Loading...
HomeMy WebLinkAbout11 - MOU - Newport Beach Police Management AssociationCITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMEP Resource Management Division June 14, 1996 Cas) June 24, 1996 Council Agenda Item No. 11 BY THE CITY COUNCIL CITY OF NEWPORT BEACH, .JUN 2 4 ,. TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dennis Danner, Administrative Services Director 4.,b C—aq -5z SUBJECT: MEMORANDUM OF UNDERSTANDING - NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION DISCUSSION: The current agreement with the Police Management Association 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 going on for 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 Police Management Association was very cooperative and helpful in achieving this goal. The City and the Association reached tentative agreement on a new contract earlier this year. The new agreement will cover the period from January 1, 1996 through December 31, 1997. Following are the significant conditions of this agreement: 1. Compensation Adjustment: A. Effective the first pay period of July, 1996 - The City will pick up the full cost (1.75%) of the Employer PERS rate increase for the 1996-97 fiscal year. B. Effective the first pay period of January, 1997 - A total compensation adjustment equal to one-half of the amount needed to place the officers at the average total compensation of the top five law enforcement agencies in Orange County, using July, 1996 survey figures. Effective the first pay period of July, 1997 - A total compensation adjustment which will place the officers at the average of the total compensation of the top five law enforcement agencies in Orange County, using July, 1996 survey figures. Each of these adjustments should be approximately 2.0% of salary. r' 2. Revised Flex Leave and Vacation/Sick Leave Accrual Schedule: A. 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, 1996. An additional day will be eliminated from each accrual range effective the first pay period of January, 1998, if the salary for the benchmark position is at or above the average of the top five agencies in Orange County, (total compensation - salary, retirement and health insurance). B. Employees hired after June 30, 1996 will accrue flex leave at the following rates: Proposed Accrual Years of Service Rate (Days per Yearl 1 but less than 5 15 5 but less than 10 18 0 but less than 15 21 15 but less than 20 23 20 and over 25 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, 60 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 $400 per year for safety personnel which is 40% of the proposed non - sworn reimbursement amount of $1,000. The current benefit for safety personnel is $885, which is 40% of the current cap of $2,213. 6. Floating Holiday: There will be no reduction in holidays, however, the flex leave and vacation/sick leave accrual rates are being adjusted, effective the first pay period of July, 1996, to reflect the elimination of the equivalent of one of two floating holidays. 7. July Fourth Overtime: Elimination of July 4th overtime, effective July 4, 1997, in conjunction with the full implementation of the compensation policy formula, except for those regularly scheduled off. In addition, sworn officers may request the day off which will be granted at the sole discretion of the Chief of Police. Estimated savings in 1997 is $18,000. 8. Bereavement Leave: Forty hours per incident. Language will be added to include the parents and siblings of spouses. 9. Administrative Leave: Captains may receive administrative leave up to 80 hours per year at the recommendation of the Chief of Police with the concurrence of the City Manager in lieu of any other overtime compensation. 10. 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. 11. 109% Pay Off for Time: Upon separation through the duration of this contract. 12. 1959 Survivor Benefit: Amend contract with PERS to move to Level 3 and Level 4 1959 Survivor Benefit for Miscellaneous and Safety members respectively. 13. Internal Service Fund: The City is currently examining its Equipment Maintenance and Replacement Internal Service Fund for possible cost savings. One of the ideas proposed is de -centralizing or privatizing this activity for those departments with large vehicle fleets. 14. Me Too Clause: The City will reopen negotiations on the leave portion of the MOU if equivalent concessions are not realized in negotiations with all other employee organizations. 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 Police Management Association was the first to reach agreement with the City on achieving this goal. The approximate total costs of the proposed adjustments for the Police Management Association are calculated as follows: 1996-97 1997-98 1.75% PERS pick up (07-01-96) $ 53,000 $ 53,000 2.00% Increase (1-1-97) 30,000 60,000 2.00% Increase (7-1-97) 0 62,000 Total Cost 83 000 U7 5.0 00 The approximate total savings of the proposed adjustments for the Police Management Association are calculated as follows: 1996-97 1997-98 Flex -Leave Spillover Pay Savings $ 64,000 $ 66,000 Loss of one Flex -Leave Day 10,000 10,400 Health insurance buyout 6,000 7,000 Reduced Tuition Reimbursement 1,200 1,200 Elimination of July 4th overtime 0 18,000 Revised Flex -Leave Accrual Rates 0 0 Salary Step Reduction 0 0 Retiree