disciplinary action believes, in good faith, that reasonable cause exists for imposing disciplinary action.

C. Any permanent employee (this article does not apply to a probationary employee) shall have the right to appeal any punitive action imposed on him/her, subject to the conditions contained in this section.

D. For purposes of this section, "Punitive Actions" refer to the following: written reprimand, suspension without pay, demotion, reduction in pay, termination, or transfer for purposes of punishment (Government Code Section 3251(c)). Discipline involving punitive actions may be appealed to an Administrative Law Judge.

E. Oral reprimands may be appealed only to the next level within the chain-of-command.

All other discipline not involving discharge, demotion, suspension or reduction in salary may be appealed up to the City Manager.

F. At all times prior to and during the imposition and appeal of a disciplinary action, the City shall take whatever steps necessary to ensure compliance with procedural due process requirements including but not limited to the FBOR. Pre-disciplinary efforts will include at a minimum and where appropriate and required by case law, notice to the employee of the intent to take disciplinary action, a description of the action, a statement of reasons on which the action is based, copies of material on which the notice is based, the opportunity to be heard prior to the rendering of a decision, and a statement of the right to appeal.

G. An appeal is an application for review of the type and degree of discipline at issue, and may result in increased discipline.

Section 13.02 - Appeal Procedures for Discipline Not Involving Discharge, Demotion, Suspension or Reduction in Salary.

A. Disciplinary action imposed against an employee may be appealed for any of the following reasons:

1. A disagreement or dispute over the facts giving rise to the imposition of disciplinary action.

2. Abuse of discretion by the supervisor imposing discipline, or by a reviewing authority. Abuse of discretion includes, but is not limited to: exceeding or acting without authority, denying an employee procedural due process, or imposing discipline that is not warranted in either type or degree by the offense.

B. Appeal of a disciplinary action must be filed with the Fire Chief within fifteen (15) calendar days of the date the disciplinary action was imposed.

C. Appeal of a disciplinary action must be in writing, and must include, as a minimum, the following:

Page 482 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 37 -

1. If the employee is alleging a disagreement over facts, a statement regarding what facts, if any, are in dispute. If there is no dispute over the facts, the appeal should so state.

2. If the employee is alleging abuse of discretion by the supervisor who imposed disciplinary action, on him/her, a statement setting forth the manner in which the supervisor imposing the disciplinary action abused their discretion. Specifically, the statement must show that the supervisor has exceeded or acted without authority; that the employee was denied procedural due process; or that the disciplinary action imposed was not warranted by the facts of the situation.

3. The remedy being sought by the employee.

D. Upon receiving an appeal of a disciplinary action, the Fire Chief shall first determine whether or not the appeal complies with Sections 13.02 B and 13.02 C 1, 2, and 3. If not, the appeal shall be denied on the basis of one or more of the following:

1. The appeal was not filed in a timely manner, pursuant to Section 13.02B.

2. The appeal does not allege a dispute over the facts, or abuse of discretion, or is otherwise incomplete.

E. If the appeal complies with Sections 13.02 B and 13.02 C 1, 2 and 3, the Fire Chief shall take the necessary steps to determine the merits of the appeal. Included in such steps will be the opportunity for the employee and their designated representative to meet with the Fire Chief, and to review any additional evidence which supports the disciplinary action.

F. Within five (5) working days after completing their investigation of appeal, the Fire Chief shall notify the employee in writing of their decision, and rationale.

Section 13.03 - Appeal to the City Manager for Discipline Not Involving Discharge, Demotion, Suspension or Reduction in Salary.

A. The decision of the Fire Chief may be appealed to the City Manager within fifteen (15) days after the Fire Chief's decision is rendered. Upon receiving such an appeal, the City Manager shall proceed in the same manner as outlined in Section

13.02D except that the rights provided by the FBOR shall be afforded.

B. If the disciplinary action imposed involves a significant property right, an employee shall be assured the right to a formal hearing in compliance with the FBOR, unless such right is specifically waived by the employee. If the disciplinary action does not involve a significant property right, the City Manager may conduct a formal or informal hearing, or no hearing.

C. Within fifteen (15) calendar days after completing the investigation of the appeal, the City Manager shall notify the employee in writing of their decision and the

Page 483 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 38 -
reasons. The decision of the City Manager shall be final, except as provided in Section 2.52.200 of the Fountain Valley Municipal Code.

Section 13.04 – Appeal Procedures For Suspension, Reduction in Pay, Demotion and Termination. The administrative appeal process provided for discipline involving punitive action is established pursuant to Government Code §3254.5 of the Firefighters Procedural Bill of Rights. This administrative appeal process shall apply to Individually Represented Battalion Chiefs and Division Chief.

A. Definitions:

1. The term “fire personnel” means an employee who is considered a firefighter under Government Code § 3251(a) as well as any fire personnel who are peace officers pursuant to Penal Code § 830.37.

2. The term “punitive action” means any action defined by Government Code § 3251 (c), i.e., “any action that may lead to dismissal, demotion, suspension, reduction in salary, written reprimand or transfer for purposes of punishment.” A layoff is not punitive action subject to a disciplinary appeal.

B. Notice of Appeal: In accordance with California Government Code Section 11506(a), within fifteen (15) calendar days following receipt of notification of punitive action, the employee shall notify the Human Resources Director in writing of the employee’s intent to appeal the punitive action.

C. The appeal hearing shall be before a State Administrative Law Judge (“ALJ”) and shall be conducted in accordance with Chapter 5 (commencing with § 11500) Part 1 of Division 3 of Title 2 of the California Government Code.

1. Notice of Discipline as Accusation: The final notice of discipline which may be issued at the conclusion of any pre-disciplinary procedures shall serve as the Accusation as described in Government Code § 11500, et seq.

2. Timing: Pursuant to Government Code § 3254(f), the discipline shall not be effective sooner than forty-eight (48) hours following issuance of the final notice of discipline and the notice shall be given in writing within thirty (30) calendar days of the decision to impose discipline.

3. Notice: The notice shall be prepared and served in conformity with the requirements of Government Code § 11500, et seq. A copy of Chapter 5 (commencing with § 11500) of Part 1 of Division 3 of Title 2 of the California Code shall be provided to the employee concurrently with the notice of discipline.

4. Time and Place of Hearing: Pursuant to Government Code § 11508, unless otherwise decided by the ALJ, the hearing shall be conducted at City Hall at a date and time to be determined by the ALJ.

5. Notice of the Hearing: Notice of the hearing shall be provided to the parties pursuant to Government Code §11509.

Page 484 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 39 -

6. Discovery: The employee shall be entitled to all discovery rights set forth in California Government Code § 11507.6.

7. Burden/Proof: The burden of proof and production of evidence shall be borne by the City. The standard of proof shall be by a preponderance of the evidence.

8. Written Decision: The proposed decision of the administrative law judge shall be in writing. Copies of the proposed decision shall be delivered to the parties personally or sent to them by registered mail and accompanied by a proof of service.

9. Post Decision Action: Following receipt of the proposed decision, the City Council, or any designee (e.g., the City Manager) to the extent authorized by law, may take any of the actions set forth in Government Code Section 11571(c)(2) A through B.

ARTICLE 14 - MANAGEMENT RIGHTS
Except as otherwise specifically provided in this MOU, the City has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following:

A. To determine the merits, necessity, nature or extent of services to be performed, as well as the right to determine and implement its public function and responsibility and the mission of its constituent departments, commissions and boards; and to determine budgets and appropriations of funds and to set municipal fees and charges.

B. To manage all facilities and operations of the City, including the methods, means, and personnel by which the City's operations are to be conducted.

C. To schedule working hours, allot, and assign work.

D. To establish, modify, or change work schedules or standards.

E. To direct the working forces, including the right to hire, promote, demote, or transfer any employee.

F. To determine the location of all plants and facilities.

G. To determine the layout and the machinery, equipment, or materials to be used.

H. To determine processes, techniques, methods and means of all operations, including changes or adjustments of any machinery or equipment.

I. To determine the size and composition of the working force.

J. To determine the policy and procedure affecting the selection or training of new employees.

Page 485 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 40 -
K. To establish, assess and implement employee performance standards, including, but not limited to, quality and quantity standards; the assessment of employee performances; and the procedures for said assessment.

L. To control and determine the use and location of City's property, material, machinery and equipment.

M. To schedule the operation of and to determine the number and duration of shifts.

N. To determine measures to promote safety and to protect health and property.

O. To transfer work from one job to another or from one plant or unit to another.

P. To introduce new, improved or different methods of operations or to change existing methods.

Q. To relieve employees from duty for lack of work or for other reasons deemed legitimate by management.

R. To reprimand, suspend, discharge or otherwise discipline employees for cause. The judgment of management shall govern except for an abuse of discretion.

