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Exhibit A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH POLICE ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
PREAMBLE
The Newport Beach Police Association ( "NBPA" or "Association "), 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. NBPA 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 1, 2014 to June 30, 2017 and this tentative agreement has
been embodied in this MOU, which has been executed concurrently.
3. This MOU, upon approval by NBPA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters set forth herein.
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 - Employee Relations Resolution No. 2001 -50,
the City acknowledges that NBPA 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 Relations Resolution. All other
classifications and positions not specifically included within Exhibit "A" are
excluded from representation by NBPA.
B. Duration of Memorandum
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, 2014. This MOU shall remain
in full force and effect through June 30, 2017, and the provisions of
NBPA MOU 2014 -2017
Exhibit A
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. NBPA members shall be allowed to participate in the following
activities during scheduled working hours without loss of pay
('Release Time "):
a. attendance at off -site meetings, conferences, seminars or
workshops related to matters within the scope of
representation;
b. to prepare for scheduled meetings between the City and
NBPA during the meet and confer process.
C. i. to travel to, and attend scheduled meetings between
the City and NBPA during the meet and confer
process.
ii. to travel to and attend scheduled grievance and
disciplinary hearings.
iii. to meet, for up to one hour, with their representative
prior to a hearing described in subsection C.c.ii
above.
2. NBPA shall designate certain members as those members entitled
to release time. Designates must give reasonable advance notice
to, and obtain permission from, their supervisor prior to use of
release time, or, prior to adjusting work hours. Requests for
release time shall be granted by the supervisor unless there are
specific circumstances that require the designate to remain on duty.
Designates shall, to the maximum extent feasible, receive shift
assignments compatible with participation in the meet and confer
process.
2 NBPA MOU 2014 -2017
Exhibit A
a. The NBPA President shall be entitled to a maximum of 250
hours per calendar year for appropriate association related
business, excluding time required for the meet and confer
process. The NBPA President shall, at his /her discretion,
allocate Release Time to NBPA Board members or other
designates, to a maximum of 150 hours per year per
individual. In the event the 250 hours for the President or
150 hours for other NBPA designates are insufficient, the
President may submit a request to the Police Chief, with
justification, that additional hours be granted. In no event
shall the Association be granted more than a total of 500
hours per year for all designates.
b. Any NBPA negotiating team member may request and shall
(subject to the approval process above) be granted flex
work hours on any scheduled work day during which the
negotiating team member is to attend a meet and confer
session. Employees may flex start/finish time up to two (2)
hours.
3. City grants NBPA members the right to engage in the activities
described in subsection 1(c) at any time without any reduction to
City — provided Release Time or to any Release Time bank created
pursuant to subsection C.5.
4. City Grants NBPA 500 hours of Release Time per calendar year to
engage in the activities described in subsection C.1.a and 1.b.
(City— provided Release Time.) NBPA may carry over up to 300
hours of City — provided Release Time into the ensuing calendar
year.
5. In addition to City — provided Release Time and Release Time
provided pursuant to subsection C.3, NBPA members may
contribute up to two hours of earned compensatory time off ( "CTO ")
to an NBPA Release Time Bank. Members may contribute earned
CTO only during the period from July 1 through August 15 during
any calendar year. However, members shall not have the right to
contribute CTO to the NBPA Release Time bank if NBPA has
accumulated more than 600 hours of total Release Time. Any
NBPA member who contributes CTO to the Release Time Bank
gives up any right to usage of, or payment for, the contributed CTO.
Contributions may be made only in hourly increments.
Contributions shall be on forms prepared by the City which shall
then be submitted to the appropriate department employee. City
shall advise NBPA as to the balance of hours in the Release Time
3 NBPA MOU 2014 -2017
Exhibit A
Bank upon request. For purposes of this subparagraph only, the
term "compensatory time off or CTO" includes accrued flex leave,
accrued vacation leave, and accrued holiday time.
6. There is no entitlement to release time for any matter not set forth
above.
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. 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 the Police
Department;
b. the establishment of standards of service;
C. to assign work to employees as deemed appropriate;
d. the direction and supervision of its employees;
e. the discipline of employees;
f. the power to relieve employees from duty for lack of work or
other legitimate reasons;
g. to maintain the efficiency of operations;
h. to determine the methods, means and personnel by which
Police Department operations are to be conducted;
L the right to take all necessary actions to fulfill the
Department's responsibilities in the event of an emergency;
j. the exercise of complete control and discretion over the
manner of organization, and the appropriate technology,
best suited to the performance of departmental functions.
4 NSPA MOU 2014 -2017
Exhibit A
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
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 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.
Subject to the paragraph above, this section shall not be construed to
prevent the Newport Beach Police Department from giving notice to the
Association and affording the Association the opportunity to meet and
confer on the impact of policy changes or the exercise of management
rights. However, the terms of this MOU may not be modified through the
impact negotiations process; except by mutual agreement.
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.
G. Bulletin Boards
Space shall be provided on bulletin boards within the Police Department at
their present location for the posting of notices and bulletins relating to
NBPA business, meetings, or events. All materials posted on bulletins
boards shall indicate the name of the organization responsible. Material
posted shall not contain personal attacks on any City official or employee,
any material which constitutes harassment, discrimination or retaliation on
the basis of race, gender, ethnicity, religion or other statutorily or
constitutionally impermissible basis, or any pornographic or obscene
material.
6 NBPA MOU 2014 -2017
Exhibit A
H. No Strike
The parties recognize their mutual responsibility to provide the citizens of
Newport Beach with uninterrupted municipal services and, therefore, the
parties agree not to conduct concerted strike, work slowdown, sick out,
withholding of services, or lockout activities.
I. Savings
If any provision of this MOU shall be held invalid by any court of
competent jurisdiction, or if compliance with or enforcement of any
provision shall be restrained by court action, or other established
governmental administrative tribunal, the remainder of this MOU shall not
be affected, and the parties shall replace such invalidated provision with
another of similar or equal value through the negotiations process.
J. Impasse
In the event of an impasse (the failure to agree on a new MOU after the
express term of the existing MOU has expired), the parties may agree on
mediation pursuant to the procedure outlined in Section 16 of Resolution
No. 2001 -50.
SECTION 2. — Compensation
A. Salary Adiustments
1. Effective the payroll period that includes July 1, 2014, there shall be
a base salary increase of 2.5% for all represented classifications.
2. Effective the payroll period that includes July 1, 2015, there shall be
a base salary increase of 2.5% for all represented classifications.
3. Effective the payroll period that includes July 1, 2016, there shall be
a base salary increase of 2.5% for all represented classifications.
4. Effective with City Council adoption of the 2012 -2014 MOU, a
lowest step was added to the 'Police Officer" classification that is
equal to 5% below the lowest base salary step in place prior to the
adoption of the MOU. This new salary step 1 may advance over
time as adjustments are made to base salary that apply to the
entire Police Officer classification, but shall remain 5% below the
step above it.