Medical 0 0 Total Savings 81 20010$ 2,600 Thus the total net first year cost is $1,800 and the total net second year cost is $72,400 for a total net two year cost of $74,200. In addition to the above, the Police Management Association has agreed to a further one day reduction in the flex leave accrual rates on 1-1-98 if their total compensation is at the average of the top 5 law enforcement agencies in Orange County. It is currently estimated that this will require a further 2% to 3% adjustment in total compensation at that time, but will save the cost of an additional day off for the members of this association. RECOMMENDATION: It is recommended that the City Council approve the attached Memorandum of Understanding between the City and the Police Management Association which covers the period from January 1, 1996 through December 31, 1997. C:\WINWORD\DENNISWP\STAFFREP.DOC 06/18/96 10:18 AM r -- MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. The Newport Beach Police Management Association ("NBPMA"), a recognized employee organization, and the City of Newport Beach ("City',), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBPMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from January 1, 1996 to December 31, 1997 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. - General Provisions. A. Recognition. In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 7173, the City acknowledges that NBPMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in the following classifications or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBPMA. B. Duration of Memorandum. 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council C. necessary to implement this MOU shall be considered effective as of January 1, 1996. This MOU shall remain in full force and effect until December 31, 1997, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. Scope. 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 7173. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of the Police Department; (b) the establishment of standards of service; (c) to assign work to employees as deemed appropriate; (d) the direction and supervision of its employees; (e) the discipline of employees; (f) the power to relieve employees from duty for lack of work or other legitimate reasons; 2 (g) to maintain the efficiency of operations; (h) to determine the methods, means and personnel by which Police Department operations are to be conducted; (i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; (j) the exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. D. Release Time. 1. NBPMA members shall be allowed to participate in the following activities and receive full pay ("Release Time"): (a) attendance at meetings, conferences, seminars or workshops related to matters within the scope of representation; (b) to prepare for, travel to, and attend scheduled meetings between the City and NBPMA during the meet and confer process. 2. City grants NBPMA 100 hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to 300 hours of City -provided Release Time. 3. City grants NBPMA members the right to engage in the activities described in subsection 1(b) at any time without reduction to the Release Time granted in subsection 2. 4. NBPMA shall designate certain members as those members entitled to release time. In no event shall any one designate be entitled to use more than 100 hours of Release Time (exclusive of actual time spent meeting with City representatives on matters relating to the 3 scope of representation), within any calendar year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time. Requests for release time shall be granted by the supervisor unless there are specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. E. Bulletin Boards. Space shall be provided on bulletin boards within the Police Department at their present location for the posting of notices and bulletins relating to NBPMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. F. No Strike. The parties recognize their mutual responsibility to provide the citizens of Newport Beach with uninterrupted municipal services and, therefore, for the term of this MOU, the parties agree not to conduct concerted strike, work slowdown, sickout, withholding of services, or lockout activities. G. Conclusiveness. This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 4 H. Modifications. Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. I. Savings. Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU. J. Impasse. In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 10 of Resolution No. 7173 or a successor resolution. SECTION 2. - Compensation A. Compensation Policy. 1. Intent The intent of this Policy is to maintain salaries and other components of the City's total compensation package at levels which will attract and retain highly qualified personnel as members of the Newport Beach Police Department. The City Council shall, in applying this compensation policy, take into consideration the following factors: (a) The City's then current economic position; (b) The City's standing in the defined labor market (law enforcement agencies in Orange County); (c) Changes in the cost of living as measured by increases or decreases in the Consumer Price Index; and; (d) Internal relationships. The City shall use its compensation policy, 5 tempered by sound fiscal policy, to maintain a highly competitive standing within the defined labor market with the understanding that the City's ability to make economic adjustments may be limited by budgetary considerations, constraints imposed upon the City by limitations in municipal revenues, or extraordinary expenditures. Taking all of these factors into consideration, it is the City's intent to compensate employees represented by NBPMA based upon the average of the five (5) highest paid benchmark positions of law enforcement agencies (all municipal police departments and the Sheriff) in Orange County. 