HomeMy WebLinkAbout17 - MOUs & EPMC(1)
TO:
CITY OF
NEWPORT BEACH
COUNCIL STAFF REPORT
Agenda Item No. 17
January 22, 2013
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiffQnewportbeachca.gov
Human Resources Department
Terri L. Cassidy, Deputy City Manager /Human Resources Director
949 - 644 -3303, tcassidy @newportbeachca.gov
PREPARED BY: Terri L. Cassidy, Deputy City Manager /HR Director
Maggie Williams- Dalgart, Human Resources Analyst
APPROVED: � A"
TITLE: Resolutions Nos. 2013 -7, 2013 -8, 2013 -9, and 2013 -10: Adopting
Memoranda of Understanding with Miscellaneous Bargaining Units
(3) and the Unrepresented Key & Management Compensation Plan;
and Resolution 2013 -11: Modifying the Reporting of the Value of the
Employer Paid Member Contribution (EPMC)
ABSTRACT:
The City's negotiators and representatives from the City Employees Association,
Professional and Technical Employees Association, and Employees League, have been
meeting and conferring since July 2012 on the terms of successor memoranda to the
ones that expired June 30, 2012. On December 17, 2012 the City and the City
Employees Association and Professional and Technical Employees Association
reached a Tentative Agreement on Memoranda of Understanding for the term July 1,
2012 through June 30, 2015. On December 19, 2012 the City and the Employees
League reached a tentative agreement for a Memorandum of Understanding for July 1,
2012 through June 30, 2015. The City Council's ratification of the MOUs is the final
step in the Meet and Confer process, completing the agreements. Changes to the Key
& Management Compensation Plan are proposed in conjunction with adoption of the
miscellaneous Memoranda for parity reasons and as referenced in MOUs or City
policies.
RECOMMENDATION:
1. Approve Resolutions adopting Memoranda of Understanding (MOUs) between
the City of Newport Beach and the City Employees Association (Attachment A);
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 2
between the City of Newport Beach and the Professional and Technical
Employees Association (Attachment B); and between the City of Newport Beach
and the Employees League (Attachment C).
2. Approve a Resolution adopting the Key & Management Compensation Plan
(Attachment D), effective July 1, 2012 through June 30, 2015.
3. Adopt a Resolution (Attachment E) eliminating reporting the value of the
Employer Paid Member Contribution (EPMC) to the California Public Employees'
Retirement System (PERS), as provided in the Memoranda of Understanding
and the Key & Management Compensation Plan.
FUNDING REQUIREMENTS:
See financial information in the body of the discussion text
DISCUSSION:
CEA. Professional Technical and Leaaue Negotiations
Beginning in July 2012, representatives from the CEA/Professional Technical
Associations began meeting and conferring with City representatives. Between the two
exclusively recognized bargaining units, these Associations represent approximately
180 employees of diverse classifications /job families. For reasons of common interests
and for efficiency, the negotiations were conducted concurrently and this encouraged
frank and productive discussions regarding the City's organizational and fiscal goals in a
collaborative manner. The parties met for nine (9) sessions before reaching
comprehensive Tentative Agreement.
Beginning in September 2012, representatives from the Employees' League began
meeting and conferring with City representatives. This unit of primarily field
classifications represents 139 employees. The negotiations were collaborative and
informative from both perspectives. The parties met for seven (7) sessions before
reaching comprehensive Tentative Agreement.
In keeping with the stated Total Compensation Philosophy adopted by the City Council
in Resolution 2011 -55, one of the key objectives of the negotiations was to move toward
achieving a 50/50 cost sharing between the City and the employees of the Public
Employees' Retirement System (PERS) costs. In order to achieve this goal, a minimum
of 4.35% over the current 8% contribution needed to be paid by the employees. In
addition, City /Association representatives discussed different tiers of retirement
formulae and levels of contributions for employees in accordance with the Public
Employees Pension Reform Act (PEPRA) that became effective January 1, 2013.
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 3
The City of Newport Beach now has three (3) tiers of retirement formulae:
Tier 1: 2.5%(a)55 for PERS covered employees hired on or before November 23, 2012;
Tier 2: 2.0 %an60 for new PERS covered employees hired on or after November 24,
2012 (or laterals from other PERS agencies who meet certain requirements). This
second tier was agreed upon in the last Meet & Confer process in 2010;
Tier 3: 2.0 %an62 for new PERS covered employees hired after January 1, 2013 under
PEPRA (mandated by AB 340).
The establishment of the second and third retirement tiers, along with the payment of
additional retirement contributions by all miscellaneous employees supports the City's
Fiscal Sustainability Plan (Resolution 2010 -4) and is consistent with the mutual goal of
labor and management to keep the organization strong. Tiers 2 & 3 will help reduce the
City's PERS liability /contributions over time and this will be reflected in the annual
PERS actuarial valuation.
In accordance with the Government Code Section 54957.6, Brown Act, authorizing the
City Council to confer with the City's designated negotiators (Dave Kiff and Terri
Cassidy), the City and its respective bargaining units reached tentative agreements that
include the following provisions:
• Term of three (3) years (retroactive to July 1, 2012 and expiring June 30, 2015);
• Elimination of reporting the value of the 2.42% Employer Paid Member
Contribution (EPMC) upon adoption of the agreement;
• Additional employees contributions toward the PERS retirement benefit, with total
employee contributions equaling:
June 30, 2013 — 9.45%
June 30, 2014 — 10.90%
June 30, 2015 — 12.35%
• An increase of the Flex Leave benefit by 12 hours per year and a holiday pay
benefit equal to the employee's work day (previously, employees on a 9 hour
workday schedule were required to use one hour of Flex Leave on a holiday in
order for the holiday pay to equal 9 hours);
• An increase of $100 per month to the current $1,249 monthly benefit in January
2013, 2014 and 2015 to offset anticipated increases in health insurance
premiums. Contributions to the employee cafeteria allowance are used for the
purchase of medical, dental, vision insurance, deferred compensation, or taken
as cash. Effective 2013, the maximum contribution for employees that "opt -out"
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 4
of medical will be $1,249 for current employees and $600 for employees hired
after MOU adoption;
• Cost -of- living adjustments based on the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the twelve month period
ending October 31, as follows:
January 1, 2013 - 1.5% to 2.5%
January 1, 2014 - 1.5% to 2.25%
January 1, 2015 - 1.5% to 2.0%
• Changes to the Certificate Pay program for all three bargaining units
(reductions, conversions to flat dollar amounts rather than percentage based,
and the addition of pay incentive for highly skilled certificates);
• Tuition Reimbursement increase of $100 per year, for a maximum annual
benefit of $1,500;
• Contract reopeners on contracting out City services, the Fox Lawson
classification and compensation study, and healthcare reform, all of which may
impact employee wages, benefits, or other terms and conditions of employment;
• Other changes include: Severance Pay capped at 10 weeks (Prof Tech only; all
other units already have a 10 week cap); an increase in association Release
Time; modifications to the Uniform policy for CEA/Prof Tech; a cap on the Night
Standby benefit for Utilities; and the addition of Standby for IT staff required to
be on -call during the weekends.
At the time of print of this agenda item the membership of the respective associations
are in the process of ratifying the agreements by majority vote, as required by their by-
laws. Each agreement does not become effective, per Government Code §3505.1, until
the governing body, i.e., City Council, takes action to adopt it. MOU language changes
are noted in italics in the respective MOUs, which will be published after adoption.
Unrepresented Group
The Key & Management group consists of unrepresented supervisory, managerial and
confidential employees, including certain managerial positions in public safety. To
maintain equity, the City has historically provided Key & Management with the same
changes to compensation and benefits as employees in CEA, Prof Tech and League.
The proposed Key & Management Compensation Plan for the period July 1, 2012
through June 30, 2015, establishes pay and benefit at the same level as the other three
bargaining units, as follows: total employee retirement contributions of 12.35 %; monthly
cafeteria increase of $100 effective in January 2013, 2014 and 2015; and cost -of- living
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 5
adjustments of 1.5% - 2.5 %, 1.5% - 2.25 %, and 1.5% - 2.0% effective in June 2013,
2014, and 2015 respectively. The COLA will not apply to the Executive Management
ranges due to recent City Council action adopting a new compensation structure for that
group. The changes to the Key & Management Plan are listed in italics on the attached
document (Attachment D).
The City's Miscellaneous part-time staff are effectively unrepresented by an active
bargaining unit. Historically, pay and certain benefits for many of the part-time positions
have been tied to the pay and benefit adjustments received by the Miscellaneous units.
Given the above status, the City is unable to negotiate new pay and benefit terms at this
time. Once representational issues are addressed by the City Attorney's Office,
including possible adjustments and additional PERS pick up for part-time staff, a
recommendation will be made.
Per Government Code §20636 (c)(4), in order to implement changes to employee
contributions toward retirement benefits, the City Council must adopt a resolution for
each employee group specifying the terms of the change. The attached resolutions
(Attachment F) eliminate reporting the value of the City's payment of the Member
Contribution (referred to as the Employer Paid Member Contribution or EPMC) for
employees represented by CEA, Prof Tech, League, the Key & Management group and
part-time classifications.
If the City Council approves adoption of the three Memoranda of Understanding , the
Key & Management Compensation Plan, and part-time salary ranges and adopts the
resolutions necessary to implement the Employee Paid Member Contribution changes,
Human Resources and Finance Department staff will work to implement the provisions
as soon as practicable.
Public Notice:
Public notice was fulfilled with the posting of the agenda and report for this item.
Fiscal Impact:
The additional 4.35% employee contribution (amount contributed by end of contract)
from employees in CEA, League, Prof Tech and Key & Management toward the PERS
retirement benefit, will help offset the increased cost to the cafeteria benefit and cost -of-
living adjustments and provide a savings of nearly $1.5 million in retirement costs
between now and June 2015. Assuming all cost -of- living increases at the maximum
benefit (most costly scenario), the net direct cost to the City is an estimated $1.16M per
year ($3.5 million for the term of the three year contract) for these Miscellaneous
employees, as follows:
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 6
During the term of the contracts, if inflation runs at roughly 3% per year, the net impact
to the typical employee of the COLAs and the additional PERS contributions will be as
shown in the below chart. The chart assumes that the increase in the cafeteria benefit
is offset by additional health care costs and that the employee is at top step in terms of
his or her merit range.
Annual Salary
S
Addl EE
Salary Adj
Additional
1,750
Initial PERS Contribution (- 1.45 %)
$
# of
Retirement
(assumes
Cafeteria
Flex leave
$
Association /Group
Covered
Pick -Up
.
25 %T 1/13;
($1ooTJan
accrual
Net Fiscal
Positions
(4.35% by
2.25% T
2013, 2014,
incr
Impact
end of
1/14; and
and 2015)
(12 hr /yr)
contract
2.0% T 1/15)
CEA
95
$277,986
$414,905
$547,200
$122,504
$806,623
Prof -Tech
85
$363,012
$540,538
$459,000
$159,579
$796,105
League
139
$409,720
$608,414
$850,680
$179,594
$1,228,968
Key and M mt
73
$374,268
$555,669
$367,920
$163;987
$713,308
Total
392
$1,424,986
$2,119,526
$2,224,800
$625,664
$3,545,004
During the term of the contracts, if inflation runs at roughly 3% per year, the net impact
to the typical employee of the COLAs and the additional PERS contributions will be as
shown in the below chart. The chart assumes that the increase in the cafeteria benefit
is offset by additional health care costs and that the employee is at top step in terms of
his or her merit range.
Annual Salary
S
C,ccO
First COLA (max 2.5 %)
$
1,750
Initial PERS Contribution (- 1.45 %)
$
(11040)
Net Take -Home impact
$
70,710
Inflationary Effect at 3%
$
68,588
Annual Salary
$
71,750
Add next COLA (max 2.25 %)
$
1,614
Cumulative PERS Contributions ( -2.9 %)
$
(2,128)
Vet Take -Home impact
$
71,237
nfiationary Effect at3%
$
69,100
Annual Salary
$
73,364
Add next COLA (max 2 %)
$
1,467
Cumulative PERS Contributions (- 4.35%)
$
(3,255)
Vet Take -Home impact
$
71,576
Inflationary Effect at 3%
$
69,429
As City Manager and Human Resources Director, we thank the employee groups for the
collaborative and respectful way in which they have approached these negotiations.
Memoranda of Understanding with Miscellaneous Bargaining Units
and the Key & Management Compensation Plan
January 22, 2013
Page 7
These remain challenging and changing times for the City and the strong partnership
between the City and its bargaining units remain vital to ongoing success.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Terri L. Cassidy
Deputy City Manager /HR Director
Attachments: A. Resolution Adopting a Memorandum of Understanding with the City
Employees Association
B. Resolution Adopting a Memorandum of Understanding with the
Professional and Technical Employees Association
C. Resolution Adopting a Memorandum of Understanding with the
Employees League
D. Key & Management Compensation Plan
E. Resolution Modifying the Employer Paid Member Contribution for
Miscellaneous Employees
ATTACHMENT A
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach City Employees Association for the period of
July 1, 2010, through June 30, 2012; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach City Employees Association have met and conferred in good
faith and agreed to modify the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach City Employees Association by adopting successor Memorandum of
Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Newport Beach City Employees
Association shall be provided in accordance with the provisions of the attached
Memorandum of Understanding (Exhibit A).
Section 2. The term of the Memorandum of Understanding shall be for 36
months, commencing retroactively to July 1, 2012, and will remain in full force and effect
through June 30, 2015.
Adopted this day of , 2013.
M
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EX BIT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
PREAMBLE
1. The Newport Beach City Employees Association ( "NBCEA "), a recognized
employee organization, affiliated with the Laborers' International Union of North
America, Local 777 (LIUNA), 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. NBCEA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms and conditions of employment for
the period from July 9, 2092 through June 30, 2095 and this tentative agreement
has been embodied in this MOU.
3. This MOU, upon approval by NBCEA 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.
2001 -50, the City acknowledges that NBCEA 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 those
classifications specified in Exhibit "A" 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 NBCEA.
1
B. Duration of Memorandum
1. Except as specifically provided otherwise, any ordinance, resolution
or action of the City Council necessary to implement this MOU shall
be considered effective as of July 1,2012. This MOU shall remain in
full force and effect until June 30, 2015, 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.
C. Release Time
1. Three NBCEA officers designated by the NBCEA shall collectively be
granted 150 hours paid release time maximum, annually, for the
conduct of NBCEA business. Such time shall be exclusive of actual
time spent in collective bargaining and shall be scheduled at the
discretion of the NBCEA officer. Every effort will be made to
schedule this time to avoid interference with City operations.
2. Release time designees shall be identified annually and notice shall
be provided to the City. Release time incurred shall be reported
regularly in the form and manner prescribed by the City.
3. Activities performed on release time shall include representation of
members in rights disputes; preparation for collective bargaining
activities, and distribution of NBCEA written communication in the
work place.
4. In January 2014 and 2015, the City will examine the number of
Release Time hours the Association used the preceding year. If the
Association used in excess of 75% of the hours normally granted
(150), the Association will be granted an additional 30 hours for that
year.
ON
D. 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. 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.
3. 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. 2001 -50.
Management Rights include, but are not limited to, the following:
(a) the determination of the purposes and functions of City
Departments;
(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;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which
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;
and
Q) the exercise of complete control and discretion over the
manner of organization, and the appropriate technology, best
suited to the performance of departmental functions.
N
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.
E. Employee Data and Access
The City shall provide NBCEA a regular list of all unit members including
name, department, and job title. NBCEA designated officers shall be
entitled to solicit membership from new employees at their work site. This
solicitation shall be made from the RELEASE TIME FOR NBCEA
OFFICERS total, and shall be scheduled in a manner that is not disruptive
to departmental operations. Department heads may determine appropriate
times for new employee contact, but they cannot reasonably deny such
contact.
F. Conclusiveness
With the exception of a separate MOU covering retirement issues, 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.
As provided in the Employer - Employee Relations Resolution No. 2001 -50,
the City shall determine the manner in which City services are to be
provided, including whether the City should provide services directly or
contract out work, including work that is currently being performed by
Association members. In the event the City introduces a plan to outsource
services currently being performed by Association members to achieve
greater efficiency and /or cost savings, and upon request by the Association,
the City shall meet and confer with Association representatives to discuss
the impacts of the City's decision to contract out work. The City shall retain
sole authority to decide whether or not to contract out work, including work
that is currently being performed by Association members. This provision
shall not limit the City's authority to enter into such an agreement for any
City services.
3
G. 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.
The parties have determined certain contract provisions may be outdated or
inconsistent with policy, charter, or Federal, State or local law. Effective
during the term of the MOU City and Association representatives will review
the contract document with the intent of proposing simplified and
appropriate language, content and formatting.
H. Agency Shop
1. Unit employees, by majority vote, have elected for an Agency Shop
provision.
2. The Association shall comply with all statutory and legal
requirements regarding agency shop, should it be approved through
the election process. This will include all requisite procedures for
appeals, record - keeping, establishment of the service fee amount;
designating acceptable charities pursuant to Section 3502.5 of the
Government Code. etc.
3. Complying with agency shop provisions shall not be a condition of
employment. Enforcement shall be the responsibility of the
Association, utilizing appropriate civil procedures. The City will
cooperate with Association efforts to achieve enforcement.
4. The collection of Association dues and /or service fees shall continue
to be handled through the payroll deduction process.
5. The Association and LIUNA agree to defend, indemnify and hold
harmless the City for its action pursuant to this section.
5
SECTION 2. —Compensation
A. Salary
Effective the pay period including January 1, -2013 salaries will be
increased by an amount equal to the increase in the Consumer Price Index
(CP/) Los Angeles /Orange County Urban Wage Earners Index for the 12
month period ending on October 31, 2012 with a minimum 1.5% increase
and a maximum 2.5% increase.
Effective the pay period including January 1, 2014 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month
period ending on October 31, 2013 with a minimum 1.5% increase and a
maximum 2.25% increase.
Effective the pay period including January 1, 2015 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month
period ending on October 31, 2014 with a minimum 1.5% increase and a
maximum 2.0% increase.
B. Normal Overtime
1. Definitions
a. Miscellaneous Employee - An employee designated as a
Miscellaneous member of the Public Employees Retirement
System (PERS).
b. Normal Overtime — Normal overtime for Miscellaneous
employees is defined as any scheduled hours worked in
excess of the basic work week. For the purposes of this
section, the basic work week is 40 hours, or as determined by
the Department Director and approved by the City Manager
which occurs between a fixed and regularly recurring period of
168 hours - 7 consecutive 24 hour periods - beginning at 0001
on Saturday and ending at midnight the following Friday.
C. Hours Worked - Hours worked are defined as hours which
employees are required to be performing their regular duties
or other duties assigned by the City.
2
d. Incidental Overtime - Incidental overtime is any extension of
the basic work shift of less than 1/10 of an hour that is non -
recurrent.
2. Compensation
Overtime for all non - exempt employees shall be paid at one -and-
one -half (1'h)) times the employee's regular rate of pay. Reporting
of overtime on payroll forms will be as prescribed by the Finance
Director. Incidental overtime is not compensabee.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays occurring during
the regular work week will count as time worked. The floating
holiday is excluded from this provision.
C. Standby Duty
1. Defined
a. To be ready to respond immediately to calls for service;
b. To be reachable by telephone;
C. To remain within a specified distance from his /her work
station; and
d. To refrain from activities which might impair the employee's
ability to perform his /her assigned duties.
2. Compensation
Standby duty shall be compensated at the rate of one (1) hour of
overtime compensation for each eight (8) hours of such duty.
Standby duty on holidays shall be compensated at the rate of two (2)
hours of overtime compensation for each (8) hours of standby duty.
Should the employee be required to return to work while on standby
status, the provisions pertaining to compensation for call -back pay
shall apply for the actual period of time the employee is in a work
status.
7
D. Call -Back D
1. Defined
Call -back duty requires the employee to respond to a request to
return to his /her work station after the normal work shift has been
completed and the employee has left his /her normal work station.
Those periods of overtime which had been scheduled by the
Department Director prior to the end of the normal work shift are not
considered call -back duty.
2. Compensation
All personnel eligible for overtime pay shall be guaranteed two (2)
hours pay, or pay for one - and - one -half (1 -1/2) times the number of
hours worked, whichever is greater. Reporting of overtime on payroll
forms will be prescribed by the Administrative Services Director.
E. Accumulation of Compensatory Time Off
City employees represented by the NBCEA and classified as non- exempt
may receive compensatory time off, in lieu of cash, as compensation for
overtime hours worked. Compensatory time shall be calculated at the rate
of one- and - one -half hours (1 ' /2) for each hour of overtime worked beyond
the 40 hour limit of the work week. Compensatory time is to be granted
only when the employer and employee agree that the application of "comp
time" is a desirable substitute for the payment of cash for overtime. Call-
back time may be converted to comp time with supervisor approval.
Employees may accumulate up to eighty (80) hours of compensatory time.
Any hours in excess of eighty (80) will be paid off. Accumulation in excess
of the eighty (80) hours may be approved at the discretion of the
Department Director.
F. Night Shift Differential
Unit members shall receive a night shift differential of $1.00 per hour,
payable for each hour worked after 5:00. Overtime worked as an extension
of an assigned day shift shall not qualify an employee for night shift
differential. The differential pay is paid only for hours actually worked.
0
G. Incentive Shift for Library Members
For CEA members in the Library Services Department, the Sunday work
shift will be considered an "incentive" shift. Unit members working on
Sunday who work five hours but less than eight will be paid eight hours
incentive pay at the regular hourly rate. This article is not to be construed
as to impact on other City rules.
H. Court Time
Employees who are required to appear in Court during their off -duty hours
in connection with City business shall receive overtime compensation for
the number of hours they spend in court, with a minimum of two (2) hours of
such compensation.
Acting Pay
NBCEA employees will be eligible to receive "acting pay" only after
completing 80 consecutive hours in the higher classification. Acting pay is
107.5% of the employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will be
granted for all hours worked above 40 hours beginning with the 415` hour
worked in the higher classification.
J. Certificate Pay
Effective January 1, 2013, the Certificate Pay program shall be modified to
eliminate "inactive" certificates and "sunset" certain active certificates.
Employees currently receiving a "sunset" certificate are considered
grandfathered under the program, but no further employees will be eligible;
effective January 1, 2014, the pay for eligible certificates will be converted
from a percentage based benefit to a flat dollar amount. The complete list
of eligible certificates and the corresponding benefit is listed in Exhibit B.
All other procedures associated with Certificate Pay remain in effect.
K. Bi- linqual Pay
Upon determination of the Department Director that an employee's ability to
speak, read and /or write in Spanish contributes to the Department providing
better service to the public, the employee shall be eligible to receive one
hundred fifty ($150.00) dollars per month in bi- lingual pay. The certification
process will confirm that the employee is fluent at the street conversational
level in speaking, reading and /or writing Spanish. Employees certified shall
receive bi- lingual pay the first full pay period following certification.
9
Additional languages may be certified for compensation pursuant to this
section by the Department Director with the concurrence of the Human
Resources Director.
SECTION 3. - Leaves
A. Flex Leave
Members shall accrue Flex eave at the following rates:
Maximum
Years of Continuous Hrs Accrued per Annual Allowable
Service Pay Period Days Balance (hours)
1 but less than 5
5.54
18
432.12
Years of Continuous
5 but less than 9
6.15
20
479.7
Pay Period
9 but less than 12
6.77
22
528.06
6.00
12 but less than 16
7.69
25
599.82
171.86
16 but less than 20
8.31
27
648.18
563.94
20 but less than 25
8.92
29
695.76
16 but less than 20
25 and over
9.54
31
744.12
9.38
Effective the pay period including January 1, 2013, all unit members shall
accrue Flex leave at the following rates (superseding the rates listed
above):
During the first six months of full -time employment, new employees shall
not accrue paid leave. At the completion of six months of employment, six
(6) months of accrued flex leave will be placed in the employees account.
Employees who are assigned to an 88 hour schedule per pay period will
accrue time in proportionate amounts.
