HomeMy WebLinkAbout15 - Marine Safety Officers Association MOUTO:
CITY OF NEWPORT BEACH
SUPPLEMENTAL CITY COUNCIL STAFF REPORT
Agenda Item No. 15
December 13, 2005
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: Memorandum of Understanding with Marine Safety Officers Association
Attached is the Memorandum of Understanding (MOU), signed by officers of the Association.
The MOU uses the new name for the Association, which is Lifeguard Management
Association.
The salary adjustment provisions of the MOU were stated incorrectly in the original staff
report, and should read as follows:
2. Salary Adjustments:
• January 2005
0 3% across the board
0 9% market adjustment for Lifeguard Officer 3% July 2006, plus 1% for
contribution to retiree medical
• January 2006
o 1% special adjustment concurrent with retiree medical program
• July 2006
o 3% across the board
Submitted by:
Sharon Wood
Assistant City Manager
Attachment: Memorandum of Understanding between the City of Newport Beach and the
Newport Beach Lifeguard Management Association
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
This Memorandum of Understanding (hereinafter referred to as "MOU ") is entered into
with reference to the following:
PREAMBLE
1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter
referred to as "CITY ") and authorized representatives of the NEWPORT BEACH
LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as
"NBLMA ") a recognized employee organization, met and conferred, exchanging
various proposals concerning wages, hours, fringe benefits and other terms and
conditions of employment of employees represented by NBLMA (hereinafter
referred to as "EMPLOYEES ") for the period of January 1, 2005 through June 30,
2006.
2. NBLMA representatives have reached an agreement as to wages, hours and
other terms and conditions of employment to apply to all affected EMPLOYEES
for the time period defined above. Said EMPLOYEES desire to reduce their
agreement to writing, and to present such agreement, in the form of this MOU, to
the City Council of the City of Newport Beach for approval.
NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective
January 1, 2005, as follows:
SECTION 1. GENERAL PROVISIONS
A. Duration of Memorandum
The terms of this MOU are to remain in full force and effect beginning January 1,
2005 through June 30, 2006.
B. Scope
1. All present written rules and currently established practices and employee
rights, privileges and benefits that are within the scope of representation
shall remain in full force and effect during the term of this MOU unless
specifically amended by the provisions of this MOU, or in the case of the
Department SOP's falling within the scope of representation, the City has
given notice to the Association and, upon request, met and conferred on
any proposed changes which fall within the scope of representation.
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When the Department proposes to change any SOP departmental rule or
regulation, it will provide a copy of such change to the Association no less
than seven (7) days prior to implementation of the proposed change. If
such proposed change materially impacts any matter within the scope of
representation, then the parties agree to meet and confer over such
impact.
2. Pursuant to this MOU, the City reserves and retains all of its inherent
exclusive and non - exclusive managerial rights, powers, functions and
authorities ( "Management Rights ") as set forth in Resolution No. 2001 -50.
C. Conclusiveness
Except as provided for in this agreement, this MOU contains all of the covenants,
stipulations and provisions agreed upon by the parties. Therefore, for the life of
this MOU, neither party shall be compelled and each party expressly waives its
rights to request the other to meet and confer concerning any issue relating
primarily to matters within the scope of representation except as expressly
provided for herein or by mutual agreement of the parties. No representative of
either party has the authority to make and none of the parties shall be bound by
any statement, representation or agreement, which is not embodied in this MOU.
Any changes to any salaries, benefits or terms and conditions of employment
within the scope of representation not embodied in this MOU shall require prior
mutual agreement signed by the Mayor and the Newport Beach Lifeguard
Management Association President.
D. Savings
Should any part of this MOU or any provision herein contained be rendered or
declared invalid, by reason of any existing or subsequently enacted Legislation,
or by decree of a Court of competent jurisdiction, such invalidation of such part or
portion of this MOU shall not invalidate the remaining portion hereto, and same
shall remain in full force and effect; provided, however, that should the provisions
of this MOU relating to pay schedule adjustment increases be declared invalid,
CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES
to receive the same amount of money as they would have received had such
provision not been declared invalid.
E. Other Terms and Conditions
Except as to those matters expressly covered by this MOU, all terms and
conditions of employment may be changed or amended after meeting and
conferring, in good faith.
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F. Unit Classification Titles
Unit classifications are listed in Exhibit A. Effective with the ratification of this
Memorandum of Understanding, Unit classification titles shall be modified as
follows:
Lifeguard Captain to Lifeguard Battalion Chief
Lifeguard Lieutenant to Lifeguard Captain
For all compensation comparison purposes, actual job duties, and not
classification titles, will be utilized.
SECTION 2. COMPENSATION
A. Salary Adiustments
1. Effective December 25, 2004, the City shall increase base salary for all
unit classifications by three percent (3 %).
2. Effective December 25, 2004, the Lifeguard Officer classification will
also receive a nine percent (9 %) base salary market adjustment.
3. Effective June 24, 2006, the City shall increase base salary for all unit
classifications by three percent (3 %).