2. Procedure The City shall annually evaluate the compensation of NBPMA members and, through the meet and confer process mandated by the Meyers -Mi 1 ias -Brown Act, will make appropriate modifications to total compensation. The procedure for evaluating the average of the five (5) highest paid benchmark positions in Orange County shall begin with the compensation survey prepared in July of each year by the Orange County Division of the League of Cities, subject to verification as to accuracy. The City will use this survey to determine the total compensation paid by other law enforcement agencies in Orange County to the benchmark position. The benchmark position shall be the top step non -specialty police officer, or Patrol Deputy Sheriff in the case of the County, and does not include police officer classifications such as Master Officers, Senior Officers, Corporals or similar special categories based upon any specific combination of experience, training or education. Total compensation shall consist of three factors: salary, retirement benefits (employer -paid retirement contributions including payment of employee's share) and health insurance contributions. Salary and retirement benefits shall be calculated using the amount paid to, or on behalf of, the benchmark position. Health insurance contributions shall be calculated based upon the maximum contribution made by the employer on behalf of an employee with two or more dependents who is enrolled in the health plan having the largest number of employee participants. The total compensation paid to the five (5) highest paid benchmark positions shall be added and the total divided by five without regard to weighting or the number of officers or employees of the law 6 enforcement agencies with the five (5) highest paid benchmark positions. Once the appropriate increase in total compensation for the benchmark position is determined, City shall calculate the corresponding increase in salary for the benchmark position. Salaries for all NBPMA represented classifications shall then be adjusted by applying the multipliers in the matrix (Exhibit "B") to the new salary paid to the benchmark position. Term of Compensation Polic This compensation policy shall survive the term of this MOU and shall remain in full force and effect unless and until modified by the parties in writing. B. Direct Wage Payments 1. Pay for Time Worked (a) Salary Adjustments. The parties have agreed on internal relationships among the various classifications represented by NBPMA, as well as the relationship between each step in those classifications and the benchmark position. These internal relationships have been computed in terms of numbers which, when multiplied by the salary paid to the benchmark position, represent the salary paid to members of NBPMA. The multipliers for each step of each classification represented by NBPMA are shown on the matrix attached as Exhibit "B." The matrix shall be effective on January 1, 1996. The salaries of all NBPMA members shall, during the term of this MOU, be subject to the following guaranteed adjustments: (i) Effective July 1, 1996, the City shall pay the increase in the employer retirement rate for all NBPMA members without any corresponding reduction in salary for any NBPMA member. (ii) Effective the first pay period of January 1997, the total compensation for the benchmark position shall be increased by fifty percent (50%) of the difference between then current total compensation due to the benchmark position based on the compensation formula and the average total compensation of the five (5) highest paid benchmark positions of law enforcement agencies in Orange County with the ranking and average total compensation of the five (5) highest paid benchmark positions to be calculated on the basis of total compensation paid by each law enforcement agency on July 1996. Total compensation for all other classifications represented by NBPMA shall be adjusted in accordance with the matrix. The remaining 50% adjustment necessary to reach the average of the top five agencies based upon July 1996 comparison figures shall be provided the first pay period in July 1997. (b) Subsectuent Adjustments. Any Adjustment in total compensation to be effective on or after January 1, 1998 shall be determined in accordance with the compensation policy specified in Section 2 or the then current MOU. (c) Salary Steps Effective April 1, 1996, two additional steps (designated A and B with existing salary steps redesignated C through H) shall be added to the compensation schedule for each classification represented by NBPMA. The first salary step (A) shall specify a salary for the classification that