6 NBPA MOU 2014 -2017
Exhibit A
B. Code Seven /Duty Incentive Time
The City and NBPA have agreed to eliminate entitlement to compensation
for duty incentive time and Code Seven time based upon implementation
of the 9/80 work schedule and a Settlement Agreement between the City
and NBPA. NBPA and its members agree that the provisions and rules
relative to entitlement to compensation for duty incentive time or Code
Seven time survive the termination of this MOU, that the provisions of the
settlement agreement are in full force and effect and that no request for
compensation for duty incentive time or Code Seven time at variance with
the provisions of existing rules or the settlement agreement shall be made
at any time in the future by NBPA or any of its members.
C. Overtime
1. Employees shall be entitled to overtime compensation at the rate of
time and one half the regular rate of pay for hours worked in excess
of their regularly scheduled shift. Paid time off shall be considered
time worked for overtime calculation purposes.
2. Employees shall also be entitled to overtime compensation for
hours worked in excess of 2,080 hours in the 12 month period
commencing January 1st of each year. These overtime payments
shall be offset by Section 1 above.
3. Overtime compensation shall be in the form of compensatory time
off or pay at the election the employee. Maximum compensatory
time accrual shall be 120 hours. All overtime worked for employees
at the CTO maximum shall be paid.
4. The current practice for scheduling and approving CTO shall
continue for the term of this agreement. CTO is approved on a
"first come, first served" basis. Department policy is to approve
CTO unless the use of CTO would result in staffing below minimum
levels established by the Department, or the Department has a
special circumstance or an operational need that requires staff
resources above its established minimum levels- The Association
may reopen negotiations concerning the protocol of approving CTO
requests if the Department's staffing level drops such that it
routinely runs at or below minimum staffing levels.
5. The Police Department has the discretion to schedule any of its
employees to work a regular work day on July 4th, regardless of the
day of the week or job assignment. This may include modifying
work schedules and/or days off according to deployment needs.
Unit employees who actually work July 4th will be compensated at
7 NBPA MOU 2014 -2017
Exhibit A
their regular hourly rate, plus premium pay equal to 112 of the hours
actually worked on that day. Employees will be provided their
regular number of days off for the month of July (unless otherwise
scheduled on an overtime basis), which will be selected /assigned
according to the normal practices of their particular work unit.
Should the employees work an additional shift in subsequent leap
years compensation shall be paid at the appropriate rate of overtime
pay.
6. The City and NBPA jointly petitioned the NLRB and were granted a
7(b) exemption of the Fair Labor Standards Act to allow for use of
the overtime standards as set forth in this section. The exemption
allows continued use of the Department's alternative /semi - flexible
schedule.
D. Overtime Compensation - Court
1. Compensation - Employees shall receive either compensatory time
or paid time at their discretion.
2. On -Call - Off -duty employees on call for court who have not been
canceled prior to the scheduled standby time shall, whether
extended or not, be compensated at a rate equal to the actual
standby time, with a minimum of one (1) hour paid at time and one -
half the employee's regular rate of pay.
3. Appearance - Off -duty employees who are required to appear in
court shall be compensated for the actual time involved with a
minimum of four (4) hours paid at time and one -half the employee's
regular rate of pay. Employees appearing in court after being on
call the same day shall be compensated from the time listed on the
subpoena until released by the court.
4. Cancellation — Off -duty employees whose court appearance is
cancelled with less than 12 hours notice shall receive a payment for
one hour at the employee's regular rate of pay.
E. Master Police Officer Recognition Program
The City and NBPA agreed to institute a Master Officer Recognition
Program ( "MORP ") on July 4, 1987. The intent of the MORP is to attract
highly qualified and experienced lateral officers and encourage NBPA
members to remain with the Newport Beach Police Department by
compensating employees who have acquired special skills, training and
ability through years of service. The MORP is comprised of four levels
8 NBPA MOU 2014 -2017
Exhibit A
with progressively higher compensation paid as years of service and
experience increase.
1. Years of sworn service includes actual time employed as a police
recruit or similar classification in a police training academy, not to
exceed six months.
2. Lateral hires shall be authorized to utilize pre - Newport Beach
"years of sworn service" and years of "specialty assignment"
service, in satisfying those Master Office requirements set forth
herein.
3. A lateral hire shall be eligible to participate in the "MORP" within
and following their probationary testing period, upon entrance to the
solo patrol phase of this probationary testing period.
MORP shall commence beginning the first full pay period after the
employee qualifies for each Master Officer step. In the case of lateral
hires, MORP shall commence following the first full pay period in solo
patrol. It is the responsibility of the employee to apply for MORP pay or
any increase in MORP compensation level. The City reserves the right to
administratively modify the MORP program so as to structure it as a
Special Pay rather than an element within the base rate, as long as the
overall compensation of the employees is not reduced. The Association
will be given advance notice if such a change is to be implemented.
The requirements and compensation of the four levels of MORP are
summarized as follows:
MASTER OFFICER 1
Reauirements:
1. A minimum service of five (5) years as a sworn Police Officer; and
2. An Intermediate POST Certificate or the educational equivalent;
and
3. Must maintain at least an overall "meets standards" or equivalent
rating on their most recent performance evaluation.
Compensation:
Five percent (5 %) base salary step increase.
9 NBPA MOU 2014 -2017
Exhibit A
MASTER OFFICER II
Requirements:
1. A minimum service of eight (8) years as a sworn Police Officer; and
2. An Advanced POST Certificate, or the educational equivalent; and
3. Must maintain at least an overall "meets standards" rating on their
most recent performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer I.
MASTER OFFICER III
Requirements:
1. A minimum service of ten (10) years as a sworn Police Officer,; and
2. An Advanced POST Certificate, or the educational equivalent; and
3. Must maintain at least an overall "meets standards" rating on their
most recent NBPD performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer II.
MASTER OFFICER IV
Requirements:
1. a. For employees hired prior to July 1, 2014, minimum service as
a sworn Police Officer shall be:
• Fifteen (15) years plus a Bachelor's degree or a
minimum of 120 semester units; or
• Twenty (20) years plus a minimum of 90 semester
units; or
10 NBPA MOU 2014 -2017
Exhibit A
. Twenty-five (25) years plus a minimum of 60
semester units.
b. For employees hired on or after July 1, 2014, minimum
service as a sworn Police Officer shall be 15 years plus a
Bachelor's degree.
2. An Advanced POST Certificate, or the educational equivalent; and
3. At least one year assigned as a Field Training Officer in the Patrol
Division, regardless of the number of hours actually training, or have
attended the POST FTO school; and
4. Must receive and maintain at least an overall "meets standards" rating
on their most recent NBPD performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer III.
F. Education Retention Incentive Prooram
The City has instituted the Education Retention Incentive Program to
retain experienced, well - educated non -sworn employees. Employees shall
be eligible for payment for education beyond minimum qualifications and
years of service as follows. Incentive pay shall commence beginning the
first full pay period after the employee qualifies. It is the responsibility of
the employee to apply for incentive pay or any increase in compensation
level.
Education Years of City Service
30 units 15
AA or 60 units 12
MA/BA or 120 units 8
A graduate degree is the only eligible increment of education for positions
requiring BA.
Compensation:
Five percent (5 %) of member's base monthly salary.
