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HomeMy WebLinkAbout06 - MOU with City Employees - Prof & Tech EmployeesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 September 13, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Memoranda of Understanding with City Employees Association, Professional and Technical Employees Association and Employees League, and Salary and Benefit Adjustments for Key and Management Employees RECOMMENDATIONS: 1. Approve the Memoranda of Understanding (MOUs) with the City Employees Association, Professional and Technical Employees Association and Employees League for the two -year period of July 2005 through June 2007. 2. Approve the same salary and benefit adjustments for Key and Management employees. DISCUSSION: Background: The MOUs with our three non - safety employee associations expired on June 30, 2005. The City's negotiating team was unable to conclude negotiations with these groups before the previous agreements expired, due to the time required to complete our more complex negotiations with the safety associations. We have reached tentative agreement with the non - safety associations, pursuant to direction from the City Council, and their members have ratified the agreements. Summary of MOU Provisions: 1. Term: 2 years 2. Salary Adjustments: • 5% July 2005 • 3% July 2006 Memoranda of Understanding with Employee Associations September 13, 2005 Page 2 These three employee groups (as well as the unrepresented Key and Management employees) agreed to a year with no salary adjustments in 2004 -05, when the City had budget concerns due to actions by the State. in recent recruitment efforts, we have found that our salaries are not competitive with other agencies in southern California. 3. Bilingual Pay: Bilingual pay is provided to our Police employees, and will be provided to our seasonal lifeguards if their MOU is approved on this agenda. Many of our office employees (e.g., fiscal clerks and clerical positions) and our field employees (e.g., inspectors) speak Spanish when dealing with customers and contractors. This is a valuable skill to the City and provides a higher level of customer service. The amount of bilingual pay and its applicability will be determined by a City /employee committee that is studying this matter. 4. Flex Leave: Eliminate "2nd tier" When the City was experiencing budget challenges in the 1990's as a result of ERAF I, the employee associations agreed to the reduction of flex leave accrual rates for employees hired after September 1, 1997. The lower level of leave accrual has become a recruitment problem, and has affected morale when two employees with similar experience and tenure have significantly different amounts of time off. This change would equalize flex leave accrual rates, prospectively only; it would not result in adding accrued leave for any period prior to the July 1, 2005 effective date of this MOU. 5. Health Benefit: ■ $724 per month January 2006 • $774 per month January 2007 These contributions reflect an increase of $50 per year for ongoing increases in medical insurance costs, and are consistent with the contributions recommended for Police employees on this agenda. 6. Tuition Reimbursement: Reflecting increases in education costs, and the value to the City of having employees who further their educations, the maximum tuition reimbursement will be increased from $1,250 to $1,400 per fiscal year. 7. Retirement Benefit: The non - safety employee groups have been interested in enhancing their retirement benefit to 2.7% 55 for the past few years, but it has been very expensive due to Memoranda of Understanding with Employee Associations September 13, 2005 Page 3 CalPERS' low investment returns. As PIERS' returns are improving, the employees are hopeful that the cost of a retirement enhancement will be more affordable. _ The MOUs provide that the parties may reopen negotiations to discuss retirement after the City receives its annual actuarial valuation and rate information. Any change must be cost neutral to the City. 8. Certification Pays: A number of certifications held by members of the Employees League (e.g., water or wastewater operator, master automobile technician) entitle the employee to certification pay of $100 to $400 per year. These certification pays will be increased by 10 %. Two new certification pays will be added for Professional and Technical Employees. An employee meeting the qualifications to be City Archaeologist will receive $400 per year, the same amount as a Certified Arborist. Building and Public Works Inspectors will receive pay for a specified list of certifications (e.g., Combination Dwelling Inspector, Electrical, Plumbing or Mechanical Inspector, Reinforced Concrete Special Inspector, Structural Steel and Welding Special Inspector). For these certifications, employees will receive 1% of pay, up to a maximum of 5 %. When inspectors have multiple certifications, they are able to inspect various aspects of a construction project, and the City does not need to send more than one inspector to a job site, which increases our efficiency and customer service. Providing pay for these certifications is also important for employee retention, especially given the extremely high level of construction and resulting competitive environment for workers with these skills. Funding Availability: Staff estimates the cost of implementing these MOUs to be $1,261,428 in Fiscal Year 2005 -06 and $1,039,181 in 2006 -07. With the same provisions applied to Key and Management employees, as the City has traditionally done, the costs would be $1,630,314 and $1,317,713. The funds for 2005 -06 are included in the adopted budget. Submitted by: Sharon Wood Assistant City Manager Attachments: 1. Memorandum of Understanding Between the City of Newport Beach and Newport Beach City Employees Association 2. Memorandum of Understanding Between the City of Newport Beach and Newport Beach Professional and Technical Employees Association 3. Memorandum of Understanding Between the City of Newport Beach and Newport Beach Employees League MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE 1. The Newport Beach City Employees Association ( "NBCEA "), a recognized employee organization, affiliated with UPEC -LIUNA 777, and the City of Newport Beach ( "City "), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBCEA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from July 1, 2005 to June 30, 2007 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBCEA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's /Employee Labor Relations Resolution No. 7173, the City acknowledges that NBCEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer /Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBCEA. l J B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2005. This MOU shall remain in full force and effect until June 30, 2007, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBCEA officers designated by the NBCEA shall collectively be granted 120 hours paid release time maximum, annually, for the conduct of NBCEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBCEA officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes; preparation for collective bargaining activities, and distribution of NBCEA written communication in the work place. D. Employee Data and Access The City shall provide NBCEA a regular list of all unit members including name, department, and job title. NBCEA designated officers shall be entitled to solicit membership from new employees at their work site. This solicitation shall be made from the RELEASE TIME FOR NBCEA OFFICERS total, and shall be scheduled in a manner that is not disruptive to departmental operations. Department heads may determine appropriate K times for new employee contact, but they cannot reasonably deny such contact. 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 within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 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. Permanent Part-Time Employees City permanent part-time employees are recognized to have due process rights, in particular Skelly rights, as provided to regular employees. Membership in NBCEA by part-time employees does not confer on same recognition as a labor organization for purposes of collective bargaining. H. Agency Shop 1. Unit employees, by majority vote, have elected for an Agency Shop provision. 2. The Association shall comply with all statutory and legal requirements regarding agency shop, should it be approved through the election process. This will include all requisite procedures for appeals, record - keeping, establishment of the service fee amount; designating acceptable charities pursuant to Section 3502.5 of the Government Code, etc. 3. Complying with agency shop provisions shall not be a condition of employment. Enforcement shall be the responsibility of the Association; utilizing appropriate civil procedures. The City will cooperate with Association efforts to achieve enforcement. 3 G I 4. The collection of Association dues and /or service fees shall continue to be handled through the payroll deduction process. 5. The Association and UPEC -LIUNA 777 agree to defend, indemnify and hold harmless the City for its action pursuant to this section. SECTION 2. — Compensation A. Salary Effective the pay period beginning June 25, 2005, salaries shall be increased by 5 %. Effective the pay period beginning June 24, 2006, salaries shall be increased by 3 %. B. Normal Overtime 1. Definitions a. Miscellaneous Employee - An employee designated as a miscellaneous member of the Public Employees Retirement System (PERS). b. Normal Overtime — Normal overtime for miscellaneous employees is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. C. Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. d. Incidental Overtime - Incidental overtime is any extension of the basic work shift of less than 1/10 of an hour that is non - recurrent. 4 2. Compensation Normal overtime for all non - exempt employees shall be paid at one - and- one -half (1 -1/2) times the hourly rate of the employee's bi- weekly salary rate. Reporting of overtime on payroll forms will be as prescribed by the Administrative Services Director. Incidental overtime is not compensable. 3. Overtime Pay Calculations During Week Including Holiday(s) For the purpose of calculating overtime, holidays occurring during the regular work week will count as time worked. The floating holiday is excluded from this provision. C. Standby Duty 1. Defined a. To be ready to respond immediately to calls for service; b. To be reachable by telephone; C. To remain within a specified distance from his /her work station; and d. To refrain from activities which might impair the employee's ability to perform his /her assigned duties. 2. Compensation Standby duty shall be compensated at the rate of one (1) hour of overtime compensation for each eight (8) hours of such duty. Standby duty on holidays shall be compensated at the rate of two (2) hours of overtime compensation for each (8) hours of standby duty. Should the employee be required to return to work while on standby status, the provisions pertaining to compensation for call -back pay shall apply for the actual period of time the employee is in a work status. 5 D. Call -Back Dutv 1. Defined Call -back duty requires the employee to respond to a request to return to his /her work station after the normal work shift has been completed and the employee has left his /her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call -back duty. 2. Compensation All personnel eligible for overtime pay shall be guaranteed two (2) hours pay, or pay for one - and - one -half (1 -1/2) times the number of hours worked, whichever is greater. Reporting of overtime on payroll forms will be prescribed by the Administrative Services Director. E. Accumulation of Compensatory Time Off City employees represented by the NBCEA and classified as non - exempt may receive compensatory time off, in lieu of cash, as compensation for overtime hours worked. Compensatory time shall be calculated at the rate of one and one half hours for each hour of overtime worked beyond the 40 hour limit of the work week. Compensatory time is to be granted only when the employer and employee agree that the application of "comp time" is a desirable substitute for the payment of cash for overtime. Call -back time may be converted to comp time with supervisor approval. Employees may accumulate up to eighty (80) hours of Compensatory Time. Any hours in excess of eighty (80) will be paid off. Accumulation in excess of the eighty (80) hours may be approved at the discretion of the Department Director. F. Night Shift Differential Unit members shall receive a night shift differential of $1.00 per hour; payable for each hour worked after 5:00 pm. G. Incentive Shift for Library Members For CEA members in the Library Services Department, the Sunday work shift will be considered an "incentive" shift. Unit members working on Sunday who work five hours but less than eight will receive eight hours :e ID incentive pay at the regular hourly rate. This article is not to be construed as to impact on other City rules. H. Court Time Employees who are required to appear in Court during their off -duty hours in connection with City business shall receive overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. I. Acting Pav NBCEA employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hours requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41St hour worked in the higher classification. SECTION 3. — Leaves A. Flex Leave Effective the pay period beginning June 25, 2005, members hired on or after July 1, 1996 shall accrue (prospectively) flex leave at the same rate as members hired prior to July 1, 1996. Members shall accrue Flex leave at the following rates: Years of Continuous . Accrual per Annual Service Pay Period /Hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 During the first six months of employment, new permanent full -time employees shall not accrue paid leave. At the completion of six months of employment, six (6) months of accrued flex leave will be placed in the 7 employees account. Employees who are assigned to an 88 hour schedule per pay period will accrue time in proportionate amounts. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi- weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Effective January 1, 1999, employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. s 11 B. Vacation Leave This section applies only to those Regular full time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for Accrual /Full -Time Employees Employees entitled to vacation leave- with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Continuous Accrual per Service pay period /hrs 0 but less than 5 3.38 5 but less than 9 3.99 9 but less than 12 4.61 12 but less than 16 5.22 16 but less than 20 5.84 20 but less than 25 6.46 25 and over 7.07 2. Limit on Accumulation Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two -year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, 13 IMI the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. Sick Leave This section applies only to those Regular full time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for Accrual /Full -time Emplovees Employees entitled to sick leave- with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Normal Work Week 40 hours Service Time Monthly Accrual 0 -1 year 4 hours 1 -2 years 5 hours 2 -3 years 6 hours 3 -4 years 7 hours 4+ 8 hours 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his /her initial probation period is eligible to use his /her accumulated sick leave provided that if for any reason his /her City employment is terminated prior to the completion of such probationary period, his /her final paycheck shall be reduced by the value of the sick leave he /she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. [G. q 9 b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2A of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 50 months of accrued sick leave, and who have used six or less days of sick leave during that calendar year will be permitted (only once per year) to convert up to six (6) days of sick leave to either salary or paid vacation at the value of 50% (maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. This is true for only those employees who are under the old Sick Leave Policy. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holidays, such excepted personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1st Monday in Sept. November 11 4th Thurs. in November Last '' /z of working day December 25 Last '' /z of working day January 1 3`d Monday in February Last Monday in May 3`d Monday in January (1) I5 Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. 1. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized leave (e.g.) approved vacation or sick leave that has been reviewed and approved by the Department Director. 2. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, which allows the successful completion of their probationary period. E. Bereavement Leave The necessary absence from duty by an employee having a regular or probationary appointment, because of the death or terminal illness in his /her Immediate Family. For the purposes of this section, Immediate Family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law, sister -in -law, brother -in -law, employee's spouse's child and grandparents. F. Leave Sellback Twice annually, employees shall have the option of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. SECTION 4. — Fringe Benefits A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, 12 6 appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee group with information about health insurancelprograms 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. The City contribution toward the Cafeteria Plan shall be $674. In addition, the City shall contribute the minimum CalPERS 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 City Employees 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 the pay period beginning December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724 (plus the minimum CalPERS participating employer's contribution). Effective the pay period beginning December 23, 2006, the City's contribution towards the Cafeteria Plan will increase to $774 (plus the minimum CalPERS participating employers's contribution). NBCEA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. 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 BIC. 13 1r 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's plan offerings as agreed upon by the BIC. Additional Insurance Programs 1 FA 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. Disability Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period Short-term (STD) and Long -term (LTD) all regular full time employees with the 66.67% gross weekly wages $10,000 /month $50 30 Calendar Days 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. 14 i !; 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. Retirement Benefit 1. Existing Benefits The City contracts with PERS to provide retirement benefits for its employees. The retirement formula is the 2% @ 55, calculated on the basis of the best/highest year. The City pays both the employee and the employer contribution, but the City reports the value of the Employer Paid Member Contribution (EPMC), so the employees will have the benefit of the EPMC in their retirement formula calculations. In addition, the City contracts for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit and 2% Cost of Living Adjustment. As soon as possible the City will amend its PERS contract to provide the pre- retirement option settlement 2 death benefit (Section 21548). 2. Reopener The parties agree to reopen negotiations on a possible retirement plan enhancement after receipt of retirement rates for the period beginning July 2006. Any negotiated change must be cost neutral to the City. E. LIUNA Supplemental Pension The City shall contribute, on behalf of each unit member, one and one half percent (1.5 %) of base salary into the LIUNA Supplemental Pension Fund. The City's sole obligation is to forward the agreed upon amount to the fund. 15 The City is not responsible for, nor does it make any representation regarding the payment of benefits to unit members. The Association and UPEC -LIUNA 777 agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. F. Retiree Health Benefits Pram 1. Eligibility The City provides retiree health benefits for employees who retire from the City with seven or more continuous years of service and become PERS annuitants. Retirees must be enrolled in a City- sponsored medical plan at the time of retirement to be eligible for the City's contribution. Retirees are eligible for the City's contribution towards coverage for themselves and one dependent (2 -party coverage). Enrollment of additional dependents is allowed and the cost to cover more than one dependent is the sole responsibility of the retiree. In the event of the death of the retiree, only a dependent spouse will be allowed to continue coverage. Cancellation of coverage by the retiree at any time, including cancellation due to failure to pay the required monthly premiums, will render the retiree and dependents ineligible for any and all portions of the City's Retiree Health Benefits Program from the date of cancellation forward. This eligibility requirement does not preclude future enrollment in the CaIPERS Health Benefits Program, but discontinues the City's contribution. 2. Enrollment If the retiree and their dependent(s) meet all of the City's program and insurance plan eligibility requirements, they may continue, upon retirement, their medical, dental and vision coverage or any combination thereof. Re- enrollment or new enrollment of a retiree or dependent(s) is not allowed under the City's Retiree Health Benefits Program once cancellation of coverage by a retiree has occurred, including cancellation 'due to failure to pay the required monthly premiums or prior declined enrollment in coverage. This provision does not apply 16 i to future enrollment in the CalPERS Health Benefits Program, but does discontinue the City's contribution. 3. Administration It is the responsibility of the retiree to notify the City of Newport Beach Human Resources Department at (949) 644 -3300 or in writing to P.O. Box 1768, Newport Beach, CA 92658 -8915, of any change of address or other contact information, any change in a PERS medical plan, any change in Medicare eligibility or status for the retiree or their dependent, and /or any change consistent with a qualified status change (e.g., marriage, divorce, birth or adoption, death of a dependent, change in spouse's employment status that affects the spouse's benefits eligibility under another employer's plan, etc.). Notification of a qualified status change must be done within 30 days of the status change. 4. Funding of the Retiree Health Benefits Program a. The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach City Employees Association. The City and active employees shall be responsible for seventy -five percent (50% City and 25% actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. For NBCEA unit employees, the per month employee deduction for retiree medical insurance shall be $44.07 per month. Subsequent contribution levels shall be set as needed in the month of July per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBCEA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBCEA prior to any increases in employee deduction levels. All monthly premiums must be paid in full upon receipt of the invoice. Failure to pay monthly premiums within 60 days of invoice date will result in the cancellation of the retiree and his /her dependent(s). 17 b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in (a) above, each NBCEA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBCEA mutually agree to end the funding on behalf of NBCEA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under (a) above. In the event the retiree medical insurance program described herein is discontinued, NBCEA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBCEA on the distribution of said funds back to active (not retired /full -time) City employees in the NBCEA unit. The City will provide NBCEA with an annual report certified by the City Administrative Services Director describing the balance, interest earnings, and any expenditures of the trust account described herein. The City and NBCEA agree to continue negotiations on revisions to the retiree medical insurance program. The parties agree to conclude negotations on the revisions to the retiree medical program no later than September 30, 2005. G. Tuition Reimbursement NBCEA 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. Maximum tuition reimbursement for employees shall be $1,400.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. 18 All claims for tuition reimbursement require the approval of the Human Resources Director. SECTION 5. —Miscellaneous A. Reductions in Force /Layoffs The provisions of this . section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS 1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination of employment. 2. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in the current Classification or any Classification within the Series, subject to the following: a. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; b. Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification within a Series shall be ranked according to pay (lowest ranking, lowest pay)- 4. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher 19 ranking classification (s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those classifications following a meet and consult process which constitute a Series. 5. "Bumping Rights ", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Temporary and probationary employees within any classification shall, in that order, be laid off before permanent employees. 