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of potentially accrued Flex Leave
10
Maximum
Years of Continuous
Hrs Accrued per
Annual
Allowable
Service
Pay Period
hours
Balance (hours)
1 but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780,00
During the first six months of full -time employment, new employees shall
not accrue paid leave. At the completion of six months of employment, six
(6) months of accrued flex leave will be placed in the employees account.
Employees who are assigned to an 88 hour schedule per pay period will
accrue time in proportionate amounts.
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of potentially accrued Flex Leave
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time to be used for illnesses only. If employee terminates employment prior
to six months, the employee will repay the City equivalent to the number of
Flex eave days that were advanced to the employee Any Flex Leave time
advanced during the first six months of employment will be subtracted from
the six (6) months of accrual placed in the employees account upon
completion of six months employment.
Effective January 2014 the parties agree to review, via a survey process,
the comparabllity of Flex leave accrual in relation to parity with other units.
1. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal
to seventy eight (78) times the member's bi- weekly accrual rate.
Any flex leave earned in excess of this level will be paid on an hour
for hour basis in cash (spill over pay) at the employee's hourly rate of
pay. Members hired prior to July 1, 1996 shall be paid for earned flex
leave in excess of the maximum permitted accrual at the member's
hourly rate of pay provided that they have utilized at least eighty
(80) hours of flex leave the previous calendar year. Employees
accruing at the 16 years of continuous service level or above shall
be required to use 120 hours of flex leave the previous calendar
year. Employees who have not utilized the required amount of leave
the prior calendar year shall not be eligible to accrue time above the
maximum accrual limit.
Employees first hired, or rehired by the City subsequent to July 1,
1996 shall not be eligible for flex leave spill over pay and shall not be
entitled to accrue flex leave in excess of the flex leave accrual
threshold.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued and in
no case, except for illness, may it be taken prior to the completion of
an employee's initial probationary period.
The Department Director shall approve all requests for flex leave
taking into consideration the needs of the Department, and
whenever possible the seniority and wishes of the employee. Flex
leave may be granted on an hourly basis. Any fraction over an hour
shall be charged to the next full hour.
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1A
Vacation /Sick
Due to the full conversion of employees to the Flex leave program, former
Vacation and Sick leave provisions `B" and "C" are hereby removed and
shall referenced exclusively in prior MOUs.
C.. Holiday Leave
Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other personnel
whose work assignments, in the judgment of the Department Director
require their presence on the job. For each designated holiday, except the
Floating Holiday, such excepted personnel shall receive an equivalent
number of hours of paid leave or equivalent pay whichever in the judgment
of the Department Director best serves the interest of the Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
July 4
15t Monday in Sept.
November 11
4th Thurs. in November
Last '' /z of working day
December 25
Last '' /z of working day
January 1
3`d Monday in February
Last Monday in May
3`d Monday in January
July 15r - 1 day
For 2012 only, the % day Christmas Eve and % day New Year's Eve
holidays will be considered full 8 -hour holidays.
Effective the pay period including January 1, 2013 holidays will be paid
based on the employee's regular work day schedule. For example, if an
employee is on a 9180 schedule and the holiday is observed on a day that
the employee is regularly scheduled to work 9 hours, the employee is
entitled to receive 9 hours of holiday pay. However, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is
regularly scheduled to work 8 hours, the employee is entitled to receive 8
hours of holiday pay. Employees will receive 8 hours of holiday pay
annually for the Floating Holiday.
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Holidays listed above (except the floating holiday) occurring on a Saturday
shall be observed the preceding Friday. Holidays occurring on a Sunday
shall be observed the following Monday.
1. Holiday pay will be paid only to employees who work their scheduled
day before and scheduled day after a holiday or are on authorized
leave (e.g. leave that has been reviewed and approved by the
Department Director).
2. Newly hired employees will be eligible to receive full pay for
scheduled holidays, without a waiting period.
D. Bereavement Leave
The necessary absence from duty by an employee having a regular or
probationary appointment, because of the death or terminal illness in
his/her Immediate Family. CEA members shall be entitled to forty (40)
hours of bereavement leave per incident (terminal illness followed by death
is considered one incident). For the purposes of this section, Immediate
Family shall mean an employee's father, mother (including step), brother,
sister, spouse /domestic partner, child, grandparents and the Employee's
spouse's /domestic partner's father, mother, brother, sister, child and
grandparents.
E. Leave Sellback
Twice annually, employees shall have the option of selling back on an hour
for hour basis, accrued flex or vacation leave. In no event shall the Flex
leave balance be reduced below one hundred and sixty (160) hours. Hours
sold back will be subject to the Retiree Health Savings Plan Part C
contributions, per Section 4 (F), Retiree Medical. For the term of this MOU
the Association has elected Part C contributions for Flex/Vacation at 0 %.
SECTION 4. — Fringe Benefits
A. Insurance
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits 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 programs. The
13
purpose of the BIC is to provide each employee group with
information about health insurance /programs and to receive timely
input from associations regarding preferred coverage options and
levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In
addition to the contribution amounts listed below, the City shall
contribute the minimum CalPERS participating employer's
contribution towards medical insurance for employee enrolled in a
CalPERS medical plan, per Government Code Section 22892.
Employees shall have the option of allocating Cafeteria Plan
contributions towards the City's existing medical, dental and vision
insurance /programs. The City and the Newport Beach City
Employees Association will cooperate in pursuing additional optional
benefits to be available through the Cafeteria Plan,
Unused Cafeteria Plan funds shall be payable to the employee as
taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment periods.
Effective the first pay issue in January 2013, the City's contribution
towards the Cafeteria Plan will increase to $1,349 (plus the minimum
CaIPERS participating employers contribution).
Effective the first pay issue in January 2014, the City's contribution
towards the Cafeteria Plan will increase to $1,449 (plus the minimum
CaIPERS participating employer's contribution).
Effective the first pay issue in January 2015, the City's contribution
towards the Cafeteria Plan will increase to $1,549 (plus the minimum
CalPERS participating employers contribution).
NBCEA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
insurance coverage on an annual basis. The maximum cafeteria
allowance provided to employees who execute an opt -out
agreement is $1,249 per month effective January 2013. Employees
hired after adoption of this 2012 -2015 MOU, and who execute an
opt -out agreement, will receive a maximum cafeteria allowance of
$600 per month.
14
3
a
5.
Dental Insurance
The existing or comparable dental plans shall be maintained as part
of the City's health plan offerings as agreed upon by the BIC.
Vision Insurance
The existing or a comparable vision plan shall be maintained as part
of the City's plan offerings as agreed upon by the BIC.
Healthcare Reform
The parties recognize that certain State and Federal laws, programs
and regulations, including the Affordable Care Act, may impact future
medical plan offerings. In the event reform measures alter healthcare
coverage options, cost, or other elements of healthcare services that
materially alter the provisions of this MOU, either party may request
to reopen Section 4(a)(2) regarding medical insurance for the
purpose of discussing alternative approaches and proposals to
providing healthcare coverage. In addition, should State or Federal
laws concerning taxation of healthcare benefits change, the parties
agree to meet and discuss the impact of such change.
B. Additional Insurance Programs
1
2.
IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee
to reduce taxable income for payment of allowable expenses such as
child care and medical expenses. An Association member may
request that medical, child care and other eligible expenses be paid
or reimbursed by the Section 125 Plan out of the employee's
account. The base salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
Disability Insurance
The City shall provide Short -term (STD) and Long -term (LTD)
disability insurance to all regular full time employees with the
following provisions:
15
LO
C
Weekly Benefit
Maximum Benefit
Minimum Benefit
Waiting Period
66.67% gross weekly wages
$10,000 /month
$15 (STD) and $100 (LTD)
30 Calendar Days (STD)
180 Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid leave
once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City -paid
life insurance is reduced by 50% of the pre -70 amount. This amount
remains in effect until the employee terminates from City
employment.
Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a
properly licensed provider. Association members and their family members
may access the EAP subject to provider guidelines.
Retirement Benefit
1. Retirement Formula
The City contracts with PERS to provide retirement benefits for its
employees. Pursuant to prior agreements and state mandated
reform, the City has implemented first, second and third tier
retirement benefits:
16
Tier 1: For employees hired by the City on or before November 23,
2012, the retirement formula shall be the 2.5% @ 55 calculated on
the basis of the best/single highest year
Tier 2: For employees first hired by the City between November 24
and December 31, 2012, or hired on or after January 1, 2013 and
are current members of the retirement system, as defined in Public
Employees Pension Reform Act, the retirement formula shall be 2%
@ 60 calculated on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1,
2013, and who do not meet the Tier 2 criteria, the retirement formula
shall be 2.0% 62 calculated on the average 36 highest month's
salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this 2012 -15 MOU, unit members will
contribute additional amounts toward the PERS retirement benefit, to
the extent permissible by law. Should any provision be deemed
invalid, the City and Association agree to meet for the purpose of
renegotiating employee retirement contributions. At the conclusion
of this contract employees in each Tier will contribute 12.35% of
pensionable pay toward the retirement benefit, representing a nearly
50% share in the total cost.
Employee retirement contributions that are in addition to the normal
PERS Member Contribution shall be calculated on base pay, special
pays, and other pays normally reported as "PERSable"
compensation, and will be made on a pre -tax basis through payroll
deduction, to the extent allowable by the government tax code, It is
recognized that these payments will not be reported to PERS as
contributions toward either the member or employer rate and fall
outside the scope of "cost- sharing ", as provided under GC Section
20516(1),
Tier 1 Employees: Effective upon MOU adoption, 1) Employees will
continue to contribute 5.58% toward the Member Contribution and
2.42% toward the Employer Contribution for a total of 8 %, as
provided in prior agreement, and 2) the City will eliminate reporting
the value of the 2.42% Employer Paid Member Contribution (EPMC)
as special compensation.
17
Effective the pay period including June 30, 2013, Tier 1 employees
shall contribute an additional 1.45% of pensionable pay toward
retirement costs pursuant to Government Code Section 20516 (t), for
a total of 9.45 %. Effective the pay period including June 30, 2014,
Tier 1 employees shall contribute an additional 1.45% of pensionable
pay toward retirement costs for a total of 10.90 %; effective the pay
period including June 30, 2015, Tier 1 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs, for a
total employee contribution of 12.35 %,
Tier 2 Employees: Effective upon MOU adoption, employees will
continue to contribute the full 7.0% statutory PERS Member
Contribution. Effective the pay period including June 30, 2013 Tier 2
employees shall contribute an additional 2.45% of pensionable pay
toward retirement costs pursuant to Government Code Section
20516(1), for a total of 9.45 %. Effective the pay period including
June 30, 2014, Tier 2 employees shall contribute an additional
1.45% of pensionable pay toward retirement costs; effective the pay
period including June 30, 2015, Tier 2 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs, for a
total employee contribution of 12,35 %.
Tier 3 Employees: The minimum statutory employee contribution for
employees in Tier 3 is subject to the provisions of the Public
Employees Pension Reform Act of 2012 (PEPRA) and equals 50%
of the "total normal cost ". For FY12 -13, the employee rate is 625%
and is subject to change based on annual PERS actuarial valuations.
Effective the pay period including June 30, 2013, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 3.20% of base pay toward
retirement pursuant to Government Code Section 20516(0, for a total
of 9.45 %. If the FY13 -14 member contribution rate for employees in
Tier 3 is greater or less than 6.25 %, as determined by PERS
valuation, the additional contribution made by the employee under
20516(0 will be increased or decreased accordingly, such that the
total contribution equals 9.45 %.
Effective the pay period including June 30, 2014, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 4.65% of pensionable pay
toward retirement. If the FY14 -15 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
1
under 20516(x) will be increased or decreased accordingly, such that
the total contribution equals 10.9 %.
Effective the pay period including June 30, 2015, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 6.10% of pensionable pay
toward retirement. If the FY15 -16 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
under 205160 will be increased or decreased accordingly, such that
the total contribution equals 12.35 %.
In the event pension reform is modified by State or Federal
legislation, resulting in changes to previously negotiated terms, the
parties agree to meet and confer to discuss subsequent changes to
the contract.
The City contracts with PERS for the 4th Level 1959 Survivors
Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave
Credit, Military Service Credit, 2% Cost of Living Adjustment and the
pre- retirement option settlement 2 death benefit (Section 21548).
E. LIUNA Supplemental Pension
The City shall contribute, on behalf of each unit member, one and one half
percent (1.5 %) of base salary into the LIUNA Supplemental Pension Fund.
The City's sole obligation is to forward the agreed upon amount to the fund.
The City is not responsible for, nor does it make any representation
regarding the payment of benefits to unit members.
Effective January 1, 2007, the City increased the base salary of all
members by 1.5 %, and then deducted that same amount as a mandatory
employee contribution. For tax purposes, the contributions, although
designated employee contributions, are being paid by the employer in lieu
of contributions by the employee. The contributions are deemed "picked -up"
and treated as employer contributions, thereby excluding the employee's
gross income until distributed. Employees cannot opt out of the "pick -up,"
or receive the contributed amounts directly instead of having them paid to
the plan. Participation at the same level will continue to be mandatory for
members of the Association. In accordance with correspondence received
from a legal expert retained by the City, this amount will not be taxable,
except for Medicare. Minor changes to other compensation related items
that are calculated from base salary will also result from this administrative
change.
19
The Association agrees with the procedural change, and acknowledges that
members who leave City employment prior to vesting in the LIUNA pension
plan will still have no right to return of amounts contributed, or other
recourse against the City concerning LIUNA.
The Association and LIUNA agree to defend, indemnify and hold harmless
the City for its actions pursuant to this section.
As of date of adoption of this MOU, pursuant to Government Code
7518.22(c) under the California Public Employees' Pension Reform Act of
2012, effective January 1, 2013, newly hired employees may be ineligible to
participate in the LIUNA Supplemental Pension Fund,
F. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit" retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one of
four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006 was less than
50 (46 for public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City
prior to January 1, 2006, and were participating in the previous
retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan
(formerly the Medical Expense Reimbursement Program - WERP ").
20
a. For employees in Category 1, the program is structured as follows:
Each employee will have an individual RHS account for bookkeeping
purposes, called his or her "Employee Account." This account will
accumulate contributions to be used for health care expense after
separation. All contributions to the plan are either mandatory
employee contributions or City paid employer contributions, so they
are not taxable to employees at the time of deposit. Earnings from
investment of funds in the account are not taxable when posted to the
account. Benefit payments are not taxable when withdrawn, because
the plan requires that all distributions be spent for specified health care
purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $1.50 per month for
each year of service plus year of age (updated every January 151
based on status as of December 31st of the prior year). Effective
January 2008, this contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all
employees it represents, subject to the following constraints. All
employees within the Association must participate at the same level,
except that Safety members and Non - safety members within an
Association may have different levels. The participation level should
be specified as a percentage of the leave balance on hand in each
employee's leave bank at the time of separation from the City.
For example, if the Association wishes to specify 50% of the leave
balance as the participation level, then each member leaving the City,
or cashing out leave at any other time, would have the cash equivalent
of 50% of the amount that is cashed out added to the RHS, on a pre-
tax basis. The remaining 50% would be paid in cash as taxable
income. Individual employees would not have the option to deviate
from this breakout.
The Association has decided to participate in Part C contributions at
the level of zero percent (0 %) Flex . This amount may be changed, on
a go forward basis, as part of a future meet and confer process.
However, the participation level must be the same for all employees
21
within the Association. Additionally, the purpose and focus of these
changes should be toward long -term, trend type adjustments. Due to
IRS restrictions regarding "constructive receipt," the City will impose
restrictions against frequent spikes or drops that appear to be tailored
toward satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the RHS Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Section 11.21 of
the Manual contains a schedule, which specifies the amount of sick
leave that can be "cashed out," based on time of service. The manual
also caps the number of hours that can be "cashed out" at 800, and
specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800
hours of sick leave are converted to 400 hours for cash purposes).
Sick leave participation is a separate item from vacation /flex leave
participation, and thresholds must be separately identified by the
Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each RHS Employee Account each pay period. Eligibility
for Part B contributions is set at five years of vested City employment.
At that time, the City will credit the first five years worth of Part B
contributions into the Employee Account (interest does not accrue
during that period). Thereafter, contributions are made bi- weekly.
Part C deposits, if any, will be made at the time of employment
separation.
Each Employee has a right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is
zero. This right is triggered upon separation. If an employee leaves
the City prior to five years employment, only the Part A contributions
and Part C leave settlement contributions, if any, will be in the RHS
Employee Account. Such an employee will not be entitled to any Part
B contributions. The exception to this is a full -time employee,
participating in the program, who leaves the City due to industrial
disability during the first five years of employment. In such cases, the
employee will receive exactly five years worth of Part B contributions,
using the employee's age and compensation at the time of separation
PYa
for calculation purposes. This amount will be deposited into the
employee's RHS account at the time of separation.
Distributions from RHS Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as
defined by the Internal Revenue Code Section 213(d) (as explained in
IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
includes premiums for medical insurance, dental insurance, vision
insurance, supplemental medical insurance, long term care insurance,
and miscellaneous medical expenses not covered by insurance for the
employee and his or her spouse and legal dependents — again only as
permitted by IRS Publication 502. Qualification for dependency status
will be determined by guidelines in IRC 152. If used for these
purposes, distributions from the RHS accounts will not be taxable.
Cash withdrawal for any other purpose is prohibited. Under recent IRS
Revenue Ruling 2005 -24, any balance remaining in the Employee
Account after the death of the employee and his or her spouse and /or
other authorized dependents (if any) must be forfeited. That particular
RHS Employee Account will be closed, and any remaining funds will
become general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. The parties
also agree that, for retirees selecting a CaIPERS medical plan, or any
other plan with a similar employer contribution requirement, the
required City contribution will be withdrawn from the retiree's RHS
account.
b. For employees in Category 2, the program is the same as for those
in Category 1, with the following exception:
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a one-
time City contribution to their individual RHS accounts that equates to
$100 per month for every month they contributed to the previous
"defined benefit" plan, to a maximum of 15 years (180 months). This
contribution will be made only if the employee retires from the City and
at the time of retirement. No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the
City prior to implementation of the new program will only receive Part
B contributions back to January 1, 2006 when they reach five years
total service.
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c. For employees in Category 3, the program is the same as for those
in Category 2 with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active workforce.
Instead, the City will contribute $400 per month into each of their RHS
accounts after they retire from the City, to continue as long as the
employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to
the City. The maximum benefit provided by the City after retirement is
$4,800 per year, accruing at the rate of $400 per month. There is no
cash out option for these funds, and they may not be spent in advance
of receipt.
Employees in this category will.also receive an additional one -time City
contribution of $75 per month for every month they contributed to the
previous plan prior to January 1, 2006, up to a maximum of 15 years
(180 months). This contribution will be made to the RHS account at
the time of retirement, and only if the employee retires from the City.
No interest will be earned in the interim.
d. For employees (retirees) in Categon/ 4, the structure is very similar
to the previous retiree medical program, except that there is no cost
share requirement, and the $400 City contribution after retirement can
be used for any IRS authorized purpose, not lust City insurance
premiums.
Effective July 1, 2006, a RHS account has been opened for each
retiree in this category, and the City will contribute $400 per month to
each account as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be paid
by the City. However, specific vendor charges for individual account
transactions that vary according to the investment actions taken by each
employee, such as fees or commissions for trades, will be paid by each
employee.
24
The City's Deferred Compensation Committee, or its successor committee,
will have the authority to determine investment options that will be available
through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is based
(Part A), plus .25% of other compensation (Part B).
G. Tuition Reimbursement
NBCEA members attending accredited community colleges, colleges, trade
schools or universities, or recognized professional organizations or
agencies may apply for reimbursement of one hundred percent (1009'0) of
the actual cost of tuition, books, fees or other student expenses for
approved job— related coursework, seminars or professional development
programs. Maximum tuition reimbursement for employees shall be $1,400
per fiscal year. Effective January 1, 2013, reimbursement will increase by
$100 per year, for a maximum annual benefit of $1,500 per fiscal year
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 Human Resources
Director or designee.
SECTION 5. — Miscellaneous
A. 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.
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination of
employment.
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2. "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 the current
Classification or any Classification within the Series, subject to the
following:
a. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series, and
b. Seniority shall include time spent on industrial leave, military
leave, and leave of absence without pay, but shall not include
time spent on any other authorized or unauthorized leave of
absence.
3. "Classification" shall mean one or more full time positions identical or
similar In duties not including part -time, seasonal or temporary
positions. Classification within a Series shall be ranked according to
pay (lowest ranking, lowest pay).
4. "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 following a meet and consult process
which constitute a Series.
5. "Bumping Rights ", 'Bumping" or "Bump" shall mean (1) the right of
an employee, based upon seniority within a series to bump into a
lower ranking classification within the same series, (2) to be followed
by, an employee being permitted to bump into a classification within
a different series. The latter bumping shall be based upon unit wide
seniority and shall be limited to a classification in which the
employee previously held regular status.
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.
PROCEDURE
In the event the City Manager determines to reduce the number of
employees within a classification, the following procedures are applicable:
1. Temporary and probationary employees within any classification
shall, in that order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of
seniority.
3. 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.
4. 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 following the Department Director's consideration of
established performance evaluations.
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
Employee Policy Manual.
REEMPLOYMENT
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 expire in eighteen (18) months. 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 within
seven (7) days of written notice of appointment. Notice shall be deemed
given when personally delivered to the employee or deposited in the U.S.
Mail, first class postage prepaid, 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 Human
Resources Director.
SEVERANCE
fail
If an employee is laid off from their job with the City, for economic reasons,
the City will grant severance pay in an amount equal to one week of pay for
every full year of continuous employment service to the City of Newport
Beach up to ten (10) weeks of pay.
B. Transfer and Reassignments
The City acknowledges that before arriving at a final decision involving the
transfer or reassignment of work schedules of those employees
represented by the NBCEA, the seniority and preference of the employee is
taken into consideration.
C. Banding
Position vacancy announcements for available City positions shall be
distributed in a manner that reasonably assures unit members access to the
announcements. In order to select the most qualified individual for vacant
positions the City will continue its practice of "banding" candidates into one
of the following ratings: Outstanding, Highly Recommended,
Recommended, and Not Recommended, during the testing process.
Department Directors review qualified candidates in band order, beginning
with the top band and are permitted to hire any eligible candidate from the
list (minimum rating of Recommended).
Where no less than 2 unit members achieve top three ranking on a certified
eligible list, selection to the position shall be made with preference given to
the unit members so qualified.
D. 9/80 (or 4/10) Schedulinq Plan
The City agrees to maintain flex - scheduling where it is currently operating
successfully and additionally to put in place a 9/80 (or 4/10) schedule, on a
test basis (excluding the Library) for the balance of the life of the MOU.
This test will be conducted at the discretion of the Department Director. The
program will have proven itself to be successful if it costs the same or less
than the present 5/40 program, and if the service levels for the 9/80 (or
4/10) schedules are the same or better as they are on the present 5/40
program. The program will be evaluated individually by work group, and
should a problem involving service reductions or increases in cost
materialize, the Department Director will meet with the work group to
resolve the problem. If the Department Director and the work group
disagree on the solution, the City Manager will consider both sides of the
issue and resolve the dispute. Final evaluation of the success /failure of the
9/80 (or 4/10) schedule test will be conducted by the Department Director,
and his /her determination shall be final.
W.
Effective the pay period beginning January 15, 2011, the 9/80 flex - schedule
will be modified as follows: employees will have the option of alternating
Fridays off only. Employees currently on a 9/80 schedule with alternating
Mondays or any other day off, will convert to Fridays off beginning in
January 2011. To ensure effective coverage, employees on the 9/80
schedule will be divided into groups A or B, with equal numbers of staff as
much as possible, including management and supervisory staff, off on
alternating Fridays. To ensure ongoing compliance with Fair Labor
Standards Act, and to maintain organizational efficiency, deviations from
established flex days, if legally permitted, will be considered on a case -by-
case basis.
