Loading...
HomeMy WebLinkAbout030356 RES - 12/09/2014 RESOLUTION NO: (-i 3 3 6 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI TERMINATING THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI PROFESSIONAL FIREFIGHTERS ASSOCIATION — LOCAL UNION 936 THAT EXPIRED ON JULY 31, 2014; PROVIDING FOR THE APPROVAL AND RATIFICATION OF A COLLECTIVE BARGAINING AGREEMENT CONTINUING THE CITICARE FIRE HEALTH INSURANCE PLAN FOR SIX MONTHS; PROVIDING THE REQUIRED AUTHORIZATION FOR A CONTINUATION OF THE PAY AND BENEFITS FOR THE CIVIL SERVICE FIRE DEPARTMENT AND PERSONNEL AS REQUIRED BY CHAPTER 143 OF THE TEXAS LOCAL GOVERNMENT CODE AND PROVIDING CRITERIA FOR ELIGIBILITY THEREOF; PROVIDING FOR EFFECTIVE DATES; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the City of Corpus Christi (the City) is a duly incorporated home-rule corporation and municipality, operating under Article XI Section 5 of the Texas Constitution, the general laws of the State of Texas, and its duly adopted home rule Charter; and WHEREAS, Texas Local Government Code §§143.041, 143.042, 143.043, and 143.044, require that the City provide for uniform base salaries to all firefighters of the same classification, but also provide that the City may authorize certain incentive pays for firefighters, including certification pay, assignment pay, longevity pay, and other add on pays; and WHEREAS, previously, and during the terms of the collective bargaining agreements with the bargaining agent for the City's firefighters, the City has authorized the pay through the execution of duly negotiated and approved collective bargaining labor agreements; and WHEREAS, the last collective bargaining labor agreement between the City and the Corpus Christi Professional Firefighters Association — Local Union 936 (Fire Union) is entitled "Agreement Between the City of Corpus Christi and the Corpus Christi Firefighters' Association, August 1, 2011 TO July 31, 2014" (Collective Bargaining Agreement); and WHEREAS, the term of the last fire Collective Bargaining Agreement between the City and the Fire Union expired as of July 31, 2014; and Page 1 of 18 030356 INDEXED WHEREAS, the terms of the Collective Bargaining Agreement were kept in place by virtue of the provisions of Section 1, "Duration", of Article XVII of the Agreement between the City and the Fire Union (Collective Bargaining Agreement) which states: "This agreement shall be effective as of the date of signing and shall remain in full force and effect until July 31, 2014, and thereafter until superseded by a new contract."; and WHEREAS, the City and the City Council, as the governing body for the City of Corpus Christi, have committed to good faith collective bargaining with the Fire Union for a new agreement with the Fire Union that is fair, mutually agreeable, sustainable and fiscally responsible; and WHEREAS, the City and the Fire Union have been engaged in collective bargaining negotiations for a new fire contract since April 10, 2014 without resolving most issues thus far; and WHEREAS, the City and the Fire Union have conducted nine sessions of bargaining in an attempt to negotiate a new contract in which the City has made a sincere and earnest effort to negotiate a new contract, but have been unsuccessful in reaching an agreement thereof; and WHEREAS, the City has placed offers of proposals on the negotiating table that would result in approximately $1,800,000.00 in additional wages and other benefits being added to the Fire budget over three (3) years which the Fire Union has not accepted; and WHEREAS, the Fire Union has placed offers of proposals on the negotiating table that would result in approximately $31,800,000.00 in additional wages and other benefits being added to the Fire budget over three (3) years which the City has not accepted; and WHEREAS, the last offer of the Fire Union would require an increase in the budget of approximately $30,000,000.00, which would require a reduction of other city services and/or a tax increase possibly exceeding the maximum statutory levels; and WHEREAS, the fire collective bargaining negotiations and related issues are also tied up in litigation in the state court of Nueces County, Texas; and WHEREAS, the Collective Bargaining Agreement that expired on July 31, 2014 does not have an effective impasse procedure that would result in the resolution of the collective bargaining issues as it does not have any requirements that would result in a new and superseding collective bargaining agreement thereby effectively making the duration clause unlimited and perpetual; and WHEREAS, there is no new superseding collective bargaining agreement to the expired Collective Bargaining Agreement; and WHEREAS, the Collective Bargaining Agreement, being of indefinite duration contemplating continuing performance (or successive performances), is terminable at will by either party; and WHEREAS, to the extent that Section 1, "Duration", of Article XVII of the Collective Bargaining Agreement is interpreted to constitute a perpetual clause prohibiting termination of Page 2 of 18 the Collective Bargaining Agreement, the City Council finds that the Collective Bargaining Agreement violates Article 11, §5 of the Texas Constitution and violates public policy by creating an unconstitutional unfunded debt and liability; and WHEREAS, the Collective Bargaining Agreement that expired on July 31, 2014 also contains the provision entitled Section 3, "Prevailing Rights" of Article II which states, "All rights, privileges, and working conditions enjoyed by the employees at the present time, which are not specifically mentioned in this agreement, shall remain in full force and effect and shall not be diminished in any manner during the term of this agreement, unless by amendment by mutual consent of the parties." WHEREAS, to the extent that Section 3, "Prevailing Rights" of Article II of the Collective Bargaining Agreement is interpreted to constitute an unliquidated and perpetual clause creating unknown unfunded debts and liabilities, the City Council finds that the Collective Bargaining Agreement violates Article 11, §5 of the Texas Constitution and violates public policy by creating an unconstitutional unfunded debt and liability; and WHEREAS, the City Council finds that Federal and State unfunded mandates, the needs of the citizens for continued City services, including but not limited to police, fire, streets, water, storm water, waste water, solid waste, parks and recreation, and library services, and the demands of the Fire Union can no longer be simultaneously met while complying with the Texas Constitution; and WHEREAS, the fire Collective Bargaining Agreement, if continued, shall serve as an obstacle to the City's ability to control the City's fiscal budget and operations; and WHEREAS, in light of the foregoing, the City has fiscal responsibility to terminate the Collective Bargaining Agreement so that appropriate changes to certain aspects of the City's budget and operations can be implemented; and WHEREAS, the prior Collective Bargaining Agreement has now presently expired, no extension is in place, and no new superseding collective bargaining agreement has been ratified by the Fire Union collective bargaining unit or the City; and WHEREAS, in the absence of a duly ratified labor collective bargaining agreement, the necessary authorization by the City for certain pays for the Fire Department civil service personnel is lacking pursuant to the law; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: Section 1. Findings. The aforementioned findings are incorporated herein. Page 3 of 18 Section 2. Termination of the Fire Collective Bargaining Agreement. The Collective Bargaining Agreement between the City of Corpus Christi (City) and the Corpus Christi Professional Firefighters Association— Local Union 936 (Fire Union) for August 1, 2011 to July 31, 2014 is hereby terminated as of the effective date of this Resolution. In the event that a court determines that the City has failed to comply with any contractual prerequisite to termination, the termination of the Collective Bargaining Agreement shall become effective at such time as the City