HomeMy WebLinkAbout4 - MOUs for Bargaining UnitsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
September 11, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, Assistant City Manager
949 -644 -3002, dkiff @city.newport- beach.ca.us
SUBJECT: Labor Negotiations — New MOUs with Miscellaneous Employee Bargaining Units
and PEA and FFA; Supplemental MOUs with PEA and FFA; Non -MOU
Agreement with Key and Management Personnel
ISSUE:
Shall the City enter into new 3 -year MOUs,
MOUs with most of the non - safety employees
and a change to the retirement plan?
RECOMMENDATION:
two supplemental MOUs and up to five 10 -year
who work for the City, including salary increases
1. Authorize the Mayor to execute comprehensive new 3 -year Memoranda of Understanding
(MOUs) with the Newport Beach City Employees Association (CEA), the Newport Beach
Employees League (League) and the Newport Beach Professional and Technical
Employees Association (Prof- Tech);
2. Authorize the Mayor to execute supplements to the existing MOUs with the Police
Employees Association (PEA) and the Newport Beach Fire Fighters Association (FFA) that
incorporate an employee- funded 2.5% at 55 retirement program for non - safety personnel
with the California Public Employees Retirement System (PERS) and
3. Authorize the Mayor to execute specific new 10 -year Memoranda of Understanding (MOUs)
with CEA, League, Prof -Tech, PEA, and FFA limiting future negotiations to change the
proposed 2.5% at 55 PERS plan and its employee -paid nature; and
4. Authorize the same level of benefits (same as non - safety miscellaneous employees) for
"Key and Management" personnel.
DISCUSSION:
The City Council has nearly completed negotiations in accordance with the Myers - Milias -Brown
Act ( "MMBA') with three bargaining units. MMBA is the state law (California Government Code
§3500 et seq) that the City must follow regarding negotiating wages, benefits, and working
conditions with our employees. The MMBA is intended to:
• "Promote full communication between public employers and their employees by providing a
reasonable method of resolving disputes regarding wages, hours, and other terms and conditions
of employment between public employers and public employee organizations; and to
Misc. MOUs
September 11, 2007
Page 2
• "Promote the improvement of personnel management and employer - employee relations within
the various public agencies in the State of California by providing a uniform basis for recognizing
the right of public employees to loin organizations of their own choice and be represented by
those organizations in their employment relationships with public agencies. "
The MMB Act, among other things, sets forth:
• The right of city employees to organize themselves.
• The right of city employees to be represented.
• The right to form an "agency shop" (all persons working within specific classifications must be
members of the employees' organization).
• The obligation of an employer to "meet and confer" on employment matters;
• A path for mediation when necessary.
The three bargaining units involved in the most recent discussions with the Council are:
• City Employees Association ( "CEA ") — library staff, recreation, clerical, administrative support, more
• Newport Beach Employees League ( "League ") — primarily the staff in General Services and Utilities
• Newport Beach Professional and Technical Employees Association ( "Prof - Tech ") — engineers,
building inspectors, IT staff, more
CEA, the League, and Prof -Tech are often referred to as the "Miscellaneous" group of
associations. The contract terms for the Miscellaneous group expired June 30, 2007. There is
a "Key and Management" designation for division managers and others — Key and Management
personnel are not an association, but generally get the benefit level of the Miscellaneous units.
Department directors are included within Key and Management.
Current Benefits
Retirement Benefits. Most Newport Beach city employees do not receive Social Security,
because the City does not pay into Social Security. Today, City employees' pension benefits
include a "2.0% at 55" Defined Benefit ( "DB ") Plan from PERS and a "3% at 50" DB Plan for
safety employees. Retirement benefits are calculated using a member's years of service credit,
age at retirement, and final compensation (highest twelve month average salary).
EXAMPLE:
Senior Police Dispatcher (dispatchers are not "swom" personnel)
PERS -able Compensation at last year of service = $80,000
Tenure in the system = 30 years
Retirement Age= 55
2% of compensation x 30 years = $48, 000 retrement benefit per year.
Each public agency that participates in CaIPERS does so via a contract. The contract sets forth
the type of retirement program plus the City's and CaIPERS' respective obligations to fund the
City's program, invest funds, and make retirement payments.
Each year, CaIPERS informs the City what the City's "employer contribution rates" will be for the
coming fiscal year. CaIPERS estimates these rates, typically expressed as a percentage of
overall payroll, based on:
• The benefit level promised to City employees by the City;
• An actuarial valuation of the City plan assets' ability to meet long -term pension
obligations using CalPERS' investment estimates.
Misc. moos
September 11, 2007
Page 3
Because CaIPERS' rates are based on payroll, and because the MOUs (and sometimes
CaIPERS) define certain benefits (like uniform allowances) as benefits similar enough to salary
that the benefits affect retirement, these benefits are considered "PERS- able." In other words,
awarding these benefits to an employee will result in an increase to the employee's retirement
benefit (and typically an increase to the City's employer contribution rates).
How the Health Benefit Works. The City has a "cafeteria plan" that allows full -time personnel to
choose their medical plan and providers from a variety of options. The City pays about $774
per month for safety and non - safety employees. If an employee chooses to pay more for their
health care, they pay that out -of- pocket. If they choose to pay less, they receive that in
compensation or can accrue it in an (IRS) 'Section 125" plan.
How the MERP Works. The Medical Expense Reimbursement Plan or "MERP" has become the
colloquial term for the City's new Retiree Medical Program. This "Integral Part Trust' program
has been in place since January 2006. The program provides a vehicle for employees to
accumulate funds for medical expenses after separation from the City. This DC MERP Plan
replaced a previous DB MERP Plan. Here's how it works:
• Current Retirees receive their DB payment (essentially $400 per month) by direct deposit into their
MERP accounts.
• Each active employee and new hire deposits 1% of salary (mandatory contribution) into his or her
MERP account each month. After 5 years employment the City provides partial matching funds
(today generally $1.50 per month per employee), based.on a multiple of years of service plus years of
age. When these employees retire or otherwise separate service, the funds in the account essentially
"belong" to them However, once employees have left City service, the City's financial obligation
regarding medical costs is minimal.
As a result of the MERP, the City's Other Post - Employment Benefit ( °OPEB ") liability has been
capped. It will not get any larger, but it will get smaller over time, eventually approaching zero.
Other MOU- driven benefits (holidays, flex leave, special pays, certification pay, scholastic
achievement pay, tuition reimbursement, and more) are within existing MOUs.
Proposed Benefit Levels in the New MOUs
As a part of the MMBA negotiations process, the City and the five employee groups
representing non - safety employees have reached the following 'tentative agreement." The
tentative agreement must be confirmed by the City Council via this agenda item's authorization
to execute new MOUs and amendments to existing MOUs.
In short, the major changes proposed for the new MOUs (compared to the existing MOUs) are
as follows:
SUMMARY OF MAJOR MOU TERMS
Term. CEA, Prof -Tech, and the League's MOUs with the City would cover the period
of July 1, 2007 through June 30, 2010.
Salary Increases. Wage increases of:
• 2% retroactive to July 1, 2007;
• 2.5% effective January 1, 2008;
• 2.5% effective July 1, 2008, and
• 4% effective July 1, 2009.
Misc. mous
September 11, 2007
Page 4
This results in a total compensation change of 11 % over a 36 -month period.
Retirement Benefits. The 2% at 55 PERS defined benefit retirement plan would be
replaced by an employee -paid 2.5% at 55 PERS defined benefit retirement plan for all
full -time non - safety personnel, effective January 1, 2008. The employees would pay
for this by directing that about 3.42% of an overall 11% wage increase program over
three years would go to cover the cost of the difference between the 2% at 55 plan and
the 2.5% at 55 plan (3.42% of payroll). Please see the Staff Report dated September
11, 2007 regarding the Resolution of Intention to amend our PERS Contract for more
information about the employee -paid nature of this retirement plan. Using the example
we used on Page 2, then, the proposed MOU would affect this person as follows:
EXAMPLE:
Senior Police Dispatcher
PERS -able Compensation at last year of service (assumes 1.1% net raise) = $80,880
Tenure in the system = 30 years
Retirement Age= 55
2.5% of compensation x 30 years = $60,660 retirement benefit per year.
Supplemental 10 -year MOU — Retirement Only. Each employee group with
employees receiving the 2.5% at 55 retirement plan would have to agree (1) not to
negotiate to change the employee- funded nature of the plan; and (2) not to negotiate
to change the 2.5% at 55 PERS plan itself between July 1, 2007 and,June 30, 2017.