E. Labor Management Committee
Committees shall meet quarterly on an annual schedule, names of
participating unit members shall be announced to management no less than
5 working days before the scheduled meeting, cancellation for cause shall
be rendered by the canceling party no less than 48 hours prior to the
scheduled meeting, canceled meetings shall be rescheduled to take place
within 5 working days of the canceled meeting; committees shall be
departmental, they may be combined in the interests of efficiency with other
such committees; City participants shall include appropriate department or
division heads outside the unit; the purpose of the committees shall be to
resolve conflict and exchange information; a unit staff person may attend
meetings, meetings shall be scheduled to last no less than one hour;
grievances in process shall not be subject to resolution in meetings; matters
properly dealt with in negotiations may be discussed but no agreements
shall be effected on same in committee. Meetings shall be on work time.
The Committees shall include a Library Committee with two unit members
participating, and three additional Committees, one of which shall meet in
each quarter of the year on a continuing rotational basis.
1. Building /Planning /Engineering: Minimum representation shall include
one NBCEA member and one management representative.
2. Finance: Minimum representation shall include two NBCEA
members and two management representatives.
3. All other City departments: Minimum representation shall include
three NBCEA members and three management representatives.
The City and NBCEA agree that initial committee establishment will require
good faith effort to affect the spirit of this agreement.
9
F. Discipline - Notice of Intent
Employees who are to be the subject of substantial punitive discipline for
any misconduct or negligence shall be entitled to prior written notice of
intent to discipline at least seven (7) calendar days prior to the imposition of
the actual penalty. This written notice shall contain a description of the
event or conduct which justifies the imposition of discipline. The notice
shall also include the specific form of a discipline intended, and the
employee shall be offered the opportunity to a hearing before their
Department Director prior to the imposition of the penalty.
This procedure will only be applied in cases of substantial punitive
discipline. It shall be understood that a disciplinary penalty equal to an
unpaid suspension of three (3) days or greater shall be substantial. All
other discipline resulting in less than a three (3) day suspension will be
considered non - substantial and will not be subject to the aforementioned
procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to
discipline and who believe that the penalty is not justified shall have access
to the grievance procedure as established in the Employee - Employer
Resolution 2001 -50.
G. Grievance Procedure
Step 1: A grievance may be filed by any employee on his /her own
behalf, or jointly by a group of employees, or by a Recognized Employee
Organization.
Within ten (10) calendar days of the event giving rise to a grievance, the
grievant shall present the grievance in writing to the immediate supervisor.
Grievances not presented within the time period shall be considered
resolved.
The supervisor shall meet with the grievant to settle grievance and give a
written answer to the grievant within seven (7) calendar days from receipt of
the grievance by the supervisor. When the immediate supervisor is also the
department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's answer,
forward the grievance to the department head for consideration. Answer to
the grievance shall be made in writing by the department head, after
T
conferring with the grievant, within fourteen (14) calendar days from receipt
of the grievance.
Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be
made by the grievant within ten (10) calendar days from the receipt of the
department heads answer, through the representative of his /her
Recognized Employee Organization who may request a meeting with the
City Representative to resolve the grievance. Following the meeting,
answer shall be made by the City Representative, in writing, to the
representative within twenty -one (21) calendar days.
Step 4: Mediation - If the grievance is not resolved after Step 3, as an
alternative to proceeding directly to Step 5, the grievance may be submitted
to mediation. A request for mediation may be presented in writing to the
Human Resources Director within seven (7) calendar days from the date a
decision was rendered at Step 3. As soon as practicable thereafter, or as
otherwise agreed to by the parties, a mediator shall hear the grievance. A
request for mediation will automatically suspend the normal processing of a
grievance until the mediation process is completed. The mediation process
shall be optional, and any opinion expressed by the mediator shall be
informal and shall be considered advisory.
Step 5: Within twenty (20) calendar days of receipt of a grievance denial at
step three, the grievant may file the grievance, in writing, with the Civil
Service Board.
At the next regularly scheduled meeting of the Civil Service Board, the
grievance shall be heard, using Civil Service Board De Novo procedures.
Within 20 calendar days of the hearing, the Civil Service Board shall issue
its findings and conclusions to the parties at interest.
Within seven (7) calendar days of the issuance of Civil Service Board
findings and conclusions, the City Manager shall affirm, modify or revoke
the Board's decision. The City Manager's decision shall be considered
exhaustive of administrative remedies.
Performance evaluation ratings and written reprimands are excluded from
this Step Four grievance process, and shall be dealt with as currently
provided in the Discipline Code.
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H. Probation
1. Probationary Period
Newly hired employees shall serve a twelve (12) month probationary
period. The probationary period for promoted employees shall be six
(6) months.
Newly hired employees shall become eligible for their first step
increase after twelve (12) months. All other City rules regarding step
increases shall remain unchanged.
2. Failure of Probation
(a)
New Probation
An employee on new probation may be released at the sole
discretion of the City at any time without right of appeal or
hearing, except as provided in (c), below.
(b) Promotional Probation
An employee on promotional probation may be failed at any
time without right of appeal or hearing, except as provided in
(c), below, and except that failing an employee on promotional
probation must not be arbitrary, capricious or unreasonable.
An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of
promotional probation.
When an employee fails his or her promotional probation, the
employee shall have the right to return to his or her former
class provided the employee was not in the previous class for
the purpose of training for a promotion to a higher class.
When an employee is returned to his or her former class, the
employee shall serve the remainder of any uncompleted
probationary period in the former class.
If the employee's former class has been deleted or abolished,
the employee shall have the right to return to a class in his or
her former occupational series closest to, but no higher than,
the salary range of the class which the employee occupied
immediately prior to promotion and shall serve the remainder
of any probationary period not completed in the former class.
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(c) Probationary Release
An employee who alleges that his or her probationary release
was based on discrimination by the City, may submit a
grievance within ten (10) days after receipt of the Notice of
Failure of Probation.
Salary on Reclassification
The City will amend its Employee Policy Manual to provide for a minimum
salary increase of five percent (5 %) upon reclassification (not to exceed the
maximum of the new salary range).
J. Uniforms and Safety Equipment
For assigned Park Patrol staff, uniforms shall be worn at all times during
regular business hours. Park Patrol shall be provided with City designated
shirts, shorts, pants, boots, jacket, and hat annually. Additional equipment
or supplies may be issued to employees by the Department as deemed
appropriate. If the provided winter jacket or work boots are lost, the
employee shall replace the item with one from an authorized vendor. Work
boots shall provide toe protection and meet Department safety standards.
The Department Head or designee may approve exceptions to wearing
uniforms.
The City will continue its practice of directly paying for dry cleaning for
individuals in the Park Patrol classification.
K. Service Awards
For the purpose of determining service awards, if an employee has been
employed by the City on more than one occasion, non - consecutive time will
be considered as part of total service. Prior to system implementations, an
employee is required to individually notify the awards committee of all of the
service time.
L. Employee Handbook
There will be a consolidation of documents to be given to each employee.
This consolidation will be comprised of Employee Policy Manual, related
Departmental Rules and Regulations; Employee /Employer Resolutions and
a copy of Memorandum of Understanding. More information may be
included.
33
M. Direct Deposit
All employees shall participate in the payroll direct deposit system.
N. Deferred Compensation
The City agrees to, through a joint City - Employee Committee, explore the
possible addition of additional deferred compensation providers during the
term of this agreement.
O. Separability
Should any part of this MOU or any provision herein contained be rendered
or declared invalid, by reason of any existing or subsequently enacted
Legislation, or by decree of a Court of competent jurisdiction, such
invalidation of such part or portion of this MOU shall not invalidate the
remaining portion hereto, and same shall remain in full force and effect;
provided, however, that should provisions of this MOU relating to any
schedule adjustment be declared invalid, City agrees to provide alternative
benefits agreeable to NBCEA, to employees, which will cause such
employees to receive the same amount of money as they would have
received had such provision not been declared invalid.
P. Citywide Classification and Compensation Study
Concurrent with the adoption of this MOU, the City is undergoing a
comprehensive study of its classification and compensation structure. The
City agrees to meet with the Association during this study to discuss
preliminary findings or recommendations. The parties agree that during the
term of this MOU the City may implement the findings and
recommendations of this study regarding the compensation and
classification of employees. Prior to adopting or implementing final
recommendations, the City will meet and confer with the Association to
discuss the possible impact on its members.
Signatures are on the next page.
34
Executed this day of
2013:
FOR THE NEWPORT BEACH CITY EMPLOYEES
ASSOCIATION:
Teresa Craig, President
FOR THE CITY OF NEWPORT BEACH
Im
Keith Curry, Mayor
ATTEST:
0
Leilani Brown, City Clerk
aOVED AS TO FORM:
Aaron Harp, City Attorney ' f 1 b1 -3
EXHIBIT A
CITY EMPLOYEES ASSOCIATION REPRESENTED CLASSIFICATIONS
Administrative Assistant
Building Department Specialist
Buyer
Cultural Arts /Grant Coordinator
Department Assistant
Fiscal Clerk
Fiscal Clerk, Senior
Fiscal Operations Supervisor
Fiscal Specialist
Graphics & Printing Specialist
Harbor Resources Specialist
Inventory Analyst
Inventory Assistant
Librarian I
Librarian II
Librarian III
Library Assistant
Library Clerk I
Library Clerk II
Library Clerk, Senior
License Inspector
License Supervisor
Mail Processing Clerk
Mail Processing Clerk, Sr.
Marketing Specialist
Office Assistant
Park Patrol Officer, Lead
Printing Services Supervisor
Public Works Specialist
Records Specialist
Recreation Coordinator
Recreation Coordinator, Assistant
Recreation Supervisor
01
EXHIBIT B
City Employees Association - Eligible Certificate Pay
For the term July 1, 2012 through June 30, 2015
Certificate*
% of Base Pay
Monthly Amount (as
of 1/1/14)
Certified Revenue Officer
2%
$85
Microsoft Certified Professional Certificate
1%
$45
Forklift Training Certificate
1%
$45
* Only those unit members receiving the certificate pay at time of MOU adoption are eligible
for the benefit.
ATTACHMENT B
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES
ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach Professional and Technical Employees
Association for the period of July 1, 2010, through June 30, 2012; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach Professional and Technical Employees Association have met
and conferred in good faith and agreed to modify the current Memorandum of
Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach Professional and Technical Employees Association by adopting successor
Memorandum of Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Professional and Technical
Employees Association shall be provided in accordance with the provisions of the
attached Memorandum of Understanding (Exhibit B).
Section 2. The term of the Memorandum of Understanding shall be for 36
months, commencing retroactively to July 1, 2012, and will remain in full force and effect
through June 30, 2015.
Adopted this day of 2013.
An
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EXHIBIT B
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
PREAMBLE
1. The Newport Beach Professional and Technical Employees Association
( "NBPTEA "), a recognized employee organization, affiliated with Laborers'
International Union of North America, Local 777 (LIUNA), 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. NBPTEA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms and conditions of employment to
apply to all affected employees for the period of July 1, 2012 through June 30,
2015. Said employees desire to reduce their agreement to writing, and to
present such agreement, in the form of this MOU, to the city Council of the City of
Newport Beach for approval.
3. This MOU, upon approval by NBPTEA 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 I. —General Provisions
A. Recognition
In accordance with the provisions of the Charter of the City of Newport
Beach, the Meyers-M i I ias- Brown Act of the State of California and the
provisions of the Employer's /Employee Labor Relations Resolution No.
2001 -50, the City acknowledges that NBPTEA 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
those classifications specified in Exhibit "A" 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 NBPTEA.
B. Duration of Memorandum
1. Except as specifically provided otherwise, any ordinance, resolution
or action of the City Council necessary to implement this MOU shall
be considered effective as of July 1, 2012. This MOU shall remain
in full force and effect through June 30, 2015, 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, 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.
C. Release Time
1. Three NBPTEA officers designated by the NBPTEA shall
collectively be granted 150 hours paid release time maximum,
annually, for the conduct of NBPTEA business. Such time shall be
exclusive of actual time spent in collective bargaining and shall be
scheduled at the discretion of the NBPTEA officer. Every effort will
be made to schedule this time to avoid interference with City
operations.
2. Release time designees shall be identified annually and notice shall
be provided to the City. Release time incurred shall be reported
regularly in the form and manner prescribed by the City.
3. Activities performed on release time shall include representation of
members in rights disputes; preparation for collective bargaining
activities, and distribution of NBPTEA written communication in the
work place.
4. In January 2014 and 2015, the City will examine the number of
Release Time hours the Association used the preceding year. If
the Association used in excess of 75% of the hours normally
granted (150), the Association will be granted an additional 30
hours for that year.
PA
D. 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. 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.
3. 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. 2001 -50.
Management Rights include, but are not limited to, the following:
(a) the determination of the purposes and functions of City
Departments;
(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;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which
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;
and
(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.
3
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.
E. Conclusiveness
With the exception of a separate MOU covering retirement issues, 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.
As provided in the Employer - Employee Relations Resolution No. 2001 -50,
the City shall determine the manner in which City services are to be
provided, including whether the City should provide services directly or
contract out work, including work that is currently being performed by
Association members. In the event the City introduces a plan to outsource
services currently being performed by Association members to achieve
greater efficiency and /or cost savings, and upon request by the
Association, the City shall meet and confer with Association
representatives to discuss the impacts of the City's decision to contract
out work. The City shall retain sole authority to decide whether or not to
contract out work, including work that is currently being performed by
Association members. This provision shall not limit the City's authority to
enter into such an agreement for any City services.
F. 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.
The parties have determined certain contract provisions may be outdated
or inconsistent with policy, charter, or Federal, State or local law. Effective
during the term of the MOU City and Association representatives will
review the contract document with the intent of proposing simplified and
appropriate language, content and formatting.
S
G. Employee Data and Access
The NBPTEA will be provided on a regular basis with a listing of all unit
members. The listing will include name, department, and job title.
Information concerning the NBPTEA prepared by the NBPTEA will be
provided to new employees at the time of orientation. NBPTEA officials
shall be entitled to solicit membership from employees who are not
members.
SECTION 2. —Compensation
A. Salary
Effective the pay period that includes January 1, 2013 salaries will be
increased by an amount equal to the increase in the Consumer Price
Index (CPI) Los Angeles /Orange County Urban Wage Earners Index for
the 12 month period ending October 31, 2012 with a minimum 1.5%
increase and a maximum 2.5% increase.
Effective the pay period that includes January 1, 2014 salaries will be
increased by an amount equal to the increase in the Consumer Price
Index (CPI) Los Angeles /Orange County Urban Wage Earners Index for
the 12 month period ending on October 31, 2013 with a minimum 1.5%
increase and a maximum 2.25% increase.
Effective the pay period that includes January 1, 2015 salaries will be
increased by an amount equal to the increase in the Consumer Price
Index (CPI) Los Angeles/Orange County Urban Wage Earners Index for
the 12 month period ending on October 31, 2014 with a minimum 1.5%
increase and a maximum 2.0% increase.
B. Normal Overtime
1. Definitions
(a) Miscellaneous Employee - An employee designated as a
Miscellaneous member of the Public Employees Retirement
System (PERS).
(b) Overtime - Normal overtime is defined as any scheduled
hours worked in excess of the basic work week. For the
purposes of this section, the basic work week is 40 hours, or
as determined by the Department Director and approved by
the City Manager which occurs between a fixed and
regularly recurring period of 168 hours - 7 consecutive 24
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hour periods - beginning at 0001 on Saturday and ending at
midnight the following Friday.
(c) Hours Worked - Hours worked are defined as hours which
employees are required to be performing their regular duties
or other duties assigned by the City.
(d) Incidental Overtime - Incidental overtime is any extension of
the basic work shift of less than 1/10 of an hour that is non -
recurrent.
2. Compensation
Overtime for all non - exempt employees shall be paid at one -and-
one -half (1 -1/2) times the employee's regular rate of pay.
Reporting of overtime on payroll forms will be as prescribed by the
Finance Director. Incidental overtime is not compensable.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays occurring during
the regular work week will count as time worked. The floating
holiday is excluded from this provision.
C. Call -Back Dutv
1. Defined
Call back duty requires the employee to respond to a request to
return to his /her work station after the normal work shift has been
completed and the employee has left his /her normal work station.
Those periods of overtime which had been scheduled by the
Department Director prior to the end of the normal work shift are
not considered call -back duty.
2. Compensation
All personnel eligible for overtime pay shall be guaranteed two (2)
hours pay, or pay for one - and - one -half (1 -1/2) times the number of
hours worked, whichever is greater. Reporting of overtime on
payroll forms will be prescribed by the Administrative Services
Director.
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D. Accumulation of Compensatory Time Off
City employees represented by the NBPTEA and classified as non - exempt
may receive compensatory time off, in lieu of cash, as compensation for
overtime hours worked. Compensatory time shall be calculated at the rate
of one and one half hours for each hour of overtime worked beyond the 40
hour limit of the work week. Compensatory time is to be granted only
when the employer and employee agree that the application of "comp
time" is a desirable substitute for the payment of cash for overtime. Call-
back time may be converted to comp time with supervisor approval.
Employees may accumulate up to eighty (80) hours of Compensatory
Time. Any hours in excess of eighty (80) will be paid off. Accumulation in
excess of the eighty (80) hours may be approved at the discretion of
Department Director.
E. Night Shift Differential
The City agrees to pay $1 per hour night shift differential for Employees
working a regularly scheduled work shift of which four or more hours are
worked between the hours of 5 p.m. and 5 a.m. Overtime worked as an
extension of an assigned day shift shall not qualify an employee for night
shift differential. The differential pay is paid only for hours actually
worked.
F. Associate Civil Engineer and Junior Civil Engineer
Employees in the class of Associate Civil Engineer and Junior Civil
Engineer who are registered by the State of California shall receive an
additional compensation of five (5 %) percent of base pay per month.
G. Certificate Pay
The City and Association established a certificate pay program for non -
required job related certificates beneficial to City operations. Effective
January 1, 2013, the Certificate Pay program shall be modified to
eliminate "inactive" certificates and "sunset" certain active certificates.
Employees currently receiving a "sunset" certificate are considered
grandfathered under the program, but no further employees will be
eligible; effective January 1, 2014, the pay for eligible certificates will be
converted from a percentage based benefit to a flat dollar amount. The
complete list of eligible certificates and the corresponding benefit is listed
in Exhibit B. All other procedures associated with Certificate Pay remain
in effect.
H. Court Time
Employees who are required to appear in Court during their off -duty hours
in connection with City business shall received overtime compensation for
the number of hours they spend in court, with a minimum of two (2) hours
of such compensation.
Actinq Pay
NBPTEA employees will be eligible to receive "acting pay" only after
completing 80 consecutive hours in the higher classification. Acting pay is
107.5% of the employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will
be granted for all hours worked above 40 hours beginning with the 41st
hour worked in the higher classification.
J. Bi- linqual Pay
Upon determination of the Department Director that an employee's ability
to speak, read and /or write in Spanish contributes to the Department
providing better service to the public, the employee shall be eligible to
receive One Hundred Fifty ($150.00) Dollars per month in bi- lingual pay.
The certification process will confirm that the employee is fluent at the
street conversational level in speaking, reading and /or writing Spanish.
Employees certified shall receive bi- lingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this
section by the Department Director with the concurrence of the Human
Resources Director,
K. Assignment Pay
An employee appointed by the Planning Director to regularly perform the
duties of the Zoning Administrator as set forth in the Zoning Code shall be
provided temporary assignment pay at five percent (5 %) above the
employee's base pay, to be paid on an hourly basis for all hours worked in
the assignment. This assignment pay is temporary and will cease once
the employee is no longer performing the duties of the Zoning
Administrator.
An Assistant Planner appointed by the Planning Director to regularly
perform the lead duties at the Plan Check Counter shall be provided
temporary assignment pay at five (5 %) percent above the employee's
base pay, paid on an hourly basis for all hours worked in the assignment.
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This assignment pay will cease once the employee is no longer
performing the duties of the lead person at the Plan Check Counter.
L. Weekend Standby
Effective upon MOU adoption, Information Technology staff assigned
Standby for the purpose of responding to calls for service during the
weekend shall be paid $3 per hour for each hour of assigned duty.
Weekend will be defined as the 64 hours beginning on Friday at 5:00 p.m.
and concluding Monday at 7:00 a.m. for a total of 64 hours per weekend.
Standby compensation is not considered PERSable pay. This provision is
not intended to be a guarantee of hours and the City shall retain the right
to determine when Standby duty shall be assigned.
SECTION 3 - Leaves
A. Flex Leave
Members shall accrue Flex leave at the following rates:
Maximum
Years of Continuous Hrs Accrued per Annual Allowable
Service Pay Period Days Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
Effective the pay period including January 1, 2013, all unit members shall
accrue Flex leave at the following rates (superseding the rates listed
above):
Maximum
Years of Continuous
Hrs Accrued per
Annual
Allowable
Service
Pay Period
hours
Balance (hours)
but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
During the first six months of full -time employment, new permanent
employees shall not accrue paid leave. At the completion of six months of
employment, six (6) months of accrued flex leave will be placed in the
employees account. Employees who are assigned to an 88 hour schedule
per pay period will accrue time in proportionate amounts.
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of potentially accrued flex leave
time to be used for illnesses only. If employee terminates employment
prior to six (6) months, the employee will repay the equivalent to the
number of Flex leave days that were advanced to the employee. Any Flex
leave time advanced during the first six (6) months of employment will be
subtracted from the six (6) months of accrual placed in the employees
account upon completion of six months employment.
Effective January 2014 the parties agree to review, via a survey process,
the comparability of benefits and the issue of parity with other units.
1. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal
to seventy eight (78) times the member's bi- weekly accrual rate.
Any flex leave earned in excess of this level will be paid on an hour
for hour basis in cash (spill over pay) at the employee's hourly rate
of pay. Members hired prior to July 1, 1996 shall be paid for
earned flex leave in excess of the maximum permitted accrual at
the member's hourly rate of pay provided that they have utilized at
least eighty (80) hours of flex leave the previous calendar year.
Employees accruing at the 16 years of continuous service level or
above shall be required to use 120 hours of flex leave the previous
calendar year to receive such excess pay. Employees who have
not utilized the required amount of leave the prior calendar year
shall not be eligible to accrue time above the maximum accrual
limit.
Employees first hired, or rehired by the City subsequent to July 1,
1996 shall not be eligible for flex leave spill over pay and shall not
be entitled to accrue flex leave in excess of the flex leave accrual
threshold.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued and
in no case, except for illness, may it be taken prior to the
completion of an employee's initial probationary period.
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The Department Director shall approve all requests for flex leave
taking into consideration the needs of the Department, and
whenever possible the seniority and wishes of the employee.
B. Vacation Leave
This section applies only to those Regular Full time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex
Leave program.
1. Basis for Accrual /Full -Time Employees
Employees entitled to vacation leave- with -pay shall accrue such
leave based on years of continuous service and the number of
hours in a normal work week for the position to which they are
assigned in accordance with the following schedule:
Years of
Continuous Accrual per Pay
Service Period /Hrs
0 but less than 5
3.38
5 but less than 9
3.99
9 but less than 12
4.61
12 but less than 16
5.22
16 but less than 20
5.84
20 but less than 25
6.46
25 and over
7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31st of each
year with the following exception: with approval of the Department
Director, an employee may accrue vacation days in excess of the
two -year limit provided all such excess accumulation is taken by
March 31st of the following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. The
Department Director shall schedule and approve all vacation leaves
for employees taking into consideration the needs of the
Department, and whenever possible, the seniority and wishes of
the employee.
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C. Sick Leave
This section applies only to those Regular Full time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex
Leave program.
1. Basis for Accrual /Full -time Employees
Employees entitled to sick leave with pay shall accrue sick leave
based on the number of hours in a normal work week for the
position to which they are assigned in accordance with the following
schedules:
Service Time Monthly
Accrual Accrual
0 -1
year
4
hours
1 -2
years
5
hours
2 -3
years
6
hours
3 -4
years
7
hours
4+
8
hours
2. Method of Use
(a) General
Sick leave may not be taken in excess of that actually
accrued.
