HomeMy WebLinkAbout06 - MOU - Newport Beach City Employees Association and Employees League AssociationBY THE CITY COWi(
CITY F NEWPORT BE
JUL 2 21996
CITY OF NEWPORT BEACH
ADMINISTRATIVE SERVICES DEPARTMENT
Resource Management Division COUNCIL AGENDA
July 22,1996
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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dennis Danner, Administrative Services Director
SUBJECT: MEMORANDUMS OF UNDERSTANDING - NEWPORT BEACH
CITY EMPLOYEES ASSOCIATION AND EMPLOYEES LEAGUE
ASSOCIATION
DISCUSSION:
The current agreement with the City of Newport Beach Employees League Association
expired on June 30, 1995. The terms of the agreement were extended through June 30,
1996, with the mutual consent of the City and the Association while negotiations were
underway on a new agreement. It was the City's goal to provide a fair and competitive
salary and benefit package to the Association members while reducing certain benefits
that would achieve a long term significant cost savings to the City. The League
Association was very cooperative and helpful in achieving this goal.
The City and the League Association recently reached a tentative agreement on a new
contract. The new agreement will cover the period from July 1, 1995 through June 30,
1997.
The current agreement with the City Employees Association (CEA) expired on
December 31, 1995. The terms of the agreement were extended through June 30, 1996
with the mutual consent of the City and the Association while negotiations were
underway on a new agreement. The City's goals were the same as noted above for the
League, and CEA was most cooperative in achieving these goals.
The City and CEA recently reached a tentative agreement on a new contract. The
agreement will cover the period from January 1, 1996 to June 30,1997.
Following are the significant conditions common to both agreements:
1. Compensation Adjustment:
Effective the first pay period of July, 1996 the City will increase
covered classification salaries by three (3) percent.
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Flex Leave and Vacation/Sick Leave Accrual Schedule:
_... •
Current employees will accrue flex leave at the current accrual rates,
however, one day will be eliminated from each accrual range effective
the first pay period of July, 1997.
B. Employees hired after June 30, 1996 will accrue flex leave at the
following rates:
In addition, these employees will not be eligible for flex leave spillover
pay. Current flex leave accrual rates start at 19 days per year and top
out at 32 days per year with 25 years of service.
C. There will be a corresponding proportional adjustment in the
Vacation/Sick Leave accrual schedules.
D. Effective January, 1997, current employees will be eligible for flex leave
spillover pay only if they have used 80 hours of flex leave in the
previous 12 calendar months. (For calendar year 1997 only, 40 hours
must have been used in calendar year 1996).
3. Salary Step Reduction:
The entry level salary will be reduced by 10% by adding two lower 5%
steps.
4. Retiree Medical:
Agree to achieve cost containment of retiree medical insurance through
meetings of the Medical Advisory Committee. Cap at $400 per month
contribution by City and active employees.
5. Tuition Reimbursement:
Cap at $1,000 per year, effective July 1, 1996. The current benefit for non -
safety personnel is $2,213 per year. •
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Proposed Accrual
Years of Service
Rate (Days ver Year)
1 but less than 5
16
5 but less than 10
18
0 but less than 15
21
15 but less than 20
23
20 and over
26
In addition, these employees will not be eligible for flex leave spillover
pay. Current flex leave accrual rates start at 19 days per year and top
out at 32 days per year with 25 years of service.
C. There will be a corresponding proportional adjustment in the
Vacation/Sick Leave accrual schedules.
D. Effective January, 1997, current employees will be eligible for flex leave
spillover pay only if they have used 80 hours of flex leave in the
previous 12 calendar months. (For calendar year 1997 only, 40 hours
must have been used in calendar year 1996).
3. Salary Step Reduction:
The entry level salary will be reduced by 10% by adding two lower 5%
steps.
4. Retiree Medical:
Agree to achieve cost containment of retiree medical insurance through
meetings of the Medical Advisory Committee. Cap at $400 per month
contribution by City and active employees.
5. Tuition Reimbursement:
Cap at $1,000 per year, effective July 1, 1996. The current benefit for non -
safety personnel is $2,213 per year. •
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6. Floating Holiday:
Effective the first pay period of July, 1996 the Birthday floating holiday shall
be eliminated.
7. Bereavement Leave:
Forty hours per incident. Language will be added to include the parents of
employees and siblings of spouses.
8. Medical Insurance:
Any employee may opt out of the insurance plan offered by the City and
receive $200 per month with proof of insurance and a signed hold harmless
statement. Employee may re -enroll subject to plan rules.
9. 1959 Survivor Benefit:
Amended contract with PERS to move to Level 3 of the 1959 Survivor
Benefit.
i10. Disability Insurance:
Participation in a City-wide committee to restructure the existing disability
insurance -leave program to meet the existing minimums provided by State
law.
ANALYSIS:
As stated previously, in entering negotiations this year with the various employee
organizations, it was the City's goal to provide a fair and competitive salary and benefit
package to the association members while reducing certain benefits that would achieve
a long term significant cost savings to the City.
The approximate total costs of the proposed adjustments for the City Employees and
League Associations are calculated as follows:
3.00% Salary Increase (7-1-96)
Increased Benefit Cost
• Total Cost
CEA
League
$223,000
32,000
$255.0
3
The approximate total savings of the proposed adjustments for the City Employees and •
League Associations are calculated as follows:
Thus the total first year cost for both associations is $375,000 while the total first year
savings (excluding the loss of one Flex Leave Day on 7-1-97) is $145,800 for a total net
first year cost of $229,200.
RECOMMENDATION:
It is recommended that the City Council approve the attached Memorandums of
Understanding between the City and the City Employees Association and the City
League Association which both expire on June 30,1997.
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CEA
League
Loss of one Floating Holiday (7-1-96)
$ 10,000
$ 30,000
Loss of one Flex -Leave Day (7-1-97)
10,000
30,000
Flex Leave Spillover Pay Savings
16,200
17,300
Health insurance buyout
6,000
6,000
Reduced Tuition Reimbursement
3,000
6,200
Revised Flex -Leave Accrual Rates
4,300
8,700
Salary Step Reduction
15,300
22,800
Retiree Medical
0
0
Total Savings
$ 64,800
$121.00
Thus the total first year cost for both associations is $375,000 while the total first year
savings (excluding the loss of one Flex Leave Day on 7-1-97) is $145,800 for a total net
first year cost of $229,200.
RECOMMENDATION:
It is recommended that the City Council approve the attached Memorandums of
Understanding between the City and the City Employees Association and the City
League Association which both expire on June 30,1997.
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