Health Benefit Increases. Cafeteria plan increases of $100 per employee per month
starting in January 2008; another $100 per employee per month starting in January
2009, and another $75 per employee per month starting in January 2010. MERP
contributions paid by the employer would rise from $1.50 per month for the roughly 85
employees who have fully converted to MERP and have five years of service $2.50 per
month for each of these employees (note: number of eligible employees converting
will grow over time).
Holidays. For December 2007, the planned half -day holiday on Monday, December
24'" and on Monday, December 31'� would become full -day holidays. No other holiday
changes are proposed.
Certification Pay. Some employees would be eligible for a flat -rate sum of money
annually (up to $200 for a Public Works Certificate, for instance) and for a 1% to 5%
salary increase on an ongoing basis if (a) the employee is in a job classification
making him or her eligible for this "certification pay;" and (b) if the Department Director
agrees that the certification is beneficial to that job classification as it serves the city.
Why this MOU proposal? Recruitment and Retention
Newport Beach competes with other public agencies and with the private sector for our
employees (both to recruit them and to retain them). The City draws from a labor pool
consisting mostly of people with relevant experience who are residents of Orange County,
western Riverside County, and Long Beach.
Human Resources agencies discuss an impending "human capital crisis" that will affect the
nations' workforce in the next several years. This crisis stems from the large number of aging
"baby boomers" in the population and the smaller number of young people who follow behind
Misc. MOUs
September 11, 2007
Page 5
them. A recent State personnel report states that there are more than 70 million baby boomers
in the workforce versus about 40 million in the next generation.
This aging national workforce is affecting the government employee candidate pool at a faster
rate than within the private sector because government employees tend to be older than
employees in the private sector. Statistics show that in the next five years, the State of
California will struggle to replace 34% of its workforce. Some factors that contribute to this crisis
in government are:
• Past employment patterns (growth /downsizing, hiring freezes, early retirement buyouts);
• Declining appeal of public service;
• Lower retirement eligibility than private sector;
• Regulations that hamper the retaining or rehiring of older employees; and
• Cut -backs in training that have depleted the qualified candidates.
Acquiring and retaining high - quality talent is critical to our efficiency, effectiveness and to the
service that we provide to the citizens. As the job market becomes more competitive we will
also need to be more selective in our choices, since poor hiring decisions can produce long-
term negative effects (high training and development costs, high turnover costs, low morale, and
worst yet, poor customer service). Recruitment is one of the activities that impacts most
critically on the performance of a service organization.
We experience difficulty in filling some of our positions, with this twist: we have been able to
attract many well - qualified candidates and dozens of job applications (if not hundreds) at the
entry level. But when we look for the more experienced professional or management level
people, sometimes the applications come up short
Some of the comments we have heard and some of the challenges we face in attracting and
retaining employees are:
• Newport Beach's cost of living is high and employees can't afford to live here, which
requires them to commute;
• Neighboring communities are expensive to live in as well, causing some employees to
reside in the Inland Empire and elsewhere;
• Commutes are challenging particularly during the summer months;
• Cost of gasoline to commute is high;
• Working conditions are unappealing and space is cramped; and
• Some employee benefits, including retirement, are low compared to other competitor cities.
More about How Retirement Benefits Impact Recruitment/Retention. As some of the key
Orange County cities that we compete with move to a higher benefit level to attract and retain
employees, our 2% at 55 retirement benefit can discourage candidates from those cities from
applying for positions here (they would lose the service credit upgrade at their current agency).
With several more cities moving to enhanced retirement programs, we can assume we will have
more difficulty retaining current employees as experienced employees will be tempted to move
to a city that has an enhanced retirement program prior to retirement. Chart 1 shows how
retirement benefits for non - safety employees compare with other local agencies.
Misc. A40Us
September 11, 2007
Page 6
Chart 1 — Retirement Benefits in Other Nearby Agencies
This Agenda Item. If approved by the City Council, this agenda item would authorize the
Mayor to execute a number of MOUs (attached) — generally, the MOUs are as follows:
• A new 3 -year MOU between the City and CEA
• A new 3 -year MOU between the City and Prof -Tech
• A new 3 -year MOU between the City and League
• A supplemental MOU (relating to the 2.5% at 55 PERS Plan) that amends the current
MOU between the City and PEA accordingly;
• A supplemental MOU (relating to the 2.5% at 55 PERS Plan) that amends the current
MOU between the City and FFA accordingly; and
Up to five separate supplemental MOUs that extend — for a 10 -year duration — the
proposed 2.5% at 55 PERS plan such that employee groups agree not to negotiate for a
different plan and agree not to negotiate to amend the employee -paid nature of the 2.5%
at 55 plan.
Funding Availabilitv:
Funding for these proposed changes- is included in the adopted FY 2007 -08 City Budget —
therefore a budget amendment is not required to accomplish the changes. Chart 2 is an
estimate of the costs of each element of the MOU package, at least for FY 2007 -08:
Anaheim
2.7 at 55
Mission Viejo
2.7 at 55
Orange
2.7 at 55
Irvine
2.7 at 55
Santa Ana
21 at 55
pending Jan 2009
La Palma
2.7 at 55
Los Alamitos
2.7 at 55
OCFD (non - safety)
2.7 at 55
San Juan Capistrano
2.7 at 55
Costa Mesa
2.5 at 55
pending
Fountain Valley
2.5 at 55
Garden Grove
2.5 at 55
Laguna Beach
2.5 at 55
pending 2010
RSM
2.5 at 55
Santa Marg H2O Dist
2.5 at 55
Brea
2.0 at 55
Dana Point
2.0 at 55
Fullerton
2.0 at 55
Huntington Beach
2.0 at 55
Newport Beach
2.0 at 55
Lake Forest
2.0 at 55
Tustin
2.0 at 55
Seal Beach
2.0 at 55
This Agenda Item. If approved by the City Council, this agenda item would authorize the
Mayor to execute a number of MOUs (attached) — generally, the MOUs are as follows:
• A new 3 -year MOU between the City and CEA
• A new 3 -year MOU between the City and Prof -Tech
• A new 3 -year MOU between the City and League
• A supplemental MOU (relating to the 2.5% at 55 PERS Plan) that amends the current
MOU between the City and PEA accordingly;
• A supplemental MOU (relating to the 2.5% at 55 PERS Plan) that amends the current
MOU between the City and FFA accordingly; and
Up to five separate supplemental MOUs that extend — for a 10 -year duration — the
proposed 2.5% at 55 PERS plan such that employee groups agree not to negotiate for a
different plan and agree not to negotiate to amend the employee -paid nature of the 2.5%
at 55 plan.
Funding Availabilitv:
Funding for these proposed changes- is included in the adopted FY 2007 -08 City Budget —
therefore a budget amendment is not required to accomplish the changes. Chart 2 is an
estimate of the costs of each element of the MOU package, at least for FY 2007 -08:
Misc. MOUs
September 11, 2007
Page 7
Chart 2 — Cost Estimate of Proposed MOU Changes, FY 2007 -08
Salaries
$
1,013,202
— 2% retroactive to July 2007
FY 2007 -08 City Operating Budget
$ 172,334,677
— 2.5% in Jan 2008
0.74%
Retirement
$
-
- 2.5% at 55 Plan - effective 1.1 -08
Medical Benefit
— MERP ($1.50 to $2.50tmonth)
$
4,190
-- Cafeteria (s100tmo more in January 2008)
$
252,600
Certification Pay (rough estimate)
$
7,000
2 Half -Day Holidays
$
120,924 '
Total Value of Proposed Changesl
$ 1,397,916
Total Cash Value of Proposed Changes
1 $ 1,279,9921'
FY 2007 -08 City Operating Budget
$ 172,334,677
Cash Value % of City Operating Budget
0.74%
' Holiday estimate represents value of benefit, not cost. City budget
already includes funding for hours worked.
Prepared and Submitted by:
- in�
Dav Ciff
Assistant City Manager
Attachments: City -CEA MOU (new)
City- Prof/Tech MOU (new)
City- League MOU (new)
Supplemental MOU - City PEA
Supplemental MOU - City-FFA
10 -year Retirement Plan/Employee -Paid Nature MOU
Agenda Item No. 4
September 11, 2007
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, 2007 to June 30, 2010 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.
B. Duration of Memorandum
1. Except as specifically provided otherwise, any ordinance, resolution
or action of the Qty Council necessary to implement this MOU shall
be considered effective as of July 1, 2007. This MOU shall remain in
full force and effect until June 30, 2010, 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
2
times for new employee contact, but they cannot reasonably deny such
contact.
E. Conclusiveness
With the exception of a separate MOU covering retirement issues, 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 Emplovees
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
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. Sala
Effective the pay period beginning June 23, 2007, salaries shall be
increased by 2 %.