complies with such contractual prerequisite without any further requirement of further action by the City. Section 3. Approval and Ratification of new Collective Bargaining Agreement regarding Citicare Fire Health Insurance Plan. The City Council hereby approves and ratifies a new collective bargaining agreement with the Fire Union, which is attached to this Resolution as Exhibit A, to be in effect for six months from the date of this Resolution, so as to continue the level of health benefits as provided by the CitiCare Fire Health Insurance Plan for Fire department civil service personnel. Section 4. Severability In the event that any part or section of this Resolution should be found invalid, unlawful or unenforceable by reason of existing or subsequent enacted legislation or by judicial authority, all other parts and sections of the Resolution shall remain in full force and effect. BE IT FURTHER CONCURRENTLY RESOLVED BY THE CITY OF CORPUS CHRISTI, TEXAS, THE FOLLOWING PAY AND BENEFITS FOR THE FIRE DEPARTMENT CIVIL SERVICE PERSONNEL, WHICH IN THE ABSENCE OF A COLLECTIVE BARGAINING LABOR AGREEMENT, REQUIRE SEPARATE AUTHORIZATION AS PER CHAPTER 143 OF THE TEXAS LOCAL GOVERNMENT CODE, SHALL BE AS FOLLOWS EFFECTIVE UPON THE FIRST FULL PAY CYCLE AFTER ADOPTION OF THIS RESOLUTION: Section 5. BASE AMOUNTS As per the authority specified in §143.041 of the Texas Local Government Code, the recognized uniform base pay for the currently recognized classifications shall be as specified in the tables below: As of the date of the passage of this Resolution, the basic classified ranks* within the Fire Department, as well as the applicable job classification and applicable monthly pay rates shall be effective as follows upon the first full pay cycle after adoption of this Resolution which includes a 1.5%increase to the previous monthly pay rates: Title* Start 6mos 12mos 18mos 30mos 120mos Cadet 3145 3280 Firefighter 1 4019 4198, 4391 4674 4781 Page 4 of 18 Firefighter II 4781 4875 4976 5085 5401 Fire Captain 5401 5558 5718 5933 6201 Batt. Chief 6201 6482 6777 7084 In order to qualify for the 120 month step, a Firefighter I must have 120 months of service in the Corpus Christi Fire Department, not including time as a cadet, and hold a current advanced Structure Fire Protection Personnel Certification from the Texas Commission on Fire Protection or an EMS certification of EMT-B or higher. * The City reserves the right, as per §143.021 of the Texas Local Government Code, to determine and denominate rank structure. Section 6. LONGEVITY PAY Wages shall include longevity pay calculated at $6.00 per month for each complete year of service up to a maximum of fifteen (15) years of service. Thereafter, for each additional year of service, longevity pay shall be $4.00 per month for each year up to a maximum of twenty five (25) years of service. Section 7. CERTIFICATION PAY In addition to his/her regular monthly pay, a Firefighter who is certified by the appropriate State agency and meets all certification requirements of this agreement, shall receive certification pay in the amount indicated below, according to the level of his/her certification: Intermediate Fire Certification $20 per month Advanced Fire Certification $25 per month Master's Fire Certification $30 per month Certified EMT $35 per month Certified Paramedic $75 per month Fire Prevention Insp. $35 per month Arson Investigator $75 per month Basic Instructor $35 per month Intermediate Instructor, Advanced Instructor or Master Instructor $75 per month Section 8. ASSIGNMENT PAY In addition to his/her regular monthly pay, and certification pay, a Firefighter who is assigned to duty listed below shall receive the amount indicated: Page 5 of 18 Regularly assigned HAZ-MAT -- $50 per month Regularly assigned to Rescue Truck/Station and HAZ-MAT qualified (Effective August 1, 1998) -- $50 per month Certified EMT Assigned to Ambulance -- $50 per month Certified Paramedic Assigned to Ambulance -- $50 per month Firefighters currently assigned and who continuously serve for greater than five (5) and less than ten (10) years of service as permanently assigned to EMS shall receive an additional $50.00 assignment pay per month. For greater than ten (10) years of continuous service as permanently assigned to EMS, a Firefighter shall receive an additional $50.00 assignment pay per month for a total of an additional $100 per month as continuous assignment pay. Temporary reassignment pursuant to Article VI Section 6 shall not constitute a break in continuous service. Individuals assigned to a forty (40) hour work week, other than employees assigned on temporary, special or limited duty, will receive the following: 0-3 years $150.00 per mo. 4-5 years $200.00 per mo. 6 or more years $225.00 per mo. Section 9. WORKING OUT—OF—CLASSIFICATION Any Firefighter who is assigned the duties of a higher classification for an accrued period of four (4) hours or more during any shift shall be paid acting-out-of-classification pay on a monthly basis as follows: Acting Firefighter II $18.00 per shift Acting Captain $24.00 per shift Acting Battalion Chief $36.00 per shift Acting Assistant Fire Chief $48.00 per shift Working or acting out-of-classification pay under this section shall not be considered as a component of salary or compensation for purposes of drag up pay or leave sell back or overtime. Section 10. EDUCATION INCENTIVE PAY (1) In order to receive payment under this section, semester hours and degrees must be earned from an accredited college or university. Employees shall be eligible for educational incentive pay at the monthly rate of $1.00 per month for each academic semester hour satisfactorily completed provided that such hours are applicable toward a degree. In no event will more than $71.00 per month be paid without successful completion of the requirements and the receipt of an Associate Degree. If the employee is Page 6 of 18 attending an upper level college, he/she may meet this requirement by filing a copy of his/her certified degree plan with the Director of Human Resources, noting his/her expressed intent to obtain a Bachelor's Degree. All approved hours above the Associate Degree will be eligible for educational pay at this rate up to an additional $53.00 per month or a combined total of $124.00 per month. Successful completion of the requirements and receipt of a Bachelor's Degree will qualify the employee for a maximum of$135.00 per month. (2) Approved hours above the Bachelor's Degree applicable toward a Master's Degree will be eligible for educational incentive pay at the same rate up to an additional $20.00 per month. Successful completion of the Master's Degree will qualify the employee for an additional $16.00 per month for a maximum combined total of an additional $36.00 per month on a Master's Degree. The addition of other compensable areas of study under this section shall not expand the practice of payment of expenses or provision of textbooks or materials to such other areas of study as presently provided for an Associate Degree in Applied Science for Fire Science at Del Mar College. (3) No probationary employee shall be eligible for educational incentive pay until after he/she has successfully passed his/her probationary period. (4) Education incentive pay under this section shall not be considered as a component of salary or compensation for purposes of drag up pay or leave sell back or overtime. Section 11. PERFORMANCE AWARD Every November, each firefighter, excluding those on probationary status, shall receive a performance award in a lump sum payment of $150.00. Performance award pay under this section shall not be considered a component of salary or compensation for purposes of drag up pay or leave sell back or overtime. Section 12. SALARY OF DEPUTY CHIEFS AND ASSISTANT CHIEFS The positions of Deputy Chiefs and Assistant Chiefs shall be compensated under the City's Managerial Pay Plan. Section 13. PAY PERIODS Wages and other compensation specifically mentioned in this Resolution, excluding overtime, shall be paid on the basis of twenty six (26) pay periods per year, paid every other week. Section 14. OVERTIME Fire