4. Special Adjustment
Effective the pay period beginning December 24, 2005 (concurrent with
the implementation of the revised retiree medical benefit as set forth in
Section 4.E.2) base salaries shall be increased by 1 %.
B. Special Assignment Pay
Employees certified for boat operations or dive shall receive additional
compensation of 2.5% of base salary for their job classification.
C. Overtime
Unit employees shall receive overtime compensation for all hours worked in
excess of forty (40) in any work period. Paid time off shall be considered time
worked for the purposes of calculating overtime.
Unit employees shall have the option of requesting compensatory time off (CTO)
for all overtime, including training time, during the term of this agreement. All
compensatory time off shall be subject to existing City rules providing for
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maximum (CTO) accrual of eighty (80) hours at time and one half on the books
or 120 actual hours.
D. Uniform Allowance
The City shall pay the entire cost of providing LMA members with each
component of the required LMA uniforms. The required LMA uniform includes
uniform pants, uniform shirts, safety shoes, badges and insignias, uniform
jackets and liners, belts, dive equipment, foul weather gear, personal floatation
device and helmet. The City shall not be responsible for providing employees
with socks, underwear, cap, workout shoes, or other clothing.
The City will shall report the value of provided uniforms at $488 to PERS in
accordance with PERS requirements.
E. Call Out
Call out compensation shall be in accordance with the following provisions:
1. All emergency call out time shall be calculated to the nearest one quarter
(1/4) hour of time worked.
2. For forty (40) hour employees, a minimum of two (2) hours (including
travel time) of pay at the rate of one and one half (1 1/2) times the
employee's regular hourly rate of pay shall be guaranteed for each
emergency call out
F. Scholastic Achievement Pay
NBLMA members are entitled to additional compensation contingent upon
scholastic achievement ( "Scholastic Achievement Pay "). LMA members may
apply for increases pursuant to this Section when eligible and scholastic
achievement pay shall be included in the member's paycheck for the pay period
immediately after approval by the Fire Chief. It is the responsibility of the LMA
member to apply for Scholastic Achievement Pay. Approval of the member's
application shall not be unreasonably withheld or delayed, and the member shall
not be entitled to receive scholastic achievement pay prior to the date the
application is approved even though the member may have been eligible prior to
approval. Scholastic achievement pay is contingent upon years of service and
number of units and /or degrees received by the employee. Qualifying units
and /or degrees must be awarded by accredited community colleges, state
colleges or universities. Effective upon ratification of this agreement, LMA
members shall receive scholastic achievement pay in accordance with the
following:
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G.
It
Years of Total College % of Actual Step
Service Semester Units in Job Class Range
2 or more
30
1.5%
3 or more
60
2.5%
3
90
3.5%
4 or more
90
3.5%
4
120
4.5%
4
B.A. /B.S.
5.5%
4
M.A. /M.S.
6.5%
Night Standby
An employee assigned to standby duty for purposes of being on call to handle
emergency situations arising at times other than during normal working hours
shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate
of pay for each calendar day of such standby duty.
All unit employees shall be required to maintain residency within thirty (30)
minutes driving time from the Marine Safety Headquarters in order to be eligible
for standby duty. Driving time shall be defined as driving the most direct route at
the posted speed limit.
Move -up Pay
Temporary upgrading shall be defined as the temporary assignment of an
employee to work in a job classification, which is assigned to a salary schedule
higher than his /her regularjob classifications.
Employees temporarily upgraded to the following job classifications and
equivalent positions shall receive a five percent (5 %) pay differential over their
regular rate of pay for all time worked in the higher job classification if they are
assigned to work in the higher job classification for a period of one (1) working
hour or longer.
Lifeguard Captain
Lifeguard Battalion Chief
All holiday, vacation, sick leave and paid leave shall be paid at the employee's
regular rate of pay.
Assignments to higher rated classifications shall be made at the sole discretion of
the City.
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1. Court Standby Pay
NBLMA members who, pursuant to Subpoena compelling attendance to testify to
acts, observations, or omissions occurring in the course and scope of
employment or at the direction of their supervisor, are required, while off -duty, to
remain within a certain response time from court, shall be considered to be on
"court standby time" and shall receive four hours of pay for each eight hours of
court standby time. NBLMA members shall, when required to appear in court
pursuant to a Subpoena or the direction of their supervisor to testify at to matters
relating to their employment with the City, be considered to be on duty and shall
be paid accordingly. Members shall remit all witness fees received for testifying
or appearing on any matter for which the member is eligible to receive court
standby time.
SECTION 3. LEAVES
A. Flex Leave
All employees hired after July 1, 1990 will be included in the Flexible Leave
Program.
