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Resolution No. 2019-042RESOLUTION NO. 2019-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A SIDE LETTER OF AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND THE VERNON FIRE MANAGEMENT ASSOCIATION WHEREAS, the Vernon Fire Management Association ("VFMA"), has been recognized as an employee organization pursuant to the City of Vernon Employer -Employee Relations Resolution (Resolution No. 4027); and WHEREAS, on July 12, 2016, the City Council of the City of Vernon adopted Resolution No. 2016-37 approving a Memorandum of Understanding ("MOU"), as amended on October 24, 2017, by Resolution No. 2017-55, setting forth certain terms and conditions for employment of City of Vernon employees in classifications represented by the VFMA, for the period of July 1, 2016 through June 30, 2019; and WHEREAS, following the August 6, 2019, decision by the City Council of the City of Vernon to contract with the Fire Protection District of Los Angeles County (the "District") for firefighting services, the City and the VFMA began negotiating the impacts and effects of the City's decision to contract firefighting services and transition thereto; and WHEREAS, representative members of the VFMA and the City have agreed to execute a Side Letter of Agreement with the following key provisions: (i) extending the terms of the MOD until the commencement of services by the District, or through August 1, 2020, or until such time as a determination is made that the transition of service to the District will not proceed; (ii) amending Article Five, Section 1(C) regarding vacancies to be filled providing for the backfill of Battalion Chief vacancies at the discretion of the Fire Chief; (iii) providing retiree medical benefits to those VFMA represented employees who transfer to the District and who have a minimum of twenty (20) years of service with the City of Vernon as of the date of transition, offset by the amount of any retiree medical benefits earned through District service; and (iv) stipulating as to the employees, ranks, salaries, and City service dates of transferring employees; the amount of vacation and sick leave to be transferred for each employee to the District, and provisions in the event an employee is determined to be ineligible for transfer. WHEREAS, all other terms of the previous MOD would remain in effect; and WHEREAS, the City Council of the City of Vernon desires to approve the Side Letter of Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act (CEQA) review, because it is an administrative activity that will not result in direct or indirect physical changes in the environment and therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378. SECTION 3: The City Council of the City of Vernon hereby approves and authorizes the execution of the Side Letter of Agreement (the -Agreement") between the City of Vernon and the Vernon Fire Management Association, in substantially the same form as attached hereto as Exhibit A. SECTION 4: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Agreement attached herein. SECTION 5: The City Council of the City of Vernon hereby directs the Interim City Clerk, or the Interim City Clerk's designee, to send a fully executed Agreement to Todd Painton, President of the Vernon Fire Management Association. SECTION 6: The Interim City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the Interim City Clerk, of the City of Vernon shall cause this resolution and the Interim City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 1st day of October, 2019. ATTEST: De orah Harringt Interim City Clerk APPROVED AS TO FORM: 4Za Moussa, Son' r Deputy City Attorney It VN P6elis 'A. Ybarra Title: Mayor - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Deborah Harrington, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2019-42, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, October 1, 2019, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this 'P day of October, 2019, at Vernon, California. (SEAL) 4 - D orah Harringt 06, Interim City Clerk EXHIBIT A SIDE LETTER OF AGREEMENT City of Vernon and Vernon Fire Management Association This Side Letter of Agreement ("Agreement") is entered by and between the City of Vernon ("City') and the Vernon Fire Management Association ("VFMA") with respect to the following: WHEREAS, VFMA is the recognized employee organization for employees employed by the City's Fire Department in the classifications of Assistant Fire Chief, Fire Battalion Chief, Administrative Fire Battalion Chief, and Fire Marshal; and WHEREAS, VFMA and the City have been actively engaged in negotiation for a successor Memorandum of Understanding ("MOU") to the one that expired June 30, 2019; and WHEREAS, the City's elected Council voted to contract for firefighting and related services with the Consolidated Fire District of the County of Los Angeles ("the District"); and WHEREAS, following the vote of the City's Council to contract for firefighting services, the City and VFMA ceased negotiating a successor MOU and have been negotiating the impacts and effect of the City's decision to contract for firefighting services; and WHEREAS, the City and VFMA have reached an understanding with respect to the rights and entitlements of its members should the City enter into a contract for firefighting and related services with the District and wish to memorialize that agreement herein. NOW THEREFORE, the City and VFMA agree to amend their MOU as follows: 1. Term of Agreement and MOU: The term of the MOU shall be extended until the earlier of either (1) the commencement date of service by the District, in which case no further MOU will be necessary; or (2) until such time as it is reasonably determined that contracting for firefighting service with LA County will not proceed, in which case the provisions of this side letter shall be null and void and the parties shall reconvene negotiations for a successor MOU; or (3) August 1, 2020, in which case the parties shall either mutually agree to further extend this side letter agreement and the MOU or, if no such agreement is reached to extend the side letter agreement and the MOU, the provisions of this side letter shall be null and void and the parties shall reconvene negotiations for a successor MOU. Any VFMA represented employee who chooses to retire prior to the commencement date of service by the District shall be entitled to the payoffs and other benefits to which they are entitled under the July 1, 2016 through June 30, 2019 MOU, except as specifically amended by this side letter. 2. Retiree Medical and Dental: For those VFMA represented employees who transfer to the District with twenty (20) or more years of continuous service with the City of Vernon Fire Department as of the date of transfer (a list of qualifying employees is attached hereto as Exhibit "A"), the following shall apply: a. If the employee separates from the District after age 50 without becoming entitled to a retiree medical contribution in the County's retiree medical health plan, the City shall pay that former employee a retiree medical/dental benefit reimbursement allowance in an amount equal to the actual cost of medical and dental insurance for the employee and his/her spouse, not to exceed $1,100 per month. The reimbursements shall occur quarterly and the employee shall present, quarterly, proof of medical and/or dental insurance coverage and premiums. For purposes of this transitional benefit, qualifying employees (as listed on Exhibit "A") shall have a vested right to the City retiree medical benefit as set forth herein upon transition to employment with the District. b. If the employee separates from the District and qualifies for a District/County retiree medical contribution, the City's payment of a medical/dental insurance benefit for the employee and his/her spouse of up to $1,100 per month will be offset by the amount of benefit the employee is eligible to receive from the District/County. For example, if the cost of the medical and dental insurance premiums for the employee and spouse cost $1050/month, and the employee qualifies for a County/District contribution of $400/month, the City's reimbursement shall be $650/month ($400+$650-$1050). c. Upon reaching the age of sixty-five (65), the employee and/or eligible spouse shall apply for Medicare coverage. The City shall pay up to 100% of the cost of a Medicare supplemental medical and dental insurance plan not to exceed $1,100 per month. Reimbursement does not include the cost of Medicare premiums and/or copays, but rather a Medicare supplement medical and dental insurance plan. Any amount provided to the employee shall be offset by the amount the employee is eligible to receive from the District/County. 3. Overtime: Article Five, Section 1 (C) of the MOU is amended to read as follows: C. Vacancies To Be Filled Any vacancy, whether permanent or as a result of any type of leave, in the Battalion Chief rank may be backfiRed at the discretion of the Fire Chief. 4. Personnel. Ranks. and Salaries: By no later than October 31, 2019, the parties shall reach agreement on the names, City Rank, Transfer Rank, City Seniority Date, and City Salary information contained in Schedule 7 of the agreement between the City and the District, which may be amended by the parties due only to the separation of an employee(s) prior to transition. The determination of which ranks of VFMA members transfer to the District is determined using time in rank (or a higher rank). For example, the last promoted Captain will be the first bumped down to a classification previously held by that Captain. 5. Transfer of Vacation And Sick Leave Hours: By November 30, 2019, VFMA members who desire to transfer to the District shall designate the number of available, accrued vacation and sick leave hours to be transferred, up to 240 hours of vacation leave and 240 hours of sick leave. Any employee failing to make a designation, will be deemed to have designated the maximum number of available vacation and sick leave hours to be transferred. 6. Payout of Remaining Sick Leave and Vacation Leave Hours: Any accrued vacation leave not being transferred to the District shall be paid to employees at their regular hourly rate at the time of separation. Any remaining sick leave hours not being transferred to the District shall be forfeited; provided, however, that those employees with 20 years or more of continuous service on the date that firefighting and related services are transferred to the District shall be compensated for all unused sick leave at the time of separation at 50% of the employee's then current regular hourly rate of pay, pursuant to Article Ten, Section 11(B) of the MOU. 7. Employees Deemed Ineligible for Transfer: Any VFMA represented employee deemed ineligible to transfer by the District will be separated from City effective the date of commencement of service by the District, and the employee would be entitled to any payoffs or other benefits to which they are entitled under the MOU or pursuant to law. The City agrees that it will certify as qualified for industrial disability retirement any member of VFMA who is rejected from employment by the District due to a legitimate industrial injury or other industrial medical condition, and who meets applicable CaIPERS criteria for Industrial Disability Retirement, upon submission of the required paperwork (DWC-1, etc.). The parties agree that if a disability retirement is not granted, the City is under no obligation to reinstate the employee to employment with the City as the employee's position has ceased to exist. Any VFMA member who is on leave pursuant to Labor Code section 4850 on the date of transition and who is not being immediately offered a position by the District will continue to receive their Section 4850 payments for the duration of their statutory entitlement (up to one year) under the law. However, such individuals will not be considered employees of the City beyond the date of transition. VFMA employees who are off on a non -industrial injury or illness leave or who have exhausted their Labor Code 4850 benefits on the date of transition will be laid off from the City as of the date of transition, and shall be paid for their accrued leaves and other benefits per the terms of the MOU. 8. Terms of Agreement For Services Between The District and City Incorporated Herein: The parties acknowledge that the Agreement for Services between the City and the District (attached hereto as Exhibit "C") contains terms and provisions that directly impact the determination of who and under what terms employees shall transition to the District and the wages, hours and other terms and conditions of employment of those transitioning employees. To that end, the terms of the Agreement for Services between the City and The District are hereby incorporated by reference as though set forth in full and shall not change in any manner that materially alters the determination of who and under what conditions an employee transitions to the District and the wages, hours and other terms and conditions of employment of VFMA members that transition. [Signatures next page] FOR THE CITY OF VERNON Carlos R. Fandino, Jr., City Administrator ATTEST: Deborah arrington, Interim City Clerk VERNON FIRE MANAGEMENT ASSOCIATION Todd Painton, President Todd Schoenig, Vice President Craig Peltier, Secretary Date APPROVED AS TO FORM: Zaynah Moussa, Senior Deputy City Attorney Date APPROVED AND ADOPTED BY CITY COUNCIL ON PER RESOLUTION Exhibit A Employee Full Name PELTIER, CRAIG D SCHOENIG, TODD R PAINTON, TODD S Position Title FIRE BATTALION CHIEF FIRE BATTALION CHIEF FIRE BATTALION CHIEF Orig hire Years of d.6e �e 10/24/1988 30.8 ry 11711991 28.6 1112/1992 26.8 Employee Signature VFMA As of9-24-2019 1 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AGREEMENT FOR SERVICES BY AND BETWEEN THE CONSOLIDATED FIRE PROTECTION DISTRICT OF LOS ANGELES COUNTY AND THE CITY OF VERNON THIS AGREEMENT is made and entered into this _ day of , _, by and between the Consolidated Fire Protection District of Los Angeles County, hereinafter referred to as the "FIRE DISTRICT," and the City of Vernon, hereinafter referred to as the "CITY." WITNESSETH WHEREAS, the CITY has decided to contract with FIRE DISTRICT for fire protection, hazardous materials, emergency medical, and all related services as authorized by California Government Code Section 54981, and the FIRE DISTRICT is authorized to provide such services pursuant to California Health and Safety Code Section 13800, at. seq; WHEREAS, it is the desire of the CITY to receive regional fire protection services from the FIRE DISTRICT due to the benefits afforded by regional service delivery; and WHEREAS, it is the desire of the parties hereto to address, by this Agreement, all matters which are related to a contract for services to be provided to the CITY by the FIRE DISTRICT. SECTION I. AGREEMENT EFFECTIVE DATE AND TERM (A) The effective date of this Agreement shall be the date of approval by the Board of Supervisors of the County of Los Angeles as the governing body of the FIRE DISTRICT, which is , and this Agreement shall continue in effect until such time as this Agreement is terminated or otherwise renegotiated. (B) The provision of services by the FIRE DISTRICT to the CITY shall commence on the date stated in Schedule 1 established by the FIRE CHIEF of the FIRE DISTRICT, hereinafter referred to as "commencement date of services". (C) The date of annexation of the CITY to the FIRE DISTRICT shall be the date of recordation of annexation documents which shall be on or near the commencement date of services. -1- 1 2 3 4 5 6 7 8 9 IU, 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (D) This Agreement shall remain in effect for a minimum often (10) years from the commencement date of services ("Initial Ten -Year Tenn"). Subsequent to this Initial Ten -Year Tenn, this Agreement shall be automatically renewed for one year periods. Either party may terminate this Agreement any time after the expiration of the Initial Ten -Year Term upon one years written notice as provided in Subsection (E) of this Section I, subject to the terms and conditions of this Agreement. (E) Subsequent to the ninth (9) year of the Initial Ten -Year Term, the FIRE DISTRICT or the CITY may terminate this Agreement by giving at least one year's written notice to the other for termination of this Agreement and the CITY's detachment from the FIRE DISTRICT in accordance with this Section I. Notice shall be sent to the addresses listed in Section III, Subsection (1), herein, or as subsequently changed by either party in writing. (F) Should either party give written notice of its intent to terminate this Agreement, that party shall initiate detachment proceedings through the Local Agency Formation Commission (LAFCO). The party who terminates this Agreement, including any subsequent amendments, shall bear the cost of all fees associated with detachment of the CITY from the FIRE DISTRICT, unless CITY becomes delinquent or defaults in its Annual Fee payment to the FIRE DISTRICT for FIRE DISTRICT services pursuant to Section III, Subsection (0), in which instance CITY shall bear the costs. Such fees shall be defined as LAFCO fees, the State Board of Equalization fees, and any similar fees of this nature but shall not include any Board of Supervisors' or any CITY administrative fees or attorneys' fees. (G) A review of the Agreement terms maybe initiated at anytime by either party, upon five (5) days written notice to the other. Any modifications made to this Agreement shall be upon written consent of both parties. The parties agree to negotiate in good faith and deal fairly with respect to performance under this Agreement and with respect to any proposed I modifications to this Agreement. (SECTION It. SERVICES (A) Services to be provided by the FIRE DISTRICT to the CITY shall include fire protection, hazardous materials services, emergency medical services which include -2- 1 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 paramedic services, fire code and related code enforcement, fire cause and arson investigation, plus all FIRE DISTRICT support services including, but not limited to, supervision, dispatching, training, equipment maintenance, supplies, and procurement, collectively referred to as "Services" The CITY will not be charged for on -duty personnel reassigned from fire stations outside of the CITY to staff events in the CITY. The FIRE DISTRICT's cost for Fire Safety Officers (FSOs) or augmented staffing assigned to special events held in the CITY will be charged to the CITY for CITY -sponsored events or to non -CITY entities, whichever is the appropriate organization, as the cost for such augmented services is not included in the CITY's Annual Fee. (B) The power and authority relating to the provision of Services, the standards of performance, the discipline of personnel, and other matters related to the performance of such Services and control of personnel so employed by the FIRE DISTRICT shall be within the sole discretion of the FIRE DISTRICT. (C) The engine companies assigned to the CITY Fire Stations as listed on Schedule 3 attached hereto shall carry automatic external defibrillators, and all firefighting personnel shall be certified as Emergency Medical Technician-1. The minimum daily staffing level in the CITY as indicated on Schedule 3 herein is as follows: one engine company staffed with three personnel (one fire captain, one fire fighter specialist and one fire fighter); one engine company and one truck company each staffed with four personnel, (one fire captain, one fire fighter specialist and two fire fighters); and one paramedic squad staffed with two fire fighter paramedics, for a total operations staffing of thirteen uniformed personnel on duty daily in the CITY. This staffing level may be modified by mutual agreement of the CITY COUNCIL and FIRE CHIEF of the FIRE DISTRICT pursuant to Section XI. (D) All code enforcement, plan check approval, and other fire prevention activities shall be in accordance with the County of Los Angeles Fire Code and FIRE DISTRICT ordinances, regulations, standards, policies and procedures, except as may be amended pursuant to Section X herein. (E) Transportation of a patient to a hospital in a medical emergency is not provided by -3- I the FIRE DISTRICT. Emergency medical transportation is provided under a County of 2 Los Angeles contractual arrangement with a private ambulance company licensed to operate 3 within Los Angeles County. If the CITY opts to continue to provide medical transportation in 4 the CITY during the term of this Agreement, the CITY and FIRE DISTRICT will enter into a 5 Memorandum of Understanding which will outline the CITY's responsibilities in the 6 administration of its ambulance program, including the location of the housing of ambulance 7 program's personnel and equipment. 8 (F) The FIRE DISTRICT will participate in and support community emergency 9 preparedness, education, training, and exercises at the reasonable request of and at no 10 additional cost to the CITY. The CITY shall retain responsibility for the CITY's internal I I emergency management and related programs. 12 (G) Without cost to the FIRE DISTRICT, the CITY shall, within the legal boundaries of 13 the CITY, retain responsibility for providing a water system including fire hydrants capable of 14 supplying adequate water fire flow to the FIRE DISTRICT. The CITY shall ensure that the 15 CITY's water purveyors provide adequate water and hydrants for fire protection purposes 16 within the CITY without cost to the FIRE DISTRICT. 17 (H) The FIRE DISTRICT shall annually inspect all fire hydrants within the CITY to 18 ensure that fire hydrants are mechanically operable and capable of delivering water. The FIRE 19 DISTRICT shall notify the CITY's water purveyors, in writing, of any maintenance requirements 20 as soon as possible after such inspections and at any other times the FIRE DISTRICT 21 becomes aware of maintenance or repair requirements. The FIRE DISTRICT shall not be 22 liable to pay any CITY water purveyor for hydrant installation, use, repair, maintenance, or 23 rental fees or any other related costs or expenses except if damage results from the FIRE 24 DISTRICT'S negligent use of said fire hydrants. 25 (1) The transference of applicable 9-1-1 calls to the FIRE DISTRICT shall be done 26 immediately upon receipt by the CITY's Public Safety Answering Point (PSAP) and shall be 27 performed without cost to the FIRE DISTRICT. The CITY shall be responsible for all costs 28 1 associated with connecting ring -down circuits from its PSAP to the FIRE DISTRICT's circuit. 