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Home My WebLink About0 - Closed Session - Letter of UnderstandingLetter of Understanding Between the City of Newport Beach and the Newport Beach Employees League Pertaining to the Potential Outsourcing of Refuse ServiceslFunction September 9, 2013 v The existing Memorandum of Understanding between the City of Newport Beach and the Newport Beach Employees League is in effect from July 1, 2012 through June 30, 2015. Within the MOU is contained a reference to the City retaining the sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. However, in conformance with current law, the City agreed to Meet and Confer with Association to discuss the impacts of such a decision, if for reasons of efficiency /cost savings, it decides to move forward with outsourcing. Further, this obligation is one that affords Association the opportunity to discuss how City will transition employment for those employees currently occupying City positions and providing high quality service to the community in the event that the City elects to contract out refuse services. This letter is the mutual agreement regarding the topic of outsourcing Refuse Services between the City and the NBEL as of September 9, 2013. Whereas the City of Newport Beach ( "City ") and the Newport Beach Employees League ( "The League ") have met and conferred in good faith recently regarding the impacts of the City's desire to outsource the City's Refuse Division. In the event the City decides to move forward and contract out said work, the parties agree to following terms and conditions: 1. The League will commit to the City a willingness to continue to provide their top -rated level of customer service until final implementation of the proposed new refuse contract. 2. The League will engage positively in the process with the selected contractor and City staff to ensure that the community continues to be satisfied with the service provided with the least amount of disruption to all parties and the public. 3. The League will commit to the City a willingness to encourage, assist and ensure that employees who may be impacted by outsourcing will apply for every career opportunity /recruitment opened, if qualified, that is provided by the City. 4. The League will work cooperatively with the City to ensure that employees seek all training opportunities that may arise and possibly suggest, through a Labor - Management subcommittee, some training that would assist employees prepare for additional employment opportunities within the City. 5. The League will identify and encourage members to utilize City resources that will allow them to continue to remain a part of the Newport Beach family /workforce. 6. The League will jointly establish with the City several future targeted meeting dates to evaluate progress toward a successful transition for affected Refuse Division employees. During the City's tentative transition plan from approximately September 2013 through November 2014: 1. The City will open recruitments for five (5) future positions that current refuse workers will be encouraged to apply for. If a current refuse worker is promoted /assigned into one of the positions, that individual will be given the appropriate position rate of pay, even though their work assignment will remain in refuse during the transition period. Placement in these positions will not be unreasonably withheld from current refuse workers competing for these positions. 2. The City agrees to also open three (3) Parks Division positions for which current refuse workers are encouraged to apply. This is based upon that fact that with the Sunset Ridge and Marina Park and other future projects, workload will necessitate additional qualified staff. Each current refuse worker who is promoted /assigned into one of the positions will be given the appropriate position rate of pay, even though their work assignment will remain in refuse during the transition. Placement in these positions will not be unreasonably withheld from current refuse workers competing for these positions. These positions may be considered limited term of two (2) years from July 1, 2014 through June 30, 2016. This is subject to review of the needs of the City /budget at the end of the period. Any employee who is displaced should these positions be eliminated with have the right to three (3) years of re- employment rights to the City. This is an additional 18 months beyond what is granted in the event of a layoff per the current MOU. 3. The City will continue to provide every current refuse worker employment within the Refuse Division through approximately July 1, 2014. The City will maintain 5- 8 current refuse workers to assist in the transition to the refuse contractor until approximately December 31, 2014. The City and The League agree to meet and discuss the particulars of this transition as details of the contract become finalized. 4, At the time in which the City determines the entire crew is no longer needed to perform their refuse duties (approximately July 1, 2014) and at the time in which the City determines that the transition phase is complete (approximately December 31, 2014), all current employees will be offered the following three (3) options for their individual consideration if they have not previously moved to other employment within the City: 2 a. Voluntary separation from the City, with no incentive provided from the City. Any refuse employee selecting this option will be provided with three (3) years of re- employment rights to the City. This is an additional 18 months beyond what is granted in the event of a layoff per the current MOU in effect. b. Voluntary separation from the City with a flat dollar monetary compensation package similar to that offered employees through the Voluntary Separation Incentive Program (VSIP) in the spring of 2013. This included a 6 month cash incentive of $7500 to be utilized for payment of medical insurance premiums, regardless of the base pay of the employee that determined the monetary compensation amount. c. Any impacted employee who has not separated from City employment or been placed in a City position pursuant to the process described above by November 2014, shall be placed in a Y -rated City position for a period of not to exceed 18 months. the 18 month period, employee shall remain continuously employed by the City and not involuntarily removed from that position except for reasonable cause. City policies and practices with regard to discipline, workers' compensation, leaves and any other provision outlined in the current MOU or other documents will remain in full force and effect. Should it become necessary to address individual issues, the City and League agree to discuss these in a collaborative and respectful manner as has been done in the past. Any employee who is displaced at the 18 month mark, should these positions be eliminated, will be granted three (3) years of re- employment rights. This is an additional 18 months beyond what is granted in the event of a layoff per the current MOU. This agreement shall not be precedent setting for any purpose and shall not be enforceable if and when the City encounters a catastrophic fiscal emergency. A "catastrophic fiscal emergency" shall be defined as a decline in the City's fiscal year general fund revenue of greater than five percent (5 %), using fiscal year 2012 -13 as a baseline. 4, 'yi A l s g This agreement is entered into in by the parties in order to outline a fair and predictable process for the dedicated employees who have served in their positions in the Refuse Division. If there are aspects of the above that require refinement, the City and The League agree to re -open discussions to reach an agreement. The parties acknowledge and agree that the City is currently in the process of reviewing proposals and has not 3 reached an agreement with any refuse service provider, If the City Council decides not to enter into an agreement with a refuse services provider, this Letter of Understanding shall be null and void. For the Newport Beach Employees League: Chris Auger, For the City of Newport Beach: Keith Curr)l /Mayor r( ( /� k r"- Art Mi ell, refuse Worker II Dav"iff, City Manager Jam Newton Or ang County Employees Association (OCEA) ti Cha es Barfield Orange County Employees Association (OCEA) Date: �- ° �.? 01,5 0 /p Xtt L*� W City jerk