2. Employees within a classification shall be laid off in inverse order of seniority; 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his /her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. NOTICE Employees subject to lay -off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave 20 (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. REEMPLOYMENT Permanent and probationary employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. The re- employment list shall expire in 18 months. In the event a vacant position occurs in the classification which the employee occupied at the time of layoff, or a lower ranking classification within a series, the employee at the top of the Department re- employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Human Resources Director. SEVERANCE If an employee is laid off from their job with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach up to ten (10) weeks of pay. B. Transfer and Reassignments The City acknowledges that before arriving at a final decision involving the transfer or reassignment of work schedules of those employees represented by the NBCEA, the seniority and preference of the employee is taken into consideration. C. Promotional Preference Where no less than 2 unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified. Position vacancy announcements for all available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. D. 9/80 (or 4/10) Scheduling Plan The City agrees to maintain flex - scheduling where it is currently operating successfully and additionally to put in place a 9/80 (or 4/10) schedule, on a 21 i� J test basis (excluding the Library) for the balance of the life of the MOU. This test will be conducted at the discretion of the Department Director. The program will have proven itself to be successful if it costs the same or less than the present 5/40 program, and if the service levels for the 9/80 (or 4/10) schedules are the same or better as they are on the present 5/40 program. The program will be evaluated individually by work group, and should a problem involving service reductions or increases in cost materialize, the Department Director will meet with the work group to resolve the problem. If the Department Director and the work group disagree on the solution, the City Manager will consider both sides of the issue and resolve the dispute. Final evaluation of the success /failure of the 9/80 (or 4/10) schedule test will be conducted by the Department Director, and his /her determination shall be final. E. Labor Management Committee Committees shall meet quarterly on an annual schedule; names of participating unit members shall be announced to management no less than 5 working days before the scheduled meeting; cancellation for cause shall be rendered by the canceling party no less than 48 hours prior to the scheduled meeting; canceled meetings shall be rescheduled to take place within 5 working days of the canceled meeting; committees shall be departmental; they may be combined in the interests of efficiency with other such committees; City participants shall include appropriate department or division heads outside the unit; the purpose of the committees shall be to resolve conflict and exchange information; a unit staff person may attend meetings; meetings shall be scheduled to last no less than one hour; grievances in process shall not be subject to resolution in meetings; matters properly dealt with in negotiations may be discussed but no agreements shall be effected on same in committee. Meetings shall be on work time. The Committees shall include a Library Committee with two unit members participating; and three additional Committees, one of which shall meet in each quarter of the year on a continuing rotational basis. 1. Building /Planning /Engineering: Minimum representation shall include one NBCEA member and one management representative. 2. Finance: Minimum representation shall include two NBCEA members and two management representatives. 3. All other City departments: Minimum representation shall include three NBCEA members and three management representatives. 22 The City and NBCEA agree that initial committee establishment will require good faith effort to effect the spirit of this agreement. F. Discipline - Notice of Intent Employees who are to be the subject of substantial punitive discipline for any misconduct or negligence shall be entitled to prior written notice of intent to discipline at least seven (7) calendar days prior to the imposition of the actual penalty. This written notice shall contain a description of the event or conduct which justifies the imposition of discipline. The notice shall also include the specific form of a discipline intended, and the employee shall be offered the opportunity to a hearing before their Department Director prior to the imposition of the penalty. This procedure will only be applied in cases of substantial punitive discipline. It shall be understood that a disciplinary penalty equal to an unpaid suspension of three (3) days or greater shall be substantial. All other discipline resulting in less than a three (3) day suspension will be considered non - substantial and will not be subject to the aforementioned procedure. This understanding is not intended to in any way reduce the rights of employees to due process. Employees who have become the subject to discipline and who believe that the penalty is not justified shall have access to the grievance procedure as established in the Employee - Employer Resolution #7173. G. Grievance Procedure Step 1: A grievance may be filed by any employee on his /her own behalf, or jointly by a group of employees, or by a Recognized Employee Organization. Within ten (10) calendar days of the event giving rise to a grievance, the grievant shall present the grievance in writing to the immediate supervisor. Grievances not presented within the time period shall be considered resolved. The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2. Step 2: If the grievance is not resolved in Step 1, the grievant may, within fourteen (14) calendar days from his /her receipt of the supervisor's answer, 23 forward the grievance to the department head for consideration. Answer to the grievance shall be made in writing by the department head, after conferring with the grievant, within fourteen (14) calendar days from receipt of the grievance. Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be made by the grievant within ten (10) calendar days from the receipt of the department heads answer, through the representative of his/her Recognized Employee Organization who may request a meeting with the City Representative to resolve the grievance. Following the meeting, answer shall be made by the City Representative, in writing, to the representative within twenty -one (21) calendar days. Step 4: Mediation - If the grievance is not resolved after Step 3, as an alternative to proceeding directly to Step 5, the grievance may be submitted to mediation. A request for mediation may be presented in writing to the Human Resource Director within seven (7) calendar days from the date a decision was rendered at Step 3. As soon as practicable thereafter, or as otherwise agreed to by the parties, a mediator shall hear the grievance. A request for mediation will automatically suspend the normal processing of a grievance until the mediation process is completed. The mediation process shall be optional, and any opinion expressed by the mediator shall be informal and shall be considered advisory. Step 5: Within 20 calendar days of receipt of a grievance denial at step three, the grievant may file the grievance, in writing, with the Civil Service Board. At the next regularly scheduled meeting of the Civil Service Board, the grievance shall be heard, using Civil Service Board De Novo procedures. Within 20 calendar days of the hearing, the Civil Service Board shall issue its findings and conclusions to the parties at interest. Within 7 calendar days of the issuance of Civil Service Board findings and conclusions, the City Manager shall affirm, modify or revoke the Boards decision. The City Managers decision shall be considered exhaustive of administrative remedies. Performance evaluation ratings and written reprimands are excluded from this Step Four grievance process, and shall be dealt with as currently provided in the Discipline Code. 24 3'6 H. Probation 1. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. 2. Failure of Probation (a) New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in c, below. (b) Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in c, below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. 2s -i YI (c) Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the City, in violation of Personnel Policy Section 303 Non - Discrimination may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. Salary on Reclassification The City will amend its Employee Policy Manual to provide for a minimum salary increase of five (5 %) percent upon reclassification (not to exceed the maximum of the new salary range). J. Safety Shoes A Safety shoe allowance in the amount of $125.00 shall be provided to each Print Shop and Mailroom employee on an annual basis. The present policy and practices regarding the supply and maintenance of safety shoes shall remain in place except for the following changes as they apply to the accelerated wear provisions. If the soles of the safety shoes wear out within a year, the employee should present the shoes to his /her supervisor. If the supervisor agrees that the soles are worn out, he will authorize the employee to purchase a new pair of shoes at City expense. If the supervisor judges that the uppers are in good condition, he will authorize the employee to have the shoes resoled at City expense. K. Service Awards For the purpose of determining service awards, if an employee has been employed by the City on more than one occasion, non - consecutive time will be considered as part of total service. Prior to system implementations, an employee is required to individually notify the awards committee of all of the service time. L. Employee Handbook There will be a consolidation of documents to be given to each employee. This consolidation will be comprised of Employee Policy Manual, related Departmental Rules and Regulations; Employee /Employer Resolutions and a copy of Memorandum of Understanding. More information may be included. 26 ;. r1 J �' M. Direct Deposit All employees shall participate in the payroll direct deposit system. N. Deferred Compensation The City agrees to, through a joint City - Employee Committee, explore the possible addition of additional deferred compensation providers during the term of this agreement. O. Bi- Lingual Committee The City and Association agree to continue the joint committee to study the issue of bi- lingual pay. P. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that .should provisions of this MOU relating to any schedule adjustment be declared invalid, City agrees to provide alternative benefits agreeable to NBEL, to employees, which will cause such employees to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this day of 2005 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION By: Teresa Craig, President 0 Paul Bechely, Negotiation Team 27 CITY OF NEWPORT BEACH LON John Heffernan, Mayor ATTEST: In LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney zs J a- EXHIBIT A CITY EMPLOYEES ASSOCIATION Accountant Accountant II Administrative Assistant Buyer Cultural Arts /Grant Coordinator Department Assistant Fiscal Clerk Senior Fiscal Clerk Fiscal Specialist Graphics & Printing Specialist Inventory Analyst Librarian I Librarian II Librarian III Librarian IV Library Clerk I Library Clerk II Senior Library Clerk License Inspector MIS Technician Office Assistant Printing Services Supervisor Public Works Specialist Recreation Coordinator Recreation Manager Senior Recreation Leader II Stock Clerk K9 5� MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE 1. The Newport Beach Professional and Technical Employees Association ( "NBPTEA"), a recognized employee organization, affiliated with UPEC -LIUNA 777, and the City of Newport Beach ( "City "), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBPTEA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment to apply to all affected employees for the period of July 1, 2005 through June 30, 2007. Said employees desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the city Council of the City of Newport Beach for approval. 3. This MOU, upon approval by NBPTEA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers - Milias -Brown Act of the State of California and the provisions of the Employer's /Employee Labor Relations Resolution No. 7173, the City acknowledges that NBPTEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer /Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBPTEA. 1 35 B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2005. This MOU shall remain in full force and effect until June 30, 2007, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBPTEA officers designated by the NBPTEA shall collectively be granted 120 hours paid release time maximum, annually, for the conduct of NBPTEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBPTEA officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes; preparation for collective bargaining activities, and distribution of NBPTEA written communication in the work place. 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 JW 2. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. 3. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non — exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 7173. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of City Departments; (b) the establishment of standards of service; (c) to assign work to employees as deemed appropriate; (d) the direction and supervision of its employees; (e) the discipline of employees; (f) the power to relieve employees from duty for lack of work or other legitimate reasons; (g) to maintain the efficiency of operations; (h) to determine the methods, means and personnel by which operations are to be conducted; (i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; (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. 