S. To establish and determine job classifications.

T. To contract or subcontract construction, services, maintenance, distribution or any other work with outside public or private entities.

U. To take such other and further action as may be necessary to organize and operate the City in the most efficient and economical manner for the best interest of the public it serves.

ARTICLE 15 - NON-DISCRIMINATION
Neither the City nor the Individually Represented Battalion Chief or Division Chief shall discriminate or harass against any employee actual or perceived based on ancestry, age, color, disability, genetic information, gender expression, gender identity, marital status, medical condition, military or veteran status, national origin, race, religion, reproductive health decision-making, sex/gender, sexual orientation, or for any other reason provided for by applicable law.

The City and the Individually Represented Battalion Chief or Division Chief shall reopen any provision of this agreement for the purpose of complying with any final order of any federal or state agency or court of competent jurisdiction requiring a modification or change in any provision of this agreement in compliance with state or federal antidiscrimination laws.

Page 486 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 41 -
ARTICLE 16 - GENERAL PROVISIONS
Maintenance of Benefits. It is understood that existing ordinances, resolutions and policies with the City govern matters pertaining to employer-employee relations, including but not limited to salaries, benefits, hours and other terms and conditions of employment, and the same are not affected by this agreement except as specified herein.

Severability. In the event that any provision of this Memorandum of Understanding is declared by a court of competent jurisdiction to be illegal or unenforceable, or is rendered void by virtue of statutory or legislative enactment, that provision of the Memorandum of Understanding shall be null and void, but such nullification shall not affect any other provision of this Memorandum of Understanding, which other provisions shall remain in full force and effect.

Integration, Modification and Ratification. This memorandum sets forth the entire agreement of the parties with respect to improvements or changes in the wages, hours, benefits and other terms and conditions of employment for the Individually Represented Battalion Chief and Division Chief for the term of this agreement. This memorandum may be modified or amended only by written agreement between the parties hereto. This memorandum shall be of no force and effect unless or until duly adopted, ratified and approved by the City Council of the City of Fountain Valley, or in the alternative, the substantive provisions hereof are adopted by resolution of the City Council.

Term. The term of this Memorandum of Understanding shall be beginning July 1, 2024 and ending June 30, 2027.

IN WITNESS WHEREOF, the parties hereto executed this Memorandum of Understanding on______________.

CITY OF FOUNTAIN VALLEY
By______________________________
Maggie Le
City Manager
APPROVED TO FORM:

By______________________________
Colin Burns, Harper & Burns LLP

BATTALION CHIEFS
By
David Dukellis
By
Matthew Barr
By_______________________________
Timothy Saiki
Attorney for the City

Page 487 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 42 -
EXHIBIT 1

PHYSICAL FITNESS/WELLNESS PROGRAM
Performance Testing. For the purposes of physical fitness testing, three (3) areas of physical ability will be evaluated:

A. Cardiovascular fitness
B. Upper body strength
C. Flexibility
The tests used in this program to evaluate fitness in these areas shall be:

A. Cardiovascular Fitness

1. Life cycle test
B. Upper Body Strength

1. Push-ups

2. Crunches

3. Pull-ups
C. Flexibility

1. Forward Stretch
Cardiovascular Fitness. Cardiovascular endurance is the measurement of the rate at which a person can utilize metabolic reactions requiring oxygen to create energy.

Problems such as high blood pressure, heart and pulmonary congestion, obesity, etc., are the major contributors to premature retirement of Battalion Chiefs.

Testing for cardiovascular fitness is completed by the use of a lifecycle. The Battalion Chief shall be required to ride the lifecycle for twelve (12) minutes on the basic "Hill Profile Program" at the level specified below for their age group.

TIER UNDER 30 30-39 40-49 50+
1 Level 6 Level 6 Level 4 Level 3
2 Level 8 Level 8 Level 6 Level 5
Upper Body Strength. Upper body strength contributes to the Battalion Chief's ability to meet physical demands made on him/her in their work environment, while avoiding the possibility of injury. This test will be administered through the use of push-ups, crunches, and pull-ups.

Page 488 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 43 -
A. Push-ups.

The participant shall maintain their body in a prone position, supported by straight arms with hands resting on the ground and with toes resting on the ground. The administrator shall place their fist on the ground below the participant's chest. The participant must keep their back straight at all times, and from the up position, lower him/herself to the floor until their chest touches the administrator's hand. Once the participant touches the administrator's hand with their chest, the participant shall then push him/herself to the up position, attain, and repeat the process for the required number of times. The participant may rest in the up position.

Battalion Chiefs shall be required to complete the number of push-ups specified below for their age group.

TIER UNDER 30 30-39 40-49 50+
1 24 20 16 12
2 30 25 20 15
B. Crunches.

The participant shall begin by lying down on their back, knees bent and heels flat on the floor. Curl the shoulders toward the pelvis with hands placed behind, beside the neck or crossed over the chest and move forward. This is a continuous exercise with no resting. The total minimum number of correct crunches is specified below according to age:

TIER UNDER 30 30-39 40-49 50+
1 50 40 30 20
2 62 50 37 25
C. Pull-ups,
The participant shall hold the bar with the palms away from the body. Arms shall be extended straight up in a locked position with the feet off the ground. The participant must pull their body up to a position where their chin is above the bar for one repetition. The total minimum number of correct pull-ups is specified below according to age:

TIER UNDER 30 30-39 40-49 50+
1 7 6 5 3
2 9 8 7 4
A pull-down exercise on the Universal Weight Machine with a weight equaling onehalf of the participant's body weight may be substituted by those having difficulty with pull-ups. The participant in the pull-down exercise shall be required to assume a seated or kneeling position and shall pull the bar of the Universal Weight Machine down to either the back of the base of the neck or down to the top of the chest. The

Page 489 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 44 -
total minimum number of correct pull-downs that must be completed according to age shall be the same as the schedule for the minimum number of pull-ups as cited above.

Flexibility. There is a high incidence of lower back disabilities among middle-aged people.

In many cases, this is related to reduced flexibility of the hip and back along with reduced elasticity of the hamstrings. It is possible that some cases can be improved by a welldesigned program of stretching exercises to increase flexibility.

In addition to a short warm-up prior to the test, it is recommended that the participant refrain from fast or jerky movements which may increase the possibility of an injury.

The participant shall sit on the ground with their legs out straight in front of him/her. Shoes should be removed and the heels of the feet are placed flat against a 4" x 4" board. The participant shall slowly reach forward with both hands as far as possible towards their toes with their hands, holding this position momentarily. The participant shall keep the hands parallel and not stretch or lead with one hand. The distance between the fingertips and the toes shall be recorded as plus or minus inches. Plus inches shall be below the toes and negative is above the toes. The Administrator shall ensure that the knees of the participant are kept straight and held in place throughout the test for the participant. The minimum standards for the flexibility test are as follows:

UNDER 30 30-39 40-49 50+
-4” -5” -6” -7”