1. Basis for Accrual
Effective the first full pay period following ratification of this agreement,
permanent full -time employees enrolled in the flex leave program will earn
leave in accordance with the following schedule:
Years of continuous Accrual per Longevity
Service pay period/hrs Pay Increase
1 but less than 5
5.54
0
5 but less than 9
6.15
0
9 but less than 12
6.77
0
12 but less than 16
7.69
0
16 but less than 20
7.69
1.0%
20 but less than 25
7.69
1.5%
25 and over
7.69
2.5%
During the first six months of employment, new regular full -time
employees shall not accrue paid leave. At the completion of six months of
employment six (6) months of accrued flex leave will be placed in the
employees account.
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
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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.
2. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal to
seventy eight (78) times the member's bi- weekly accrual rate. 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. Members shall be
eligible for flex leave spill over pay only if they have utilized at least eighty
(80) hours of flex leave the previous calendar year. Employees who have
not utilized the required amount of leave the prior calendar year shall not
be eligible to accrue time above the maximum accrual limit.
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.
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. Any fraction over an hour shall be charged to the next full
hour.
B. Vacation
1. Basis for Accrual /Full -Time Employees
Employees entitled to vacation leave- with -pay shall accrue such leave
based on years of continuous service and the number of hours in a normal
workweek for the position to which they are assigned in accordance with
the following schedule:
Years of Accrual
7
C.
Continuous Per 40 Hour
Service Pay Period
0 but less than 5
3.38
5 but less than 9
3.99
9 but less than 12
4.61
12 but less than 16
5.22
16 but less than 20
5.84
20 but less than 25
6.46
25 and over
7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31 st of each year with
the following exception: with approval of the Department Director, an
employee may accrue vacation days in excess of the two -year limit
provided all such excess accumulation is taken by March 31st of the
following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued and in no
case, except for entry-level employees, may it be taken prior to the
completion of an employee's initial probationary period. Entry level
employees may use vacation after the completion of the initial six (6)
months of probation. The Department Director shall schedule and
approve all vacation leaves for employees taking into consideration the
needs of the Department, and whenever possible, the seniority and
wishes of the employee. Vacation leave may be granted on an hourly
basis.
Use of Flexible and Vacation Leave
Level A staffing shall run from June 15th through Labor Day. During this period
of time, full -time personnel may be limited to a total of forty (40) hours usage of
vacation/flex leave. Additional vacation/flex leave during this period may be
approved if, in the opinion of management, adequate staffing levels can be
maintained.
The Department shall develop a policy defining when approved vacation /flex
leave times shall not be subject to cancellation.
The City will budget eighty (80) hours of overtime per employee per year for
vacations /flex leave backfill. Concurrently, the City and NBLMA will jointly review
procedures defining minimum staffing and the hours for night call out. Any
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changes to these areas fall within the scope of representation and will be subject
to the meet and confer process.
Sick Leave
1
2.
Basis for Accrual /Full -time Employees
Full -time, regular employees shall accrue sick leave based on the number
of hours in a normal workweek for the position to which they are assigned
in accordance with the following schedules:
Normal Work Week
40 hours
0- - 1 year 4 hours per month
1 -2 years 5 hours per month
2 -3 years 6 hours per month
3 -4 years 7 hours per month
4+ years 8 hours per month
After the 3rd year level, and the 5th year level, employees will be required
to maintain the same number of hours as required of other permanent
employees.
Employees accruing sick leave hours under the above formula and
enrolled in the City's Disability Program will be eligible for City -paid
Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208
hours.
Method of Use
a. General
Sick leave may not be taken in excess of that actually accrued.
Except as noted, an employee serving his /her initial probation
period is eligible to use his /her accumulated sick leave provided
that if for any reason his /her City employment is terminated prior to
the completion of such probationary period, his /her final pay check
shall be reduced by the value of the sick leave he /she has taken.
After completion of the initial six (6) months probation period, entry-
level employees shall not have used sick leave deducted from their
final 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.
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b. Approval
Sick leave may be granted only at the direction of or with the
approval of the Department Director and only for the purposes
defined in Section 11.2.A of the Employee Policy Manual.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued level of
sick leave equal to or greater than the full value of 40 months of accrued
sick leave, and who have used six or less days of sick leave during the
calendar year will be permitted (only once per year) to convert up to six
days of sick leave to either salary or paid vacation at the value of 50%
(Maximum value of 3 days per year). Eligible sick leave days converted to
cash shall be at the employee's option. Eligible sick leave days converted
to paid vacation shall require the approval of the Department Director.
E. Family Sick Leave
Unit employees shall be entitled to use an amount of time equal to one -half (1/2)
of their annual sick leave accrual for an illness of a dependent which requires the
presence of the employee. Such time may be taken from the employee's annual
sick leave accrual or sick leave bank, at the employee's choice. Leave shall be
administered in accordance with the provisions of Section 11.2 of the Employee
Policy Manual. The provisions of this section shall not be construed to affect or
reduce the right of any employee to any unpaid family medical leave authorized
by State or Federal law.