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 within the 3 scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 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. Employee Data and Access The NBPTEA will be provided on a regular basis with a listing of all unit members. The listing will include name, department, and job title. Information concerning the NBPTEA prepared by the NBPTEA will be provided to new employees at the time of orientation. NBPTEA officials shall be entitled to solicit membership from employees who are not members. SECTION 2. — Compensation A. Salary Effective the pay period beginning June 25, 2005, salaries shall be increased by 5 %. Effective the pay period beginning June 24, 2006, salaries shall be increased by 3 %. B. Normal Overtime 1. Definitions (a) Miscellaneous Employee - An employee designated as a miscellaneous member of the Public Employees Retirement System (PERS). (b) Overtime - Normal overtime is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by a the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. (c) Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. (d) Incidental Overtime - Incidental overtime is any extension of the basic work shift of less than 1/10 of an hour that is non - recurrent. 2. Compensation Normal overtime for all non - exempt employees shall be paid at one - and - one -half (1 -1/2) times the hourly rate of the employee's bi- weekly salary rate. Reporting of overtime on payroll forms will be as prescribed by the Administrative Services Director. Incidental overtime is not compensable. 3. Overtime Pay Calculations During Week Including Holiday(s) For the purpose of calculating overtime, holidays occurring during the regular work week will count as time worked. The floating holiday is excluded from this provision. C. Call -Back Duty 1. Defined Call back duty requires the employee to respond to a request to return to his /her work station after the normal work shift has been completed and the employee has left his /her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call -back duty. 2. Compensation All personnel eligible for overtime pay shall be guaranteed two (2) hours pay, or pay for one - and - one -half (1 -1/2) times the number of hours worked, whichever is greater. Reporting of overtime on payroll forms will be prescribed by the Administrative Services Director. 5 �n D. Accumulation of Compensatory Time Off City employees represented by the NBPTEA and classified as non- exempt may receive compensatory time off, in lieu of cash, as compensation for overtime hours worked. Compensatory time shall be calculated at the rate of one and one half hours for each hour of overtime worked beyond the 40 hour limit of the work week. Compensatory time is to be granted only when the employer and employee agree that the application of "comp time" is a desirable substitute for the payment of cash for overtime. Call -back time may be converted to comp time with supervisor approval. Employees may accumulate up to eighty (80) hours of Compensatory Time. Any hours in excess of eighty (80) will be paid off. Accumulation in excess of the eighty (80) hours may be approved at the discretion of Department Director. E. Night Shift Differential The City agrees to pay $1.00 per hour night shift differential for Employees working a regularly scheduled work shift of which four or more hours are worked between the hours of 5:00 p.m. and 5:00 a.m. Overtime worked as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked. F. Associate Engineer and Junior Civil Engineer Employees in the class of Associate Engineer and Junior Civil Engineer who are registered by the State of California shall receive an additional compensation of five (5 %) percent of base pay per month. G. Urban Forester Employees in the class of Urban Forester who maintain an arborist and applicator certificate shall receive additional compensation in the amount of Four Hundred ($400) Dollars annually, to be paid in January of each year. H. City Archaeologist Employees who meet the City's minimum qualifications for City Archaeologist shall receive additional compensation in the amount of Four 3 Hundred ($400) Dollars annually, to be paid in July of each year. Minimum qualifications for this pay are as follows: (a) Bachelor's or graduate degree in anthropology, archaeology, history or a related field, with specialized training in archaeology; (b) Three years of field experience on archaeology sites and /or field related work in archaeology; and (c) Listing in the Certified Archaeologists Register maintained by Orange County or Registered Professional Archaeologist listing by RPA. Certificate Pay Individuals in the classifications of Building Inspector (I,II, Senior and Principal) and Residential Building Records Inspector shall be eligible for Certificate Pay of 1% per certification, to a maxium of 5 %. The following ICBO certifications shall be eligible, if kept current by the employee: Certified Building Inspector Combination Dwelling Inspector Certified Electrical Inspector Certified Plumbing Inspector Certified Mechanical Inspector Certified Plans Examiner Certified Accessibility /Usability Specialist Individuals in the classification of Public Works Inspector and Senior Public works Inspector shall be eligible for Certificate Pay of 1% per certification, to a maximum of 5 %. The following ICBO and other certifications shall be eligible, if kept current by the employee: Certified Building Inspector Certified Electrical Inspector Certified Plumbing Inspector Certified Mechanical Inspector Reinforced Concrete Special Inspector Structural Masonry Special Inspector Prestressed Concrete Special Inspector Structural Steel & Welding Special Inspector Certificate of Construction Inspection for Traffic Signals and Highway Lighting PAD Certified Open Water Scuba Diver ��I J. Court Time Employees who are required to appear in Court during their off -duty hours in connection with City business shall received overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. K. Acting Pay NBPTEA employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hours requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41St hour worked in the higher classification. SECTION 3 - Leaves A. Flex Leave Effective the pay period beginning June 25, 2005, members hired on or after July 1, 1996 shall accrue (prospectively) flex leave at the same rate as members hired prior to July 1, 1996, Members shall accrue Flex leave at the following rates: Years of Continuous Accrual per Annual Service Pay Period /Hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 During the first six months of employment, new permanent full -time employees shall not accrue paid leave. At the completion of six months of employment, six (6) months of accrued flex leave will be placed in the employees account. Employees who are assigned to an 88 hour schedule per pay period will accrue time in proportionate amounts. 9 Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi- weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Effective January 1, 1999, employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year to receive such excess pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. B. Vacation Leave This section applies only to those Regular full time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for Accrual /Full -Time Employees Employees entitled to vacation leave- with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Continuous Accrual per Pay Service Period /Hrs 0 but less than 5 3.38 5 but less than 9 3.99 9 but less than 12 4.61 12 but less than 16 5.22 16 but less than 20 5.84 20 but less than 25 6.46 25 and over 7.07 2. Limit on Accumulation Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two -year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial twelve (12) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. 10 C. Sick Leave This section applies only to those Regular full time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for Accrual /Full -time Employees Employees entitled to sick leave with pay shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: Service Time Monthly Accrual Accrual 0 -1 year 4 hours 1 -2 years 5 hours 2 -3 years 6 hours 3 -4 years 7 hours 4+ 8 hours 2. Method of Use (a) General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his /her initial probation period is eligible to use his /her accumulated sick leave provided that if for any reason his /her City employment is terminated prior to the completion of such probationary period, his /her final paycheck shall be reduced by the value of the sick leave he /she has taken. After completion of the initial twelve (12) months of probation period, entry-level employees shall not have used sick leave reduced from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. (b) Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the 11 115 L] purposes defined in Section 11.2 of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 50 months of accrued sick leave, and who have used six or less days of sick leave during that calendar year will be permitted (only once per year) to convert up to six (6) days of sick leave to either salary or paid vacation at the value of 50% (maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holiday, such excepted personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January (1) 1. Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday). 12 L16 2. In addition, for all employees who have completed one year of service, an additional 8 hours of floating holiday will be added to his /her vacation or flex leave accumulated total on the first pay period in July each year. Those who have completed less than one year of service receive 0 hours of floating holiday. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, which allows the successful completion of their probationary period. E. Bereavement Leave 1. Defined The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his /her Immediate Family. For the purposes of this section, Immediate Family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law, brother -in -law, sister - in -law, employee's spouse's child and grandparents. 2. Maximum Allowed Such leave shall be limited to five (5) working days per incident. F. Leave Sellback Twice annually, employees shall have the option of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. 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 13 r( 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. The City contribution toward the Cafeteria Plan shall be $674. In addition, the City shall contribute the minimum CalPERS 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 Professional and Technical Employees 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 the pay period beginning December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724 (plus the minimum CalPERS participating employer's contribution). Effective the pay period beginning December 23, 2006, , the City's contribution towards the Cafeteria Plan will increase to $774 (plus the minimum CalPERS participating employer's contribution). NBPTEA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. 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. 14 a 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. Additional Insurance Programs 1 FA 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. Disability Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period Short-term (STD) and Long -term (LTD) all regular full time employees with the 66.67% gross weekly wages $10,000 /month $50 30 Calendar Days 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. 15 Simultaneously, the City increased base wages by one (1.0 %) percent. 3. Life Insurance The City shall provide life insurance for all regular full -time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City - paid life insurance is reduced by 50% of the pre -70 amount. This amount remains in effect until the employee 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 1. Benefit The City contracts with PERS to provide retirement benefits for its employees. The retirement formula is the 2% @ 55, calculated on the basis of the best/highest year. The City pays both the employee and the employer contribution, but the City reports the value of the Employer Paid Member Contribution (EPMC), so the employees will have the benefit of the EPMC in their retirement formula calculations. In addition, the City contracts for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment, and the pre- retirement option settlement 2 death benefit (Section 21548). 