11 NSPA MOU 2014 -2017
Exhibit A
G. Scholastic Achievement Pay
Sworn NBPA members are entitled to additional compensation contingent
upon scholastic achievement ( "Scholastic Achievement Pay"). Sworn
NBPA members may apply for increases pursuant to this Section when
eligible and scholastic achievement pay shall be included in the member's
paycheck for the pay period immediately after approval by the Chief of
Police. It is the responsibility of the NBPA member to apply for Scholastic
Achievement Pay. Approval of the member's application shall not be
unreasonably withheld or delayed, and the member shall not be entitled to
receive scholastic achievement pay prior to the date the application is
approved, even though the member may have been eligible prior to
approval. Scholastic achievement pay is contingent upon years of service
and the number of units and /or degrees received by the employee.
Effective the pay period beginning January 20, 2007 (prospectively), years
of service shall include time employed as a police recruit or similar
classification in a police training academy, not to exceed six months.
For persons hired on or after June 26, 2012a "degree" shall be defined as
a degree 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. Eligibility to
receive compensation shall be conditioned upon a determination by the
appointing authority that the major in which a degree is earned and /or a
substantial number of earned units which will qualify the individual for a
degree, are in a field or protocol reasonably likely to enhance the
employee's job performance.
The Plan consists of levels which reflect multipliers of the base monthly
salary. Qualifying units and /or degrees must be awarded by accredited
community colleges, state colleges or universities. Amounts are not
cumulative. The following is a schedule of monthly payments pursuant to
the Scholastic Achievement Program:
Scholastic achievement pay is:
Years of
Service: 30 Units 60 Units
90 Units BA/BS MA/MS /JD
2 1%
1%
1%
1%
1%
3 1%
2%
3%
5.5%
5.5%
4 1%
2%
3%
5.5%
6.5%
Effective July 1, 2016:
5 1 %
2%
3%
5.5%
7.5%
12 NBPA MOU 2014 -2017
Exhibit A
Any unit members hired on and after July 1, 2012 shall be ineligible for
any scholastic pay based upon having obtained units only.
H. Non -sworn Personnel Shift Differential
The night shift differential pay for non -sworn personnel shall be $1.50 per
hour between the hours of 6 p.m. and 6 a.m.
Training Pay
Police Officers assigned to Field Training Officer duties for either Regular
or Reserve officers and Civilian Employees assigned to training duties for
new employees are entitled to receive compensation for these extra
duties. To be eligible for compensation, the employee shall have
completed a 40 -hour FTO course and shall be required to complete a
Daily Evaluation Report for each shift worked with a trainee. Employees
assigned full training responsibilities who have not completed the FTO
course shall be eligible for compensation pending course completion.
Employees will be compensated for each shift worked as an FTO with a
trainee at the rate of 1.5 straight time hours per shift.
Effective with City Council adoption of this 2014 -2017 MOU, employees in
the following classifications, and who have met the FTO Training
requirements, shall be eligible for FTO Training Pay. Senior Community
Services Office, Senior Custody Officer, Senior Animal Control Officer,
Senior Police Dispatcher, Senior Crime Scene Investigator. Eligibility for
the FTO Training Pay shall continue only as long as the classifications
remain a part of the City's structure.
J. Motor Officer Pay
Assigned Motor Officers shall receive six (6) additional hours of overtime
per month pursuant to this City and Association mutual agreement that the
six (6) additional hours of overtime represent reasonable compensation for
maintenance of the motorcycle in a clean and serviceable condition.
K. Canine Officer
Employees assigned to work as Canine Officers, (in accordance with
individual signed contracts between the employees and department) shall
receive additional compensation at the rate of six (6) additional hours of
overtime pay per month (six hours of time and a half equals nine (9) hours
of compensation). This pay is recognition of the additional hours required
of employees assigned to care for a City dog. City and Association
13 NBPA MOU 2014 -2017
L.
M
2
Exhibit A
mutually agree that the additional six (6) hours pay represents reasonable
compensation for the additional tasks required in maintaining the canine.
No employee shall work more than six (6) hours in performing Canine
Officer duties without the express direction of their supervisor.
Matron Pay
Any female non -sworn employees assigned matron duties shall receive an
additional one and one -half (1 % ) hours of straight time pay for each shift
matron duties are performed. Following MOU adoption, the parties shall
meet and confer in good faith in an effort to develop a voluntary Standby
Matron Incentive pilot program to address operational needs of the
department.
Minimum Call Back
The following shall determine the type of compensation for the overtime
worked:
a. Court (four hour minimum).
b. Call Out - off duty personnel called out for a special assignment
(two hour minimum).
C. Payment shall not be made for employees required to return to
work to correct work errors.
d. Call back shall be paid only for hours not contiguous to the
employee's regular work schedule when they are required to
physically return to work.
Bilinoual Pay
Employees certified as bilingual (Spanish) shall be eligible to receive Two
Hundred ($200.00) Dollars per month in bilingual pay. The existing
certification process will confirm that employees are fluent at the street
conversational level in speaking, reading and writing Spanish.
Employees certified shall receive bilingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this
section by the Chief of Police.
14 NBPA MOU 2014 -2017
Exhibit A
O. Certification Pay
Unit employees in Mechanic classification shall be eligible for annual
certification pay as follows:
Smog License - $250.00
2. Fire Mechanic State Level I - $100.00
3. Fire Mechanic State Level II - $200.00
4. ASE Certification - $25.00 per certification up to a maximum of
eight (8) and $100.00 for possessing a current ASE Master Truck
Technician and $100.00 for possessing a current ASE Master
Automobile Technician certification.
5. Commercial Drivers License, Class A - $100.00
6. Commercial Drivers License, Class B - $75.00
P. Uniform Allowance.
The City reports to PERS a uniform allowance amount of $1,100 per year
for sworn officers; $118.56 per year for non -sworn personnel, subject to
the provisions and limitations under the Public Employees Retirement
Law, including restrictions on reporting uniform allowance as pensionable
compensation for °non classic" members hired after January 1, 2013.
Q. One -time Bonus (Alon Safety}
Effective the pay issue date of August 15, 2014, non sworn members who
are employed at the time of adoption of this 2014 -17 MOU will receive a
one -time bonus as fol lows:
Tier I (PERS Legacy members) - $2,000
Tier II (PERS Classic members) - $2,500
Tier III (PERS PEPRA members) - $3,000
The parties agree that this one -time bonus is not intended to compensate
employees for any time worked in the past and or in the future and further
agree that this bonus does not meet the criteria under California Code of
Regulations 571(b) as reportable compensation for retirement purposes.
15 NBPA MOU 2014 -2017
Exhibit A
SECTION 3. —Leaves
A. Flex Leave
NBPA members shall accrue (prospectively) flex leave based on
the greater of their total continuous years of full -time service with
the City of Newport Beach, or their total full -time employment as a
sworn law enforcement officer, including up to a maximum of six
months time employed as a police recruit or similar classification in
a police training academy.
