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HomeMy WebLinkAbout18 - Lifeguard Management Assoc MOU�aeWPORr CITY OF �9C,FOP�P COUNCIL STAFF REPORT Agenda Item No. 18 January 22, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949- 644 -3002, dkiff(a)newportbeachca.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:ll�a TITLE: Resolution 2013- 12 : Adopting a Memorandum of Understanding with the Lifeguard Management Association ABSTRACT: The Memorandum of Understanding (MOU) between the City and the Newport Beach Lifeguard Management Association (LMA) expired January 1, 2012. In recent months City and LMA representatives have been meeting and conferring in good faith on wages, benefits, and other terms and conditions of employment. On December 20, 2012, the City and LMA reached a Tentative Agreement on a successor MOU. City Council's adoption of the MOU is the last step in the meet and confer process, completing the agreements. Approve Resolution No. 2013 -12 adopting a Memorandum of Understanding with the Lifeguard Management Association (Attachment A) for the period January 1, 2012 through June 30, 2014. FUNDING REQUIREMENTS: See financial information in the body of the discussion text. Memorandum of Understanding with LMA January 22, 2013 Page 2 DISCUSSION: LMA Negotiations The Lifeguard Management Association represents 12 full -time staff who assist in managing lifeguard operations and supervising approximately 200 seasonal staff. In September 2012 City and Lifeguard Management Association representatives began meeting and conferring on a successor MOU. The parties met six (6) times and the tone of the discussions was cooperative and productive. 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), on December 20, 2012, the City and LMA reached a tentative agreement that includes the following provisions: o Contract Term. The term of the contract will be for two and one -half (2 %) years (retroactive to January 1, 2012 through June 30, 2014); a Cost -of- Living Adjustment (COLA). Employees will be eligible for a minimum 1.5% to a maximum 2.5% COLA January 1, 2013 and a minimum 1.5% to maximum 2.0% January 1, 2014, based on the Consumer Price Index (CPI) Los Angeles /Orange County Urban Wage Earners Index for the twelve month period ending October 31; Market Adjustment for Lifeguard Officer. Effective January 1, 2013, the Lifeguard Officer salary shall be adjusted 1% to 2% to move the pay closer to market median (preliminary survey results indicated Lifeguard Officer was below market), based on the results of a total compensation study; o Medical Insurance Contribution. The cafeteria benefit will be increased by $100 per month to $1,249 in January 2013, and an additional $100 per month in January 2014 to $1,349, for the purchase of medical, dental, vision insurance, deferred compensation, or taken as cash. Effective 2013, the maximum contribution for employees that "opt -out" of medical is $1,249 for current employees and $600 for employees hired after MOU adoption; Scholastic Incentive Pay. New hires will not be eligible for any Scholastic Achievement Pay if they have educational units only and not obtained a degree; o Reduction in Flex Leave Cap. Effective upon MOU adoption, the Flex leave accrual cap will be lowered from 78 times the employee's accrual rate, to 52 times. Once over 52 weeks, a member's leave "spills over" into pay (as it does now for the 78 -week process). Members would be compensated for the initial draw -down from 78 to 52 weeks; z Memorandum of Understanding with LMA January 22, 2013 Page 3 Assignment Pay. 1) The Boat Captain assignment pay will be "sunsetted" with the current incumbent; any future Boat Captain pay will be made only when the employee is assigned the duties. 2) The City will add a "Training" assignment pay of 7.5% for one Lifeguard Captain assigned the responsibility of administering Lifeguard Operations training program; ® Severance Pay. Under the terms of the MOU Severance Pay would be capped at 10 weeks (otherwise one week for every year worked in Newport Beach); © Night Standby Response and Lifeguard Officer Schedules. Language eliminated in MOU. The City and LMA are working collaboratively to revise policy in order to meet scheduling and operational needs. Prior agreements reached with LMA included full pick -up of the Member Contribution (9 %), elimination of the Employer Paid Member Contribution (EPMC), and agreement for a second tier 2 % @50 retirement benefit formula for new hires. With adoption of that plan in 2012, in conjunction with implementing the provisions of the Public Employees Pension Reform Act ( PEPRA), the City of Newport Beach now has three (3) tiers of retirement formulae for Lifeguard Management employees. The lower tier formulae will provide long -term cost savings as new employees get hired in under a lower benefit factor: Tier 1: 3 % @50 for PIERS covered employees hired on or before November 23, 2012; Tier 2: 2.0 % @50 for new PIERS covered employees hired on or after November 24, 2012 (or laterals from other PIERS agencies who meet certain requirements). This second tier was agreed upon in the last Meet & Confer process with LMA in 2011; Tier 3: 2.7 % @57 for new PERS covered employees hired after January 1, 2013 under PEPRA (mandated by AB 340). At the time of print of this agenda item the membership of LMA is in the process of ratifying the agreement by majority vote. 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. If the City Council approves adoption of the Memorandum of Understanding with the Lifeguard Management Association, Human Resources and Finance Department staff will work to implement the provisions as soon as practicable. Memorandum of Understanding with LIMA January 22, 2013 Page 4 Public Notice: Public notice was fulfilled with the posting of the agenda and report for this item. Fiscal Impact: The cost to provide cost -of- living and cafeteria adjustments for employees represented by the Lifeguard Management Association is estimated to be $114,450 for the term of the contract. ►�ILi 1iL' L ►i�t1>!: �9IZ I 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 ManagerlHR Director Attachment: Resolution Adopting a Memorandum of Understanding with the Lifeguard Management Association a 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 LIFEGUARD MANAGEMENT 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 Lifeguard Management Association for the period of July 1, 2009 through December 31, 2011; and WHEREAS, representatives from the City of Newport Beach and representatives from the Newport Beach Lifeguard Management 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 Lifeguard Management Association by adopting a 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 Lifeguard Management 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 30 months, commencing retroactively to January 1, 2012, and will remain in full force and effect through June 30, 2014. Adopted this day of 2013. ATTEST: City Clerk Mayor of the City of Newport Beach EXHIBIT [A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as WOU ") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY ") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA ") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES ") for the period of January 1, 2012 through June 30, 2014. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. 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. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 2012, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 2012 through June 30, 2014. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. 