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HomeMy WebLinkAbout03 - NB Police Association MOU - Attachment to Exhibit A"RECEIVED AFTER AGENDA PRINTED." YYl -4 _> 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