For purposes of family sick leave, family member shall mean spouse, parent,
(parent shall mean biological, foster, or adoptive children, a stepchild, a legal
ward, or a child of a person standing in local parentis):
F. Holiday Time
Subject to the provisions herein, the following days shall be observed as paid
holidays by all employees in permanent positions and other personnel whose
work assignments, in the judgment of the Department Director, require their
presence on the job. For each designated holiday, except the Floating Holidays,
such personnel shall receive an equivalent number of hours of paid leave or
equivalent pay whichever in the judgment of the Department Director best serves
the interest of the Department.
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Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas
New Year's Eve
New Year's Day
Martin Luther King Day
Washington's Birthday
Memorial Day
Floating Holiday (1)
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
3`d Monday in January
3rd Monday in February
Last Monday in May
For employee's birthday or other
holiday.
Eligibility and use according to
Memorandum of Understanding.
Holiday pay will be paid only to employees who work their scheduled day
before the holiday and scheduled day after a holiday or are on authorized
leave (e.g., approved vacation, sick leave, or flex leave that has been
reviewed and approved by the Department Director).
2. Newly hired employees will be eligible to receive full pay for scheduled
holidays, without a waiting period.
3. "Floating Holiday" eligibility allows for newly hired employees to earn their
first floating holiday credit, eight (8) hours, at the same time as they
receive their regular appointment status, upon the successful completion
of their probationary period.
4. Effective July, 2003 all employees will be provided a one -time opportunity
to elect to convert all or any portion of their annual holiday benefits to cash
on an annual basis. This election shall be uniform from year to year. For
example, an employee electing to convert 48 of the 96 hours of the annual
benefit to cash must so convert 48 hours of earned holiday benefits each
year thereafter. Holiday pay will be paid bi- weekly with the regular check.
Holiday leave conversion pay will not count in the total compensation
formula used to adjust salaries and benefits.
Newly hired employees will make this election at the time of hire.
This holiday compensation shall be reported to PERS as special
compensation and shall be regarded as compensation earnable as
defined in Government Code Sec. 20636 (c) (6) for purposes of computing
retirement benefits and contributions.
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G.
M
Bereavement Leave
The provisions of the Bereavement Leave Policy applicable to affected
employees are as follows:
Defined. The necessary absence from duty by an employee having a regular or
probationary appointment, because of death or terminal illness in his /her
immediate family. For the purposes of this section, immediate family shall mean
father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law
and grandparents.
Maximum Allowed. Such leave shall be limited to five (5) working days per
calendar year per occurrence.
Probationary Employees. An employee serving his /her initial probationary period
who takes leave under this section who for any reason terminates his /her
employment prior to the completion of such probationary period shall have
his /her final pay check reduced by the value of the leave taken.
Sick Leave Pay Out
Upon paid retirement, termination in good standing or death, but not termination
for cause or resignation in lieu of termination, any member or his /her estate shall
be paid, at the rate of 109% of their then current base hourly rate of pay (hourly
rate before incentives, other pays, etc.) for a percentage of the employees
accrued but unused Sick Leave computed as follows:
YEARS OF SERVICE:
LESS THAN 10
10 BUT LESS THAN 15
15 BUT LESS THAN 20
20 OR MORE
PERCENT OF UNUSED SICK
LEAVE PAID FOR:
NONE
25%
37.5%
50%
Payment for accrued but unused Sick Leave shall be limited to the first 800 hours
of accrued Sick Leave for Staff Employees and the first 1200 hours for Line
Employees (for example if a Line Employee had accumulated 1400 hours of Sick
Leave and retired after 16 years he or she would receive Terminal Sick Leave
Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick
Leave — 1200 hours multiplied by .375).
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Leave Pay -Off
For the term of the agreement, NBLMA members shall receive payment for any
accrued leave upon termination at the rate of 109% of their base hourly rate.
SECTION 4. FRINGE BENEFITS
A. Insurance
Benefits Information Committee
City has established a Medical /Dental Information Committee composed
of one representative from each employee group and up to three City
representatives. The Medical /Dental Information Committee has been
established to allow the City to present data regarding carrier and
coverage options, the cost of those options, appropriate coverage levels
and other health care issues. The purpose of this Committee is to provide
each employee group with information about health care issues and to
receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. City Contribution
The City has implemented an IRS qualified Cafeteria Plan. NBLMA
members shall participate in this plan. The City contribution toward the
Cafeteria Plan shall be as set forth below. Employees shall have the
option of allocating Cafeteria Plan contributions towards the City's existing
medical, dental and vision insurance /programs. The City and the Newport
Beach Marine Safety Officer 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 December 25, 2004, the City's contribution towards the Cafeteria
Plan will increase to $674, (plus the minimum CaIPERS participating
Employer's contribution).
Effective December 24, 2005, the City's contribution towards the
Cafeteria Plan will increase to $724, (plus the minimum CaIPERS
participating employer's contribution).
LMA members who do not want to enroll in any medical plan offered by
the City must provide evidence of group medical insurance coverage, and
execute an opt -out agreement releasing the City from any responsibility or
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F.]
11.11,
liability to provide medical insurance coverage on an annual basis.