4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (J) The FIRE DISTRICT shall provide to the CITY quarterly and annual statistical response information reports. The criteria utilized in the preparation of such reports shall be determined by the CITY ADMINISTRATOR and the FIRE DISTRICT's jurisdictional Assistant Fire Chief. (K) Nothing in this Agreement shall preclude the future expansion or relocation of the CITY'S Fire Stations referenced on Schedule 3 herein if such action is mutually agreed upon in writing by both the CITY and the FIRE DISTRICT's Fire Chief. (L) Any agreed -upon adjustments in staffing pursuant to Section XI, Subsection (B) herein may cause adjustments in the determination of the Annual Fee, as specified in Schedule 2 attached hereto and made a part hereof. SECTION III. ANNUAL FEE FOR SERVICES (A) The CITY shall pay an Annual Fee for FIRE DISTRICT Services, hereinafter referred to as "Annual Fee." As provided for in the California Health and Safety Code Section 13878, the FIRE DISTRICT shall be paid monthly, in advance, from funds of the CITY for the performance of the services referred to in Section II, hereof. The Annual Fee shall be determined by the method specified in Schedule 2, attached hereto and made a part hereof. The CITY shall pay the FIRE DISTRICT one -twelfth (1/12) of the estimated or actual Annual Fee monthly, in advance, on or before the first day of each month. The one-year period for payment of the Annual Fee is defined as July 1 through June 30, herein referred to as "Fiscal Year." (B) At least ninety (90) days prior to the commencement of each Fiscal Year, the FIRE DISTRICT shall submit a preliminary estimate of the Annual Fee ("Preliminary Annual Fee") for providing Services to the CITY for the ensuing fiscal year. The Preliminary Annual Fee shall include estimated costs of FIRE DISTRICT salary and employee benefits and overhead, and shall be used for billing purposes until actual cost information is available. (C) As soon as actual cost information is available, the FIRE DISTRICT shall provide the CITY a statement of the actual Annual Fee for providing Services during the current fiscal year. If the Annual Fee is less than the Preliminary Annual Fee, the FIRE DISTRICT shall -5- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 credit the CITY for the difference, which amount shall be deducted from the first monthly invoice and, if applicable, the following monthly invoices subsequent to the statement of the Annual Fee. If the Annual Fee is greater than the Preliminary Annual Fee, the additional amount due the FIRE DISTRICT will be paid by the CITY during the subsequent fiscal year as follows: One -twelfth (1/12) of such additional Annual Fee amount due to the FIRE DISTRICT shall be added and paid in each of the CITY's subsequent twelve (12) monthly payments. (D) A limitation shall be placed on increases in the amount of Annual Fee to be paid by the CITY each year, hereinafter referred to as "Annual Fee Limitation" For purposes of calculation of the Annual Fee Limitation, the Annual Fee shall not include any conversion costs, credits, or rebates of any kind. The Annual Fee Limitation shall be subject to annual changes after the initial five-year period of this Agreement commencing with the date of services ("Initial Five -Year Period") as described below. During the Initial Five -Year Period, the Annual Fee Limitation shall not exceed four percent (4%) per Fiscal Year. At the conclusion of the Initial Five -Year Period, the FIRE DISTRICT will meet with the CITY to discuss cost trends and increases that will impact the CITY's Annual Fee. During the sixth year of this Agreement, the Annual Fee Limitation shall be the average of the immediately preceding four years' percentage increases in the Annual Fee plus one percent (1%). During the seventh year of this Agreement and each subsequent Fiscal Year, the Annual Fee Limitation shall be the average of the immediately preceding five years' percentage increases in the Annual Fee plus one percent (1%). (E) In any year where the CITY's Annual Fee, as specified in Section III, Subsection (C) hereinabove, exceeds the preceding Fiscal Year's Annual Fee plus the applicable Annual Fee Limitation, hereinafter referred to as "Annual Fee Limitation Excess," payment of the Annual Fee Limitation Excess shall be deferred to a subsequent future Fiscal Year(s) where the increase in the Annual Fee for that Fiscal Year over the preceding Fiscal Year is less than the Annual Fee Limitation. The Annual Fee Limitation Excess will be paid by the CITY in any subsequent Fiscal Year(s) to the extent the Annual Fee increase in that Fiscal Year is less than the Annual Fee Limitation for that Fiscal Year. One -twelfth (1/12) of such Annual Fee Q 1 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Limitation Excess shall be added and paid in each of the CITY's twelve (12) monthly payments for the subsequent Fiscal Year(s). In the event the CITY detaches from the FIRE DISTRICT, any unpaid Annual Fee Limitation Excess together with any outstanding Annual Fee payments due by the CITY as of the effective date of detachment shall be due and payable to the FIRE DISTRICT no later than the effective date of detachment. Should a credit be due the CITY from the FIRE DISTRICT, a refund shall be paid to the CITY no later than the effective date of detachment. (F) In addition to the Annual Fee, conversion costs as specified in Schedule 4 attached hereto and made a part hereof shall be charged to the CITY and shall be paid to the FIRE DISTRICT by the CITY in thirty-six (36) equal monthly payments. This amount shall be added to each monthly invoice for the Annual Fee commencing with the first month's Annual Fee invoice. Upon the final determination of the actual conversion costs as approved by the CITY ADMINISTRATOR and the FIRE CHIEF of the FIRE DISTRICT, the CITY's conversion cost balance will be adjusted as will all subsequent monthly invoices for the Annual Fee to reflect the actual conversion costs. (G) The CITY shall pay all annexation processing fees by check directly to and upon request by the FIRE DISTRICT. Such fees are anticipated to be: State of California Board of Equalization $ 300.00 County of Los Angeles Local Agency Formation Commission $ 8,500.00 (H) Fire protection, hazardous materials, emergency medical, and all related services as set forth in Section II, herein, shall not be performed by the FIRE DISTRICT hereunder unless the CITY shall: 1. Have available funds previously appropriated to cover the Annual Fee; and 2. Have paid in advance, when due to the FIRE DISTRICT, the monthly payments or the Annual Fee from the previously appropriated funds. (1) The FIRE DISTRICT shall invoice the CITY at least thirty (30) days in advance of any scheduled monthly payment. Payment of all invoices under this Agreement shall be due and -7- I payable thirty (30) days from the date of invoice (hereinafter referred to as "due date"). 2 Invoices and general notices shall be sent to the CITY at: 3 City of Vernon 4305 Santa Fe Avenue 4 Vernon, CA 90058 5 Attention : Carlos Fandino, City Administrator 6 Payments shall be sent to the FIRE DISTRICT at: 7 Los Angeles County Fire Department P. O. Box 54740 $ Los Angeles, CA 90054-0740 9 General notices shall be sent to the FIRE DISTRICT at: 10 Fire Chief Daryl L. Osby 11 Los Angeles County Fire Department 12 1320 North Eastern Avenue Los Angeles, CA 90063-3294 13 Either party shall notify the other, in writing, of an address change. 14 (J) If the commencement date of services is in the middle of any month, the pro rats 15 share for that month and full payment for the following month shall be paid in advance. The 16 pro rats monthly share shall be calculated as follows: 17 Divide the Annual Fee by 365 days (daily rate) and multiply 18 the daily rate by the number of days remaining in the month 19 as of the commencement date of services. 20 (K) Interest shall be added to any payment invoiced by the FIRE DISTRICT and that is 21 received by the FIRE DISTRICT more than fifteen (15) calendar days after the due date (late 22 payment). The interest rate on any late payment shall be established as the prevailing prime 23 lending rate for Bank of America, or any successor financial institution, as of the first day 24 payment is late. The period for computing this interest shall commence the day following the 25 payment due date and end the date of receipt of payment by the FIRE DISTRICT. 26 The interest payment shall be computed as follows: 27 28 No of Days Late X Prime Lending Rate X $ Amount of = Late Payment Interest Charge 365 Days Payment -8- 2 3 4 5 Mj 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (L) The Annual Fee in this Agreement is based upon current CITY boundaries and service requirements. During the term of this Agreement, should the CITY annex any area from which the FIRE DISTRICT does not receive property taxes (such as from a non -FIRE DISTRICT - served city), staffing levels shall be adjusted to adequately serve the annexed area and the CITY's Annual Fee shall be adjusted accordingly as determined by the FIRE DISTRICT and reviewed by the CITY. (M) All revenues generated from fees established or implemented by the FIRE DISTRICT, such as fire prevention fees, shall be FIRE DISTRICT revenues with the exception of any applicable paramedic on-board/advanced life support (ALS) fees which will be passed through to the CITY by the FIRE DISTRICT via credits on the CITY's monthly invoices. Any revenue generated by fees that the CITY charges as the administering agency for the CITY's Hazardous Materials Release Response Plan and Inventory program and through a CITY - operated emergency medical transportation program in arrangement with a private ambulance firm would remain CITY revenues. Fees of any nature collected by CITY on behalf of the FIRE DISTRICT shall be passed -through to the FIRE DISTRICT by the CITY as FIRE DISTRICT revenues. The CITY shall be authorized to retain a five percent (5%) administrative charge for any fees collected by the CITY on behalf of the FIRE DISTRICT. Any fees charged and collected by the CITY subsequent to the commencement date of services shall remain as revenues of the CITY provided that such fees are not identified as fees for FIRE DISTRICT services. The FIRE DISTRICT shall be authorized to retain a five percent (5%) administrative charge for any fees collected by the FIRE DISTRICT on behalf of the CITY. Excluding any State, Federal, or judicially mandated programs or fees, any fees established by the FIRE DISTRICT to be imposed in the CITY after the commencement date of services shall require the prior approval of the City Council. Neither the FIRE DISTRICT nor the CITY shall be legally obligated to collect fees on behalf of the other party. In the event that an incident occurs within the CITY while this Agreement is in effect during which the FIRE DISTRICT may be required to deploy a substantial number of FIRE DISTRICT apparatus and personnel to such incident as determined by the FIRE DISTRICT, to -9- 3 11 5 6 7 8 9 10 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the extent authorized by law, the FIRE DISTRICT reserves the right to pursue cost recovery within its sole discretion against the party that caused the incident but not against the CITY. Costs recovered by the FIRE DISTRICT for CITY -paid resources (as detailed in Schedule 2 herein) deployed on such an incident within the CITY, less the cost of the FIRE DISTRICT's recovery efforts, shall be credited to the CITY. In the event the CITY were to pursue cost recovery for FIRE DISTRICT resources deployed to an incident within the CITY to which the FIRE DISTRICT deploys a substantial number of apparatus and personnel, to the extent authorized by law, the CITY shall promptly pay to the FIRE DISTRICT all such FIRE DISTRICT costs recovered by the CITY less the cost of the CITY's recovery efforts. Costs for FIRE DISTRICT resources paid for by the CITY through this Agreement as detailed on Schedule 2 herein and deployed to such an incident shall not be recoverable by the FIRE DISTRICT from the CITY. Neither the FIRE DISTRICT nor the CITY shall be legally obligated to seek cost recovery on behalf of the other party. (N) In the event that a billing/payment dispute arises between the FIRE DISTRICT and the CITY, the parties will negotiate in good faith to resolve the dispute and the following procedures will be taken to resolve the dispute: (1) The dispute will be specified, in writing, and presented to the FIRE DISTRICT's Chief Deputy of Business Operations if a CITY dispute, or to the CITY ADMINISTRATOR if a FIRE DISTRICT dispute, within thirty (30) days of the receipt of a disputed invoice or disputed payment. The CITY shall pay in full any disputed invoice "under protest." (2) The FIRE DISTRICT and the CITY shall meet and confer in good faith to expeditiously resolve the dispute. If the FIRE DISTRICT and the CITY cannot fully resolve the dispute within ninety (90) days of receipt of written notification of this dispute (impasse), the impasse will be sent to an independent arbitrator for resolution. Said arbitrator shall be selected jointly by the CITY and the FIRE DISTRICT within forty-five (45) days of impasse and shall be paid for equally by the CITY and the FIRE DISTRICT. If the FIRE DISTRICT and the CITY cannot agree on an arbitrator, each party shall, at its own expense, retain an arbitrator within thirty (30) days after the jointly selected arbitrator should have been selected. These I two arbitrators will, within thirty (30) days of their retention, mutually select a third arbitrator. 2 The mutually agreed -upon arbitrator will resolve the matter within thirty (30) days after his/her 3 selection. The FIRE DISTRICT and the CITY shall share equally the cost of the third 4 arbitrator. The arbitrator's resolution of the impasse shall be final and binding. 5 (3) If the FIRE DISTRICT prevails in arbitration, all money owed and not paid to 6 the FIRE DISTRICT will be forwarded to the mailing address identified in Section III, 7 Subsection (1), herein, within thirty (30) calendar days from the date of the issuance of the 8 arbitrator's decision. In addition, the CITY will be assessed and pay the interest payment 9 amount for a late payment as calculated in Section III, Subsection (K) of this Agreement. 10 (4) If the CITY prevails in arbitration and has paid the FIRE DISTRICT the 11 disputed amount, a refund to the CITY will be forwarded to the mailing address identified in 12 Section 111, Subsection (1), herein, within thirty (30) calendar days from the date of the issuance 13 of the arbitrator's decision. In addition, the FIRE DISTRICT will pay to the CITY an interest 14 payment, as calculated for late payments in Section III, Subsection (K) of this Agreement. 15 (5) Each party is required to pay its own legal fees associated with such arbitration 16 and is not entitled to recovery of those fees from the other party. 17 (0) CITY understands and agrees that in the event the CITY becomes delinquent or 18 defaults in its Annual Fee payment to the FIRE DISTRICT for FIRE DISTRICT service, the 19 County Auditor -Controller is authorized, at the direction of FIRE DISTRICT, to withhold CITY's 20 unencumbered annual property tax revenue in an amount equal to the outstanding payment for 21 FIRE DISTRICT Service and credit the withheld amounts to the FIRE DISTRICTS revenue 22 account. FIRE DISTRICT shall comply with the procedures in County Fiscal Manual section 23 10.2.12, "Procedures for Collection of Accounts Receivable for Services Performed for Cities 24 and Special Districts" for collecting CITY's delinquent or defaulted Annual Fee payments. 25 Such withholding by the Auditor -Controller shall continue until such time as CITY resumes 26 payment to the FIRE DISTRICT directly and all delinquent or defaulted Annual Fee payments 27 11 have been recovered. 28 (P) The FIRE DISTRICT shall credit to the CITY's Annual Fee billing the cost expended 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 )y the CITY to fulfill the requirements of Section VII, Subsection (C), paragraph (12), Health nsurance, herein, in the invoice subsequent to the FIRE DISTRICT's receipt of cost iocumentation. The CITY shall present documentation satisfactory to the FIRE DISTRICT of he amount expended prior to credit being made. (Q) Vacation, and sick benefit days, as provided for in Section VII, Subsection (C), 3aragraphs (6) and (7) herein and as detailed on Schedules 8, 9, 11, and 12 attached hereto and made a part hereof, shall be charged to the CITY and shall be paid in thirty-six (36) equal monthly payments which shall be a separate and distinct charge added to the monthly invoice for the Annual Fee commencing with the first month's Annual Fee invoice or as soon as practicable after the finalization of these Schedules. Such charges will be excluded from the Fee Limitation calculation. SECTION IV. EQUIPMENT FURNITURE FURNISHINGS, AND EXPENDABLE EQUIPMENT/FIRE APPARATUS AND EQUIPMENT (A) On the commencement date of services, the CITY shall transfer to the FIRE DISTRICT all fire apparatus, vehicles, fire equipment, and fire station furnishings, furniture, equipment and expendable tools incidental to fire station operations, as inventoried and identified by the FIRE DISTRICT in writing, and listed in Schedules 5 and 6 attached hereto. Items not listed in Schedules 5 and 6, shall not be transferred to the FIRE DISTRICT and will remain with the CITY. (B) All right, title, and interest in said CITY apparatus and vehicles shall be conveyed to FIRE DISTRICT free and clear of any encumbrances. The CITY shall be responsible for any and all outstanding loans or liens against said apparatus and vehicles existing as of the date of conveyance. All right, title and interest of any apparatus for which the CITY is currently leasing shall be conveyed to the District FIRE DISTRICT free and clear of any encumbrances upon the termination of the lease(s). If the CITY does not avail itself of the ability to purchase, and thus does not retain ownership of, the vehicle(s) at the termination of the lease(s), the CITY shall be responsible for the cost of new replacement apparatus to be placed in service in the CITY. The replacement cost of the apparatus shall be added to the CITY's Annual Fee invoices to be -12- I paid in twelve (12) equal monthly installments. 2 (C) All fire apparatus, vehicles, and related apparatus/vehicular equipment transferred 3 to the FIRE DISTRICT by the CITY shall be in good working order. The CITY shall pay for any 4 fire apparatus and vehicle repairs necessary due to deferred or deficient maintenance. Prior to 5 the commencement date of services, the FIRE DISTRICT shall inspect all such fire apparatus 6 and vehicles and identify any repairs required due to deferred or deficient maintenance. The 7 FIRE DISTRICT shall add the cost for such repairs to the conversion costs and modify 8 Schedule 4 accordingly. 9 SECTION V. FIRE STATIONS 10 (A) Upon the commencement date of services, CITY Fire Stations identified on I I Schedule 3 attached hereto and made a part hereof shall be used and occupied by the FIRE 12 DISTRICT. In the event that during the term of this Agreement the CITY and FIRE DISTRICT 13 mutually agree to staff a new fire station facility, the staffing levels in Schedule 2 of this 14 Agreement will be updated as necessary and Schedule 3 will be updated accordingly. All 15 terms and conditions contained in this Agreement applicable to the lease and maintenance of 16 CITY fire stations shall apply to the new fire station. 17 (B) This Agreement constitutes a lease whereby the CITY shall lease to the FIRE 18 DISTRICT the CITY Fire Stations as identified on Schedule 3 herein for one dollar ($1) 19 annually per station. Fire Stations 76 and 77 shall be used for the purpose of providing fire 20 protection and emergency medical and related services as described herein. 21 (C) The CITY represents and warrants that it has performed all environmental cleanup 22 of hazardous materials at all CITY Fire Station sites identified on Schedule 3 as required by all 23 applicable Federal, State, and local laws as detailed in Section Vill, Subsection (C) herein. 24 The CITY represents and warrants that the CITY has, as federally mandated, at its own 25 expense, properly removed and replaced, if applicable, all underground fuel tanks and all other 26 environmental hazards from all CITY Fire Station sites identified on Schedule 3 in accordance 27 with all applicable Federal, State, and local requirements and standards. The FIRE DISTRICT 28 1 assumes no responsibility for any and all contamination or environmental damage, including -13- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 personal injury or property damage, or liability of any nature whatsoever arising from said fuel tanks or their removal. The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT from any claims, liabilities, damages, costs, or expenses of any nature whatsoever related to any fuel tanks, and related ancillary equipment, located at the CITY Fire Station sites prior to the commencement date of services under this Agreement. (D) The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT for any liability, cost, expense, claims, or damages arising from any contamination or environmental damage, including personal injury or property damage of any kind whatsoever at or adjacent to the CITY Fire Station sites in any way related to asbestos, if any, at any of the CITY Fire Station sites, or in any way related to hazardous materials or dangerous conditions caused or created or contributed to by the CITY prior to the commencement date of services at any of the CITY Fire Station sites. (E) The FIRE DISTRICT shall be responsible for utility payments related solely to the FIRE DISTRICTs use of the CITY Fire Stations. In the event any of the CITY Fire Stations' utility connections are shared jointly by others, an equitable formula to determine sharing of utility costs shall be set forth in a Memorandum of Understanding, included herein as Schedule 13, attached hereto and made a part hereof entered into by the CITY and the FIRE DISTRICT and executed by the CITY ADMINISTRATOR and FIRE CHIEF of the FIRE DISTRICT, respectively, prior to the commencement date of services or as soon as practicable thereafter. (F) The FIRE DISTRICT shall inspect the CITY Fire Stations prior to acceptance and occupancy. After the FIRE DISTRICT's acceptance of the CITY Fire Stations, the FIRE DISTRICT shall be responsible for minor and routine station repairs as described in this Section. (1) The FIRE DISTRICT shall perform all routine, day-to-day maintenance, and minor repairs (collectively referred to as "routine repairs") on the CITY Fire Stations leased from the CITY identified on Schedule 3. The FIRE DISTRICT shall be responsible for routine repairs not to exceed $60,000 for each of the CITY Fire Stations during the first year after the commencement date of services of this Agreement (the FIRE DISTRICT's maximum share); -14- I for the second through fifth years of this Agreement after the commencement date of services, 2 the FIRE DISTRICT's maximum share for routine repairs for each of the CITY Fire Stations 3 shall be as follows: 4 Year 2 $65,000 5 Year $70,000 6 Year 4 $75,000 7 Year 5 $80,000 8 (2) The FIRE DISTRICT shall notify the CITY in writing if the total cost for routine 9 repairs for CITY Fire Stations in any one year is anticipated to exceed the FIRE DISTRICT's 10 maximum share for that year in accordance with Subsection (F) herein. If the FIRE DISTRICT 11 expends less than the FIRE DISTRICT's maximum share on the CITY Fire Stations in any 12 year, any amount less than the FIRE DISTRICT's maximum share for the CITY Fire Stations 13 shall not be carried forward from year to year. Routine repairs and minor remodeling shall 14 include but not be limited to the following: repair or replacement of apparatus room doors; 15 floor replacement; ceiling replacement; incidental plumbing and electrical repairs; heating and 16 air conditioning repairs; exhaust fan replacement; and minor remodeling such as shower 17 refurbishment, installation of stainless steel countertops, and additional cabinets for offices 18 and/or lockers that do not exceed $100,000 per project. All routine repairs or portions thereof 19 in excess of the FIRE DISTRICT's maximum annual share for CITY Fire Stations shall be the 20 responsibility of the CITY. The FIRE DISTRICT may elect to replace or upgrade appliances or 21 furnishings at any of the CITY Fire Stations at its own expense. The CITY shall not be 22 responsible for any such upgrades or replacements, and such upgrades and replacements 23 shall not reduce the FIRE DISTRICT's maximum share provided above, unless the items being 24 replaced are no longer functioning or repairable at a reasonable cost as determined by the 25 FIRE DISTRICT, in which event such costs incurred by the FIRE DISTRICT shall reduce the 26 FIRE DISTRICT's maximum share. Any proposed modifications to the exterior of any of the 27 CITY's fire stations shall require advance written approval of the CITY ADMINISTRATOR. 