As of July 1, 2012, the Flex Leave accrual rate shall be:
Years of
Hours Accrued
Hours
Maximum
Continuous
Per Pay Period
Accrued
Balance
Service
Annually
(total hours)
1 but less than 5
6.31
164.06
441.70
5 but less than 9
6.92
179.92
484.40
9 but less than 12
7.54
196.04
527.80
12 but less than 16
8.16
212.16
571.20
16 but less than 20
8.77
228.02
613.90
20 but less than 25
9.38
243.88
656.60
25 and over
10.00
260.00
700.00
NBPA and the City acknowledge that employees assigned the 9/81
work schedule accrue one (1) additional hour per pay period in
addition to the accrual levels set forth above.
The Flex leave program shall be administered as follows:
a. NBPA members shall not accrue flex leave until continuously
employed by the Newport Beach Police Department for a
period of six (6) months provided, however, if a member on
the flex leave program becomes sick during the first six
months of employment, the City will advance up to thirteen
(13) pay periods of paid leave time for use by the member to
recover from illness. In the event the City advances paid
leave time and the employee is terminated or resigns before
completing six months of continuous employment, the
member's final check shall be reduced by an amount equal
to the number of flex leave hours advanced multiplied by the
member's hourly rate of pay.
16 NSPA MOU 2014 -2017
Exhibit A
b. NBPA members shall accrue thirteen pay periods of flex
leave immediately upon completion of six (6) months
continuous employment with the Newport Beach Police
Department, provided however, this amount shall be
reduced by any flex leave time advanced during the first six
months of employment.
C. Members employed by the City prior to initiation of the flex
leave program have had then current accrued vacation time
converted to flex leave on an hour for hour basis with then
current sick leave placed in a bank to be used as provided in
Section 11.2 of the City of Newport Beach Employee Policy
Manual. Members entitled to use sick leave pursuant to
Section 11.2A of the Employee Policy Manual must notify
appropriate department personnel of their intention to access
the sick leave bank and, in the absence of notification,
absences will be charged to the member's flex leave
account. Members who wish to convert an absence from
flex leave to sick leave must submit a written request to the
Chief of Police within twenty (20) days after the absence (20
days from the last absence in the event the member was
continuously absent for more than one day) specifying the
nature of the illness and the person notified of the intent to
use sick leave, or the reasons for the failure to notify
appropriate department personnel. The Chief of Police shall
grant the request for conversion if the member submits a
written statement signed by his or her attending physician
confirming the illness and the Police Chief determines that
the member's failure to notify appropriate departmental
personnel was reasonable under the circumstances.
d. NBPA members shall be entitled to accrue flex leave up to
seventy (70) times the members bi- weekly flex leave accrual
rate (Flex Leave Accrual Threshold). NBPA members first
hired by the City prior to September 1, 1997, shall be paid
for all flex leave that accrues in excess of the flex leave
accrual threshold (Flex Leave Spillover Pay). Flex Leave
Spillover Pay will be paid at the member's regular hourly rate
of pay. Effective during the first pay period of January, 1998,
NBPA members who have not utilized at least 80 hours of
flex leave during the prior calendar year shall not accrue flex
leave in excess of the Flex Leave Accrual Threshold and
shall not be entitled to Flex Leave Spillover Pay.
17 NBPA MOU 2014 -2017
Exhibit A
NBPA members first hired, or rehired by the City subsequent
to September 1, 1997, 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.
Employees who have accrued in excess of seventy (70)
times the member's bi- weekly accrual rate shall accrue no
additional time unless through use of time or any authorized
cash payment (including spillover pay), the accrued hours
decrease to less than seventy (70) times the bi- weekly
accrual rate. Except for persons eligible for Spillover Pay, in
no case shall leave that would have been accrued in excess
of the above limitations be earned for cash conversion.
e. All requests for scheduled flex leave shall be submitted to
appropriate department personnel. Flex leave may be
granted on an hourly basis. In no event shall a member take
or request flex leave in excess of the amount accrued.
Members shall be paid for all accrued flex leave at their then
current hourly rate of pay upon termination of the
employment relationship.
g. Should approved leave be canceled due to the needs of the
City, a reasonable extension of time (up to 90 days) will be
granted for employees to reschedule the leave without the
loss of spillover or leave accrual.
h. Employees actually working 2088 hours per year shall be
credited with two hours holiday pay per quarter worked on
the 12 hour schedule.
B. Holiday Time
NBPA members shall accrue holiday time at the rate of 96 hours per fiscal
year (July 1 through June 30), and at the rate of 3.7 hours per pay period.
Option 1 (Default): Unless otherwise irrevocably elected by the employee,
holiday compensation shall be paid in cash along with the employee's
regular bi- weekly check, and will be reported to PERS as special
compensation in addition to the employee's bi- weekly base salary.
Option 2: Within 60 days of NBPA membership, NBPA members may
irrevocably elect to have all or any portion of the 3.7 hours of accrued
holiday compensation added to the member's flex leave bank on a bi-
weekly basis in lieu of a cash payment. Once holiday time is accrued to
18 NBPA MOU 2014 -2017
Exhibit A
the member's flex leave bank, all rules and opportunities concerning the
flex leave program (described elsewhere in this MOU and in the Employee
Policy Manual) will apply (e.g. usage, maximum balance, spillover,
periodic payout, etc). Pay for any time taken from the flex leave bank, and
any spillover pay or other payout for flex leave, will not be reported to
PERS as special compensation.
C. Leave Pay Off
For the term of this agreement, NBPA members shall receive payment for
any accrued leave upon termination at the rate of 100% of their base
hourly rate.
D. Bereavement Leave
Bereavement Leave shall be defined as the necessary absence from duty
by employee having regular or probationary appointment because of the
death or terminal illness in his /her immediate family. NBPA members
shall be entitled to forty (40) hours of bereavement leave per incident
(terminal illness followed by death is considered one incident). Leave
hours need not be used consecutively, but should occur in proximate time
to the occurrence. Immediate family shall mean an employee's father,
stepfather, mother, stepmother, brother, sister, spouse /domestic partner,
child, stepchild and grandparent, and the employee's spouse /domestic
partner's father, mother, brother, sister, child and grandparent. An
employee requesting bereavement leave shall notify his/her supervisor as
soon as possible of the need to take leave.
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 or vacation leave balance be reduced below one hundred and sixty
(160) hours.
F. Worker's Compensation Leave
Sworn Members
Any NBPA member who is a sworn peace officer and incapacitated
by reason of any injury or illness which has been determined to
have arisen out of or in the course of his or her employment shall
receive compensation in accordance with the provisions of Section
4850 et. seq. of the Labor Code of the State of California.
19 NBPA MOU 2014 -2017
G.
H.
Exhibit A
2. Non —sworn Members
Any employee incapacitated by reason of any injury or illness which
has been determined to have arisen out of or in the course of his or
her employment shall receive, in addition to temporary disability
compensation pursuant to the laws of the State of California, an
additional sum which, when added to temporary disability
payments, provides the injured employee with regular
compensation. Regular compensation is defined as the salary for
the position and step occupied by the employee on the date of the
job — related illness or injury. Payment shall commence with the first
day of approved absence and end with the termination of temporary
disability, or the expiration of six (6) months, whichever occurs first.