department civil service personnel shall be paid at an overtime rate, when applicable, in accordance with the minimum requirements for such pay imposed by applicable state and/or federal law. Page 7 of 18 Section 15. HOLIDAYS Each employee shall receive the following holidays during each fiscal year: (1) New Year's Day (2) Memorial Day (3) Fourth of July (4) Labor Day (5) Thanksgiving Day (6) Christmas Day (7) One holiday to be determined by the City. Firefighters shall have the same number of holidays, or days in lieu thereof, that are granted to other municipal employees. Section 16. VACATION Firefighters with less than fifteen (15) years of service shall be entitled fifteen (15) working days vacation a year which shall accrue on the basis of twenty six (26) biweekly pay periods per year. Firefighters with fifteen (15) years to twenty nine (29) years of continuous service shall accrue eighteen (18) working days vacation a year, which shall accrue on the basis of twenty six (26) pay periods a year. Firefighters with thirty (30) years of continuous service or more shall accrue twenty one (21) working days of vacation a year which will accrue on the basis of twenty six (26) biweekly pay periods a year. For twenty four (24) hour shift firefighters, twelve (12) scheduled working hours shall be counted as one (1) working day for determining the accrual of vacation leave. For those firefighters scheduled to work forty (40) hours a week, regardless of whether worked in shifts of eight (8) hours, ten (10) hours, or such other shifts as may be authorized under this Agreement, eight (8) hours shall be counted as one (1) working day for determining the accrual of vacation leave. All Firefighters hired after September 1, 1998, shall be allowed to accrue unlimited vacation leave hours (includes holiday leave hours), but upon retirement, resignation, or termination the Firefighter shall not be paid in excess of four hundred and eighty (480) hours for forty (40) hour workweek employees or seven hundred and twenty (720) hours for twenty four (24) hour shift employees. All Firefighters hired on or before September 1, 1998, shall be allowed to accrue unlimited vacation leave hours (includes holiday leave hours), but upon retirement, resignation, or termination the forty (40) hour workweek Firefighter shall not be paid in excess of an amount equal to seven hundred and twenty (720) hours plus the amount the Firefighter had on the books as of December 20, 1998. If the Firefighter is on the 24 hour shift, the Firefighter shall not be paid in excess of an amount equal to 1080 hours plus the amount the Firefighter had on the books as of December 20, 1998. The City retains the current practice of permitting Firefighters to sell one (1) day of vacation for each day of vacation taken to a maximum of five (5) days per year. Firefighters can sell back only such vacation leave in excess of thirty (30) days accrued vacation leave pursuant Page 8 of 18 to this provision. However, effective August 1, 1998, each Firefighter may sell back to the City two (2) days of vacation leave for each day of vacation leave taken during the year not to exceed a total of ten (10) days. For purposes of this Resolution, a Firefighter working a twenty four (24) hour shift shall be permitted to sell twelve (12) hours of accrued vacation leave per day not to exceed one hundred and twenty (120) hours (10 days times 12 hours) per year. All other Firefighters working forty (40) hours per workweek (regardless if on a 4-10 schedule or 5-8 schedule) shall be allowed to sell back eighty (80) hours. The following procedure sets forth the pay methodology for eligible vacation leave and for eligible vacation sell back: CALCULATING"DRAG-UP PAY" (VACATION) AND VACATION LEAVE SELL BACK FOR FIRE EMPLOYEES The components of wages to be used in determining the hourly rate for payment of"drag- up pay" for eligible accrued vacation leave are applicable monthly base salary, longevity, certification and assignment pays listed in this Resolution plus the EMS supervisory officers pay and the Assistant EMS Director pay when applicable and excludes any other pays. The City will use the average 54 hours per week for 24 hour shift employees to determine the hourly rate for drag-up pay. The formula below shall also be used to compute the amount paid for Vacation Leave Sell Back under this Resolution. 1. TO COMPUTE 24/48 HOUR SHIFT EMPLOYEE "DRAG-UP PAY" AND VACATION LEAVE SELL BACK HOURLY RATE: (Annual Base Salary)+(Annual Longevity, Assignment, and Certification Pay) * =Hourly Drag Up Rate (26 Pay Periods) x (54 hours/week) x ( 2 weeks/pay period) 2. TO COMPUTE 40 HOUR EMPLOYEE "DRAG-UP PAY" AND VACATION LEAVE SELL BACK HOURLY RATE: (Annual Base Salary)+(Annual Longevity,Assignment, and Certification Pay) * = Hourly Drag Up Rate (26 Pay Periods)x(40 hours/week) x (2 weeks/pay period) * Applicable wage components listed in this Resolution plus applicable EMS supervisory officers pay and Assistant EMS Director pay as described above. The City shall distribute funds in cash or as contributions to a deferred compensation plan or as otherwise directed by the Firefighter. Any costs incurred for the transfer of funds for distributions other than direct payment to the employee shall be the responsibility of the Firefighter. The City may require that the Firefighter release and hold the City harmless for any penalties or other liability incurred by the City as a result of allowing the Firefighter to defer compensation under this provision. The City shall not be required to make a payment to a deferred compensation plan or other plan if it is determined, in the City's sole discretion, that such payment or distribution is not in compliance with all applicable laws, rules, and regulations. Page 9 of 18 Section 17. PERSONAL LEAVE Employees on the payroll as of August 1 of each year, except for cadets who have been with the department for less than twelve (12) months, shall receive three (3) personal leave days with pay. Personal leave days shall be non-cumulative and must be taken by July 31 following receipt. Personal leave days not used before July 31 following receipt shall be forfeited. Use of these days shall be subject to the operating needs of the department and the requests of the employees. The City will allow two (2) additional personal leave days (12 hours of leave equal one day) for a total of five (5) personal leave days in each fiscal year, provided that personal leave days must be taken as follows, rather than as currently taken in conjunction with vacation leave: For Suppression Shift Personnel: Three Shifts as follows: 12 PL/12 PL I2PL/12 PL I2PL/12V For 40 Hour Schedule Personnel: 40 hours of Personal Leave Personal leave must be used with personal leave, except as shown. There shall be no payment for the accrued personal leave days if an employee terminates prior to using all of such days. Section 18. SICK LEAVE A. Each Firefighter shall accumulate fifteen (15) days of sick leave with pay per year. Effective January 1, 1988, the Sick Leave Retirement Pool will have a maximum balance of 2,000 days. Quarterly accounting will be maintained to provide a current balance of such days. Days used in accordance with provisions outlined below will be deducted from the pool until it reaches a minimum of five hundred (500) days, at which time two (2) sick leave days per Firefighter per year will be transferred from his/her individual account into the pool until the pool reaches its 2,000-day limit. The Pool shall be used to compensate Firefighters who retire, during the term of this contract, other than on disability retirement, with more than ninety (90) days of accrued sick leave to their individual credit. Subject to the maximum limits specified in Sub- Section B, below, the retiree shall be compensated from the Pool for the amount of sick leave accrued to his/her individual credit that exceeds ninety (90) days. Page 10 of 18 B. Upon termination, other than on disability retirement, an employee's compensation for the sick leave accrued to his/her individual credit shall be limited to the following amounts, according to the employee's time in