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HomeMy WebLinkAboutFire Union - Side Letter Agreement and Joinder Agreement June 2025RESOLUTION NO. FD 2025-008 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA, CALIFORNIA, APPROVING SIDE LETTER AGREEMENTS AND JOINDER AGREEMENT BETWEEN RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND FIRE UNION LOCAL 2274 AND FIRE MANAGEMENT EMPLOYEES' BARGAINING GROUP WHEREAS, representatives of the Rancho Cucamonga Fire Protection District (District), Fire Union Local 2274 and Fire Management Employees' Bargaining Group representatives have met and conferred pursuant to the provisions of Meyers-Milias-Brown Act(California Government Code §3500, et seq.) with regard to terms and conditions of employment; and WHEREAS, representatives of the District and Fire Union Local 2274 and Fire Management Employees' Bargaining Group have agreed upon and presented to this Fire Board a Side Letter Agreement (see attached Side Letter Agreements) and Joinder Agreement (see attached Joinder Agreement), effective July 5, 2025; and NOW, THEREFORE, THE FIRE BOARD OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT HEREBY RESOLVES that said Side Letter Agreement and Joinder Agreement with Fire Union Local 2274 and Fire Management Employees' Bargaining Group are hereby approved and the City Manager is hereby authorized to sign said Side Letter Agreements and Joinder Agreement on behalf of the Rancho Cucamonga Fire Protection District, and the City Clerk to attest thereto. Resolution No. FD 2025-008 - Page 1 of 2 PASSED, APPROVED AND ADOPTED this 18th day of June, 2025. C Denni ichael, 'resident ATTEST: im Sevy, Secretary K I, Kim Sevy, Secretary of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Regular Meeting of said Board held on the 18th day of June, 2025. AYES: Hutchison, Kennedy, Michael, Scott, Stickler NOES: None ABSENT:None ABSTAINED: None Executed this 19th day of June, 2025, at Rancho Cucamonga, California. m Sevy, Secret Resolution No. FD 2025-008 - Page 2 of 2 SIDE LETTER OF AGREEMENT MEMORANDUM OF UNDERSTANDING RANCHO CUCAMONGA FIRE PROTECTION DISTRICT AND RANCHO CUCAMONGA FIREFIGHTERS' ASSOCIATION - IAFF LOCAL 2274 2023- 2026 AUTHORIZING CONTRIBUTIONS TO IAFF MERP The Rancho Cucamonga Fire Protection District ("District") and the Fire Union Local 2274 collectively, the "Parties") entered into a Memorandum of Understanding ("MOU") that commenced on July 1, 2022. and expires on June 30, 2026. The Parties met and conferred in good faith in May of 2025. The Parties agreed to an updated MOU process related to the IAFF Medical Expense Reimbursement Plan. ARTICLE II —COMPENSATION 12. IAFF Medical Expense Reimbursement Plan A. Acknowledgement. The Rancho Cucamonga Fire Protection District hereafter "District") acknowledges that the Rancho Cucamonga Firefighters' Association-IAFF Local 2274 (hereafter "Union") has entered into an agreement with the IAFF Medical Expense Reimbursement Plan hereafter, the "IAFF MERE) of the Washington State Council of Fire Fighters Employee Benefit Trust (hereafter, the "Trust"). The purpose of the Trust shall be to provide for retiree health expense reimbursement benefits. The Trust shall be, and remain separate and apart from any District health insurance funding program. B. Defined Class of Employees Receiving Contributions. The "Defined Class" of employees receiving contributions to the Trust as set forth below, consists of all employees represented by the Union. C. Employee Contribution Amount. The District and Union agree that upon adoption of this agreement the Employee shall cease making contributions to the CaIGoVEBA set forth in ARTICLE II, Section 10 of the MOU. The District shall instead withhold a mandatory pre-tax per pay period contribution set forth in Table C-1 below from the pay of every employee of the Defined Class based on the employee's date of hire with the District. The District shall transmit such contributions to the Trust pursuant to the requirements in Part (E) below. No employee shall be permitted to opt-out of the mandatory employee contributions or receive any portion of the contribution in cash. Table C-1 Employee Date of Hire with the Per Pay Period Employee District Contribution Amount Prior to 2010 200 2010 through 2019 150 2020 through present 100 IAFF MERP Page 2 of 4 D. District Contribution Amount. The District shall not make recurring monthly or pay period contributions to the Trust unless expressly set forth in this section. 