Page 490 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 45 -
EXHIBIT 2

CITY OF FOUNTAIN VALLEY

ESTABLISHED SALARY RANGES FOR THE FOUNTAIN VALLEY

INDIVIDUALLY REPRESENTED BATTALION CHIEFS
Effective July 1, 2024, Pay Period Ending July 5, 2024
Effective July 1, 2025, Pay Period Ending July 4, 2025
Effective July 1, 2026, Pay Period Ending July 3, 2026
Type Step 1 Step 2 Step 3 Step 4 Step 5 Annual $ 158,775.39 $ 166,714.15 $ 175,049.86 $ 183,802.35 $ 192,992.47 Monthly $ 13,231.28 $ 13,892.85 $ 14,587.49 $ 15,316.86 $ 16,082.71 Bi-weekly $ 6,106.75 $ 6,412.08 $ 6,732.69 $ 7,069.32 $ 7,422.79 Hourly $ 54.5246 $ 57.2507 $ 60.1133 $ 63.1189 $ 66.2749 Annual $ 158,775.39 $ 166,714.15 $ 175,049.86 $ 183,802.35 $ 192,992.47 Monthly $ 13,231.28 $ 13,892.85 $ 14,587.49 $ 15,316.86 $ 16,082.71 Bi-weekly $ 6,106.75 $ 6,412.08 $ 6,732.69 $ 7,069.32 $ 7,422.79 Hourly $ 76.3343 $ 80.1510 $ 84.1586 $ 88.3665 $ 92.7848 Annual $ 173,065.17 $ 181,718.43 $ 190,804.35 $ 200,344.57 $ 210,361.80 Monthly $ 14,422.10 $ 15,143.20 $ 15,900.36 $ 16,695.38 $ 17,530.15 Bi-weekly $ 6,656.35 $ 6,989.17 $ 7,338.63 $ 7,705.56 $ 8,090.84 Hourly $ 59.4317 $ 62.4033 $ 65.5235 $ 68.7996 $ 72.2396 BC 7/1/2024 P56 Division Chief
BC 7/1/2024 P23 Battalion Chief
Bargaining Effective Class Classification
BC 7/1/2024 P23 Battalion Chief - 40 Hour
Type Step 1 Step 2 Step 3 Step 4 Step 5 Annual $ 165,126.41 $ 173,382.72 $ 182,051.85 $ 191,154.44 $ 200,712.17 Monthly $ 13,760.53 $ 14,448.56 $ 15,170.99 $ 15,929.54 $ 16,726.01 Bi-weekly $ 6,351.02 $ 6,668.57 $ 7,001.99 $ 7,352.09 $ 7,719.70 Hourly $ 56.7055 $ 59.5408 $ 62.5178 $ 65.6437 $ 68.9259 Annual $ 165,126.41 $ 173,382.72 $ 182,051.85 $ 191,154.44 $ 200,712.17 Monthly $ 13,760.53 $ 14,448.56 $ 15,170.99 $ 15,929.54 $ 16,726.01 Bi-weekly $ 6,351.02 $ 6,668.57 $ 7,001.99 $ 7,352.09 $ 7,719.70 Hourly $ 79.3877 $ 83.3571 $ 87.5249 $ 91.9012 $ 96.4962 Annual $ 179,987.78 $ 188,987.17 $ 198,436.52 $ 208,358.35 $ 218,776.27 Monthly $ 14,998.98 $ 15,748.93 $ 16,536.38 $ 17,363.20 $ 18,231.36 Bi-weekly $ 6,922.61 $ 7,268.74 $ 7,632.17 $ 8,013.78 $ 8,414.47 Hourly $ 61.8090 $ 64.8995 $ 68.1444 $ 71.5516 $ 75.1292 BC 7/1/2025 P56 Division Chief
BC 7/1/2025 P23 Battalion Chief
Bargaining Effective Class Classification
BC 7/1/2025 P23 Battalion Chief - 40 Hour
Type Step 1 Step 2 Step 3 Step 4 Step 5 Annual $ 171,731.47 $ 180,318.03 $ 189,333.92 $ 198,800.62 $ 208,740.66 Monthly $ 14,310.95 $ 15,026.50 $ 15,777.83 $ 16,566.72 $ 17,395.05 Bi-weekly $ 6,605.06 $ 6,935.31 $ 7,282.07 $ 7,646.18 $ 8,028.49 Hourly $ 58.9738 $ 61.9224 $ 65.0185 $ 68.2695 $ 71.6829 Annual $ 171,731.47 $ 180,318.03 $ 189,333.92 $ 198,800.62 $ 208,740.66 Monthly $ 14,310.95 $ 15,026.50 $ 15,777.83 $ 16,566.72 $ 17,395.05 Bi-weekly $ 6,605.06 $ 6,935.31 $ 7,282.07 $ 7,646.18 $ 8,028.49 Hourly $ 82.5632 $ 86.6914 $ 91.0259 $ 95.5772 $ 100.3561 Annual $ 187,187.29 $ 196,546.66 $ 206,373.98 $ 216,692.68 $ 227,527.32 Monthly $ 15,598.94 $ 16,378.89 $ 17,197.83 $ 18,057.72 $ 18,960.61 Bi-weekly $ 7,199.51 $ 7,559.49 $ 7,937.46 $ 8,334.33 $ 8,751.05 Hourly $ 64.2813 $ 67.4954 $ 70.8702 $ 74.4137 $ 78.1344 BC 7/1/2026 P56 Division Chief
BC 7/1/2026 P23 Battalion Chief
Bargaining Effective Class Classification
BC 7/1/2026 P23 Battalion Chief - 40 Hour

Page 491 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 46 -
EXHIBIT 3

UNIFORM SPECIFICATIONS
The uniforms to be work by Individually Represented Battalion and Division Chiefs shall meet the following specifications:

Chief Officer – Formal Dress Uniform (Class A)
A. Coat

1. Flying Cross, #34892, navy, badge tab, gold fire department buttons.

B. Shirt

1. Flying Cross, #35W54, white, long sleeve.

C. Tie

1. Black.

D. Pant

1. Flying Cross, #34291, navy.

E. Belt

1. Black leather, basket weave, 1 ½ inch in width, department issued buckle.

F. Shoes

1. High gloss Oxford shoes.

G. Service

1. Gold pin-on Maltese crosses (left sleeve only).

H. Collar

1. Collar insignias are 1 inch in size for jackets and ¾ inch for shirts.

I. Hat

1. Standard fire service dress hat.

2. Gold Fire Department buttons.

3. Gold hatband.

4. Department issued hat insignia.

Chief Officer – Dress Uniform (Class B)
A. Shirt

1. Flying Cross, #47W6610 L/S, add gold fire department buttons on shoulder straps/pocket folds. Maltese crosses embroidered on left sleeve. Fountain Valley Fire Department patch on left shoulder only

2. Badge.

3. Name tag, gold pin with black.

Page 492 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 47 -

4. Department issued collar ornaments depicting rank.

B. Tie

1. Black regulation or breakaway with Velcro back, #45115.

C. Pants

1. Black Workrite Nomex (WR-400NX-75 or WR-402NX75).

D. Belt

1. Black leather, basket weave, #1521U, brass clasp.

2. 1½ inch in width.

3. Gold department issue buckle.

E. Shoe

1. Black, low quarter, plain toe.

Chief Officer – Daily Uniform
A. Shirt

1. Black Workrite Nomex long sleeve, (WR-735NX45), or short sleeve (WR730NX45), embroidered first initial and last name in gold.

2. Gold department issued badge.

3. Gold department collar ornaments depicting rank.

4. Patch on left sleeve.

5. T-shirt, crew neck (black cotton) plain.

B. Pants

1. Black Workrite Nomex (WR-400NX-75 or WR-402NX75).

C. Belt

1. Black leather, basket weave, 1½ inch in width, brass clasp.

2. Gold department issue buckle.

D. Shoe/Boot

1. 5.11 Tactical – Company 3.0 CST Boot.

2. Blauer – Breach Composite Waterproof 6” Boot.

3. Haix – Airpower XR1 Pro.

4. Redback – Easy Escape or Rescue.

All boots to be OSHA approved and NFPA compliant, steel toe, non-slip heels and soles.

E. Jacket

1. 5.11 Chameleon Softshell Jacket 2.0.

2. Shoulder patch on both shoulders, ½ inch below seam.

3. Department logo 1¾ inches above left pocket.

4. First initial and last name embroidered 2½ inches above right pocket. Embroidered letters shall be ½ inch full block, gold thread.

5. Rank embroidered above name. Embroidered rank shall be ½ inch full block, gold thread.

Page 493 ends

Individually Represented Battalion Chiefs July 1, 2024 – June 30, 2027

- 48 -
F. Baseball Hat

1. Black, ball cap with approved department logo.

Chief Officer – Physical Fitness Uniform
A. T-Shirt

1. Black or white t-shirt, cotton, plain or with approved logo.

2. Black or white tank top, cotton, plain or with approved logo.

B. Sweatshirt

1. Black, plain or with approved logo.

C. Sweatpants

1. Black, plain or with approved logo.

D. Shoes

1. Any good quality athletic shoe suited to each individual's needs and requirements for the type of activity (high top shoes for basketball).

E. Socks

1. Black or white, stripes acceptable.

F. Shorts

1. Black, plain or with approved logo.

Page 494 ends

- 1 -
ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY APPROVING THE MEMORANDUM

OF UNDERSTANDING FOR THE FOUNTAIN VALLEY

INDIVIDUALLY REPRESENTED BATTALION AND

DIVISION CHIEFS RELATING TO WAGES, HOURS,
TERMS AND CONDITIONS OF EMPLOYMENT.

WHEREAS, the City Council of the City of Fountain Valley has established a basic compensation plan for City employees in all classifications of employment; and WHEREAS, representatives of the City Manager of the City of Fountain Valley and representatives of the bargaining group noted below periodically negotiate in good faith to reach agreement on benefits and compensation pursuant to Government Code Section 3500 et seq; and
Bargaining Group Name
Individually Represented Battalion and Division Chiefs
WHEREAS, the memorandum of understanding relating to wages, hours, and terms and conditions of employment are amended and include adjustments to the salary ranges, benefits, and terms and conditions of employment; and NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby resolve as follows:

SECTION 1. The Memoranda of Understandings establishing wages, hours, and terms and conditions of employment for the Fountain Valley Individually Represented Battalion and Division Chiefs, attached with this resolution for the term beginning July 1, 2024 through June 30, 2027, is hereby approved and adopted:
.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting on this 4th day of June 2024.