(b) Approval
Sick leave may be granted only at the direction of or with the
approval of the Department Director and only for the
purposes defined in Section 11.2 of the Employee Policy
Manual.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued
level of sick leave equal to or greater than the full value of 50
months of accrued sick leave, and who have used six or less days
of sick leave during that calendar year will be permitted (only once
per year) to convert up to six (6) days of sick leave to either salary
or paid vacation at the value of 50% (maximum value of 3 days per
year). Eligible sick leave days converted to cash shall be at the
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C
employee's option. Eligible sick leave days converted to paid
vacation shall require the approval of the Department Director,
Holiday Leave
Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other
personnel whose work assignments, in the judgment of the Department
Director require their presence on the job. For each designated holiday,
except the Floating Holiday, such excepted personnel shall receive an
equivalent number of hours of paid leave or equivalent pay whichever in
the judgment of the Department Director best serves the interest of the
Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
July 4
1st Monday in September
November 11
4th Thurs. in November
Last 1/2 of working day
December 25
Last 1/2 of working day
January 1
3rd Monday in February
Last Monday in May
3rd Monday in January
July 15` - 1 day
For 2012 only, the % day Christmas Eve and % day New Years Eve
holidays will be considered full 8 -hour holidays.
Effective the pay period including January 1, 2013 holidays will be paid
based on the employee's regular work day schedule. For example, if an
employee is on a 9180 schedule and the holiday is observed on a day that
the employee is regularly scheduled to work 9 hours, the employee is
entitled to receive 9 hours of holiday pay. However, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is
regularly scheduled to work 8 hours, the employee is entitled to receive 8
hours of holiday pay. Employees will receive 8 hours of holiday pay
annually for the Floating Holiday.
1. Holidays listed above (except the floating holiday) occurring on a
Saturday shall be observed the preceding Friday. Holidays
occurring on a Sunday shall be observed the following Monday.
(Half day holidays shall be observed prior to the observed holiday).
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2. In addition, for all employees an additional 8 hours of floating
holiday will be added to his /her vacation or flex leave accumulated
total on the first pay period in July each year.
E. Bereavement Leave
1. Defined
The necessary absence from duty by an employee having a regular or
probationary appointment, because of death or terminal illness in his /her
Immediate Family. For the purposes of this section, Immediate Family
shall mean father and mother (including step), brother, sister,
spouse /domestic partner, child, grandparents and the Employee's
spouse's /domestic partner's father, mother, brother, sister, child and
grandparents.
2. Maximum Allowed
Such leave shall be limited to five (5) working days per incident.
F. Leave Sellback
Twice annually, employees shall have the option of selling back on an
hour for hour basis, accrued flex or vacation leave. In no event shall the
flex or vacation leave balance be reduced below one hundred and sixty
(160) hours. Hours sold back will be subject to the Retiree Health Savings
Plan Part C contributions, per Section 4 (F), Retiree Medical. For the term
of this MOU the Association has elected Part C contributions for
Flex/Vacation at 0 %.
SECTION 4. — Fringe Benefits
A. Insurance
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits
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
programs. The purpose of the BIC is to provide each employee
group with information about health insurance /programs and to
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receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In
addition to the contribution amounts listed below, the City shall
contribute the minimum CaIPERS participating employer's
contribution towards medical insurance for employees enrolled in a
CalPERS medical plan, per Government Code Section 22892.
Employees shall have the option of allocating Cafeteria Plan
contributions towards the City's existing medical, dental and vision
insurance /programs. The City and the Newport Beach Professional
and Technical Employees Association will cooperate in pursuing
additional optional benefits to be available through the Cafeteria
Plan.
Unused Cafeteria Plan funds shall be payable to the employee as
taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment period.
Effective the first pay issue in January 2013, the City's contribution
towards the Cafeteria Plan will increase to $1,349 (plus the
minimum CaIPERS participating employer's contribution).
Effective the first pay issue in January 2014, the City's contribution
towards the Cafeteria Plan will increase to $1,449 (plus the
minimum CaIPERS participating employer's contribution).
Effective the first pay issue in January 2015, the City's contribution
towards the Cafeteria Plan will increase to $1,549 (plus the
minimum CaIPERS participating employer's contribution).
NBPTEA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
insurance coverage on an annual basis. The maximum cafeteria
allowance provided to employees who execute an opt -out
agreement is $1,249 per month effective January 2013.
Employees hired after adoption of this 2012 -2015 MOU, and who
execute an opt -out agreement, will receive a maximum cafeteria
allowance of $600 per month.
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3. Dental Insurance
The existing or comparable dental plans shall be maintained as
part of the City's health plan offerings as agreed upon by the
Benefits Information Committee.
4. Vision Insurance
The existing or a comparable vision plan shall be maintained as
part of the City's health plan offerings as agreed upon by the
Benefits Information Committee.
5. Healthcare Reform
The parties recognize that certain State and Federal laws,
programs and regulations, including the Affordable Care Act, may
impact future medical plan offerings. In the event reform measures
alter healthcare coverage options, cost, or other elements of
healthcare services that materially alter the provisions of this MOU,
either party may request to reopen Section 4(a)(2) regarding
medical insurance for the purpose of discussing alternative
approaches and proposals to providing healthcare coverage. In
addition, should State or Federal laws concerning taxation of
healthcare benefits change, the parties agree to meet and discuss
the impact of such change.
B. Additional Insurance Programs
1. IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee
to reduce taxable income for payment of allowable expenses such
as child care and medical expenses. An Association member may
request that medical, child care and other eligible expenses be paid
or reimbursed by the Section 125 Plan out of the employee's
account. The base salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide Short-term (STD) and Long -term (LTD)
disability insurance to all regular full time employees with the
following provisions:
Weekly Benefit 66.67% gross weekly wages
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Maximum Benefit $10,000 /month
Minimum Benefit $15 (STD) and $100 (LTD)
Waiting Period 30 Calendar Days (STD)
180 Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid
leave once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City -paid
life insurance is reduced by 50% of the pre -70 amount. This
amount remains in effect until the employee terminates from City
employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a
properly licensed provider. Association members and their family
members may access the EAP subject to provider guidelines.
D. The Retirement Benefit
1. Retirement Formula
The City contracts with California Public Employees Retirement
System (PERS) to provide retirement benefits for its employees.
Pursuant to prior agreements and state mandated reform, the City
has implemented first, second and third tier retirement benefits:
Tier 1: For employees hired by the City on or before November 23,
2012, the retirement formula shall be the 2.5% @ 55 calculated on
the basis of the best/single highest year.
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Tier 2: For employees first hired by the City between November 24
and December 31, 2012, or hired on or after January 1, 2013 and
are current members of the retirement system, as defined in Public
Employees Pension Reform Act, the retirement formula shall be 2%
@ 60 calculated on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1,
2013, and who do not meet the Tier 2 criteria, the retirement
formula shall be 22%P62 calculated on the average 36 highest
month's salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this 2012 -15 MOU, unit members
will contribute additional amounts toward the PERS retirement
benefit, to the extent permissible by law. Should any provision be
deemed invalid, the City and Association agree to meet for the
purpose of renegotiating employee retirement contributions. At the
conclusion of this contract employees in each Tier will contribute
12.35% of pensionable pay toward the retirement benefit,
representing a nearly 50% share in the total cost.
Employee retirement contributions that are in addition to the normal
PERS Member Contribution shall be calculated on base pay,
special pays, and other pays normally reported as "PERSable"
compensation, and will be made on a pre -tax basis through payroll
deduction, to the extent allowable by the government tax code. It is
recognized that these payments will not be reported to PERS as
contributions toward either the member or employer rate and fall
outside the scope of "cost-sharing", as provided under GC Section
20516(f).
Tier 1 Employees: Effective upon MOU adoption, 1) Employees
will continue to contribute 5.58% toward the Member Contribution
and 2.42% toward the Employer Contribution for a total of 8 %, as
provided in prior agreement, and 2) the City will eliminate reporting
the value of the 2.42% Employer Paid Member Contribution
(EPMC) as special compensation.
Effective the pay period including June 30, 2013, Tier 1 employees
shall contribute an additional 1.45% of pensionable pay toward
retirement costs pursuant to Government Code Section 20516 (t),
for a total of 9.45 %. Effective the pay period including June 30,
2014, Tier 1 employees shall contribute an additional 1.45% of
pensionable pay toward retirement costs for a total of 10.90 %;
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effective the pay period including June 30, 2015, Tier 1 employees
shall contribute an additional 1.45% of pensionable pay toward
retirement costs, for a total employee contribution of 12.35 %.
Tier 2 EmploVees: Effective upon MOU adoption, employees will
continue to contribute the full 7.0% statutory PERS Member
Contribution. Effective the pay period including June 30, 2013 Tier
2 employees shall contribute an additional 2.45% of pensionable
pay toward retirement costs pursuant to Government Code Section
20516(0, for a total of 9.45 %. Effective the pay period including
June 30, 2014, Tier 2 employees shall contribute an additional
1.45% of pensionable pay toward retirement costs; effective the
pay period including June 30, 2015, Tier 2 employees shall
contribute an additional 1.45% of pensionable pay toward
retirement costs, for a total employee contribution of 12.35 %.
Tier 3 Employees: The minimum statutory employee contribution
for employees in Tier 3 is subject to the provisions of the Public
Employees Pension Reform Act of 2012 (PEPRA) and equals 50%
of the "total normal cost'. For FY12 -13, the employee rate is 6.25%
and is subject to change based on annual PERS actuarial
valuations.
Effective the pay period including June 30, 2013, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 3.20% of base pay toward
retirement pursuant to Government Code Section 20516(1), for a
total of 9.45 %. If the FY13 -14 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
under 20516(1) will be increased or decreased accordingly, such
that the total contribution equals 9.45 %.
Effective the pay period including June 30, 2014, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 4.65% of pensionable pay
toward retirement. If the FY14 -15 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
under 20516(1) will be increased or decreased accordingly, such
that the total contribution equals 10.9 %.
Effective the pay period including June 30, 2015, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 6.10% of pensionable pay
toward retirement. If the FY15 -16 member contribution rate for
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employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
under 20516(1) will be increased or decreased accordingly, such
that the total contribution equals 12.35%.
In the event pension reform is modified by State or Federal
legislation, resulting in changes to previously negotiated terms, the
parties agree to meet and confer to discuss subsequent changes to
the contract.
The City contracts with PERS for the 41h Level 1959 Survivors Insurance
Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military
Service Credit, 2% Cost of Living Adjustment and the pre- retirement
option settlement 2 death benefit (Section 21548).
E. LIUNA Supplemental Pension
The City shall contribute, on behalf of each unit member, one and one half
percent (1.5 %) of base salary into the LIUNA Supplemental Pension Fund.
The City's sole obligation is to forward the agreed upon amount to the
fund. The City is not responsible for, nor does it make any representation
regarding, the payment of benefits to unit members.
Effective January 1, 2007, The City increased the base salary of all
members by 1.5 %, and then deducted that same amount as a mandatory
employee contribution. For tax purposes, the contributions, although
designated employee contributions, are being paid by the employer in lieu
of contributions by the employee. The contributions are deemed "picked -
up" and treated as employer contributions, thereby excluding the
employee's gross income until distributed. Employees cannot opt out of
the "pick -up," or receive the contributed amounts directly instead of having
them paid to the plan. Participation at the same level will continue to be
mandatory for members of the Association. In accordance with
correspondence received from a legal expert retained by the City, this
amount will not be taxable, except for Medicare. Minor changes to other
compensation related items that are calculated from base salary will also
result from this administrative change.
The Association agrees with the procedural change, and acknowledges
that members who leave City employment prior to vesting in the LIUNA
pension plan will still have no right to return of amounts contributed, or
other recourse against the City concerning LIUNA.
The Association and LIUNA agree to defend, indemnify and hold harmless
the City for its actions pursuant to this section.
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As of date of adoption of this MOU, pursuant to Government Code
7518.22(c) under the California Public Employees' Pension Reform Act of
2012, effective January 1, 2013, newly hired employees may be ineligible
to participate in the LIUNA Supplemental Pension Fund.
F. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit' retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one
of four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006 was less
than 50 (46 for public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City
prior to January 1, 2006, and were participating in the previous
retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan
(formerly the Medical Expense Reimbursement Program "MERP ")
a. For employees in Category 1, the program is structured as
follows:
Each employee will have an individual RHS account for bookkeeping
purposes, called his or her "Employee Account." This account will
accumulate contributions to be used for health care expense after
separation. All contributions to the plan are either mandatory
employee contributions or City paid employer contributions, so they
are not taxable to employees at the time of deposit. Earnings from
investment of funds in the account are not taxable when posted to
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the account. Benefit payments are not taxable when withdrawn,
because the plan requires that all distributions be spent for specified
health care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $1.50 per month for
each year of service plus year of age (updated every January 15`
based on status as of December 315` of the prior year). Effective
January 2008, this contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all
employees it represents, subject to the following constraints. All
employees within the Association must participate at the same level,
except that Safety members and Non - safety members within an
Association may have different levels. The participation level should
be specified as a percentage of the leave balance on hand in each
employee's leave bank at the time of separation from the City.
For example, if the Association wishes to specify 50% of the leave
balance as the participation level, then each member leaving the
City, or cashing out leave at any other time, would have the cash
equivalent of 50% of the amount that is cashed out added to the
RHS, on a pre -tax basis. The remaining 50% would be paid in cash
as taxable income. Individual employees would not have the option
to deviate from this breakout.
The Association has decided to participate in Part C contributions at
the level of zero percent (0 %) Flex/Vacation and 0% Sick Leave.
This amount may be changed, on a go forward basis, as part of a
future meet and confer process. However, the participation level
must be the same for all employees within the Association.
Additionally, the purpose and focus of these changes should be
toward long -term, trend type adjustments. Due to IRS restrictions
regarding "constructive receipt," the City will impose restrictions
against frequent spikes or drops that appear to be tailored toward
satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
22
Sick leave balances may also be included in the RHS Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Section 11.21
of the Manual contains a schedule, which specifies the amount of
sick leave that can be "cashed out," based on time of service. The
manual also caps the number of hours that can be "cashed out" at
800, and specifies that sick leave hours are "cashed out" on a 2 for 1
basis (800 hours of sick leave are converted to 400 hours for cash
purposes). Sick leave participation is a separate item from
vacation /flex leave participation, and thresholds must be separately
identified by the Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each RHS Employee Account each pay period. Eligibility
for Part B contributions is set at five years of vested City
employment. At that time, the City will credit the first five years worth
of Part B contributions into the Employee Account (interest does not
accrue during that period). Thereafter, contributions are made bi-
weekly. Part C deposits, if any, will be made at the time of
employment separation.
Each Employee has a right to reimbursement of medical expenses
(as defined below) from the Plan until the Employee Account balance
is zero. This right is triggered upon separation. If an employee
leaves the City prior to five years employment, only the Part A
contributions and Part C leave settlement contributions, if any, will be
in the RHS Employee Account. Such an employee will not be
entitled to any Part B contributions. The exception to this is a full -
time employee, participating in the program, who leaves the City due
to industrial disability during the first five years of employment. In
such cases, the employee will receive exactly five years worth of Part
B contributions, using the employee's age and compensation at the
time of separation for calculation purposes. This amount will be
deposited into the employee's RHS account at the time of separation.
Distributions from RHS Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as
defined by the Internal Revenue Code Section 213(d) (as explained
in IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
includes premiums for medical insurance, dental insurance, vision
insurance, supplemental medical insurance, long term care
23
insurance, and miscellaneous medical expenses not covered by
insurance for the employee and his or her spouse and legal
dependents — again only as permitted by IRS Publication 502.
Qualification for dependency status will be determined by guidelines
in IRC 152. If used for these purposes, distributions from the RHS
accounts will not be taxable. Cash withdrawal for any other purpose
is prohibited. Under recent IRS Revenue Ruling 2005 -24, any
balance remaining in the Employee Account after the death of the
employee and his or her spouse and /or other authorized dependents
(if any) must be forfeited. That particular RHS Employee Account will
be closed, and any remaining funds will become general assets of
the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CaIPERS participating
employer's contribution towards medical insurance after retirement.
The parties also agree that, for retirees selecting a CaIPERS medical
plan, or any other plan with a similar employer contribution
requirement, the required City contribution will be withdrawn from the
retiree's RHS account.
b. For employees in Category 2, the program is the same as for
those in Category 1, with the following exception:
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a one-
time City contribution to their individual RHS accounts that equates to
$100 per month for every month they contributed to the previous
"defined benefit" plan, to a maximum of 15 years (180 months). This
contribution will be made only if the employee retires from the City
and at the time of retirement. No interest will be earned in the
interim.
Employees in Category 2 who had less than five years service with
the City prior to implementation of the new program will only receive
Part B contributions back to January 1, 2006 when they reach five
years total service.
C. For employees in Category 3, the program is the same as for
those in Category 2, with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active work force.
Instead, the City will contribute $400 per month into each of their
RHS accounts after they retire from the City, to continue as long as
the employee or spouse is still living.
24
Each employee will contribute a flat $100 per month to the plan for
the duration of their employment to partially offset part of this
expense to the City. The maximum benefit provided by the City after
retirement is $4,800 per year, accruing at the rate of $400 per month.
There is no cash out option for these funds, and they may not be
spent in advance of receipt.
Employees in this category will also receive an additional one -time
City contribution of $75 per month for every month they contributed to
the previous plan prior to January 1, 2006, up to a maximum of 15
years (180 months). This contribution will be made to the RHS
account at the time of retirement, and only if the employee retires
from the City. No interest will be earned in the interim.
d. For employees (retirees) in Category 4, the structure is very
similar to the previous retiree medical program, except that there is
no cost share requirement, and the $400 City contribution after
retirement can be used for any IRS authorized purpose, not just City
insurance premiums.
Effective July 1, 2006, a RHS account has been opened for each
retiree in this category, and the City will contribute $400 per month to
each account as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be paid
by the City. However, specific vendor charges for individual account
transactions that vary according to the investment actions taken by each
employee, such as fees or commissions for trades, will be paid by each
employee.
The City's Deferred Compensation Committee, or its successor committee,
will have the authority to determine investment options that will be available
through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is based
(Part A); plus .25% of other compensation (Part B).
25
G. Tuition Reimbursement
NBPTEA members attending accredited community colleges, colleges,
trade schools or universities, or recognized professional organizations or
agencies 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 coursework, seminars or professional development
programs. Maximum tuition reimbursement for employees shall be $1,400
per fiscal year. Effective January 1, 2013, reimbursement will increase by
$100, for a maximum annual benefit of $1,500 per fiscal year
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 Human
Resources Director or designee.
SECTION 5. - Miscellaneous/Workinci Conditions
A. 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.
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination or
employment.
2. "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 the current
Classification or any Classification within the Series, subject to the
following:
(a) Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series: and
26
(b) Seniority shall include time spent on industrial leave, military
leave, and leave of absence without pay, but shall not
include time spent on any other authorized or unauthorized
leave of absence.
3. "Classification" shall mean one or more full time positions identical
or similar in duties not including part -time, seasonal or temporary
positions. Classification within a Series shall be ranked according
to pay (lowest ranking, lowest pay).
4. "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 following a meet and consult
process which constitute a Series.
5. "Bumping Rights ", 'Bumping" or "Bump" shall mean (1) the right of
an employee, based upon seniority within a series to bump into a
lower ranking classification within the same series, (2) to be
followed by, an employee being permitted to bump into a
classification within a different series. The latter bumping shall be
based upon unit wide seniority and shall be limited to a
classification in which the employee previously held regular status.
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.
PROCEDURE
In the event the City Manager determines to reduce the number of
employees within a classification, the following procedures are applicable:
1. Temporary and probationary employees within any classification
shall, in that order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of
seniority.
3. 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.
27
4. 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 following the Department Director's consideration of
established performance evaluations.
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 Employee Policy Manual.
REEMPLOYMENT
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 expire in 18 months. 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 within seven
(7) days of written notice of appointment. Notice shall be deemed given
when personally delivered to the employee or deposited in the U.S. Mail,
first class postage prepaid, 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 Human
Resources Director.
SEVERANCE
If an employee is laid off from their job with the City, for economic reasons,
the City will grant severance pay in an amount equal to one week of pay
for every full year of continuous employment service to the City of Newport
Beach, to a maximum of ten (10) weeks' severance pay.
B. Recruitment and Selection
Position vacancy announcements for available City positions shall be
distributed in a manner that reasonably assures unit members access to
the announcements. In order to select the most qualified individual for
vacant positions the City will continue its practice of "banding" candidates
into one of the following ratings: Outstanding, Highly Recommended,
Recommended, and Not Recommended, during the testing process.
Department Directors review qualified candidates in band order, beginning
K1
with the top band and are permitted to hire any eligible candidate from the
list (minimum rating of Recommended).
Where no less than 2 unit members achieve top three ranking on a
certified eligible list, selection to the position shall be made with
preference given to the unit members so qualified.
C. 9/80 Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently operating
successfully.
Effective the pay period beginning January 15, 2011, the 9/80 flex -
schedule will be modified as follows: employees will have the option of
alternating Fridays off only. Employees currently on a 9/80 schedule with
alternating Mondays or any other day off, will convert to Fridays off
beginning in January 2011. To ensure effective coverage, employees on
the 9/80 schedule will be divided into groups A or B, with equal numbers
of staff as much as possible, including management and supervisory staff,
off on alternating Fridays. To ensure ongoing compliance with Fair Labor
Standards Act, and to maintain organizational efficiency, deviations from
established flex days, if legally permitted, will be considered on a case -by-
case basis.
D. Labor Management Committee
The City will work with NBPTEA leadership, through its managers, to
establish labor- management committees departmentally whenever it is
mutually determined it is appropriate to do so.
E. Grievance Procedure
Any employee or group of employees may file a grievance regarding the
interpretation or application of the "Employer- Employee Relations
Resolution" (RESOLUTION 2001 -50), this MOU, or of rules and
regulations, adversely affecting an employee's wages, hours, or conditions
of employment.
A grievance shall be filed according to the following procedure:
Step 1: A grievance may be filed by any employee on his /her own behalf,
or jointly by a group of employees, or by a Recognized Employee
Organization.
Within ten (10) calendar days of the event giving rise to a grievance, the
grievant shall present the grievance in writing to the immediate supervisor.
29
Grievances not presented within the time period shall be considered
resolved.
The supervisor shall meet with the grievant to settle grievance and give a
written answer to the grievant within seven (7) calendar days from receipt
of the grievance by the supervisor. When the immediate supervisor is
also the department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's
answer, forward the grievance to the department head for consideration.
Answer to the grievance shall be made in writing by the department head,
after conferring with the grievant, within fourteen (14) calendar days from
receipt of the grievance.
Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be
made by the grievant within ten (10) calendar days from the receipt of the
department heads answer, through the representative of his /her
Recognized Employee Organization who may request a meeting with the
City Representative to resolve the grievance. Following the meeting,
answer shall be made by the City Representative, in writing, to the
representative within twenty -one (21) calendar days.
Step 4: Mediation - If the grievance is not resolved after Step 3, as an
alternative to proceeding directly to Step 5, the grievance may be
submitted to mediation. A request for mediation may be presented in
writing to the Human Resource Director within seven (7) calendar days
from the date a decision was rendered at Step 3. As soon as practicable
thereafter, or as otherwise agreed to by the parties, a mediator shall hear
the grievance. A request for mediation will automatically suspend the
normal processing of a grievance until the mediation process is
completed. The mediation process shall be optional, and any opinion
expressed by the mediator shall be informal and shall be considered
advisory.
Step 5: If the grievance is not resolved in Step 3 (or Step 4), appeal to
Step 5 may be made by the grievant within 20 calendar days of receipt of
the City Representative's answer. The grievant may, through the
representative of his /her Recognized Employee Organization request, in
writing, a hearing before the Civil Service Board.
At the next regularly scheduled meeting of the Civil Service Board the
grievance shall be heard, using Civil Service Board DeNovo procedures.