Effective the pay period beginning December 22, 2007, salaries shall be
increased by 2.5 %.
Effective the pay period beginning June 21, 2008, salaries shall be
increased by 2.5 %.
Effective the pay period beginning June 20, 2009, salaries shall be
increased by 4 %.
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.
al
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 Includina Holidav(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
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
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 4151 hour
worked in the higher classification.
P. Certificate Pay
No later than sixty (60) days following the ratification of this Memorandum
of Understanding, the City and Association will meet to develop a certificate
pay proposal for non - required job related certificates beneficial to City
operations.
L. Bi- lingual Pav
Upon determination of the Department Director that an employee's ability to
speak, read and /or write in Spanish contributes to the Department providing
better service to the public, the employee shall be eligible to receive one
hundred fifty ($150.00) dollars per month in bi- lingual pay. The certification
process will confirm that the employee is fluent at the street conversational
level in speaking, reading and /or writing Spanish. Employees certified shall
receive bi- lingual pay the first full pay period following certification.
Additional languages may be certified for compensation pursuant to this
section by the Department Director with the concurrence of the Human
Resources Director.
SECTION 3. — Leaves
A. Flex Leave
7
Members shall accrue Flex leave at the following rates:
Years of Continuous Accrual per Annual
Service Pav 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.
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 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 (spill over pay) 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.
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.
L.
A
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. Flex
leave may be granted on an hourly basis. Any fraction over an hour
shall be charged to the next full hour.
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.
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
C.
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. 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.
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 Emolovees
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.
T
Sick leave may be granted on an hourly basis.
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.
D. Holidav 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
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July 4
1 gt Monday in Sept.
November 11
4w Thurs. in November
Last'' /2 of working day
December 25
Last ''Y2 of working day
January 1
3' Monday in February
Last Monday in May
3"t Monday in January
July 1st - 1 day
In 2007 only, Christmas Eve and New Years Eve will be observed as full
day holidays.
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.
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 and mother (including step), brother, sister, wife,
husband, child, grandparents and the Employee's spouse's father, mother,
brother, sister, 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. — Frinue 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,
appropriate coverage levels and other health programs. The
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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 $774. In addition, the
City shall contribute the minimum CalPERS participating employee'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 22, 2007, the City's
contribution towards the Cafeteria Plan will increase to $874 (plus
the minimum CalPERS participating employee's contribution).
Effective the pay period beginning December 20, 2008, the City's
contribution towards the Cafeteria Plan will increase to $974 (plus
the minimum CalPERS participating employee's contribution).
Effective the pay period beginning December 19, 2009, the City's
contribution towards the Cafeteria Plan will increase to $1,049 (plus
the minimum CalPERS participating employee'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.
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X
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 Proarams
1
2.
IRS Section 125 Flexible Spendina 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. An Association member may
request that medical, child care and other eligible expenses be paid
or reimbursed by the Section 125 Plan 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.
Disabilitv 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.
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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 terminates 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 4t" 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. Separate MOU
Pursuant to a separate MOU between the City and Association the
City will implement the 2.5 % @55 retirement formula, effective
January 1, 2008.
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.
The City is not responsible for, nor does it make any representation
regarding the payment of benefits to unit members.
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Effective January 1, 2007, the City increased the base salary of all
members by 1.5 %, and then deducted that same amount as a mandatory
employee contribution. For tax purposes, the contributions, although
designated employee contributions, are being paid by the employer in lieu
of contributions by the employee. The contributions are deemed "picked -
up" and treated as employer contributions, thereby excluding the
employee's gross income until distributed. Employees cannot opt out of
the "pick -up," or receive the contributed amounts directly instead of having
them paid to the plan. Participation at the same level will continue to be
mandatory for members of the Association. In accordance with
correspondence received from a legal expert retained by the City, this
amount will not be taxable, except for Medicare. Minor changes to other
compensation related items that are calculated from base salary will also
result from this administrative change.
The Association agrees with the procedural change, and acknowledges
that members who leave City employment prior to vesting in the LIUNA
pension plan will still have no right to return of amounts contributed, or
other recourse against the City concerning LIUNA.
The Association and LIPEC -LIUNA 777 agree to defend, indemnify and
hold harmless the City for its actions pursuant to this section.
F. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit" retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees.
and (then) existing retirees have been administratively classified into one of
four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006 was less than
50 (46 for public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
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d. Category 4 - Employees who had already retired from the City
prior to January 1, 2006, and were participating in the previous
retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Medical Expense Reimbursement
Program Plan (MERP).
a. For employees in Category 1, the program is structured as
follows:
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
separation. All contributions to the plan are either mandatory
employee contributions or City paid employer contributions, so they
are not taxable to employees at the time of deposit. Earnings from
investment of funds in the account are not taxable when posted to the
account. Benefit payments are not taxable when withdrawn, because
the plan requires that all distributions be spent for specified health
care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $1.50 per month for
each year of service plus year of age (updated every January 1st
based on status as of December 31st of the prior year). Effective
January 2008, this contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all
employees it represents, subject to the following constraints. All
employees within the Association must participate at the same level,
except that Safety members and Non- safety members within an
Association may have different levels. The participation level should
be specified as a percentage of the leave balance on hand in each
employee's leave bank at the time of separation from the City.
For example, if the Association wishes to specify 50% of the leave
balance as the participation level, then each member leaving the City,
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or cashing out leave at any other time, would have the cash equivalent
of 50% of the amount that is cashed out added to the MERP, on a
pre -tax basis. The remaining 50% would be paid in cash as taxable
income. Individual employees would not have the option to deviate
from this breakout.
The Association has decided to participate in Part C contributions at
the level of zero percent (0 %) flex and sick. This amount may be
changed, on a go forward basis, as part of a future meet and confer
process. However, the participation level must be the same for all
employees within the Association except that Safety members and
Non - safety members within an Association may have different levels.
Additionally, the purpose and focus of these changes should be
toward long -term, trend type adjustments. Due to IRS restrictions
regarding "constructive receipt," the City will impose restrictions
against frequent spikes or drops that appear to be tailored toward
satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the MERP Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Section 11.21
of the Manual contains a schedule, which specifies the amount of sick
leave that can be "cashed out," based on time of service. The manual
also caps the number of hours that can be "cashed out' at 800, and
specifies that sick leave hours are "cashed out' on a 2 for 1 basis (800
hours of sick leave are converted to 400 hours for cash purposes).
Sick leave participation is a separate item from vacation /flex leave
participation, and thresholds must be separately identified by the
Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each MERP Employee Account each pay period. Eligibility
for Part B contributions is set at five years of vested City employment.
At that time, the City will credit the first five years worth of Part B
contributions into the Employee Account (interest does not accrue
during that period). Thereafter, contributions are made bi- weekly.
Part C deposits, if any, will be made at the time of employment
separation.
in
Each Employee has a, right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is
zero. This right is triggered upon separation. If an employee leaves
the City prior to five years employment, only the Part A contributions
and Part C leave settlement contributions, if any, will be in the MERP
Employee Account. Such an employee will not be entitled to any Part
B contributions. The exception to this is a full -time employee,
participating in the program, who leaves the City due to industrial
disability during the first five years of employment. In such cases, the
employee will receive exactly five years worth of Part B contributions,
using the employee's age and compensation at the time of separation
for calculation purposes. This amount will be deposited into the
employee's MERP account at the time of separation.
Distributions from MERP Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as
defined by the Internal Revenue Code Section 213(d) (as explained in
IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
includes premiums for medical insurance, dental 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 Employee Account will be closed, and any remaining funds will
become general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum 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.
b. For employees in Category 2, the program is the same as for
those in Category 1, with the following exception:
in
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 MERP accounts that equates
to $100 per month for every month they contributed to the previous
"defined benefit" plan, to a maximum of 15 years (180 months). This
contribution will be made only if the employee retires from the City and
at the time of retirement. No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the
City prior to implementation of the new program will only receive Part
B contributions back to January 1, 2006 when they reach five years
total service.
c. For employees in Category 3, the program is the same as for
those in Category 2, with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active work force.
Instead, the City will contribute $400 per month into each of their
MERP accounts after they retire from the City, to continue as long as
the employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to
the City. The maximum benefit provided by the City after retirement is
$4,800.00 per year, accruing at the rate of $400.00 per month. There
is no cash out option for these funds, and they may not be spent in
advance of receipt.