2. Re— opener The parties agree to reopen negotiations on possible retirement plan for unit employees after receipt of retirement rates for the period beginning July 2006. Any negotiated change must be cost neutral to the City during the two -year term of this agreement E. LIUNA Supplemental Pension The City shall contribute, on behalf of each unit member, one and one half percent (1.5 %) of base salary into the LIUNA Supplemental Pension Fund. The City's sole obligation is to forward the agreed upon amount to 16 the fund. The City is not responsible for, nor does it make any representation regarding, the payment of benefits to unit members. The Association and UPEC -LIUNA 777 agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. F. Retiree Health Benefits Program 1. Eli ibilit The City provides retiree health benefits for employees who retire from the City with seven or more continuous years of service and become PERS annuitants. Retirees must be enrolled in a City - sponsored medical plan at the time of retirement to be eligible for the City's contribution. Retirees are eligible for the City's contribution towards coverage for themselves and one dependent (2 -party coverage). Enrollment of additional dependents is allowed and the cost to cover more than one dependent is the sole responsibility of the retiree. In the event of the death of the retiree, only a dependent spouse will be allowed to continue coverage. Cancellation of coverage by the retiree at any time, including cancellation due to failure to pay the required monthly premiums, will render the retiree and dependents ineligible for any and all portions of the City's Retiree Health Benefits Program from the date of cancellation forward. This eligibility requirement does not preclude future enrollment in the CalPERS Health Benefits Program, but discontinues the City's contribution. 2. Enrollment If the retiree and their dependent(s) meet all of the City's program and insurance plan eligibility requirements, they may continue, upon retirement, their medical, dental and vision coverage or any combination thereof. Re- enrollment or new enrollment of a retiree or dependent(s) is not allowed under the City's Retiree Health Benefits Program once cancellation of coverage by a retiree has occurred including cancellation due to failure to pay the required monthly premiums or prior declined enrollment in coverage. This provision does not 17 apply to future enrollment in the CalPERS Health Benefits Program, but does discontinue the City's contribution. 3. Administration It is the responsibility of the retiree to notify the City of Newport Beach Human Resources Department at (949) 644 -3300 or in writing to P.O. Box 1768, Newport Beach, CA 92658 -8915, of any change of address or other contact information, any change in a PERS medical plan, any change in Medicare eligibility or status for the retiree or their dependent, and /or any change consistent with a qualified status change (e.g., marriage, divorce, birth or adoption, death of a dependent, change in spouse's employement status that affects the spouse's benefits eligibility under another employer's plan, etc.). Notification of a qualified status change must be done within 30 days of the status change. 4. Fundinq of the Retiree Health Benefits Program (a) The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Professional Technical Employees Association. The City and active employees shall be responsible for 75% (50% City and 25% actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. For NBPTEA unit employees, the per month employee deduction for retiree medical insurance shall be $44.07 per month. Subsequent contribution levels shall be set as needed in the month of July per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBPTEA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBPTEA prior to any increases in employee deduction levels. All monthly premiums must be paid in full upon receipt of the invoice. Failure to pay monthly premiums within 60 days of invoice date will result in the cancellation of the retiree and his /her dependent(s). m (b) In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in (a) above; each NBPTEA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBPTEA mutually agree to end the funding on behalf of NBPTEA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under (a) above. In the event the retiree medical insurance program described herein is discontinued, NBPTEA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBPTEA on the distribution of said funds back to active (not retired /full -time) City employees in the NBPTEA unit. The City will provide NBPTEA with an annual report certified by the City Administrative Services Director describing the balance, interest earnings, and any expenditures of the trust account described herein. The City and NBPTEA agree to continue negotiations on revisions to the retiree medical insurance program. The parties agree to conclude negotations on the revision to the retiree medical program later than September 30, 2005. G. Tuition Reimbursement NBPTEA 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. Maximum tuition reimbursement for employees shall be $1,400.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require approval. 19 SECTION 5. - Miscellaneous/Working Conditions A. Reductions in Force /Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS 1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination or employment. 2. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in the current Classification or any Classification within the Series, subject to the following: (a) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (b) Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification within a Series shall be ranked according to pay (lowest ranking, lowest pay). 4. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher ranking classification (s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager 20 ,U shall determine those classifications following a meet and consult process which constitute a Series. 5. "Bumping Rights ", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Temporary and probationary employees within any classification shall, in that order, be laid off before permanent employees. 2. Employees within a classification shall be laid off in inverse order of seniority; 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his /her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. NOTICE Employees subject to lay -off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 21 REEMPLOYMENT Permanent and probationary employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. The re- employment list shall expire in 18 months. In the event a vacant position occurs in the classification which the employee occupied at the time of layoff, or a lower ranking classification within a series, the employee at the top of the Department re- employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Personnel Director. SEVERANCE If an employee is laid off from their job with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach. B. Promotional Preference Where no less than 2 unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified, Position vacancy announcements for all available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. C. 9/80 Scheduling Plan The City agrees to maintain flex - scheduling where it is currently operating successfully. D. Labor Management Committee The City will work with NBPTEA leadership, through its managers, to establish labor- management committees departmentally whenever it is mutually determined it is appropriate to do so. 22 E. Grievance Procedure Any employee or group of employees may file a grievance regarding the interpretation or application of the "Employer- Employee Relations Resolution" (RESOLUTION NO. 7173), this MOU, or of rules and regulations, adversely affecting an employee's wages, hours, or conditions of employment. A grievance shall be filed according to the following procedure: Step 1: A grievance may be filed by any employee on his /her own behalf, or jointly by a group of employees, or by a Recognized Employee Organization. Within ten (10) calendar days of the event giving rise to a grievance, the grievant shall present the grievance in writing to the immediate supervisor. Grievances not presented within the time period shall be considered resolved. The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2. Step 2: If the grievance is not resolved in Step 1, the grievant may, within fourteen (14) calendar days from his /her receipt of the supervisor's answer, forward the grievance to the department head for consideration. Answer to the grievance shall be made in writing by the department head, after conferring with the grievant, within fourteen (14) calendar days from receipt of the grievance. Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be made by the grievant within ten (10) calendar days from the receipt of the department heads answer, through the representative of his /her Recognized Employee Organization who may request a meeting with the City Representative to resolve the grievance. Following the meeting, answer shall be made by the City Representative, in writing, to the representative within twenty -one (21) calendar days. Step 4: Mediation - If the grievance is not resolved after Step 3, as an alternative to proceeding directly to Step 5, the grievance may be submitted to mediation. A request for mediation may be presented in writing to the Human Resource Manager within seven (7) calendar days from the date a decision was rendered at Step 3. As soon as practicable thereafter, or as otherwise agreed to by the parties, a mediator shall hear 23 _j the grievance. A request for mediation will automatically suspend the normal processing of a grievance until the mediation process is completed. The mediation process shall be optional, and any opinion expressed by the mediator shall be informal and shall be considered advisory. Step 5: If the grievance is not resolved in Step 3 (or Step 4), appeal to Step 5 may be made by the grievant within 20 calendar days of receipt of the City Representative's answer. The grievant may, through the representative of his /her Recognized Employee Organization request, in writing, a hearing before the Civil Service Board. At the next regularly scheduled meeting of the Civil Service Board the grievance shall be heard, using Civil Service Board DeNovo procedures. Within 20 calendar days of the hearing the Civil Service Board shall issue its findings and conclusions to the parties at interest. Within 7 calendar days of the issuance of Civil Service Board findings and conclusions the City Manager shall affirm, modify or revoke the Board's decision. The City Manager's decision shall be considered exhaustive of administrative remedies. F. Probation 1. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. 2. Failure of Probation (a) New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in c, below. 24 (b) Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in c, below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. (c) Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the City, in violation of Personnel Policy Section 303 Non - Discrimination may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. G. Salary on Reclassification The City will amend its Employee Policy Manual to provide for a minimum salary increase of five (5 %) percent upon reclassification (not to exceed the maximum of the new salary range). H. Emplovee Handbook There will be a consolidation of documents to be given to each employee. This consolidation will be comprised of the Employee Policy Manual, 25 related Departmental Rules and Regulations; Employee /Employer Resolutions and a copy of this Memorandum of Understanding. More information may be included. I. Direct Deoosit All employees shall participate in the payroll direct deposit system. J. Bi- Lingual Committee The City and Association agree to continue the joint committee to study the issue of bi- lingual pay. K. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or.by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should provisions of this MOU relating to any schedule adjustment be declared invalid, City agrees to provide alternative benefits agreeable to NBPTEA, to employees, which will cause such employees to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this day of NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION 0 Mike Wojciechowski, President Fleener, Negotiation Team Paul Bechely, Negotiation Team 26 CITY OF NEWPORT BEACH m John Heffernan, Mayor ATTEST: 0 LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney 27 EXHIBIT A Professional and Technical Classes Accountant Accountant, Senior Building Inspector I Building Inspector II Building Inspector, Senior Building Inspector, Principal Buyer, Senior Civil Engineer Civil Engineer, Associate Junior Civil Engineer City Surveyor Code & Water Quality Enforcement Officer Code & Water Quality Enforcement Officer Trainee Emergency Services Assistant Engineering Technician Engineering Technician, Senior GIS Analyst GIS Coordinator GIS Technician Harbor Resources Specialist Harbor Resources Supervisor Harbor Resources Technician I Harbor Resources Technician II Library Information Systems Coordinator Management Assistant MIS Applications Analyst MIS Applications Analyst, Senior MIS Applications Coordinator MIS Operations Coordinator MIS Specialist MIS Specialist, Senior MIS Technician Permit Technician Permit Technician, Trainee Permit Technician, Senior Planning Technician Planner, Assistant Planner, Associate Planner, Senior Public Works Inspector Public Works Inspector, Senior Residential Building Records Inspector 28 lr' �- Revenue Auditor Subtrade Plan Examiner Telecom /Network Coordinator Traffic Engineering Technician Urban Forester Water Quality & Water Shed Specialist 29 ��3 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH EMPLOYEES LEAGUE This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE 1. The NEWPORT BEACH EMPLOYEES LEAGUE ( "NBEL "), a recognized employee organization, and the City of Newport Beach ( "City "), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBEL representatives and City representatives have reached agreement as to wages, hours and other terms and conditions of employment for the period from July 1, 2005 to June 30, 2007 and this agreement has been embodied in this MOU. 3. This MOU, upon approval by NBEL and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition City hereby confirms its prior certification of NBEL as the recognized employee organization for the employees in the Construction and Maintenance Unit, and agrees to meet and confer and otherwise deal exclusively with NBEL on all matters within the scope of representative pertaining to said employees as authorized by law. B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2005. This MOU shall remain in full force and effect until June 30, 2007, and the provisions of this MOU shall (n. S continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBEL officers designated by the NBEL shall collectively be granted 120 hours paid release time maximum, annually, for the conduct of NBEL business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBEL officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes; preparation for collective bargaining activities, and distribution of NBEL written communication in the work place. D. Employee Data and Access The NBEL will be provided on a regular basis with a listing of all unit members. The listing will include name, department, and job title. Information concerning the NBEL prepared by the NBEL will be provided to new field employees at the time of orientation. NBEL officials shall be entitled to solicit membership from field employees who are not members or who are new City employees assigned to a field department. E. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. 2 2. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. 3. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non — exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 7173. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of City Departments; (b) the establishment of standards of service; (c) to assign work to employees as deemed appropriate; (d) the direction and supervision of its employees; (e) the discipline of employees; (f) the power to relieve employees from duty for lack of work or other legitimate reasons; (g) to maintain the efficiency of operations; (h) to determine the methods, means and personnel by which operations are to be conducted; (i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; (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. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. F. Conclusiveness 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 C `� 7 C H. meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 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. Organizational Security Employees who are members of the NBEL or become members shall be required to maintain membership, or maintain payment of an equivalent service fee checked off by the City for the life of this agreement. NBEL shall indemnify and hold harmless the City from any and all claims arising from this article. SECTION 2. —Compensation L•' Salary Effective the pay period beginning June 25, 2005, salaries shall be increased by 5 %. Effective the pay period beginning June 24, 2006, salaries shall be increased by 3 %. Overtime 1. Definitions (a) Miscellaneous Employee - An employee designated as a miscellaneous member of the Public Employees Retirement System (PERS). (b) Overtime - Normal overtime is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday 4 and ending at midnight the following Friday (or as otherwise designated by the City Manager). (c) Incidental Overtime - Incidental overtime is any extension of the basic work shift of less than 1/10 of an hour that is non - recurrent. (d) Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. 2. Compensation Normal overtime for all non - exempt employees shall be paid at one -and- one -half (1 -1/2) times the hourly rate of the employee's bi- weekly salary rate. Reporting of overtime on payroll forms will be as prescribed by the Administrative Services Director. Incidental overtime is not compensable. 3. Overtime Pay Calculations During Week Including Holiday(s) For the purpose of calculating overtime, holidays occurring during the regular work week will count as time worked. The floating holiday is excluded from this provision. C. Standby Duty 1. Defined (a) To be ready to respond immediately to calls for service; (b) To be reachable by telephone; (c) To remain within a specified distance from his /her work station: and (d) To refrain from activities which might impair the employee's ability to perform his /her assigned duties. 2. Compensation Standby duty shall be compensated at the rate of one (1) hour of overtime compensation for each eight (8) hours of such duty. Standby duty on holidays shall be compensated at the rate of two (2) hours of overtime compensation for each (8) hours of standby duty. Should the employee be required to return to work while on standby status, the s �r q provisions pertaining to compensation for call -back pay shall apply for the actual period of time the employee is in a work status. D. Call -Back Duty 1. Defined Call -back duty requires the employee to respond to a request to return to his /her work station after the normal work shift has been completed and the employee has left his /her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call -back duty. 2. Compensation All personnel on call .back duty eligible for overtime pay shall be guaranteed two (2) hours pay, or pay for one - and - one -half (1 -1/2) times the number of hours worked, whichever is greater. E. Accumulation of Compensatory Time Off City employees represented by the NBEL may receive compensatory time off, in lieu of cash, as compensation for overtime hours worked. Compensatory time shall be calculated at the rate of one and one half hours for each hour of overtime worked beyond the 40 hour limit of the work week. Compensatory time is to be granted only when the employer and the employee agree that the application of "Comp Time" is a desirable substitute for the payment of cash for overtime. Call -back time may be converted to comp time with supervisor approval. Employees may accumulate up to eighty (80) hours of Compensatory Time. Any hours in excess of eighty (80) will be paid off. Accumulation in excess of the eighty (80) hours may be approved at the discretion of the Department Director. F. Night Shift Differential The City agrees to pay $1.00 per hour night shift differential for Employees working a regularly scheduled work shift of which four or more hours are worked between the hours of 5:00 p.m. and 5:00 a.m. Overtime worked as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked. re �l In accordance with this provision, City agrees to pay $.50 per hour night shift differential to automotive shop mechanics for hours worked after 5:00 p.m. G. Differential Pay for One Man Packer The differential pay for the operation of a one man packer shall be 18.0 %. H. Acting Pay NBEL employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hours requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41 st hour worked in the higher classification. Certification Pay Annual payment for State or governing body certification to be as follows for those League represented employees holding valid and current certification in areas indicated below on November 15th of each year: 1. Water or Wastewater Operator - Grade I - $110.00 Grade 11 - $220.00 Grade III - $330.00 Grade IV - $440.00 2. Backflow Certification - $220.00 3. Qualified Applicator Certificate - $110.00 for each category up to a maximum of $330.00. 4. Smog License - $275.00 5. Fire Mechanic State Level I - $110.00 6. Fire Mechanic State Level II - $220.00 7. Certified Arborist - $110.00 F] 8. ASE Certification - $55.00 per certification up to a maximum of eight and $220.00 for possessing a current ASE Master Truck Technician and $220.00 for possessing a current ASE Master Automobile Technician certification. 9. Commercial Drivers License, Class A - $220.00 10. Commercial Drivers License, Class B - $165.00 J. Court Time Employees who are required to appear in Court during their off -duty hours in connection with City business shall receive overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. SECTION 3. - Leaves A. Flex Leave 1. Effective the pay period beginning June 25, 2005, NBEL members hired on or after September 1, 1997 shall accrue flex leave at the same rate as members hired prior to September 1, 1997. NBEL members shall accrue Flex leave at the following rates: Years of continuous Accrual per Annual Service pay period /hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 During the first six months of employment, new full -time employees shall not accrue flex leave. At the completion of six months of employment six (6) months of flex leave will be placed in the employee's account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of paid leave days s i!� advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 2. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight times the member's bi- weekly accrual rate. Any paid leave earned in excess of this level will be paid on an hour for hour basis in cash at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the members hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 3. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. Vacation Leave This section applies only to those Regular full -time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for Accrual /Full -Time Employees Employees entitled to vacation leave- with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: 0 C Years of Accrual per pay Continuous period hrs 0 but less than 5 3.38 5 but less than 9 3.99 9 but less than 12 4.61 12 but less than 16 5.22 16 but less than 20 5.84 20 but less than 25 6.46 25 and over 7.07 2. Limit on Accumulation Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two -year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial twelve (12) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. Sick Leave This section applies only to those Regular full -time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. 1. Basis for accrual Full -time, regular employees shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: ID �q 10 Normal Work Week 40 hours Service Time Monthly Accrual 0 -1 year 4 hours 1 -2 years 5 hours 2 -3 years 6 hours 3 -4 years 7 hours 4+ 8 hours 2. Method of Use (a) General Sick leave may not be taken in excess of that actually accrued. Sick leave may be granted on an hourly basis. (b) Approval Sick leave may be granted only at the discretion of or with the approval of the Department Director and only for the purposes defined in Section 11.2 of the Employee Policy Manual. 3. Sick Leave Conversion . Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 50 months of accrued sick leave, and who have used six or less days of sick leave during that calendar year will be permitted (only once per year) to convert up to six (6) days of sick leave to either salary or paid vacation at the value of 50% (maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. Holiday Leave 1. Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other except those personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holiday, such excepted personnel shall receive an equivalent number of hours of paid flex leave or >> '�S 2 equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1 st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January (1) Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday). Holiday Pay Eligibility NBEL agrees that members scheduled to work 44 hours and 36 hours during a two -week schedule will, when a holiday occurs during a work schedule, receive eight (8) hours pay for said holiday. Following are the limitations on eligibility for Holiday Pay: (a) Holiday Pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday, or are on authorized leave (e.g. approved vacation, or sick leave, that has been approved by the Department Director). (b) Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. (c) "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, which allows the successful completion of their probationary period. 12 � �0 E. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees shall be as follows: 1. Defined The necessary absence from duty by an employee having a regular or probationary appointment, because of the death or terminal illness in his /her Immediate Family. For the purposes of this section, Immediate Family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law, brother -in -law, sister -in -law, spouse's child and grandparents. 2. Maximum Allowed Such leave shall be limited to five (5) working days per incident. F. Leave Sellback Twice annually, employees shall have the option of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. SECTION 4. — Fringe Benefits A. Health Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and 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. The City contribution toward the Cafeteria Plan shall be $674. In addition, the City 13 Il shall contribute the minimum CalPERS participating employers 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 Employees League will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. NBEL members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Effective the pay period beginning December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724 (plus the minimum CaIPERS participating employers contributions). Effective the pay period beginning December 23, 2006, the City's contribution towards the Cafeteria Plan will increase to $774 (plus the minimum CalPERS participating employers contribution). 