service. (1) Less than 4 full years of service: zero days. (2) 4 full years of service: not more than 30 days. (3) 5 full years of service: not more than 40 days. (4) 6 full years of service: not more than 50 days. (5) 7 full years of service: not more than 60 days. (6) 8 full years of service: not more than 70 days. (7) 9 full years of service: not more than 80 days. (8) 10 or more full years of service: not more than 90 days. (9) 20 or more full years of service: not more than 150 days. (10) 25 or more full years of service: not more than 180 days. C. If a Firefighter dies, any and all amounts he or she would have been entitled to under this section, or the entire amount of accumulated sick leave, whichever is greater, shall be paid to his or her dependents or estate. D. The payment of accrued sick leave as provided by state law shall be based only on base salary, longevity pay, certification pay, and assignment pay as per current payroll practice which is in compliance with state law. Section 19. UNIFORMS A. The City shall pay 100% of the cost of the original issue of uniforms to provide every uniformed employee with all required original issue items. The employee shall thereafter replace or repair said required clothing items. B. The City retains the right to establish the style and color of the official uniform and its insignia. If the City changes style and color of the uniform, and such changes cause the previous uniform to be obsolete, it shall pay 100% of the original cost. C. Original issue of uniforms, including patches, to each Firefighter shall be as follows: (1) Cadet, two (2) Class "A"uniforms; (2) One (1) belt and one (1) buckle; (3) Six (6) Class "B"pants and six (6) T-shirts; (4) One (1) sweatshirt; and (5) One (1) Jacket. D. Shoes shall be at the expense of the individual Firefighter. Page 11 of 18 E. The clothing allowance shall continue to be $67.50 per month. F. Standards regarding the inspections, maintenance, and replacement of uniforms as well as, uniform specification shall be established by the Fire Chief. G. Each Firefighter's name, rank, and highest current EMS Certification shall be on all Firefighters shirts as per department policy. These shirts may also change in style and color however, the City shall have no obligation for the T-shirt uniform change, beyond furnishing the 3 T-shirts, (Paragraph B., above, notwithstanding). Section 20. MILEAGE ALLOWANCE Employees required to use their private automobiles for authorized Fire Department business or as a necessity in changing stations shall be compensated at the rate specified or to be specified in the compensation ordinance of the City, but not less than 32.5 cents per mile. Section 21. MEALS When it appears imminent that Firefighters will be engaged in firefighting duties at the scene of a fire or relocated to another station or engaged in ambulance duties two (2) hours past their normal mealtime, they shall be provided a meal at the City's expense for approximately $6.00 per meal per firefighter, effective upon signing of this agreement, to be reimbursed within two (2) weeks from date of submission of the form approved by the Chiefs office, which may be by fax or other mode of submission. A request by the senior officer present at the scene or approval by the first senior officer in the chain-of-command, if a senior officer is not present at the scene, is necessary before a meal will be provided. Section 22. HEALTH CARE BENEFITS By and through this resolution the City Council hereby approves and ratifies a new collective bargaining agreement with the Fire Union regarding health care benefits, which is attached as Exhibit A to this Resolution, to be in effect for six months from the date of this Resolution (December 9, 2014 through June 8, 2015) so as to continue the level of health benefits as provided by the CitiCare Fire Health Insurance Plan for Fire department civil service personnel. The new collective bargaining agreement must be approved and ratified by the Fire Union in order to take effect and in order to continue the current level of health care benefits. If the Fire Union does not approve and ratify the new collective bargaining agreement regarding the continuation of health care benefits, the fire department civil service personnel shall be afforded the same level of health care benefits as are provided to the City's civilian personnel. Under this new collective bargaining agreement approved and ratified by the City, the Fire department civil service personnel shall be afforded the level of health care benefits as provided by the CitiCare Fire Health Insurance Plan for the six month period of December 9, 2014 through June 8, 2015. Page 12of18 The Citicare Fire Health Insurance Plan shall be structured as follows: CITICARE FIRE HEALTH INSURANCE PLAN This is a benefit summary only, Plan document will govern. BENEFITS IN NETWORK OUT-OF-NETWORK (Participating Providers) PLAN YEAR DEDUCTIBLE No Plan Year Deductible $200 Per Individual $500 Max Family PHYSICIAN SERVICES In-Patient Out-Patient $15.00 Co-Pay 70/30% Co-Insurance Emergency Room LABORATORY SERVICES Physician's Office Lab Facilities $10.00 Co-Pay 70/30% Co-Insurance Hospitals X-Rays Physician's Office: $10.00 Co-Pay 70/30% Co-Insurance X-Ray Facilities: $15.00 Co-Pay Emergency Room Services $50 Co-Pay Then 80/20% ° Co-Insurance 70/30% Co-Insurance Hospitalization $200 Individual Deductible o (In-Patient) $600 Max Family Deductible 70/30% Co-Insurance then 85/15% Co-Insurance Hospitalization $100 Deductible Per Individual o (Out-Patient) $250 Max Family Deductible 70/30% Co-Insurance then 85/15% Co-Insurance Co-Pays: Retail Prescriptions $0—Generic No Deductible $20—Preferred Brand 70/30% Co-Insurance $40—Non-Preferred Brand Prescriptions Co-Pays: Mandatory Mail Order $0—Generic No Deductible 90 Day Supply Su 1 of $20—Preferred Brand 70/30% Co-Insurance Page 13 of 18 Maintenance Prescriptions $40—Non-Preferred Brand Out-Of-Pocket Cost $500 Per Individual $700 Per Individual Excluding Co-Pays & $1,250 Max Family $1,750 Max Family Deductibles Lifetime Maximum Benefit=$2,000,000, unless otherwise required by law. * Employees and dependents covered by the CitiCare Fire Health Insurance Plan will be excluded from the drug formulary. ** Emergency Room Services. Will increase to $50.00 Co-Pay provided that 2 minor emergency clinics are included, one on the Southside of Corpus Christi and the other in the Calallen area. Should the number of minor emergency clinics fall below 2 for more than 90 consecutive days the Co-Pay will be $15.00. Other eligible services and eligible medical supplies as shown in the CitiCare Fire Health Insurance Plan document shall be covered at 85%/15% for primary network, $100.00 deductible/ $250.00 family maximum deductible and 80%/20% for special services or $200.00 deductible/ $500.00 family maximum deductible and 70%/30% for out of network. When an expenditure is made toward a deductible and/or out-of-pocket requirements, it is cumulative in all three categories. Participating Provider Service Areas are those locations covered by a primary network; South Texas, Dallas/Ft Worth, Houston, San Antonio/Laredo and Austin. Out of Network is the use of any hospital, physician or other health care facility or professional that has not signed an agreement with the City or its health care administrator to provide services as the preferred provider. Should the number of hospitals available in the network fall below 2 for more than 90- consecutive days, the reimbursement percentage for out-of-network hospitalization shall be 80%/20%, deductibles shall be $100.00 per each covered individual, $300.00 family maximum, and out-of-pocket shall be $480.00 per each covered individual until the number of hospitals is at least two. Should the number of total physicians in the network fall below 300 for more than 90- consecutive days, the reimbursement percentage for out-of-network physician services, laboratory services and x-rays shall be 80%/20%, the deductible shall be $100.00 per each covered individual, $300.00 family maximum, and out-of-pocket shall be $480.00 per each covered individual until the number of