is ten percent (10%) lower than the current first step in the salary range. The second additional step (B) shall specify a salary that is five percent (5%) lower than the current salary for the first step in the salary range. Existing rules relative to the time of step increases and advancement shall be applicable to the two new additional steps. (d) Code Seven/Duty Incentive Time. The City and NBPMA have agreed to entitlement to compensation for duty incentive time and Code Seven time based upon implementation of the 9/80 work schedule (since modified to 3- 12, with concurrence of NBPMA) and a settlement agreement between the City and 8 NBPMA. NBPMA and its members agree that the provisions and rules relative to entitlement to compensation for duty incentive time or Code Seven time survive the termination of this MOU, that the provisions of the settlement agreement are in full force and effect, and that no request for compensation for duty incentive time or Code Seven time at variance with the provisions of existing rules or the settlement agreement shall be made at any time in the future by NBPMA or any of its members. (e) Overtime (i) Employees shall be entitled to overtime compensation at the rate of time and one half for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. (ii) Overtime compensation shall be in the form of compensatory time off or pay at the election of the employee. Maximum compensatory time accrual shall be 91 hours. All overtime worked for employees at the CTO maximum shall be paid. (iii)Effective July 4th, 1997, NBPMA members shall not receive overtime compensation for working on July 4th, except for those regularly scheduled off on that day. Sworn officers may request that they not be required to work on July 4th. Such requests shall be granted or denied in the sole discretion of the Chief of Police. NBPMA reserves the right to reopen negotiations on this section for successor agreements should it feel that satisfactory agreements have not been reached on compensation matters. (iv) As of the effective date of this MOU, NBPMA members occupying the position of Captain shall not be entitled compensatory time off for overtime. City and NBPMA agree that the position of Captain is properly considered exempt 9 from the overtime requirements of FLSA. However, NBPMA members occupying the position of Captain shall be eligible for up to 80 hours of administrative leave per calendar year. The precise amount of administrative leave grant each Captain shall be based upon the recommendation of the Police Chief and approved by the City Manager. Administrative leave for 1996 may be granted, if at all, within 30 days after the effective date of this MOU. Administrve leave may not be carried forward from one calendar year to the next. V. With the approval of the Chief of Police, NBPMA members assigned to non -duty assignments, may work certain holidays if they are regularly scheduled work day. 2. Additional Compensations (a) Scholastic Achievement Pay. Sworn NBPMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). Sworn NBPMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Chief of Police. It is the responsibility of the NBPMA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic achievement pay is contingent upon years of service and the number of units and/or degrees received by the employee. The Plan consists of five levels which reflect multipliers of the base scholastic achievement pay of $48.00 per month. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. The following is a schedule of monthly payments pursuant to the Scholastic Achievement Program: 10 Years of Service: 30 Units: 60 Units: 90 Units: BAB MA/MS/JD: 2 $48/mo. $48 $48 $48 $48 3 $48/mo. $96 $144 $192 $192 4 $48/mo. $96 $144 $192 $240 (b) Holiday Pay. NBPMA members shall accrue 96 hours of holiday time fiscal year (July 1 through June 30th), at the rate of 3.7 hours per pay period. NBPMA members may use holiday time as paid time off work convert holiday time to flex leave or vacation leave, or receive pay for holiday time as specified in this Section. NBPMA members who have not used all holiday time accrued during any fiscal year shall, during the month of July, elect either to convert unused holiday time to flex leave(or vacation leave if the member is in the vacation leave/sick leave program) or to be paid for unused holiday time at the members normal hourly rate of pay, provided, however, NBPMA members shall not be entitled to convert holiday time to flex leave to the extent that the conversion would cause the amount of flex leave accrued to exceed the Flex Leave Accrual Threshold. In the absence of an election during July, the members shall receive pay for unused holiday time at their normal hourly rate. NBPMA members who elect to receive pay for unused holiday time shall receive compensation in their paycheck for the last pay period in August. In no event shall any NBPMA member be entitled to receive holiday pay until serving at least thirty (30) consecutive calendar days in active paid status. (c) Leave Pay -Off For the term of the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. 11 Section 3. - Leaves A. Pay for Time Not worked. 