Employees in this category will also receive an additional one -time
City contribution of $75 per month for every month they contributed to
the previous plan prior to January 1, 2006, up to a maximum of 15
years (180 months). This contribution will be made to the MERP
account at the time of retirement, and only if the employee retires from
the City. No interest will be earned in the interim.
d. For employees (retirees) in Category 4. the structure is very similar
to the previous retiree medical program, except that there is no cost
share requirement, and the $400 City contribution after retirement can
be used for any IRS authorized purpose, not lust City insurance
premiums.
Effective July 1, 2006, a MERP account has been opened for each
retiree in this category, and the City will contribute $400 per month to
each account as long as the retiree or spouse remains living.
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3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be paid
by the City. However, specific vendor charges for individual account
transactions that vary according to the investment actions taken by each
employee, such as fees or commissions for trades, will be paid by each
employee.
The City's Deferred Compensation Committee, or its successor committee,
will have the authority to determine investment options that will be available
through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1 % of salary on which PERS retirement is based
(Part A); plus .25% of other compensation (Part B).
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 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.
SECTIONS. — 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
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extent feasible, on the basis of seniority within a particular Classification or
Series and this Section should be interpreted accordingly.
DEFINITIONS
"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; and
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 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.
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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
Employee Policy Manual.
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
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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
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
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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.
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
25
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,
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,
i
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 Resources 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 Board's
decision. The City Manager's 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.
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.
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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.
(c) Probationary Release
An employee who alleges that his or her probationary release
was based on discrimination by the City, may submit a
grievance within ten (10) days after receipt of the Notice of
Failure of Probation.
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Salary on Reclassification
The City will amend its Employee Policy Manual to provide for a minimum
salary increase of five percent (5 %) upon reclassification (not to exceed the
maximum of the new salary range).
J. Safety Shoes
A Safety shoe allowance in the amount of $125 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.
M. Direct Deposit
All employees shall participate in the payroll direct deposit system.
29
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. 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.
Signatures are on the next page.
30
Executed this day of 2007
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
Robin Clauson, City Attorney
Teresa Craig, President
Paul Bechely, Negotiation Team
31
EXHIBIT A
CITY EMPLOYEES ASSOCIATION
Administrative Assistant
Buyer
Cultural Arts/Grant Coordinator
Department Assistant
Fiscal Clerk
Senior Fiscal Clerk
Fiscal Specialist
Graphics & Printing Specialist
Harbor Resources Specialist
Inventory Analyst
Librarian I
Librarian II
Librarian II, (Mariners)
Librarian III
Librarian IV
Library Assistant
Library Clerk I
Library Clerk II
Senior Library Clerk
License Inspector
Mail Processing Clerk
Mail Processing Clerk, Sr.
Marketing Specialist
Office Assistant
Printing Services Supervisor
Public Works Specialist
Recreation Coordinator
Recreation Coordinator, Assistant
Records Specialist
Senior Recreation Leader II
32
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, 2007 to June 30, 2010 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, 2007. This MOU shall remain in full
force and effect until June 30, 2010, 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.
1
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. Emplovee 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. 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.
OA
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; and
(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
With the exception of a separate MOU covering retirement issues, this MOU
contains all of the covenants, stipulations, and provisions agreed upon by the
parties. Therefore, for the fife 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.
G. 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.
H. Agencv 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.
4. The collection of Association dues and /or service fees shall
continue to be handled through the payroll deduction process.
5. NBEL agree to defend, indemnify and hold harmless the City for its
action pursuant to this section.
SECTION 2. — Compensation
WIMM=J
Effective the pay period beginning June 23, 2007, salaries shall be increased by
2 %.
Effective the pay period beginning December 22, 2007, salaries shall be
increased by 2.5 %.
Effective the pay period beginning June 21, 2008, salaries shall be increased by
2.5 %.
F1
3
Effective the pay period beginning June 20, 2009, salaries shall be increased by
4 %.
In addition to the increases set forth above, the Equipment Operator I salary
shall be increased by 5 %, effective June 23, 2007.
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
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. Comaensation
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 Holidav(s)
For the purpose of calculating overtime, holidays and pre - scheduled
vacation or flex leave occurring during the regular work week will count as
time worked. The floating holiday is excluded from this provision.
5
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.
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 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
C.1
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 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 5p.m. and 5a.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.
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 %.
H. Acting Pav
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 Pav
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 1- $110
Grade II - $220
Grade III - $330
Grade IV - $440
2. Backflow Certification - $220
3. Qualified Applicator Certificate - $110. for each category up to a maximum
of $330.
4. Smog License - $275
5. Fire Mechanic State Level I - $110
6. Fire Mechanic State Level II - $220
7. Certified Arborist - $110
8. ASE Certification - $55 and $220 for possessing a current ASE Master
Truck Technician and $220 for possessing a current ASE Master
Automobile Technician certification.
9. Commercial Drivers License, Class A - $220
10. Commercial Drivers License, Class B - $165
11. Public Works Certificates* I and II $200 (each).
*18 -20 Jr. College units each.
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.
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SECTION 3. - Leaves
A. Flex Leave
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
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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
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 (78) 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 (spill over pay) 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 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.
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 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.
m
C.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. 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:
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.
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(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.
D. Holiday Leave
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
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 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
July 1 st - 1 day
In 2007 only, Christmas Eve and New Year's Eve will be observed as full
day holidays.
12
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).
2. 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.
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 and mother (including step), brother, sister, wife,
husband, child, grandparents and the Employee's spouse's father,
mother, brother, sister, 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 thaflex or vacation
leave balance be reduced below one hundred and sixty (160) hours.
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SECTION 4. — Frinne 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 $774. In addition, the City
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.
Any unused Cafeteria Plan funds shall be payable to the employee as
taxable cash back. Employees shall be allowed to change coverage in
accordance with plan rules and during regular open enrollment periods.
Effective the pay period beginning December 22, 2007, the City's
contribution towards the Cafeteria Plan will increase to $874 (plus the
minimum CalPERS participating employers contributions).
Effective the pay period beginning December 20, 2008, the City's
contribution towards the Cafeteria Plan will increase to $974 (plus the
minimum CalPERS participating employers contribution).
Effective the pay period beginning December 19, 2009, the City's
contribution towards the Cafeteria Plan will increase to $1,049 (plus the
minimum CalPERS participating employers contribution).
NBEL members who do not want to enroll in any medical plan offered by
the Qty must provide evidence of group medical insurance coverage, and
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3.
II
execute an opt -out agreement releasing the City from any responsibility or
liability to provide medical insurance coverage on an annual basis.
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.
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. An Association member may request that
medical, child care and other eligible expenses be paid or reimbursed by
the Section 125 Plan 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.
2. 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.
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Concurrent with the commencement of this program, employees assumed
responsibility for the payment of the disability insurance cost in the
amount of one (1%) percent of base salary. Simultaneously, the City
increased base wages by one (1 %) 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 terminates 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. 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 4t' Level 1959 Survivor Insurance Benefit, $500 Lump
Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of
Living Adjustment and the Pre - Retirement Option 2 Death Benefit
(Section 21548).
2. Separate MOU.
Pursuant to a separate MOU between the City and Association the City
will implement the 2.5 % @55 retirement formula, effective January 1,
2008.
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E. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the previous
"defined benefit" retiree medical program with a new "defined contribution"
program. The process of fully converting to the new program will be ongoing for
an extended period. During the transition, employees and (then) existing retirees
have been administratively classified into one of four categories. The benefit is
structured differently for each of the categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006, whose
age plus years of service as of January 1, 2006 was less than 50 (46 for
public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006, whose
age plus years of service was 50 or greater (46 for public safety
employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City prior to
January 1, 2006, and were participating in the previous retiree medical
program.
2. Program Structure
This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program
Plan (MERP).
a. For employees in Cateqory 1, the program is structured as follows
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
separation. All contributions to the plan are either mandatory employee
contributions or City paid employer contributions, so they are not taxable to
employees at the time of deposit. Earnings from investment of funds in the
account are not taxable when posted to the account. Benefit payments are
not taxable when withdrawn, because the plan requires that all distributions
be spent for specified health care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1 % of Salary
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Part B contributions (employer contributions): $1.50 per month for each
year of service plus year of age (updated every January 1st based on.status
as of December 31st of the prior year). Effective January 2008, this
contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all employees it
represents, subject to the following constraints. All employees within the
Association must participate at the same level, except that Safety members
and Non - safety members within an Association may have different levels.
The participation level should be specified as a percentage of the leave
balance on hand in each employee's leave bank at the time of separation
from the City.
For example, if the Association wishes to specify 50% of the leave balance
as the participation level, then each member leaving the City, or cashing out
leave at any other time, would have the cash equivalent of 50% of the
amount that is cashed out added to the MERP, on a pre-tax basis. The
remaining 50% would be paid in cash as taxable income. Individual
employees would not have the option to deviate from this breakout.