Page 495 ends

- 2 -
Glenn Grandis
Mayor

APPROVED AS TO FORM

Colin Burns
Attorneys for the City
Exhibit 1: Memorandum of Understanding 2024-27 Individually Represented Battalion and Division Chiefs

Page 496 ends

Page 1 of 43 ends

ATTACHMENT 2
RESOLUTION NO.

WHEREAS, the City of Fountain Valley has confidential, non-represented Professional/Technical employees (hereinafter referred to as non-represented employees); and WHEREAS, the City would like to establish a formal document to detail the nonrepresented employees' wages, hours, terms and conditions of employment; and WHEREAS, the City desires to provide an adjustments to the schedule of base salary rates for non-represented employee covered by this resolution as outlined below.

NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby resolve to approve the wages, hours, terms and conditions of employment for these non-represented employees as outlined in this Resolution, including the Salary Tables.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting on this 4
th day of June, 2024.

Adjustment Effective Date Adjustment Amount
Pay Period Ending 7/5/24 4%
Pay Period Ending 7/4/25 4%
Pay Period Ending 7/3/26 4%

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY RELATING TO THE WAGES, HOURS,

TERMS AND CONDITIONS OF EMPLOYMENT OF

CONFIDENTIAL NON- REPRESENTED EMPLOYEES OF THE
CITY.

Page 497 ends

Page 2 of 43 ends

APPROVED AS TO FORM:

HARPER & BURNS LLP

Colin Burns, Attorney for the City
ATTEST:

RICK MILLER
Clerk of the Council
CITY OF FOUNTAIN VALLEY:

GLENN GRANDIS
Mayor
___________________________________

MAGGIE LE
City Manager
___________________________________

ROBIN HARNISH
IRP&T

Page 498 ends

Page 3 of 43 ends

SECTION 1. The classification, compensation, and terms of employment for Administrative Officers, Professional and Technical employees, General Unit, Field Services Unit, sworn non-management Fire personnel, sworn management Fire personnel, sworn Police personnel, and sworn management Police personnel are set forth by separate resolutions of the City council and the provisions herein set forth shall not apply to those employees.

SECTION 2 – DESIGNATED CLASSIFICATIONS. The following is a listing of classifications designated as confidential, non-represented Professional/Technical employees (hereinafter referred to as “non-represented employees”):

Classification
Accounting Manager
Finance Manager
City Clerk Administrator
Human Resources Analyst
Human Resources Specialist
Human Resources Manager
Information Technology Analyst
Management Analyst (assigned to the City Manager’s office only) Management Specialist (assigned to the City Manager’s office only) Payroll Administrator
Principal Human Resources Analyst
Principal Management Analyst
Purchasing Administrator
Senior Budget Analyst
Senior Human Resources Analyst
Senior Information Technology Analyst
Senior Management Analyst

Page 499 ends

Page 4 of 43 ends

SECTION 3 – SPECIAL PROVISIONS FOR THE CITY CLERK ADMINISTRATOR.

The City Clerk Administrator is an at-will employee of the City of Fountain Valley with no vested rights to the position and serves at the pleasure of the City Manager and may be terminated without cause in accordance with Title 2 of the City’s Municipal Code. In accordance with Section

2.18.030 of the City’s Municipal Code, the City Clerk Administrator is not entitled to a hearing, statement of charges or due process if terminated.

SECTION 4 – WORK SCHEDULE. The City and the non-represented employees recognize a 9/80 synchronized flexible work schedule for City Hall employees. The nonrepresented employees at City Hall will work:

Work Days Work Hours
Week 1 of the payroll period: Monday through Thursday 7 a.m. to 5 p.m.

Week 1 of the payroll period: Friday 8 hour flex day off Week 2 of the payroll period: Monday through Thursday 7 a.m. to 5 p.m.

Week 2 of the payroll period: Friday 7 a.m. to 4 p.m.

WORK PERIOD. The seven (7) day work period will begin four hours into the eight (8) hour workday/alternating day off.
4/10 SCHEDULE PILOT PROGRAM. The parties agree that, beginning as soon as practicable after approval of this Resolution, a Citywide 4/10 work schedule will be in effect for a trial period of exactly six (6) months at which time it shall sunset unless the parties mutually agree to continue it.

FLEXIBLE WORK SCHEDULE AS A MANAGEMENT RIGHT. The City and nonrepresented employees recognize that the institution or termination of the flexible work schedule is a management right and that such schedule may be terminated or modified in the City’s sole and absolute discretion.

Page 500 ends

Page 5 of 43 ends

SECTION 5 – PROBATIONARY PERIOD. The probationary period for non-represented employees excluding the City Clerk Administrator is:

NEW HIRES. Non-represented employees shall serve a twelve (12) month probationary period.

Upon successful completion of the probationary period, the non-represented employee may be recommended for permanent status subject to Department Director and City Manager approval.

PROMOTIONS. A non-represented employee promoted to another non-represented classification shall serve a twelve (12) month probationary period. Upon successful completion of the probationary period, the non-represented employee may be recommended for permanent status subject to Department Director and City Manager approval.

CITY CLERK ADMINISTRATOR. The City Clerk Administrator is an at-will employee of the City of Fountain Valley with no vested rights to the position and serves at the pleasure of the City Manager; thus is not subject to a probationary period.

SECTION 6 – COMPENSATION PLAN. The schedule of base salary rates for nonrepresented employees shall be attached labeled as Exhibit 2.

MATCHING DEFERRED COMPENSATION CONTRIBUTION.

The City will match up to a $75 per month matching contribution into each employee's deferred compensation account for each non-represented employee who contributes into the City's deferred compensation plan. For example, an employee contribution of $25 per month will receive a matching City contribution of $25 per month. An employee contribution of $100 per month will receive a city contribution of $75 per month.

PAY FOR PERFORMANCE PLAN.

A. Five (5) step salary ranges for each position shall be established at 5% between each step. Placement within the range would be based on current salary plus existing adjustments.

Page 501 ends

Page 6 of 43 ends

D. Employees shall be eligible for subsequent merit (step) increases annually on the first day of the pay period their anniversary date falls within until they reach the fifth step.

E. At least one month prior to their salary anniversary date, the employee shall submit a memo to their Supervisor and/or Department Director detailing their accomplishments during the rating period. The Supervisor and/or Department Director shall then complete a Management Performance Evaluation and provide it to the City Manager for review and approval or adjustment.

F. Merit (step) increases will be based on the employee's Management Performance Evaluation. The employee must receive an overall performance evaluation rating of "Meets Expectations" or "Exceeds Expectations" to be eligible for a merit (step) increase to the next step within the salary range. An overall performance evaluation rating of "Below Improvement" will not result in a merit (step) increase.

SALARY ON PROMOTION. When a non-represented employee is promoted from employment in one classification to employment in a classification allocated to a higher salary range, the nonrepresented employee shall be moved to a step within the higher salary range which will provide not less than a 5% increase in monthly/annual compensation, unless the top step of the new range is less than a 5% increase, then top step will be provided.

Page 502 ends

Page 7 of 43 ends

COMPENSATION FOR ACTING/PROVISIONAL APPOINTMENTS. Subject to the following terms and conditions, a non-represented employee who is required on the basis of a provisional appointment to serve in a classification with a higher salary range than that of the classification in which they is normally assigned, shall be moved to a step within the higher salary range which will provide not less than a 5% increase in monthly/annual compensation provided, however, that:

A. The written approval of the City Manager shall be required.

B. The non-represented employee shall perform all the duties and assume all the responsibilities of the higher classification for a period not less than thirty (30) calendar days to be eligible for the higher compensation.

C. Compensation for acting/provisional appointments shall be limited to the temporary filling of a vacant, regular position due to termination, promotion, or extended sick leave of the incumbent, or the temporary filling of newly-budgeted positions, not to exceed six (6) months.

SALARY ON DEMOTION. A regular, non-probationary, non-represented employee who is demoted, whether voluntarily or involuntarily, shall be reassigned to the salary range to which their new classification is assigned. If the maximum monthly salary of the new classification is less than the non-represented employee's monthly compensation, their salary shall be reduced to the nearest lower step in the new classification to their previous salary. Such non-represented employee shall not be required to serve a probation period in the lower position. The effective date of the demotion shall become the new salary anniversary date and they may be eligible for annual merit increases thereafter.