28 (3) Any non -routine repairs, defined as repairs in excess of $100,000, hereinafter -r 5- 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall be referred to as "major repairs" and shall be identified, in writing, by the FIRE DISTRICT and presented to the CITY. Major repairs shall be undertaken by the CITY within twelve (12) months of the FIRE DISTRICT's notification to the CITY, or other time period as mutually agreed upon by the FIRE CHIEF of the FIRE DISTRICT and the CITY ADMINISTRATOR, unless said major repair is deemed an emergency, hereinafter referred to as "emergency major repair." In the event of a dispute regarding the existence of major repairs, the general arbitration procedures stated in Section III, Subsection (N) shall be utilized. Emergency major repairs shall be defined as conditions that if left unrepaired would compromise the health, welfare, or security of the fire station inhabitants or the public, as reasonably determined by the FIRE DISTRICT. The FIRE DISTRICT shall commence emergency major repairs immediately and make reasonable effort to notify the CITY's designated emergency contact person. The CITY shall provide the FIRE DISTRICT with the name and telephone number of a designated contact person for such emergency major repairs, which may occur after-hours. The FIRE DISTRICT will undertake the emergency major repairs and invoice the CITY for the costs of such repairs. The CITY shall be invoiced for one -twelfth (1/12) of the cost of such repairs monthly for a period of twelve (12) months. All invoices for emergency major repairs undertaken by the FIRE DISTRICT shall be due and payable thirty (30) days from the date of invoice and shall be subject to the terms contained in Section III, Subsections (K) and (N) herein. (4) The FIRE CHIEF of the FIRE DISTRICT may authorize, with the written approval of the CITY, improvements to any of the CITY Fire Stations for the FIRE DISTRICT's benefit at no cost to the CITY. Such improvements shall not be subject to the FIRE DISTRICT's maximum share provisions as contained herein, and FIRE DISTRICT's maximum share shall not be reduced by the costs of any such improvements. (G) Without limiting each party's indemnification of the other and during the term of this Agreement, each party agrees to maintain the programs of insurance as set forth below. Each party shall retain the option of satisfying its insurance obligations herein through use of a program of commercial or self-insurance coverages, or any combination thereof. Each party's -16- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 insurance shall be primary to and not contributing with any insurance or self-insurance programs maintained by the other, and shall be maintained at each party's own expense. (1) The CITY shall maintain: General Liability insurance (written on ISO policy form CG 00 01 or its equivalent) with limits of not less than $1 million per occurrence and $2 million aggregate; Workers Compensation insurance to meet statutory requirements, and including Employers' Liability coverage with limits of not less than $1 million each; Professional Liability covering liability arising from any error, omission, negligent or wrongful act of the CITY with limits of not less than $1 million per occurrence and $2 million aggregate; and Property Coverage providing Special form ("all-risk") coverage in an amount equivalent to the full replacement value of the CITY Fire Stations and applying to CITY- owned and leased real property. The CITY agrees to name the FIRE DISTRICT as an additional insured on its insurance policies. (2) The FIRE DISTRICT shall maintain: General Liability insurance (written on ISO policy form CG 00 01 or its equivalent) with limits of not less than $1 million per occurrence and $2 million aggregate; Automobile Liability insurance (written on ISO policy form CA 00 01 or its equivalent) with a limit of liability of not less than $1 million for each accident; Workers Compensation insurance to meet statutory requirements, and including Employers' Liability coverage with limits of not less than $1 million each incident; and Professional Liability covering liability arising from any error, omission, negligent or wrongful act of the FIRE DISTRICT with limits of not less than $1 million per occurrence and $2 million aggregate. The FIRE DISTRICT agrees to name the CITY as an additional insured on its insurance policies. (H) The FIRE DISTRICT shall not be liable for any damages to any of the CITY Fire Stations which results from any seismic events, natural disasters, civil disturbances, or acts of God. Should any such event occur that makes any of the CITY fire stations uninhabitable and/or non -operational, the CITY shall immediately find temporary quarters for the FIRE DISTRICT to operate out of until the CITY can repair the affected CITY fire station(s). (1) The FIRE DISTRICT and the CITY, respectively, shall be fully responsible for any repairs or any damages arising from the intentional or negligent acts of their respective -17- 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Dersonnel. Disputes regarding implementation of this provision shall be resolved pursuant to Section III, Subsection (N). SECTION VI. INDEMNIFICATION Except as specifically otherwise provided in this Agreement, neither party shall be liable for the negligent or wrongful acts of the other in the performance of this Agreement. (A) The CITY agrees to indemnify, defend, and hold harmless the FIRE DISTRICT and the County of Los Angeles, hereinafter referred to as "COUNTY", their elected and appointed officials, officers, agents, and employees from any and all liability and expenses, including defense costs and legal fees, arising from or connected with claims and lawsuits arising from the negligent or wrongful acts of the CITY in the performance of this Agreement including any matters relating to the separation from CITY service by the CITY employees transferring to the FIRE DISTRICT as specified on Schedules 7 and 10 herein. (B) The FIRE DISTRICT agrees to indemnify, defend, and hold harmless the CITY, its elected and appointed officials, agents, officers, and employees from any and all liability and expenses, including defense costs and legal fees, arising from or connected with claims and lawsuits arising from the negligent or wrongful acts of the FIRE DISTRICT in the performance of this Agreement. SECTION VII. PERSONNEL (A) SWORN EMPLOYEES (1) Appointment - Subject to the provisions of the California Government Code, Section 1031 and the Los Angeles County Code Section 6.02.040, the FIRE DISTRICT agrees to appoint, without further civil service examination, those CITY firefighter series employees, hereinafter referred to as "sworn employees," specked on Schedule 7, attached hereto and made a part hereof, who have successfully completed six (6) months service with the CITY, exclusive of temporary or reserve fire fighters. Sworn employees' service with the CITY must include actual firefighting experience in a permanent fire fighter position. The date of hire that establishes the sworn CITY employees' continuous service date in a safety capacity with the CITY shall be utilized for purposes of the mandatory retirement age for transferring safety -is- I employees. 2 (2) Probation - All CITY sworn employees on probation will remain on probation until 3 completing the FIRE DISTRICT probationary period and requirements. 4 (3) Positions - CITY sworn employees qualified pursuant to this Section Vil are 5 fully identified on Schedule 7 attached hereto and are subject to the terms and conditions of 6 this Agreement. CITY sworn employees shall be employed by the FIRE DISTRICT in the 7 number and status as follows: 8 Number Fire District Status 9 9 Captain 10 11 Fire Fighter Specialist 11 Remaining Fire Fighter 12 The actual number of transferring CITY employees employed by the FIRE DISTRICT 13 as a Fire Fighter will be based on the number of transferring employees at the time of 14 transition to FIRE DISTRICT service. 15 The CITY shall designate sworn employees to be assigned to the Captain, Fire 16 Fighter Specialist, and Fire Fighter positions indicated above. Any CITY designated employee 17 shall be eligible for the assigned position if the employee has held the position being 18 designated to or a higher position in the service of the CITY. A duly authorized representative 19 from the Vernon Firefighter's Association, Local 2312 (VFA) and the Vernon Fire Management 20 Association (VFMA) shall approve, in writing, the appointment of the personnel designated to 21 the ranks of Captain and Fire Fighter Specialist as listed on Schedule 7 attached. Once 22 approved by the VFA and VFMA, these designations shall become final and not subject to 23 change unless a CITY sworn employee designated on the list does not transfer to the FIRE 24 DISTRICT. The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT from 25 any claims, liabilities, damages, costs, or expenses of any nature whatsoever related to the 26 designation of transferring employees' ranks by the CITY. 27 (4) Firefiahfing Experience - CITY sworn employees to be assigned to the position of 28 Fire Captain shall have a minimum of five (5) years' firefighting experience. The CITY -19- 21 3 4 represents and warrants that those employees assigned Fire Captain positions have a minimum of five (5) years' firefighting experience. (5) Driving Skills - All CITY sworn employees who are to be assigned fire apparatus operation responsibilities as Fire Fighter Specialists will be tested and trained, as may be 5 required by the FIRE DISTRICT. Any CITY sworn employee who does not initially qualify in 6 fire apparatus operations prior to the commencement date of services will be assigned other 7 duties. After being provided training by the FIRE DISTRICT, transferring Fire Fighter 8 Specialists will be required to pass a fire apparatus operations test. Fire Fighter Specialists 9 who do not pass the fire apparatus operations test may be demoted at the sole discretion of 10 the FIRE DISTRICT. 11 (6) Driver License - As a condition of employment, all CITY sworn employees will be 12 required to have a Class C Driver License with fire fighter endorsements as the minimum 13 standard driver license obtained from their state of residence. If the employees' state of 14 residence does not issue a firefighter endorsement, the employee shall acquire a commercial 15 license appropriate to the vehicle being driven. No employee shall have license restrictions 16 which would prevent him/her from performing his/her employment duties. 17 (7) EMT-1 Training - Sworn members of the FIRE DISTRICT are required to be 18 certified as Emergency Medical Technician I (EMT-1). The CITY certifies that all CITY sworn 19 employees transferring to the FIRE DISTRICT shall have current EMT-1 certification, current 20 continuing education (CE), and certified skills (CS) testing. Current CE shall be defined as the 21 equivalent of one (1) hour of CE for each month that has elapsed since the last recertification 22 date. Current CS shall be defined as twelve (12) skills tests during a 24-month skills cycle. 23 The CITY shall reimburse the FIRE DISTRICT for any costs incurred by the FIRE DISTRICT 24 as a result of non-compliance by any CITY employee of the requirements herein. In addition, 25 all transferring CITY paramedics who desire to transfer to the FIRE DISTRICT as a paramedic 26 must complete 24 hours a year, or 48 hours during their 2-year cycle of paramedic CE, 27 including skills testing, and the FIRE DISTRICT's re -activation class which consists of up to 28 three (3) days of classroom and five (5) or more shifts of internship (i.e. ride-alongs) on a FIRE -20- 2 3 4 5 6 7 1 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DISTRICT paramedic squad. Any transferring paramedic who does not successfully pass this re -activation class and/or who has any pending action against them by the County's Emergency Medical Services Authority, or the State's Local Emergency Medical Services Agency would be ineligible to function as a paramedic with the FIRE DISTRICT. At the time of transition to the FIRE DISTRICT, all transferring employees shall provide documentation certifying that all CE and CS are up-to-date and completed. (8) Seniority - This Agreement will result in the creation of forty-one (41) additional FIRE DISTRICT sworn positions. More than forty-one (41) sworn employees may be transferring from the CITY to the FIRE DISTRICT. Pursuant to Section 53292 of the California Government Code and except as specified in Section VII, Subsection (C), paragraph (10) herein, so as not to impair the seniority rights of FIRE DISTRICT sworn employees, as a result of the forty-one (41) newly created sworn positions, only forty-one (41) CITY sworn employees with the most CITY Fire Department continuous service time will receive FIRE DISTRICT seniority rights and COUNTY seniority. In the event any two or more transferring CITY employees have the same continuous service date with the CITY Fire Department, the CITY shall use whatever method currently utilized by the CITY to determine the manner in which the seniority for those affected employees shall be established. FIRE DISTRICT seniority is principally used for transfer bidding rights and, for these forty-one (41) positions, will be based on continuous service time in the firefighter series with the CITY's Fire Department. COUNTY seniority, which as defined in Los Angeles County Civil Service Rule 2.15 as "continuous service," is principally used for purposes of determining the order of layoff or reduction. Also as defined in Section 6.04.040 of the Los Angeles County Code, "continuous service" is principally used for purposes of determining rights to some types of paid leave. For these forty-one (41) positions, continuous service will include all continuous service time with the CITY, including any continuous non -permanent time. The assigned FIRE DISTRICT and COUNTY seniority dates for any remaining sworn employees will be the commencement date of services with the FIRE DISTRICT. They will be placed on the FIRE DISTRICT seniority list and also assigned a COUNTY continuous -21- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 service date in order of their relative service time with the CITY. All CITY and FIRE DISTRICT seniority will be considered for all purposes, except for those individuals beyond the forty-one (41) additional sworn positions forwhich CITY seniority shall not count for purposes of bidding rights, vacation schedules, and to determine the order of layoff or reduction. As those CITY sworn employees with full FIRE DISTRICT and COUNTY seniority rights leave FIRE DISTRICT service, any remaining sworn employees will be assimilated into full FIRE DISTRICT and COUNTY seniority status based on their time in service as sworn CITY/FIRE DISTRICT employees, with the exception of those employees who fall under the provision of Section VII, Subsection (C), paragraph (10) herein. (9) Promotional Exams - All non -probationary transferring sworn employees shall be immediately eligible for promotional examination within the FIRE DISTRICT. All time in rank as a sworn CITY and/or FIRE DISTRICT employee shall be considered for purposes of determining eligibility for promotional examination. (10) Longevity Bonus -For purposes of determining eligibility for the FIRE DISTRICT's Fire Fighter longevity bonus for those CITY employees blanketed -in to FIRE DISTRICT in the Fire Fighter classification, all continuous CITY service time in the Fire Fighter or successive promotional classifications shall be deemed as fulling the required aggregate service time for longevity bonus entitlement, except as provided in Section VII, Subsection (C), paragraph (10) herein. (11) Training Records —The CITY will provide the FIRE DISTRICT with complete training records of all CITY sworn employees to be transferred to the FIRE DISTRICT pursuant to this Agreement. (B) NON -SWORN EMPLOYEES (1) Appointment— The FIRE DISTRICT may agree to appoint without further civil service examination non -Fire Fighter series employees, hereinafter referred to as "non -sworn employees", who have successfully completed six (6) months continuous service with the CITY and who shall be listed on Schedule 10, attached hereto and made a part hereof. All non- -22- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 sworn employees shall successfully complete a probationary period consistent with Los Angeles County Civil Service Rules. (2) Seniority - Since non -sworn positions are not being created as a result of this annexation, the FIRE DISTRICT and COUNTY seniority date for all transferring non -sworn CITY employees, which is primarily used for the purpose of determining the order of layoff or reduction, shall be the commencement date of services. (C) ALL EMPLOYEES (1) Medical Exam & Background Investigation.- Prior to the commencement date of services, as a condition of the FIRE DISTRICT employment, each CITY employee must be medically qualified by a FIRE DISTRICT -administered physical examination, which includes a drug screening component, and must pass the FIRE DISTRICT's background investigation. Any CITY employee who is on medical leave of absence on the commencement date of services shall be blanketed into FIRE DISTRICT if he/she passes the required medical examination and background investigation upon termination of medical leave. The FIRE DISTRICT retains the right to not accept any CITY employee in its sole discretion upon completion of the employee's medical exam and background investigation. In such case, the CITY employee's rights, obligations and status as a CITY employee shall be dictated by CITY rules and regulations. (2) Salary Step Placement - For the purpose of determining an employee's FIRE DISTRICT salary step placement, "CITY salary" shall be defined as all monthly earnings that are eligible towards CITY retirement credit, excluding any compensation for unused benefit days or holidays, uniform allowances, and all overtime earnings. The employee's initial salary step placement shall not be less than his/her CITY salary as defined in this Section VII, Subsection (C), paragraph 2. Paramedic bonuses shall be excluded from "CITY salary" for those employees who transfer to the FIRE DISTRICT into a "Fire Fighter" position. Any transferring employees who are assigned to "Fire Fighter Paramedic" positions will be entitled to receive the applicable FIRE DISTRICT paramedic bonus. -23- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Paramedic bonuses will be included in the "CITY salary' for those employees who transfer to the FIRE DISTRICT into a "Fire Fighter Specialist" or "Captain" position pursuant to this Section VII, Subsection (A), paragraph (3) and who are receiving a paramedic bonus in the CITY at the time of transfer to the FIRE DISTRICT. In the event any employee transferring to the FIRE DISTRICT into a "Fire Fighter Specialist" or"Captain" position is subsequently assigned to a paramedic position in the FIRE DISTRICT, the employee's salary will be recalculated to eliminate the amount of his CITY paramedic bonus and to include the applicable FIRE DISTRICT paramedic bonus. All other bonuses, other than paramedic bonuses, will be considered by the FIRE DISTRICT in its discretion for inclusion in the determination of an employee's FIRE DISTRICT salary placement but is not guaranteed. The ultimate decision regarding the inclusion of bonuses rests with the FIRE DISTRICT in its discretion. (a) Sworn Employees - Except as provided in Section VII, Subsection (C), paragraphs (9) and (10), all continuous service time accrued as a sworn employee in the service of the CITY shall be considered for the purpose of determining COUNTY employee benefits including sick leave, vacation, step placement on the applicable COUNTY salary schedule, and the pensionability of their Flexible Benefits income. Salary step placement of sworn employees shall be within the salary range of the FIRE DISTRICT position assigned, but no less than the salary step that provides for the same salary or next higher salary as the sworn employee's CITY salary as defined in this Section VII, Subsection (C), paragraph 2. Subsequent salary step advances, if applicable, shall be one (1) year from the last step advance with the CITY or in accordance with COUNTY policy, whichever is sooner. In the event that the sworn employee's CITY salary is higher than the top step of the COUNTY salary range, the sworn employee will be placed on the top step of that range, but shall be Y-Rated in order to maintain the same level of base salary as the employee had with the CITY. A sworn CITY employee's Y- Rate shall remain in effect until the regular salary including any bonuses exceeds the Y-Rate amount. Y-Rated employees shall not be eligible for bonuses in addition to their Y-Rated salary. Sworn employees who have accrued CITY -24- 2 3 4 5 6 7 8 9 t0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 service time in a non-swom position shall have such non-swom service time considered for purposes of determining COUNTY seniority date and benefits, but not salary step placement. (b) Non -Sworn Employees - Except as provided in Section VII, Subsection (C), paragraphs (9) and (10), all continuous service time accrued as a non -sworn employee in the service of the CITY shall be considered for all purposes except for bidding rights for work and vacation schedules, and to determine the order of layoff or reduction. Salary placement of non -sworn employees shall be within the salary range of the FIRE DISTRICT position assigned, and at the salary step that provides for the same salary or next higher salary as the employee's CITY salary as of the commencement date of services through this Agreement. In the event that the employee's CITY salary is higher than the top step of the COUNTY salary range, the employee will be placed on the top step of that range, but shall be Y-Rated so that no loss in pay occurs. (3) Taxes - This Agreement does not exempt transferring CITY employees from applicable payroll taxes required of new employees, such as Health Insurance Tax (HIT). (4) Uniforms - CITY issued uniforms and safety equipment that meet FIRE DISTRICT standards shall be transferred to the FIRE DISTRICT with the transferring employees. CITY uniforms will be supplemented by FIRE DISTRICT issued uniforms and/or safety equipment necessary to meet FIRE DISTRICT requirements. The CITY shall assume all costs for supplementing uniforms and safety equipment that do not meet FIRE DISTRICT standards. Such costs shall be included on Schedule 4, as soon as available. Subsequent uniform issues will be as provided for in the current Memorandum of Understanding for the respective employee representation units entered into between the County of Los Angeles and the certified employee organizations, if applicable. (5) Personnel/Medical/rime Records - As a condition of FIRE DISTRICT employment, CITY employees must consent to the transfer of complete original personnel and employment medical records to the FIRE DISTRICT. The CITY will provide the FIRE DISTRICT with complete and original personnel and employment medical records of all CITY personnel to be transferred pursuant to this Agreement, including any employee's complete -25- Workers' Compensation files, all claims for disability compensation, and all additional 2 documentation related to open claims which remain ongoing after the date of transfer of the 3 CITY employees to the FIRE DISTRICT, which shall be the commencement date of services. 