The Association has decided to participate in Part C contributions at the
level of zero percent (0 %) flex and sick leave. This amount may be
changed, on a go forward basis, as part of a future meet and confer
process. However, the participation level must be the same for all
employees within the Association except that Safety members and Non -
safety members within an Association may have different levels.
Additionally, the purpose and focus of these changes should be toward
long -term, trend type adjustments. Due to IRS restrictions regarding
"constructive receipt," the City will impose restrictions against frequent
spikes or drops that appear to be tailored toward satisfying the desires of a
group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the MERP Part C
contributions, but only to the extent and within all the numeric parameters
specified in the Employee Policy Manual. Section 11.21 of the Manual
contains a schedule, which specifies the amount of sick leave that can be
"cashed out," based on time of service. The manual also caps the number
of hours that can be "cashed out" at 800, and specifies that sick leave hours
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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 vacationtflex 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 vested City employment. At that time,
the City will credit the first five years worth of Part B contributions into the
Employee Account (interest does not accrue during that . period).
Thereafter, contributions are made bi- weekly. Part C deposits, if any, will
be made at the time of employment separation.
Each Employee has a right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is zero.
This right is triggered upon separation. If an employee leaves the City prior
to five years employment, only the Part A contributions and Part C leave
settlement contributions, if any, will be in the MERP. Employee Account.
Such an employee will not be entitled to any Part B contributions. The
exception to this is a full -time employee, participating in the program, who
leaves the City due to industrial disability during the first five years of
employment. In such cases, the employee will receive exactly five years
worth of Part B contributions, using the employee's age and compensation
at the time of separation for calculation purposes. This amount will be
deposited into the employee's MERP account at the time of separation.
Distributions from MERP Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as defined by
the Internal Revenue Code Section 213(d) (as explained in IRS Publication
502), and specified in the Plan Document. In accordance with current IRS
regulations and practices, this generally includes premiums for medical
insurance, dental 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
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Employee Account will be closed, and any remaining funds will become
general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum 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.
b. For employees in Cateaory 2. the program is the same as for those in
Cateaory 1. with the following exception:
In addition to the new plan contributions listed above, current employees
who fully convert to the new plan will also receive a one -time City
contribution to their individual MERP accounts that equates to $100 per
month for every month they contributed to the previous "defined benefit"
plan, to a maximum of 15 years (180 months). This contribution will be
made only if the employee retires from the City and at the time of
retirement. No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the City
prior to implementation of the new program will only receive Part B
contributions back to January 1, 2006 when they reach five years total
service.
c. For emplovees in Category 3, the program is the same as for those in
Cateaory 2. with the following exception:
For employees in this category, the City will make no Part B contributions
while the employees are still in the active work force. Instead, the City will
contribute $400 per month into each of their MERP accounts after they
retire from the City, to continue as long as the employee or spouse is still
living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to the
City. The maximum benefit provided by the City after retirement is $4,800
per year, accruing at the rate of $400 per month. There is no cash out
option for these funds, and they may not be spent in advance of receipt.
Employees in this category will also receive an additional one -time City
contribution of $75 per month for every month they contributed to the
previous plan prior to January 1, 2006, up to a maximum of 15 years (180
months). This contribution will be made to the MERP account at the time of
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retirement, and only if the employee retires from the City. No interest will be
earned in the interim.
d. For employees (retirees) in Cateaory 4. the structure is very similar to
the previous retiree medical program, except that there is no cost share
requirement. and the $400 Citv contribution after retirement can be used for
any IRS authorized purpose, not lust City.insurance premiums.
Effective July 1, 2006, a MERP account has been opened for each retiree
in this category, and the City will contribute $400 per month to each account
as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The contract
expense for program -wide administration by the vendor will be paid by the City.
However, specific vendor charges for individual account transactions that vary
according to the investment actions taken by each employee, such as fees or
commissions for trades, will be paid by each employee.
The City's Deferred Compensation Committee, or its successor committee, will
have the authority to determine investment options that will be available through
the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is based (Part
A); plus .25% of other compensation (Part B).
F. 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 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.
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SECTIONS. 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
"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; and
(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.
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.
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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 straightforward '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.
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.
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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.
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.
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.
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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 Schedulinq 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 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
25
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
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,
26
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 Resources
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 Manager's 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.
27
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.
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
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, may submit a grievance within ten (10) days
after receipt of the Notice of Failure of Probation.
28
J. Accident Reportina
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:
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 S6198). 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.
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.
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.
29
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.
N. Voluntary Training Program
The Department shall, when the need for additional or replacement individuals
possessing a commercial driver's license is anticipated, establish a voluntary
training program that will allow employees to qualify for the license.
O. In- Service Supervisory and Safetv 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.
30
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.
S. 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, related
Departmental Rules and Regulations; Employee /Employer Resolutions and a
copy of this Memorandum of Understanding. More information may be included.
T. Direct DeDOSit
All newly hired employees shall participate in the payroll direct deposit system.
U. 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).
V. Duration
The terms of this MOU are to remain in full force and effect from the first pay
period of fiscal year 2007 -2008 through the last pay period of fiscal year 2009-
2010. Proposals for the succeeding MOU must be submitted on or before March
1, 2010 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
31
Newport Beach, this MOU shall be in force and effect as of the first day of the
first pay period of fiscal year 2007 -2008.
W. 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.
Signatures are on the next page.
32
Executed this day of
By:
Mayor
ATTEST:
City Clerk
2007:
NEWPORT BEACH EMPLOYEES LEAGUE
0
M
0
0
M
APPROVED AS TO FORM:
City Attorney
Tim Morell, President
James Randal, Vice President
Patrick Newett, Secretary
Darren Foster, Treasurer
Larry Lykins, Staff
33
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
Electrician .
Electrical Services Crew Chief
Electrical Services Supervisor
Equipment Maintenance Supervisor
Equipment Mechanic
Equipment Mechanic II
Equipment Mechanic, Senior
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
Senior Services Van Driver
Sign & Paint Shop Technician
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Storm Drain /Street Sweeping Crew Chief
Storm Drain /Street Sweeping Supervisor
Street Maintenance Crew Chief
Street Maintenance Supervisor
Traffic Painter
Transfer Station Operator
Transfer Station Crew Chief
Tree Maintenance Services Technician
Utilities Crew Chief
Utilities Equipment Specialist
Utilities SCADA Coordinator
Utilities SCADA Technician
Utilities Specialist
Utilities Supervisor
Utilities Video Technician
Water Production Operator
Water Production Coordinator
Water Production Supervisor
35
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, 2007 through June 30,
2010. 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
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, 2007. This MOU shall remain
in full force and effect until June 30, 2010, 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, 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
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;
and
Q) 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
With the exception of a separate MOU covering retirement issues,
this MOU contains all of the covenants, stipulations, and provisions
agreed upon by the parties. Therefore, for the life of this MOU, neither
a.
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. 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 23, 2007, salaries shall be
increased by 2 %.
Effective the pay period beginning December 22, 2007, salaries shall be
increased by 2.5 %.
Effective the pay period beginning June 21, 2008, salaries shall be
increased by 2.5 %.
Effective the pay period beginning June 20, 2009, salaries shall be
increased by 4 %.
4
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
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 Holidav(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 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
5
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.
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 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 p.m. and 5 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 Civil Engineer and Junior Civil Enaineer
Employees in the class of Associate Civil 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.
I
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
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 Pav
Individuals in the classifications of Building Inspector (l,ll, Senior and
Principal), Construction Inspection Supervisor and Residential Building
Records Inspector shall be eligible for Certificate Pay of 1% per
certification, to a maximum of 5 %. The following ICC and other
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 ICC 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
Pre - stressed Concrete Special Inspector
Structural Steel & Welding Special Inspector
Certificate of Construction Inspection for Traffic Signals and Highway
Lighting
PADI Certified Open Water Scuba Diver
No later than sixty (60) days following the ratification of this Memorandum
of Understanding, the City and Association will meet to develop an
expanded certificate pay program for non - required job related certificates
beneficial to City operations. Payment for any single additional
certificate(s) will not exceed two percent (2 %). The overall five percent
(5%) maximum will remain unchanged.
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 Pav
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.
L. Bi- lingual Pav
Upon determination of the Department Director that an employee's ability
to speak, read and /or write in Spanish contributes to the Department
providing better service to the public, the employee shall be eligible to
receive One Hundred Fifty ($150.00) Dollars per month in bi- lingual pay.
The certification process will confirm that the employee is fluent at the
street conversational level in speaking, reading and /or writing Spanish.