Should the City increase the Cafeteria Plan contribution for other
represented employee groups in excess of the amount reflected herein, it
will, upon request, reopen negotiations on the Cafeteria Plan contribution
with NBLMA.
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the
City's health plan offerings as agreed upon by the Benefits Information
Committee.
4. Vision Insurance
The existing or a comparable vision plan shall be maintained as part of the
City's health plan offerings as agreed upon by the Benefits Information
Committee.
Additional Health Insurance /Programs
Kj
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 Short-term (STD) and Long -term (LTD) disability
insurance to all regular full time employees with the following provisions:
Weekly Benefit
Maximum Benefit
Minimum Benefit
Waiting Period
14
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.
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. Pursuant to Section 20691 of the California Government Code, the City
shall pay to PERS, on behalf of all employees covered by this agreement,
the entire required normal "safety member" retirement contribution, but not
to exceed 9% of the compensation earnable which PERS uses to
calculate retirement contributions and benefits and the entire normal
miscellaneous member contribution,, not to exceed 7 %. In addition, the
amount of this payment shall be reported to PERS as special
compensation, which is part of the employee's compensation earnable,
pursuant to the provisions of Section 20636 (c)(4) of the California
Government Code, as amended effective July 1, 1994. This payment
shall be credited to the employee's accounts maintained by PERS in
accordance with Section 20691 of the California Government Code.
NBLMA acknowledges that the City is making this payment pursuant to a
specific request of NBLMA to do so, that the City has made significant
financial commitments to NBLMA in this MOU in consideration of the
members' agreement to relinquish their previously held "irrevocable right"
to pay their own PERS contribution and receive a corresponding salary
increase, and that the significant financial concessions to NBLMA (which
included Leave Premium Pay Accounts, changes in the calculation of
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"hours worked" for purposes of overtime and internal salary adjustments)
were made to avoid the potential for increased overtime compensation
approximating $450,000 if all NBLMA members exercise their irrevocable
right to make their own PERS contribution and receive a corresponding
salary increase.
2. The City's contract with PERS shall also provides for:
a. A 3% @ 55 retirement formula pursuant to the provisions of Section
21252.01 of the California Government Code.
b. The military buy -back provisions pursuant to Section 20930.3 of the
California Government Code and the highest year benefit pursuant
to Section 20042.
C. The Level 4 1959 Survivors Benefits.
3. The City will amend its PERS contract to provide the pre- retirement option
settlement 2 death benefit (Section 21548) to be effective July 23, 2005.
E. Retiree Health Benefits Program
1. Prior to December 24, 2005
An employee is eligible for retiree medical benefits under this program
after seven years of service to the City of Newport Beach if the employee
retires from the City and is a PERS annuitant. This program is inclusive of
an employee's right to medical insurance coverage under the CalPERS
medical insurance plan and the mandatory minimum employer
contribution to said plan on behalf of the annuitant.
a. The City has implemented a $400 per month cap for retiree medical
insurance premium contributions as provided for in previous
Memoranda of Understanding between the City and the NBLMA. In
accordance with existing agreements, the City and active employees
shall be responsible for 3 /4ths (1/2 City and 1/4 actives) of retiree
medical insurance premium under this program. Retirees shall be
responsible for any remaining medical insurance premiums under this
program to a maximum of Four Hundred ($400.00) Dollars. Retirees
shall be responsible for any remaining medical insurance premiums.
The employee's current share of the retirement contribution shall be
$44.07 per month. Subsequent contribution levels shall be set in July
per the retirement formula described above.
Prior to increasing the deductions for the employee's contribution
share, the City shall provide NBLMA with documentation supporting
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.. .. ........ . . .. .. .. .
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 NBLMA prior to any increases in employee deduction
levels.
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 described above,
each NBLMA 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 NBLMA mutually agree to end the
funding on behalf of NBLMA 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 E1 D1 (a) above.
In the event the retiree medical insurance program described herein
is discontinued, NBLMA members will receive an accounting on any
remaining funds and the City will immediately meet and confer with
NBLMA on the distribution of said funds back to active (not
retired/full -time) City employees in the NBLMA unit.
The City will provide NBLMA with an annual report certified by the City
Finance Director describing the balance, interest earnings, and any
expenditures of the trust account described herein.
The City agrees to meet and confer with NBLMA upon request with
regard to alternative programs and /or funding methods for retiree
medical insurance premiums for NBLMA members, if retiree medical
insurance benefits are upgraded for another bargaining unit during the
term of this MOU.
2. Effective December 24, 2005
a. Overview
A new Defined Contribution Plan will be established to set aside funds
for employee medical expenses during retirement. This plan will
replace the existing Defined Benefit Plan ( "old plan "), which will be
phased out. The plan will be a Medical Expense Reimbursement Plan
( "MERP ") funded through an Integral Part Trust (IPT).
17
b. Structure
Each employee will have an individual MERP account for bookkeeping
purposes, called his or her "Employee Account." This account will
accumulate contributions to be used for health care expense after
retirement All contributions to the plan are either mandatory employee
contributions or City paid employer contributions, so they are not
taxable to employees at the time of deposit. Earnings from investment
of funds in the account are not taxable when posted to the account.