4 In addition, the CITY will provide the FIRE DISTRICT with a minimum of one (1) year's time 5 records of "hours worked" prior to the commencement date of services for all CITY personnel 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 be transferred pursuant to this Agreement. Each transferring employee shall certify to the FIRE DISTRICT the completeness of his/her personnel file. (6) Vacation Shifts/Days — The CITY shall pay to the FIRE DISTRICT in the manner set forth in Section III, Subsection (P) herein for transferred vacation benefit shifts/days for transferring employees at the CITY's salary rates in effect on the commencement date of services. The CITY shall transfer in whole hours all vacation benefit shifts/days an employee is entitled to in CITY employment to a maximum of twenty (20) vacation days, Le one hundred sixty (160) hours for employees assigned to a 40-hour work schedule, or ten (10) shifts, Le, two hundred forty (240) hours for employees assigned to a 24- hour shift schedule, whichever is applicable. Vacation shifts/days are outlined in Schedule 8 for sworn personnel and Schedule 11 for non -sworn personnel, which are attached hereto and made a part hereof. CITY salary rates for reimbursement to the FIRE DISTRICT are defined in this Section VII, Subsection (C), paragraph (2). Transferring CITY employees shall accrue vacation benefits each pay period. Pay periods are the 1st day of each month to the 15u' day of that month, and the 16' day of each month to the last day of that month. The amount of vacation benefits accrued by each transferring CITY employee shall be based on the transferring employees' continuous service time as a sworn employee of the CITY. Transferring CITY employees may use their accrued vacation benefits during the pay period immediately following the pay period in which the benefits are accrued, notwithstanding the employees' assigned COUNTY seniority. (7) Sick Shifts/Days — The CITY shall pay to the FIRE DISTRICT in the manner set forth in Section 111, Subsection (P) herein for transferred sick benefit shifts/days for transferring employees at the CITY's salary rates in effect on the commencement date of services. The '0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY shall transfer in whole hours all sick benefit shifts/days an employee is entitled to in CITY employment to a maximum of twenty (20) sick days, Le, one -hundred sixty (160) hours for employees assigned to a 40-hour work schedule, or ten (10) shifts, Le, two hundred forty (240) hours for employees assigned to a 24-hour shift schedule, whichever is applicable. Sick benefit shifts/days are outlined in Schedule 9 for sworn personnel and Schedule 12 for non - sworn personnel, which are attached hereto and made a part hereof. The CITY salary rates for reimbursement to the FIRE DISTRICT are defined in this Section VII, Subsection (C), paragraph (2). (8) Waiver of Accumulated Benefits — The FIRE DISTRICT shall not assume any responsibility for personnel benefits or CITY obligations accrued by CITY employees prior to the commencement date of services, except as expressly provided for in this Agreement. The CITY shall provide a waiver for said accumulated benefits executed in favor of the FIRE DISTRICT by each CITY employee as a condition of employment by the FIRE DISTRICT. It is further understood that employees subject to this Agreement shall become eligible for vacation, sick, and holiday time while in FIRE DISTRICT service only as provided in the FIRE DISTRICT Salary Resolution, Los Angeles County Salary Ordinance, or as designated in Section VII herein. (9) Los Angeles County Employees Retirement Association a) All sworn employees subject to this Agreement will, on the first day of the month following the date they are appointed to a position in the FIRE DISTRICT, become members of the Los Angeles County Employees Retirement Association (LACERA) Plan C for Safety Members or any other Safety Plan as permitted by the County Employees' Retirement Law of 1937 (CERL) and the Public Employees' Pension Reform Act of 2013 (PEPRA). b) All non -sworn employees subject to this Agreement will, on the first day of the month following the date they are appointed to a position in the FIRE DISTRICT, become members of Plan G for General Members or one (1) of the other non -safety LACERA plans available at the time of the commencement date of services pursuant to the provisions of CERL and PEPRA. .27- 1 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c) Service performed by such sworn and non -sworn personnel while employees of the CITY shall not be credited as retirement service with LACERA, and except as provided in California Government Code Sections 31836.1 and 31836.2, shall not be counted for the purpose of discontinuing contributions after thirty (30) years of continuous service pursuant to Govemment Code Sections 31625.2 and 31664, to the extent applicable, and shall not be counted for the purpose of determining health insurance premiums charged to LACERA I retirees. (10) Retirement from Public Employees Retirement System — Transferring CITY employees would be required to leave retirement contributions on deposit with the California Public Employees Retirement System (CaIPERS) and establish reciprocity with LACERA, limiting the FIRE DISTRICT's retirement benefit costs. The transferring employees' LACERA contribution rates would be based on their age upon entering the CaIPERS system. The FIRE DISTRICT's rate structure for salary and employee benefits includes a component for retirement costs for positions staffing CITY stations; therefore, the FIRE DISTRICT cost would be offset. At the time of retirement, a reciprocal member would receive retirement benefits from both agencies based on the benefits of reciprocity, such as adding service credit under each system to determine eligibility to retire. Any CITY employee who retires from CaIPERS prior to the commencement date of services will not be accepted for FIRE DISTRICT In the event a transferring employee opts to retire from CaIPERS at any time while in the employment of the FIRE DISTRICT, such employee shall forfeit all of his/her continuous service time with the CITY, including all service time with the CITY Fire Department, for purposes of determining FIRE DISTRICT and COUNTY seniority and COUNTY employee benefits and step placement pursuant to Section VII, Subsection (A), paragraphs (8) and (10), and Section VII, Subsection (C), paragraph (2). The FIRE DISTRICT and COUNTY seniority date for any employee retiring from CaIPERS pursuant to this paragraph (10) of Subsection (C) of Section VII shall immediately become the commencement date of services, any longevity bonus received by the employee which is based on continuous -28- 1 2 3' 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 time with the CITY will be eliminated from the employee's salary, any Y-Rated salary will be eliminated, and the employee's salary will be adjusted and based solely on the employee's FIRE DISTRICT rank and total time as an employee with the FIRE DISTRICT. Such employees must also be medically qualified by a FIRE DISTRICT -administered physical examination as required of newly hired fire fighters. (11) Workers' Compensation - California Labor Code Sections shall govern Workers' Compensation benefits for all transferring CITY employees who sustain industrial injuries. Notwithstanding Section 5500.5 et seq. of the California Labor Code, the CITY agrees to reimburse the FIRE DISTRICT for the FIRE DISTRICT's proportionate share of all medical, legal, administrative, and any other indemnity costs for which the FIRE DISTRICT shall be liable for those industrial injuries apportionable in whole or in part to employees' employment with the CITY. The CITY's responsibility as provided for herein shall not be affected by any change in Federal or State law. The CITY and the FIRE DISTRICT shall cooperate in the ongoing management of any Workers' Compensation claims pending, filed, during the time CITY personnel are employed by the FIRE DISTRICT by providing such information as is necessary for the CITY and/or the FIRE DISTRICT to appropriately manage a Workers' Compensation claim filed by a FIRE DISTRICT employee previously employed by the CITY. The CITY shall notify the FIRE DISTRICT of any claims pending, filed, or denied; and any temporary or permanent work restrictions imposed with respect to an employee who transfers from CITY employment to FIRE DISTRICT employment. The FIRE DISTRICT shall notify the CITY of any claims pending, filed, or denied; and any temporary or permanent work restrictions imposed with respect to an employee who has a pending Workers' Compensation claim involving the CITY or who asserts a Workers' Compensation claim during employment with the FIRE DISTRICT upon which the CITY is potentially liable in whole or in part. The CITY shall be responsible for adjusting and paying all costs related to those claims which have been filed or are pending as of the effective date of this Agreement. This responsibility of the CITY is subject to contribution from the FIRE DISTRICT for any post -transfer injury or exacerbation of an existing injury -29- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 already at issue in a pending Workers' Compensation claim involving the CITY at the time of transfer. Pursuant to Subsection C, Paragraph S, the CITY shall provide Workers' Compensation related files on all employees transferring to the FIRE DISTRICT. (12) Health Insurance — The CITY shall continue to provide the existing coverage of paid medical and dental insurance for all employees transferring to the FIRE DISTRICT for one (1) full calendar month after the commencement date of services or, for those employees on medical leave with the CITY on the commencement date of services, for at least one (1) full calendar month after the effective date of their blanketing into the FIRE DISTRICT. The FIRE DISTRICT shall reimburse the CITY as specified in Section III, Subsection (0). (13) Deferred Compensation Plans - Pursuant to Section 6.02.040 of the Los Angeles County Code, CITY employees transferring to the FIRE DISTRICT shall be eligible for immediate participation in the COUNTY employees' deferred compensation plans for which they may be eligible depending upon their transferred rank, unless such immediate eligibility is otherwise prohibited by Federal or California statute or regulation. (14) Marriage and Birth Certificates — For purposes of completing the background investigations pursuant to Section VII, Subsection (C), paragraph (1) herein and for verification of eligibility of health insurance coverage, prior to the commencement date of services as determined by the FIRE DISTRICT, all transferring CITY employees will be required to provide copies of their marriage certificates and the birth certificates for themselves and all dependents who will be covered under their health insurance benefits. (15) FIRE DISTRICT Employees' Rights - The employment rights of existing FIRE DISTRICT employees shall not be impaired by this Agreement. // SECTION Vill. ENVIRONMENTAL QUALITY CONTROL (A) The FIRE DISTRICT shall be responsible to comply with the provisions of the California Environmental Quality Act of 1970 (CEQA), insofar as the same may apply to annexation proceedings required in annexing the CITY to the FIRE DISTRICT. The FIRE DISTRICT agrees to hold the CITY free and harmless from any and all claims, demands, or -3a 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 judgments arising out of the FIRE DISTRICT's failure to comply with the provisions of CEQA, relative to annexation procedures. (B) Prior to the commencement date of services, the CITY shall have a Cal -OSHA Registered Environmental Assessor perform a Phase I Site Assessment and Building Asbestos Survey and, if subsequently required, a Phase II Site Assessment on all CITY Fire Station facilities to be occupied by the FIRE DISTRICT pursuant to Schedule 3 attached hereto. All Site Assessments and related reports shall be reviewed, approved, and accepted by the FIRE DISTRICT. (C) The CITY shall, at its sole expense, mitigate and abate all environmental hazards (if any) at the CITY Fire Station sites prior to the commencement date of services and provide evidence to the satisfaction of the FIRE DISTRICT that all recommended measures have been completed and that all applicable laws and requirements have been complied with. Any residual contamination or environmental damage from conditions on or adjacent to CITY Fire Stations which existed before the commencement date of services but which are discovered after the commencement date of services, shall be the responsibility of the CITY. (D) The FIRE DISTRICT shall, at its sole expense, mitigate and abate all environmental damage (if any) caused by the FIRE DISTRICT or its agents at any of the CITY Fire Stations after the commencement date of services. (E) Prior to occupancy of the CITY Fire Stations by the FIRE DISTRICT, the FIRE DISTRICT shall inspect the facilities and identify all hazardous materials stored at the facilities for which the CITY shall be responsible for removal. The CITY shall remove all identified hazardous materials prior to FIRE DISTRICT occupancy of the CITY Fire Stations. If, after FIRE DISTRICT occupancy of the CITY Fire Stations, stored hazardous materials are discovered by the FIRE DISTRICT which were not previously identified during the above inspection, the CITY shall remove said materials within thirty (30) days after written notice by the FIRE DISTRICT to the CITY, or the FIRE DISTRICT may remove the materials and invoice the CITY for the costs of such removal. In the event such hazardous materials pose an immediate danger to human health or the environment as determined by the FIRE DISTRICT, -31- 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I such materials shall be removed immediately by the CITY upon notification by the FIRE DISTRICT to the CITY. SECTION IX. HAZARDOUS MATERIALS RELEASE RESPONSE PLAN AND INVENTORY (A) CITY will continue to act as the administering agency for the CITY's Hazardous Materials Release Response Plan and Inventory, California Health and Safety Code Chapter 5.95, Sections 25500 — 25545, hereinafter referred to as the "Program" during the term of this Agreement. (B) The CITY shall retain all fees collected in the administration of the Program as provided by State law. (C) When the FIRE DISTRICT's Health/Hazardous Materials Emergency Response Teams respond to a hazardous materials incident in the CITY, the FIRE DISTRICT will subsequently invoice the CITY on an as -call basis for the costs associated with the response team unit(s) responded. Payments by the CITY of invoices for all such hazardous materials emergency incident response team responses shall be made pursuant to the provisions of Section III herein. SECTION X. ADOPTION OF LOS ANGELES COUNTY FIRE CODE Pursuant to Los Angeles County Fire Code - Title 32, Sections 10000.1 and 10000.2, and California Health and Safety Code Section 13869, as may be subsequently amended, upon annexation of the CITY to the FIRE DISTRICT, the County of Los Angeles Fire Code - Title 32, including any subsequent amendments to such code, shall be enforced in the CITY by the FIRE DISTRICT. By ordinance, the CITY shall adopt the County of Los Angeles Fire Code — Title 32 as of the commencement date of services. This ordinance will adopt all existing CITY amendments to the County of Los Angeles Fire Code — Title 32 as a separate attachment. The FIRE DISTRICT will enforce applicable amendments specific to the CITY. Where differences occur between the Los Angeles County Fire Code — Title 32 and the amendments adopted by the CITY, the CITY amendments will take precedence unless an impracticality of enforcement is determined by the FIRE DISTRICT in its sole discretion, in -32- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15' 16 17 18 19 20 21 22 23 24 25 26 27 28 which case the FIRE DISTRICT and the CITY shall work towards establishing a mutually agreeable resolution. SECTION XI. MODIFICATION OF SCHEDULES (A) With the exception of Schedule 2, all schedules attached hereto and incorporated herein by reference will be subject to modification by mutual agreement of the CITY ADMINISTRATOR and FIRE CHIEF of the FIRE DISTRICT as needed after the date of approval of this Agreement by both parties. (B) The staffing levels as indicated on Schedule 2 may be subject to modification by mutual written agreement of the CITY COUNCIL and FIRE CHIEF of the FIRE DISTRICT. Any such modification of staffing levels may cause an adjustment in the determination of the Annual Fee as specified in Section 11, Subsection (L) herein. SECTION XII. WITHDRAWAL (A) In the event the CITY terminates this Agreement and withdraws from the FIRE DISTRICT at any time subsequent to the Initial Ten -Year Term, per the provisions of Section I, herein, the FIRE DISTRICT and the CITY agree that: (1) The lease on the fire stations shall terminate and the FIRE DISTRICT shall vacate the CITY Fire Stations on the effective date of withdrawal except as provided for in a subsequent written agreement as may be entered into by the CITY and the FIRE DISTRICT. (2) The FIRE DISTRICT shall return to the CITY, fire apparatus, vehicles and related fire apparatus equipment of a comparable type, condition, and age, in the quantity and type as described on Schedule 5 as of the commencement date of services. (3) The FIRE DISTRICT shall return to the CITY Fire Station equipment, furniture, tools, and furnishings of a comparable type and condition as of the commencement date of services, which are essential to the operation of the fire station facilities and are detailed in Schedule 6. (4) As to any apparatus, vehicles, equipment, tools, furniture, furnishings, or other personal property for which a monetary or in -kind credit was given to the CITY upon the -33- 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 effective date of this Agreement, the FIRE DISTRICT will not be obligated in any manner to return comparable items to the CITY at the date of withdrawal of this Agreement. (B) In the event of the termination of the Agreement by either party as provided herein, the FIRE DISTRICT and the CITY agree to enter into separate and further agreements to address the specific details of termination not addressed in this Agreement. SECTION XIII . GOOD FAITH AND FAIR DEALING The FIRE DISTRICT and the CITY covenant and warrant to act in good faith and fair dealing regarding the performance, administration, and interpretation of this Agreement. SECTION XIV. GENERAL PROVISIONS (A) Severability — In the event that any provision herein contained is held to be invalid, void, or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect, impair or invalidate any other provision contained herein. If any such provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. (B) Waiver — No breach of any provision hereof can be waived unless in writing. Waiver of any one breach of any provision shall not be deemed to be a waiver of any breach of the same or any other provision hereof. (C) Entire Agreement — This Agreement constitutes the entire agreement between the parties relating to the subject matter of this Agreement, and supersedes any prior understanding whether oral or written and may be modified only by further written agreement between the parties hereto. The non -enforceability, invalidity or illegality of any provision of this Agreement shall not render the other provisions thereof unenforceable, invalid or illegal. MrA I IN WITNESS WHEREOF, the CITY, by majority vote of its City Council, has caused this 2 Agreement to be executed by its Mayor and which execution has been attested to by its Clerk; 3 pursuant to action by a majority vote of the Board of Supervisors, as governing body of the 4 FIRE DISTRICT, the Chair has executed this Agreement on behalf of the FIRE DISTRICT and 5 which execution has been attested to by its Clerk. 