1. Flex Leave. (a) Subject to the NBPMA members follows: Years of Con't. Svc.: provisions of subsection (b), shall accrue flex leave as Adjusted Accrual Per Pay Period: 1/2 but less than 5 5.84616 5 but less than 9 6.46152 9 but less than 12 7.07696 12 but less than 16 7.69232 16 but less than 20 8.30768 20 but less than 25 8.92304 25 and over 9.53848 Effective the first full pay period in July 1996, these accrual rates shall be adjusted as follows: Years of Con't. Svc.: 1/2 but less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Adjusted Accrual Per Pay Period: 5.53846 6.15385 6.76923 7.38462 8.00000 8.61538 9.23077 Effective the first full payroll period in January 1998, NBPMA members shall accrue flex leave at the following rates if total compnsation for the benchmark position is at least equal to the erage of the top five law enforcement agencies in Orange County: Years of Con't. Svc.: 1/2 but less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 WN Adjusted Accrual Per Pay Period: 5.23077 5.84616 6.46152 7.07696 7.69232 8.30768 25 and over 8.92304 (b) NBPMA members hired, or rehired, by the City of Newport Beach on or after July 1, 1996 shall accrue flex leave at the following rates: Years of Service 1/2 but less than 5 5 but less than 10 10 but less than 15 15 but less than 20 20 and over Accrual Rate Per Pay Period 4.61538 5.53846 6.46152 7.07696 7.69232 NBPMA and the City acknowledge that employees assigned the 9/81 work schedule accrue one (1) additional pay period in addtion to the accrual levels set forth above. (c) The Flex leave program shall be administered as follows: (i) NBPMA members shall not accrue flex leave until continuously employed by the Newport Beach Police Department for a period of six (6) months provided, however, if a member on the flex leave program becomes sick during the first six months of employment, the City will advance up to thirteen (13) pay periods of paid leave time for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing six months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. NBPMA members shall accrue thirteen pay periods of flex leave immediately upon completion of six (6) months continuous employment with the Newport Beach Police Department, provided however, this amount shall be reduced by any flex leave time advanced during the first six months of employment. 13 (iii)Members employed by the City prior to initiation of the flex leave program have had then current accrued vacation time converted to flex leave on an hour for hour basis with then current sick leave placed in a bank to be used as provided in Section 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution must notify appropriate department personnel of their intention to access the sick leave bank and, in the absence of notification, absences will be charged to the member's flex leave account. Members who wish to convert an absence from flex leave to sick leave must submit a written request to the Chief of Police within twenty (20) days after the absence (20 days from the last absence in the event the member was continuously absent for more than one day) specifying the nature of the illness and the person notified of the intent to use sick leave, or the reasons for the failure to notify appropriate department personnel. The Chief of Police shall grant the request for conversion if the member submits a written statement signed by his or her attending physician confirming the illness and the Police Chief determines that the member's failure to notify appropriate departmental personnel was reasonable under the circumstances. (iv) NBPMA members shall be entitled to accrue flex leave up to seventy (70) times the members bi-weekly flex leave accrual rate (Flex Leave Accrual Threshold). NBPMA members first hired by the City prior to July 1, 1996, shall be paid for all flex leave that accrues in excess of the flex leave accrual threshold (Flex Leave Spillover Pay). Flex Leave Spillover Pay will be paid at the member's regular hourly rate,of pay. Effective during the first pay period of January 1997, calendar year NBPMA members who have not utilized at least 80 hours of flex leave during the prior calendar year (60 hours of flex leave for calendar year 1996 only) shall not accrue flex leave in 14 excess of the Flex Leave Accrual Threshold and shall not be entitled to Flex Leave Spillover Pay. NBPMA members first hired, or rehired by the City subsequent to July 1, 1996, shall not be eligible for Flex Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. (v) All requests for scheduled flex leave shall be submitted to appropriate department personnel. Flex leave may be granted on an hourly basis. In no event shall a member take or request flex leave in excess of the amount accrued. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. 2. This section is intended to effect a reduction of vacation and sick leave accrual rates that is commensurate with the reduction in flex leave accrual rates. The combined vacation and sick leave accrual is greater than flex leave accrual and the parties intend the reductions in annual vacation accrual to be commensurate to the annual reduction in flex leave accrual contemplated by Section 3.B.1. Effective the first pay period in July 1996, vacation accrual rates shall each be reduced by eight (8) hours per year. In the event total compensation for the benchmark position is equal to, or exceeds, the average total compensation of the five highest paid benchmark positions of law enforcement agencies in Orange County, as of January 1, 1998, vacation leave accrual shall be reduced an additional eight (8) hours. B. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by employee having regular or probationary appointment because of the death or terminal illness in his/her immediate family. NBPMA shall be entitled to 40 hours of bereavement leave per 15 incident (terminal illness followed by death is considered one incident). Parents and siblings of spouses shall be considered part of the immediate family for the purposes of this section. C. Workers Compensation Leave Any employee incapacitated by reason of any injury or illness that City has determined arose out of or in the course of his or her employment shall receive, in addition to temporary disability compensation pursuant to the laws of the State of California, an additional sum which, when added to temporary disability payments, provides the injured employee with regular compensation. Regular compensation is defined as the salary for the position and step occupied by the employee on the date of the job-related illness or injury. Payment shall commence with the first day of approved absence and end with the termination of temporary disability, or the expiration of six (6) months, whichever occurs first. Except as expressly provided in this MOU, the payments which supplement temporary disability compensation shall be made as provided in the Personnel Resolution. SECTION 4. - Retirement A. Retirement Benefits. 1. The City shall pay each member's required PERS retirement contribution (9% of salary for sworn employees and 7% for non -sworn employees). City payments pursuant to this Section shall be deemed to be member contributions under the Public Employees Retirement System and recoverable by the member as such in accordance with the rules and regulations promulgated by PERS. These amounts will be reported to PERS monthly as special compensation for retirement purposes. 2. Effective May 1996, the City shall implement the Level 4 1959 survivors benefits for NBPMA members. SECTION 5. - Fringe Benefits. A. Health/Dental Insurance. 1. The City shall make available to all NBPMA members the PERS health insurance programs and a second health care plan City shall pay the health and dental premium for each NBPMA member, up to a maximum of $400 per month. IV 2. 3. EN Information Committee. City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. Medical Opt Out NBPMA members who do not want to enroll in any health care plan offered by the City, provide evidence of health care insurance coverage, other carriers, and execute an agreement releasing the City from any responsibility or liability to provide health care insurance coverage, shall receive in lieu of the $400 contribution towards the premium for Coverage offered by City sponsored health care providers in lieu health coverage payment of $200 per month. Employees may re -enroll in any of the City's available health plans per the rules of those plans. Retiree Medical Insurance The parties agree that during the term of this Agreement, the maximum combined contribution by the City and active employees for retiree medical insurance shall not exceed $400.00 per month. (City contribution limited to two-thirds (2/3) of $400.00 with the active employees paying one-third (1/3) . Further, the City and Association agree to work, through a City wide committee, on a variety of issues involving retiree medical insurance in an attempt to achieve cost containment and equity amongst the City's retiree medical programs. 17 B. Short Term Disability/Long Term Disability. 1. Short Term Disability. The City currently administers a short term disability plan funded through a combination of employee and employer contributions. A NBPMA member shall pay the full cost of any short term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. A NBPMA member shall pay fifty percent (50%) of any short term disability premium when he or she has accrued between 160 hours and 319 hours of flex leave and/or sick leave. City shall pay all of any member's short term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The plan provides up to two-thirds of a member's salary for a period of up to six months post -disability provided the employee has used available sick leave and a portion of accrued paid leave. City shall have the right to re -open this MOU to meet and confer regarding the transfer of the responsibility for administration, and the manner of funding, of the short term disability plan. The City shall continue to self-administer the short term disability plan until the parties reach agreement regarding appropriate amendments. 2. Lona Term Disability. The City currently provides long term disability protection through an insurance company. This plan is funded through a combination of employee and employer contributions. A NBPMA member shall pay the full cost of any long term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. A NBPMA member shall pay fifty percent (50%) of any long term disability premium when he or she has accrued between 160 hours and 319 hours of flex leave and/or sick leave. City shall pay all of any member's long term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The City shall have the right to re -open this MOU to meet and confer relative to the provision of long term disability coverage. In the absence of any agreement to the contrary, the City will use its best efforts to continue to provide long term disability coverage through qualified insurance carriers or companies. 