W
Employees certified shall receive bi- lingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this
section by the Department Director with the concurrence of the Human
Resources Director.
M. Assignment Pay
An employee appointed by the Planning Director to regularly perform the
duties of the Zoning Administrator as set forth in the Zoning Code shall be
provided temporary assignment pay at five percent (5 %) above the
employee's base pay, to be paid on an hourly basis. This assignment pay
is temporary and will cease once the employee is no longer performing
the duties of the Zoning Administrator.
An Assistant Planner appointed by the Planning Director to regularly
perform the lead duties at the Plan Check Counter shall be provided
temporary assignment pay at five (5 %) percent above the employee's
base pay, paid on an hourly basis. This assignment pay will cease once
the employee is no longer performing the duties of the lead person at the
Plan Check Counter.
SECTION 3 - Leaves
A. Flex Leave
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
E
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 (6) 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 (6) 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 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 (spill over pay) 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.
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.
m
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 31 st of the following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. 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.
iil
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
2.
3.
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
Method of Use
(a) General
Sick leave may not be taken in excess of that actually
accrued.
(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 of the Employee Policy
Manual.
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
12
0
employee's option. Eligible sick leave days converted to paid
vacation shall require the approval of the Department Director.
Holidav 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 Years Eve
New Years 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
July 1't - 1 day
In 2007 only, Christmas Eve and New Years Eve will be observed as full
day holidays.
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).
2. In addition, for all employees 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.
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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 and mother (including step), brother, sister, wrfe,
husband, child, grandparents and the Employee's spouse's father,
mother, brother, sister, 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. — Frinae Benefits
A. Insurance
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits
Information Committee has been established to allow the City to
present data regarding carrier and coverage options, the cost of
those options, appropriate coverage levels and other health
programs. The purpose of the BIC is to provide each employee
group with information about health insurance /programs and to
receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
14
The City has implemented an IRS qualified Cafeteria Plan. The City
contribution toward the Cafeteria Plan shall be $774. 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 period.
Effective the pay period beginning December 22, 2007, the City's
contribution towards the Cafeteria Plan will increase to $874 (plus
the minimum CalPERS participating employer's contribution).
Effective the pay period beginning December 20, 2008, the City's
I
ontribution towards the Cafeteria Plan will increase to $974 (plus
the minimum CalPERS participating employer's contribution).
Effective the pay period beginning December 19, 2009, the City's
contribution towards the Cafeteria Plan will increase to $1,049
(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.
4. Vision Insurance
15
f.
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. IRS Section 125 Flexible SDendina 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. An Association member may
request that medical, child care and other eligible expenses be paid
or reimbursed by the Section 125 Plan out of the employee's
account. The base salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
2. Disabilitv 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
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.
EEP
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 terminates 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. Separate MOU
Pursuant to a separate MOU between the City and Association the City
will implement the 2.5 % @55 retirement formula, effective January 1,
2008.
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. The City is not responsible for, nor does it make any
representation regarding, the payment of benefits to unit members.
17
Effective January 1, 2007, the City increased the base salary of all
members by 1.5 %, and then deducted that same amount as a mandatory
employee contribution. For tax purposes, the contributions, although
designated employee contributions, are being paid by the employer in lieu
of contributions by the employee. The contributions are deemed "picked -
up" and treated as employer contributions, thereby excluding the
employee's gross income until distributed. Employees cannot opt out of
the "pick -up," or receive the contributed amounts directly instead of having
them paid to the plan. Participation at the same level will continue to be
mandatory for members of the Association. In accordance with
correspondence received from a legal expert retained by the City, this
amount will not be taxable, except for Medicare. Minor changes to other
compensation related items that are calculated from base salary will also
result from this administrative change.
The Association agrees with the procedural change, and acknowledges
that members who leave City employment prior to vesting in the LIUNA
pension plan will still have no right to return of amounts contributed, or
other recourse against the City concerning LIUNA.
The Association and UPEC -LIUNA 777 agree to defend, indemnify and
hold harmless the City for its actions pursuant to this section.
F. Retiree Medical Benefit
1. Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit" retiree medical program with a new `defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one
of four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2006.
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006 was less
than 50 (46 for public safety employees).
c. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
18
d. Category 4 - Employees who had already retired from the City
prior to January 1, 2006, and were participating in the previous
retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Medical Expense Reimbursement
Program Plan (MERP).
a. For employees in Category 1, the program is structured as
follows:
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 separation. All contributions to the plan are either
mandatory employee contributions or City paid employer
contributions, so they are not taxable to employees at the time of
deposit. Earnings from investment of funds in the account are not
taxable when posted to the account. Benefit payments are not
taxable when withdrawn, because the plan requires that all
distributions be spent for specified health care purposes.
Contributions will be in three parts.
Part A contributions (mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $1.50 per month for
each year of service plus year of age (updated every January 1St
based on status as of December 31St of the prior year). Effective
January 2008, this contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by Association):
The Association will determine the level of contribution for all
employees it represents, subject to the following constraints. All
employees within the Association must participate at the same level,
except that Safety members and Non - safety members within an
Association may have different levels. The participation level should
be specified as a percentage of the leave balance on hand in each
employee's leave bank at the time of separation from the City.
For example, if the Association wishes to specify 50% of the leave
balance as the participation level, then each member leaving the
19
City, or cashing out leave at any other time, would have the cash
equivalent of 50% of the amount that is cashed out added to the
MERP, on a pre -tax basis. The remaining 50% would be paid in
cash as taxable income. Individual employees would not have the
option to deviate from this breakout.
The Association has decided to participate in Part C contributions at
the level of zero percent (0 %) flex and sick leave. This amount may
be changed, on a go forward basis, as part of a future meet and
confer process. However, the participation level must be the same
for all employees within the Association except that Safety members
and Non - safety members within an Association may have different
levels. Additionally, the purpose and focus of these changes should
be toward long -term, trend type adjustments. Due to IRS restrictions
regarding "constructive receipt," the City will impose restrictions
against frequent spikes or drops that appear to be tailored toward
satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in, this section restricts taking leave for time off purposes
Sick leave balances may also be included in the MERP Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Section 11.21
of the Manual contains a schedule, which specifies the amount of
sick leave that can be "cashed out," based on time of service. The
manual also caps the number of hours that can be "cashed out" at
800, and specifies that sick leave hours are "cashed out' on a 2 for 1
basis (800 hours of sick leave are converted to 400 hours for cash
purposes). Sick leave participation is a separate item from
vacation /flex leave participation, and thresholds must be separately
identified by the Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each MERP Employee Account each pay period.
Eligibility for Part B contributions is set at five years of vested City
employment. At that time, the City will credit the first five years worth
of Part B contributions into the Employee Account (interest does not
accrue during that period). Thereafter, contributions are made bi-
weekly. Part C deposits, if any, will be made at the time of
employment separation.
20
Each Employee has a right to reimbursement of medical expenses
(as defined below) from the Plan until the Employee Account balance
is zero. This right is triggered upon separation. If an employee
leaves the City prior to five years employment, only the Part A
contributions and Part C leave settlement contributions, if any, will be
in the MERP Employee Account. Such an employee will not be
entitled to any Part B contributions. The exception to this is a full -
time employee, participating in the program, who leaves the City due
to industrial disability during the first five years of employment. In
such cases, the employee will receive exactly five years worth of Part
B contributions, using the employee's age and compensation at the
time of separation for calculation purposes. This amount will be
deposited into the employee's MERP account at the time of
separation.
Distributions from MERP Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as
defined by the Internal Revenue Code Section 213(d) (as explained
in IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
includes premiums for medical insurance, dental 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 Employee Account
will be closed, and any remaining funds will become general assets
of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum 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.
21
b. For emMovees in Category 2, the program is the same as for
those in Category 1. with the following exception:
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a one-
time City contribution to their individual MERP accounts that equates
to $100 per month for every month they contributed to the previous
"defined benefit" plan, to a maximum of 15 years (180 months). This
contribution will be made only if the employee retires from the City
and at the time of retirement. No interest will be earned in the
interim.
Employees in Category 2 who had less than five years service with
the City prior to implementation of the new program will only receive
Part B contributions back to January 1, 2006 when they reach five
years total service.
c. For employees in Category 3. the program is the same as for
those in Category 2, with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active work force.
Instead, the City will contribute $400 per month into each of their
MERP accounts after they retire from the City, to continue as long as
the employee or spouse is still living.
Each employee will contribute a fiat $100 per month to the plan for
the duration of their employment to partially offset part of this
expense to the City. The maximum benefit provided by the City after
retirement is $4,800per year, accruing at the rate of $400per month.
There is no cash out option for these funds, and they may not be
spent in advance of receipt.
