HomeMy WebLinkAbout04 - MOU's for Bargaining UnitsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
December 14, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager
949 - 644 -3000, _d_kiff(a_)newportbeachca.gov
Terri L. Cassidy J.D., Human Resources Director
949 - 644 -3303, tcassidv(Wnewportbeachca.gov
SUBJECT: Resolutions 2010- _: Adopting Memoranda of Understanding with
Miscellaneous Bargaining Units (3) and Approval of the
Unrepresented Key & Management Compensation Plan; and
Resolutions 2010 - : Modifying the Paying and Reporting of the
Value of the Employer Paid Member Contribution
RECOMMENDATION:
1. Approve Resolutions adopting Memoranda of Understanding (MOU) between the
City of Newport Beach and the City Employees' Association (Attachment A);
between the City of Newport Beach and the Professional and Technical Employees'
Association (Attachment B); and between the City of Newport Beach and the
Employees' League (Attachment C);
2. Approve the Key and Management Compensation Plan (Attachment D), effective
July 1, 2010 through June 30, 2012; and
3. Adopt the resolutions (Attachment E) modifying how the City pays and reports the
value of the Employer Paid Member Contribution (EPMC) to the California Public
Employees' Retirement System (CaIPERS), as provided for in Memoranda of
Understanding and Key and Management Compensation Plan.
DISCUSSION:
CEA, Prof Tech, and League Negotiations
In August 2010, representatives from the City Employees' Association, Professional and
Technical Employees' Association, and Employees' League, began meeting and
conferring in good faith with City representatives Terri L. Cassidy, Human Resources
Director, Tracy McCraner, Administrative Services Director, and Bill Avery, with Avery &
Associates, to negotiate the terms of successor memoranda.
Adoption of Miscellaneous MOUs
December 14, 2010
Page 2
The City and CEA/Prof Tech (who negotiated jointly based on common interests and
efficiency), met a total of ten times between August and November 2010 to discuss
wages, benefits, and other terms and conditions of employment. The City and League
representatives met a total of nine times during the same months to discuss wages,
benefits, and other terms and conditions of employment.
Recognizing the growing concern over the rising cost of public employee pensions, and
consistent with the City's Fiscal Sustainability Plan adopted by the City Council on
January 12, 2010, negotiation discussions focused on the need for employees to
increase their share of PERS pension costs with the City. Throughout the meet and
confer process, CEA, Prof Tech, and League representatives expressed a willingness to
partially offset increased retirement costs, which occurred due to investment losses and
changes in actuarial assumptions, and to deal with a downturn in the local economy.
As detailed on the following page, employees in these units will, by January 2012,
contribute an additional 4.58% toward retirement through greater pick -up of the
employee contribution (referred to by PERS as the "Member Contribution "). That
amount, coupled with the 3.42% Miscellaneous employees are currently contributing,
will result in a total 8% employee contribution. The agreements reached represent a
collaborative process between the City and the Associations and could not have been
achieved without the professionalism and cooperation the members of CEA, Prof Tech,
and League demonstrated during the negotiations meetings.
In addition to the increased employee contribution toward PERS retirement, each of the
labor agreements include a provision for implementing a two -tier retirement system with
a 2 %&60 retirement formula for all newly hired Miscellaneous employees (all current
Miscellaneous employees are under the 2.5% 55 formula). Both the 2 % @60 plan and
the 2.5% 55 plan are "defined benefit" plans, where employees receive a defined
amount of benefit per month upon retirement. CaIPERS does not currently offer a
"defined contribution" or "hybrid" plan, where members would invest a defined amount
each year (or month) and receive back in retirement whatever that defined amount
earned over the years.
Under CaIPERS regulations, in order to adopt a two -tier plan all bargaining units
representing Miscellaneous employees must ratify the proposal. However, the
contracts for the Police Association (NBPA) and Firefighters Association (NBFA), which
also represent Miscellaneous employees, do not expire until December 2011. Since
these current Memoranda of Understanding do not include a provision for the two -tier
plan, ratification of the 2 %Ca)60 formula for Miscellaneous employees within NBPA and
NBFA will occur subsequent to future meet and confer discussions, which could be
started prior to the December 31, 2011 expiration date. The City could choose not to
hire new full -time employees in the Miscellaneous unit until such time as all units
representing Miscellaneous employees have approved a 2 % @60 plan for new hires.