physicians in the network is 300. Page 14 of 18 Should the number of network physicians in any one specialty remain for more than 90- consecutive days below 50% of the number of network physicians who were in the network in that specialty on October 1, 2012, out-of-network physicians services in that specialty shall be reimbursed at 80%/20%, the deductible shall be $100.00 per each covered individual, $300.00 family maximum and out-of-pocket shall be $480.00 per each covered individual until the number of network physicians in that specialty increases to at least 50% of the number who were in the network in that specialty on October 1, 2012. Provided however, that a covered individual who was being treated by a network physician within 90-consecutive days before the day the number fell below 50% shall pay the Primary Network Physicians' Services Co-Pay rate for that treating physician's services for up to 90-consecutive days after the number fell below 50% if that treating physician has become an out-of-network provider. The City shall pay 100% of the employee's premiums and 50% of the premium for dependent coverage. Premium rates shall be determined by the City based on the cost of the plan. The City has the authority to restructure benefits, with the exception of hospitalization deductibles, maximum out of pocket amounts and reimbursement percentages. The City also has the authority to restructure network composition of the preferred provider network. The City retains the right to negotiate with insurance and/or medical providers for benefits, coverage and administration under CitiCare Fire Health Insurance Plan. The benefits in the out-of-network portion of the plan may not be changed unless negotiated and agreed upon by the City and the Association. The purpose of premiums is to generate revenues to cover claim costs. Co-pays are not intended to generate revenues. With regard to the CitiCare Fire Health Insurance Plan Fund Balance (also referred to as the "fund balance" and/or "the cumulative net fund balance"), the initial fund balance to be used for the first measurement period will be the actual CitiCare Fire Health Insurance Plan Fund Balance (also referred to as "fund balance"), but not be less than $1,633,857.00 including restricted and unrestricted funds. Net fund balances for the plan (the difference between the total fund balance and the OPEB liability) will carry forward. The Fiscal Year 12/13 OPEB liability as well as all future OPEB liability will be determined by the bi-annual actuarial study of the GASB liability and will be funded by the fund balance. The past cumulative recorded OPEB liability will be determined by the bi-annual actuarial study of the GASB liability. As of August 1, 2012 the past cumulative recorded OPEB liability is $4,653,600.00 and will be adjusted accordingly as determined by the bi-annual actuarial study of the GASB liability. The first adjustment to the cumulative recorded OPEB liability, including past and current, will be made in Fiscal Year 12/13. Adjustments will continue to be made to the cumulative recorded OPEB liability, including past and current, as determined by the bi-annual actuarial study of the GASB liability The past cumulative recorded OPEB liability will be addressed and recovered from the fund balance as follows beginning Fiscal Year 14/15 until it is fully recovered, or until OPEB liabilities are no longer required or mandated by GASB (Governmental Accounting Standards Board) in which case any monies allocated for OPEB liabilities will transfer back to the CitiCare Fire Health Insurance Plan cumulative fund balance: Page 15 of 18 Fiscal Year 14/15 2% of the past cumulative recorded OPEB liability; Fiscal Year 15/16 3% of the past cumulative recorded OPEB liability; Fiscal Year 16/17 4% of the past cumulative recorded OPEB liability; Fiscal Year 17/18 5% of the past cumulative recorded OPEB liability; and 5% of the past cumulative recorded OPEB liability all fiscal years thereafter Fiscal Year 17/18 until the past cumulative OPEB liability is fully recovered. The above schedule for recovery of the past cumulative recorded OPEB liability is separate and apart from the funding of the current and future OPEB liability. The above recovery schedule for the past cumulative recorded OPEB liability sets the minimum standards for recovery. A higher percentage of recovery may be made towards the past cumulative recorded OPEB liability at the election of the Firefighters. Should the fund balance fall below $1,600,000.00 at the end of each fiscal year on July 31, the recovery of the past cumulative recorded OPEB liability will cease for that fiscal year until the next fiscal year. The past cumulative recorded OPEB liability as well as all current and future OPEB liability will be recognized, addressed, recovered, funded and included in all labor contracts following thereafter as determined by the bi-annual actuarial study of the GASB liability, or until OPEB liabilities are no longer required or mandated by GASB (Governmental Accounting Standards Board) in which case any monies allocated for OPEB liabilities will transfer back to the CitiCare Fire Health Insurance Plan cumulative fund balance. Section 23. OPERATIONS All other management, employment and personnel matters in furtherance of the function, purpose, and operations of the Fire Department shall be handled in accordance with existing policies of the City, including but not necessarily limited to 1) applicable civil service statutes and law; 2) the City's Civil Service Rules and Regulations; 3) the City's Personnel Policy Manual; 4) Departmental Rules, Policies, Directives, Regulations and Standards of Procedure; 5) Executive Orders and Directives; as applicable; and 6) any further and additional management rights and prerogatives granted by law to officers and officials of the City of Corpus Christi. The City and the Fire Chief shall retain and have all rights and authority to which by law they are entitled. The City and the Fire Chief retain and have the right to operate and manage its affairs and departments in all respects. The City and the Fire Chief retain and have the right to establish departmental rules of procedures, standards of procedure, protocols, to discipline and discharge for cause, to determine work schedules and assignments, to establish methods and processed by which work is to be performed, and to manage all aspects of the operations of the Fire Department. Page 16 of 18 BE IT FURTHER CONCURRENTLY RESOLVED AS FOLLOWS: THAT THIS RESOLUTION SHALL REMAIN IN FORCE AND EFFECT FOR PURPOSES OF SATISFYING THE AUTHORIZATION REQUIREMENTS OF CHAPTER 143 OF THE TEXAS LOCAL GOVERNMENT CODE, UNLESS AND UNTIL FURTHER MODIFIED OR AMENDED BY THE CITY COUNCIL OR UPON FULL APPROVAL OF A DULY NEGOTIATED COLLECTIVE BARGAINING LABOR AGREEMENT BY THE CITY AND THE FIRE UNION, WHICHEVER IS EARLIER. ATTEST: CITY OF CORPUS CHRISTI, TEXAS 1111 17sL"'e-e- Rebecca Huerta, City ecretary Nelda Martinez, May. Corpus Christi, Texas qof 2014 The above resolution was passed by the following vote: Nelda Martinez David Loeb Lillian Riojas Mark Scott (1A04.11(j- Kelley Allen Chad Magill Priscilla Leal Cala-eAk Colleen McIntyre I Rudy Garza Jr. , A A Page 17 of 18 030356 EXHIBIT A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI FIREFIGHTERS' ASSOCIATION December 9, 2014 TO June 8, 2015 Page 18 of 18 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI FIREFIGHTERS' ASSOCIATION December 9, 2014 TO June 8, 2015 TABLE OF CONTENTS Preamble 3 Article I—Definitions 3 Article II-Recognition and General Provisions 1. Recognitions 4 2.Amendments 5 Article III—Health&Welfare 1. Health Care Insurance Plan and Life Premiums 5 Article IV-Duration and Concluding Provisions 1. Duration 12 2. Severability 12 3. Conflict with Civil Service Statute 12 4. Copies of Agreement 13 Concluding Provision 14 Page 2 PREAMBLE The following collective bargaining agreement is made by and between the City of Corpus Christi, Texas, hereafter referred to as "the City", and the International Association of Firefighters, Local Union 936, hereinafter referred to as "the Union." Now, therefore, in consideration of mutual promises and agreements contained herein, the parties agree as follows: ARTICLE I DEFINITIONS 1. "Accredited college or university," means a college or university whose accreditation is approved by the Texas Higher Education Coordinating Board. 