Employees in this category will also receive an additional one -time
City contribution of .$75 per month for every month they contributed
to the previous plan prior to January 1, 2006, up to a maximum of 15
years (180 months). This contribution will be made to the MERP
account at the time of retirement, and only if the employee retires
from the City. No interest will be earned in the interim.
d. For emplovees (retirees) in Category 4 the structure is very
similar to the previous retiree medical program, except that there is
no cost share requirement, and the $400 Citv contribution after
retirement can be used for anv IRS authorized purpose, not lust City
insurance premiums.
22.
Effective July 1, 2006, a MERP account has been opened for each
retiree in this category, and the City will contribute $400 per month to
each account as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be paid
by the City. However, specific vendor charges for individual account
-transactions that vary according to the investment actions taken by each
employee, such as fees or commissions for trades, will be paid by each
employee.
The City s Deferred Compensation Committee, or its successor committee,
will have the authority to determine investment options that will be available
through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is
based (Part A); plus .25% of other compensation (Part B).
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 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.
SECTION 5. - Miscellaneous/Workina Conditions
A. Reductions in Force /Lavoffs
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
23
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; and
(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
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
24
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 Employee Policy Manual.
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.
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.
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:
PIR
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 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: 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
27
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
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.
r�7
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, 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. 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.
Direct Deposit
All employees shall participate in the payroll direct deposit system.
J. 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
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
City Attorney
Mike Wojciechowski, President
Paul Bechely, Negotiation Team
Io
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
Civil Engineer, Sr.
Junior Civil Engineer
City Surveyor
Code & Water Quality Enforcement Officer
Code & Water Quality Enforcement Trainee
Community Watch. Volunteer Coordinator /Marine Refuse Supervisor
Construction Inspection Supervisor
Emergency Services Assistant
Engineering Technician
Engineering Technician, Senior
Fire Information Systems Coordinator
GIS Analyst
GIS Coordinator
GIS Technician
Harbor Resources Supervisor
Harbor Resources Technician I
Harbor Resources Technician II
Information Technology Applications Analyst
Information Technology Applications Analyst, Senior
Information Technology Applications Coordinator
Information Technology Operations Coordinator
Information Technology Specialist
Information Technology Specialist, Senior
Information Technology Technician
Library Information Systems Coordinator
Management Assistant
Permit Technician
Permit Technician, Trainee
Permit Counter Supervisor
Planning Technician
Planner, Assistant
Planner, Associate
Planner, Senior
31
Public Works Inspector I
Public Works Inspector 11
Public Works Inspector, Senior
Residential Building Records Inspector
Revenue Auditor
Subtrade Plans Examiner
Survey Instrument Worker
Telecom /Network Coordinator
Telecom Specialist
Traffic Engineering Technician
Urban Forester
Water Conservation Coordinator
32
SUPPLEMENTAL
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND THE CITY EMPLOYEE ASSOCIATION
This Supplemental Memorandum of Understanding (MOU) sets forth the
agreement between the City of Newport Beach (City) and City Employee
Association (Association) for the implementation of the California Public
Employees Retirement System 2.5% @ 55 retirement formula. The City and
Association agree as follows:
2. The 2.5% @ 55 retirement program will be implemented on January 1,
2008. Plan options will remain unchanged.
3. Concurrently, the entire 3.42% cost of the plan change (2.42% employer
and 1% employee) will be added to the employee's rate pursuant to
California Retirement Code Section 20516. This will bring the total
employee contribution to 10.42 %. The City will continue to pay 7% towards
the employee share. Employees will pay the balance on a pre -tax basis
pursuant to IRS Code Section 414(h)(2).
4. Implementation of this agreement requires the affirmative vote of a majority
of the City's Miscellaneous Retirement Plan Members. If this does not
occur, the City and Association will reopen negotiations on retirement issues
only.
5. All other matters within the scope of representation are covered in the
Memorandum of Understanding between the City and Association dated
July 1, 2007 through June 30, 2010 and successor Memoranda.
6. 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. The
City and Association will meet and confer on those portions of the MOU
found invalid.
7. The term of this Supplemental MOU will be for 10 years, from July 1, 2007
through June 30, 2017. Neither party shall attempt to amend the provisions
contained herein during this 10 -year term.
Signatures are on the next page.
Executed this day of
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
0
Teresa Craig, President
0
Paul Bechely, Negotiation Team
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
City Attorney
yl /r %07 --�zt,3 -- -77�- `f
Newport Beach City Council
3300 Newport Boulevard
Newport Beach,CA
Re: 9/11/07 Newport Beach Retirement and Health Care Benefits
Richard A. Nichols
519 Iris Avenue
Corona del Mar, 92625
September 11, 2007
Ref: 907NBRtrmnt&HlthCr
Retirement Benefits
Most retirement benefits have been:
Defined Benefit- A contractual commitment to pay a certain amount each year.
Defined Contribution- An agreement to pay benefits from a pot of employer and
employee contributions. There is no legal commitment to pay forever, whatever the costs. When
the funds run out the contributions are zero.
Many of our large corporations and private businesses, have gone bankrupt and or have
reorganized in order to lose this defined benefit retirement and/or health care commitment.
900/6 of the nations 16 million public service workers have a binding commitment to
receive defined benefit contributions. 65% are slated to receive continued health benefits.
Retirement Health Care benefits are estimated as high as $100K/ covered worker.
The Government Accounting Standards Board, GASB, now requires larger state and
local plans to estimate unfunded liability. The problem is the GASB cannot force sate and local
plans to do so.
Cato Institute estimated, in a survey of 16 state and 11 local governments that the average
accrued liability of $135K for every covered worker. This debt was about 3 times the
conventional debt of these cities. This unfunded debt should be estimated and is now being taken
into account in rating new bonds issued by such public agencies. San Diego recently passed
generous retirement benefits and found their ability to issue new bonds at all was questioned.
We would like to see a Financial Report as called out by GASB for our Retirement &
Health Plans and particularly we would like to see discussed the handling of retroactive liability
and how these provisions are applied to retirees. Supervisor Moorlach also asked a good
question, can the Council commit the electorate to new tax without a vote of the people.
Finally, there is no discussion of health care costs now or how we are handling them for
retired personnel in the future.
Sincerely,
Richard Nic110
907 N B Rtrmnt& H Ith Csts
Program Ave Slry$K Yrs Wkd
Safety Personnel 3% 50 85.5 25
Full Time, NonSfty 2.505 $9.264 25
Present
w /FD+
Pers *Slry
Ret$K/Yr Sm72 -RA PrsRt%
PrsRt%
K$/yr
64.125 1410.75 23.212
.25.366
16.266
43.29 735.93 14.182
14.182
6.139
/'
Published by
AMERICAN INSTITUTE
for ECONOMIC RESEARCH
RESEARCH
REPORTS
Great Barrington, Massachusetts 01230 www.aier.org Vol. L XXIV No. 10 June 4, 2007
Retiree Health Benefits: Dancing with
the 800 -Pound Gorilla*
The twin trends of an aging population and rising health care costs
have long been pointing toward an escalating problem: the ballooning
cost'of retiree health benefits. In the private sector, businesses are
shifting costs to their workers and retirees. But in the public sector,
benefits remain exceptionally generous. Their future cost to taxpayers
is an enormous liability — unfunded and, until now, largely hidden
from the public. A new accounting rule will soon require state and
local governments to disclose this cost. The sticker shock could create
pressure to cut benefits or set aside reserves to pay for them. But
political pressures being what they are, it is just as likely that taxpay-
ers, having finally been given the bill, will be left to pay it.
The year 2006 saw two major revi-
sions in the Hiles governing retirement
benefits for American workers. The first
and more publicized overhaul was the
Pension Protection Act. Its net effect
will likely be to hasten the shift by pri-
vate- sector companies away from tra-
ditional defined - benefit pensions to ever
more reliance on defined - contribution
plans, such as 401(k)s.
The second change has now begun
to hit the public sector, specifically
state and local governments. Here, tra-
ditional pensions remain the norm, a
binding commitment made to nearly
90 percent of the sector's 16 million
workers. And here, also in contrast to
the private sector, generous retiree
health benefits remain the order of the
day. Some 65 percent of state -local
employees are slated to. receive con-
tinued health insprance upon retire-
ment, a far larger share than for pri-
vate- sector workers.
The potential costs to taxpayers of
the health care benefits that have been
promised to retired public- sector work-
ers have long been hidden, even as they
have ballooned along with the rising cost
*17tis article is by Dr. R.D. Name, an AIER
Visiting Research Fellow.
of health care. Now, however, state and
local governments are being required,
for the first time ever, to disclose their
estimated cost.