Benefit payments are not taxable when withdrawn, because the plan
requires that all distributions be spent for specified health care
purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee): 1 % of Salary.
ii. Part B contributions (employer for employees fully converting to
new plan): $1.50 per month for each year of service plus year
of age (updated every January 1St based on status as of
December 31St of the prior year).
iii. Part C contributions (leave settlement as determined by
Association):
The Association has determined that the level of contribution
for all employees it represents will be 20% of sick leave. Any
future changes to this level of contribution shall be subject to
the following constraints. All employees within the Association
must participate at the same level, except that Safety members
and Non - safety members may have different levels. The
participation level should be specified as a percentage of the
leave balance on hand in each employee's leave bank at the
time of separation from the City. The computation of the cash
equivalent for leave hours to be included in the MERP will be
the same as the computation used when leave is "cashed out"
for other reasons. However, individual employees must not
have the option of receiving compensation for the value of the
same leave hours in the form of cash.
For example, if the Association wishes to specify 50% of the
leave balance as the participation level, then each member
leaving the City would have the cash equivalent of 50% of
whatever balance is in his or her leave account added to the
MERP, on a pre -tax basis. The remaining 50% would be paid
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in cash as taxable income. Again, individual employees would
not have the option to deviate from this breakout.
If the Association decides to participate in Part C contributions,
at any level, its members will not have the right to voluntarily
convert leave to cash for one full year prior to retirement, other
than "spillover" of amounts above the maximum accumulation
balance. However, taking leave for time off purposes would
not be constrained.
Sick leave balances may also be included in the MERP, but
only to the extent and within all the numeric parameters
specified in the Employee Policy Manual. Section 11.21 of the
Manual contains a schedule which specifies the amount of sick
leave that can be "cashed out," based on time of service. The
manual also caps the number of hours that can be "cashed out'
at 800, and species that sick leave hours are "cashed out" on
a 2 for 1 basis (800 hours of sick leave are converted to 400
hours for cash purposes). Sick leave participation is a
separate item from vacation/flex leave participation, and
thresholds must be separately identified by the Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each MERP Employee Account each pay period. Eligibility
for Part B contributions is set at five years of City employment. At that
time, the City will credit the first five years worth of Part B contributions
into the Employee Account (interest does not accrue during that
period). Thereafter, contributions are made monthly. Part C deposits,
if any, will be made at the time of employment termination.
Each Employee has a right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is
zero. This right is triggered upon retirement. If an employee leaves
the City prior to five years employment, only the Part A contributions
and Part C leave settlement contributions, if any, will be in the MERP
Employee Account. An employee who leaves City employment within
the first five years will not be entitled to any Part B contributions.
Distributions from MERP Employee Accounts are restricted to use for
health insurance and medical care expenses after retirement, as
defined by the Internal Revenue Code Section 213(d) (as explained in
IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
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includes premiums for medical insurance, dental insurance, vision
insurance, supplemental medical insurance, long term care insurance,
and miscellaneous medical expenses not covered by insurance for the
employee and his or her spouse and legal dependents — again only as
permitted by IRS Publication 502. Qualification for dependency status
will be determined by guidelines in IRC 152. If used for these
purposes, distributions from the MERP accounts will not be taxable.
Cash withdrawal for any other purpose is prohibited. Under recent IRS
Revenue Ruling 2005 -24, any balance remaining in the Employee
Account after the death of the employee and his or her spouse and /or
other authorized dependents (if any) must be forfeited. That particular
MERP Account will be closed, and any remaining funds will become
general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. The parties
also agree that for retirees selecting a CalPERS medical plan, or any
other plan with a similar employer contribution requirement, the
required City contribution will be withdrawn from the retiree's MERP
account.
C. Employee Participation
i. New Employees
Participation in the new plan is mandatory from the onset of
employment. New employees will make no contributions to the
old plan.
ii. Conversion Threshold for Current Employees
Members whose age plus years of service equal 45 or less at
the time of implementation must convert to the new plan.
Those with age plus years of service of 46 or more have the
option of fully converting or remaining in the old plan with
modified participation in the new plan.
iii. Current Employees Fully Converting to New Plan
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a
one -time City contribution to their individual IPT accounts that
equates to $100 per month for every month they contributed to
the current plan, to a maximum of 15 years (180 months). This
contribution will be made at the time of retirement, and only if
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the employee retires from the City. No interest will be earned
in the interim.
Employees in this category will make no further contributions to
the existing plan, and will no longer participate in it. The parties
agree that this one time payment by the City satisfies the
requirement in paragraph E1.b. of Section 4 (Fringe Benefits)
of the previous MOUs regarding an accounting and potential
distribution of contributions upon discontinuation of the
previous version of the Retiree Medical Program.
iv. Current Employees Continuing to Participate in Some Elements
of Old Plan
Employees in this category will contribute a flat $100 per month
to the old plan for the duration of their employment. The
maximum benefit provided by the old plan at retirement is
$4800.00 per year, accruing at the current rate of $400.00 per
month. City share of each retiree's cost may be used for
anything authorized for the IPT program, rather than just for
Insurance Premiums for one of the City plans. There is no
cash out option for these funds.