This provision expressly excludes the City Clerk Administrator who is an at-will employee with no vested rights in accordance with Section 3 of this Resolution.

Page 503 ends

Page 8 of 43 ends

FAIR LABOR STANDARDS ACT EXEMPTION. Pursuant to Section 13(a)(1) of the Fair Labor Standards Act, the City hereby determines that non-represented employees are exempt from both the minimum wage and overtime provisions of the Fair Labor Standards Act.

SECTION 7 - RETIREMENT. Non-represented employees shall be enrolled as members in the California Public Employees' Retirement System (CalPERS) and are subject to all applicable provisions of the City's contract with CalPERS for miscellaneous employees.

EMPLOYEES HIRED AUGUST 15, 2010 AND EARLIER. Non-represented employees hired as full-time employees on or prior to August 15, 2010 will be covered under the 2.5% at 55 formula with the benefits specified below.

Provision Government Code Section

2.5% at 55 formula - Effective October 8, 2005 21354.4
One Year Final Compensation (Single Highest
Year)
20042
Service Credit for Unused Sick Leave 20965
2% Cost-of-Living 21329
Post Retirement Survivor Allowance 21624, 21626, and 21635 Fourth Level of 1959 Survivor Benefit 21574
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps:

Page 504 ends

Page 9 of 43 ends

employee's desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution may be deducted on a pre-tax basis because the City has filed the CalPERS IRS Code Section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the non-represented employee. The City shall not be responsible for any adverse tax treatment for the employees. The City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

CITY CONTRIBUTION. The City agrees to pay the employer contribution to CalPERS, less the agreed upon cost sharing contribution of 1.5%.

EMPLOYEES HIRED BEGINNING AUGUST 16, 2010 THROUGH DECEMBER 31, 2012: Nonrepresented employees whose hire date as a full-time employee is August 16, 2010 through December 31, 2012 will be covered under the 2% at 60 formula with the benefits specified below.

Provision Government Code Section
2% at 60 Formula 21353
Three Highest Years Average Compensation 20037
Pre-Retirement Optional Settlement 2 Death
Benefit
21548
Service Credit for Unused Sick Leave 20965
2% Cost-of-Living 21329
Fourth Level of 1959 Survivor Benefit 21574
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps:

VISTA Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a 21026

Page 505 ends

Page 10 of 43 ends

Non-Profit Corporation
Military Service Credit for Retired Persons 21027
Local System Service Credit included in Basic
Death Benefit
21536
Cancellation of Payments for Service Credit
Purchase upon Industrial Disability Retirement
21037
7% EMPLOYEE CONTRIBUTION. Non-represented employees agree to share the cost of their retirement benefit on a pre-tax basis by paying the full 7% employee contribution. It is the intent of the parties to accommodate employees' desire that said sums be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution may be deducted on a pre-tax because the City has filed the CalPERS IRS Code Section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. The City shall not be responsible for any adverse tax treatment for the employees. The City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

CITY CONTRIBUTION. The City agrees to pay the employer contribution to CalPERS.

NEW MEMBERS AND NEW EMPLOYEES UNDER PEPRA:

NEW MEMBERS DEFINED BY CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT OF 2013 (HEREINAFTER REFERRED TO AS PEPRA). New Members are defined by PEPRA as an employee who becomes a member of a public retirement system for the first time on or after January 1, 2013 and:

A. Was not a member of a public retirement system before January 1, 2013; or B. Was a member of a public retirement system before January 1, 2013 that is not subject to reciprocity with CalPERS; or

Page 506 ends

Page 11 of 43 ends

C. Alternatively, anyone who was an active member of a retirement system, has a break in service of six (6) months or more, and returns to active membership in the same system with a new employer.

NEW EMPLOYEES DEFINED BY PEPRA: New Employees are defined by PEPRA as an individual hired on or after January 1, 2013 and:

A. Never worked in the public sector before January 1, 2013; or B. Worked in the public sector before January 1, 2013, but worked for an employer with a retirement plan that did not have reciprocity with CalPERS.

New Members and New Employees will be covered under the 2% at 62 formula with the benefits specified below.

Provision Government Code Section
$500 Retired Death Benefit Section 21620
1959 Survivor Benefit Level 4 Section 21574
2% @ 62 Formula for Miscellaneous/Industrial Members Section 7522.20 2% Annual Cost-of-Living Allowance Increase Section 21329 Additional Service Credit 2 Years - Local Member Section 20903 Different Level of Benefits Section 20475
Final Compensation 3 Years Section 20037
Military Service Credit as Public Service Section 21024 Military Service Credit for Retired Persons Section 21027 Post-Retirement Survivor Allowance to Continue After
Remarriage Section 21635
Pre-Retirement Death Benefits to Continue After Remarriage of Survivor Section 21551
Pre-Retirement Option 2W Death Benefit Section 21548
Prior Service Section 20055
Public Service Credit for Peace Corps, AmeriCorps VISTA, or AmeriCorps Service Section 21023.5
Public Service Credit for Periods of Layoff Section 21022 Unused Sick Leave Credit - Local Member Section 20965

Page 507 ends

Page 12 of 43 ends

EMPLOYEE CONTRIBUTION. PEPRA (Government Code Section 7522.30) states "Equal sharing of normal costs between public employers and public employees shall be the standard." The standard shall be that employees pay at least 50% of normal costs and that employer's not pay any of the required employee contribution.

The "normal cost rate" shall mean the annual actuarially determined normal cost for the employer's defined benefit plan expressed as a percentage of payroll.

New Members and New Employees shall pay 50% of the normal cost adjusted annually in accordance with the CalPERS actuarial valuation for the City of Fountain Valley 2% at 62 plan.

Any change to the New Member and New Employee contribution rate will become effective the first payroll period closest to July 1 of the appropriate year.

Upon receipt of the annual actuarial valuation from CalPERS for the 2% at 62 plan, the Personnel Department will forward a copy to the Association specifying the New Member and New Employee contribution rate for the upcoming period. This process shall serve as the meet and confer process for any increase in the employee contribution rate. The Association may request to meet with the City if the New Member and New Employee contribution rate increases.

CITY CONTRIBUTION. The City agrees to pay the employer contribution to CalPERS.

CLASSIC/LEGACY EMPLOYEES UNDER THE CALIFORNIA EMPLOYEES' PENSION REFORM ACT OF 2013: An individual hired on or after January 1, 2013 who was employed by any public employer before January 1, 2013 and who does not meet the definition of "New Member" or "New Employee" under the PEPRA will be designated as a Classic/Legacy Employee. Classic/Legacy Employees are defined as those individuals who are:

Page 508 ends

Page 13 of 43 ends

B. Current member of a public retirement system or plan with reciprocity with CalPERS.

Classic/Legacy members will be covered under the 2% at 60 formula with the benefits specified below.

Provision Government Code Section
2% at 60 Formula 21353
Three Highest Years Average Compensation 20037
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Service Credit for Unused Sick Leave 20965
2% Cost-of-Living 21329
Fourth Level of 1959 Survivor Benefit 21574
Public Service Credit for Periods of Layoff 21022
Public Service for Peace Corps or America Corps:

VISTA Service
21023.5
Military Service Credit as Public Service 21024
Public Service Credit for Service Rendered to a Non-Profit Corporation
21026
Military Service Credit for Retired Persons 21027
Local System Service Credit included in Basic Death Benefit 21536 Cancellation of Payments for Service Credit Purchase upon Industrial Disability Retirement
21037
7% EMPLOYEE CONTRIBUTION. Employees agree to share the cost of retirement contribution on a pre-tax basis by paying the full 7% employee contribution. It is the intent of the parties to accommodate employees' desire that said sums be deducted on a pre- tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-taxable because the City has filed the CalPERS IRS Code Section 414(h)(2) resolution. However, any income tax obligations or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. The City shall not be responsible for any adverse tax treatment for the employees. The City has made no representation regarding such tax treatment and employees shall seek such advice from their personal tax advisors regarding such matters.

CITY CONTRIBUTION. The City agrees to pay the employer contribution to CalPERS.

Page 509 ends

Page 14 of 43 ends

SECTION 8 - HEALTH AND OTHER INSURANCE

GROUP MEDICAL AND DENTAL INSURANCE FOR EMPLOYEES HIRED AUGUST 15, 2010 AND EARLIER. The City contracts with the California Public Employees' Retirement System's Public Employees' Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees. The payment of premiums towards group medical/dental/life insurance will be through the administration of a cafeteria plan.

EMPLOYEES DEFINED.