Adoption of Miscellaneous MOUs
December 14, 2010
Page 3
In accordance with the Brown Act (Government Code §54957.6) authorizing City
Council to confer with the City's negotiators, the City and respective bargaining units
reached tentative agreements that include the following provisions:
• Two -year contract term, from July 1, 2010 through June 30, 2012.
• Employees to contribute an additional 4.58% toward the retirement benefit
through increases to the employee contribution as follows:
January 1, 2011 — 1.5%
July 2, 2011 —1.5%
January 1, 2012 — 1.58%
• Establish a 2 -tier retirement plan with a 2 %a60 formula for newly hired
Miscellaneous employees (subject to ratification by all Miscellaneous
bargaining units). Under the plan, employees will pay the full 7% of the
Member Contribution and the final salary computation will be the average 36
months highest salary. (Basic plan designs have a 7% employee contribution,
while enhanced plans, including 2.5% 55 have an 8% contribution.)
• The City will contribute an additional $100 per month for the cafeteria
allowance in January 2011 and an additional $100 in January 2012. As a
result, employees will receive $1,257 a month in cafeteria in Jan 2011 and
$1,357 a month in Jan 2012. Note: Cafeteria costs increased an average of
12% in recent years, leading to a net take -home reduction in pay. In 2011 and
2012, an employee with basic medical, dental and vision family coverage will
pay an estimated $160 and $307 more per month (see below) out of pocket:
• 2011 - $160 /month or $1,920 /year
• 2012 - $307 /month or $3,684 /year
• No increases to salaries for the remainder of 2010 and all of 2011. Effective
January 2012, salaries will be adjusted a minimum of 1.5 %, up to a maximum
of 3.0 %, based on the change in Consumer Price Index (CPI) between
November 2010 and November 2011. Note: By December 31, 2011,
employees in these groups will have gone 30 months without a salary
adjustment, while medical costs to the employee have increased.
• Effective the second pay period in January 2011, the 9/80 work schedule will
be modified to provide for alternating Fridays off only (other days no longer an
option).
• For employees in the League bargaining unit, the City will provide limited
certificate pay for the following highly specialized water, wastewater and
utilities skills and training: Cross Connection Specialist ($110 annually), Water
Utility Science ($200 annually), Water Distribution Operator Grade IV ($540)
and Grade V ($600 annually). This should apply to less than 10 employees.
Adoption of Miscellaneous MOUs
December 14, 2010
Page 4
The membership of the respective associations (CEA, Prof Tech and League) ratified
the agreements by majority vote. Each agreement does not become effective, per
Government Code §3505.1, until the governing body, i.e., City Council, takes action to
adopt it. MOU language changes are noted in italics in the respective MOUs.
How this Impacts a Typical Miscellaneous Employee
A typical employee will see his or her take -home pay reduced over the next several
years as employees contribute more to retirement and pay more for health benefits. By
January 2012, an employee making $60,000 per year ($5,000 per month) will see about
a $307 monthly reduction (about -8.8 %) in take -home pay from the pay received in
December 2010 (see example below):
Sample Salary and Deductions
As of
Jan 2011=
Jart 2012 —
December 2010
Dec 2011
June 2012
Cash Compensation:
Average Base Salary (assumes 1.5 %T Jan
$5,000
$5,000
$5,075
2012
City Caf Contribution
$1,154
$1,257
$1,357
Total Cash Contributions
$6,154
$6,257
$6,432
Deductions:
Medical, Dental & Vision Contributions
($1,293)
($1,481)
($1,629)
(assumes Family coverage)
PERS (3.42% as of 12/10, 4.92% as of
($171)
($246)
($406)
01/11, and 8% as of 01/12)
Other Benefit Costs (disability, retiree
($175)
($175)
($178)
medical & LIUNA)
Fed & State Taxes (13% for Fed /State
( $722)
($722)
($733)
+1.45% for Medicare)
Total Deductions
($2,361)
($2,624)
($2,946)
"Take Home" Salary (Net Pay)
$3,793
$3,633
$3,486
Difference from December 2010
-0-
($160) or -4.4%
($307) or -8.8%
Adoption of Miscellaneous MOUs
December 14, 2010
Page 5
Key & Management
The Key & Management group consists of unrepresented supervisory, managerial and
confidential employees (based upon the employee's job classification and duties), and
includes non - safety Department Directors. To maintain equity, the City has historically
provided Key & Management with the same changes to compensation and benefits as
employees in CEA, Prof Tech and League. The proposed Key & Management
Compensation Plan for the period July 1, 2010 through June 30, 2012, establishes pay
and benefit at the same level as the other three bargaining units, as follows: a total
4.58% increase to the PERS Member Contribution; adoption of a 2 %(CD-60 retirement
formula for new hires; monthly cafeteria increase of $100 effective January 2011 and
January 2012; and 1.5 % -3.0% salary increase effective January 1, 2012, subject to CPI.