1) Transfer of Employee Sick Leave—At Retirement. The District and Union agree that the cash and CaIGoVEBA options for accrued Sick Leave at retirement set forth in Article III — Section 3(H) of the MOU shall be eliminated. For every employee in the Defined Class, the District shall, upon the employee's retirement from the District, irrevocably contribute to the employee's Trust account on a pre-tax basis, an amount equal in value to 100% of the payments that would otherwise be paid to the employee for unused Sick Leave. The employee, by written election received by the District no later than 30 days prior to retirement, may elect to direct any portion of the value of the accrued Sick Leave to a District sponsored 401(a) plan, 457(b) plan up to allowable IRS plan limits and/or apply unused Sick Leave hours to CaIPERS Service Credit. No employee in the Defined Class shall have the option to receive cash for the value of the accrued Sick Leave in lieu of making contributions to the Trust and/or 401(a), 457(b) plans or CaIPERS Service Credit. 2) Transfer of Employee Vacation Leave—At Separation. The District and Union agree that the cash and CaIGoVEBA options for the value of accrued Vacation Leave at separation pursuant to Article III — Section 2(D) of the MOU shall be repealed and replaced subject to the terms set forth below. For every employee in the Defined Class, the District shall, upon the employee's separation from the District, irrevocably contribute to the employee's Trust account on a pre-tax basis, an amount equal in value to 50% of the payments that would otherwise be paid to the employee for unused Vacation Leave. The employee, by written election received by the District no later than 30 days prior to retirement, may elect to direct any portion of the value of the accrued Vacation Leave to a District sponsored 401(a) plan or 457(b) plan up to allowable IRS plan limits. No employee in the Defined Class shall have the option to receive cash for the value of the 50% of accrued Vacation Leave set forth herein in lieu of making contributions to the Trust and/or 401(a) or 457(b) plans. The remaining 50% value for accrued and unused Vacation Leave shall be paid to the separating employee in cash. IAFF MERP Page 3 of 4 E. Remittance of Contributions. The District shall remit all contributions set forth herein directly to the custodian of the Trust within 30 days of the date the payment would have been payable to the employee. The District hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust in regard to reporting and depositing the required contributions set forth herein. F. Reporting to the Trust Office, The District shall electronically submit to the Trust Office a report of contributing employees for each contribution sent to the Trust, in the format requested by the Trust, and received by the Trust Office within five (5) days of receipt of the contribution funds. The report will include at a minimum: employee first and last name, with suffix as applicable; employee number; Social Security Number; employee status (e.g., active, on leave); date of birth; gender; date of hire; bargaining unit; date of change in bargaining unit, as applicable; home mailing address; District contribution amount; Employee contribution amount; leave transfer amount, as applicable; separation date, as applicable; and separation reason. The District shall also provide an initial report of contact information for all contributing Employees to the Trust Office, in a format reasonably requested by the Trust, and shall send updates to this information to the Trust Office whenever the District has notice of changes to the information. The Trust Office will provide a secure data transfer platform or process for transmission of this employee information to the Trust Office. G. Modification of Employee Contributions. The District and the Union agree that the Union has the right, subject to approval of its members according to the Union's internal rules, to prospectively modify the amount of the mandatory employee monthly contribution (Section C) once per fiscal year, or to include the mandatory transfer of employee leave for which the Employee is eligible to receive monetary compensation during the course of this Agreement, as long as the modification is mandatory for all employees in the Defined Class. H. Indemnification. The Union agrees to indemnify and hold the District harmless from any liabilities of any nature which may arise as a result of the operations of the Trust, except for the