A. Tier 1 employees are defined as those individuals employed in a full-time position with the City of Fountain Valley beginning August 15, 2009 and earlier.

B. Tier 2 employees are defined as those individuals employed in a full-time position with the City of Fountain Valley beginning August 16, 2009 through August 15, 2010.

TIER 1 AND 2 EMPLOYEES CITY CONTRIBUTION. The City contribution for Tier 1 and 2 employees is as follows:

The amount identified as flex dollars is inclusive of the CalPERS statutory minimum required by PEMHCA under Government Code § 22892.

Flex Dollar Allowance
Flex Dollars Longevity
Health
Stipend
Total Flex
Allowance
Electing Employee Only coverage $525.00 $1,042.94 $1,567.94 Electing Employee +1 Dependent coverage $1,025.00 $542.94 $1,567.94 Electing Employee + Family coverage $1,300.00 $267.94 $1,567.94

Page 510 ends

Page 15 of 43 ends

Non-represented employees who elect not to be covered under the medical plan provided through the cafeteria plan shall receive the equivalent of the CalPERS statutory minimum as cash wages. However, the employee will be required to pay for dental and life insurance premiums, both of which are mandatorily deducted out of the waiver of premium contribution (CalPERS statutory minimum).

SEPARATION THEN RETURN TO CITY SERVICE. If an employee separates employment and later returns to employment with the City of Fountain Valley, the date the employee returned to employment will become the employee's new hire date and the employee will be considered a Tier 3 employee and only eligible for Tier 3 benefits.

GROUP MEDICAL AND DENTAL INSURANCE FOR EMPLOYEES HIRED AUGUST 16, 2010 AND LATER.

Tier 3 employees (new hires) are defined as those individuals employed in a full-time position with the City of Fountain Valley beginning August 16, 2010 and later.

Tier 3 City Contribution. Beginning the pay period to include July 1, 2024, the City contribution for Tier 3 employees is as follows:

Flex Dollar Allowance Flex Dollars
Electing Employee Only coverage $825.00
Electing Employee +1 Dependent coverage $1,325.00
Electing Employee + Family coverage $1,600.00
Tier 3 employees do not qualify for the longevity health stipend.

CAFETERIA PLAN. The provisions of the Cafeteria Plan are described below.

BENEFITS PROVIDED THROUGH THE CAFETERIA PLAN. Effective January 1, 2011, the insurance benefits provided for in this article will be provided through the provision of a cafeteria

Page 511 ends

Page 16 of 43 ends

plan adopted in accordance with the provisions of Internal Revenue Code §125: medical and dental.

Each month the City will contribute to the cafeteria plan flex dollars for Tier 1, Tier 2 and Tier 3 employees as specified. In addition, the City will contribute a longevity health stipend for Tier 1 and 2 employees as specified. The City's flex dollar contribution includes the CalPERS statutory minimum paid by the City.

Prior to January 1, 2011, dependent dental premiums were fully employee paid. However, due to the provisions of the cafeteria plan, dependent dental premiums are to be deducted from the flex dollars for employees. Upon retirement, retirees are not covered by a cafeteria plan; therefore, dependent dental premiums will be fully retiree paid if coverage is elected. Nothing in these provisions require City contributions towards dependent dental premiums.

THE PURCHASE OF OPTIONAL BENEFITS THROUGH THE CAFETERIA PLAN. The cafeteria plan offers non-represented employees the opportunity to purchase AFLAC and vision insurance. Eligible employees may select from any of the medical insurance plans offered by CalPERS. If CalPERS changes any of the medical insurance plans by either adding or deleting the plan options, employees will be limited to those plan options offered by CalPERS.

Non-represented employees may also elect any of the optional AFLAC insurance options the City offers to employees at the employee's sole cost.

Non-represented employees may designate flex dollars, available after deductions for premiums for elected benefit options, towards the employee's deferred compensation plan.

Dental and life insurance are not optional benefits and such premiums will be deducted from each employee's cafeteria plan flex dollars or waiver of premium contribution.

Page 512 ends

Page 17 of 43 ends

EMPLOYEE CONTRIBUTIONS FOR BENEFIT OPTIONS. If a non-represented employee chooses optional benefits whose aggregate cost exceeds the total flex dollar City contribution to the cafeteria plan, the City will automatically deduct the excess amount on a pre-tax basis, if applicable, from the employee's bi-weekly pay.

THE RECEIPT OF CASH THROUGH THE CAFETERIA PLAN. Non-represented employees will be eligible to receive cash (subject to taxation as wages) through the cafeteria plan if they either opt out of receiving medical insurance or if they choose optional benefits that do not cost as much as the flex dollars provided by the City towards the cafeteria plan. Any such employee shall be eligible to receive in cash the difference between the City's monthly cafeteria plan flex dollar contribution and the total of the premiums selected up to a maximum of $350 per month.

TERM LIFE INSURANCE. The amount of term life insurance for each non-represented employee shall be equivalent to the employee's annual salary, rounded upward to the nearest thousand dollar increment, with a maximum policy amount of $50,000 per employee.

LONG-TERM DISABILITY. The City shall maintain and pay full premiums for a long-term disability insurance policy for all non-represented employees. The purpose of long-term disability insurance is to ensure that non-represented employees will have a source of income if they are disabled from performing their regular duties for a period longer than sixty (60) calendar days.

Page 513 ends

Page 18 of 43 ends

ELIGIBILITY. A non-represented employee's eligibility for long-term disability benefits depends on whether the non-represented employee's disability is industrial or non-industrial in nature. If the disability is industrially related, the non-represented employee's eligibility for long-term disability benefits begins on the sixty-first (61st) calendar day of continuous absence from work.

If the employee's disability is not industrially related, the non-represented employee's eligibility begins either on the sixty-first (61st) calendar day of the non-represented employee's absence from work, or upon expiration of the non-represented employee's sick leave, whichever period is longer.

In addition, the eligible non-represented employee must meet the insurance carrier's definition of disability prior to eligibility to receive benefits.

BENEFITS. A non-represented employee who is eligible to receive long-term disability benefits will receive 66 2/3% of their basic monthly earnings or a maximum monthly benefit of $5,000 as of the date the non-represented employee's disability began, less any deductible benefits, as provided for in the long-term disability policy.

A non-represented employee who is receiving long-term disability benefits is considered to be in an off-payroll status and will not accrue benefits during the time that they is in such status. In addition, employees who are in an off-payroll status while receiving long- term disability benefits are responsible for maintaining group medical insurance coverage and for paying the premiums therefore.

The City reserves the right to self-insure any or all long-term disability benefits, provided that there shall be no change to existing eligibility requirements or coverage.

FLEXIBLE SPENDING ACCOUNTS. The City shall provide a voluntary Flexible Spending Plan (Section 125 Plan under the Internal Revenue Code) to non-represented employees. Enrollment in the plan allows employees to pay for out-of-pocket Health Care and Dependent Care costs with pre-tax dollars. Flexible Spending Account limits will be followed by the City as set each year by the Internal Revenue Service (IRS).

Page 514 ends

Page 19 of 43 ends

Reimbursement will be paid directly by a third party administrator.

Federal law prohibits any change in a Flexible Spending Account during the calendar year unless the employee or their dependent(s) have a qualifying "life event." A qualifying "life event" is marriage, divorce or legal separation, birth or adoption of a dependent, death of a dependent, or a change in the employee or employee's spouse's employment status. The change in the Flexible Spending Account must be due to and consistent with the "life event" which permits the change.

An annual open enrollment period will be provided for the upcoming year's program. Nonrepresented employees must affirmatively enroll in the Flexible Spending Account for each year.

There is no automatic renewal.

When estimating annual expenses, non-represented employees are cautioned to only consider those expenses they is reasonably certain they will incur. Any amount left in a non-represented employee's Flexible Spending Account at the end of the year is forfeited.

Deductions for Flexible Spending Accounts shall not reduce earnable compensation for purposes of calculating benefits or contributions for the California Public Employees' Retirement System.

The City maintains the right to select and change, if needed, the vendor to administer the Flexible Spending Account program.

VOLUNTARY VISION PROGRAM. Effective January 2, 2016, the City will offer a voluntary vision care plan as one of the health programs offered under the City's cafeteria plan.

Page 515 ends

Page 20 of 43 ends

The City reserves the right to change vision insurance providers if necessary and if so, will provide similar benefits with the new provider. Effective with the payroll period ending January 13, 2017, the City will pay the employee only premium for the voluntary vision program. If the employee chooses to add dependents to the plan, dependent premiums shall be paid by the employee.