Schedulina of Medical Treatment for Industrial Injuries
Time spent by an employee receiving medical attention during the
employee's normal working hours is considered hours worked and
compensable, when the City or its representative schedules the
appointment.
When an employee is temporarily totally disabled due to an industrial
injury, and is unable to perform even limited duty in the workplace, all
appointments, whether arranged by the City or the employees, shall be
considered as occurring during normal working hours. The employee
shall not be entitled to any additional compensation, regardless of the
employee's regular work schedule or the type of compensation currently
received, except as otherwise required by law.
When an employee has been released to either full or limited duty and has
returned to the workplace, time spent receiving ongoing medical
treatment, such as physical therapy or follow -up visits that are not
scheduled by the City, is not considered hours worked and therefore, is
not compensable. To avoid disruption in the workplace, an employee
shall schedule such appointments to occur during off duty hours whenever
possible. In the event such scheduling is not available, employee may be
allowed to attend an appointment during their regularly scheduled duty
shift with prior supervisory approval. Regular recurring appointments
(i.e., weekly physical therapy) must be scheduled off duty.
Non - Accruing Leave Bank
Effective July 1, 2014, each sworn member employed at the time of
adoption of this MOU, shall receive a one -time bank of 100 non - accruing
leave hours. Employees hired between July 12, 2014 and June 30, 2015
shall be granted 67 hours, and employees hired between July 1, 2015 and
20 NBPA MOU 2014 -2017
Exhibit A
June 30, 2016 shall be granted 33 hours. Employees hired after July 1,
2016 shall not receive this benefit. The hours have no cash value and
cannot be transferred to any other leave bank. Employees may only use a
maximum of forty (40) hours of the Non - Accruing Leave Bank in any fiscal
year. Usage of these hours is subject to supervisory approval. This benefit
shall "sunset" on June 30, 2017 and any unused hours at that time shall
expire.
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
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 amounts listed below, the City shall contribute the
minimum CaIPERS participating employer's contribution towards
medical insurance. 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 Police Association will cooperate in pursuing additional
optional benefits to be available through the Cafeteria Plan.
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 July 1, 2014 through December 31, 2014 the City's
monthly contribution towards the Cafeteria Plan shall be
$1,324.00 (plus the minimum CaIPERS participating employer
contribution as outlined in Government Code §22892).
21 NBPA MOU 2014 -2017
Exhibit A
• Effective the first pay issue in January 2015, the City's monthly
contribution towards the Cafeteria Plan will increase to
$1,424.00 (plus the minimum CaIPERS participating employer
contribution as outlined in Government Code §22892.)
• Effective the first pay issue in January 2016, the City's monthly
contribution towards the Cafeteria Plan will increase to
$1,524.00 (plus the minimum CaIPERS participating employer
contribution as outlined in Government Code §22892.)
On or before July 1, 2016, at the request of either party, the parties
shall meet and confer in good faith to discuss possible changes to
the medical benefit program, contribution levels, or other elements
of healthcare services, provided, however, that any changes to the
MOU only may occur by mutual agreement of the parties.
NBPA 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.
Current employees electing to opt out of City provided medical
coverage will be eligible to receive a maximum cafeteria allowance
of $1,274 per month. Effective the first pay issue in January 2015,
the opt out cafeteria allowance will be $1,000 per month.
Employees hired on or after July 1, 2014, and who opt out of
medical coverage, will receive a maximum cafeteria allowance of
$1,000 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.
22 NSPA MOU 2014 -2017
r'-�
Exhibit A
5. Changes in Insurance Carriers and Coverages
There shall be no change in Insurance carriers or coverages during
the term of this agreement unless the City has given prior notice to
the Association and, upon request, met and conferred.
Additional Insurance /Programs
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 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
Maximum Benefit
Minimum Benefit
Waiting Period
66.67% gross weekly wages
$10,000 1month
$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.
23
NBPA MOU 2014 -2017
Exhibit A
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 retires 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
Retirement Formula
The City contracts with the California Public Employees Retirement
System ( "CaIPERS" or "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 as follows:
Tier I ("Legacy"): For employees hired by the City on or before
November 23, 2012, the retirement formula for safety members
shall be 3% @50 and the retirement formula for non safety
members shall be 2.5%@ 55, calculated on the basis of the highest
consecutive 12 month period selected by the employee.
Tier 11 ( "Classic"): For employees first hired by the City between
November 24 and December 31, 2012, or hired on or after January
1, 2013 and who are current members of the retirement system or a
reciprocal retirement system, as defined in Public Employees
Pension Reform Act (PEPRA), the retirement formula for safety
members shall be 3 % @55 and the retirement formula for non
safety members shall be 2 % @60, calculated on the basis of the
highest consecutive 36 month period selected by the employee.
Tier 111 (PEPRA "): For employees first hired by the City on or after
January 1, 2013, and who do not meet the Tier 11 criteria, the safety
retirement formula shall be 2.7% @57 and the non safety retirement
formula shall be 2.0% @62, calculated on the basis of the highest
consecutive 36 month period selected by the employee.
24 NBPA MOU 2014 -2017
Exhibit A
2. Employee Contributions
Unit members shall contribute additional amounts toward the PERS
retirement benefit, to the extent permissible by law, as set forth
below. Should any such provision be deemed invalid, the City and
Association agree to meet for the purpose of renegotiating
employee retirement contributions or other equivalent economic
adjustments.
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 pensionable
compensation, and will be made on a pre -tax basis through payroll
deduction, to the extent allowable by the internal Revenue Code
a. Safety
Tiers i and lt.
Effective the pay period that includes July 1, 2014, NBPA Tier
t and it safety members will contribute the full statutory
member contribution, equal to 9% of pensionalbe
compensation, plus an additional 3.6% of pensionable
compensation toward retirement costs as permitted under
Government Code §20516(17, for a total contribution of 12.6%
of pensionable compensation.
Effective the pay period that includes July 1, 2015, NBPA Tier
I and ll safety members will contribute the full statutory
member contribution, equal to 9% of pensionalbe
compensation, plus an additional 4.1% of pensionable
compensation toward retirement costs as permitted under
Government Code §205160, for a total contribution of 13.1 %
of pensionable compensation.
Effective the pay period that includes July 1, 2016, NBPA Tier
i and 11 safety members will contribute the full statutory
member contribution, equal to 9% of pensionalbe
compensation, plus an additional 4.6% of pensionable
compensation toward retirement costs as permitted under
Government Code §20516(0, for a total contribution of 13.6%
of pensionable compensation.
25 NBPA MOU 2014 -2017
Exhibit A
Tier Ill:
Effective the pay period that includes July 1, 2014, in addition
to the statutorily required 50% contribution of total normal
costs (`member contribution rate" which in FY14 -15 is
11.25% of pensionable compensation), Tier Ill employees
shall contribute 1.35% of pensionable compensation toward
retirement costs pursuant to Government Code § 205160,
for a total contribution of 12.6% of pensionable
compensation.