obligation of the District to remit and report on the non-elective transfer of contributions as described in this Section. This Side Letter of Agreement shall be incorporated into the MOU. The MOU shall remain in full force and effect except to the extent modified by this Side Letter of Agreement.This Side Letter of Agreement shall not be effective until ratified by the District Board and approved by the Fire Union Local 2274. IAFF MFRP Page 4 of 4 For the Fire Protection District For the Fire Union Local 2274 7o n Gillison aniel N// arrette, President City Manager Fire on Local 2274 IAFF MEDICAL EXPENSE REIMBURSEMENT PLAN JOINDER AGREEMENT FOR IAFF LOCALS I) Negotiated contribution. The undersigned IAFF Local(hereafter"Associations")and Rancho Cucamonga Fire Protection District hereafter "Employer') acknowledge receipt of a copy of the IAFF Medical Expense Reimbursement Plan ('Plan") and Trust Agreement governing the Washington State Council of Fire Fighters Employee Benefit Trust (hereafter "Trust Agreement'). Associations and Employer have negotiated a mandatory contribution into the Washington State Council of Fire Fighters Employee Benefit Trust (hereafter "Trust") pursuant to the MEMORANDUM OF UNDERSTANDING RANCHO CUCMONGA FIRE PROTECTION' DISTRICT AND RANCHO CUCAMONGA FIREFIGHTERS ASSOCIATIOA - IAFF LOCAL 22'4 and MEMORANDUM OF UNDERSTANDING RANCHO CUCAAIOI'GA FIRE PROTECTION DISTRICT AND RANCHO CUGI.IOVGA FIRE PROTECTION DISTRICT FIRE MANAGEMENT EAIPLO)EES'BARGAINING GROUP(hereafter"CBAs"). 2) Request to participate Request is hereby made that employees represented by the Rancho Cucamonga Firefighters Association, IAFF Local 2274 and the Rancho Cucamonga Fire Protection District Fire Management Employees' Bargaining Group be participating employees in the "IAFF Medical Expense Reimbursement Plan" (hereafter"Plan"). The Plan provides retiree medical expense reimbursement benefits. In consideration of the granting of this request, the Associations hereby agree to be bound by the terms,conditions and provisions of said Trust Agreement and Plan. The undersigned Associations hereby acknowledge that they are solely responsible for determining any liability or tax consequences (including the determination of all related tax reporting requirements)arising from its actions to participate in the Plan and the transfer of assets to the Trust. 3) Monthly contribution rate. The monthly or per pay period contribution rate to the Trust is set forth in ARTICLE II of the CBAs. Attached is a true and complete copy of the CBAs,effective July I,2023,authorizing contributions to the Plan. The Associations or Employer shall provide the Trust with a copy of any successor CBAs executed after the effective dale of the CRAB referenced in this paragraph. Note re sick or vacation leave: There are provisions in the CBAs regarding a mandatory sick and vacation leave contributions to the Trust,at ARTICLE III. It is for a transfer of sick leave at retirement and vacation leave at separation There are not provisions in the CBAs regarding other mandatory Lump Sum Transfers(as defined in the Plan)to the Trust on behalf of employees. The above-referenced contributions to the Trust on behalf of an employee will cease when the employee promotes or transfers out of the Association bargaining units to a non-represented classification. 4) In-lieu/Cafeteria/Flexible Benefits Contributions. There are not provisions in the CBAs regarding a mandatory contribution of In-lieu Incentive"for employees waiving employer-provided health insurance benefits and/or cafeteria/flexible benefits funds. 5) Retiree contributions. There are not provisions in the CBAs for Retiree Contributions to the Trust on behalf of retired employees. 6) No individual election to participate. Associations and Employer certify that all contributions(including transfer of sick or vacation leave) will be made on all employees in the bargaining unit, as stated in the CBAs, and employees may not individually elect against participation in the Plan. 7) Contribution Reporting. The Employer shall electronically submit to the Trust Office a monthly or per pay period report of contributing employees,with sufficient identifying information pursuant to the reasonable rules of the Trust,for each contribution sent to the Trust. The Employer shall also provide an initial report of contact and identifying information for all contributing employees,in a format reasonably requested by the Trust,and shall send updates to this information to the Trust Office whenever the Employer has notice of changes to the infommtion contained therein. 