SECTION 9 - MEDICAL AND DENTAL INSURANCE FOR RETIREES. The City shall provide group medical/dental insurance to non-represented employees who retire from the City meeting the criteria and subject to the conditions and limitations noted below. The City contracts with the California Public Employees' Retirement System's Public Employee's Medical and Hospital Care Act (PEMHCA) for medical insurance for City employees and retirees. Benefits are grouped in tiers based upon hire date and years of continuous City service.

RETIREE MEDICAL TIERS AND CONTRIBUTIONS.

A. Tier 1 Employee. The Tier 1 category is not applicable to non-represented employees based upon their hire date.

B. Tier 2 Employee. Tier 2 employees are defined as those individuals hired as an employee with the City of Fountain Valley August 16, 2009 through August 15, 2010.

C. Tier 3 Employees. Tier 3 employees are defined as those individuals hired as an employee with the City of Fountain Valley August 16, 2010 and later:

BENEFITS FOR TIER 2 AND 3:

TIER 2 (SERVICE AND DISABILITY RETIRED EMPLOYEES)
HIRE DATE:

August 15, 2010.

August 16, 2009 through YEARS OF SERVICE: Not applicable.

ELIGIBILITY CRITERIA:

A. Is at least 50 years of age;
B. Has been employed by the City for at least 5 years;
C. Is a vested member of CalPERS;

Page 516 ends

Page 21 of 43 ends

D. Has applied for and received a service retirement from CalPERS; E. Effective date of retirement occurred no earlier than October 1, 1980; F. Must retire directly from active duty and must maintain continuous coverage both prior to and subsequent to their retirement;
G. Any lapse in coverage will make the employee ineligible for participation in the dental plan.

DISABILITY RETIRED EMPLOYEE:

A. Has received a disability retirement from CalPERS.

B. Whose injury or illness constitutes a total disability, as defined by CalPERS.

NOT ELIGIBLE FOR LIFE OR VISION INSURANCE:

Retired employees shall not be eligible for life or vision insurance coverage.

RETIREE CONTRIBUTION:

MEDICAL: The employee enrolls at their own expense for medical insurance. Only while participating in the CalPERS medical plan will the City pay the minimum employer contribution specified in Section 22892 of the Public Employees' Medical and Hospital Care Act (PEMHCA) to CalPERS.

MEDICARE: The retiree is responsible for paying for all Medicare premiums.

DENTAL: The employee enrolls at their own expense for dental insurance. If dental coverage is elected, dental coverage will cease upon the retiree or qualified dependent reaching age 65, at which time, they may elect COBRA to continue coverage for 18 months or may elect to terminate dental coverage. The retiree will be required to pay the full premium plus the 2% administrative fee. Failure to pay premiums will result in loss of coverage. The employee is not eligible for any contribution from the City towards continued dental insurance upon retirement.

TIER 3 (SERVICE AND DISABILITY RETIRED EMPLOYEES)
HIRE DATE: August 16, 2010 and later. I YEARS OF SERVICE: Not applicable.

ELIGIBILITY CRITERIA:

A. Is at least 50 years of age;
B. Has been employed by the City for at least 5 years;
C. Is a vested member of CalPERS;
D. Has applied for and received a service retirement from CalPERS; E. Effective date of retirement occurred no earlier than October 1, 1980; F. Must retire directly from active duty and must maintain continuous coverage both prior to and subsequent to their retirement;
G. Any lapse in coverage will make the employee ineligible for participation in the dental plan.

DISABILITY RETIRED EMPLOYEE:

A. Has received a disability retirement from CalPERS.

B. Whose injury or illness constitutes a total disability, as defined by CalPERS.

Page 517 ends

Page 22 of 43 ends

NOT ELIGIBLE FOR LIFE OR VISION INSURANCE:

Retired employees shall not be eligible for life or vision insurance coverage.

RETIREE CONTRIBUTION:

MEDICARE: The retiree is responsible for paying for all Medicare premiums.

DENTAL. The employee enrolls at their own expense for dental insurance. Dental coverage will end at retirement. Dental coverage eligibility will be extended through COBRA continuation of coverage for a maximum of 18 months. Extension of coverage may apply in accordance with COBRA regulations; however, unless the retiree meets these COBRA provisions, the maximum coverage period for dental upon retirement is 18 months. To maintain coverage, the full premium plus a 2% administrative fee is payable by the retiree. Failure to pay premiums will result in loss of coverage. The employee is not eligible for any contribution from the City towards continued dental insurance upon retirement.

SEPARATION THEN RETURN TO CITY SERVICE. If a non-represented employee separates employment and later returns to employment with the City of Fountain Valley, the date the employee returned to employment will become the employee's new hire date. The employee will be considered a new hire and will only eligible for Tier 3 employee benefits.

SECTION 10 - HOLIDAYS. Non-represented employees shall be entitled to eleven (11) paid holidays per calendar year. The eleven (11) paid holidays to which employees are entitled are:

1. New Year's Day

2. President’s Day (Washington's Birthday)

3. Martin Luther King Jr’s Day

4. Memorial Day

5. Independence Day

6. Labor Day

7. Veterans' Day

8. Thanksgiving

9. Day after Thanksgiving

10. Christmas

11. "Floating Holiday"

Page 518 ends

Page 23 of 43 ends

Holidays will be paid at the full day work rate (i.e., if an employee is scheduled to work a 4/10 shift, the holiday will be paid out at 10 hours).

The exact date upon which each of the above holidays will be observed and during which City Hall will be closed shall be set by Administrative Regulation each year.

Those employees that are required or need to work on a City observed holiday will be allowed to take off a subsequent day within the same pay period.

FLOATING HOLIDAY. The "floating holiday" may be taken at any time during the year, subject to approval of the non-represented employee's Department Director. The "floating holiday" must be used during the calendar year, and may not be carried over from one year to the next.

HOLIDAY CLOSURE. City Hall and the City Yard will close during the week between Christmas and New Year's Day of each year. The City's observed holidays, which fall on a regularly scheduled Friday flex day (9/80 schedule), will be deferred and taken during the holiday closure.

The employee will use sufficient hours of applicable leave time to supplement each 8-hour holiday, the total of which will equal the regular work day. If there are not sufficient holidays to cover the entire period, the employee will be required to use accrued vacation or administrative leave to cover their time during the closure.

SECTION 11 - VACATION ACCRUAL. Non-represented employees who work a forty (40) hour week shall accrue vacation time at the following rates:

Years of Service Hours Per Year Hours Per Pay Period
Up to 1 year 80 3.08
2-4 120 4.62
5-11 152 5.85
12-14 176 6.77
15+ 200 7.69

Page 519 ends

Page 24 of 43 ends

The accrual rate changes when the employee is beginning the new year of service. For example, when a non-represented employee has completed their 11th year of service and is beginning their 12th year of service, their accrual will increase from 152 hours to 176 hours per year.

Maximum Accrual:

City Service Maximum Accrual
Employees with less than 14 years of City service 240 hours Employees with 15 or more years of City service 280 hours Non-represented employees are responsible for maintaining their vacation accrual below the applicable maximum accrual noted above and may reduce their accrual levels by participating in the annual vacation payoff program specified in Section 11.

Non- Represented employees shall not be eligible to take vacation time until they have successfully completed six (6) months of continuous service with the City.

ANNUAL VACATION PAYOFF. Non-represented employees shall have the option of receiving one cash payment each year for accrued vacation up to a maximum of eighty (80) hours if the following criteria are met:

A. A minimum of forty (40) total hours of vacation or administrative leave have been used during the same calendar year as the cash-out.

B. A minimum of twenty (20) hours of vacation remains in the employee's vacation accrual bank after payoff.

If the aforementioned criteria have been met, non-represented employees may request a cash payment of eighty (80) hours maximum to be included in the paycheck issued within the first payroll period in December.

Page 520 ends

Page 25 of 43 ends

To request a vacation payoff, the employee must submit an irrevocable election form specifying the number of hours the employee is requesting which must be received in the Human Resources Department before December 31st of the year prior to the payoff. For example, to receive a payout in 2018, an employee must submit a completed irrevocable election form to Human Resources before December 31st• 2107. If during the 2018 calendar year, the employee meets the criteria specified herein to be eligible for vacation payoff, they will receive the requested payoff. If the employee does not submit the irrevocable election form within the required timeline or they do not meet the criteria for payoff, no payoff will be given.

SECTION 12 - SICK LEAVE. Sick leave shall accrue according to the regular work schedule. Non-represented employees working a 9/80 schedule shall accrue sick leave at the rate of 3.69 hours per biweekly pay period (one (1), eight (8) hour day per month), should an employee be regularly scheduled to work a 4/10 schedule, they shall accrue sick leave at the rate of one 10-hour day per month (4.62 hours per bi-weekly pay period).