Within 20 calendar days of the hearing the Civil Service Board shall issue
its findings and conclusions to the parties at interest.
Within 7 calendar days of the issuance of Civil Service Board findings and
conclusions the City Manager shall affirm, modify or revoke the Board's
decision. The City Manager's decision shall be considered exhaustive of
administrative remedies.
F. Probation
1. Probationary Period
Newly hired employees shall serve a twelve (12) month
probationary period. The probationary period for promoted
employees shall be six (6) months.
Newly hired employees shall become eligible for their first step
increase after twelve (12) months. All other City rules regarding
step increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole
discretion of the City at any time without right of appeal or
hearing, except as provided in (c), below.
(b) Promotional Probation
An employee on promotional probation may be failed at any
time without right of appeal or hearing, except as provided in
(c), below, and except that failing an employee on
promotional probation must not be arbitrary, capricious or
unreasonable.
An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of
promotional probation.
When an employee fails his or her promotional probation,
the employee shall have the right to return to his or her
former class provided the employee was not in the previous
class for the purpose of training for a promotion to a higher
class. When an employee is returned to his or her former
class, the employee shall serve the remainder of any
uncompleted probationary period in the former class.
31
If the employee's former class has been deleted or
abolished, the employee shall have the right to return to a
class in his or her former occupational series closest to, but
no higher than, the salary range of the class which the
employee occupied immediately prior to promotion and shall
serve the remainder of any probationary period not
completed in the former class.
(c) Probationary Release
An employee who alleges that his or her probationary
release was based on discrimination by the City, may submit
a grievance within ten (10) days after receipt of the Notice of
Failure of Probation.
G. Salary on Reclassification
The City will amend its Employee Policy Manual to provide for a minimum
salary increase of five (5 %) percent upon reclassification (not to exceed
the maximum of the new salary range).
H. Employee Handbook
There will be a consolidation of documents to be given to each employee.
This consolidation will be comprised of the Employee Policy Manual,
related Departmental Rules and Regulations; Employee /Employer
Resolutions and a copy of this Memorandum of Understanding. More
information may be included.
Direct Deposit
All employees shall participate in the payroll direct deposit system.
J. Uniforms
For assigned Community Development and Public Works Department
staff whose regular daily duties involve field work outside of the office,
uniforms shall be worn at all times during regular business hours. Field
staff shall be provided with City designated collared shirts (polo or button
down as determined by Department) annually and one City designated
winter jacket; replacement on an as- needed basis. In addition, inspections
staff (Building and Public Works) will be provided one pair of work boots
annually. If the provided winter jacket or work boots are lost, the employee
shall replace them with one meeting Department specifications. Work
boots shall provide toe protection and meet Department safety standards
32
for construction sites. The Department Head or designee may approve
exceptions to wearing uniforms.
K. Separability
Should any part of this MOU or any provision herein contained be
rendered or declared invalid, by reason of any existing or subsequently
enacted Legislation, or by decree of a Court of competent jurisdiction,
such invalidation of such part or portion of this MOU shall not invalidate
the remaining portion hereto, and same shall remain in full force and
effect; provided, however, that should provisions of this MOU relating to
any schedule adjustment be declared invalid, City agrees to provide
alternative benefits agreeable to NBPTEA, to employees, which will cause
such employees to receive the same amount of money as they would
have received had such provision not been declared invalid.
L. Citywide Classification and Compensation Study
Concurrent with the adoption of this MOU, the City is undergoing a
comprehensive study of its classification and compensation structure. The
City agrees to meet with the Association during this study to discuss
preliminary findings or recommendations. The parties agree that during
the term of this MOU the City may implement the findings and
recommendations of this study regarding the compensation and
classification of employees. Prior to adopting or implementing final
recommendations, the City will meet and confer with the Association to
discuss the possible impact on its members.
Signatures are on the next page.
091
Executed this day of , 2013.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
m
Fern Nueno, President
By:
Mike Wojciechowski, Representative
CITY OF NEWPORT BEACH
m
Keith Curry, Mayor
ATTEST:
M
Leilani Brown, City Clerk
,-A PROVED AS TO FORM:
Aaron Harp, City Attorney f '115b.5
k;I
EXHIBIT A
Professional and Technical Employees Association
Represented Classifications
Accountant
Accountant, Senior
Building Inspector I
Building Inspector 11
Building Inspector, Principal
Building Inspector, Senior
Buyer, Senior
Civil Engineer, Associate
Civil Engineer, Associate 5%
Civil Engineer, Associate Plan Check
Civil Engineer, Junior
Civil Engineer, Junior 5%
Civil Engineer, Plan Check
Civil Engineer, Public Works
Civil Engineer, Senior Plan Check
Civil Engineer, Senior
City Surveyor
Code Enforcement Officer
Code Enforcement Officer I
Code Enforcement Officer, Senior
Code Enforcement Supervisor
Code Enforcement Trainee
Construction Inspection Supervisor
Emergency Services Coordinator
EMP Plans Examiner
Engineering Technician
Engineering Technician, Senior
Information Systems Coordinator
GIS Analyst
GIS Technician
Harbor Resources Supervisor
Harbor Resources Technician I
Harbor Resources Technician II
Information Systems Coordinator
Information Technology Applications Analyst
Information Technology Applications Analyst, Senior
Information Technology Applications Supervisor
Information Technology Operations Supervisor
Information Technology Specialist ///
Information Technology Specialist, Senior
Library Information Systems Administrator
35
Management Assistant
Marine Protection and Education Supervisor
Permit Counter Supervisor
Permit Technician I
Permit Technician 11
Planner, Assistant
Planner, Associate
Planner, Senior
Planning Technician
Public Works Inspector
Public Works Inspector II
Public Works Inspector, Senior
Real Property Administrator
Residential Building Records Inspector
Revenue Auditor
Telecommunications Specialist
Traffic Engineering Technician
Traffic Engineering Technician, Senior
Urban Forester
Water Conservation Coordinator
91.1
Exhibit B
Professional and Technical Employees Association Eligible Certificates
for the period July 1, 2012 through June 30, 2015
Monthly $ Amt
Certificate
Eligible Positions
% of Pay
(as of 1 /1 /14)
City Mana er's Office -- Information Technology I7
Geographic Information System Professional
GIS Analyst
1.0%
$75
(GISP)
GIS Technician
$75
CCENT (Cisco Certified Entry Networking
IT Operations Supervisor
1.0%
$85
Technician)
IT Specialist, Sr.
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stms Administrator
CCNA certification (Cisco Certified Network
IT Operations Supervisor
1.0%
$85
Associate)
IT Specialist, Sr.
IT Specialist 1 /II /III
Info Sys Coordinator
Library Info s stms Administrator
CCNP (Cisco Certified Network Professional)
IT Operations Supervisor
2.0%
$85
IT Specialist, Sr.
IT Specialist 1 /II /III
Info Sys Coordinator
Library Info S stmsAdministrator
Microsoft Certified Technology Specialist
IT Operations Supervisor
1.0%
$75
(MCTS)
IT Specialist, Sr.
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stms Administrator
Microsoft Certified IT Professional (MCITP)
IT Operations Supervisor
1.0%
$85
IT Specialist, Sr.
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stmsAdministrator
Microsoft Certified Professional Developer
IT Operations Supervisor
1.0%
$75
(MCPD)
IT Specialist, Sr.
IT Specialist 1 /11 /111
Info Sys Coordinator
Library Info S stmsAdministrator
Microsoft Certified Systems Administrat ors
IT Operations Supervisor
1.0%
$85
(MCSAS)
IT Specialist, Sr.
IT Specialist 1 /II /111
Info Sys Coordinator
Library Info S stmsAdministrator
Microsoft Certified Systems Engineers (MCSEs)
IT Operations Supervisor
1.0%
$75
IT Specialist, Sr.
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stmsAdministrator
Microsoft Certified Professional (MCP) **
IT Operations Supervisor
1.0%
$75
IT Specialist, Sr.
IT Specialist 1 /II /III
Info Sys Coordinator
11-ibrary Info S stmsAdministrator
Exhibit B
Professional and Technical Employees Association Eligible Certificates
for the period July 1, 2012 through June 30, 2015
Monthly $ Amt
Certificate
Eligible Positions
%of Pay
(as of 1/1/14)
CompTIA A+
IT Operations Supervisor
1.0%
$75
IT Specialist, Sr.
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stmsAdministrator
Virtual Infrastructure Professional (VIP) or
IT Operations Supervisor
1.0%
$75
VMWare Certified Professional (VCP)
IT Specialist, Sr.,
IT Specialist 1 /11 /III
Info Sys Coordinator
Library Info S stmsAdministrator
Land Surveyor in Training (LSIT) ** or
GIS Analyst
1.0%
$75
Fundamental of Surveying (FS) **
Municipal Operations Department
Certified Arborist
Urban Forester
1.0%
$75
Certified Comm'I Pesticide Applicator
Urban Forester
1.0%
$65
Public Works
Traffic Engineer
Junior Engineer
1.0%
$85
Associate Civil Engineer
Associate Engineer
Senior En ineer (rev 2/29/08
IMSA (International Municipal Signal
Traffic Engineering Technician
1.0%
$75
Association ) Levels 11 & III
Prestressed Concrete Special Inspector **
PW Inspector I & 11, Sr PW Inspector, Construction
1.0%
$7S
Inspection Supv., Principal Building Inspector, Senior
Building Inspector, Building Inspector
Structural Masonry Special Inspector **
PW Inspector I & 11, Sr PW Inspector, Construction
1.0%
$75
Inspection Supv., Principal Building Inspector, Senior
Building Inspector, Building Inspector
Reinforced Concrete Special Inspector **
PW Inspector I & 11, Sr PW Inspector, Construction
1.0%
$75
Inspection Supv., Principal Building Inspector, Senior
Building Inspector, Building Inspector
Community Development Department & Public Works (Code & Water Quality Enforcement)
Certified Code Enforcement Officer (CACEO)
CWQ Enfrc Officer, Sr CWQ Enfrc Offcr
1.0%
$65
Certificate in Investigative Interview and
CWQ Enfrc Officer, Sr CWQ Enfrc Offcr
0.5%
$45
lnterrog Techniques (BAT)) **
Community Development Department (Planning)
American Institute of Certified Planners
Planner, Sr.
2.0%
$85
(AICP) **
Planner, Associate
Planner, Assistant
Planning Technician
AICP Exam Fee
Planner, Sr.
Onetime payment for Exam
Planner, Associate
Fee up to $425; refundable if
Planner, Assistant
APA application is rejected
IPlanning Technician
Exhibit B
Professional and Technical Employees Association Eligible Certificates
for the period July 1, 2012 through June 30, 2015
** Per 2012 -15 MOU, only those unit members receiving the certificate pay at time of MOU adoption are eligible for the benefit.
Certificates will "sunset" upon certificate lapse or employee separation.
—7
Monthly $ Amt
Certificate
Eligible Positions
% of Pay
1
(as of 1/1/14)
Community Development Department & Public Works
ICC Permit Technician
All represented Prof Tech Positions from the Building
1.0%
$70
California Residential Building Inspector
Division, Cade Enforcement, and Public Works
1.0%
$75
California Residential Electrical Inspector
Department, not specifically covered in MOU
1.0%
$75
California Residential Plumbing Inspector
1.0%
$75
California Residential Mechanical Inspector
1.0%
$75
California Commercial Building Inspector
1.0%
$75
California Commercial Electrical Inspector
1.0%
$75
California Commercial Plumbing Inspector
1.0%
$75
California Commercial Mechanical Inspector
1.0%
$75
California Access specialist Casp
2.0%
$100
ICC California Building Plans Examiner
1.0%
$85
ICC Building Plans Examiner
1.0%
$85
ICC Electrical Plans Examiner
1.0%
$85
ICC Mechanical Plans Examiner
1.0%
$85
ICC Plumbing Plans Examiner
1.0%
$85
ICC Commercial Building Inspector
1.0%
$75
ICC Commercial Electrical Inspector
1.0%
$75
ICC Commercial Plumbing Inspector
1.0%
$75
ICC Commercial Mechanical Inspector
1.0%
$75
Residential Fire Sprinkler Inspector /Plans
1.0%
$75
Examiner
LEED AP (USGBC) **
Plan Check Engineers, Sr. Plan Check Engineer, Civil
2.0%
$85
ICC Certified Building Official (CBO) **
Engineer, Sr, Civil Engineer, Senior Planner, Associate
2.0%
$85
Planner Assistant Planner
** Per 2012 -15 MOU, only those unit members receiving the certificate pay at time of MOU adoption are eligible for the benefit.
Certificates will "sunset" upon certificate lapse or employee separation.
ATTACHMENT C
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH EMPLOYEES LEAGUE
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach Employees' League for the period of July 1,
2010, through June 30, 2012; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach Employees League have met and conferred in good faith and
agreed to modify the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach Employees' League by adopting successor Memorandum of Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Newport Beach Employees' League
shall be provided in accordance with the provisions of the attached Memorandum of
Understanding (Exhibit C).
Section 2. The term of the Memorandum of Understanding shall be for 36
months, commencing retroactively to July 1, 2012, and will remain in full force and effect
through June 30, 2015.
Adopted this day of 2013.
M
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EXHIBIT C
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
NEWPORT BEACH EMPLOYEES LEAGUE
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
PREAMBLE
1. The NEWPORT BEACH EMPLOYEES LEAGUE ( "NBEL "), 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. NBEL representatives and City representatives have reached agreement as to
wages, hours and other terms and conditions of employment for the period from
July 1, 2012 through June 30, 2015 and this agreement has been embodied in
this MOU.
3. This MOU, upon approval by NBEL 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
City hereby confirms its prior certification of NBEL as the recognized employee
organization for the employees in the Construction and Maintenance Unit, and
agrees to meet and confer and otherwise deal exclusively with NBEL on all
matters within the scope of representative pertaining to said employees as
authorized by law.
B. Duration of Memorandum
1. Except as specifically provided otherwise, any ordinance, resolution or
action of the City Council necessary to implement this MOU shall be
considered effective as of July 1, 2012. This MOU shall remain in full
force and effect until June 30, 2015, 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.
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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.
C. Release Time
1. Four NBEL officers designated by the NBEL shall collectively be granted
950 hours paid release time maximum, annually, for the conduct of NBEL
business. Such time shall be exclusive of actual time spent in collective
bargaining and shall be scheduled at the discretion of the NBEL officer.
Every effort will be made to schedule this time to avoid interference with
City operations.
2. Release time designees shall be identified annually and notice shall be
provided to the City. Release time incurred shall be reported regularly in
the form and manner prescribed by the City.
3. Activities performed on release time shall include representation of
members in rights disputes; preparation for collective bargaining activities,
and distribution of NBEL written communication in the work place.
4. In January 2094 and 2095, the City will examine the number of Release
Time hours the Association used the preceding year If the Association
used in excess of 75% of the hours normally granted (950), the
Association will be granted an additional 30 hours for that year
D. Employee Data and Access
The NBEL will be provided on a regular basis with a listing of all unit members.
The listing will include name, department, and job title. Information concerning
the NBEL prepared by the NBEL will be provided to new field employees at the
time of orientation. NBEL officials shall be entitled to solicit membership from
field employees who are not members or who are new City employees assigned
to a field department.
E. 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
2. 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.
3. 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 the Employer - Employee
Relations Resolution No. 2001 -50. Management Rights include, but are
not limited to, the following:
(a) the determination of the purposes and functions of City
Departments;
(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;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which
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; and
Q) 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.
F. Conclusiveness
With the exception of a separate MOU covering retirement issues, this MOU
contains all of the covenants, stipulations, and provisions agreed upon by the
3
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.
As provided in the Employer - Employee Relations Resolution No. 2001 -50, the
City shall determine the manner in which City services are to be provided,
including whether the City should provide services directly or contract out work,
including work that is currently being performed by Association members. In the
event the City introduces a plan to outsource services currently being performed
by Association members to achieve greater efficiency and /or cost savings, and
upon request by the Association, the City shall meet and confer with Association
representatives to discuss the impacts of the City's decision to contract out work.
The City shall retain sole authority to decide whether or not to contract out work,
including work that is currently being performed by Association members. This
provision shall not limit the City's authority to enter into such an agreement for
any City services.
G. 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.
The parties have determined certain contract provisions may be outdated or
inconsistent with policy, charter, or Federal, State or local law. Effective during
the term of the MOU City and Association representatives will review the contract
document with the intent of proposing simplified and appropriate language,
content and formatting.
H. Agency Shop
1. Unit employees, by majority vote, have elected for an Agency Shop
provision.
2. The Association shall comply with all statutory and legal
requirements regarding agency shop, should it be approved
through the election process. This will include all requisite
procedures for appeals, record - keeping, establishment of the
service fee amount; designating acceptable charities pursuant to
Section 3502.5 of the Government Code, etc.
0
3. Complying with agency shop provisions shall not be a condition of
employment. Enforcement shall be the responsibility of the
Association; utilizing appropriate civil procedures. The City will
cooperate with Association efforts to achieve enforcement.
4. The collection of Association dues and /or service fees shall
continue to be handled through the payroll deduction process.
5. NBEL agree to defend, indemnify and hold harmless the City for its
action pursuant to this section.
SECTION 2.— Compensation
A. Salary
Effective the pay period including January 1, 2013 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2012 with a minimum 1.5% increase and a maximum
2.5% increase.
Effective the pay period including January 1, 2014 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles/Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2013 with a minimum 1.5% increase and a maximum
2.25% increase.
Effective the pay period including January 1, 2015 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2014 with a minimum 1.5% increase and a maximum
2.0% increase.
B. Overtime
1. Definitions
(a) Miscellaneous Employee - An employee designated as a
Miscellaneous member of the Public Employees Retirement
System (PERS).
(b) Overtime - Normal overtime is defined as any scheduled hours
worked in excess of the basic work week. For the purposes of this
section, the basic work week is 40 hours, or as determined by the
5
Department Director and approved by the City Manager which
occurs between a fixed and regularly recurring period of 168 hours
- 7 consecutive 24 hour periods - beginning at 0001 on Saturday
and ending at midnight the following Friday (or as otherwise
designated by the City Manager).
(c) Incidental Overtime - Incidental overtime is any extension of the
basic work shift of less than 1/10 of an hour that is non - recurrent.
(d) Hours Worked - Hours worked are defined as hours which
employees are required to be performing their regular duties or
other duties assigned by the City.
2. Compensation
Overtime for all non - exempt employees shall be paid at one - and - one -half
(1 -1/2) times the employee's regular rate of pay. Reporting of overtime on
payroll forms will be as prescribed by the Administrative Services Director.
Incidental overtime is not compensable.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays and pre - scheduled
vacation or flex leave occurring during the regular work week will count as
time worked. The floating holiday is excluded from this provision.
C. Standby Duty
1. Defined
(a) To be ready to respond immediately to calls for service;
(b) To be reachable by telephone;
(c) To remain within a specified distance from his /her work
station; and
(d) To refrain from activities which might impair the employee's
ability to perform his /her assigned duties.
2. Compensation
(a) Standby duty shall be compensated at the rate of one (1)
hour of overtime compensation for each eight (8) hours of
such duty. Standby duty on holidays shall be compensated
0
at the rate of two (2) hours of overtime compensation for
each (8) hours of standby duty. Should the employee be
required to return to work while on standby status, the
provisions pertaining to compensation for call -back pay shall
apply for the actual period of time the employee is in a work
status.
(b) Standby duty compensation for Utility employees shall be
capped at the minimum wage rate ($8.00 per hour) in effect
December 31, 2012,
3. Review of Standby /Call -Back Programs
Effective January 2014 the parties agree to reexamine the Standby and
Call -Back pay programs for the purpose of considering equity and parity.
D. Call -Back Duty
1. Defined
Call -back duty requires the employee to respond to a request to return to
his /her work station after the normal work shift has been completed and
the employee has left his /her normal work station. Those periods of
overtime which had been scheduled by the Department Director prior to
the end of the normal work shift are not considered call -back duty.
2. Compensation
All personnel on call back duty eligible for overtime pay shall be
guaranteed two (2) hours pay, or pay for one - and - one -half (1 -1/2) times
the number of hours worked, whichever is greater.
E. Accumulation of Compensatory Time Off
City employees represented by the NBEL may receive compensatory time
off, in lieu of cash, as compensation for overtime hours worked.
Compensatory time shall be calculated at the rate of one and one half
hours for each hour of overtime worked beyond the 40 hour limit of the
work week. Compensatory time is to be granted only when the employer
and the employee agree that the application of "Comp Time" is a desirable
substitute for the payment of cash for overtime. Call -back time may be
converted to comp time with supervisor approval.
Employees may accumulate up to eighty (80) hours of Compensatory
Time. Any hours in excess of eighty (80) will be paid off. Accumulation in
7
excess of the eighty (80) hours may be approved at the discretion of the
Department Director.
F. Night Shift Differential
The City agrees to pay $1 per hour night shift differential for Employees working
a regularly scheduled work shift of which four or more hours are worked between
the hours of 5p.m. and 5a.m. Overtime worked as an extension of an assigned
day shift shall not qualify an employee for night shift differential. The differential
pay is paid only for hours actually worked.
In accordance with this provision, City agrees to pay $.50 per hour night shift
differential to automotive shop mechanics for hours worked after 5:00 p.m.
G. Differential Pav for One Man Packer
The differential pay for the operation of a one man packer shall be 18 %.
H. Acting Pav
NBEL employees will be eligible to receive "acting pay" only after completing 80
consecutive hours in the higher classification. Acting pay is 107.5% of the
employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will be
granted for all hours worked above 40 hours beginning with the 41 st hour worked
in the higher classification.
Certification Pay
Payment for State or governing body certifications will be made on a bi- weekly
basis for League represented employees holding a valid and current certification
in areas indicated below. Employees may submit proof of valid certificates,
including renewals, upon completion. The bi- weekly payment for such eligible
certificates will begin the first pay period following department approval.
1. Water or Wastewater Operator -
Grade 1- $110
Grade II - $220
Grade III - $330
Grade IV - $540
Grade V - $600
Fl
2. Backflow Certification - $220
3. Qualified Applicator Certificate - $110. for each category up to a maximum
of $330.
4. Fire Mechanic State Level 1- $110
5. Fire Mechanic State Level If - $220
6 Certified Arborist - $110
7. ASE Certification - $55 each and $220 for possessing a current ASE
Master Truck Technician and $220 for possessing a current ASE Master
Automobile Technician certification.
8. Commercial Drivers License, Class A - $220
9. Commercial Drivers License, Class B - $165
10. Public Works Certificates* I and II $200 (each).
('18 -20 Jr. College units each)
11. Water Utility Science Certification - $200
12. Cross Connection Specialist - $110
Effective the pay period including January 1, 2013 Certificate Pay shall be
modified as follows:
• Water or Wastewater Operator Grade V shall be increased to $700
annually.
• Employees possessing a valid Fire Mechanic 111 certification shall be
eligible for annual certificate pay of $400
• Employees possessing a valid Crane Certification shall be eligible for
annual certificate pay of $110
• The maximum certificate pay benefit for unit members shall be $2,500
annually.
The City will continue its practice of reimbursing employees for the following: 1)
application, testing, and certification fees for successfully completing certification
examinations for the above listed certificates, and 2)required physicals when
employees obtain /renew required Class A or B Drivers Licenses.
E
J. Court Time
Employees who are required to appear in Court during their off -duty hours in
connection with City business shall receive overtime compensation for the
number of hours they spend in court, with a minimum of two (2) hours of such
compensation.
SECTION 3. - Leaves
A. Flex Leave
1. NBEL members shall accrue Flex leave at the following rates:
Effective the pay period including January 1, 2013, all unit members shall accrue
Flex leave at the following rates (superseding the rates listed above):
Maximum
Years of Continuous
Hrs Accrued per
Annual
Allowable
Service
Pay Period
Annual Days
Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
Effective the pay period including January 1, 2013, all unit members shall accrue
Flex leave at the following rates (superseding the rates listed above):
During the first six months of full -time employment, new employees shall
not accrue flex leave. At the completion of six months of employment six
(6) months of flex leave will be placed in the employee's account.