6 CONSOLIDATED FIRE PROTECTION CITY OF VERNON DISTRICT OF LOS ANGELES COUNTY 7 8 By By 9 Chair, Board of Supervisors Melissa Ybarra, Mayor 10 11 DATE DATE 12 13 ATTEST: ATTEST: 14 CELIA ZAVALA 15 Executive Officer -Clerk of 16 The Board of Supervisors 17 By By 18 Deputy Deborah Harrington, Interim City Clerk 19 20 APPROVED AS TO FORM: APPROVED AS TO FORM: 21 22 MARY C. WICKHAM County Counsel 23 24 By By 25 Christina Angeles, Principal Deputy Hema Patel, City Attorney 26 27 28 -35- FULLY EXECUTED AGREEMENT CONTRACTOR: Vernon Fire Manaaement Association(VFMA) CONTRACT PURPOSE: Side Letter of Agreement CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE ❑ COMPETITIVE SELECTION & NOTICED RIFT, ❑ COMPETITIVE BID & NOTICED INVITATION TO BID ❑ EXEMPT FROM COMPETITIVE PROCESS (APPROVAL ATTACHED) ❑ SERVICES ❑ MATERIALS ❑ BUDGETED O NOT BUDGETED TOTAL CONTRACT VALUE: Charge Acct. No(s) Amendment Value $ ❑ Contract is an Amendment to Eden Contract No. (if applicable) RESPONSIBLE DEPARTMENT PERSON: Michael Earl PHONE: ext. 239 AUTHORIZATION: M"Approved by Council on 10/01/2019 (Check one and attach Resolution No. 201942 (if applicable) supporting documentation) ❑ Approved by City Administrator on ❑ Approved by Finance Director on (Please Follow In Order) (1) Responsible Department Person Certifies compliance with Competitive Bidding and Purchasing Ordinance, obtains approval from City Council/City Administrator/Finance Director, and obtains approval as to form from the City Attorney's Office, assembles two (2) originals of contract, obtains proper signatures from contractor/consultant pursuant to the signature requirements, obtains insurance & bond documents, notifies IT to remove related RFP/bid notice from the City's website (if applicable), enters contract into Eden once routing process is complete. Initials Date (2) Liability and Claims 1 Approves insurance and sureties, if bonds required. Oln i'�"' ` (del (% (3) Finance (Purchasing) Checks compliance with Competitive Bidding & Living Wage Ordinances and reflected in current budget. (4) City Attorney Approves contract as to form. (5)City Signatory Signs document on behalf of City. (6) City Clerk Attests signatures, numbers and files contract, enters contract documents (executed contract, supporting documentation, insurance and bonds, etc.) into L. ertiche, transmits duplicate original to contractor/consultant, notifies Responsible Department Person, and notifies any `consultant" of duties to file Form 700, if applicable. N /.04 ems �. Ytr I'�2tfl�i ►o Ik�� Rar. W017 TRANSMITTAL COMMUNICATION of e� zlt, riari OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 9005s Telephone (323) 583-8811 October 24, 2019 Vernon Fire Management Association Attn: Todd Painton, President 4305 Santa Fe Avenue Vernon, CA 90058 Re: Vernon Fire Management Association — Side Letter Agreement Dear Mr. Painton: Please find enclosed a copy of the fully executed original Memorandum of Understanding approved by City Council on October 1, 2019, through Resolution No. 201942. If you have any questions regarding this matter, please call Michael Earl, at (323) 583-8811 ext. 239. Very[ yours, Deborah R. Juarez Records Management Assistant Enclosure c: Michael Earl Jim Enriquez Carlos Fandino Joaquin Leon Resolution No. 2019-42 Agreement No. 19-116 Excfusivel Industrid SIDE LETTER OF AGREEMENT City of Vernon and Vernon Fire Management Association This Side Letter of Agreement ("Agreement") is entered by and between the City of Vernon ("City") and the Vernon Fire Management Association ("VFMA") with respect to the following: WHEREAS, VFMA is the recognized employee organization for employees employed by the City's Fire Department in the classifications of Assistant Fire Chief, Fire Battalion Chief, Administrative Fire Battalion Chief, and Fire Marshal; and WHEREAS, VFMA and the City have been actively engaged in negotiation for a successor Memorandum of Understanding ("MOU") to the one that expired June 30, 2019; and WHEREAS, the City's elected Council voted to contract for firefighting and related services with the Consolidated Fire District of the County of Los Angeles ("the District"); and WHEREAS, following the vote of the City's Council to contract for firefighting services, the City and VFMA ceased negotiating a successor MOU and have been negotiating the impacts and effect of the City's decision to contract for firefighting services; and WHEREAS, the City and VFMA have reached an understanding with respect to the rights and entitlements of its members should the City enter into a contract for firefighting and related services with the District and wish to memorialize that agreement herein. NOW THEREFORE, the City and VFMA agree to amend their MOU as follows: Term of Agreement and MOU: The term of the MOU shall be extended until the earlier of either (1) the commencement date of service by the District, in which case no further MOU will be necessary; or (2) until such time as it is reasonably determined that contracting for firefighting service with LA County will not proceed, in which case the provisions of this side letter shall be null and void and the parties shall reconvene negotiations for a successor MOLL; or (3) August 1, 2020, in which use the parties shall either mutually agree to further extend this side letter agreement and the MOU or, if no such agreement is reached to extend the side letter agreement and the MOU, the provisions of this side letter shall be null and void and the parties shall reconvene negotiations for a successor MOU. Any VFMA represented employee who chooses to retire prior to the commencement date of service by the District shall be entitled to the payoffs and other benefits to which they are entitled under the July 1, 2016 through June 30, 2019 MOU, except as specifically amended by this side letter. 2. Retiree Medical and Dental: For those VFMA represented employees who transfer to the District with twenty (20) or more years of continuous service with the City of Vernon Fire Department as of the date of transfer (a list of qualifying employees is attached hereto as Exhibit "A"), the following shall apply: a. If the employee separates from the District after age 50 without becoming entitled to a retiree medical contribution in the County's retiree medical health plan, the City shall pay that former employee a retiree medical/dental benefit reimbursement allowance in an amount equal to the actual cost of medical and dental insurance for the employee and his/her spouse, not to exceed $1,100 per month. The reimbursements shall occur quarterly and the employee shall present, quarterty, proof of medical and/or dental insurance coverage and premiums. For purposes of this transitional benefit, qualifying employees (as listed on Exhibit "A") shall have a vested right to the City retiree medical benefit as set forth herein upon transition to employment with the District. b. If the employee separates from the District and qualifies for a District/County retiree medical contribution, the City's payment of a medical/dental insurance benefit for the employee and his/her spouse of up to $1,100 per month will be offset by the amount of benefit the employee is eligible to receive from the District/County. For example, if the cost of the medical and dental insurance premiums for the employee and spouse cost $1050/month, and the employee qualifies for a County/District contribution of $400/month, the City's reimbursement shall be $650/month ($400+$650=$1050). c. Upon reaching the age of sixty-five (65), the employee and/or eligible spouse shall apply for Medicare coverage. The City shall pay up to 100% of the cost of a Medicare supplemental medical and dental insurance plan not to exceed $1,100 per month. Reimbursement does not include the cost of Medicare premiums and/or copays, but rather a Medicare supplement medical and dental insurance plan. Any amount provided to the employee shall be offset by the amount the employee is eligible to receive from the District/County. 3. Overtime: Article Five, Section 1 (C) of the MOU is amended to read as follows: C. Vacancies To Be Filled Any vacancy, whether permanent or as a result of any type of leave, in the Battalion Chief rank may be backfilled at the discretion of the Fire Chief. 4. Personnel. Ranks. and Salaries: By no later than October 31, 2019, the parties shall reach agreement on the names, City Rank, Transfer Rank, City Seniority Date, and City Salary information contained in Schedule 7 of the agreement between the City and the District, which may be amended by the parties due only to the separation of an employees) prior to transition. The determination of which ranks of VFMA members transfer to the District is determined using time in rank (or a higher rank). For example, the last promoted Captain will be the first bumped down to a classification previously held by that Captain. 5. Transfer of Vacation And Sick Leave Hours: By November 30, 2019, VFMA members who desire to transfer to the District shall designate the number of available, accrued vacation and sick leave hours to be transferred, up to 240 hours of vacation leave and 240 hours of sick leave. Any employee failing to make a designation, will be deemed to have designated the maximum number of available vacation and sick leave hours to be transferred. 6. Payout of Remaining Sick Leave and Vacation Leave Hours: Any accrued vacation leave not being transferred to the District shall be paid to employees at their regular hourty rate at the time of separation. Any remaining sick leave hours not being transferred to the District shall be forfeited; provided, however, that those employees with 20 years or more of continuous service on the date that firefighting and related services are transferred to the District shall be compensated for all unused sick leave at the time of separation at 50% of the employee's then current regular hourly rate of pay, pursuant to Article Ten, Section 11(B) of the MOU. 7. Employees Deemed Ineligible for Transfer: Any VFMA represented employee deemed ineligible to transfer by the District will be separated from City effective the date of commencement of service by the District, and the employee would be entitled to any payoffs or other benefits to which they are entitled under the MOU or pursuant to law. The City agrees that it will certify as qualified for industrial disability retirement any member of VFMA who is rejected from employment by the District due to a legitimate industrial injury or other industrial medical condition, and who meets applicable CalPERS criteria for Industrial Disability Retirement, upon submission of the required paperwork (DWC-1, etc.). The parties agree that if a disability retirement is not granted, the City is under no obligation to reinstate the employee to employment with the City as the employee's position has ceased to exist. Any VFMA member who is on leave pursuant to Labor Code section 4850 on the date of transition and who is not being immediately offered a position by the District will continue to receive their Section 4850 payments for the duration of their statutory entitlement (up to one year) under the law. However, such individuals will not be considered employees of the City beyond the date of transition. VFMA employees who are off on a non -industrial injury or illness leave or who have exhausted their Labor Code 4850 benefits on the date of transition will be laid off from the City as of the date of transition, and shall be paid for their accrued leaves and other benefits per the terms of the MOLL. 8. Terms of Agreement For Services Between The District and City Incorporated Herein: The parties acknowledge that the Agreement for Services between the City and the District (attached hereto as Exhibit "C") contains terms and provisions that directly impact the determination of who and under what terms employees shall transition to the District and the wages, hours and other terns and conditions of employment of those transitioning employees. To that end, the terms of the Agreement for Services between the City and The District are hereby incorporated by reference as though set forth in full and shall not change in any manner that materially alters the determination of who and under what conditions an employee transitions to the District and the wages, hours and other terms and conditions of employment of VFMA members that transition. [Signatures next page] FOR THE C�F VERNON /t %o/ Zy�� Carlos R. Fandino, Jr., City inistrator Date ATTEST: APPROVED AS TO FORM: 2a na usm, IdAIM i41 K"Mid Senior. eputy City Attomey Lisa Pope, City Clerk VERNON FIRE MANAGEMENT ASSOCIATION T d P nton, Presidmt Date Todd Schomig, Vice President (411 v _ t o hq.'z' `� Craig Pel r, Secretary Date APPROVED AND ADOPTED RY CITY COUNCIL ON 0GrOM 1, 2019 PER RESOLUTION NO. 201�4_2 Exhibit A Employee Full Name Position Title Orig hire Yeare of Employee Signature PELTIER, CRAIG D FIRE BATTALION CHIEF 10/24/1988 30.8 SCHOENIG, TODD R FIRE BATTALION CHIEF V//1991 28.6 PAIMON, TODD S FIRE BATTALION CHIEF M211992 28.8 01 VFMA As of 9-24-2019 EXHIBIT A 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AGREEMENT FOR SERVICES BY AND BETWEEN THE CONSOLIDATED FIRE PROTECTION DISTRICT OF LOS ANGELES COUNTY AND THE CITY OF VERNON THIS AGREEMENT is made and entered into this _ day of by and between the Consolidated Fire Protection District of Los Angeles County, hereinafter referred to as the "FIRE DISTRICT," and the City of Vernon, hereinafter referred to as the WITNESSETH WHEREAS, the CITY has decided to contract with FIRE DISTRICT for fire protection, hazardous materials, emergency medical, and all related services as authorized by California Government Code Section 54981, and the FIRE DISTRICT is authorized to provide such services pursuant to California Health and Safety Code Section 13800, at. seq; WHEREAS, it is the desire of the CITY to receive regional fire protection services from the FIRE DISTRICT due to the benefits afforded by regional service delivery; and WHEREAS, it is the desire of the parties hereto to address, by this Agreement, all matters which are related to a contract for services to be provided to the CITY by the FIRE DISTRICT. SECTION I. AGREEMENT EFFECTIVE DATE AND TERM (A) The effective date of this Agreement shall be the date of approval by the Board of Supervisors of the County of Los Angeles as the governing body of the FIRE DISTRICT, which is , and this Agreement shall continue in effect until such time as this Agreement is terminated or otherwise renegotiated. (B) The provision of services by the FIRE DISTRICT to the CITY shall commence on the date stated in Schedule 1 established by the FIRE CHIEF of the FIRE DISTRICT, hereinafter referred to as "commencement date of services". (C) The date of annexation of the CITY to the FIRE DISTRICT shall be the date of recordation of annexation documents which shall be on or near the commencement date of -1- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (D) This Agreement shall remain in effect for a minimum often (10) years from the commencement date of services ("Initial Ten -Year Tenn"). Subsequent to this Initial Ten -Year Term, this Agreement shall be automatically renewed for one year periods. Either party may terminate this Agreement any time after the expiration of the Initial Ten -Year Term upon one year's written notice as provided in Subsection (E) of this Section I, subject to the terms and conditions of this Agreement- (E) Subsequent to the ninth (9) year of the Initial Ten -Year Term, the FIRE DISTRICT or the CITY may terminate this Agreement by giving at least one year's written notice to the other for termination of this Agreement and the CITY's detachment from the FIRE DISTRICT in accordance with this Section I. Notice shall be sent to the addresses listed in Section III, Subsection (1), herein, or as subsequently changed by either party in writing. (F) Should either party give written notice of its intent to terminate this Agreement, that party shall initiate detachment proceedings through the Local Agency Formation Commission (LAFCO). The party who terminates this Agreement, including any subsequent amendments, shall bear the cost of all fees associated with detachment of the CITY from the FIRE DISTRICT, unless CITY becomes delinquent or defaults in its Annual Fee payment to the FIRE DISTRICT for FIRE DISTRICT services pursuant to Section III, Subsection (0), in which instance CITY shall bear the costs. Such fees shall be defined as LAFCO fees, the State Board of Equalization fees, and any similar fees of this nature but shall not include any Board of Supervisors' or any CITY administrative fees or attomeys' fees. (G) A review of the Agreement terms may be initiated at any time by either party, upon five (5) days written notice to the other. Any modifications made to this Agreement shall be upon written consent of both parties. The parties agree to negotiate in good faith and deal fairly with respect to performance under this Agreement and with respect to any proposed modifications to this Agreement. SECTION If. SERVICES (A) Services to be provided by the FIRE DISTRICT to the CITY shall include fire protection, hazardous materials services, emergency medical services which include -2- 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 paramedic services, fire code and related code enforcement, fire cause and arson investigation, plus all FIRE DISTRICT support services including, but not limited to, supervision, dispatching, training, equipment maintenance, supplies, and procurement, collectively referred to as "Services." The CITY will not be charged for on -duty personnel reassigned from fire stations outside of the CITY to staff events in the CITY. The FIRE DISTRICT's cost for Fire Safety Officers (FSOs) or augmented staffing assigned to special events held in the CITY will be charged to the CITY for CITY -sponsored events or to non -CITY entities, whichever is the appropriate organization, as the cost for such augmented services is not included in the CITY's Annual Fee. (B) The power and authority relating to the provision of Services, the standards of performance, the discipline of personnel, and other matters related to the performance of such Services and control of personnel so employed by the FIRE DISTRICT shall be within the sole discretion of the FIRE DISTRICT. (C) The engine companies assigned to the CITY Fire Stations as listed on Schedule 3 attached hereto shall carry automatic external defibrillators, and all firefighting personnel shall be certified as Emergency Medical Technician-1. The minimum dairy staffing level in the CITY as indicated on Schedule 3 herein is as follows: one engine company staffed with three personnel (one fire captain, one fire fighter specialist and one fire fighter); one engine company and one truck company each staffed with four personnel, (one fire captain, one fire fighter specialist and two fire fighters); and one paramedic squad staffed with two fire fighter paramedics, for a total operations staffing of thirteen uniformed personnel on duty daily in the CITY. This staffing level may be modified by mutual agreement of the CITY COUNCIL and FIRE CHIEF of the FIRE DISTRICT pursuant to Section XI. (D) All code enforcement, plan check approval, and other fire prevention activities shall be in accordance with the County of Los Angeles Fire Code and FIRE DISTRICT ordinances, regulations, standards, policies and procedures, except as may be amended pursuant to Section X herein. (E) Transportation of a patient to a hospital in a medical emergency is not provided by -3- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the FIRE DISTRICT. Emergency medical transportation is provided under a County of Los Angeles contractual arrangement with a private ambulance company licensed to operate within Los Angeles County. If the CITY opts to continue to provide medical transportation in the CITY during the term of this Agreement, the CITY and FIRE DISTRICT will enter into a Memorandum of Understanding which will outline the CITY's responsibilities in the administration of its ambulance program, including the location of the housing of ambulance program's personnel and equipment. (F) The FIRE DISTRICT will participate in and support community emergency preparedness, education, training, and exercises at the reasonable request of and at no additional cost to the CITY. The CITY shall retain responsibility for the CITY's internal emergency management and related programs. (G) Without cost to the FIRE DISTRICT, the CITY shall, within the legal boundaries of the CITY, retain responsibility for providing a water system including fire hydrants capable of supplying adequate water fire Flow to the FIRE DISTRICT. The CITY shall ensure that the CITY's water purveyors provide adequate water and hydrants for fire protection purposes within the CITY without cost to the FIRE DISTRICT. (H) The FIRE DISTRICT shall annually inspect all fire hydrants within the CITY to ensure that fire hydrants are mechanically operable and capable of delivering water. The FIRE DISTRICT shall notify the CITY's water purveyors, in writing, of any maintenance requirements as soon as possible after such inspections and at any other times the FIRE DISTRICT becomes aware of maintenance or repair requirements. The FIRE DISTRICT shall not be liable to pay any CITY water purveyor for hydrant installation, use, repair, maintenance, or rental fees or any other related costs or expenses except if damage results from the FIRE DISTRICT'S negligent use of said fire hydrants. (1) The transference of applicable 9-1-1 calls to the FIRE DISTRICT shall be done immediately upon receipt by the CITY's Public Safety Answering Point (PSAP) and shall be performed without cost to the FIRE DISTRICT. The CITY shall be responsible for all costs associated with connecting ring -down circuits from its PSAP to the FIRE DISTRICT's circuit. K 3 4 5 6 7 8 9 t0 II 12 I3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (J) The FIRE DISTRICT shall provide to the CITY quarterly and annual statistical response information reports. The criteria utilized in the preparation of such reports shall be determined by the CITY ADMINISTRATOR and the FIRE DISTRICTs jurisdictional Assistant Fire Chief. (K) Nothing in this Agreement shall preclude the future expansion or relocation of the CITY'S Fire Stations referenced on Schedule 3 herein if such action is mutually agreed upon in writing by both the CITY and the FIRE DISTRICT's Fire Chief. (L) Any agreed -upon adjustments in staffing pursuant to Section XI, Subsection (B) herein may cause adjustments in the determination of the Annual Fee, as specified in Schedule 2 attached hereto and made a part hereof. SECTION III. ANNUAL FEE FOR SERVICES (A) The CITY shall pay an Annual Fee for FIRE DISTRICT Services, hereinafter referred to as "Annual Fee." As provided for in the California Heafth and Safety Code Section 13878, the FIRE DISTRICT shall be paid monthly, in advance, from funds of the CITY for the performance of the services referred to in Section 11, hereof. The Annual Fee shall be determined by the method specified in Schedule 2, attached hereto and made a part hereof. The CITY shall pay the FIRE DISTRICT one -twelfth (1112) of the estimated or actual Annual Fee monthly, in advance, on or before the first day of each month. The one-year period for payment of the Annual Fee is defined as July 1 through June 30, herein referred to as "Fiscal Year." (B) At least ninety (90) days prior to the commencement of each Fiscal Year, the FIRE DISTRICT shall submit a preliminary estimate of the Annual Fee ("Preliminary Annual Fee) for providing Services to the CITY for the ensuing fiscal year. The Preliminary Annual Fee shall include estimated costs of FIRE DISTRICT salary and employee benefits and overhead, and shall be used for billing purposes until actual cost information is available. (C) As soon as actual cost information is available, the FIRE DISTRICT shall provide the CITY a statement of the actual Annual Fee for providing Services during the current fiscal year. If the Annual Fee is less than the Preliminary Annual Fee, the FIRE DISTRICT shall -5- I credit the CITY for the difference, which amount shall be deducted from the first monthly 2 invoice and, if applicable, the following monthly invoices subsequent to the statement of the 3 Annual Fee. If the Annual Fee is greater than the Preliminary Annual Fee, the additional 4 amount due the FIRE DISTRICT will be paid by the CITY during the subsequent fiscal year as 5 follows: One -twelfth (1/12) of such additional Annual Fee amount due to the FIRE DISTRICT 6 shall be added and paid in each of the CITY's subsequent twelve (12) monthly payments. 7 (D) A limitation shall be placed on increases in the amount of Annual Fee to be paid by 8 the CITY each year, hereinafter referred to as "Annual Fee Limitation" For purposes of 9 calculation of the Annual Fee Limitation, the Annual Fee shall not include any conversion 10 costs, credits, or rebates of any kind. The Annual Fee Limitation shall be subject to annual 11 changes after the initial five-year period of this Agreement commencing with the 12 commencement date of services ("Initial Five -Year Period") as described below. During the 13 Initial Five -Year Period, the Annual Fee Limitation shall not exceed four percent (4%) per 14 Fiscal Year. At the conclusion of the Initial Five -Year Period, the FIRE DISTRICT will meet 15 with the CITY to discuss cost trends and increases that will impact the CITY's Annual Fee. 16 During the sixth year of this Agreement, the Annual Fee Limitation shall be the average of the 17 immediately preceding four years' percentage increases in the Annual Fee plus one percent 18 (1 %). During the seventh year of this Agreement and each subsequent Fiscal Year, the 19 Annual Fee Limitation shall be the average of the immediately preceding five years' 20 percentage increases in the Annual Fee plus one percent (1 %). 