2. "City"means the City of Corpus Christi. 3. "Union"means the International Association of Firefighters, Local Union 936. 4. "Employee" means any sworn, certified, full-time paid employee who regularly serves in a professional firefighting capacity. The Fire Chief and all civilian non- uniformed employees are excluded from receiving wages or benefits as provided under this contract, and therefore are not included within the definition of employee. 5. "Members" means any employee who is on the membership list of and pays dues to the Union. 6. "Supervisor" means any officer with the rank of Fire Captain or above. 7. "Civil Service Commission" means the Civil Service Commission of the City of Corpus Christi. 8. "Chief of the Department"means the Fire Chief of the City of Corpus Christi. 9. "City Manager" means the City Manager of the City of Corpus Christi. 10. "Chapter 143" means Chapter 143 of the Local Government Code, Vernon's Texas Codes Annotated, 1987. Article 5154c-1 shall mean "Chapter 174 Fire and Police Employee Relations" of the Vernon's Texas Codes Annotated, Local Government Code, Chapter 174. 11. "Cadet" means an individual employed by the Fire Department who is attending the Fire Academy and who has not graduated. 12. "Fire academy" means all training necessary to prepare and certify cadets for employment as a firefighter, to include State firefighter certification, and initial State EMT, and Paramedic certification. Page 3 13. "Certified EMT" (Emergency Medical Technician) means a firefighter who has a current certification as an Emergency Medical Technician from the appropriate State agency, and who maintains a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 14. "EMT Certification" consists of a current certification as an Emergency Medical Technician from the appropriate State agency, and a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 15. "Certified Paramedic" means a firefighter who has a current certification as an Emergency Medical Technician-Paramedic, or a current license as a Licensed Paramedic, from the appropriate State agency and who maintains a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 16. "Paramedic Certification" consists of a current certification as an Emergency Medical Technician-Paramedic, or a current license as a Licensed Paramedic, from the appropriate State agency and a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 17. "Probationary Period" shall be 18 months from the date of hire, unless a firefighter is unable to obtain initial paramedic certification under Texas law within twelve (12) months from the date of hire. If a firefighter fails to obtain said paramedic certification within twelve months of date of hire, the end of the probationary period will be six (6) months from the date the Employee was examined for the written portion of the paramedic examination (currently the National Registry exam) as long as, the Employee passed on that date and it was within eighteen (18) months of initial date of hire. Failure to obtain initial certification based on the paramedic examination taken within eighteen (18) months from the date of hire shall result in termination as per Article IX Section 5. For example—if an Employee hired on September 1, 2005, passed the written exam taken on December 1, 2006, the probationary period shall be extended to June 1, 2007. ARTICLE II RECOGNITION AND GENERAL PROVISIONS Section 1. Recognitions. The City recognizes the Union as the exclusive bargaining agent for a bargaining unit consisting of each sworn, certified Firefighter in the Fire Department of the City of Corpus Christi. It is understood that this bargaining unit does not include the Chief of the Department and does not include civilian non-uniformed personnel. It is understood that this bargaining unit does not include Cadets enrolled in the Fire academy, but that such persons become members of the bargaining unit at the time they graduate from the Fire academy. Page 4 Section 2. Amendments. The Union and the City may jointly agree to negotiate possible changes in the contract during its term. Such negotiations shall be set at the convenience of both parties. In order for the contract to be amended both parties must agree upon the amendment. Amendments to the contract must be ratified by appropriate parties. ARTICLE III HEALTH & WELFARE Section 1. Health Care Insurance Plan and Life Premiums. A. Health Care Plan: The City shall provide health care coverage for Firefighters and their dependents. The plan will be called CitiCare Fire Health Insurance Plan. Effective October 1, 2012, employees and retirees who were previously grandfathered in Plan II, later called Public Safety CitiCare, will be moved to the CitiCare Fire Health Insurance Plan. B. Bi-weekly premium costs for CitiCare Fire Health Insurance Plan as of October 1, 2012 are as follows: Employee Cost City Cost Employee $0 $296.98 Employee & Spouse $179.50 $476.47 Employee& Children $142.77 $439.75 Employee & Family $290.28 $587.27 The City shall pay 100% of the employee's premiums and 50% of the premium for dependent coverage towards the CitiCare Fire Health Insurance Plan. Premium rates shall be determined using the agreed methodology described in this Agreement. In the event alternate plans are introduced in the future, the dollar amount of City contribution will always be based upon the outcome of this provision toward all plans and employee tiers of coverage unless otherwise agreed upon by the Association. The City agrees to provide the Association and/or its consultant(s) information used by the City to determine premiums (with the exception of information subject to privacy limitations under the state or federal law, including HIPPAA, unless proper agreements or authorizations have been executed). Page 5 The City will notify the Association, in advance, of any Employee Insurance Advisory Committee meetings. The Association will be allowed to have representation on the Employee Insurance Advisory Committee, and on any committees formed to evaluate proposals in response to Requests for Proposals related to negotiated benefits of the bargaining unit. The City shall notify the Association in writing of premium increases with a minimum of sixty (60) calendar days notice of any change, and of health plan changes with a minimum of thirty (30) days notice of any change. The City retains the right to negotiate with insurance carriers, third party administrators and their related sub-contractors and/or medical providers to provide insurance coverage and/or administration of the CitiCare Fire Health Insurance Plan. The benefits in the plan that will be negotiated will be hospitalization deductibles, maximum out of pocket amounts, co-pays and co-insurance percentages. Participating Provider Service Areas shall always include the following areas: Corpus Christi and the surrounding area, South Texas, Dallas/Fort Worth, Houston, San Antonio, Laredo and Austin. Out of Network is the use of any hospital, physician or other health care facility or professional that has not signed an agreement with the City's preferred provider network. In the event a covered member does not live or work in an area with in-network providers, and in cases of emergency care, services provided outside the participating provider service areas will be provided at the in-network level of benefits. The City will fulfill its obligations to conduct a bi-annual actuarial study of the GASB liability and adjust the cumulative recorded OPEB liability accordingly. The first adjustment to the cumulative recorded OPEB liability, including past and current, will be made in Fiscal Year 12/13. Adjustments will continue to be made to the cumulative recorded OPEB liability, including past and current, as determined by the bi-annual actuarial study of the GASB liability. Plan changes mandated by federal health care legislation will be implemented as required. The Association will be notified of such changes. The following components will be used to calculate the premiums for active employees and retirees under age 65: 1. Effective October 1, 2012, employees and retirees who were previously grandfathered in Plan II, later called Public Safety CitiCare, will be moved to the CitiCare Fire Health Insurance Plan. 2. Third Party Administrator(TPA) administrative fees Page 6 3. Stop loss premiums 4. Incurred and paid medical and prescription drug claims (after stop loss adjustments, rebates, subrogation recoveries, coordination of benefit recoveries) of all plan participants (active employees, retirees, and participating dependents), with allowance for adjustment based upon expected benefit plan, enrollment or other changes. The base time frame for this data will be based upon a consecutive seventeen (17) month time period ending seven (7) months prior to the effective date of such rate and benefit changes. The resulting net claim factors will be converted to a twelve (12) month equivalent for purposes of establishing the base claims factor to be used in the calculation to determine contributions. 