1 0
Maximum
Years of Continuous
Hrs Accrued per
Annual
Allowable
Service
Pay Period
hours
Balance (hours)
1 but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
During the first six months of full -time employment, new employees shall
not accrue flex leave. At the completion of six months of employment six
(6) months of flex leave will be placed in the employee's account.
1 0
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of flex leave time to be used for
illnesses only. If employee terminates employment prior to six months,
the employee will repay the City equivalent to the number of paid leave
days advanced from the employee's final check. Any flex leave time
advanced during the first six months of employment will be subtracted
from the six (6) months of accrual placed in the employees account upon
completion of six months employment.
Effective January 2014 the parties agree to review, via a survey process,
the comparability of Flex leave accrual in relation to parity with other units.
2. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal to
seventy eight times (78) the member's bi- weekly accrual rate. Any paid
leave earned in excess of this level will be paid on an hour for hour basis
in cash (spill over pay) at the employee's hourly rate of pay. Members
hired prior to July 1, 1996 shall be paid for earned flex leave in excess of
the maximum permitted accrual at the members hourly rate of pay
provided that they have utilized at least eighty (80) hours of flex leave the
previous calendar year. Employees who have not utilized the required
amount of leave the prior calendar year shall not be eligible to accrue time
above the maximum accrual limit.
Employees first hired, or rehired by the City subsequent to July 1, 1996
shall not be eligible for flex leave spill over pay and shall not be entitled to
accrue flex leave in excess of the flex leave accrual threshold.
3. Method of Use
Flex leave may not be taken in excess of that actually accrued and in no
case, except for illness, may it be taken prior to the completion of an
employee's initial probationary period.
The Department Director shall approve all requests for flex leave taking
into consideration the needs of the Department, and whenever possible
the seniority and wishes of the employee. Flex leave may be granted on
an hourly basis.
B. Vacation Leave
This section applies only to those Regular Full -time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex Leave
program.
11
1. Basis for Accrual /Full -Time Employees
Employees entitled to vacation leave- with -pay shall accrue such leave
based on years of continuous service and the number of hours in a normal
work week for the position to which they are assigned in accordance with
the following schedule:
Years of
Accrual per pay
Continuous
period hrs
Service
0 but less than 5
3.38
5 but less than 9
3.99
9 but less than 12
4.61
12 but less than 16
5.22
16 but less than 20
5.84
20 but less than 25
6.46
25 and over
7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31st of each year with
the following exception: with approval of the Department Director, an
employee may accrue vacation days in excess of the two -year limit
provided all such excess accumulation is taken by March 31st of the
following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. The
Department Director shall schedule and approve all vacation leaves for
employees taking into consideration the needs of the Department, and
whenever possible, the seniority and wishes of the employee. Vacation
leave may be granted on an hourly basis. Any fraction over an hour shall
be charged to the next full hour.
C. Sick Leave
This section applies only to those Regular Full -time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex Leave
program.
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1. Basis for accrual
Full -time, regular employees shall accrue sick leave based on the number
of hours in a normal work week for the position to which they are assigned
in accordance with the following schedules:
Normal Work Week :40 hours
Service Time
0 -1 year
1 -2 years
2 -3 years
3 -4 years
4+
2. Method of Use
(a) General
3.
Monthly Accrual
4 hours
5 hours
6 hours
7 hours
8 hours
Sick leave may not be taken in excess of that actually accrued.
Sick leave may be granted on an hourly basis.
(b) Approval
Sick leave may be granted only at the discretion of or with the
approval of the Department Director and only for the purposes
defined in Section 11.2 of the Employee Policy Manual.
Sick Leave Conversion
Employees who at the end of the calendar year have an accrued level of
sick leave equal to or greater than the full value of 50 months of accrued
sick leave, and who have used six or less days of sick leave during that
calendar year will be permitted (only once per year) to convert up to six (6)
days of sick leave to either salary or paid vacation at the value of 50%
(maximum value of 3 days per year). Eligible sick leave days converted to
cash shall be at the employee's option. Eligible sick leave days converted
to paid vacation shall require the approval of the Department Director.
D. Holiday Leave
1. Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other except
13
PA,
those personnel whose work assignments, in the judgment of the
Department Director require their presence on the job. For each
designated holiday, except the Floating Holiday, such excepted personnel
shall receive an equivalent number of hours of paid flex leave or
equivalent pay whichever in the judgment of the Department Director best
serves the interest of the Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
July 4
1st Monday in Sept.
November 11
4th Thurs. in November
Last 1/2 of working day
December 25
Last 1/2 of working day
January 1
3rd Monday in February
Last Monday in May
3rd Monday in January
July 1st- 1 day
For 2092 only, the % day Christmas Eve and % day New Year's Eve
holidays will be considered full 8 -hour holidays.
Effective the pay period including January 9, 2093 holidays will be paid
based on the employee's regular work day schedule, For example, if an
employee is on a 9180 schedule and the holiday is observed on a day that
the employee is regularly scheduled to work 9 hours, the employee is
entitled to receive 9 hours of holiday pay. However, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is
regularly scheduled to work 8 hours, the employee is entitled to receive 8
hours of holiday pay. Employees will receive 8 hours of holiday pay
annually for the Floating Holiday.
Holidays listed above (except the floating holiday) occurring on a Saturday
shall be observed the preceding Friday. Holidays occurring on a Sunday
shall be observed the following Monday. (Half day holidays shall be
observed prior to the observed holiday).
Holiday Pay Eligibility
Following are the limitations on eligibility for Holiday Pay:
(a) Holiday Pay will be paid only to employees who work their
scheduled day before and scheduled day after a holiday, or are on
iiLl
authorized leave (e.g. approved vacation, or sick leave, that has
been approved by the Department Director).
(b) Newly hired employees will be eligible to receive full pay for
scheduled holidays, without a waiting period.
E. Bereavement Leave
The provisions of the Bereavement Leave Policy applicable to affected
employees shall be as follows:
1. Defined
The necessary absence from duty by an employee having a regular or
probationary appointment, because of the death or terminal illness in
his /her Immediate Family. For the purposes of this section, Immediate
Family shall mean father and mother (including step), brother, sister,
spouse /domestic partner, child, grandparents and the Employee's
spouse's /domestic partner's father, mother, brother, sister, child and
grandparents.
2. Maximum Allowed
Such leave shall be limited to five (5) working days per incident.
F. Leave Sellback
Twice annually, employees shall have the option of selling back on an hour for
hour basis, accrued flex or vacation leave. In no event shall the flex or vacation
leave balance be reduced below one hundred and sixty (160) hours. Hours sold
back will be subject to the Retiree Health Savings Plan Part C contributions, per
Section 4 (F), Retiree Medical. For the term of this MOU the Association has
elected Part C contributions for Flex/Vacation at 0 %.
SECTION 4. —Fringe Benefits
A. Health Insurance
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC) composed of
one representative from each employee association group and up to three
City representatives. The Benefits Information Committee has been
established to allow the City to present data regarding carrier and
15
coverage options, the cost of those options, appropriate coverage levels
and other health programs. The purpose of the BIC is to provide each
employee group with information about health insurance /programs and to
receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to
the contribution amounts listed below, the City shall contribute the
minimum CaIPERS participating employers contribution towards medical
insurance for employees enrolled in a CalPERS medical plan, per
Government Code Section 22892. Employees shall have the option of
allocating Cafeteria Plan contributions towards the City's existing medical,
dental and vision insurance /programs. The City and the Newport Beach
Employees League will cooperate in pursuing additional optional benefits
to be available through the Cafeteria Plan.
Unused Cafeteria Plan funds shall be payable to the employee as taxable
cash back. Employees shall be allowed to change coverage in accordance
with plan rules and during regular open enrollment periods.
Effective the first pay issue in January 2013, the City's contribution
towards the Cafeteria Plan will increase to $1,349 (plus the minimum
CaIPERS participating employer's contribution).
Effective the first pay issue in January 2014, the City's contribution
towards the Cafeteria Plan will increase to $1,449 (plus the minimum
CaIPERS participating employer's contribution).
Effective the first pay issue in January 2015, the City's contribution
towards the Cafeteria Plan will increase to $1,549 (plus the minimum
CaIPERS participating employer's contribution).
NBEL members who do not want to enroll in any medical plan offered by
the City must provide evidence of group medical insurance coverage, and
execute an opt -out agreement releasing the City from any responsibility or
liability to provide medical insurance coverage on an annual basis. The
maximum cafeteria allowance provided to employees who execute an opt -
out agreement is $1,249 per month effective January 2013. Employees
hired after adoption of this 2012 -2015 MOU, and who execute an opt -out
agreement, will receive a maximum cafeteria allowance of $600 per
month.
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3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the
City's health plan offerings as agreed upon by the Benefits information
Committee.
4. Vision Insurance
The existing or comparable vision plan shall be maintained as part of the
City's health plan offerings as agreed upon by the Benefits Information
Committee.
5. Healthcare Reform
The parties recognize that certain State and Federal laws, programs and
regulations, including the Affordable Care Act, may impact future medical
plan offerings. In the event reform measures alter healthcare coverage
options, cost, or other elements of healthcare services that materially alter
the provisions of this MOU, either party may request to reopen Section
4(a)(2) regarding medical insurance for the purpose of discussing
alternative approaches and proposals to providing healthcare coverage.
In addition, should State or Federal laws concerning taxation of healthcare
benefits change, the parties agree to meet and discuss the impact of such
change.
B. Additional Health Insurance /Programs
1. IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee to
reduce taxable income for payment of allowable expenses such as child
care and medical expenses. An Association member may request that
medical, child care and other eligible expenses be paid or reimbursed by
the Section 125 Plan out of the employee's account. The taxable salary of
the employee will be reduced by the amount designated by the employee
for reimbursable expenses.
2. Disability Insurance
The City shall provide disability insurance to all regular full time employees
with the following provisions:
Weekly Benefit 66.67% gross weekly wages
Maximum Benefit $10,000 /month
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Minimum Benefit $15 (STD) and $100 (LTD)
Waiting Period 30 Calendar Days (STD)
180 Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves prior to
receiving benefits under the disability insurance program. Employees may
not supplement the disability benefit with paid leave once the waiting
period has been exhausted.
Concurrent with the commencement of this program, employees assumed
responsibility for the payment of the disability insurance cost in the amount
of one (1 %) percent of base salary. Simultaneously, the City increased
base wages by one (1 %) percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time employees in
$1,000 increments equal to one times the employee's annual salary up to
a maximum of $50,000. At age 70 the City -paid life insurance is reduced
by 50% of the pre -70 amount. This amount remains in effect until the
employee terminates from City employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access
the EAP subject to provider guidelines.
D. The Retirement Benefit
1. Retirement Formula
The City contracts with PERS to provide retirement benefits for its
employees. Pursuant to prior agreements and state mandated reform, the
City has implemented first, second and third tier retirement benefits:
Tier 1: For employees hired by the City on or before November 23, 2012,
the retirement formula shall be the 2.5% @ 55 calculated on the basis of
the best/single highest year.
Tier 2: For employees first hired by the City between November 24 and
December 31, 2012, or hired on or after January 1, 2013 and are current
members of the retirement system, as defined in Public Employees
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Pension Reform Act, the retirement formula shall be 2% @ 60 calculated
on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1, 2013,
and who do not meet the Tier 2 criteria, the retirement formula shall be
2.0% @62 calculated on the average 36 highest month's salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this 2012 -15 MOU, unit members will
contribute additional amounts toward the PERS retirement benefit, to the
extent permissible by law. Should any provision be deemed invalid, the
City and Association agree to meet for the purpose of renegotiating
employee retirement contributions. At the conclusion of this contract
employees in each Tier will contribute 12.35% of pensionable pay toward
the retirement benefit, representing a nearly 50% share in the total cost.
Employee retirement contributions that are in addition to the normal PERS
Member Contribution shall be calculated on base pay, special pays, and
other pays normally reported as "PERSable" compensation, and will be
made on a pre -tax basis through payroll deduction, to the extent allowable
by the government tax code. It is recognized that these payments will not
be reported to PERS as contributions toward either the member or
employer rate and fall outside the scope of "cost- sharing ", as provided
under GC Section 20516(1).
Tier 1 Employees: Effective upon MOU adoption, 1) Employees will
continue to contribute 5.58% toward the Member Contribution and 2.42%
toward the Employer Contribution for a total of 8 %, as provided in prior
agreement, and 2) the City will eliminate reporting the value of the 2.42%
Employer Paid Member Contribution (EPMC) as special compensation.
Effective the pay period including June 30, 2013, Tier 1 employees shall
contribute an additional 1.45% of pensionable pay toward retirement costs
pursuant to Government Code Section 20516 (f), for a total of 9.45 %.
Effective the pay period including June 30, 2014, Tier 1 employees shall
contribute an additional 1.45% of pensionable pay toward retirement costs
for a total of 10.90 %; effective the pay period including June 30, 2015, Tier
1 employees shall contribute an additional 1.45% of pensionable pay
toward retirement costs, for a total employee contribution of 12.35 %.
Tier 2 Employees: Effective upon MOU adoption, employees will continue
to contribute the full 7.0% statutory PERS Member Contribution. Effective
the pay period including June 30, 2013 Tier 2 employees shall contribute
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an additional 2.45% of pensionable pay toward retirement costs pursuant
to Government Code Section 20516(f), for a total of 9.45 %. Effective the
pay period including June 30, 2014, Tier 2 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs; effective the
pay period including June 30, 2015, Tier 2 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs, for a total
employee contribution of 12.35 %.
Tier 3 Employees: The minimum statutory employee contribution for
employees in Tier 3 is subject to the provisions of the Public Employees
Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal
cost'. For FY12 -13, the employee rate is 6.25% and is subject to change
based on annual PERS actuarial valuations.
Effective the pay period including June 30, 2013, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 3.20% of base pay toward
retirement pursuant to Government Code Section 20516(1), for a total of
9.45 %. If the FY13 -14 member contribution rate for employees in Tier 3 is
greater or less than 6.25 %, as determined by PERS valuation, the
additional contribution made by the employee under 20516(1) will be
increased or decreased accordingly, such that the total contribution equals
9.45 %.
Effective the pay period including June 30, 2014, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 4.65% of pensionable pay toward
retirement. If the FY14 -15 member contribution rate for employees in Tier
3 is greater or less than 6.25 %, as determined by PERS valuation, the
additional contribution made by the employee under 20516(1) will be
increased or decreased accordingly, such that the total contribution equals
10.9 %.
Effective the pay period including June 30, 2015, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 6.10% of pensionable pay toward
retirement. If the FYI 5-16 member contribution rate for employees in Tier
3 is greater or less than 6.25 %, as determined by PERS valuation, the
additional contribution made by the employee under 20516(1) will be
increased or decreased accordingly, such that the total contribution equals
12.35 %.
In the event pension reform is modified by State or Federal legislation,
resulting in changes to previously negotiated terms, the parties agree to
meet and confer to discuss subsequent changes to the contract.
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The City contracts with PERS for the 4m Level 1959 Survivors Insurance
Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military
Service Credit, 2% Cost of Living Adjustment and the pre- retirement
option settlement 2 death benefit (Section 21548).
E. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the previous
"defined benefit" retiree medical program with a new "defined contribution"
program. The process of fully converting to the new program will be ongoing for
an extended period. During the transition, employees and (then) existing retirees
have been administratively classified into one of four categories. The benefit is
structured differently for each of the categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006, whose
age plus years of service as of January 1, 2006 was less than 50 (46 for
public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006, whose
age plus years of service was 50 or greater (46 for public safety
employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City prior to
January 1, 2006, and were participating in the previous retiree medical
program.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Program
(formerly the Medical Expense Reimbursement Program WERP ").
a. For employees in Category 1, the program is structured as follows:
Each employee will have an individual RHS account for bookkeeping
purposes, called his or her "Employee Account." This account will
accumulate contributions to be used for health care expense after
separation. All contributions to the plan are either mandatory employee
contributions or City paid employer contributions, so they are not taxable to
employees at the time of deposit. Earnings from investment of funds in the
account are not taxable when posted to the account. Benefit payments are
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not taxable when withdrawn, because the plan requires that all distributions
be spent for specified health care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1 % of Salary.
Part B contributions (employer contributions): $1.50 per month for each
year of service plus year of age (updated every January 15` based on status
as of December 3151 of the prior year). Effective January 2008, this
contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all employees it
represents, subject to the following constraints. All employees within the
Association must participate at the same level, except that Safety members
and Non - safety members within an Association may have different levels.
The participation level should be specified as a percentage of the leave
balance on hand in each employee's leave bank at the time of separation
from the City.
For example, if the Association wishes to specify 50% of the leave balance
as the participation level, then each member leaving the City, or cashing out
leave at any other time, would have the cash equivalent of 50% of the
amount that is cashed out added to the RHS, on a pre -tax basis. The
remaining 50% would be paid in cash as taxable income. Individual
employees would not have the option to deviate from this breakout.
The Association has decided to participate in Part C contributions at the
level of zero percent (0 %) Flex/Vacation and 0% Sick Leave. This amount
may be changed, on a go forward basis, as part of a future meet and confer
process. However, the participation level must be the same for all
employees within the Association. Additionally, the purpose and focus of
these changes should be toward long -term, trend type adjustments. Due to
IRS restrictions regarding "constructive receipt," the City will impose
restrictions against frequent spikes or drops that appear to be tailored
toward satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the RHS Part C contributions,
but only to the extent and within all the numeric parameters specified in the
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Employee Policy Manual. Section 11.21 of the Manual contains a schedule,
which specifies the amount of sick leave that can be "cashed out," based on
time of service. The manual also caps the number of hours that can be
"cashed out" at 800, and specifies that sick leave hours are "cashed out" on
a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash
purposes). Sick leave participation is a separate item from vacation /flex
leave participation, and thresholds must be separately identified by the
Association.
Part A contributions may be included in PERS compensation. Part B and
Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are credited
to each RHS Employee Account each pay period. Eligibility for Part B
contributions is set at five years of vested City employment. At that time,
the City will credit the first five years worth of Part B contributions into the
Employee Account (interest does not accrue during that period). Thereafter,
contributions are made bi- weekly. Part C deposits, if any, will be made at
the time of employment separation.
Each Employee has a right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is zero.
This right is triggered upon separation. If an employee leaves the City prior
to five years employment, only the Part A contributions and Part C leave
settlement contributions, if any, will be in the RHS Employee Account. Such
an employee will not be entitled to any Part B contributions. The exception
to this is a full -time employee, participating in the program, who leaves the
City due to industrial disability during the first five years of employment. In
such cases, the employee will receive exactly five years worth of Part B
contributions, using the employee's age and compensation at the time of
separation for calculation purposes. This amount will be deposited into the
employee's RHS account at the time of separation.
Distributions from RHS Employee Accounts are restricted to use for health
insurance and medical care expenses after separation, as defined by the
Internal Revenue Code Section 213(d) (as explained in IRS Publication
502), and specified in the Plan Document. In accordance with current IRS
regulations and practices, this generally includes premiums for medical
insurance, dental insurance, vision insurance, supplemental medical
insurance, long term care insurance, and miscellaneous medical expenses
not covered by insurance for the employee and his or her spouse and legal
dependents — again only as permitted by IRS Publication 502. Qualification
for dependency status will be determined by guidelines in IRC 152. If used
for these purposes, distributions from the RHS accounts will not be taxable.
Cash withdrawal for any other purpose is prohibited. Under recent IRS
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Revenue Ruling 2005 -24, any balance remaining in the Employee Account
after the death of the employee and his or her spouse and /or other
authorized dependents (if any) must be forfeited. That particular RHS
Employee Account will be closed, and any remaining funds will become
general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. The parties also
agree that, for retirees selecting a CalPERS medical plan, or any other plan
with a similar employer contribution requirement, the required City
contribution will be withdrawn from the retiree's RHS account.
b. For employees in Category 2, the program is the same as for those in
Category 1 with the following exception:
In addition to the new plan contributions listed above, current employees
who fully convert to the new plan will also receive a one -time City
contribution to their individual RHS accounts that equates to $100 per
month for every month they contributed to the previous "defined benefit"
plan, to a maximum of 15 years (180 months). This contribution will be
made only if the employee retires from the City and at the time of retirement.
No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the City
prior to implementation of the new program will only receive Part B
contributions back to January 1, 2006 when they reach five years total
service.
c. For employees in Category 3, the program is the same as for those in
Category 2, with the following exception:
For employees in this category, the City will make no Part B contributions
while the employees are still in the active work force. Instead, the City will
contribute $400 per month into each of their RHS accounts after they retire
from the City, to continue as long as the employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to the
City. The maximum benefit provided by the City after retirement is $4,800
per year, accruing at the rate of $400 per month. There is no cash out
option for these funds, and they may not be spent in advance of receipt.
Employees in this category will also receive an additional one -time City
contribution of $75 per month for every month they contributed to the
OVIR
previous plan prior to January 1, 2006, up to a maximum of 15 years (180
months). This contribution will be made to the RHS account at the time of
retirement, and only if the employee retires from the City. No interest will be
earned in the interim.
d. For employees (retirees) in Category 4, the structure is very similar to
the previous retiree medical program, except that there is no cost share
requirement, and the $400 City contribution after retirement can be used for
any IRS authorized purpose, not just City insurance premiums.
Effective July 1, 2006, a RHS account has been opened for each retiree in
this category, and the City will contribute $400 per month to each account
as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The contract
expense for program -wide administration by the vendor will be paid by the City.
However, specific vendor charges for individual account transactions that vary
according to the investment actions taken by each employee, such as fees or
commissions for trades, will be paid by each employee.
The City's Deferred Compensation Committee, or its successor committee, will
have the authority to determine investment options that will be available through
the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1 % of salary on which PERS retirement is based (Part
A); plus .25% of other compensation (Part B).
F. Tuition Reimbursement
NBEL members attending accredited community colleges, colleges, trade
schools or universities, or recognized professional organizations or agencies,
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, seminars, or professional development programs. Maximum tuition
reimbursement for employees shall be $1,400 per fiscal year.. Effective January
1, 2013, reimbursement will increase by $100, for a maximum annual benefit of
$1,500 per fiscal year. 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.
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All claims for tuition reimbursement require the approval of the Human
Resources Director or designee.
SECTION 5. Miscellaneous/Working Conditions
A. 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.
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination or
employment.
2. "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 the current Classification or any
Classification within the Series, subject to the following:
(a) Credit shall be given only for continuous service subsequent to the
most recent appointment to permanent status in the Classification
or Series: and
(b) Seniority shall include time spent on industrial leave, military leave,
and leave of absence without pay, but shall not include time spent
on any other authorized or unauthorized leave of absence.
3. "Classification" shall mean one or more full time positions identical or
similar in duties not including part -time, seasonal or temporary positions.
Classifications within a Series shall be ranked according to pay (lowest
ranking, lowest pay).
4. "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 and more supervisory responsibilities
for subordinates. The City Manager shall determine those classifications
following a meet and consult process which constitute a Series.
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5. "Bumping Rights ", "Bumping" or "Bump" shall mean (1) the right of an
employee, based upon seniority within a series to bump into a lower
ranking classification within the same series, (2) to be followed by, an
employee being permitted to bump into a classification within a different
series. The latter bumping shall be based upon unit wide seniority and
shall be limited to a classification in which the employee previously held
regular status.
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.
PROCEDURE
The General Services Department will select employees for layoff by straight
seniority department wide. This means department management has total
control of position elimination and personnel reassignment within ranks, but the
layoffs shall be on a straight forward "last hired -first fired" basis.
The layoff system for the Utilities Department shall operate the same department -
wide seniority as does the General Services Department, with the exception of
the Electrical and Telecommunications sections. Because of the highly
specialized skills and training of the personnel in these sections, these sections
shall be treated as unique and individual unto themselves.