Employees remaining on the old plan will also participate in the
IPT program, with Part A contributions being mandatory; no
Part B contributions; and Part C contributions if applicable.
Employees in this category will also receive an additional one-
time City contribution of $75 per month for every month they
contributed to the old plan prior to the date of implementation of
the new program, up to a maximum of 15 years (180 months).
This contribution will be made to the IPT account at the time of
retirement, and only if the employee retires from the City. No
interest will be earned in the interim.
d. Retroactivity
Limited retroactivity is provided for employees who retired from the City
during the period covered by the contract in which this new program is
implemented, but before the program is implemented. For those
employees who retired under the old program during this period, the
provision for increased flexibility in the use of the $4800.00 maximum
(accruing at $400 per month) benefit will apply. In addition, a MERP
account will be opened for each employee in this category, and a
contribution of $75 per month for each month of prior contribution to
the old plan will be deposited by the City.
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No other provisions of the new program are applicable to employees in
this category, and no provisions of the program are applicable to any
other existing retirees.
e. Administration
A vendor will be selected by the City to administer the MERP. The
contract expense for program -wide administration by the vendor will be
paid by the City. However, .specific vendor charges for individual
account transactions that vary according to the investment actions
taken by each employee, such as fees or commissions for trades, will
be paid by each employee.
The City's Deferred Compensation Committee will have the authority to
determine investment options that will be available through the plan.
f. Value of Benefit
For all purposes, the MERP shall be valued at 1 % of salary on which
PERS retirement is based (Part A); plus .25% of other compensation
(Part B).
F. Tuition Reimbursement
NBLMA 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 $1,000.00 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 Human
Resources Director.
SECTION 5. MISCELLANEOUS PROVISIONS
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager determines that
a reduction in the work force is warranted because of actual or anticipated
reductions in revenue, reorganization of the work force, a reduction in municipal
services, a reduction in the demand for service or other reasons unrelated to the
performance of duties by any specific employee. Reductions in force are to be
accomplished, to the extent feasible, on the basis of seniority within a particular
Classification or Series and this Section should be interpreted accordingly.
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1. Definitions
a. "Layoffs" or "Laid off' shall mean the non—disciplinary termination of
employment.
b. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on' which the
employee was first granted permanent status in their current
Classification or any Classification within the Series, subject to the
following:
i. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series;
ii. Seniority shall include time spent on industrial leave, military
leave and leave of absence with pay, but shall not include
time spent on any other authorized or unauthorized leave of
absence.
C. "Classification" shall mean one or more full time positions identical
or similar in duties and embraced by a single job title authorized in
the City budget and shall not include part—time, seasonal or
temporary positions. Classifications within a Series shall be ranked
according to pay (lowest ranking, lowest pay).
d. "Series" shall mean two or more Classifications within a
Department which require the performance of similar duties with
the higher ranking Classification(s) characterized by the need for
less supervision by superiors, more difficult assignments, more
supervisory responsibilities for subordinates. The City Manager
shall determine those Classifications, which constitute a Series.
e. "Bumping Rights ", "Bumping" or "bump" shall mean the right of an
employee, based upon seniority within a series, to displace a less
senior employee in a lower Classification within the Series. No
employee shall have the right to Bump into a Classification for
which the employee does not possess the minimum qualifications
such as specialized education, training or experience.
2. Procedures
In the event the City Manager determines to reduce the number of
employees within a Classification, the following procedures are applicable:
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a. Temporary and probationary employees within any Classification
shall, in that order, be laid off before permanent employees.
b. Employees within a Classification shall be laid off in inverse order
of seniority;
C. An employee subject to layoff in one Classification shall have the
right to Bump a less senior employee in a lower ranking
Classification within a Series, provided, however, that the
determination of the employee to be terminated from the position of
Lifeguard shall be based on seniority within the Series. An
employee who has Bumping Rights shall notify the Department
Director within seven (7) working days after notice of layoff of
his/her intention to exercise Bumping Rights.
d. In the event two or more employees in the same Classification are
subject to layoff and have the same seniority, the employees shall
be laid off in inverse order of their position on the eligibility list or
lists from which they were appointed. In the event at least one of
the employees was not appointed from an eligibility list, the
Department Director shall determine the employee(s) to be laid off.
3. Notice
Employees subject to lay —off shall be given at least thirty (30) days
advance notice of the layoff or thirty (30) days pay in lieu of notice. In
addition, employees laid off will be paid for all accumulated paid leave,
holiday leave (if any), and accumulated sick leave to the extent permitted
by the Personnel Resolution.