8) Contribution Drlinm.rnrir.. The Associations acknowledges that the Trust Agreement contains provisions regarding pursuit of delinquent contributions, and the Association agrees to cooperate with the Trustees in proceedings to recover such delinquent contributions. The Employer and Association acknowledge that federal law imposes penalties an the employer for late contributions, currently for contributions received by the Plan more than 90 days after the date the salary would have been payable to the employee. 9) Pooled Sharine of Risk and Costs. The Associations acknowledge that the Trustees pool all contributions except for Lump Sum Transfers (as defined the Plan) (e.g., sick and/or vacation leave); that the Trust and Plan operate based on a multiemployer basis, sharing costs and risk between all participants, and not based only on the employees in These Associations; and that the monthly benefit levels will be set based on actuarial projections for the entire Trust population,and not based only on the employees in these Associations. 10) Limitations. Associations and Employer acknowledge Article XI, Sections I and 2, of the Trust Agreement contain the following provisions concerning liabilities associated with the Trust and Plan: 1402:A0915353 II Dr sn's 121194515.2 RA015-001 Joinder Agreement IAFF MERP Page 2 I. Liabilities and Debts of Trust Fund No signatory party or Trustee, and no participating employer, employer association. labor organization, employee. or beneficiwy shall he responsible for the liabilities or debts of the Trust Fund" 2. Liabilities and Debts of Participating Parties No participating employer. employer association, or labor organization shall become responsible by reason of their participations in the Trust Fund for the liabilities or debts of any other participating employer,employer association, or labor organization. Ercept for any obligation to make contribution to the Trust pursuant to a Special Agreement or Subscription Agreement. a Participating Employer shall have no obligation to provide benefits to which its employees may be entitled under a Memorandum of Understanding to the extent that those benefits are provided under a plan funded through the Trust A Participating Employer shall not be a fiduciary of the Trust, any employee benefit plan forded through the Trust. and shall have no responsibility or liability for Trust investments or the income tax treatment ofTrust earnings or benefits provided under such plan." I I)Term. This Agreement shall be effective upon the Trusts receipt of the first contribution and shall remain in effect unless terminated in accordance with the terms of the Trust Agreement. Written notice of termination must be received by either party prior to the first day of the month in which participation is to be terminated. We acknowledge Article XI Section 6 of the Trust Agreement and acknowledge that upon termination of this Agreement there wilt be no refund of any contributions to the employees, the Employer,or the Associations,except as benefits paid according to the Plan or as required by law. Approved by: Acknowledged by: y Loc 74 A oozed SSii,Cnature) By Employer(Authorized Signature) 6bet/c-e" l./(Y/i 6 //- Print Name&Title Print Name&Title Da a Dale contort person at Local 2274:Cyontact person at Employee J2ii//?/'cu AegrA- ,'9n o%t Ntik r, roo&k.vc ixraOenyofrr. A'ame and Title) ram Name and Email Address) s 7 fi x/`7 Orr'/_ Meirei 9 09- 119 - a`101 Phone and Email) cr- (c f' Association Phone) l SGCJ h/ f„7er 4t t050o C Vic ecr - 'Dr. Street Address) 4 ! /i" 9/7Z eel Address)cow- motlr O y Fire Management Employees' Unit(Authorized Signature)Signature) A4M. e_om EAt) A11&t-3051 Lk4St Print Name&Title l• 7— • 2o2.l Dale Contact person at Fire Management Employees'Unit CUM) UrMEAJ 3AtTAL50M ao-Yee Name and Title) I I4072/AU915J5J II 12894515.2 RA015-0111 Joinder Agreement AFP MERP Page 3 94 t 43°0.-2N11 Ct;hD . COR ev (. CTokecRc .JS Phone and Email) Io5o0 C3v>L C6AT411.. bit. R.C. or 11730 Slreel:Iddress) IAFF MERP Joinder Agreement Re:Rancho Cucamonga Firefighters'Association,Local 2274 and Rancho Cucamonga Fire Management Employees Approved and Processed for the Board ofTrostees by the Trust Office frSiR Lili Gaspar Print Name) 7/8/2025 Dine) clo Benefit Programs Administration 1200 Wilshire BIvd,fBh Floor Los Angles CA 90017 Phone:844-353-7839 Entail:Padig I IJ072 A0915353 11 12894515.2 RA015-001