5. A prorated contribution toward the cost of an onsite primary care clinic (the percentage of members covered under the CitiCare Fire Health Insurance Plan divided by the total covered members under the City's health plans who are eligible to use the clinic times the estimated annual cost of the clinic). 6. Incurred But Not Reported (IBNR) claims, as actuarially determined. 7. The net change in forecasted and prior period catastrophic reserve funding (10% of actuarial projected claims expense). 8. Assumptions for inflation and trend components used to estimate future claims will incorporate prevailing plan specific, regional, and national trends, as well as the anticipated impact of any mandated benefits, and any other factor(s) determined to impact the overall trend. Actuarial and consulting input from both parties will agree upon the factor(s) applied in accordance with professional, ethical and generally accepted practices. If agreement is not reached, within two (2)weeks after the actuary report is provided to the Association, the City will implement the recommendation of its Actuary. The City must notify the Association in writing of its intent to implement its actuarial recommendation. The Association has seven (7) calendar days from receipt of that notice to appeal in writing to the City Manager or designee and request the dispute resolution process as outlined below. Each party's actuary shall mutually agree within seven (7) calendar days upon a third neutral actuary. The parties shall submit position papers within fourteen (14) calendar days from the date of his/her selection. A decision in writing by the neutral actuary as to the factors applied to determine the contribution requirements for active employees and retirees under age 65 shall be delivered to the parties within seven (7) calendar days and shall be binding on all parties. Each party shall pay the total fees and expenses of their own actuary and each shall pay half of the fees and expenses of the neutral actuary. 9. The cumulative net fund balance. a. The initial fund balance to be used for the first measurement period will be the actual CitiCare Fire Health Insurance Plan Fund Balance (also referred to as "fund balance"), but not be less than $1,633,857.00 including restricted and unrestricted funds. Net fund balances for the plan (the difference between the total fund balance and the OPEB Page 7 liability) will carry forward throughout this Agreement. It is agreed that the Fiscal Year 12/13 OPEB liability as well as all future OPEB liability will be determined by the bi- annual actuarial study of the GASB liability and will be funded by the fund balance. It is also agreed that the past cumulative recorded OPEB liability will be determined by the bi-annual actuarial study of the GASB liability. It is agreed that as of August 1, 2012 the past cumulative recorded OPEB liability is $4,653,600.00 and will be adjusted accordingly as determined by the bi-annual actuarial study of the GASB liability. The first adjustment to the cumulative recorded OPEB liability, including past and current, will be made in Fiscal Year 12/13. Adjustments will continue to be made to the cumulative recorded OPEB liability, including past and current, as determined by the bi- annual actuarial study of the GASB liability It is also agreed that the past cumulative recorded OPEB liability will be addressed and recovered from the fund balance as follows beginning Fiscal Year 14/15 until it is fully recovered, or until OPEB liabilities are no longer required or mandated by GASB (Governmental Accounting Standards Board) in which case any monies allocated for OPEB liabilities will transfer back to the CitiCare Fire Health Insurance Plan cumulative fund balance: Fiscal Year 14/15 2% of the past cumulative recorded OPEB liability; Fiscal Year 15/16 3% of the past cumulative recorded OPEB liability; Fiscal Year 16/17 4% of the past cumulative recorded OPEB liability; Fiscal Year 17/18 5% of the past cumulative recorded OPEB liability; and 5%of the past cumulative recorded OPEB liability all fiscal years thereafter Fiscal Year 17/18 until the past cumulative OPEB liability is fully recovered. The above schedule for recovery of the past cumulative recorded OPEB liability is separate and apart from the funding of the current and future OPEB liability. The above recovery schedule for the past cumulative recorded OPEB liability sets the minimum standards for recovery. It is agreed that a higher percentage of recovery may be made towards the past cumulative recorded OPEB liability at the election of the Firefighters. Should the fund balance fall below $1,600,000.00 at the end of each fiscal year on July 31, the recovery of the past cumulative recorded OPEB liability will cease for that fiscal year until the next fiscal year. It is agreed that at the expiration of this contract, the past cumulative recorded OPEB liability as well as all current and future OPEB liability will be recognized, addressed, recovered, funded and included in all contracts following thereafter as determined by the bi-annual actuarial study of the GASB liability, or until OPEB liabilities are no longer required or mandated by GASB (Governmental Accounting Standards Board) in which case any monies allocated for OPEB liabilities will transfer back to the CitiCare Fire Health Insurance Plan cumulative fund balance. Page 8 C. The plan shall be structured as follows: CITICARE FIRE HEALTH INSURANCE PLAN BENEFITS IN NETWORK OUT-OF-NETWORK (Participating Providers) PLAN YEAR DEDUCTIBLE No Plan Year Deductible $200 Per Individual $500 Max Family PHYSICIAN SERVICES In-Patient Out-Patient $15.00 Co-Pay 70/30% Co-Insurance Emergency Room LABORATORY SERVICES Physician's Office Lab Facilities $10.00 Co-Pay 70/30% Co-Insurance Hospitals X-Rays Physician's Office: $10.00 Co-Pay 70/30% Co-Insurance X-Ray Facilities: $15.00 Co-Pay Emergency Room Services $50 Co-Pay Then 80/20% ° Co-Insurance 70/30% Co-Insurance Hospitalization $200 Individual Deductible ° (In-Patient) $600 Max Family Deductible 70/30% Co-Insurance then 85/15% Co-Insurance Hospitalization $100 Deductible Per Individual o (Out-Patient) $250 Max Family Deductible 70/30% Co-Insurance then 85/15% Co-Insurance Co-Pays: Retail Prescriptions $0—Generic No Deductible $20—Preferred Brand 70/30% Co-Insurance $40—Non-Preferred Brand Prescriptions Co-Pays: Mandatory Mail Order $0—Generic No Deductible 90 Day Supply of $20—Preferred Brand 70/30% Co-Insurance Maintenance Prescriptions $40—Non-Preferred Brand Page 9 Out-Of-Pocket Cost $500 Per Individual $700 Per Individual Excluding Co-Pays & $1,250 Max Family $1,750 Max Family Deductibles Lifetime Maximum Benefit=$2,000,000, unless otherwise required by law. * Employees and dependents covered by the CitiCare Fire Health Insurance Plan will be excluded from the drug formulary. ** Emergency Room Services. Will increase to $50.00 Co-Pay provided that 2 minor emergency clinics are included, one on the Southside of Corpus Christi