Effective the pay period that includes July 1, 2015, in addition
to the statutorily required 50% contribution of total normal
costs (`member contribution rate" which in FY14 -15 is
11.25% of pensionable compensation), Tier 111 employees
shall contribute 1.85% of pensionabbe compensation toward
retirement costs pursuant to Government Code § 20516(1),
for a total contribution of 13.1 % of pensionable
compensation. If the FY15 -16 member contribution rate for
employees in Tier 111 shall become greater or less than
11.25% of pensionable compensation, as determined by
PERS valuation, the additional contribution made by the
employee under 20516(1) will be increased or decreased
accordingly so that the total employee contribution equals
13.1 % of pensionable compensation.
Effective the pay period that includes July 1, 2016, in addition
to the statutorily required 50% contribution of total normal
costs ("member contribution rate" which in FY14 -15 is
11.25% of pensionable compensation), Tier Ill employees
shall contribute 2.35% of pensionable compensation toward
retirement costs pursuant to Government Code § 205160,
for a total contribution of 13.6% of pensionable
compensation. if the FY16 -17 member contribution rate for
employees in Tier 111 shall become greater or less than
11.25% of pensionable compensation, as determined by
PERS valuation, the additional contribution made by the
employee under 20516(1) will be increased or decreased
accordingly so that the total employee contribution equals
13.6% of pensionable compensation.
26 NBPA MOU 2014 -2017
Exhibit A
b. Non Safety
Tier l:
Effective the pay period that includes July 1, 2014,
employees will contribute 9.45% of pensionable
compensation toward the PERS retirement benfefit on a pre-
tax basis as provided by the Internal Revenue Code. The
contribution will reflect a member contribution of 7.03% of
pensionable compensation and 2.42% of pensionable
compensation, with the City to pay the remaining portion of
the required member contribution (the `EPMC') equal to. 9 7%
of pensionalbe compensation, pursuant to California
Government Code §20516(a).
Effective the first full pay period following MOU adoption, the
City shall report as pensionable compensation to Ca1PERS
the EPMC.
Effective the pay period that includes July 1, 2015, Tier i
employees shall pay the entire member amount equal to 8%
of pensionable compensation, thereby eliminating the EPMC,
and shall, in addition to the 2.42% of pensionable
compensation stated above, contribute .48% of pensionable
compensation toward retirement costs pursuant to
Government Code §20516(0, for a total of 10.9% of
pensionable compensation. Concurrent with the July 1, 2015
additional contribution, the remaining .97% EPMC will be
eliminated.
Effective the pay period that includes July 1, 2016, Tier I
employees shall contribute an additional 1.45% of
pensionable compensation toward retirement costs pursuant
to Government Code §20516(0, for a total of 12.35% of
pensionable compensation.
In 2008, in exchange for the 2.5 % @55 retirement formula,
Tier i Legacy miscellaneous (non- safety) unit members
agreed to contribute a portion of the employer retirement
costs equal to 2.42% of pensionable compensation pursuant
to California Government Code Section 20516(a). Under the
agreement, ratified via a contract amendment with Ca1PERS,
the modified normal member contribution for Tier I members
is 10.42 %.
27 NBPA MOU 2014 -2017
Exhibit A
Tier I
Effective the pay period that includes July 1, 2014, Tier 11
employees shall contribute the statutory PERS Member
Contribution equal to 7.0% of pensionable compensation,
plus an additional 1.79% of pensionable compensation
toward retirement costs under Government Code § 20516(0,
for a total contribution of 8.79% of pensionable
compensation.
Effective the pay period that includes July 1, 2015, Tier 11
employees shall contribute the statutory PERS Member
Contribution equal to 7.0% of pensionable compensation,
plus an additional 3.57% of pensionable compensation under
Government Code § 20516(o, toward retirement costs, for a
total contribution of 10.57% of pensionable compensation.
Effective the pay period that includes July 1, 2016, Tier 11
employees shall contribute the statutory PERS Member
Contribution equal to 7.0% of pensionable compensation,
plus an additional 5.35% of pensionable compensation
toward retirement costs under Government Code § 20516(1),
for a total contribution of 12.35% of pensionable
compensation.
Tier lll:
The minimum statutory employee contribution for employees
in Tier ill, subject to the provisions of the Public Employees
Pension Reform Act (PEPRA), equals 50% of the "total
normal cost ". For FY14 -15, the employee rate is 6.25% of
pensionable compensation and is subject to change based on
annual PERS actuarial valuations.
Effective the pay period that includes July 1, 2014, in addition
to the statutorily required 50% contribution of total normal
costs, Tier 111 employees shall contribute 2.1 % of
pensionable compensation toward retirement costs pursuant
to Govemment Code § 20516(o, for a total of 8.35% of
pensionable compensation.
Effective the pay period that includes July 1, 2015, in addition
to the statutorily required 50% contribution of total normal
costs, Tier III employees shall contribute 4.1 % of pensionable
28 NBPA MOU 20142017
Exhibit A
compensation toward retirement costs pursuant to
Government Code § 205160, for a total of 10.35% of
pensionable compensation. If the FY15 -16 member
contribution rate for employees in Tier 111 shall become
greater or less than 6.25% of pensionable compensation, as
determined by PERS valuation, the additional contribution
made by the employee under 205160 will be increased or
decreased accordingly so that the total employee contribution
equals 10.35% of pensionable compensation.
Effective the pay period that includes July 1, 2016, in addition
to the statutorily required 50% contribution of total normal
costs, Tier IU employees shall contribute 6.1% of
pensionable compensation toward retirement pursuant to
Government Code § 205160, for a total of 12.35% of
pensionable compensation. if the FY16 -17 member
contribution rate for employees in Tier Ill shall become
greater or less than 6.25% of pensionable compensation, as
determined by PERS valuation, the additional contribution
made by the employee under 205160 will be increased or
decreased accordingly so that the total employee contribution
equals 12.35% of pensionable compensation.
3. The City's contract with PERS shall also provide for:
a. The military buy -back provisions pursuant to Section
20930.3 of the California Government Code and the highest
year benefit pursuant to Section 20042.
b. The Level 4 1959 Survivors Benefits.
C. The PERS pre - retirement option settlement 2 death benefit
(Section 21548) for miscellaneous and safety members.
4. To the extent during the term of this Memorandum of
Understanding that the City pays a portion of the normal PERS
contributions of members, said payments shall be reported to
PERS as special compensation as is authorized by Government
Code §20636(c)(4).
Payment by any unit member of the individual member's normal
employee PERS contributions or amounts contributed pursuant to
20516 (a) or (0, shall not be reported to PERS as special
compensation.
29 NSPA MOU 2014 -2017
Exhibit A
E. Retiree Medical Benefit
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, 2005.
b. Category 2 - Active employees hired prior to January 1,
2005, whose age plus years of service as of January 1, 2005
was less than 50 (46 for public safety employees).
C. Category 3 - Active employees hired prior to January 1,
2005, whose age plus years of service was 50 or greater (46
for public safety employees) as of January 1, 2005.
d. Category 4 - Employees who had already retired from the
City prior to January 1, 2005, and were participating in the
previous retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Retirement Health Savings Plan (RHS).
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.
30 NBPA MOU 2014.2017
Exhibit A
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 contributions
at the level of zero percent (0 %) for Flex/Vacation Leave and zero
percent (0 %) for 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 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.