21 (E) In any year where the CITY's Annual Fee, as specified in Section III, Subsection (C) 22 hereinabove, exceeds the preceding Fiscal Year's Annual Fee plus the applicable Annual Fee 23 Limitation, hereinafter referred to as "Annual Fee Limitation Excess," payment of the Annual 24 Fee Limitation Excess shall be deferred to a subsequent future Fiscal Year(s) where the 25 increase in the Annual Fee for that Fiscal Year over the preceding Fiscal Year is less than the 26 Annual Fee Limitation. The Annual Fee Limitation Excess will be paid by the CITY in any 27 subsequent Fiscal Year(s) to the extent the Annual Fee increase in that Fiscal Year is less 28 than the Annual Fee Limitation for that Fiscal Year. One -twelfth (1/12) of such Annual Fee -6- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Limitation Excess shall be added and paid in each of the CITY's twelve (12) monthly payments for the subsequent Fiscal Year(s). In the event the CITY detaches from the FIRE DISTRICT, any unpaid Annual Fee Limitation Excess together with any outstanding Annual Fee payments due by the CITY as of the effective date of detachment shall be due and payable to the FIRE DISTRICT no later than the effective date of detachment. Should a credit be due the CITY from the FIRE DISTRICT, a refund shall be paid to the CITY no later than the effective date of detachment. (F) In addition to the Annual Fee, conversion costs as specified in Schedule 4 attached hereto and made a part hereof shall be charged to the CITY and shall be paid to the FIRE DISTRICT by the CITY in thirty-six (36) equal monthly payments. This amount shall be added to each monthly invoice for the Annual Fee commencing with the first month's Annual Fee invoice. Upon the final determination of the actual conversion costs as approved by the CITY ADMINISTRATOR and the FIRE CHIEF of the FIRE DISTRICT, the CITY's conversion cost balance will be adjusted as will all subsequent monthly invoices for the Annual Fee to reflect the actual conversion costs. - (G) The CITY shall pay all annexation processing fees by check directly to and upon request by the FIRE DISTRICT. Such fees are anticipated to be: State of California Board of Equalization $ 300.00 County of Los Angeles Local Agency Formation Commission $ 8,500.00 (H) Fire protection, hazardous materials, emergency medical, and all related services as set forth in Section 11, herein, shall not be performed by the FIRE DISTRICT hereunder unless the CITY shall: 1. Have available funds previously appropriated to cover the Annual Fee; and 2. Have paid in advance, when due to the FIRE DISTRICT, the monthly payments or the Annual Fee from the previously appropriated funds. (I) The FIRE DISTRICT shall invoice the CITY at least thirty (30) days in advance of any scheduled monthly payment. Payment of all invoices under this Agreement shall be due and -7- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 payable thirty (30) days from the date of invoice (hereinafter referred to as "due date"). Invoices and general notices shall be sent to the CITY at: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Carlos Fandino, City Administrator Payments shall be sent to the FIRE DISTRICT at: Los Angeles County Fire Department P. O. Box 54740 Los Angeles, CA 90054-0740 General notices shall be sent to the FIRE DISTRICT at: Fire Chief Daryl L. Osby Los Angeles County Fire Department 1320 North Eastern Avenue Los Angeles, CA 90063-3294 Either party shall notify the other, in writing, of an address change. (J) If the commencement date of services is in the middle of any month, the pro rata share for that month and full payment for the following month shall be paid in advance. The pro rata monthly share shall be calculated as follows: Divide the Annual Fee by 365 days (daily rate) and multiply the daily rate by the number of days remaining in the month as of the commencement date of services. (K) Interest shall be added to any payment invoiced by the FIRE DISTRICT and that is received by the FIRE DISTRICT more than fifteen (15) calendar days after the due date (late payment). The interest rate on any late payment shall be established as the prevailing prime lending rate for Bank of America, or any successor financial institution, as of the first day payment is late. The period for computing this interest shall commence the day following the payment due date and end the date of receipt of payment by the FIRE DISTRICT. The interest payment shall be computed as follows: No. of Days Late X Prime Lending Rate X $ Amount of = Late Payment Interest Charge 365 Days Payment -a- 1 2, 3 4 5i 6 7 8' 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (L) The Annual Fee in this Agreement is based upon current CITY boundaries and service requirements. During the term of this Agreement, should the CITY annex any area from which the FIRE DISTRICT does not receive property taxes (such as from a non -FIRE DISTRICT -served city), staffing levels shall be adjusted to adequately serve the annexed area and the CITY's Annual Fee shall be adjusted accordingly as determined by the FIRE DISTRICT and reviewed by the CITY. (M) All revenues generated from fees established or implemented by the FIRE DISTRICT, such as fire prevention fees, shall be FIRE DISTRICT revenues with the exception of any applicable paramedic on-board/advanced life support (ALS) fees which will be passed through to the CITY by the FIRE DISTRICT via credits on the CITY's monthly invoices. Any revenue generated by fees that the CITY charges as the administering agency for the CITY's Hazardous Materials Release Response Plan and Inventory program and through a CITY - operated emergency medical transportation program in arrangement with a private ambulance firm would remain CITY revenues. Fees of any nature collected by CITY on behalf of the FIRE DISTRICT shall be passed -through to the FIRE DISTRICT by the CITY as FIRE DISTRICT revenues. The CITY shall be authorized to retain a five percent (5%) administrative charge for any fees collected by the CITY on behalf of the FIRE DISTRICT. Any fees charged and collected by the CITY subsequent to the commencement date of services shall remain as revenues of the CITY provided that such fees are not identified as fees for FIRE DISTRICT services. The FIRE DISTRICT shall be authorized to retain a five percent (5%) administrative charge for any fees collected by the FIRE DISTRICT on behalf of the CITY. Excluding any State, Federal, or judicially mandated programs or fees, any fees established by the FIRE DISTRICT to be imposed in the CITY after the commencement date of services shall require the prior approval of the City Council. Neither the FIRE DISTRICT nor the CITY shall be legally obligated to collect fees on behalf of the other party. In the event that an incident occurs within the CITY while this Agreement is in effect during which the FIRE DISTRICT may be required to deploy a substantial number of FIRE DISTRICT apparatus and personnel to such incident as determined by the FIRE DISTRICT, to -9- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the extent authorized by law, the FIRE DISTRICT reserves the right to pursue cost recovery within its sole discretion against the party that caused the incident but not against the CITY. Costs recovered by the FIRE DISTRICT for CITY -paid resources (as detailed in Schedule 2 herein) deployed on such an incident within the CITY, less the cost of the FIRE DISTRICT's recovery efforts, shall be credited to the CITY. In the event the CITY were to pursue cost recovery for FIRE DISTRICT resources deployed to an incident within the CITY to which the FIRE DISTRICT deploys a substantial number of apparatus and personnel, to the extent authorized by law, the CITY shall promptly pay to the FIRE DISTRICT all such FIRE DISTRICT costs recovered by the CITY less the cost of the CITY's recovery efforts. Costs for FIRE DISTRICT resources paid for by the CITY through this Agreement as detailed on Schedule 2 herein and deployed to such an incident shall not be recoverable by the FIRE DISTRICT from the CITY. Neither the FIRE DISTRICT nor the CITY shall be legally obligated to seek cost recovery on behalf of the other party. (N) In the event that a billing/payment dispute arises between the FIRE DISTRICT and the CITY, the parties will negotiate in good faith to resolve the dispute and the following procedures will be taken to resolve the dispute: (1) The dispute will be specified, in writing, and presented to the FIRE DISTRICT's Chief Deputy of Business Operations if a CITY dispute, or to the CITY ADMINISTRATOR if a FIRE DISTRICT dispute, within thirty (30) days of the receipt of a disputed invoice or disputed payment. The CITY shall pay in full any disputed invoice "under protest." (2) The FIRE DISTRICT and the CITY shall meet and confer in good faith to expeditiously resolve the dispute. If the FIRE DISTRICT and the CITY cannot fully resolve the dispute within ninety (90) days of receipt of written notification of this dispute (impasse), the impasse will be sent to an independent arbitrator for resolution. Said arbitrator shall be selected jointly by the CITY and the FIRE DISTRICT within forty-five (45) days of impasse and shall be paid for equally by the CITY and the FIRE DISTRICT. If the FIRE DISTRICT and the CITY cannot agree on an arbitrator, each party shall, at its own expense, retain an arbitrator within thirty (30) days after the jointly selected arbitrator should have been selected. These -10- 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 two arbitrators will, within thirty (30) days of their retention, mutually select a third arbitrator. The mutually agreed -upon arbitrator will resolve the matter within thirty (30) days after his/her selection. The FIRE DISTRICT and the CITY shall share equally the cost of the third arbitrator. The arbitrator's resolution of the impasse shall be final and binding. (3) If the FIRE DISTRICT prevails in arbitration, all money owed and not paid to the FIRE DISTRICT will be forwarded to the mailing address identified in Section III, Subsection (1), herein, within thirty (30) calendar days from the date of the issuance of the arbitrator's decision. In addition, the CITY will be assessed and pay the interest payment amount for a late payment as calculated in Section 111, Subsection (K) of this Agreement. (4) If the CITY prevails in arbitration and has paid the FIRE DISTRICT the disputed amount, a refund to the CITY will be forwarded to the mailing address identified in Section III, Subsection (1), herein, within thirty (30) calendar days from the date of the issuance of the arbitrator's decision. In addition, the FIRE DISTRICT will pay to the CITY an interest payment, as calculated for late payments in Section III, Subsection (K) of this Agreement. (5) Each party is required to pay its own legal fees associated with such arbitration and is not entitled to recovery of those fees from the other party. (0) CITY understands and agrees that in the event the CITY becomes delinquent or defaults in its Annual Fee payment to the FIRE DISTRICT for FIRE DISTRICT service, the County Auditor -Controller is authorized, at the direction of FIRE DISTRICT, to withhold CITY's unencumbered annual property tax revenue in an amount equal to the outstanding payment for FIRE DISTRICT Service and credit the withheld amounts to the FIRE DISTRICT's revenue account. FIRE DISTRICT shall comply with the procedures in County Fiscal Manual section 10.2.12, "Procedures for Collection of Accounts Receivable for Services Performed for Cities and Special Districts" for collecting CITY's delinquent or defaulted Annual Fee payments. Such withholding by the Auditor -Controller shall continue until such time as CITY resumes payment to the FIRE DISTRICT directly and all delinquent or defaulted Annual Fee payments have been recovered. (P) The FIRE DISTRICT shall credit to the CITY's Annual Fee billing the cost expended _1y I by the CITY to full the requirements of Section VII, Subsection (C), paragraph (12), Health 2 Insurance, herein, in the invoice subsequent to the FIRE DISTRICTs receipt of cost 3 documentation. The CITY shall present documentation satisfactory to the FIRE DISTRICT of 4 the amount expended prior to credit being made. 5 (Q) Vacation and sick benefit days, as provided for in Section VII, Subsection (C), 6 paragraphs (6) and (7) herein and as detailed on Schedules 8, 9, 11, and 12 attached hereto 7 and made a part hereof, shall be charged to the CITY and shall be paid in thirty-six (36) equal 8 monthly payments which shall be a separate and distinct charge added to the monthly invoice 9 for the Annual Fee commencing with the first month's Annual Fee invoice or as soon as 10 practicable after the finalization of these Schedules. Such charges will be excluded from the I I Annual Fee Limitation calculation. 12 SECTION IV. EQUIPMENT, FURNITURE, FURNISHINGS, AND EXPENDABLE 13 EQUIPMENTIFIRE APPARATUS AND EQUIPMENT 14 (A) On the commencement date of services, the CITY shall transfer to the FIRE 15 DISTRICT all fire apparatus, vehicles, fire equipment, and fire station furnishings, furniture, 16 equipment and expendable tools incidental to fire station operations, as inventoried and 17 identified by the FIRE DISTRICT in writing, and listed in Schedules 5 and 6 attached hereto. 18 Items not listed in Schedules 5 and 6, shall not be transferred to the FIRE DISTRICT and will 19 remain with the CITY. 20 (B) All right, title, and interest in said CITY apparatus and vehicles shall be conveyed to 21 FIRE DISTRICT free and clear of any encumbrances. The CITY shall be responsible for any 22 and all outstanding loans or liens against said apparatus and vehicles existing as of the date of 23 conveyance. All right, title and interest of any apparatus for which the CITY is currently leasing 24 shall be conveyed to the District FIRE DISTRICT free and clear of any encumbrances upon the 25 termination of the lease(s). If the CITY does not avail itself of the ability to purchase, and thus 26 does not retain ownership of, the vehicle(s) at the termination of the lease(s), the CITY shall be 27 responsible for the cost of new replacement apparatus to be placed in service in the CITY. 28 The replacement cost of the apparatus shall be added to the CITY's Annual Fee invoices to be -12- I paid in twelve (12) equal monthly installments. 2 (C) All fire apparatus, vehicles, and related apparatus/vehicular equipment transferred 3 to the FIRE DISTRICT by the CITY shall be in good working order. The CITY shall pay for any 4 fire apparatus and vehicle repairs necessary due to deferred or deficient maintenance. Prior to 5 the commencement date of services, the FIRE DISTRICT shall inspect all such fire apparatus 6 and vehicles and identify any repairs required due to deferred or deficient maintenance. The 7 FIRE DISTRICT shall add the cost for such repairs to the conversion costs and modify 8 Schedule 4 accordingly. 9 SECTION V. FIRE STATIONS 10 (A) Upon the commencement date of services, CITY Fire Stations identified on 11 Schedule 3 attached hereto and made a part hereof shall be used and occupied by the FIRE 12 DISTRICT. In the event that during the tens of this Agreement the CITY and FIRE DISTRICT 13 mutually agree to staff a new fire station facility, the staffing levels in Schedule 2 of this 14 Agreement will be updated as necessary and Schedule 3 will be updated accordingly. All 15 terms and conditions contained in this Agreement applicable to the lease and maintenance of 16 CITY fire stations shall apply to the new fire station. 17 (B) This Agreement constitutes a lease whereby the CITY shall lease to the FIRE 18 DISTRICT the CITY Fire Stations as identified on Schedule 3 herein for one dollar ($1) 19 annually per station. Fire Stations 76 and 77 shall be used for the purpose of providing fire 20 protection and emergency medical and related services as described herein. The FIRE 21 DISTRICT may utilize CITY Fire Station 78 to house FIRE DISTRICT administrative staff and 22 reserve fire apparatus. All costs incurred by the FIRE DISTRICT for any modifications and/or 23 repairs to Fire Station 78 necessary for the purpose of accommodating the above uses shall 24 be at the FIRE DISTRICT's expense. The lease of Fire Station 78 may be terminated at the 25 FIRE DISTRICT's sole discretion with thirty (30) days written notice. 26 1 (C) The CITY represents and warrants that it has performed all environmental cleanup 27 of hazardous materials at all CITY Fire Station sites identified on Schedule 3 as required by all 28 applicable Federal, State, and local laws as detailed in Section Vill, Subsection (C) herein. -13- 2 3 4 5 6 7 8 9 t0 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 26 27 28 The CITY represents and warrants that the CITY has, as federally mandated, at its own expense, properly removed and replaced, if applicable, all underground fuel tanks and all other environmental hazards from all CITY Fire Station sites identified on Schedule 3 in accordance with all applicable Federal, State, and local requirements and standards. The FIRE DISTRICT assumes no responsibility for any and all contamination or environmental damage, including personal injury or property damage, or liability of any nature whatsoever arising from said fuel tanks or their removal. The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT from any claims, liabilities, damages, costs, or expenses of any nature whatsoever related to any fuel tanks, and related ancillary equipment, located at the CITY Fire Station sites prior to the commencement date of services under this Agreement. (D) The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT for any liability, cost, expense, claims, or damages arising from any contamination or environmental damage, including personal injury or property damage of any kind whatsoever at or adjacent to the CITY Fire Station sites in any way related to asbestos, if any, at any of the CITY Fire Station sites, or in any way related to hazardous materials or dangerous conditions caused or created or contributed to by the CITY prior to the commencement date of services at any of the CITY Fire Station sites. (E) The FIRE DISTRICT shall be responsible for utility payments related solely to the FIRE DISTRICT's use of the CITY Fire Stations. In the event any of the CITY Fire Stations' utility connections are shared jointly by others, an equitable formula to determine sharing of utility costs shall be set forth in a Memorandum of Understanding, included herein as Schedule 13, attached hereto and made a part hereof entered into by the CITY and the FIRE DISTRICT and executed by the CITY ADMINISTRATOR and FIRE CHIEF of the FIRE DISTRICT, respectively, prior to the commencement date of services or as soon as practicable thereafter. (F) The FIRE DISTRICT shall inspect the CITY Fire Stations prior to acceptance and occupancy. After the FIRE DISTRICT's acceptance of the CITY Fire Stations, the FIRE DISTRICT shall be responsible for minor and routine station repairs as described in this Section. .14. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (1) The FIRE DISTRICT shall perform all routine, day -today maintenance, and minor repairs (collectively referred to as "routine repairs") on the CITY Fire Stations leased from the CITY identified on Schedule 3. The FIRE DISTRICT shall be responsible for routine repairs not to exceed $60,000 for each of the CITY Fire Stations during the first year after the commencement date of services of this Agreement (the FIRE DISTRICT's maximum share); for the second through fifth years of this Agreement after the commencement date of services, the FIRE DISTRICT's maximum share for routine repairs for each of the CITY Fire Stations shall be as follows: Year 2 $65,000 Year $70,000 Year $75,000 Years $80,000 (2) The FIRE DISTRICT shall notify the CITY in writing if the total cost for routine repairs for CITY Fire Stations in any one year is anticipated to exceed the FIRE DISTRICT's maximum share for that year in accordance with Subsection (F) herein. If the FIRE DISTRICT expends less than the FIRE DISTRICT's maximum share on the CITY Fire Stations in any year, any amount less than the FIRE DISTRICTS maximum share for the CITY Fire Stations shall not be carried forward from year to year. Routine repairs and minor remodeling shall include but not be limited to the following: repair or replacement of apparatus room doors; floor replacement; ceiling replacement; incidental plumbing and electrical repairs; heating and air conditioning repairs; exhaust fan replacement; and minor remodeling such as shower refurbishment, installation of stainless steel countertops, and additional cabinets for offices and/or lockers that do not exceed $100,000 per project. All routine repairs or portions thereof in excess of the FIRE DISTRICT's maximum annual share for CITY Fire Stations shall be the responsibility of the CITY. The FIRE DISTRICT may elect to replace or upgrade appliances or furnishings at any of the CITY Fire Stations at its own expense. The CITY shall not be responsible for any such upgrades or replacements, and such upgrades and replacements shall not reduce the FIRE DISTRICT's maximum share provided above, unless the items being -15- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 replaced are no longer functioning or repairable at a reasonable cost as determined by the FIRE DISTRICT, in which event such costs incurred by the FIRE DISTRICT shall reduce the FIRE DISTRICT's maximum share. Any proposed modifications to the exterior of any of the CITY's fire stations shall require advance written approval of the CITY ADMINISTRATOR. (3) Any non -routine repairs, defined as repairs in excess of $100,000, hereinafter shall be referred to as "major repairs" and shall be identified, in writing, by the FIRE DISTRICT and presented to the CITY. Major repairs shall be undertaken by the CITY within twelve (12) months of the FIRE DISTRICT's notification to the CITY, or other time period as mutually agreed upon by the FIRE CHIEF of the FIRE DISTRICT and the CITY ADMINISTRATOR, unless said major repair is deemed an emergency, hereinafter referred to as "emergency major repair." In the event of a dispute regarding the existence of major repairs, the general arbitration procedures stated in Section III, Subsection (N) shall be utilized. Emergency major repairs shall be defined as conditions that if left unrepaired would compromise the health, welfare, or security of the fire station inhabitants or the public, as reasonably determined by the FIRE DISTRICT. The FIRE DISTRICT shall commence emergency major repairs immediately and make reasonable effort to notify the CITY's designated emergency contact person. The CITY shall provide the FIRE DISTRICT with the name and telephone number of a designated contact