and the other in the Calallen area. Should the number of minor emergency clinics fall below 2 for more than 90 consecutive days the Co-Pay will be $15.00. Other eligible services and eligible medical supplies as shown in the CitiCare Fire Health Insurance Plan document shall be covered at 85%/15% for primary network, $100.00 deductible/ $250.00 family maximum deductible and 80%/20% for special services or $200.00 deductible/ $500.00 family maximum deductible and 70%/30% for out of network. When an expenditure is made toward a deductible and/or out-of-pocket requirements, it is cumulative in all three categories. Participating Provider Service Areas are those locations covered by a primary network; South Texas, Dallas/Ft Worth, Houston, San Antonio/Laredo and Austin. Out of Network is the use of any hospital, physician or other health care facility or professional that has not signed an agreement with the City or its health care administrator to provide services as the preferred provider. Should the number of hospitals available in the network fall below 2 for more than 90- consecutive days, the reimbursement percentage for out-of-network hospitalization shall be 80%/20%, deductibles shall be $100.00 per each covered individual, $300.00 family maximum, and out-of-pocket shall be $480.00 per each covered individual until the number of hospitals is at least two. Should the number of total physicians in the network fall below 300 for more than 90- consecutive days, the reimbursement percentage for out-of-network physician services, laboratory services and x-rays shall be 80%/20%, the deductible shall be $100.00 per each covered individual, $300.00 family maximum, and out-of-pocket shall be $480.00 per each covered individual until the number of physicians in the network is 300. Should the number of network physicians in any one specialty remain for more than 90- consecutive days below 50% of the number of network physicians who were in the network in that specialty on October 1, 2012, out-of-network physicians services in that specialty shall be Page 10 reimbursed at 80%/20%, the deductible shall be $100.00 per each covered individual, $300.00 family maximum and out-of-pocket shall be $480.00 per each covered individual until the number of network physicians in that specialty increases to at least 50% of the number who were in the network in that specialty on October 1, 2012. Provided however, that a covered individual who was being treated by a network physician within 90-consecutive days before the day the number fell below 50% shall pay the Primary Network Physicians' Services Co-Pay rate for that treating physician's services for up to 90-consecutive days after the number fell below 50% if that treating physician has become an out-of-network provider. The City shall pay 100% of the employee's premiums and 50% of the premium for dependent coverage. Premium rates shall be determined by the City based on the cost of the plan. The City has the authority to restructure benefits, with the exception of hospitalization deductibles, maximum out of pocket amounts and reimbursement percentages. The City also has the authority to restructure network composition of the preferred provider network. The City retains the right to negotiate with insurance and/or medical providers for benefits, coverage and administration under CitiCare Fire Health Insurance Plan. The benefits in the out-of-network portion of the plan may not be changed unless negotiated and agreed upon by the City and the Association. The purpose of premiums is to generate revenues to cover claim costs. Co-pays are not intended to generate revenues. D. Provisions Applying to All Offered Plans as of August 1, 2012. HPV vaccinations up to age 25 will be covered at 100% up to a $500 annual maximum benefit and not subject to any co-pay or cost sharing provision. The routine mammography benefit will have a per procedure maximum benefit of$150 not subject to any co-pay or cost sharing provision. Benefits for Hospice Care, both facility and home based care, will be covered as any other illness, maximum of ninety(90) days coverage per lifetime. Benefits for Home Health Care and Skilled Nursing Facility Care will be covered as any other illness, maximum of ninety(90) days coverage per plan year. 1. Retiree Health Insurance Coverage. Employees who retire under the conditions of disability in accordance with the Corpus Christi Firefighters Retirement System or Social Security or under regular retirement under the Corpus Christi Firefighters Retirement System or under Social Security after ten (10) years of continuous service with the City, along with their participating dependents covered on the last day of employment, shall be eligible to continue participation in the City's CitiCare Fire Health Insurance Plan at monthly premiums subject to periodic changes in rates as required in the agreement. The total cost of Page 11 such continued coverage shall be paid entirely by the employee and/or spouse. The spouse's rights shall continue after the employee's death, but shall terminate upon divorce. Coverage shall remain in force for the retiree while paid until he or she becomes eligible for Medicare or reaches age 65 at which time coverage in the CitiCare Fire Health Insurance Plan will cease. While the retiree remains in the City's CitiCare Fire Health Insurance Plan, or fully insured plan offerings for Medicare eligible retirees, coverage shall remain in force for the spouse while paid until he or she becomes eligible for Medicare or reaches age 65 at which time coverage in the CitiCare Fire Health Insurance Plan shall cease. Coverage shall remain in force for the retiree's participating dependent children while paid until they become ineligible as defined in the plan at which time coverage in the CitiCare Fire Health Insurance Plan shall cease. Medicare eligible retirees and their Medicare eligible dependents will be eligible to participate in the City's fully insured plan offerings for Medicare eligible retirees. 2. The City agrees to pay to the Union a contribution equal to $30.00 month per employee, which the Union agrees to use for supplemental insurance programs for active or retired Firefighters. In addition, the City shall pay to the Union August 1, 2008, and each August 1 thereafter $150,000 for the Corpus Christi Firefighters Health and Benefit Trust. Effective August 1st, 2009, the parties agree to use a contribution escalator for the contribution of the city equal to the base pay percentage increase afforded members of the bargaining unit during the fiscal year. 3. The City shall provide basic life insurance coverage for each Firefighter equal to the Firefighter's annual salary. ARTICLE IV DURATION AND CONCLUDING PROVISIONS Section 1. Duration. This agreement shall be effective as of date of signing and shall remain in full force and effect until June 8, 2015. This agreement shall expire on June 8, 2015. Section 2. Severability. If any article or section of this agreement should be found invalid, unlawful, or unenforceable by reason of any existing or subsequent enacted legislation or by judicial authority, all other articles and sections of this agreement shall remain in full force and effect for the duration of this agreement. Section 3. Conflict with Civil Service Statute. To the extent that any of the provisions of the agreement conflict with Chapter 143 or any other State Civil Service Statute, the provisions of the agreement shall control and the applicability of such statutes are altered accordingly. Page 12 Section 4. Copies of Agreement. The City shall provide sufficient copies of this agreement, without alteration, so that every employee covered herein shall have a copy. The City shall be responsible for the distribution of the copies of this agreement to members of the bargaining unit within 90 days of ratification and Union Negotiating Team members signatures. Page 13 CONCLUDING PROVISION IN WITNESS WHEREOF, we have executed this agreement this day of , 2014. CITY OF CORPUS CHRISTI CORPUS CHRISTI FIREFIGHTERS ASSOCIATION, LOCAL UNION 936 Ronald L. Olson, CITY MANAGER Carlos Tones, PRESIDENT Page 14