In accordance with California Labor Code section 245 et seq., should a non-represented employee separate from employment with the City of Fountain Valley, and then return to City employment within one (1) year from the date of separation, the employee's accrued, unused sick leave hours at the time of separation after any sick leave payoff if any, shall be reinstated upon re-hire.

Sick Leave Usage. The first five (5) days or work hours equivalent (e.g. 50 hours for employees on a 4/10 schedule) of paid sick leave taken each 12-month period will be considered sick leave used pursuant to the Healthy Workplaces, Healthy Families Act of 2014 (California Labor Code sections 245-249). The 12-month period is July 1 through June 30 for employees hired prior to July 1, 2015. For employees hired on or after July 1, 2015, the 12-month period is the 12-month period beginning on the employee's hire date, until the following July 1, at which point the employee's 12-month period will change to July 1 - June 30.

1. Employees can use sick leave for themselves for preventive care (such as physical exams) or care of an existing health condition;

Page 521 ends

Page 26 of 43 ends

2. Employees can use up to a maximum of one-half of one year's annual accrued sick leave (e.g. 60 hours for employees on a 4/10 work schedule) per year for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's child, parent, spouse or registered domestic partner. The first three days (or work hours equivalent) of sick leave an employee uses in a 12-month period can also be used for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's sibling, parents-in-law, grandparent, grandchild, individuals who live in the same household or whose relationship to the employee is that of a dependent or neardependent, or an employee may designate on person per 12-month period at the time the employee requests family sick leave. Sick leave usage for family illness is separate from Family Care and Medical Leave, the provisions of which are included in Administrative Regulation No. 1050; however, sick leave usage for family illness may run concurrently with Family Care and Medical Leave; or

3. Employees can use sick leave for specified purposes if they are victims of domestic violence, sexual assault or stalking as set forth in California Labor Code subsection (c) of Section 230 and subdivision (a) of section 230.1(a).

After an employee has used three sick leave days (or work hours equivalent) in a 12-month period, the use of sick leave shall be subject to the approval of the Division Manager or Department Director who may request a physician's statement or other documentation substantiating the illness at any time and may require a release to duty before allowing a nonrepresented employee to return to duty. Non-represented employees will be required to use accrued sick leave prior to requesting a leave of absence without pay.

SICK LEAVE PAYOFF. Upon completion of ten (10) years of continuous service with the City, the non-represented employee who separates from the City due to retirement or the death of the employee shall be paid for 25% of the accrued, unused sick leave balance at the time of retirement or death, up to a maximum of $10,000.

Page 522 ends

Page 27 of 43 ends

Non-represented employees that resign shall be paid for 25% of the accrued, unused sick leave balance at the time of separation, up to a maximum of $6,000.

Non-represented employees terminated for cause are ineligible for any payoff of unused sick leave.

A retiring non-represented employee may, however, elect to forego their sick leave payoff so all their sick leave accrual at the time of retirement is credited toward CalPERS service credit as specified below. A non-represented employee electing to forego their sick leave payoff must submit a written election to the Human Resources Department prior to retirement.

RETIREMENT CREDIT FOR UNUSED SICK LEAVE. Pursuant to Government Code Section 20862.8 and the City's contract with CalPERS, the non-represented employee who retires from the City may receive service credit towards their retirement for all accrued, unused sick leave for which they do not receive compensation. This provision shall apply to the non-represented employee whose effective date of retirement is within four months of separation from employment with the City. Contributions to the California Public Employees' Retirement system shall not be made on any payoff for accrued, unused sick leave.

SECTION 13 - BEREAVEMENT LEAVE. Non-represented employees shall be entitled to a maximum of three (3) working days’ absence with pay, as bereavement leave, when they are compelled to be absent from duty by reason of death of an immediate family member, or in the event of critical illness where death appears to be imminent. Those employees who have been employed for at least thirty (30) days with the City shall be entitled to a maximum of five (5) working days off (of which three (3) of these days will be paid as indicated above).

For purposes of bereavement leave, "immediate family member" refers to spouse, registered domestic partner, child, step-child, grandchild, sibling(s), parent(s), step- parent(s), parent(s) inlaw, grandparents, or legal guardian.

Page 523 ends

Page 28 of 43 ends

SECTION 14 - INDUSTRIAL INJURY LEAVE. Non-represented employees who sustain injuries or illnesses arising out of their employment or in the course of their employment shall be entitled to a maximum of ninety (90) calendar days of industrial injury leave at full salary and benefits, in lieu of temporary disability benefits. Non-represented employees who are absent from work for longer than ninety (90) calendar days due to industrial illness or injury will receive those benefits provided for in the workers' compensation law, as well as any long-term disability benefits to which they may be entitled. Non- represented employees will also be permitted, after exhaustion of the ninety (90) days industrial injury leave, to use accrued sick leave to supplement their workers' compensation benefits. In no case will a non-represented employee be permitted to receive more than their regular pay.

SECTION 15 - ADMINISTRATIVE LEAVE. Non-represented employees are classified as exempt in accordance with the Fair Labor Standards Act and not eligible for overtime. Nonrepresented employees will, however, be eligible for Administrative Leave in consideration for extra hours worked:

Non-represented employees shall be eligible for eighty (80) hours of Administrative Leave per calendar year. At the beginning of the calendar year, employees shall be credited with 80 hours of Administrative Leave. Administrative Leave which is not taken is forfeited and may not be carried over into the next calendar year. Any such leave remaining at separation is forfeited and has no cash value. Administrative Leave will be pro-rated on a monthly basis for newly hired or promoted employees after January 1st.

SECTION 16 - TUITION REIMBURSEMENT PROGRAM. Provisions for Tuition Reimbursement are defined in Administrative Regulation No. 1087 SECTION 17 - ILLEGAL/CONTROLLED SUBSTANCE SCREENING. Nonrepresented employees acknowledge the City's right to at its discretion to include illegal/controlled non-represented employees hired. "Illegal/Controlled Substance" is defined as a drug, substance, or immediate precursor which are included in Schedules I through V, inclusive

Page 524 ends

Page 29 of 43 ends

of the "California Uniform Controlled Substances Act" (Health and Safety Code Sections 11053- 11059), as well, as defined in Health and Safety Code Sections 11018-11020.

SECTION 18 - GRIEVANCE PROCEDURE.

CITY CLERK ADMINISTRATOR EXCLUSION: The provisions of Section 18 do not apply to the City Clerk Administrator who is an at-will employee of the City of Fountain Valley with no vested rights to the position and serves at the pleasure of the City Manager and may be terminated without cause in accordance with Title 2 of the City's Municipal Code. In accordance with Section

2.18.030 of the City's Municipal Code, the City Clerk Administrator is not entitled to a hearing, statement of charges or due process if terminated.

GENERAL. The following grievance procedure is for the purpose of affording non-represented employees a means of obtaining appropriate consideration by supervisory and management personnel of problems within their power to resolve.

SCOPE OF GRIEVANCE PROCEDURE. A grievance may be initiated by any non-represented employee who believes that the application of a policy, practice, rule, or procedure has been incorrect or inappropriate, and has adversely affected their employment. The following subjects are excluded from the scope of the grievance procedure:

1. Matters which have other means of appeal within the City, including disciplinary actions.

2. Matters which are within the exclusive jurisdiction of another agency, and for which a means of appeal is provided.

3. Matters pertaining to clarification of any of the provisions of this Memorandum of Understanding are within the scope of the grievance procedure (see Interpretation of MOU section below).

4. Classification content.

Page 525 ends

Page 30 of 43 ends

FORM. All grievances must be submitted in writing, and must contain the following information:

A. Non-represented employee's name, title, department, and division.

B. The name of the individual or organization, if any, representing the non-represented employee in the grievance procedure.

C. The date the grievance is being submitted.

D. The nature of the grievance, including a statement of the specific rules, regulations, policies, procedures, ordinances, or resolutions, if any, which are alleged to have been violated, the date the alleged violation occurred, and the specific decision or action which constituted the alleged violation.

E. The facts and/or circumstances which gave rise to the grievance.

F. Any available support documentation or other material which is to be considered in conjunction with the grievance.

G. A statement of the remedy which the non-represented employee is seeking.

INFORMAL DISCUSSION. If a non-represented employee has a problem relating to a work situation, the non-represented employee is encouraged to request a meeting with their immediate supervisor to discuss the problem in an effort to clarify the issue and to work cooperatively towards settlement.

Page 526 ends

Fountain Valley City CouncilJune 4, 2024

Fountain Valley City Council
June 4, 2024