18 3. Income Ceilings/Payment of Premiums. The ceiling on insured income under the short term and long term disability plans will be $7,500 per month for non -industrial claims. The maximum benefit shall be $5,000 per month. The maximum benefit for industrial injuries shall be $1,750.00 per month. The City will pay one-third (1/3) of the cost of a member's health, dental and life insurance premiums when the member has at least five (5) years of continuous service with the City and is on approved disability leave of absence. The City will pay two-thirds (2/3) of the cost of health, dental and life insurance premiums for an employee with ten (10) years of continuous service who is on approved disability and the City will pay the entire cost of those premiums for an employee with fifteen (15) or more years of continuous service not to exceed the amount paid for active employees. C. Section 125 Plan. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income by City payment of allowable expenses such as child care and medical expenses. City shall, maintain a "reimbursable account program in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an NBPMA member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account, with the base salary of the employee reduced by the amount designated by the employee to be placed into that account. The City's obligation to establish a reimbursable account program is contingent upon the City incurring no cost or potential liability relative to the plan or its administration. City shall cooperate to the fullest extent of the law provided, however, City may require the plan to contain provisions that authorize the administrator to pay allowable expenses only upon submittal of a demand from the City. Any "reduction" in salary pursuant to this Section and/or the Section 125 Plan established by the City, shall not affect any other provision of this MOU. D. Emplovee Assistance Program. City shall provide an Employee Assistance Program through a properly licensed provider. NBPMA members and 19 their family members may access the Employee Assistance Program at no cost subject to provider guidelines. E. Tuition Reimbursement. NBPMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job-related courses. Maximum tuition reimbursement for sworn personnel shall be $885.00 per year for fiscal years through 1995-96. Maximum tuition reimbursement for sworn personnel shall be $600.00 per fiscal year effective July 1, 1996. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Chief of Police and the Administrative Services Director. SECTION 6. - Miscellaneous Provisions. A. Schedule. 1. Employees who currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12, 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 schedule will be structured to allow for 130 days off during the calendar year. NBPMA members shall be entitled to eleven (11) days off for ten months of the year and ten (10) days off during two months of the year. The Chief of Police shall determine the months during which NBPMA members shall receive ten days off. The Chief of Police shall also have the right to alter the work schedule of any NBPMA member assigned to any multi -agency or regional task force. Upon notice, the parties shall meet and confer, in good faith, regarding the appropriate work schedule(s) for NBPMA members. 2. City shall have the right to designate a 14 day or 28 day work period pursuant to Section 29 U.S.C. 507(k) ("7 K Exemption"), provided, however, the 7 K Exemption shall not affect the City's obligation 20 to pay overtime pursuant to provisions of this MOU including the provisions of Section 1.(C)(1). The parties agree that the following procedures are consistent with good police practices, provide each NBPMA member with ample time to perform all required duties, and comply with the Fair Labor Standards Act: a) All Patrol Supervisors are required to report to work 15 minutes early; b) All Patrol Supervisors acknowledge and agree that normally, they are to leave at the end of their shift, that they shall not routinely perform duties beyond the end of their shift, that the 15 minutes allotted for briefing preparation is adequate, and they will comply with order issued by the Chief of Police consistent with this MOU; c) The 15 minutes per shift shall be converted to compensatory time on a straight time basis and placed in a compensatory time off bank which the member may use as flex leave, vacation leave or sick leave, but for which the member would not be paid at any time. B. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. (b) "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification 21 within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. (c) "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). (d) "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. (e) "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: (a) Temporary and probationary employees within any Classification shall, in that order, be 22 laid off before permanent employees. (b) Employees within a Classification shall be laid off in inverse order of seniority; (c) An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series. An employee who has Bumping Rights shall notify the Department Director within three (3) working days after notice of layoff of his/her intention to exercise Bumping Rights. (d) In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. Notice. Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re-EmQloyment . Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited 23 in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Personnel Director. 5. Severance Pay. Permanent employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach. C. Grievance Procedure. 1. Definition. The term "grievance" means a dispute between NBPMA or any member and the City regarding the interpretation or application of rules or regulations governing the terms and conditions of employment, any provision of the Personnel Resolution, any provision of Resolution No. 71-73, or this MOU. 2. Guidelines. Any NBPMA member may file a grievance without fear of retaliation or any adverse impact on any term or condition of employment. (a) A grievance shall not be filed to establish new rules or regulations, change prevailing ordinances or resolutions, nor circumvent existing avenues of relief where appeal procedures have been prescribed. (b) A member may be self -represented or represented by one other person. (c) A member and any representative shall be given notice of the time and place of any grievance proceeding, the opportunity to be present at such proceedings, a copy of any written decision or communication to the employee concerning the proceedings, and any document directly relevant to the proceedings. (d) All parties shall engage in good faith efforts to promptly resolve the grievance in an 24 amicable manner. The time limit specified may be extended upon mutual agreement expressed in writing. (e) The procedures in this MOU represent the sole and exclusive method of resolving grievances. 3. Procedure A. Stems NBPMA members occupying the position of Sergeant or Lieutenant shall present any grievance to the supervising Captain, and may appeal the decision of the supervising Captain to the Chief of Police and City Manager by complying with the procedures in this subsection. Any member occupying the position of Captain shall present any grievance to the Chief of Police, and may appeal the decision to the City Manager by following the procedures outlined in this subsection. The decision of the City Manager shall be final. B. Written Notice All grievances shall be submitted in writing. The grievance shall be submitted within ten (10) working days after the member knew, or in the exercise of reasonable diligence should have known, of the act or events upon which the grievance is based. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by the member. All appeals shall be in writing and, in addition to the matters which must be stated in any grievance, shall specify the decision or decisions which form the basis of the appeal. Grievances and appeals shall be deemed submitted when personally delivered to the appropriate supervisor or the Chief of Police. C. Hearings/Meetings The appropriate supervisor, Chief of Police or City Manager shall meet with the member and any representative in an effort to resolve the grievance. The meeting shall be conducted within ten (10) working days after the appeal 25 or grievance is served. The meeting shall be informal and the discussion should focus on the issues raised by the grievance. Written decisions on the grievance or appeal shall be served on the employee within ten (10) working days after the meeting. 4. General Grievance. A general grievance affecting more than one NBPMA member may be filed by NBPMA on behalf of the affected employees with the Chief of Police. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by NBPMA. The Chief of Police shall meet with NBPMA representatives within ten (10) days following receipt of the grievance and provide a written decision on the grievance within ten (10) working days after the meeting. In the event NBPMA is dissatisfied with the decision of the Chief of Police, it may appeal to the City Manager by following the procedures outlined in Step 4 of the procedure applicable to employees. In the event NBPMA is dissatisfied with the decision of the City Manager, it may appeal the decision to the Civil Service Board by filing a written notice of appeal within fifteen (15) days after receipt of the decision. D. Re -opener. Should other employee groups not be required to agree to equivalent leave reductions by January 1998, the City agrees to reopen negotiations on the leave portion of this agreement only. The parties intent is to insure that equivalent leave reductions be applied to all employee organizations. Absent compensating factors (other reduction) if equivalent reductions are not achieved the stated intent is to adjust leave accruals consistent with those granted to other organizations. 26 Executed this day of , 1996: ATTEST: By: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: By: Steve Van Horn Fred Heinecke CITY OF NEWPORT BEACH By: John Hedges Mayor LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robert H. Burnham, City Attorney 27