4. Re— Employment
Permanent and probationary employees who are laid off shall be placed
on a Department re— employment list in reverse order of layoff. The re-
employment list shall remain in effect until exhausted by removal of all
names on the list. In the event a vacant position occurs in the
Classification which the employee occupied at the time of layoff, or a
lower ranking Classification within a Series, the employee at the top of the
Department re employment list shall have the right to appointment to the
position, provided, he or she reports to work within seven (7) days of
written notice of appointment. Notice shall be deemed given when
personally delivered to the employee or deposited in the U.S. Mail,
certified, return receipt requested, and addressed to the employee at his
or her last known address. Any employee shall have the right to refuse to
be placed on the re— employment list or the right to remove his or her
24
A
C.
E.
F
name from the re- employment list by sending written confirmation to the
Human Resources Manager.
5. Severance Pay
Permanent employees who are laid off shall, as of the date of lay -off,
receive one week severance pay for each year of continuous service with
the City of Newport Beach.
Discipline
Any discipline shall be in accordance with the Department SOP and the
Employee Policy Manual.
Health and Fitness Evaluations
All NBLMA members shall participate in the Department Fitness Program.
Provision for Sun Protection
1. The City will provide for one pair of sunglasses per year for each unit
employee. The cost allowance will be determined through reference to
the cost of a base line pair.
2. The City agrees to provide an additional $$300.00 (not restricted to use at
Lifeguard Store) per year in sun protection materials for all unit
employees.
3. Each unit employee shall receive an annual skin cancer screening will be
conducted either on or off duty at the Department's discretion. Employees
directed to receive this screening off duty shall receive one (1) hour of
compensatory time off as compensation.
Fitness Equipment and Exercise Time
At a time, during the life of this MOU, selected by NBLMA, the City will provide up
to $3,000.00 per year towards the purchase of fitness equipment to be used off
duty for the intended benefit of NBLMA for the term of this agreement. The
actual equipment to be purchased shall be recommended by NBLMA, and shall
require the final approval of the Fire Chief. Unit employees shall be allowed up
to three (3) hours per week for physical fitness training.
Lifeguard Officers Schedule
Lifeguard Officers shall continue to work a 4 -10 schedule, unless the schedule is
modified through standard departmental procedures.
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G. Employee Policy Manual
The City and LMA have agreed on implementation of the City's revised
Employee Policy Manual.
H. Direct Deposit
All Unit employees shall participate in the City's Direct Deposit Program.
I. Part-Time Conversion
Part-time Lifeguard IV employees converted to full -time status in January 2000
shall utilize their original Lifeguard IV hire date as their anniversary date. Any
changes resulting from this change shall be prospective only.
Executed this day
ATTEST:
(O
NEWPORT BEACH
W
2005:
MANAGEMENT ASSOCIATION
CITY OF NEWPORT BEACH
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
Robin Clauson, City Attorney
26
Newport Beach Lifeguard Management Association Represented Classifications
Lifeguard Officer
Lifeguard Captain
Lifeguard Captain - Boat
Lifeguard Captain - Dive
Lifeguard Battalion Chief
Lifeguard Battalion Chief - Dive
27
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
December 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: Memorandum of Understanding with Marine Safety Officers Association
RECOMMENDATION:
Approve the Memorandum of Understanding (MOU) with the Marine Safety Officers
Association (MSOA) for the eighteen month period of January 2005 through June 2006.
DISCUSSION:
Background:
The MOU with MSOA expired on December 31, 2004. As with the MOUs with other
employee associations, one of the most important issues was an improved retiree medical
program. The complexity of this issue, and other issues of interest to MSOA, extended the
negotiation period. We have concluded negotiations and reached tentative agreement on a
new MOU, which is consistent with direction from the City Council and with provisions for the
first eighteen months in MOUs with other safety employee associations. MSOA members
have ratified the agreement.
MOU Provisions:
1. Term: 18 months
2. Salary Adjustments:
• January 2005
c, 3% across the board
n 9% market adjustment for
contribution to retiree medical
• July 2007
o 3% across the board
Lifeguard Officer 3% July 2006, plus 1% for
MOU with Marine Safety Officers Association
December 13, 2005
Page 2
3. Flex Leave:
• Eliminate "2nd tier"
• Convert some leave accrual to longevity pay
4. Health Benefit:
• $674 per month January 2005
• $724 per month January 2006
5. Retiree Medical Benefit: Effective December 31, 2005, the City will provide a new retiree
medical program.
6. Classification Titles: Change titles as follows, with provision that compensation
comparisons with other agencies will be based on actual job duties, not job titles.
Marine Safety Captain to Lifeguard Battalion Chief
Marine Safety Lieutenant to Lifeguard Captain
Marine Safety Officer to Lifeguard Officer
Funding Availability:
The provisions of this MOU were anticipated during preparation of the 2005 -06 budget, and
sufficient funds are included in the budget.
Submitted by:
Sharon Wood
Assistant City Manager
Attachment: Memorandum of Understanding between the City of Newport Beach and the
Newport Beach Marine Safety Officers Association