1 2 When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non - exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 2001 -50. C. Conclusiveness Except as provided for in this agreement, 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 relating primarily to matters within the scope of representation except as expressly provided for 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, which is not embodied in this MOU. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. z F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments 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 2.0% increase. B. Special Assignment Pay Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for theirjob classification. Effective upon MOU adoption, the Lifeguard Captain - Boat classification shall be "sunsetted" and the incumbent shall retain the classification and assignment pay until reassignment, promotion, or separation from employment. Subsequently, boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay. Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for 3 D maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. D. Uniform Allowance The City shall pay the entire cost of providing LMA members with each component of the required LMA uniforms. The required LMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City shall report the value of provided uniforms at $838 to PIERS in accordance with PIERS requirements. E. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. F. Scholastic Achievement Pav Unit members whose starting date was prior to the City Council adoption of this 2012 -2014 MOU are entitled to additional compensation contingent upon scholastic achievement ( "Scholastic Achievement Pay'). LMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's pay check for the pay period immediately after approval by the Fire Chief. It is the responsibility of the LMA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic achievement pay is contingent upon years of full -time service as a NBLMA member and number of units and /or degrees received by the employee. Qualifying units and /or degrees must be awarded by accredited community colleges, state colleges or universities. LMA members shall receive scholastic achievement pay in accordance with the following: El 9 G. H Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5 % 2 or more A.A. /A.S.* 3.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A. /B.S. 5.5% 4 M.A. /M.S. 6.5% * Effective concurrent with Council adoption of the 2012 -2014 MOU. Unit members hired on and after City Council adoption of this 2012 -2014 MOU shall be ineligible for any scholastic pay based upon having obtained units only. A "degree" shall be awarded by an institution accredited by the State of California, the United States Department of Education, the Council for Higher Education, or the Distance Education Training Council. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 112) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off in lieu of pay for night standby. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his /her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5 %) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief Ii 19 All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. L. Court Standby Pay NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. J. Lifeguard OfficerAdiustment Upon adoption of this 2012 -14 MOU, the City will conduct a total compensation survey of the Lifeguard Officer classification. If survey results indicate Lifeguard Officer total compensation is below market median of the survey agencies, the City will provide a minimum 1.0 %, to a maximum 2.0 %, base salary adjustment to the Lifeguard Officer salary range, in an effort to reach market parity. In no event will the adjustment be greater than 2.0 %. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Within 60 days of the signing of this Memorandum of Understanding all unit members still in the vacation /sick leave program may, collectively, elect to convert to the flex leave program. Conversion terms shall be the same as those utilized during the initial establishment of the flex leave program. 1. Basis for Accrual Permanent full -time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: 0 11 E 3 Years of continuous Accrual per Longevity Service pay period /hrs Pay Increase 1 but less than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but less than 20 7.69 1.0% 20 but less than 25 7.69 1.5% 25 and over 7.69 2.5% During the first six months of employment, new regular full -time 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. (Vote: 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 months, "the City will subtract the pay equivalent of the number of flex 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. 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. Effective the pay period following adoption of the 2012 -14 MOU, members shall be entitled to accrue flex leave up to a maximum of fifty -two (52) times the member's bi- weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi- weekly at the member's hourly rate of pay ( "spillover pay").. Members shall be eligible for flex leave spillover pay only if 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. 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. VA 12 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. B. Vacation 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 workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per Service Pay Period 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 and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. 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 1.1 13 C. wishes of the employee. Vacation leave may be granted on an hourly basis. Use of Flex and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full -time personnel may be limited to a total of forty (40) hours usage of vacation /flex leave. Additional vacation /flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation /flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations /flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. Sick Leave 1. Basis for Accrual /Full -time Employees Full -time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: Normal Work Week 40 hours 0- - 1 year 4 hours per month 1 -2 years 5 hours per month 2 -3 years 6 hours per month 3 -4 years 7 hours per month 4+ years 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 14 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his /her initial probation period is eligible to use his /her accumulated sick leave provided that if for any reason his /her City employment is terminated prior to the completion of such probationary period, his /her final pay check shall be reduced by the value of the sick leave he /she has taken. After completion of the initial six (6) months probation period, entry- level employees shall not have used sick leave deducted from their final pay check if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. 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.A 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 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six 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. E. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one -half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. 