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance /Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the 14 C I% 3. 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 taxable salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. Disability Insurance The City shall provide disability insurance to all regular full time employees with the following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period 66.67% gross weekly wages $10,000 /month $50 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0 %) percent of base salary. Simultaneously, the City increased base wages by one (1.0 %) percent. Life Insurance The City shall provide life insurance for all regular full -time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. 15 79 D. The Retirement Benefit 1. Existing Benefits The City contracts with PERS to provide retirement benefits for its employees. The retirement formula is the 2% @ 55, calculated on the basis of the best/highest year. The City pays both the employee and the employer contribution, but the City reports the value of the Employer Paid Member Contribution (EPMC), so the employees will have the benefit of the EPMC in their retirement formula calculations. In addition, the City contracts for the 4 th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustmentand the pre- retirement optional settlement 2 death benefit (Section 21548). 2. Reopener The parties agree to reopen negotiations on a possible retirement plan enhancement after receipt of retirement rates for the period beginning July 2006. Any negotiated change must be cost neutral to the City. E. Retiree Health Benefits Program 1. Eligibility The City provides retiree health benefits for employees who retire from the City with seven or more continuous years of service and become PERS annuitants. Retirees must be enrolled in a City- sponsored medical plan at the time of retirement to be eligible for the City's contribution. Retirees are eligible for the City's contribution towards coverage for themselves and one dependent (2 -party coverage). Enrollment of additional dependents is allowed and the cost to cover more than one dependent is the sole responsibility of the retiree. In the event of the death of the retiree, only a dependent spouse will be allowed to continue coverage. Cancellation of coverage by the retiree at any time, including cancellation due to failure to pay the required monthly premiums, will render the retiree and dependents ineligible for any and all portions of the City's Retiree Health Benefits Program from the date of cancellation forward. This eligibility requirement does not preclude future enrollment in the CalPERS Health Benefits Program, but discontinues the City's contribution. In CO 2. Enrollment If the retiree and their dependent(s) meet all of the City's program and insurance plan eligibility requirements, they may continue, upon retirement, their medical, dental and vision coverage or any combination thereof. Re- enrollment or new enrollment of a retiree or dependent(s) is not allowed under the City's Retiree Health Benefits Program once cancellation of coverage by a retiree has occurred, including cancellation due to failure to pay the required monthly premiums or prior declined enrollment in coverage. This provision does not apply to future enrollment in the CalPERS Health Benefits Program, but does discontinue the City's contribution. 3. Administration It is the responsibility of the retiree to notify the City of Newport Beach Human Resources Department at (949) 644 -3300 or in writing to P.O. Box 1768, Newport Beach, CA 92658 -8915, of any change of address or other contact information, any change in a PERS medical plan, any change in Medicare eligibility or status for the retiree or their dependent, and /or any change consistent with a qualified status change (e.g., marriage, divorce, birth or adoption, death of a dependent, change in spouse's employment status that affects the spouse's benefits eligibility under another employer's plan, etc.). Notification of a qualified status change must be done within 30 days of the status change. 4. Funding of the Retiree Health Benefits Program (a) The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Employees League. The City and active employees shall be responsible for seventy -five percent (50% City and 25% actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. For NBEL unit employees, the employee deduction for retiree medical insurance shall be $44.07 per month. Subsequent contribution levels shall be set as needed in the month of July per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall 17 UI provide NBEL with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBEL prior to any increases in employee deduction levels. All monthly premiums must be paid in full upon receipt of the invoice. Failure to pay monthly premiums within 60 days of invoice date will result in the cancellation of the retiree and his /her dependent(s). (b) In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in (a) above; each NBEL unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBEL mutually agree to end the funding on behalf of NBEL members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under (a) above. In the event the retiree medical insurance program described herein is discontinued, NBEL members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBEL on the distribution of said funds back to active (not retired /full -time) City employees in the NBEL unit. The City will provide NBEL with an annual report certified by the City Administrative Services Director describing the balance, interest earnings, and any expenditures of the trust account described herein. The City and NBEL agree to continue negotiations on revisions to the retiree medical insurance program. The parties agree to conclude negotations on the revision to the retiree medical program later than September 30, 2005, 1s ` "i F. Tuition Reimbursement NBEL 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. Maximum tuition reimbursement for employees shall be $1,400.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Administrative Services Director. SECTION 5. Miscellaneous/Workina Conditions A. Reductions in Force /Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS 1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination or employment. 2. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in the current Classification or any Classification within the Series, subject to the following: (a) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (b) Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. K ` 3 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). 4. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher ranking classification (s) characterized by the need for less supervision by superiors, more difficult assignments and more supervisory responsibilities for subordinates. The City Manager shall determine those classifications following a meet and consult process which constitute a Series. 5. 'Bumping Rights ", 'Bumping" or 'Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE The General Services Department will select employees for layoff by straight seniority department wide. This means department management has total control of position elimination and personnel reassignment within ranks, but the layoffs shall be on a straight forward 'last hired -first fired" basis. The layoff system for the Utilities Department shall operate the same department -wide seniority as does the General Services Department, with the exception of the Electrical and Telecommunications sections. Because of the highly specialized skills and training of the personnel in these sections, these sections shall be treated as unique and individual unto themselves. In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Temporary and probationary employees within any classification shall, in that order, be laid off before permanent employees. 20 2. Employees within a classification shall be laid off in inverse order of seniority; 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his /her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. REEMPLOYMENT Permanent and probationary employees who are laid off shall be placed on a Department re- employment list in reverse order of layoff. The re- employment list shall expire in 18 months. In the event a vacant position occurs in the classification which the employee occupied at the time of layoff, or a lower ranking classification within a series, the employee at the top of the Department re- employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Personnel Director. SEVERANCE If an employee is laid off from their job with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach up to ten (10) weeks of pay. NOTICE Employees subject to lay -off shall be given at least thirty (30) days advance notice of the layoff or thirty(30) days pay in lieu of notice. in addition, employees laid off will be paid for all accumulated paid leave, holiday leave, (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 21 B. Non - Discrimination City and NBEL agree that there will be no discrimination by either party or by any of their agents against any employee because of his /her membership or non- membership in NBEL, or because of his /her race, creed, color, national origin, religious belief, political affiliation, sex, sexual orientation or age. C. Promotional Preference Where no less than two (2) unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified. The Human Resources Department shall be responsible for insuring that a position vacancy announcement for all available City positions be distributed in a manner that reasonably assures unit members access to the announcements. The Human Resources Department shall oversee all testing procedures. Any employee who has achieved "regular status" may request assignment to any lateral or lower classification, and that employee may be transferred into that classification without competitive testing if both of the following conditions have been satisfied: 1. The employee meets the minimum qualifications of the classification; and, 2. The Department Director approves of the transfer. D. 9/80 Scheduling Plan The City agrees to maintain flex - scheduling where it is currently in place in the Utilities Department and General Services Department. The Building Maintenance, Parks Maintenance, and Beach Maintenance crews will be placed on the 5/40 schedule including the Memorial Day and Labor Day weekends, or any portion of time between these Holidays at the discretion of the General Services Director. The City reserves the right to amend the program as needed to mitigate any operational problems which may arise due to budgetary cutbacks, personnel cuts or shortages, service level complaints, or any other operational reason. Should an operational problem involving service reductions or increases in cost materialize, the Department Director will notify the Association and the employees affected work group of the problem in writing, supported with cause. The Association and /or the employees of the affected work group, will in turn have up to ten (10) working days to respond and schedule a meeting with the Department Director. The purpose of the meeting is to propose a solution to the problem. The Department Director will consider the proposed solution and respond, in writing, within five (5) working days. If the 22 9v Department Director and the work group disagree on the solution, the Association and /or employees of the affected work group will have up to five (5) working days to appeal the Department Director's decision to the City Manager, who will consider both sides of the issue and resolve the dispute, in a written decision within ten (10) days after the aforementioned meeting. E. Labor Management Committee Committees shall meet on an as needed basis; names of participating unit members shall be announced to management no less than 5 work days before the scheduled meeting; cancellation for cause shall be rendered by the canceling party no less than 48 hours prior to the scheduled meeting; canceled meetings shall be rescheduled to take place within 5 working days of the canceled meeting; committees shall be departmental; they may be combined in the interests of efficiency with other such committees; City participants shall include appropriate department or division heads outside the unit; the purpose of the committees shall be to resolve conflict and exchange information; a unit staff person may attend meetings; meetings shall be scheduled to last no less than one hour; grievances in process shall not be subject to resolution in meetings; matters properly dealt with in negotiations may be discussed but no agreements shall be effected on same in committee. Meetings shall be on work time. F. Discipline - Notice of Intent 1. Employees who are to be the subject of substantial punitive discipline for any misconduct or negligence shall be entitled to prior written notice of intent to discipline at least seven (7) calendar days prior to the imposition of the actual penalty. This written notice shall contain a description of the event or conduct which justifies the imposition of discipline. The notice shall also include the specific form of a discipline intended, and the employee shall be offered the opportunity to a hearing before their Department Director prior to the imposition of the penalty. This procedure will only be applied in cases of substantial punitive discipline. It shall be understood that a disciplinary penalty equal to an unpaid suspension of three (3) days or greater shall be substantial. All other discipline resulting in less than a three (3) day suspension will be considered non - substantial and will not be subject to the aforementioned procedure. This understanding is not intended to in any way reduce the rights of employees to due process. Employees who have become the subject to discipline and who believe that the penalty is not justified shall have 23 C`I access to the grievance process as established in the Employee - Employer Resolution #7173. G. Grievance Procedure Step 1: A grievance may be filed by any employee on his /her own behalf, or jointly by a group of employees, or by a Recognized Employee Organization. Within ten (10) calendar days of the event giving rise to a grievance, the grievant shall present the grievance in writing to the immediate supervisor. Grievances not presented within the time period shall be considered resolved. The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2. Step 2: If the grievance is not resolved in Step 1, the grievant may, within fourteen (14) calendar days from his /her receipt of the supervisor's answer, forward the grievance to the department head for consideration. Answer to the grievance shall be made in writing by the department head, after conferring with the grievant, within fourteen (14) calendar days from receipt of the grievance. Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be made by the grievant within ten (10) calendar days from the receipt of the department heads answer, through the representative of his /her Recognized Employee Organization who may request a meeting with the City Representative to resolve the grievance. Following the meeting, answer shall be made by the City Representative, in writing, to the representative within twenty -one (21) calendar days. Step 4: Mediation - If the grievance is not resolved after Step 3, as an alternative to proceeding directly to Step 5, the grievance may be submitted to mediation. A request for mediation may be presented in writing to the Human Resource Manager within seven (7) calendar days from the date a decision was rendered at Step 3. As soon as practicable thereafter, or as otherwise agreed to by the parties, a mediator shall hear the grievance. A request for mediation will automatically suspend the normal processing of a grievance until the mediation process is completed. The mediation process shall be optional, and any opinion expressed by the mediator shall be informal and shall be considered advisory. Step 5: Within 20 calendar days of receipt of a grievance denial at step three, the grievant may file the grievance, in writing, with the Civil Service Board. 24 v� At the next regularly scheduled meeting of the Civil Service Board, the grievance shall be heard, using Civil Service Board De Novo procedures. Within 20 calendar days of the hearing, the Civil Service Board shall issue its findings and conclusions to the parties at interest. Within 7 calendar days of the issuance of Civil Service Board findings and conclusions, the City Manager shall affirm, modify or revoke the Boards decision. The City Managers decision shall be considered exhaustive of administrative remedies. Additionally, the City and NBEL agree to expand the grievance procedure as it relates to performance evaluations and written reprimands, permitting them to be appealed to the 5th step of the grievance procedure. H. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. I. Failure of Probation 1. New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in Subsection 3, below. 2. Promotional Probation (a) An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in Subsection 3, below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. (b) An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. (c) When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class 25 � "1 provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. (d) If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. 3. Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the. City, in violation of Personnel Policy Section 303 Non - Discrimination may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. J. Accident Reporting The City will require that all traffic collisions involving City vehicles shall be reviewed by the traffic division supervisor of the Newport Beach Police Department to prevent any unnecessary reports from being forwarded to the DMV. Also, the vehicle accident review board will evaluate the supervisor's field report prior to making its preventable /non - preventable determination. K. Iniury Prevention Program (IPP) Until such time as the Injury Prevention Program (IPP) is fully developed the following understandings apply: 1. The City will indemnify and hold harmless from civil and criminal prosecution NBEL members for any liability which might arise out of the City's IPP (mandated by SB198). Once the program has been fully developed and implemented, the IPP will come into full force and effect. 2. The City will take into consideration the adequacy of training prior to issuing discipline or depreciated performance evaluations to employees who have been determined to be in non - compliance to the City's IPP. 26 c.10 3. The City agrees to identify, at the beginning of each department's IPP the individuals who are ultimately responsible for the administration of the plan. 4. The City agrees to incorporate representatives of the NBEL on the IPP safety committees in all departments where the NBEL has representation obligations. 5. The City agrees to include representatives from the NBEL in a meet and consult role, as part of the process which will be employed for the incorporation of changes in the IPP. L. Safety Shoes The present policy and practices regarding the supply and maintenance of safety shoes shall remain in place except for the following changes as they apply to the accelerated wear provisions. If the soles of the safety shoes wear out within a year, the employee should present the shoes to his /her supervisor. If the supervisor agrees that the soles are worn out, he will authorize the employee to purchase a new pair of shoes at City expense. If the supervisor judges that the uppers are in good condition, he will authorize the employee to have the shoes resoled at City expense. M. Uniforms It shall be understood by the NBEL and its members that employees who report for work either "out of uniform" or in "dirty" or "otherwise substandard" uniforms will be sent home without additional prior notice and without pay. Such incidents shall further be documented and regularly repeated violations of the uniform standards will subject the employee to progressive discipline up to and including dismissal for negligence and /or misconduct. Employees represented by the NBEL will be permitted to wear specified and approved shorts as part of the City approved optional uniform. The shorts must be dark blue in color, the inseam must be no less than 4 and 1/2 inches after shrinkage. They must be worn in combination with the standard City uniform shirt of the optional (golf style) City uniform shirt, and they must be worn with either white or blue socks. The optional uniform shall be considered proper and acceptable year round. Department Directors may make individual exceptions to this optional uniform agreement through the establishment of Departmental Policy in the interest of reasonable safety considerations. 27 ?1 N. Voluntary Training Program The Department shall, when the need for additional or replacement individuals possessing a commercial drivers license is anticipated, establish a voluntary training program that will allow employees to qualify for the license. O. In- Service Supervisory and Safety Training The City will continue its program of providing supervisory and motivational training for Supervisors and Crew Chiefs. The program, will if possible, be expanded to include non - supervisory personnel wherever practical. The equipment operator training program will continue on an as needed basis. Course subject matter may include, but not limited to: interpersonal working relationships, public service, performance evaluation techniques, employee counseling and discipline, harassment avoidance, defensive driving, substance abuse, skills and safety methods and procedures, and wellness. P. Clean -Up Time When necessary, each employee shall be permitted up to fifteen (15) minutes of paid City time at the end of each work shift to perform work related job site and personal clean -up and to put away tools and equipment. The amount of clean- up time shall be limited to the actual needs of the employee. Q. Rest Periods Employees shall be allowed rest period of fifteen (15) minutes during each four (4) consecutive hours of work. Such rest periods shall be scheduled in accordance with the requirements of the Department, but in no case shall rest periods be scheduled within one (1) hours of the beginning of the ending of a work shift or lunch period. The City may designate the location or locations at which rest periods may be taken. Rest periods shall be considered hours worked and employees may be required to perform duties, if necessary. R. Service Awards For the purposes of determining service awards, if an employee has been employed by the City on more than one occasion, non - consecutive time will be considered as part of total service. Prior to system implementation, an employee is required to individually notify the awards committee of all of the service time. 28 S. Employee Handbook There will be a consolidation of documents to be given to each employee. This consolidation will be comprised of the Employee Policy Manual, related Departmental Rules and Regulations; Employee /Employer Resolutions and a copy of this Memorandum of Understanding. More information may be included. T. Direct Deposit All newly hired employees shall participate in the payroll direct deposit system. U. Salary on Reclassification The City will amend its personnel to provide for a minimum salary increase of five (5 %) percent upon reclassification (not to exceed the maximum of the new salary range). V. Transfer Station Operator The City will conduct a classification study on Transfer Station Operator position. Study results will be available no later than March 1, 2006. W. Duration The terms of this MOU are to remain in full force and effect from the first pay period of fiscal year 2005 -2006 through the last pay period of fiscal year 2006- 2007. Proposals for the succeeding MOU must be submitted on or before March 1, 2007 in accordance with Section 13, Timetable for Submission of Requests of the Employer - Employee Relations Resolution. Upon adoption of a resolution approving this MOU and the terms hereof by the City Council of the City of Newport Beach, this MOU shall be in force and effect as of the first day of the first pay period of fiscal year 2005 -2006. X. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should provisions of this MOU relating to any schedule adjustment be declared invalid, City agrees to provide alternative benefits agreeable to NBEL, to employees, which will cause 29 �' 3 such employees to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this day of , 2005: A NEWPORT BEACH EMPLOYEES LEAGUE By: James Randal, President By: Gary Mansfield, Vice President By: Tim Morell, Secretary By: Greg Lewis, Treasurer 0 John Heffernan, Mayor ATTEST: LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney Lykins, Staff 30 EXHIBIT A CLASSIFICATIONS COVERED UNDER THE NEWPORT BEACH EMPLOYEES LEAGUE BARGAINING UNIT Auto Paint & Body Mechanic Automotive Parts Buyer Automotive Stock Clerk Beach Maintenance Supervisor Carpenter Concrete Finisher Concrete Maintenance Crew Chief Concrete Supervisor Cross Connection Control Specialist Electrician Electrical Services Crew Chief Electrical Services Supervisor Equipment Mechanic I Equipment Mechanic II Equipment Mechanic, Senior Equipment Maintenance Supervisor Equipment Operator I Equipment Operator II Facilities Maintenance Worker I Facilities Maintenance Worker II Facilities Maintenance Crew Chief Facilities Maintenance Supervisor Groundsworker I Groundsworker II Irrigation Specialist Maintenance Worker I Maintenance Worker II Park Maintenance Crew Chief Park Maintenance Supervisor Parking Lot Crew Chief Parking Lot Supervisor Parking Meter Serviceworker Parking Meter Supervisor Pest Control Technician Refuse Supervisor Refuse Worker I Refuse Worker II 31 Senior Services Van Driver Sign & Paint Shop Technician Storm Drain /Street Sweeping Crew Chief Storm Drain /Street Sweeping Supervisor Street Maintenance Crew Chief Street Maintenance Supervisor Traffic Painter Transfer Station Operator Tree Maintenance Services Technician Utilities Crew Chief Utilities Equipment Specialist Utilities Specialist Utilities Supervisor Utilities Video Technician Water Production Operator Water Production Supervisor 32 Io