Nothing in this section restricts taking leave for time off purposes
31 NBPA MOU 2014 -2017
I ZMA -Mao
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
32 NBPA MOU 2014 -2017
Exhibit A
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 CaIPERS 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 emplovees 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
33 NBPA MOU 2014 -2017
Exhibit A
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 $4,800.00 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.
Q
contribution after retirement can be used for any IRS
authorized ourpose. not iust 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.
For existing NBPA retirees in this category, the $400 was increased
to $450 effective July 1, 2006. The NBPA and Police Management
Association have agreed to reimburse the City for half of the cost of
this increase, on an ongoing basis. To that end, the City will
invoice NBPA at the end of each quarter for half the actual cost of
this increase during the previous three months.
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, will have the authority to
that will be available through the plan.
34
Committee, or its successor
determine investment options
NBPA MOU 20142017
Exhibit A
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. City Contribution to PORAC Retiree Medical Trust (RMT)
Effective the first payroll period starting on or after January 1, 2013, the
City shall contribute $100.00 per month, per unit member to the PORAC
Retiree Medical Trust. Said City contributions shall be made through pre-
tax payroll deductions in the $100.00 uniform amount for all unit
employees. At no time shall the City be liable for administering the
PORAC RMT, paying fees towards it, remedying or covering any losses
by it, or assuming any of the PORAC RMT's liabilities or legal obligations.
In the event the City is required to pay or withhold payroll taxes on
employee contributions, the parties shall immediately meet and confer in
good faith to attempt to implement equitable adjustments to the
contributions referenced herein. In the event the PORAC RMT ceases to
operate, the Association shall designate an alternate retiree medical
vehicle to which the City contribution shall be made, with said contribution
being conditioned upon there being no additional cost or administrative
burdens associated therewith.
G. Tuition Reimbursement
NBPA members attending accredited community colleges, colleges, trade
schools or universities may apply for reimbursement of one hundred
percent (100 %) of the actual cost of tuition, books, fees or other student
expenses for approved job — related courses. Beginning July 1, 2012, the
maximum tuition reimbursement for both sworn and non -sworn personnel
shall be $1,400 per fiscal year.
H. Physical Conditioning Equipment/Apparel
City has acquired fitness equipment for use by members in maintaining
physical fitness. City shall budget $5,000.00 per each calendar year for
the maintenance, repair, improvement, or replacement of fitness
equipment. Any purchase of new equipment shall be subject to the
concurrence of the Department. All exercise facilities and equipment will
be available to all members of the department.
35 NBPA MOU 2014 -2017
Exhibit A
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:
i. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series;
ii. Seniority shall include time spent on industrial leave, military
leave and leave of absence with pay, but shall not include
time spent on any other authorized or unauthorized leave of
absence.
C. "Classification" shall mean one or more full time positions identical
or similar in duties and embraced by a single job title authorized in
the City budget and shall not include part—time, seasonal or
temporary positions. Classifications within a Series shall be ranked
according to pay (lowest ranking, lowest pay).
d. "Series" shall mean two or more Classifications within a
Department which require the performance of similar duties with the
higher ranking Classification (s) characterized by the need for less
supervision by superiors, more difficult assignments, more
supervisory responsibilities for subordinates. The City Manager
shall determine those Classifications which constitute a Series.
36 NBPA MOU 2014 -2017
Exhibit A
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. 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.
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 Employee Policy Manual.
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 laid off
former employee shall remain on the re- employment list for not to exceed
two (2) years from the date of layoff. In the event a vacant position occurs
37 NBPA MOU 20142017
Exhibit A
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 Director.
5. Severance Pay
Permanent employees who are laid off shall, as of the date of layoff,
receive one week severance pay for each year of continuous service with
the City of Newport Beach, but in no case to exceed ten (10) weeks of
severance compensation.
B. Work Schedules
Nothing contained herein is intended to abridge management's right to schedule
work to meet the Police Department's needs of providing services in an efficient
and safe manner. Management recognizes its obligations under the Meyers -
Milias -Brown Act to meet and confer before making any substantive changes to
work schedules that impact an employee's conditions of employment.
1. Substantive Work Schedule Modifications
Newport Beach Police Department currently has available a variety of
work schedules including 5/8, 3/12, 9/81, 4110 and the 3111 schedule
implemented in 2013. Except in the case of emergency, prior to moving
any employee or group of employees from one work schedule to another
(for example from a 9/81 to a 3/12 schedule), the Department shall notify,
and upon request, meet and confer with the Association in advance of any
schedule change. If an emergency prohibits meeting and conferring prior
to the schedule change, the Department shall meet and confer with the
Association as soon as is reasonably possible after the schedule change.
2. Non - Substantive Schedule Modifications
In the event of any non - substantive change to an employee's work
schedule (changes in starting times, days off, etc), Management agrees to
give as much advance notice of said change as possible and to give
reasonable regard to the needs of the employees to make adjustments to
38 NBPA MOU 2014 -2017
Exhibit A
their personal schedules and commitments related to the change in work
schedules.
3. Transfers
Transferring an employee to an assignment with a different work schedule
shall not be considered a change to modified work schedules and shall not
obligate Management to meet and confer over said change.
C. Seniority
1. Definition and Policy
In order to clarify "seniority" practices, the following definition and policy
for "seniority" determinations are adopted effective the date of this
Agreement. "Seniority" position among members belonging to the same
classification and determined prior to the date of this Agreement shall not
change, regardless of the method of determination.
a. Unless otherwise specified, for purposes of employment practices
and vacation selection in which "seniority" is a consideration,
"seniority" is defined and determined as the period of time of
continuous full time employment within a classification.
b. Determination of seniority date upon promotion or demotion of full
time employees:
L An employee promoted into any higher classification shall
obtain their seniority date based upon their date of
promotion, relative to others in the classification into which
the employee promotes.
ii. An employee who voluntarily or involuntarily demotes into
any lower classification shall retain the oldest seniority date
from any prior full time classification from which they
promoted or to which they are re- classified.
C. Part time employees have no seniority rights, and any full time
employee who resigns their full time position and accepts a part
time appointment shall forfeit any seniority, even upon re-
appointment to a full time position.
d. Nothing in this definition is intended to affect any other employment
right or consideration that may be based upon total years of
service, initial appointment date, or any other date of hire or change
in employment status.
39 NSPA MOU 2014 -2017
Exhibit A
e. In the event there is a conflict between members of a classification
hired on the same day, seniority position shall be determined by
order of hire based upon issuance of Employee ID numbers.
For the class of police officer, seniority is determined based upon
the date of appointment as a police officer, not date of hire as a
police recruit.
2. Nothing contained herein is intended to abridge management's right to
schedule employees to work or deny leave requests that management
feels will interfere with the efficient running of the Police Department or
present a safety hazard to employees or the community.