10 15 For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis). F. Holiday Time 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 Holidays, such 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 July 4 Labor Day 1st Monday in September Veteran's Day November 11 Thanksgiving Day 4th Thurs. in November Friday following Thanksgiving Christmas Eve Last 1/2 of working day Christmas December 25 New Year's Eve Last 1/2 of working day New Year's Day January 1 Martin Luther King Day 3'd Monday in January Washington's Birthday 3rd Monday in February Memorial Day Last Monday in May Floating Holiday (1) For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. 1. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex 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. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 11 E 4. In July, 2003 all employees were provided a one -time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi- weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Employees hired after July 2003 will make this election at the time of hire. This holiday compensation shall be reported to PIERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: 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, mother, brother, sister, spouse /domestic partner, child; or grandparents and the employee's spouse's /domestic partner's father, mother, brother, sister, and child. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his /her initial probationary period who takes leave under this section who for any reason terminates his /her employment prior to the completion of such probationary period shall have his /her final pay check reduced by the value of the leave taken. H. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his /her estate shall be paid for a percentage of the employee's accrued but unused Sick Leave computed as follows: 12 17 YEARS OF SERVICE: LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE PERCENT OF UNUSED SICK LEAVE PAID FOR: NONE 25% 37.5% 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). Leave Pay -Off Payment for accrued leave will be at 100% of the base hourly rate. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Medical /Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical /Dental Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. 13 M Any 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 be $1,249 (plus the minimum Ca1PERS participating employer's contribution). Effective the first pay issue in January 2014, the City's contribution towards the Cafeteria Plan will increase to $1,349 (plus the minimum CaIPERS participating employer's contribution). LMA 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 current employees who execute an opt -out agreement is $1,249 per month effective January 2013. Employees hired after adoption of this 2012 -2014 MOU, and who execute an opt -out agreement, will receive a maximum cafeteria allowance of $600 per month. 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. 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. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of 14 m C. E 91 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: 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. 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 retires 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. 15 9C D. The Retirement Benefit 1. Retirement Benefit 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 3 % @50 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 the Public Employees Pension Reform Act, the retirement formula shall be 2 % @50 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 Tier 2 criteria, the retirement formula shall be 2.7% 57 calculated on the average 36 highest month's salary. The City's contract with PERS also provides for b. The military buy -back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. C. The Level 4 1959 Survivors Benefits. d. The pre - retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Tier 1 and 2 Employees: Unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of CalPERS reportable earnings. This payment will be made on a pre -tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation eamable" under Government Code section 20636. 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 (PEPRA) and equals 50% of the "total normal cost" 16 21 as determined by PERS. For FY12 -13, the employee rate is 11.25% and is subject to change based on annual PERS actuarial valuations. 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. E. Retiree Health Benefits Program 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). G. 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 17 22 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 1st 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 contribution, at the level of zero percent (0 %). This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association except that Safety members and Non - safety members within an Association may have different levels. 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. U-1 23 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 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, 19 24 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 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. 25 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 $4,800.00 per year, accruing at the rate of $400.00 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). 21 91 F. Tuition Reimbursement NBLMA members attending accredited community colleges, colleges or universities may apply for reimbursement of one hundred percent (100 %) of the actual cost of tuition, books, fees or other student expenses for approved job — related courses. 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. LMA members attending pre- approved, directly job - related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for employees shall be $1,500.00 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS 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. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non—disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: 22 27 Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. C. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classifications) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights ", 'Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; C. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department 23 ME Director within seven (7) working days after notice of layoff of his /her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay —off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re— Employment Permanent and probationary employees who are laid off shall be placed on a Department re —employment list in reverse order of layoff. The re- employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re —employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re —employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay —off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay 24 9 B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each unit employee for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Employee Policy Manual The City and LMA have agreed on implementation of the City's revised Employee Policy Manual. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. H. Part-Time Conversion Part-time Lifeguard IV employees converted to full -time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Signatures are on the next page. 25 HE Executed this day of , 2013: NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION m Boyd Mickley, President m Brian O'Rourke, Vice President, CITY OF NEWPORT BEACH m Keith Curry, Mayor ATTEST: BY: Leilani Brown, City Clerk APPROVED AS TO FORM: z U 4 — Aaron Harp, City Attorney 31 EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications Lifeguard Officer Lifeguard Captain Lifeguard Captain - Boat Lifeguard Battalion Chief 27 32