In the event the City Manager determines to reduce the number of employees
within a classification, the following procedures are applicable:
1. Temporary and probationary employees within any classification shall, in
that order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of
seniority.
3. 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.
4. 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
following the Department Director's consideration of established
performance evaluations.
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REEMPLOYMENT
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 expire in 18 months. 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 within seven (7) days of written notice of
appointment. Notice shall be deemed given when personally delivered to the
employee or deposited in the U.S. Mail, first class postage prepaid, 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 Human Resources Director,
SEVERANCE
If an employee is laid off from their job with the City, for economic reasons, the
City will grant severance pay in an amount equal to one week of pay for every full
year of continuous employment service to the City of Newport Beach up to ten
(10) weeks of pay.
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.
B. Non - Discrimination
City and NBEL agree that there will be no discrimination by either party or by any
of their agents against any employee because of his /her membership or non-
membership in NBEL, or because of his /her race, creed, color, national origin,
religious belief, political affiliation, sex, sexual orientation or age.
C. Promotional Preference
Where no less than two (2) unit members achieve top three ranking on a certified
eligible list, selection to the position shall be made with preference given to the
unit members so qualified. The Human Resources Department shall be
responsible for insuring that a position vacancy announcement for all available
City positions be distributed in a manner that reasonably assures unit members
access to the announcements. The Human Resources Department shall oversee
all testing procedures.
M
Any employee who has achieved "regular status" may request assignment to any
lateral or lower classification, and that employee may be transferred into that
classification without competitive testing if both of the following conditions have
been satisfied:
1. The employee meets the minimum qualifications of the classification; and,
2. The Department Director approves of the transfer.
D. 9/80 Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently in place in the
Municipal Operations Department. The Building Maintenance, Parks
Maintenance, and Beach Maintenance crews will be placed on the 5/40 schedule
including the Memorial Day and Labor Day weekends, or any portion of time
between these Holidays at the discretion of the General Services Director. The
City reserves the right to amend the program as needed to mitigate any
operational problems which may arise due to budgetary cutbacks, personnel cuts
or shortages, service level complaints, or any other operational reason. Should
an operational problem involving service reductions or increases in cost
materialize, the Department Director will notify the Association and the
employees affected work group of the problem in writing, supported with cause.
The Association and /or the employees of the affected work group, will in turn
have up to ten (10) working days to respond and schedule a meeting with the
Department Director. The purpose of the meeting is to propose a solution to the
problem. The Department Director will consider the proposed solution and
respond, in writing, within five (5) working days. If the Department Director and
the work group disagree on the solution, the Association and /or employees of the
affected work group will have up to five (5) working days to appeal the
Department Director's decision to the City Manager, who will consider both sides
of the issue and resolve the dispute, in a written decision within ten (10) days
after the aforementioned meeting.
Effective the pay period beginning January 15, 2011, the 9/80 flex - schedule will
be modified as follows: employees will have the option of alternating Fridays off
only. Employees currently on a 9/80 schedule with alternating Mondays or any
other day off, will convert to Fridays off beginning in January 2011. To ensure
effective coverage, employees on the 9/80 schedule will be divided into groups A
or B, with equal numbers of staff as much as possible, including management
and supervisory staff, off on alternating Fridays. To ensure ongoing compliance
with Fair Labor Standards Act, and to maintain organizational efficiency,
deviations from established flex days, if legally permitted, will be considered on a
case -by -case basis.
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E. Labor Management Committee
Committees shall meet on an as needed basis; names of participating unit
members shall be announced to management no less than 5 work days before
the scheduled meeting; cancellation for cause shall be rendered by the canceling
party no less than 48 hours prior to the scheduled meeting; canceled meetings
shall be rescheduled to take place within 5 working days of the canceled
meeting; committees shall be departmental; they may be combined in the
interests of efficiency with other such committees; City participants shall include
appropriate department or division heads outside the unit; the purpose of the
committees shall be to resolve conflict and exchange information; a unit staff
person may attend meetings; meetings shall be scheduled to last no less than
one hour; grievances in process shall not be subject to resolution in meetings;
matters properly dealt with in negotiations may be discussed but no agreements
shall be effected on same in committee. Meetings shall be on work time.
F. Discipline - Notice of Intent
1. Employees who are to be the subject of substantial punitive discipline for
any misconduct or negligence shall be entitled to prior written notice of
intent to discipline at least seven (7) calendar days prior to the imposition
of the actual penalty. This written notice shall contain a description of the
event or conduct which justifies the imposition of discipline. The notice
shall also include the specific form of a discipline intended, and the
employee shall be offered the opportunity to a hearing before their
Department Director prior to the imposition of the penalty.
This procedure will only be applied in cases of substantial punitive
discipline. It shall be understood that a disciplinary penalty equal to an
unpaid suspension of three (3) days or greater shall be substantial. All
other discipline resulting in less than a three (3) day suspension will be
considered non - substantial and will not be subject to the aforementioned
procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to
discipline and who believe that the penalty is not justified shall have
access to the grievance process as established in the Employee - Employer
Resolution2001 -50.
G. Grievance Procedure
Step 1: A grievance may be filed by any employee on his /her own behalf, or
jointly by a group of employees, or by a Recognized Employee Organization.
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Within ten (10) calendar days of the event giving rise to a grievance, the grievant
shall present the grievance in writing to the immediate supervisor. Grievances
not presented within the time period shall be considered resolved.
The supervisor shall meet with the grievant to settle grievance and give a written
answer to the grievant within seven (7) calendar days from receipt of the
grievance by the supervisor. When the immediate supervisor is also the
department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's answer,
forward the grievance to the department head for consideration. Answer to the
grievance shall be made in writing by the department head, after conferring with
the grievant, within fourteen (14) calendar days from receipt of the grievance.
Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be made
by the grievant within ten (10) calendar days from the receipt of the department
heads answer, through the representative of his /her Recognized Employee
Organization who may request a meeting with the City Representative to resolve
the grievance. Following the meeting, answer shall be made by the City
Representative, in writing, to the representative within twenty -one (21) calendar
d ays.
Step 4: Mediation - If the grievance is not resolved after Step 3, as an alternative
to proceeding directly to Step 5, the grievance may be submitted to mediation. A
request for mediation may be presented in writing to the Human Resources
Director within seven (7) calendar days from the date a decision was rendered at
Step 3. As soon as practicable thereafter, or as otherwise agreed to by the
parties, a mediator shall hear the grievance. A request for mediation will
automatically suspend the normal processing of a grievance until the mediation
process is completed. The mediation process shall be optional, and any opinion
expressed by the mediator shall be informal and shall be considered advisory.
Step 5: Within 20 calendar days of receipt of a grievance denial at step three,
the grievant may file the grievance, in writing, with the Civil Service Board.
At the next regularly scheduled meeting of the Civil Service Board, the grievance
shall be heard, using Civil Service Board De Novo procedures. Within 20
calendar days of the hearing, the Civil Service Board shall issue its findings and
conclusions to the parties at interest.
Within 7 calendar days of the issuance of Civil Service Board findings and
conclusions, the City Manager shall affirm, modify or revoke the Board's
decision. The City Manager's decision shall be considered exhaustive of
administrative remedies.
31
Additionally, the City and NBEL agree to expand the grievance procedure as it
relates to performance evaluations and written reprimands, permitting them to be
appealed to the 5th step of the grievance procedure.
H. Probationary Period
Newly hired employees shall serve a twelve (12) month probationary period. The
probationary period for promoted employees shall be six (6) months.
Newly hired employees shall become eligible for their first step increase after
twelve (12) months. All other City rules regarding step increases shall remain
unchanged.
Failure of Probation
1. New Probation
An employee on new probation may be released at the sole discretion of
the City at any time without right of appeal or hearing, except as provided
in Subsection 3. below.
2. Promotional Probation
(a) An employee on promotional probation may be failed at any time
without right of appeal or hearing, except as provided in Subsection
3, below, and except that failing an employee on promotional
probation must not be arbitrary, capricious or unreasonable.
(b) An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of promotional
probation.
(c) When an employee fails his or her promotional probation, the
employee shall have the right to return to his or her former class
provided the employee was not in the previous class for the
purpose of training for a promotion to a higher class. When an
employee is returned to his or her former class, the employee shall
serve the remainder of any uncompleted probationary period in the
former class.
(d) If the employee's former class has been deleted or abolished, the
employee shall have the right to return to a class in his or her
former occupational series closest to, but no higher than, the salary
range of the class which the employee occupied immediately prior
32
to promotion and shall serve the remainder of any probationary
period not completed in the former class.
3. Probationary Release
An employee who alleges that his or her probationary release was based
on discrimination by the City, may submit a grievance within ten (10) days
after receipt of the Notice of Failure of Probation.
J. Accident Reporting
The City will require that all traffic collisions involving City vehicles shall be
reviewed by the traffic division supervisor of the Newport Beach Police
Department to prevent any unnecessary reports from being forwarded to the
DMV. Also, the vehicle accident review board will evaluate the supervisor's field
report prior to making its preventable /non - preventable determination.
K. Iniury Prevention Program (IPP)
Until such time as the Injury Prevention Program (IPP) is fully developed the
following understandings apply:
1. The City will indemnify and hold harmless from civil and criminal
prosecution NBEL members for any liability which might arise out of the
City's IPP (mandated by SB198). Once the program has been fully
developed and implemented, the IPP will come into full force and effect.
2. The City will take into consideration the adequacy of training prior to
issuing discipline or depreciated performance evaluations to employees
who have been determined to be in non - compliance to the City's IPP.
3. The City agrees to identify, at the beginning of each department's IPP the
individuals who are ultimately responsible for the administration of the
plan.
4. The City agrees to incorporate representatives of the NBEL on the IPP
safety committees in all departments where the NBEL has representation
obligations.
5. The City agrees to include representatives from the NBEL in a meet and
consult role, as part of the process which will be employed for the
incorporation of changes in the IPP.
33
L. Safety Shoes
The present policy and practices regarding the supply and maintenance of safety
shoes shall remain in place except for the following changes as they apply to the
accelerated wear provisions.
If the soles of the safety shoes wear out within a year, the employee should
present the shoes to his /her supervisor. If the supervisor agrees that the soles
are worn out, he will authorize the employee to purchase a new pair of shoes at
City expense. If the supervisor judges that the uppers are in good condition, he
will authorize the employee to have the shoes resoled at City expense.
M. Uniforms
It shall be understood by the NBEL and its members that employees who report
for work either "out of uniform" or in "dirty" or "otherwise substandard" uniforms
will be sent home without additional prior notice and without pay. Such incidents
shall further be documented and regularly repeated violations of the uniform
standards will subject the employee to progressive discipline up to and including
dismissal for negligence and /or misconduct.
Employees represented by the NBEL will be permitted to wear specified and
approved shorts as part of the City approved optional uniform. The shorts must
be dark blue in color, the inseam must be no less than 4 and 1/2 inches after
shrinkage. They must be worn in combination with the standard City uniform
shirt of the optional (golf style) City uniform shirt, and they must be worn with
either white or blue socks. The optional uniform shall be considered proper and
acceptable year round. Department Directors may make individual exceptions to
this optional uniform agreement through the establishment of Departmental
Policy in the interest of reasonable safety considerations.
N. Voluntary Training Program
The Department shall, when the need for additional or replacement individuals
possessing a commercial driver's license is anticipated, establish a voluntary
training program that will allow employees to qualify for the license.
O. In- Service Supervisory and Safety Training
The City will continue its program of providing supervisory and motivational
training for Supervisors and Crew Chiefs. The program, will if possible, be
expanded to include non - supervisory personnel wherever practical. The
equipment operator training program will continue on an as needed basis.
Course subject matter may include, but not limited to: interpersonal working
34
relationships, public service, performance evaluation techniques, employee
counseling and discipline, harassment avoidance, defensive driving, substance
abuse, skills and safety methods and procedures, and wellness.
P. Clean -Up Time
When necessary, each employee shall be permitted up to fifteen (15) minutes of
paid City time at the end of each work shift to perform work related job site and
personal clean -up and to put away tools and equipment. The amount of clean -up
time shall be limited to the actual needs of the employee.
Q. Rest Periods
Employees shall be allowed rest period of fifteen (15) minutes during each four
(4) consecutive hours of work.
Such rest periods shall be scheduled in accordance with the requirements of the
Department, but in no case shall rest periods be scheduled within one (1) hours
of the beginning of the ending of a work shift or lunch period. The City may
designate the location or locations at which rest periods may be taken.
Rest periods shall be considered hours worked and employees may be required
to perform duties, if necessary.
R. Service Awards
For the purposes of determining service awards, if an employee has been
employed by the City on more than one occasion, non - consecutive time will be
considered as part of total service. Prior to system implementation, an employee
is required to individually notify the awards committee of all of the service time.
S. Employee Handbook
There will be a consolidation of documents to be given to each employee. This
consolidation will be comprised of the Employee Policy Manual, related
Departmental Rules and Regulations; Employee /Employer Resolutions and a
copy of this Memorandum of Understanding. More information may be included.
T. Direct Deposit
All newly hired employees shall participate in the payroll direct deposit system.
U. Salary on Reclassification
35
The City will amend its Employee Policy Manual to provide for a minimum salary
increase of five (5 %) percent upon reclassification (not to exceed the maximum of
the new salary range).
V. Duration
The terms of this MOU are to remain in full force and effect from the first pay
period of fiscal year 2012 -13 through the last pay period of fiscal year 2014 -15.
Proposals for the succeeding MOU must be submitted on or before March 1,
2015 in accordance with Section 13, Timetable for Submission of Requests of the
Employer - Employee Relations Resolution. Upon adoption of a resolution
approving this MOU and the terms hereof by the City Council of the City of
Newport Beach, this MOU shall be in force and effect as of the first day of the first
pay period of fiscal year 2012 -13.
W. Separability
Should any part of this MOU or any provision herein contained be rendered or
declared invalid, by reason of any existing or subsequently enacted Legislation,
or by decree of a Court of competent jurisdiction, such invalidation of such part or
portion of this MOU shall not invalidate the remaining portion hereto, and same
shall remain in full force and effect; provided, however, that should provisions of
this MOU relating to any schedule adjustment be declared invalid, City agrees to
provide alternative benefits agreeable to NBEL, to employees, which will cause
such employees to receive the same amount of money as they would have
received had such provision not been declared invalid.
X Citywide Classification and Compensation Study
Concurrent with the adoption of this MOU, the City is undergoing a
comprehensive study of its classification and compensation structure. The City
agrees to meet with the Association during this study to discuss preliminary
findings or recommendations. The parties agree that during the term of this MOU
the City may implement the findings and recommendations of this study
regarding the compensation and classification of employees. Prior to adopting or
implementing final recommendations, the City will meet and confer with the
Association to discuss the possible impact on its members.
Signatures are on the next page.
IN
Executed this day of , 2013:
NEWPORT BEACH EMPLOYEES LEAGUE
By:
Chris Auger, President
By:
John Partridge, Vice President
By:
Craig Auger, Secretary
By:
Landin Miller, Treasurer
By:
Jamie Newton, OCEA Representative
By:
Charles Barfield, OCEA Representative
CITY OF NEWPORT BEACH
0
Keith Curry, Mayor
ATTEST:
Leilani Brown, City Clerk
IM7 M:
Aaron Harp, City Attorney 1 —7&113
C
I *A:I1 -3rra
CLASSIFICATIONS COVERED UNDER THE NEWPORT BEACH EMPLOYEES
LEAGUE BARGAINING UNIT
Auto Paint & Body Mechanic
Automotive Parts Buyer
Automotive Stock Clerk
Beach Maintenance Supervisor
Concrete Finisher
Concrete Maintenance Crew Chief
Concrete Supervisor
Electrician
Electrical Services Crew Chief
Electrical Services Supervisor
Equipment Mechanic I
Equipment Mechanic II
Equipment Mechanic, Senior
Equipment Maintenance Supervisor
Equipment Operator I
Equipment Operator II
Facilities Maintenance Technician
Facilities Maintenance Worker I
Facilities Maintenance Worker II
Facilities Maintenance Crew Chief
Facilities Maintenance Supervisor
Groundsworker I
Groundsworker II
Irrigation Specialist
Maintenance Worker I
Maintenance Worker II
Park Maintenance Crew Chief
Park Maintenance Supervisor
Parking Lot Supervisor
Parking Meter Serviceworker
Parking Meter Supervisor
Pest Control Technician
Refuse Supervisor
Refuse Worker I
Refuse Worker II
Senior Services Van Driver
Storm Drain /Street Sweeping Crew Chief
Storm Drain /Street Sweeping Supervisor
W.
Street Maintenance Crew Chief
Street Maintenance Supervisor
Traffic Painter
Transfer Station Crew Chief
Transfer Station Operator
Utilities Crew Chief
Utilities Equipment Specialist
Utilities SCADA Coordinator
Utilities SCADA Technician
Utilities Specialist
Utilities Specialist, Sr.
Utilities Supervisor
Utilities Video Technician
Water Production Operator
Water Production Supervisor
Water Quality Coordinator
C39
ATTACHMENT D
RESOLUTION NO. 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING THE KEY & MANAGEMENT COMPENSATION PLAN
WHEREAS, the City of Newport Beach has employees that are not represented
by an exclusively recognized collective bargaining unit and therefore are not covered by
a collective bargaining agreement; and
WHEREAS, the City Council of the City of Newport Beach has previously
established and recognized the unrepresented Key & Management Group, consisting of
certain management, professional and confidential classifications; and
WHEREAS, the City Council of the City of Newport Beach adopted the Key &
Management Compensation Plan ( "Plan ") to provide for salary and benefits for
employees in the Key & Management Group for the period July 1, 2010 through June
30, 2012; and
WHEREAS, the City Council of the City of Newport Beach desires to modify and
adopt a new Plan consistent with terms and conditions of employment of similarly
situated employees in other recognized Miscellaneous bargaining units.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms of employment
of employees included in the Key & Management Group shall be provided in
accordance with the provisions of the attached Key & Management Compensation Plan
(Exhibit D).
Section 2. The term of the Plan will be for thirty -six (36) months, effective
retroactively to July 1, 2012, through June 30, 2015.
Adopted this day of 2013.
M
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EXHIRU D
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
INTRODUCTION
Consistent with applicable laws, the following represents the salary and benefit program
established by the City Council for Key and Management. The Key and Management
Compensation Plan shall in no manner be interpreted as a guaranteed or implied
contract between the City and any employee or group of employees.
The Key and Management Group are divided into five categories:
• Executive Management
• Administrative Management
• Administrative Management- Safety
• Division Head
• Confidential
Appendix A lists all classifications in each category.
COMPENSATION
A. Salary
All Key and Management employees (excluding City Manager, City Attorney, and
City Clerk) will receive the following cost of living increases:
Effective the pay period including January 1, 2013 salaries will be increased by
an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Eamers Index for the 12 month period
ending October 31, 2012 with a minimum 1.5% increase and a maximum 2.5%
increase.
Effective the pay period including January 1, 2014 salaries will be increased by
an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2013 with a minimum 1.5% increase and a maximum
2.25% increase.
Effective the pay period including January 1, 2015 salaries will be increased by
an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2014 with a minimum 1.5% increase and a maximum
2.0% increase.
1
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
`Executive Management salary ranges were recently adopted as part of the Fox
Lawson & Associates citywide Classification and Compensation Study. In order
to preserve ranges until Study conclusion, Executive Management will advance
equivalent to the COLA within the existing range.
B. Range Advancement
Advancement through the salary range varies depending on the Group to which
the employee is assigned:
Executive Management - No steps, movement at the discretion of the City
Manager.
Administrative Management - Five -step range with eligibility for merit step
increases on an annual basis.
Administrative Management - Safety- Five -step range with eligibility for merit step
increases on an annual basis.
Division Head - Five -step range with eligibility for merit step increases on an
annual basis.
Confidential - Eight -step range with eligibility for merit step increases on an
annual basis.
Salary steps are placed in five percent (5 %) increments within the range for
Administrative Management, Administrative Management- Safety, Division Head,
and Confidential groups.
The manner in which employees advance through the range may be modified at
a later date, subject to changes in the City's compensation structure as a result
of the Fox Lawson & Associates Classification and Compensation Study.
C. Performance Reviews and Anniversary Dates
All Key and Management employees hired prior to 12/31/01 will have a
December 1, or first full pay period in December, anniversary date. Key and
Management employees hired after December 2001 will have an anniversary
date based upon hire date and hours of service. All Executive Management
performance evaluations will be reviewed by the City Manager prior to
implementation of any range advancement.
2
Q
E
F
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Bilingual Pay
Upon determination of the Department Director that an employee's ability to
speak, read and /or write in Spanish or other language as approved, contributes
to the Department, the employee shall be eligible to receive $150 per month in
bilingual pay. A certification process will be conducted which will confirm that the
employee is fluent at the street conversational level in speaking, reading and /or
writing Spanish or other approved language.
Non - Exempt Overtime and Compensatory Time Off
Employees in non - exempt positions are eligible to receive overtime or
compensatory time off. Overtime for non - exempt positions shall be paid at one -
and- one -half (1Y2) times the employee's regular rate of pay. Overtime work must
be approved by the employee's supervisor. Compensatory time off for non-
exempt positions shall accrue at the rate of one - and - one -half (1'/) times for
every overtime hour.worked. Employees may accumulate up to eighty (80) hours
of Compensatory Time. Any hours in excess of eighty (80) will be paid off,
Accumulation in excess of the eighty (80) hours may be approved at the
discretion of the Department Director.
Jury Duty
An Employee called to serve as a juror shall notify his /her Supervisor on the first
Workday following receipt of the summons. Any Employee of the City legally
required to serve as a juror shall be entitled to leave with pay and all benefits for
a period of up to sixty (60) days so long as his /her presence is legally required.
I FAVFS
A. Holidays
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
Observed
July 4
First Monday in September
November 11
Fourth Thursday in November
Friday following Thanksgiving
December 24 - last half of working day
December 25
December 31- last half of working day
k1
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
New Year's Day January 1
Martin Luther King Birthday Third Monday in January
Washington's Birthday Third Monday in February
Memorial Day Last Monday in May
Floating Holiday (1) July 15`
For 2012 only, the % day Christmas Eve and % day New Years Eve holidays will
be considered full day holidays.
Effective the pay period including January 1, 2013, holidays will be paid based on
the employee's regular work day schedule. For example, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is
regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours
of holiday pay. However, if an employee is on a 9180 schedule and the holiday is
observed on a day that the employee is regularly scheduled to work 8 hours, the
employee is entitled to receive 8 hours of holiday pay. Employees will receive 8
hours of holiday pay annually for the Floating Holiday.
Holidays listed above (except the floating holiday) occurring on a Saturday shall
be observed the preceding Friday. Holidays occurring on a Sunday shall be
observed on the following Monday. (Half day holidays shall be observed prior to
the observed holiday).
Flex Leave
Regular full -time employees in the Administrative Management, Administrative
Management- Safety, Division Head and Confidential categories enrolled in the
flex leave program will earn leave according to the following schedule:
Years of Continuous
Hrs Accrued
Annual
Maximum
Service
per PaY Period
D�
Allowable
Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.70
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
Effective the pay period including January 1, 2013, employees shall accrue Flex
leave at the following rates (superseding the rates listed above):
51
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Maximum
Years of Continuous Hrs Accrued Annual Allowable
Service per Pay Period hours Balance (hours)
1 but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
Spillover: Employees hired prior to July 1, 1996 shall be paid for earned flex
leave in excess of the employee's maximum accrual rate (spillover) provided that
they utilized at least 80 hours flex leave the previous calendar year Employees
with 16 or more years of continuous service are required to use 120 hours of flex
leave the previous calendar year.
Regular full -time employees in the Executive Management category will earn flex
leave according to the following schedule:
Effective the pay period including January 1, 2013, employees shall accrue Flex
leave at the following rates (superseding the rates listed above):
Maximum
Years of Continuous
Hrs Accrued
Annual
Allowable
Service
per Pay Period
hours
Balance (hours)
1 but less than 15
8.31
216.06
648
15 and over
9.23
239.98
720
Effective the pay period including January 1, 2013, employees shall accrue Flex
leave at the following rates (superseding the rates listed above):
During the first six months of full -time employment, new regular employees shall
not accrue paid leave. At the completion of six months of employment six
months of accrued leave will be placed in the employee's account.