person for such emergency major repairs, which may occur after-hours. The FIRE DISTRICT will undertake the emergency major repairs and invoice the CITY for the costs of such repairs. The CITY shall be invoiced for one -twelfth (1112) of the cost of such repairs monthly for a period of twelve (12) months. All invoices for emergency major repairs undertaken by the FIRE DISTRICT shall be due and payable thirty (30) days from the date of invoice and shall be subject to the terms contained in Section III, Subsections (K) and (N) herein. (4) The FIRE CHIEF of the FIRE DISTRICT may authorize, with the written approval of the CITY, improvements to any of the CITY Fire Stations for the FIRE DISTRICT's benefit at no cost to the CITY. Such improvements shall not be subject to the FIRE DISTRICT's maximum share provisions as contained herein, and FIRE DISTRICT's maximum -16- 2 3 4 5 6 7 8 9 10 I 12 13 14 Is 16 17 18 19 20 share shall not be reduced by the costs of any such improvements. (G) Without limiting each party's indemnification of the other and during the term of this Agreement, each party agrees to maintain the programs of insurance as set forth below. Each party shall retain the option of satisfying its insurance obligations herein through use of a program of commercial or self-insurance coverages, or any combination thereof. Each party's insurance shall be primary to and not contributing with any insurance or self-insurance programs maintained by the other, and shall be maintained at each party's own expense. (1) The CITY shall maintain: General Liability insurance (written on ISO policy form CG 00 01 or its equivalent) with limits of not less than $1 million per occurrence and $2 million aggregate; Workers Compensation insurance to meet statutory requirements, and including Employers' Liability coverage with limits of not less than $1 million each; Professional Liability covering liability arising from any error, omission, negligent or wrongful act of the CITY with limits of not less than $1 million per occurrence and $2 million aggregate; and Property Coverage providing Special forth ("all-risk") coverage in an amount equivalent to the full replacement value of the CITY Fire Stations and applying to CITY- owned and leased real property. The CITY agrees to name the FIRE DISTRICT as an additional insured on its insurance policies. (2) The FIRE DISTRICT shall maintain: General Liability insurance (written on ISO policy form CG 00 01 or its equivalent) with limits of not less than $1 million per occurrence and $2 million aggregate; Automobile Liability insurance (written on ISO policy form CA 00 01 21 I or its equivalent) with a limit of liability of not less than $1 million for each accident; Workers 22 Compensation insurance to meet statutory requirements, and including Employers' Liability 23 coverage with limits of not less than $1 million each incident; and Professional Liability 24 11 covering liability arising from any error, omission, negligent or wrongful act of the FIRE 25 DISTRICT with limits of not less than $1 million per occurrence and $2 million aggregate. The 26 27 28 FIRE DISTRICT agrees to name the CITY as an additional insured on its insurance policies. (H) The FIRE DISTRICT shall not be liable for any damages to any of the CITY Fire Stations which results from any seismic events, natural disasters, civil disturbances, or acts of -1 7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 God. Should any such event occur that makes any of the CITY fire stations uninhabitable and/or nonoperational, the CITY shall immediately find temporary quarters for the FIRE DISTRICT to operate out of until the CITY can repair the affected CITY fire station(s). (1) The FIRE DISTRICT and the CITY, respectively, shall be fully responsible for any repairs or any damages arising from the intentional or negligent acts of their respective personnel. Disputes regarding implementation of this provision shall be resolved pursuant to Section III, Subsection (N). SECTION VI. INDEMNIFICATION Except as specifically otherwise provided in this Agreement, neither party shall be liable for the negligent or wrongful acts of the other in the performance of this Agreement. (A) The CITY agrees to indemnify, defend, and hold harmless the FIRE DISTRICT and the County of Los Angeles, hereinafter referred to as 'COUNTY", their elected and appointed officials, officers, agents, and employees from any and all liability and expenses, including defense costs and legal fees, arising from or connected with claims and lawsuits arising from the negligent or wrongful acts of the CITY in the performance of this Agreement including any matters relating to the separation from CITY service by the CITY employees transferring to the FIRE DISTRICT as specified on Schedules 7 and 10 herein. (B) The FIRE DISTRICT agrees to indemnify, defend, and hold harmless the CITY, its elected and appointed officials, agents, officers, and employees from any and all liability and expenses, including defense costs and legal fees, arising from or connected with claims and lawsuits arising from the negligent or wrongful acts of the FIRE DISTRICT in the performance of this Agreement. SECTION VII. PERSONNEL (A) SWORN EMPLOYEES (1) Appointment - Subject to the provisions of the California Government Code, Section 1031 and the Los Angeles County Code Section 6.02.040, the FIRE DISTRICT agrees to appoint, without further civil service examination, those CITY firefighter series employees, hereinafter referred to as "sworn employees," specked on Schedule 7, attached hereto and -18- 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 made a part hereof, who have successfully completed six (6) months service with the CITY, exclusive of temporary or reserve fire fighters. Sworn employees' service with the CITY must include actual firefighting experience in a permanent fire fighter position. The date of hire that establishes the sworn CITY employees' continuous service date in a safety capacity with the CITY shall be utilized for purposes of the mandatory retirement age for transferring safety (2) Probation - All CITY sworn employees on probation will remain on probation until completing the FIRE DISTRICT probationary period and requirements. (3) Positions - CITY sworn employees qualified pursuant to this Section VII are fully identified on Schedule 7 attached hereto and are subject to the terms and conditions of this Agreement. CITY sworn employees shall be employed by the FIRE DISTRICT in the number and status as follows: Number Fire District Status 9 Captain 11 Fire Fighter Specialist Remaining Fire Fighter The actual number of transferring CITY employees employed by the FIRE DISTRICT as a Fire Fighter will be based on the number of transferring employees at the time of transition to FIRE DISTRICT service. The CITY shall designate sworn employees to be assigned to the Captain, Fire Fighter Specialist, and Fire Fighter positions indicated above. Any CITY designated employee shall be eligible for the assigned position If the employee has held the position being designated to or a higher position in the service of the CITY. A duly authorized representative from the Vernon Firefighter's Association, Local 2312 (VFA) and the Vernon Fire Management Association (VFMA) shall approve, in writing, the appointment of the personnel designated to the ranks of Captain and Fire Fighter Specialist as listed on Schedule 7 attached. Once approved by the VFA and VFMA, these designations shall become final and not subject to change unless a CITY sworn employee designated on the list does not transfer to the FIRE -19- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DISTRICT. The CITY shall indemnify, defend, and hold harmless the FIRE DISTRICT from any claims, liabilities, damages, costs, or expenses of any nature whatsoever related to the of transferring employees' ranks by the CITY. (4) Firefighting Experience - CITY swom employees to be assigned to the position of Fire Captain shall have a minimum of five (5) years' firefighting experience. The CITY represents and warrants that those employees assigned Fire Captain positions have a minimum of five (5) years' firefighting experience. (5) Driving Skills - All CITY swam employees who are to be assigned fire apparatus operation responsibilities as Fire Fighter Specialists will be tested and trained, as may be required by the FIRE DISTRICT. Any CITY swom employee who does not initially qualify in fire apparatus operations prior to the commencement date of services will be assigned other duties. After being provided training by the FIRE DISTRICT, transferring Fire Fighter Specialists will be required to pass a fire apparatus operations test. Fire Fighter Specialists who do not pass the fire apparatus operations test may be demoted at the sole discretion of the FIRE DISTRICT. (6) Driver License - As a condition of employment, all CITY swom employees will be required to have a Class C Driver License with fire fighter endorsements as the minimum standard driver license obtained from their state of residence. If the employees' state of residence does not issue a firefighter endorsement, the employee shall acquire a commercial license appropriate to the vehicle being driven. No employee shall have license restrictions which would prevent him/her from performing his/her employment duties. (7) EMT-1 Training - Sworn members of the FIRE DISTRICT are required to be certified as Emergency Medical Technician I (EMT-1). The CITY certifies that all CITY swom employees transferring to the FIRE DISTRICT shall have current EMT-1 certification, current continuing education (CE), and certified skills (CS) testing. Current CE shall be defined as the equivalent of one (1) hour of CE for each month that has elapsed since the last recertification date. Current CS shall be defined as twelve (12) skills tests during a 24-month skills cycle. The CITY shall reimburse the FIRE DISTRICT for any costs incurred by the FIRE DISTRICT -20- 2 3 4 5 6 7 8 9 10 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 as a result of non-compliance by any CITY employee of the requirements herein. In addition, all transferring CITY paramedics who desire to transfer to the FIRE DISTRICT as a paramedic must complete 24 hours a year, or 48 hours during their 2-year cycle of paramedic CE, including skills testing, and the FIRE DISTRICT's re -activation class which consists of up to three (3) days of classroom and five (5) or more shifts of internship (i.e. ride-alongs) on a FIRE DISTRICT paramedic squad. Any transferring paramedic who does not successfully pass this reactivation class and/or who has any pending action against them by the County's Emergency Medical Services Authority, or the State's Local Emergency Medical Services Agency would be ineligible to function as a paramedic with the FIRE DISTRICT. At the time of transition to the FIRE DISTRICT, all transferring employees shall provide documentation certifying that all CE and CS are up-to-date and completed. (8) Senior! - This Agreement will result in the creation of forty-one (41) additional FIRE DISTRICT sworn positions. More than forty-one (41) sworn employees may be transferring from the CITY to the FIRE DISTRICT. Pursuant to Section 53292 of the California Government Code and except as specified in Section VII, Subsection (C), paragraph (10) herein, so as not to impair the seniority rights of FIRE DISTRICT sworn employees, as a result of the forty-one (41) newly created sworn positions, only forty-one (41) CITY sworn employees with the most CITY Fire Department continuous service time will receive FIRE DISTRICT seniority rights and COUNTY seniority. In the event any two or more transferring CITY employees have the same continuous service date with the CITY Fire Department, the CITY shall use whatever method currently utilized by the CITY to determine the manner in which the seniority for those affected employees shall be established. FIRE DISTRICT seniority is principally used for transfer bidding rights and, for these forty-one (41) positions, will be based on continuous service time in the firefighter series with the CITY's Fire Department. COUNTY seniority, which as defined in Los Angeles County Civil Service Rule 2.15 as "continuous service," is principally used for purposes of determining the order of layoff or reduction. Also as defined in Section 6.04.040 of the Los Angeles County Code, "continuous service" is principally used for purposes of determining rights to some types -21- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of paid leave. For these forty-one (41) positions, continuous service will include all continuous service time with the CITY, including any continuous non -permanent time. The assigned FIRE DISTRICT and COUNTY seniority dates for any remaining sworn employees will be the commencement date of services with the FIRE DISTRICT. They will be placed on the FIRE DISTRICT seniority list and also assigned a COUNTY continuous service date in order of their relative service time with the CITY. All CITY and FIRE DISTRICT seniority will be considered for all purposes, except for those individuals beyond the forty-one (41) additional sworn positions for which CITY seniority shall not count for purposes of bidding rights, vacation schedules, and to determine the order of layoff or reduction. As those CITY sworn employees with full FIRE DISTRICT and COUNTY seniority rights leave FIRE DISTRICT service, any remaining sworn employees will be assimilated into full FIRE DISTRICT and COUNTY seniority status based on their time in service as sworn CITYIFIRE DISTRICT employees, with the exception of those employees who fall under the provision of Section VII, Subsection (C), paragraph (10) herein. (9) Promotional Exams - All non -probationary transferring sworn employees shall be immediately eligible for promotional examination within the FIRE DISTRICT. All time in rank as a sworn CITY and/or FIRE DISTRICT employee shall be considered for purposes of determining eligibility for promotional examination. (10) Longevity Bonus - For purposes of determining eligibility for the FIRE DISTRICT's Fire Fighter longevity bonus for those CITY employees blanketed -in to FIRE DISTRICT in the Fire Fighter classification, all continuous CITY service time in the Fire Fighter or successive promotional classifications shall be deemed as fulling the required aggregate service time for longevity bonus entitlement, except as provided in Section VII, Subsection (C), paragraph (10) herein. (11) Training Records —The CITY will provide the FIRE DISTRICT with complete training records of all CITY sworn employees to be transferred to the FIRE DISTRICT pursuant to this Agreement. -22- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (B) NON -SWORN EMPLOYEES (1) Appointment — The FIRE DISTRICT may agree to appoint without further civil service examination non -Fire Fighter series employees, hereinafter referred to as "non -sworn employees", who have successfully completed six (6) months continuous service with the CITY and who shall be listed on Schedule 10, attached hereto and made a part hereof. All non - sworn employees shall successfully complete a probationary period consistent with Los Angeles County Civil Service Rules. (2) Seniod - Since non-swom positions are not being created as a result of this annexation, the FIRE DISTRICT and COUNTY seniority date for all transferring non -sworn CITY employees, which is primarily used for the purpose of determining the order of layoff or reduction, shall be the commencement date of services. (C) ALL EMPLOYEES (1) Medical Exam & Background Investigation - Prior to the commencement date of services, as a condition of the FIRE DISTRICT employment, each CITY employee must be medically qualified by a FIRE DISTRICT -administered physical examination, which includes a drug screening component, and must pass the FIRE DISTRICT's background investigation. Any CITY employee who is on medical leave of absence on the commencement date of services shall be blanketed into FIRE DISTRICT if he/she passes the required medical examination and background investigation upon termination of medical leave. The FIRE DISTRICT retains the right to not accept any CITY employee in its sole discretion upon completion of the employee's medical exam and background investigation. In such case, the CITY employee's rights, obligations and status as a CITY employee shall be dictated by CITY rules and regulations. (2) Salary Step Placement - For the purpose of determining an employee's FIRE DISTRICT salary step placement, "CITY salary" shall be defined as all monthly earnings that are eligible towards CITY retirement credit, excluding any compensation for unused benefit days or holidays, uniform allowances, and all overtime earnings. The employee's initial salary step placement shall not be less than his/her CITY salary as defined in this Section VII, -23- i. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Subsection (C), paragraph 2. Paramedic bonuses shall be excluded from "CITY salary for those employees who transfer to the FIRE DISTRICT into a "Fire Fighter" position. Any transferring employees who are assigned to "Fire Fighter Paramedic" positions will be entitled to receive the applicable FIRE DISTRICT paramedic bonus. Paramedic bonuses will be included in the "CITY salary" for those employees who transfer to the FIRE DISTRICT into a "Fire Fighter Specialist" or "Captain" position pursuant to this Section VII, Subsection (A), paragraph (3) and who are receiving a paramedic bonus in the CITY at the time of transfer to the FIRE DISTRICT. In the event any employee transferring to the FIRE DISTRICT into a "Fire Fighter Specialist" or "Captain" position is subsequently assigned to a paramedic position in the FIRE DISTRICT, the employee's salary will be recalculated to eliminate the amount of his CITY paramedic bonus and to include the applicable FIRE DISTRICT paramedic bonus. All other bonuses, other than paramedic bonuses, will be considered by the FIRE DISTRICT in its discretion for inclusion in the determination of an employee's FIRE DISTRICT salary placement but is not guaranteed. The ultimate decision regarding the inclusion of bonuses rests with the FIRE DISTRICT in its discretion. (a) Sworn Employees - Except as provided in Section VII, Subsection (C), paragraphs (9) and (10), all continuous service time accrued as a sworn employee in the service of the CITY shall be considered for the purpose of determining COUNTY employee benefits including sick leave, vacation, step placement on the applicable COUNTY salary schedule, and the pensionability of their Flexible Benefits income. Salary step placement of sworn employees shall be within the salary range of the FIRE DISTRICT position assigned, but no less than the salary step that provides for the same salary or next higher salary as the sworn employee's CITY salary as defined in this Section VII, Subsection (C), paragraph 2. Subsequent salary step advances, if applicable, shall be one (1) year from the last step advance with the CITY or in accordance with COUNTY policy, whichever is sooner. In the event that the sworn employee's CITY salary is higher than the top step of the COUNTY salary range, the sworn -24- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 employee will be placed on the top step of that range, but shall be Y-Rated in order to maintain the same level of base salary as the employee had with the CITY. A sworn CITY employee's Y- Rate shall remain in effect until the regular salary including any bonuses exceeds the Y-Rate amount. Y-Rated employees shall not be eligible for bonuses in addition to their Y-Rated salary. Sworn employees who have accrued CITY service time in a non -sworn position shall have such non -sworn service time considered for purposes of determining COUNTY seniority date and benefits, but not salary step placement. (b) Non -Sworn Employees - Except as provided in Section VII, Subsection (C), paragraphs (9) and (10), all continuous service time accrued as a non -sworn employee in the service of the CITY shall be considered for all purposes except for bidding rights for work and vacation schedules, and to determine the order of layoff or reduction. Salary placement of non -sworn employees shall be within the salary range of the FIRE DISTRICT position assigned, and at the salary step that provides for the same salary or next higher salary as the employee's CITY salary as of the commencement date of services through this Agreement. In the event that the employee's CITY salary is higher than the top step of the COUNTY salary range, the employee will be placed on the top step of that range, but shall be Y-Rated so that no loss in pay occurs. (3) Taxes - This Agreement does not exempt transferring CITY employees from applicable payroll taxes required of new employees, such as Health Insurance Tax (HIT). (4) Uniforms - CITY issued uniforms and safety equipment that meet FIRE DISTRICT standards shall be transferred to the FIRE DISTRICT with the transferring employees. CITY uniforms will be supplemented by FIRE DISTRICT issued uniforms and/or safety equipment necessary to meet FIRE DISTRICT requirements. The CITY shall assume all costs for supplementing uniforms and safety equipment that do not meet FIRE DISTRICT standards. Such costs shall be included on Schedule 4, as soon as available. Subsequent uniform issues will be as provided for in the current Memorandum of Understanding for the respective employee representation units entered into between the County of Los Angeles and the certified employee organizations, if applicable. -25- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (5) Personnel/Medical/Time Records - As a condition of FIRE DISTRICT employment, CITY employees must consent to the transfer of complete original personnel and lemployment medical records to the FIRE DISTRICT. The CITY will provide the FIRE DISTRICT with complete and original personnel and employment medical records of all CITY ( personnel to be transferred pursuant to this Agreement, including any employee's complete (original Workers' Compensation files, all claims for disability compensation, and all additional ( documentation related to open claims which remain ongoing after the date of transfer of the CITY employees to the FIRE DISTRICT, which shall be the commencement date of services. I In addition, the CITY will provide the FIRE DISTRICT with a minimum of one (1) year's time records of "hours worked" prior to the commencement date of services for all CITY personnel to be transferred pursuant to this Agreement. Each transferring employee shall certify to the FIRE DISTRICT the completeness of his/her personnel file. (6) Vacation Shifts/Days — The CITY shall pay to the FIRE DISTRICT in the manner set forth in Section III, Subsection (P) herein for transferred vacation benefit shifts/days for transferring employees at the CITY's salary rates in effect on the I commencement date of services. The CITY shall transfer in whole hours all vacation benefit shifts/days an employee is entitled to in CITY employment to a maximum of twenty (20) vacation days, Le one hundred sixty (160) hours for employees assigned to a 40-hour work schedule, or ten (10) shifts, Le, two hundred forty (240) hours for employees assigned to a 24- hour shift schedule, whichever is applicable. Vacation shifts/days are outlined in Schedule 8 for sworn personnel and Schedule 11 for non-swom personnel, which are attached hereto and made a part hereof. CITY salary rates for reimbursement to the FIRE DISTRICT are defined in this Section VII, Subsection (C), paragraph (2). Transferring CITY employees shall accrue vacation benefits each pay period. Pay periods are the 1a1 day of each month to the 15" day of that month, and the 16r" day of each month to the last day of that month. The amount of vacation benefits accrued by each 27 11 transferring CITY employee shall be based on the transferring employees' continuous service 28 11 time as a sworn employee of the CITY. Transferring CITY employees may use their accrued Bi: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 vacation benefits during the pay period immediately following the pay period in which the benefits are accrued, notwithstanding the employees' assigned COUNTY seniority. (7) Sick Shifts/Days — The CITY shall pay to the FIRE DISTRICT in the manner set forth in Section III, Subsection (P) herein for transferred sick benefit shifts/days for transferring employees at the CITY's salary rates in effect on the commencement date of services. The CITY shall transfer in whole hours all sick benefit shiftWdays an employee is entitled to in CITY employment to a maximum of twenty (20) sick days, Le, one -hundred sixty (160) hours for employees assigned to a 40-hour work schedule, or ten (10) shifts, Le, two hundred forty (240) hours for employees assigned to a 24-hour shift schedule, whichever is applicable. Sick benefit shifts/days are outlined in Schedule 9 for sworn personnel and Schedule 12 for non - sworn personnel, which are attached hereto and made a part hereof. The CITY salary rates for reimbursement to the FIRE DISTRICT are defined in this Section VII, Subsection (C), paragraph (2). (8) Waiver of Accumulated Benefits — The FIRE DISTRICT shall not assume any aonsibility for personnel benefits or CITY obligations accrued by CITY employees prior to commencement date of services, except as expressly provided for in this Agreement. The 17 CITY shall provide a waiver for said accumulated benefits executed in favor of the FIRE 18 DISTRICT by each CITY employee as a condition of employment by the FIRE DISTRICT. It is 19 further understood that employees subject to this Agreement shall become eligible for 20 vacation, sick, and holiday time while in FIRE DISTRICT service only as provided in the FIRE 21 DISTRICT Salary Resolution, Los Angeles County Salary Ordinance, or as designated in 22 Section VII herein. 