The price tag may be remarkably
high —more than $100,000 per covered
worker, according to initial estimates.
This is partly because government work-
ers often "retire" when they are rela-
tively young, in their 50s or even their
40s. Thus the benefits must be paid for
decades. Moreover, unlike pension
funds, these liabilities are rarely if ever
backed up by reserve funds (because no
law requires it), thus it costs govem-
ment officials almost nothing np -front
to promise generous.future benefits.
From theirperspective, it's cheaper than
paying higher wages, generosity is
costless, and they'll be out of office
when the bills came due.
Requiring public disclosure of this
hidden liability will highlight its enor-
mity. It has also made clear that paying
for retiree health care could drain tax-.
dollars away from other public services
or require higher taxes.
How did state and local benefits plans
get into this fix? Partly because govern-
ments require far less oversight of their
own civil service retirement plans than
they require of private- sector plans.
53
The Regulatory Vacuum
Retirement benefits for state and lo-
cal workers include pensions, which are
overwhelmingly of the traditional, de-
fined-benefit variety, and health insur-
ance. Our focus here is on the second
category, but it may help to take a brief
look at pensions first, to get some idea
of how lax the regulatory environment
has been.
Some six million state and local gov-
emment retirees are now drawing pen-
sions. The average annual pension has
reached $20,000 —and in individual
cases can exceed six figures. Not only
are such pensions often generous, they
are also fiw from Congress's reach. The
state-local domain is exempt from many
of the laws that govern the private sec-
tor, including the Pension Protection Act
of 2006.
Nor is there effective oversight (in
terms of enforcement) by any single
agency monitoring accounting stan-
dards. As an actuary with a national ac-
counting firm observes of state and lo-
cal pension practices,'°rhere's no over-
sight; there's no requirements; there's
no enforcement."
The Government Accounting Stan-
dards Board (GASB, pronounced gaz-
be), an independent board, is respon-
sible for proposing retirement -plan ac-
counting standards for states and lomh-
ties to follow. But GASB is a toothless
tiger, because it lacks enforcement pow-
ers or even the ability to speak out about
dubious practices.
In a telling historical footnote, in
1994 GASB gave carte blanche to state
and local governments to prick virtually
whatever accounting practices served
their purposes: Its own director at the
time was so appalled that he wrote a
10 -page dissenting tote. He pointed out
that the absence of clear guidelines was
an invitation for state and local govern-
ments to finagle the books.
GASB's weak oversight was high-
lighted by a recent pension-fiord scan-
dal in San Diego --and the inability of
GASB to publicize the problem.
Brought in to clean up the mess, former
SEC head Arthur Levitt concluded.in
2006 that city officials had deliberately
fudged the books to cover up deficits in
its pension funds, and criminal charges
have been filed. Well before that, GASB
had come to the same conclusion. Ac-
cordingly, when asked to sign off on
such shady practices, GASB refused.
But its charter prohibited it from criti-
cizing or even publicly commenting on
San Diego's tricky practices. Instead,
the outside world learned of the scandal
only after a whistle - blower from the
pension board sounded an alarm.
It is width[ this environment, marked
by a lack of oversight and the ease of
making promises someone else will
have to pay for, that retiree health in-
surance benefits have been lavishly con -
ferre"uu not financed And unlike
their, pension commitments, state and
local plans have had no obligation even
to disclose the future cost of retiree
health benefits.
77m $I Trt7Hon Surprise
Now that has changed. Last year, in
a surprising;. move, GASB decided to
shine a spotlight, on unfunded retiree
health benefits: Specifically, it now re-
quires larger state and Iced plans to
come clean by estimating-and disclos-
ing their estimated' future costs, begin-
ning this year. GASB cannot force state
and Iced plans to do so. But many states
require their benefit plans to adhere to
GASB's guidelines.
The new rule does not require that
state and local plans fund retiree health
benefits. It simply requires thatthe casts
be made public. The hope is that greater
transparency will eventually lead to
greater accountability, both in promis-
ing and in funding these benefits.
The costs that will be disclosed un-
der the new rule led economist Richard
Mattoon of the Federal Reserve Bank
of Chicago to describe retiree health
benefits as `The 800 Pound Gorilla in
the Room. ", In other words, the newly
disclosed liabilities am a huge unfunded
liability that can no.longer be ignored.,
. How big is the price.tag? Estimating..
the cog is difficult - after alt, nobody
knows what health care will look like,
let alone cost, 20 years from now. Pry
liminary estimates range from $700 bil-
lion to'$IA:trillion The latter figure,
from the Cato Institute, is [rased on a
survey of unfunded health costs in 16
state and 11 local governments, which
found an average accrued liability of
$135,000 for every covered worker.
Cato points out that this estimate
dwarfs the conventional debt of state
and local governments, which.reached
$568 billion in 2005.
This raises another issue. Unfunded
health benefits constitute a kind of hid-
den debt that properly should be taken
into account when rating a
municipality's ability to meet its obli-
gations. Until now, bond - rating agen-
cies such as Moody's, Standard and
Poor, and Fitch have paid little atten-
tion to this looming liability, partly be-
cause they lacked firm data. They are
taking a keen interest in the new esti-
mates, however, and high unfunded
costs could potentially influence their
ratings. The specter of spiraling un-
funded health benefits could lead to rat -
ings downgrades and higher interest
costs. -or, as in San Diego's pension
scandal, the inability to float new bond
issues at all.
One Solution: Cap the Liability
It is legally difficult for employers
to wriggle out of promised pension ben-
efits, but retiree health care benefits are
different. The courts have consistently
ruled that workers do nothave the same
legal claim to them. Given the legal
green light, private-sector, employers
have already cut back sharply on such
benefits; as their costs in the public sec-
tor become known, they may offer a
vulnerable target for cutbacks.
Another option would be to emulate
private companies and close such ben-
efits to new tires, a tactic known as'9ier-
ing." Pro inises made to the existing
population of retirees and workers could
be left untouched, while new employ-
ees would get less generous benefits.
However, this sort of gradualist ap-
proach would still leave some state and
local plans facing enormous unfunded
liabilities.
A more creative solution to over-
promised retiree health benefits can be
gleaned from a plan already introduced
by Goodyear Tire and Rubber Co. In an
accord reached with the-United .Steel-
workers union, Goodyear has agreed to
pay $1 billion into a trug find to cover
future benefits, with the union essen-
tially controlling the plan. The net ef-
fect is to cap .Goodyear s:liability,.and
thereby eliminate uncertainty (and re-
6
y
sponsibility) for the company as to the
size of future health care obligations.
This innovation, known as a "volun-
tary employees beneficiaries associa-
tion' (VEBA), is also being considered
by Detroit's Big Three car companies
and the United Auto Workers union. A
"Big Three VEBA" would entail pay-
ments by the companies of perhaps $65
billion (or about two - thirds of the $95
billion the Big Three owe retirees in
health benefits) to the UAW. The union
would then manage the retiree health
plan itself.
(The financial burden of retiree
health benefits was central to Daimler
Chrysler's May 2007 "sale" of Chrysler
to Cerberus. The latter, a private-equity
company, in effect paid Daimler noth-
ing for Chrysler beyond the promise to
Like on the company's $18 billion com-
mitment to retiree health care.)
The goal for the Big Three would be
to cut in half the estimated $30- per -hour
labor cost disadvantage they face vis -it-
vis Japanese companies operating with
U.S. plants but free of heavy burdens
for retiree benefits.
Maybe a similar arrangement could
be worked out in the public sector. Are
such unions as the American Federa-
tion of State, County, and Municipal
Employees likely to cooperate in any
such experiment? Perhaps we should
stay tuned to what the UAW decades to
do. Both unions have reputations for
militancy, but they may yet conclude
that fresh arrangements are called for in
the current competitive climate.
A key difference, however,, is that
businesses in the private sector are sub-
ject to the discipline of the marker. If
t heir costs continually exceed their rev -
t fiiw daisq�ed`eiate t&rfprWuctive ac-
tivity, they lose money and eventually
go out of business. By contrast, state
and local governments face no such
pressure. Nor do they face the same
regulatory oversight as private busi-
nesses. ('fhe latest eye - rolling example:
lawmakers in Texas have just proposed
a bill that would allow government bod-
ies in that state to ignore the new dis-
closure rules for retiree health, care
costs.) Free of proper oversight, elected
officials can winfrieads by raising ben -
efitawithout worrying about paying the
bill. When the bill eventually comes due,
they will probably have left office (tak-
ing along their own generous retirement
pages), and it will be left to tazpay-
ers to decide how to pay it. 0 .