Note: If an employee becomes sick in the first six months of employment, the
City will advance up to six (6) months of accrued flex leave time to be used for
the illness only. If the employee terminates employment prior to six (6) months,
E
Maximum
Years of Continuous
Hrs Accrued
Annual
Allowable
Service
Per Pay Period
hours
Balance (hours)
1 but less than 15
8.77
228
684.06
15 and over
9.69
252
755.82
During the first six months of full -time employment, new regular employees shall
not accrue paid leave. At the completion of six months of employment six
months of accrued leave will be placed in the employee's account.
Note: If an employee becomes sick in the first six months of employment, the
City will advance up to six (6) months of accrued flex leave time to be used for
the illness only. If the employee terminates employment prior to six (6) months,
E
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
the employee will repay the equivalent to the number of Flex leave days that
were advanced to the employee. Any Flex leave time advanced during the first
six (6) months of employment will be subtracted from the six (6) months of
accrual placed in the employees account upon completion of six months
employment.
1. Limit on Accumulation
Employees 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.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued, and in no
case, except for illness, may it be taken prior to the completion of an
employee's initial probationary period.
The Department Director shall approve all requests for flex leave, taking
into consideration the needs of the Department, and whenever possible,
the seniority and wishes of the employee.
C. Sick Leave
Key and Management employees employed by the City prior to initiation of the
flex leave program had separate sick and vacation leave banks. With the
initiation of the flex leave program, vacation leave was converted to flex leave on
an hour for hour basis and any sick leave hours remained in a bank to be used
as provided in Section 11.2 (Sick Leave) of the Employee Policy Manual.
D. Dependent Care
Employees may use up to 1/2 of Flex Leave accrued per year to provide care for
any member of the employee's immediate family in need of care due to illness or
injury.
E. Bereavement Leave
Bereavement leave shall be defined as "the necessary absence from duty by an
employee having a regular or probationary appointment because of a death or
terminal illness in his /her immediate family." For the purposes of this section,
immediate family shall mean father, mother (including step), brother, sister,
spouse /domestic partner, child, and grandparents, or the employee's
R
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
spouses /domestic partner's father, mother, brother, sister, child and
grandparents. Employees shall be entitled to 40 hours of bereavement leave per
incident per year.
F. Administrative Leave
All overtime, either paid or compensatory time off, will be eliminated for FLSA
exempt Management personnel. In its place, Administrative Leave will be
granted, for a minimum of 8 hours and a maximum of 80 hours, to be determined
by the Department Director with the concurrence of the City Manager, based
upon the number of overtime hours normally worked by the individual exempt
employee.
G. Leave Sellback
Twice annually, employees shall have the option of selling back, on an hour for
hour basis, accrued flex or vacation leave. In no event shall the flex or vacation
leave balance be reduced below one hundred and sixty (160) hours. Hours sold
back will be subject to the Retiree Health Savings Plan Part C contributions, per
Section 2 (a), Retiree Medical Benefits. For the term of this Compensation Plan
the Part C contributions for Flex/Vacation will be at 30 %.
BENEFITS
A. Insurance
1. Medical and Dental Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to
the contribution amounts listed below, the City shall contribute the
minimum CalPERS participating employer's contribution towards medical
insurance for employees enrolled in a CaIPERS medical plan, per
Government Code Section 22892.
Effective the first pay issue in January 2093, the City's contribution
towards the Cafeteria Plan will increase to $9,349 (plus the minimum
CaIPERS participating employers contribution).
Effective the first pay issue in January 2094, the City's contribution
towards the Cafeteria Plan will increase to $9,449 (plus the minimum
CaIPERS participating employer's contribution).
7
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Effective the first pay issue in January 2015, the City's contribution
towards the Cafeteria Plan will increase to $1,549 (plus the minimum
Ca /PERS participating employer's contribution).
Employees shall have the option of allocating Cafeteria Plan contributions
towards the City's existing medical, dental and vision insurance /programs.
Unused Cafeteria Plan funds shall be payable to the employee as taxable
cash back. Employees shall be allowed to change coverages in
accordance with plan rules and during regular open enrollment periods.
Key and Management employees who do not want to enroll in any medical
plan offered by the City must provide evidence of group medical insurance
coverage, and execute an opt -out agreement releasing the City from any
responsibility or liability to provide medical insurance coverage, on an
annual basis. The maximum cafeteria allowance provided to employees
who execute an opt -out agreement is $1,249 per month effective January
2013. Employees hired after adoption of this 2012 -2015 Compensation
Plan, and who execute an opt -out agreement, will receive a maximum
cafeteria allowance of $600 per month.
2. Vision Insurance
Employees may purchase vision insurance upon hire and during benefits
open enrollment.
3. Healthcare Reform
Certain State and Federal laws, programs and regulations, including the
Affordable Care Act, may impact future medical plan offerings. In the
event reform measures alter healthcare coverage options, cost, or other
elements of healthcare services with the City's Miscellaneous bargaining
units, cafeteria and /or healthcare benefits for employees in the Key and
Management Group will be similarly provided.
4. Disability Insurance
The City shall provide disability insurance with the following provisions:
E:7
IN
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Weekly Benefit
Maximum Monthly Benefit
Minimum Benefit
Waiting Period
66.67% gross weekly wages
$10,000
$15 (STD)f$100 (LTD)
30 Calendar Days (STD)
180 Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves prior to
receiving benefits under the disability insurance program. Employees may
not supplement the disability benefit with paid leave once the waiting
period has been exhausted.
Employees are responsible for the payment of the disability insurance cost
in the amount of one (1 %) percent of base salary.
Additional Benefits
1. IRS Section 125 Flexible Spending Account
The City provides a qualified Section 125 Flexible Spending Account
which authorizes an employee to reduce taxable income for payment of
allowable expenses such as child care and medical expenses.
2. Life Insurance
The City shall provide life insurance for all regular full -time employees in
$1,000 increments based on annual salary up to $50,000.
3. Employee Assistance Program
Employees are eligible to receive EAP benefits, which provide confidential
counseling and education on work and life issues, subject to provider
guidelines.
Retirement Benefits
1. PERS Retirement Formula
The City contracts with California Public Employees Retirement System
(PERS) to provide retirement benefits for its employees. Pursuant to prior
agreements and state mandated reform, the City has implemented first,
second and third tier retirement benefits:
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Tier 1: For employees hired by the City on or before November 23, 2012,
the retirement formula shall be 2.5% @ 55 calculated on the basis of the
best/single highest year.
Tier 2: For employees first hired by the City between November 24, 2012
and December 31, 2012, or hired on or after January 1, 2013 and are
current members of the retirement system, as defined in Public
Employees Pension Reform Act, the retirement formula shall be 2% @ 60
calculated on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1, 2013,
and who do not meet the Tier 2 criteria, the retirement formula shall be 2%
@ 62 calculated on the average 36 highest month's salary,
The City's contract with PERS also provides the 4th Level 1959 Survivor
Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit,
Military Service Credit, 2% Cost of Living Adjustment and the pre -
retirement option settlement 2 death benefit (Section 21548).
2. Employee Contributions
Key and Management employees will contribute additional amounts
toward the PERS retirement benefit, to the extent permissible by law. By
June 2015 Key and Management employees in each Tier will contribute
12.35% of pensionable pay toward the retirement benefit, representing a
nearly 50% share in the total cost.
Employee retirement contributions that are in addition to the normal PERS
Member Contribution shall be calculated on base pay, special pays, and
other pays normally reported as "PERSable" compensation, and will be
made on a pre -tax basis through payroll deduction, to the extent allowable
by the government tax code. It is recognized that these payments will not
be reported to PERS as contributions toward either the member or
employer rate and fall outside the scope of "cost- sharing ", as provided
under GC Section 20516(o.
Tier 1 Employees: Effective upon City Council approval of the
Compensation Plan :, 1) Employees will continue to contribute 5.58%
toward the Member Contribution and 2.42% toward the Employer
Contribution for a total of 8 %, as provided in the prior Compensation Plan,
and 2) the City will eliminate reporting the value of the 2.42% Employer
Paid Member Contribution (EPMC) as special compensation.
10
City of Newport Beach
KEY AND MAINAGENIEINT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Effective the pay period including June 30, 2013, Tier 1 employees shall
contribute an additional 1.45% of pensionable pay toward retirement costs
pursuant to Government Code Section 20516 (t), for a total of 9.45 %.
Effective the pay period including June 30, 2014, Tier 1 employees shall
contribute an additional 1.45% of pensionable pay toward retirement costs
for a total of 10.90 %; and effective the pay period including June 30, 2015,
Tier 1 employees shall contribute an additional 1.45% of pensionable pay
toward retirement costs, for a total employee contribution of 12.35 %.
Tier 2 Employees: Upon City Council approval of the Compensation Plan,
employees will continue to contribute the full 7.0% statutory PERS
Member Contribution. Effective the pay period including June 30, 2013
Tier 2 employees shall contribute an additional 2.45% of pensionable pay
toward retirement costs pursuant to Government Code Section 20516(1),
for a total of 9.45 %. Effective the pay period including June 30, 2014, Tier
2 employees shall contribute an additional 1.45% of pensionable pay
toward retirement costs for a total of 10.90 %; and effective the pay period
including June 30, 2015, Tier 2 employees shall contribute an additional
1.45% of pensionable pay toward retirement costs, for a total employee
contribution of 12.35 %.
Tier 3 Employees: The minimum statutory employee contribution for
employees in Tier 3 is subject to the provisions of the Public Employees
Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal
cost ". For FYI 2-13, the employee rate is 6.25% and is subject to change
based on annual PERS actuarial valuations.
Effective the pay period including June 30, 2013, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 3.20% of base pay toward
retirement pursuant to Government Code Section 20516(f), for a total of
9.45 %. If the FY13 -14 member contribution rate for employees in Tier 3 is
greater or less than 6.25 %, as determined by PERS valuation, the
additional contribution made by the employee under 20516(f) will be
increased or decreased accordingly, such that the total contribution equals
9.45 %.
Effective the pay period including June 30, 2014, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 4.65% of pensionable pay toward
retirement. If the FY14 -15 member contribution rate for employees in Tier
3 is greater or less than 6.25 %, as determined by PERS valuation, the
11
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
additional contribution made by the employee under 20516(1) will be
increased or decreased accordingly, such that the total contribution equals
10.9 %.
Effective the pay period including June 30, 2015, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 6.10% of pensionable pay toward
retirement. If the FYI 5-16 member contribution rate for employees in Tier
3 is greater or less than 6.25 %, as determined by PERS valuation, the
additional contribution made by the employee under 20516(1) will be
increased or decreased accordingly, such that the total contribution equals
12.35 %,
3. LIUNA Supplemental Pension
The City shall contribute, on behalf of each Key and Management
employee, one and one half percent (1.5 %) of base salary into the LIUNA
Supplemental Pension Fund. The City's sole obligation is to forward the
agreed upon amount to the fund. The City is not responsible for, nor does
it make any representation regarding, the payment of benefits to unit
members.
Effective January 1, 2007, the City increased the base salary of all Key &
Management employees by 1.5 %, and then deducted that same amount
as a mandatory employee contribution. For tax purposes, the
contributions, although designated employee contributions, are being paid
by the employer in lieu of contributions by the employee. The contributions
are deemed "picked -up" and treated as employer contributions, thereby
excluding the employee's gross income until distributed. Employees
cannot opt out of the "pick -up," or receive the contributed amounts directly
instead of having them paid to the plan. Participation at the same level
will continue to be mandatory for members of the Key & Management
Group. In accordance with correspondence received from a legal expert
retained by the City, this amount will not be taxable, except for Medicare.
Minor changes to other compensation related items that are calculated
from base salary will also result from this administrative change.
Key & Management employees who leave City employment prior to
vesting in the LIUNA pension plan will have no right to the return of
amounts contributed, or other recourse against the City concerning
LIUNA.
12
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
As of date of adoption of this Compensation Plan, pursuant to
Government Code 7518.22(c) under the California Public Employees
Pension Reform Act of 2012, effective January 1, 2013, newly hired
employees may be ineligible to participate in the LIUNA Supplemental
Pension Fund.
D. Retiree Medical Benefits
1. Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit' retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one
of four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006, was less
than 50 (46 for public safety employees).
C. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City prior
to January 1, 2006, and were participating in the previous retiree
medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan
(formerly the Medical Expense Reimbursement Program - WERP ").
a. For employees in Category 1 the program is structured as follows:
Each employee will have an individual RHS account (Employee
Account). This account will accumulate contributions to be used for
health care expense after separation. All contributions to the plan
13
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
are either mandatory employee contributions or City paid employer
contributions, so they are not taxable to employees at the time of
deposit. Earnings from investment of funds in the account are not
taxable when posted to the account. Benefit payments are not
taxable when withdrawn, because the plan requires that all
distributions be spent for specified health care purposes.
Contributions will be in three parts:
Part A contributions (mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $2.50 per month for
each year of service plus year of aye (updated every January 15t
based on status as of December 315 of the prior year).
Part C contributions (leave settlement as determined by Key and
Management employees):
Key and Management employees will determine the level of
contribution, subject to the following constraints. All employees
within Key and Management must participate at the same level.
The participation level should be specified as a percentage of the
leave balance on hand in each employee's leave bank at the time
of separation from the City.
For example, if Key and Management employees determine to
specify 50% of the leave balance as the participation level, then
each member leaving the City or cashing out leave at any other
time, would have the cash equivalent of 50% of the amount that is
cashed out added to the RHS, on a pre -tax basis. The remaining
50% would be paid in cash as taxable income. Individual
employees would not have the option to deviate from this breakout.
Sick leave balances may also be included in the RHS Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Sick leave
participation is a separate item from vacation /flex leave
participation, and thresholds must be separately identified by the
Key and Management group.
Key and Management employees have agreed to Part C
contributions at the level of 0% of sick leave and 30% of Flex
14
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
leave. This amount may be changed, on a go forward basis, as
determined among the Key and Management group.
Nothing in this section restricts taking leave for time off purposes.
Part A contributions may be included in PERS compensation. Part
B and Part C contributions will not be included in PERS
compensation.
Part A contributions begin upon enrollment in the program and are
credited to each RHS Employee Account each pay period.
Eligibility for Part B contributions is set at five years of vested City
employment. At that time, the City will credit the first five years
worth of Part B contributions into the Employee Account (interest
does not accrue during that period). Thereafter, contributions are
made bi- weekly. Part C deposits, if any, will be made at the time
of employment separation.
Each Employee has a right to reimbursement of medical expenses
(as defined below) from the Plan until the Employee Account
balance is zero. This right is triggered upon separation. If an
employee leaves the City prior to five years employment, only the
Part A contributions and Part C leave settlement contributions, if
any, will be in the RHS Employee Account. Such an employee will
not be entitled to any Part B contributions.
Distributions from RHS Employee Accounts are restricted to use
for health insurance and medical care expenses after separation,
as defined by the Internal Revenue Code Section 213(d) (as
explained in IRS Publication 502), and specified in the Plan
Document. In accordance with current IRS regulations and
practices, this generally includes premiums for medical insurance,
dental insurance, vision insurance, supplemental medical
insurance, long term care insurance, and miscellaneous medical
expenses not covered by insurance for the employee and his or
her spouse and legal dependents — again only as permitted by IRS
Publication 502. Qualification for dependency status will be
determined by guidelines in IRC 152. If used for these purposes,
distributions from the RHS accounts will not be taxable. Cash
withdrawal for any other purpose is prohibited. Under IRS
Revenue Ruling 2005 -24, any balance remaining in the Employee
Account after the death of the employee and his or her spouse
and /or other authorized dependents (if any) must be forfeited.
15
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
That particular RHS Employee Account will be closed, and any
remaining funds will become general assets of the plan.
The City's Part B contributions during active employment
constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. In
addition, retirees selecting a CalPERS medical plan or any other
plan with a similar employer contribution requirement, the required
City contribution will be withdrawn from the retiree's RHS account.
b. For employees in Category 2 the program is the same as for those
in Category 1 with the following exception:
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a
one -time City contribution to their individual RHS accounts that
equates to $100 per month for every month they contributed to the
previous "defined benefit" plan, to a maximum of 15 years (180
months). This contribution will be made only if the employee retires
from the City and at the time of retirement. No interest will be
earned in the interim.
Employees in Category 2 who had less than five years service with
the City prior to implementation of the new program will only
receive Part B contributions back to January 1, 2006 when they
reach five years total service.
c. For employees in Category 3, the program is the same as for those
in Category 2, with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active work force.
Instead, the City will contribute $400 per month into each of their
RHS accounts after they retire from the City, to continue as long as
the employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for
the duration of their employment to partially offset part of this
expense to the City. The maximum benefit provided by the City
after retirement is $4,800 per year, accruing at the rate of $400per
month. There is no cash out option for these funds, and they may
not be spent in advance of receipt.
16
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
Employees in this category will also receive an additional one -time
City contribution of $75 per month for every month they contributed
to the previous plan prior to January 1, 2006, up to a maximum of
15 years (180 months). This contribution will be made to the RHS
account at the time of retirement, and only if the employee retires
from the City. No interest will be earned in the interim.
d. For employees (retirees) in Category 4, the structure is very similar
to the previous retiree medical program, except that there is no cost
share requirement, and the $400 City contribution after retirement
can be used for any IRS authorized purpose not just City insurance
premiums.
Effective July 1, 2006, a RHS account has been opened for each
retiree in this category, and the City will contribute $400 per month
to each account as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be
paid by the City. However, specific vendor charges for individual
account transactions that vary according to the investment actions taken
by each employee, such as fees or commissions for trades, will be paid
by each employee.
The City's Deferred Compensation Committee, or its successor
committee, will have the authority to determine investment options that
will be available through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree
Medical Program shall be valued at 1% of salary on which PERS
retirement is based (Part A); plus .25% of other compensation (Part B).
E. Tuition Reimbursement
Key and Management employees attending accredited community colleges,
colleges, trade schools or universities, or recognized professional organizations or
agencies 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 coursework, seminars or professional development programs. Maximum
17
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
tuition reimbursement for employees shall be $1,400 per fiscal year. Effective
January 1, 2013, reimbursement will increase by $100, for a maximum annual
benefit of $1,500 per fiscal year. 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 Human
Resources Director or designee.
MISCELLANEOUS
A. Probationary Period
Newly hired employees shall serve a twelve -month probationary period. Any
employee who is promoted shall be required to successfully complete a six (6)
month probationary period in the new position. All Executive Management
positions serve at -will and can be released from employment at any time.
The City Manager, City Attorney and City Clerk serve at the pleasure of the City
Council.
B. Direct Deposit
All newly hired employees shall participate in the payroll direct deposit system.
C. Exempt and Non - exempt Status
All classifications in Key and Management are classified as exempt under the
FLSA, with the following exceptions:
Deputy City Clerk
Administrative Assistants to the Police Chief, Fire Chief, City Attorney,
Assistant City Manager, and Human Resources Director
Administrative Assistant - Confidential
Administrative Support Services Coordinator
Executive Assistant to the City Manager
Human Resources Specialist 1 /11
Human Resources Analyst
Budget Analyst
Paralegal
Public Information Specialist
Legal Assistant
In
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2012 through June 30, 2015
D. 9/80 Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently operating
successfully. Any new flex scheduling must be approved by the City Manager
prior to implementation.
Effective the pay period beginning January 15, 2011, the 9/80 flex - schedule will
be modified as follows: employees will have the option of alternating Fridays off
only. Employees currently on a 9/80 schedule with alternating Mondays or any
other day off, will convert to Fridays off beginning in January 2011. To ensure
effective coverage, employees on the 9/80 schedule will be divided into groups A
or B, with equal numbers of staff as much as possible, including management
and supervisory staff, off on alternating Fridays. To ensure ongoing compliance
with Fair Labor Standards Act, and to maintain organizational efficiency,
deviations from established flex days, if legally permitted, will be considered on a
case -by -case basis.
E. Employee Policy Manual
The City of Newport Beach's Employee Policy Manual shall govern all issues not
addressed in this document with respect to wages, hours and other terms and
conditions of employment.
Revised 1/16/2013
19
Appendix A
Key & Management Classifications
2012 -2015
Administrative Management Confidential
Assistant City Attorney
Deputy Director, Community Development
Deputy Director, Finance
Deputy Director, Municipal Operations
Deputy Director, PW /City Engineer
IT Manager
Police Support Services Administrator
Utilities General Manager
Administrative Management - Safety
Assistant Chief, Fire
Assistant Chief, Lifeguard Operations
Assistant Chief. Police
Division Heads
Accounting Manager
Administrative Manager
Assistant City Engineer
Assistant to the City Manager
Building Manager /CBO
Budget Manager
Chief Building Inspector
City Traffic Engineer
Civil Engineer, Principal
Civil Engineer, Principal — Plan Check
Code & Water Quality Enforcement Div. Mgr
Deputy City Attorney
Equipment Maintenance Superintendent
Field Maintenance Superintendent
Harbor Resources Manager
Human Resources /Risk Mgmt Administrator
Library Services Manager
Operations Support Superintendent
Park & Tree Superintendent
Planning Manager
Public Information Manager
PW Finance /Admin Manager
Recreation Manager
Recreation Superintendent
Refuse Superintendent
Revenue Manager
Senior Services Manager
Systems & Administrative Manager
Administrative Analyst
Administrative Assistant - Confidential
Administrative Assistant to Asst City Manager
Administrative Assistant to City Attorney
Administrative Assistant to Fire Chief
Administrative Assistant to HR Director
Administrative Assistant to Police Chief
Administrative Support Services Coordinator
Assistant City Clerk
Budget Analyst
Budget Analyst, Senior
Deputy City Clerk
EMS Manager
Executive Assistant to City Manager
Facilities Manager
Human Resources Analyst
Human Resources Analyst, Senior
Human Resources Specialist I /II
Human Resources Supervisor
Legal Assistant
Paralegal
Principal Planner
Public Information Specialist
Purchasing Agent
Executive Management
Assistant City Manager
City Attorney
City Clerk
City Manager
Community Development Director
Deputy City Manager/ Human Resources Director
Finance Director/Treasurer
Fire Chief
Library Services Director
Municipal Operations Director
Police Chief
Public Works Director
Recreation and Senior Services Director
Revised 1111113
ATTACHMENT E
RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NOS. 2010 -139 THROUGH 2010 -142
AND 2011 -13 TO MODIFY THE PAYING AND REPORTING OF THE VALUE
OF THE EMPLOYER PAID MEMBER CONTRIBUTION TO THE CALIFORNIA
PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) FOR
EMPLOYEES REPRESENTED BY THE CITY EMPLOYEES ASSOCIATION,
PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION,
EMPLOYEES LEAGUE, AND KEY AND MANAGEMENT (UNREPRESENTED)
AND PART -TIME EMPLOYEES (RESPECTIVELY)
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolutions Nos. 2010 -139 through 2010 -142 and 2011 -13, to pay and
report a portion of the value of the Employer Paid Member Contribution (EPMC)
to CalPERS for employees represented by the City Employees Association,
Professional and Technical Employees Association, Employees League and Key
& Management (unrepresented) and Part-time employees; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement; and
WHEREAS, the City Council of the City of Newport Beach and the City
Employees Association, Professional and Technical Employees Association,
Employees League, and Key & Management and Part-Time employee groups
have a written agreement which provides a portion of the normal member
contribution to be paid by the employer and reported as additional compensation;
and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all Miscellaneous employees
represented by the City Employees Association, Professional and Technical
Employees Association, Employees League, and Key & Management group and
Part-time employees.
Section 2. Effective the pay period following adoption of this
Resolution the benefit shall be modified to consist of paying 0% of the normal
contributions as EPMC (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Adopted this day of 2013.
ma
ATTEST:
City Clerk
Mayor of the City of Newport Beach