23 (9) Los Angeles County Employees Retirement Association 24 a) All sworn employees subject to this Agreement will, on the first day of the 25 month following the date they are appointed to a position in the FIRE DISTRICT, become 26 members of the Los Angeles County Employees Retirement Association (LACERA) Plan C for 27 Safety Members or any other Safety Plan as permitted by the County Employees' Retirement 28 Law of 1937 (CERL) and the Public Employees' Pension Reform Act of 2013 (PEPRA). -27- 1 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16' 17 18 19 20 21 22 23 24 25 26 27 28 b) All non-swom employees subject to this Agreement will, on the first day of the month following the date they are appointed to a position in the FIRE DISTRICT, become members of Plan G for General Members or one (1) of the other non -safety LACERA plans available at the time of the commencement date of services pursuant to the provisions of CERL and PEPRA. c) Service performed by such sworn and non -sworn personnel while employees of the CITY shall not be credited as retirement service with LACERA, and except as provided in California Government Code Sections 31836.1 and 31836.2, shall not be counted for the purpose of discontinuing contributions after thirty (30) years of continuous service pursuant to Government Code Sections 31625.2 and 31664, to the extent applicable, and shall not be counted for the purpose of determining heafth insurance premiums charged to LACERA retirees. (10) Retirement from Public Employees Retirement System — Transferring CITY employees would be required to leave retirement contributions on deposit with the California Public Employees Retirement System (CaIPERS) and establish reciprocity with LACERA, limiting the FIRE DISTRICT's retirement benefit costs. The transferring employees' LACERA contribution rates would be based on their age upon entering the CaIPERS system. The FIRE DISTRICT'S rate structure for salary and employee benefits includes a component for retirement costs for positions staffing CITY stations; therefore, the FIRE DISTRICT cost would be offset. At the time of retirement, a reciprocal member would receive retirement benefits from both agencies based on the benefits of reciprocity, such as adding service credit under each system to determine eligibility to retire. Any CITY employee who retires from CaIPERS prior to the commencement date of services will not be accepted for FIRE DISTRICT employment. In the event a transferring employee opts to retire from CaIPERS at any time while in the employment of the FIRE DISTRICT, such employee shall forfeit all of his/her continuous service time with the CITY, including all service time with the CITY Fire Department, for purposes of determining FIRE DISTRICT and COUNTY seniority and -28- 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 COUNTY employee benefits and step placement pursuant to Section VII, Subsection (A), paragraphs (8) and (10), and Section VII, Subsection (C), paragraph (2). The FIRE DISTRICT and COUNTY seniority date for any employee retiring from CalPERS pursuant to this paragraph (10) of Subsection (C) of Section VII shall immediately become the commencement date of services, any longevity bonus received by the employee which is based on continuous time with the CITY will be eliminated from the employee's salary, any Y-Rated salary will be eliminated, and the employee's salary will be adjusted and based solely on the employee's FIRE DISTRICT rank and total time as an employee with the FIRE DISTRICT. Such employees must also be medically qualified by a FIRE DISTRICT -administered physical examination as required of newly hired fire fighters. (11) Workers' Compensation - California Labor Code Sections shall govern Workers' Compensation benefits for all transferring CITY employees who sustain industrial injuries. Notwithstanding Section 5500.5 at seq. of the California Labor Code, the CITY agrees to reimburse the FIRE DISTRICT for the FIRE DISTRICT's proportionate share of all medical, legal, administrative, and any other indemnity costs for which the FIRE DISTRICT shall be liable for those industrial injuries apportionable in whole or in part to employees' employment with the CITY. The CITY's responsibility as provided for herein shall not be affected by any change in Federal or State law. The CITY and the FIRE DISTRICT shall cooperate in the ongoing management of any Workers' Compensation claims pending, filed, during the time CITY personnel are employed by the FIRE DISTRICT by providing such information as is necessary for the CITY and/or the FIRE DISTRICT to appropriately manage a Workers' Compensation claim filed by a FIRE DISTRICT employee previously employed by the CITY. The CITY shall notify the FIRE 24 DISTRICT of any claims pending, filed, or denied; and any temporary or permanent work 25 restrictions imposed with respect to an employee who transfers from CITY employment to 26 FIRE DISTRICT employment. The FIRE DISTRICT shall notify the CITY of any claims 27 pending, filed, or denied; and any temporary or permanent work restrictions imposed with 28 respect to an employee who has a pending Workers' Compensation claim involving the CITY -29- 2 3 4 5 6 7 8 9 10 i 12 13 14 15 16 or who asserts a Workers' Compensation claim during employment with the FIRE DISTRICT upon which the CITY is potentially liable in whole or in part. The CITY shall be responsible for adjusting and paying all costs related to those claims which have been filed or are pending as of the effective date of this Agreement. This responsibility of the CITY is subject to contribution from the FIRE DISTRICT for any post -transfer injury or exacerbation of an existing injury already at issue in a pending Workers' Compensation claim involving the CITY at the time of transfer. Pursuant to Subsection C, Paragraph S, the CITY shall provide Workers' Compensation related files on all employees transferring to the FIRE DISTRICT. (12) Health Insurance — The CITY shall continue to provide the existing coverage of paid medical and dental insurance for all employees transferring to the FIRE DISTRICT for one (1) full calendar month after the commencement date of services or, for those employees on medical leave with the CITY on the commencement date of services, for at least one (1) full calendar month after the effective date of their blanketing into the FIRE DISTRICT. The FIRE DISTRICT shall reimburse the CITY as specked in Section III, Subsection (0). (13) Deferred Compensation Plans - Pursuant to Section 6.02.040 of the Los County Code, CITY employees transferring to the FIRE DISTRICT shall be eligible for 17 immediate participation in the COUNTY employees' deferred compensation plans for which 18 they may be eligible depending upon their transferred rank, unless such immediate eligibility is 19 otherwise prohibited by Federal or California statute or regulation. 20 (14) Marriage and Birth Certificates — For purposes of completing the background 21 investigations pursuant to Section VII, Subsection (C), paragraph (1) herein and for verification 22 of eligibility of health insurance coverage, prior to the commencement date of services as 23 determined by the FIRE DISTRICT, all transferring CITY employees will be required to provide 24 copies of their marriage certificates and the birth certificates for themselves and all dependents 25 26 27 28 will be covered under their health insurance benefits. (15) FIRE DISTRICT Employees' Rights -The employment rights of existing FIRE DISTRICT employees shall not be impaired by this Agreement. /// 57 1' 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION Vill. ENVIRONMENTAL QUALITY CONTROL (A) The FIRE DISTRICT shall be responsible to comply with the provisions of the California Environmental Quality Act of 1970 (CEQA), insofar as the same may apply to annexation proceedings required in annexing the CITY to the FIRE DISTRICT. The FIRE DISTRICT agrees to hold the CITY free and harmless from any and all claims, demands, or judgments arising out of the FIRE DISTRICTs failure to comply with the provisions of CEQA, relative to annexation procedures. (B) Prior to the commencement date of services, the CITY shall have a Cal -OSHA Registered Environmental Assessor perform a Phase 1 Site Assessment and Building Asbestos Survey and, if subsequently required, a Phase II Site Assessment on all CITY Fire Station facilities to be occupied by the FIRE DISTRICT pursuant to Schedule 3 attached hereto. All Site Assessments and related reports shall be reviewed, approved, and accepted by the FIRE DISTRICT. (C) The CITY shall, at its sole expense, mitigate and abate all environmental hazards (if any) at the CITY Fire Station sites prior to the commencement date of services and provide evidence to the satisfaction of the FIRE DISTRICT that all recommended measures have been completed and that all applicable laws and requirements have been complied with. Any residual contamination or environmental damage from conditions on or adjacent to CITY Fire Stations which existed before the commencement date of services but which are discovered after the commencement date of services, shall be the responsibility of the CITY. (D) The FIRE DISTRICT shall, at its sole expense, mitigate and abate all environmental damage (if any) caused by the FIRE DISTRICT or its agents at any of the CITY Fire Stations after the commencement date of services. (E) Prior to occupancy of the CITY Fire Stations by the FIRE DISTRICT, the FIRE DISTRICT shall inspect the facilities and identify all hazardous materials stored at the facilities for which the CITY shall be responsible for removal. The CITY shall remove all identified hazardous materials prior to FIRE DISTRICT occupancy of the CITY Fire Stations. If, after FIRE DISTRICT occupancy of the CITY Fire Stations, stored hazardous materials are -31- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 discovered by the FIRE DISTRICT which were not previously identified during the above inspection, the CITY shall remove said materials within thirty (30) days after written notice by the FIRE DISTRICT to the CITY, or the FIRE DISTRICT may remove the materials and invoice the CITY for the costs of such removal. In the event such hazardous materials pose an immediate danger to human health or the environment as determined by the FIRE DISTRICT, such materials shall be removed immediately by the CITY upon notification by the FIRE DISTRICT to the CITY. SECTION IX. HAZARDOUS MATERIALS RELEASE RESPONSE PLAN AND INVENTORY (A) CITY will continue to act as the administering agency for the CITY's Hazardous Materials Release Response Plan and Inventory, California Health and Safety Code Chapter 6.95, Sections 25500 — 25545, hereinafter referred to as the 'Program" during the tern of this (B) The CITY shall retain all fees collected in the administration of the Program as provided by State law. (C) When the FIRE DISTRICT's Health/Hazardous Materials Emergency Response Teams respond to a hazardous materials incident in the CITY, the FIRE DISTRICT will subsequently invoice the CITY on an as -call basis for the costs associated with the response team und(s) responded. Payments by the CITY of invoices for all such hazardous materials emergency incident response team responses shall be made pursuant to the provisions of Section III herein. SECTION X. ADOPTION OF LOS ANGELES COUNTY FIRE CODE Pursuant to Los Angeles County Fire Code - Title 32, Sections 10000.1 and 10000.2, and California Health and Safety Code Section 13869, as may be subsequently amended, upon annexation of the CITY to the FIRE DISTRICT, the County of Los Angeles Fire Code - Tltle 32, including any subsequent amendments to such code, shall be enforced in the CITY by the FIRE DISTRICT. By ordinance, the CITY shall adopt the County of Los Angeles Fire Code — Title 32 as of the commencement date of services. This ordinance will adopt all existing -32. 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY amendments to the County of Los Angeles Fire Code — Title 32 as a separate attachment. The FIRE DISTRICT will enforce applicable amendments specific to the CITY. Where differences occur between the Los Angeles County Fire Code — Title 32 and the amendments adopted by the CITY, the CITY amendments will take precedence unless an impracticality of enforcement is determined by the FIRE DISTRICT in its sole discretion, in which case the FIRE DISTRICT and the CITY shall work towards establishing a mutually agreeable resolution. SECTION XI. MODIFICATION OF SCHEDULES (A) With the exception of Schedule 2, all schedules attached hereto and incorporated herein by reference will be subject to modification by mutual agreement of the CITY ADMINISTRATOR and FIRE CHIEF of the FIRE DISTRICT as needed after the date of approval of this Agreement by both parties. (B) The staffing levels as indicated on Schedule 2 may be subject to modification by mutual written agreement of the CITY COUNCIL and FIRE CHIEF of the FIRE DISTRICT. Any such modification of staffing levels may cause an adjustment in the determination of the Annual Fee as specified in Section 11, Subsection (L) herein. SECTION XII. WITHDRAWAL (A) In the event the CITY terminates this Agreement and withdraws from the FIRE DISTRICT at any time subsequent to the Initial Ten -Year Term, per the provisions of Section I, herein, the FIRE DISTRICT and the CITY agree that: (1) The lease on the fire stations shall terminate and the FIRE DISTRICT shall vacate the CITY Fire Stations on the effective date of withdrawal except as provided for in a subsequent written agreement as may be entered into by the CITY and the FIRE DISTRICT. (2) The FIRE DISTRICT shall return to the CITY, fire apparatus, vehicles and related fire apparatus equipment of a comparable type, condition, and age, in the quantity and type as described on Schedule 5 as of the commencement date of services. (3) The FIRE DISTRICT shall return to the CITY Fire Station equipment, furniture, tools, and furnishings of a comparable type and condition as of the commencement date of -33- 2 3 4 5 6 7 8 9 10 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 services, which are essential to the operation of the fire station facilities and are detailed in Schedule 6. (4) As to any apparatus, vehicles, equipment, tools, furniture, furnishings, or other personal property for which a monetary or in -kind credit was given to the CITY upon the effective date of this Agreement, the FIRE DISTRICT will not be obligated in any manner to return comparable items to the CITY at the date of withdrawal of this Agreement. (B) In the event of the termination of the Agreement by either party as provided herein, the FIRE DISTRICT and the CITY agree to enter into separate and further agreements to address the speck details of termination not addressed in this Agreement. SECTION XIII . GOOD FAITH AND FAIR DEALING The FIRE DISTRICT and the CITY covenant and warrant to act in good faith and fair dealing regarding the performance, administration, and interpretation of this Agreement. SECTION XIV. GENERAL PROVISIONS (A) Severabilitv — In the event that any provision herein contained is held to be invalid, void, or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect, impair or invalidate any other provision contained herein. If any such provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. (B) Waiver — No breach of any provision hereof can be waived unless in writing. Waiver of any one breach of any provision shall not be deemed to be a waiver of any breach of the same or any other provision hereof. (C) Entire Agreement —This Agreement constitutes the entire agreement between the parties relating to the subject matter of this Agreement, and supersedes any prior understanding whether oral or written and may be modified only by further written agreement between the parties hereto. The non -enforceability, invalidity or illegality of any provision of this Agreement shall not render the other provisions thereof unenforceable, invalid or illegal. M -34- I IN WITNESS WHEREOF, the CITY, by majority vote of its City Council, has caused this 2 Agreement to be executed by its Mayor and which execution has been attested to by its Clerk; 3 pursuant to action by a majority vote of the Board of Supervisors, as governing body of the 4 FIRE DISTRICT, the Chair has executed this Agreement on behalf of the FIRE DISTRICT and 5 which execution has been attested to by its Clerk. 6 CONSOLIDATED FIRE PROTECTION CITY OF VERNON 7 DISTRICT OF LOS ANGELES COUNTY 8 9 By 10 Chair, Board of Supervisors 11 DATE 12 13 14 ATTEST: 15 CELIA ZAVALA 16 Executive Officer -Clerk of The Board of Supervisors 17 18 By 19 Deputy 20 21 22 APPROVED AS TO FORM: 23 MARY C. WICKHAM 24 County Counsel 25 26 By 27 Christina Angeles, Principal Deputy 28 .35- By Melissa Ybarra, DATE ATTEST: By Deborah Harrington, Interim City Clerk APPROVED AS TO FORM: By Hema Patel, City Attorney STAFF REPORT Agenda Approved 10/01/19 DJ City Cornea Agenda Item Report Agenda Item No. CO V-446-2019 Submitted by: Michael Earl Submitting Department: Human Resources Meeting Date: October 1, 2019 SUBJECT A Resolution of the City Counc0 of the City of Vernon Approving a Side Letter of Agreement by and between the City of Vernon and the Vernon Fire Management Association Recommendation: A. Find that approval of the attached resolution in this staff report is exempt from Calilbmia Environmental Quality Act (CEQA) review, because it is an administrative activity that wid not result in direct or indirect physical changes in the environment and therefore does not constitute a `project' as defined by CEQA Guidelines Section 15378; and B. Adopt the attached resolution approving the Side Letter of Agreement by and between the City of Vernon and the Vemon Pure Management Association Background: The existing memoranda of understanding (MOUs) between the City of Vernon and the City's six bargaining groups expired June 30, 2019. Pursuant to City Council direction and authority, negotiations with all sic bargaining groups began on March 2019. Labor negotiations with the Vemon Professional Firefighters Association, representing sworn fire employees in the current classifications of Five Battalion Chief initially began with the goal ofnegotiatmg a successor MOU while also evaluating options for outsowciig fire protection services in the City to another agency. On August 6, 2019, the City Council adopted a resolution approving and authorbi g an agreement with the Pure Protection District of Los Angeles County for the provision of fire protection, paramedic, and incidental services in the City of Vernon. Following approval of the agreement with Los Angeles County, the focus ofnegotiations with VFMA tuned to the impact and effects on represented employees upon transition to Los Angeles County. On September 24, 2019, the parties reached a tentative agreement on the terms of the proposed Side Letter of Agreement. Based on the direction and authority provided by the City Council, it is recommended that City Council approve a Side Letter of Agreement with VFMA that reflects the following key provisions: • Extending the tens of the previous MOU until the commencement of services by Los Angeles County, or through August 1, 2020, or util such time as a determination's made that the transition of service to Los Angeles County will not proceed; • Amending Article Five, Section I (C) regarding vacancies to be filled providing for the backfill ofBattafion Chief vacancies at the discretion ofthe Five Chief; • Providing retiree medical benefits to those VFMA represented ernguloyees who transfer to Los Angeles County and who have a mi nurnan of twenty (20) years of service with the City of Vernon as of the date oftmnskion. The amount paid by the City for retiree medical benefits for transferring employees shalt be onset by the arrount ofan y bereft the retiree qualifies for through Los Angeles County; and, Agenda Approved 10/01/19 DJ • Stipulations as to the employees, ranks, salaries, and city service dates of transferring employees; the amount of vacation and sick leave to be transferred for each employee to Cos Angeles County, and provisions in the event an employee is determined to be ineligible for transfer. • All other terns of the prior MOU would remain in effect Fiscal Impact: The fiscal impact ofapproving the Side Letter of Agreement is savings achieved through not filling an anticipated vacancy for the remainder ofthe fiscal year and throw a reduction in overtime by Imbuing the back -fill to staffthe vacancy. A conservative estinate of the savings resulting ng from these changes is approxirmtely $372,123 for the remainder of time 20192020 fiscal year. Staff will provide periodic updates regarding the resulting savings. ATTACIIIv1QJTS • L Resolution - VFMA Side Letter Agreement