The Department shall continue its practice of allowing employees to sign
up for vacations, shifts and days off by seniority. The Department shall
have the right to deviate from seniority in shift preference selection as
necessary to meet training needs, train probationers, separate employees,
meet specialized qualification needs, and /or to correct experience
imbalances in accordance with existing practice. In the event
Management wishes to propose substantive changes to the existing
practice of sign -up for vacations, shifts and days off by seniority, it shall
give notice to the Association and meet and confer to seek mutually
agreeable solutions and /or remedies. In the event that a mutually
agreeable solution or remedy is not found, Management may deviate from
the prior seniority criteria to the extent necessary to meet operational or
safety needs.
D. Grievance Procedure
Definition
The term "grievance" means a dispute between NBPA or any member and
the City regarding the interpretation or application of rules or regulations
governing the terms and conditions of employment, any provision of the
Employee Policy Manual, any provision of Resolution No. 2001 -50, or this
MOU.
2. Guidelines
Any NBPA member may file a grievance without fear of retaliation or any
adverse impact on any term or condition of employment.
a. A grievance shall not be filed to establish new rules or regulations,
change prevailing ordinances or resolutions, nor circumvent
40 NBPA MOU 2014 -2017
Exhibit A
existing avenues of relief where appeal procedures have been
prescribed.
b. An employee may be self — represented or represented by one other
person.
C. An employee and any representative shall be given notice of the
time and place of any grievance proceeding, the opportunity to be
present at such proceedings, a copy of any written decision or
communication to the employee concerning the proceedings, and
any document directly relevant to the proceedings.
d. All parties shall engage in good faith efforts to promptly resolve the
grievance in an amicable manner. The time limit specified may be
extended upon mutual agreement expressed in writing.
e. The procedures in this MOU represent the sole and exclusive
method of resolving grievances.
3. Procedure for NBPA Members
Step 1 — The employee shall orally present the grievance to his or
immediate supervisor within fifteen (15) calendar days after the member
knew, or in the exercise of reasonable diligence should have known, the
act or events upon which the grievance is based. The immediate
supervisor shall conduct any appropriate investigation and meet with the
employee no more than fifteen (15) calendar days after presentation of the
grievance. The employee shall be given at least 24 hours notice of the
meeting. The meeting shall be informal, and the employee may have a
representative present. Any employee not satisfied with the decision of
his or her immediate supervisor may proceed to Step 2.
Step 2 — If an employee is dissatisfied with the decision of his or her
immediate supervisor, the employee may proceed to Step 2 by submitting
a written grievance to the supervising captain. Any employee dissatisfied
with the decision of his or her immediate supervisor may submit a written
grievance to the supervising Captain. The written grievance shall be filed
within seven (7) calendar days following receipt of the immediate
supervisor's decision. The written grievance must contain a complete
statement of the matters at issue, the facts upon which the grievance is
based, and the remedy requested by the employee. The supervising
Captain shall meet with the employee and any representative in an effort
to resolve the grievance. The meeting shall be scheduled no more than
fifteen (15) calendar days following receipt of the appeal unless deferred
by the consent of both parties. The Captain shall provide the employee
41 NBPA MOU 2014 -2017
Exhibit A
with a written decision on the appeal within fifteen (15) calendar days after
the meeting.
Step 3 — Appeal to Chief of Police. Any employee dissatisfied with the
decision of the supervising captain may proceed to Step 3 by submitting a
written appeal to the Chief of Police. The written appeal must be filed with
the Chief of Police within seven (7) calendar days following receipt of the
supervising captain's decision. The written appeal must contain a
complete statement of the matters at issue, the facts upon which a
grievance is based, and the remedy requested by the employee. The
Chief of Police shall meet with the employee and any representative in an
effort to resolve the grievance. The meeting shall be informal and the
discussion should focus on the issues raised by the grievance. The
meeting shall be scheduled no more than fifteen (15) calendar days
following receipt of the appeal unless deferred by the consent of both
parties. The Chief of Police shall provide the employee with a written
decision on the appeal within fifteen (15) calendar days after the meeting.
Step 4 — Appeal to City Manager. In the event the employee is
dissatisfied with the decision of the Chief of Police, the employee may
proceed to Step 4 by submitting a written appeal of the decision to the City
Manager. The written appeal must be filed within seven (7) calendar days
following receipt of the Police Chiefs decision. The written appeal shall
contain a complete statement of the matters at issue, the facts upon which
the grievance is based, the decisions of the supervising captain and Chief
of Police, and the remedy requested by the employee. The City Manager
shall meet with the employee and his or her representative in an effort to
resolve the grievance and to receive any additional information the
employee or department may have relative to the matter. The meeting
shall be scheduled no more than fifteen (15) calendar days following
receipt of the appeal unless deferred by the consent of both parties. The
City Manager shall provide the employee with a written decision within
fifteen (15) calendar days after the meeting. The decision of the City
Manager shall be final.
4. Association Grievance
A grievance affecting more than one NBPA member may be filed by
NBPA on behalf of the affected employees with the Chief of Police. The
grievance shall contain a complete statement of the matters at issue, the
facts upon which the grievance is based, and the remedy requested by
NBPA. The Chief of Police shall meet with NBPA representatives within
fifteen (15) calendar days following receipt of the grievance and provide a
written decision on the grievance within fifteen (15) calendar days after the
meeting. In the event NBPA is dissatisfied with the decision of the Chief
42 NBPA MOU 2014 -2017
Exhibit A
of Police, it may appeal to the City Manager by following the procedures
outlined in Step 4 of the procedure applicable to individual employees.
In the event NBPA is dissatisfied with the decision of the City Manager, it
may appeal the decision to the Civil Service Board by filing a written notice
of appeal within fifteen (15) calendar days after receipt of the decision.
E. Pre - Hearing Briefs
Each party is entitled to the other party's pre- hearing brief, if any.
F. Use of Tobacco Products
All employees hired after January 1, 1999, shall not smoke or use any tobacco
products at any time while on, or off duty. Employees shall be required to sign
an agreement consistent with this section. Violation of this agreement will
subject the employee to disciplinary action. Smoking an occasional celebration
cigar (birth of a child, etc.) shall not be considered a violation of this policy.
G. Direct Deposit
All Unit employees shall participate in the City's Direct Deposit Program.
H. Compensation Studv
Should the City conduct a classification /compensation study involving any police
department classifications, it will consult with the Association on all aspects of the
study, including study design, implementation, and findings. Any compensation
changes recommended by the study will be subject to the meet and confer
process.
Contract Negotiations
The parties agree that, if NBPA submits preliminary requests for changes in
wages, fringe benefits and other terms and conditions of employment earlier than
90 days prior to expiration of this MOU (as provided in Section 18. Timetable for
Submission of Requests of the Employer - Employee Relations Resolution), the
parties will begin negotiations promptly, with the objective of reaching agreement
by July 1, 2017.
Signatures are on the next page.
43 NBPA MOU 2014 -2017
Exhibit A
Executed this day of July, 2014.
NEWPORT BEACH POLICE ASSOCIATION
m
Jeff Munsell, President
CITY OF NEWPORT BEACH
By:
ATTEST:
By:
Leilani Brown
City Clerk
APPROVED AS TO FORM:
Aa o Harp, City Atto e
Rush N. Hill, Mayor
44 NBPA MOU 2014 -2017