These changes to the Key & Management Plan are listed in italics on the attached
document (Attachment D).
Per Government Code §20636 (c)(4), in order to implement changes to employee
contributions toward retirement benefits, the City Council must adopt a resolution for
each employee group specifying the terms of the change. The attached resolutions
(Attachment E) reduce the City's share of the Member Contribution (referred to as the
Employer Paid Member Contribution or EPMC) for employees represented by CEA,
Prof Tech, League, and the Key & Management group.
If the City Council approves adoption of the three Memoranda of Understanding and the
Key & Management Compensation Plan, and adopts the resolutions necessary to
implement the Employee Paid Member Contribution changes, Human Resources and
Administrative Services staff will work to implement the provisions as soon as
practicable.
Public Notice:
Public notice was fulfilled with the posting of the agenda and report for this item.
Fiscal Impact:
The additional employee contribution toward the PERS retirement, which will be a
4.58% contribution by January 2012, will offset the increased cost in cafeteria and pay
and provide an estimated $1.42 million in retirement costs savings between now and
June 2012. Figuring in increases in the cafeteria allowance and assuming a 1.5% CPI
change, the net savings to the City is $148,900 for the remaining 18 -month contract
period. This is shown in the chart on the next page:
Adoption of Miscellaneous MOUs
December 14, 2010
Page 6
The $148,901 savings does not take into consideration additional savings resulting from
the MOUs as follows:
Adopting a second tier for new hires saves significant resources in later years —
into the millions of dollars in five or ten years- but is estimated to save only a
small amount in the coming year.
By lowering the EPMC and therefore lowering the final year's retirement benefit
calculation, the City can expect to see its CalPERS rate slightly decline (after
known increases due to poor investment performance in 2008 -09) due to less
"PERS on PERS" cost (i.e. today, CalPERS considers the City's payment of
EPMC to be part of that employee's salary. Therefore, that employee's final year
salary can be higher by about 7.0% and his or her retirement benefits calculated
at 107% of final year's salary instead of at 100 %).
In conclusion, the City staff believes that these MOUs:
• Contain City salary and benefit costs through June 2012 for non - safety
personnel.
• Effectively transition the City's employees to being fully obligated for "their share"
of their retirement benefits;
• Secure a new, less generous tier for new hires, one that is more reflective of the
marketplace and where competitor agencies are headed. Doing so appropriately
positions the City for long -term stability.
• Protect and maintain the City's management rights, including its rights to
appropriately restructure, including layoffs.
• Allow the City to maintain competitiveness in attracting talented employees.
• Respect the role and rights of the employees as providers of public service and
as partners in the long -term success of the City and community.
As City Manager and Human Resources Director, we thank the employee groups and
the City Council for the collaborative and respectful way in which they have approached
these negotiations. These remain challenging and changing times for the City, and the
Salary
I Salary Adj 's
Additional Cafeteria
Association /Group
Contribution to
`
(assumes 1.5 0%c 4,
($100TJan 2011
and $100T Jan+
Net Fiscal Impact
EPMC
in Jan 2012);
2012
CEA
($290,819)
$46,044
$252,000
$7,225
Prof -Tech
($341,528)
$60,293
$225,600
($55,635)
League
($439,696)
$70,199
$374,400
$4,903
Key and Mgmt
($349,376)
1 $66,382
$177,600
($105,394)
Totals
($1,421,419) 1
$242,918
$1,029,600
$(148,901)
The $148,901 savings does not take into consideration additional savings resulting from
the MOUs as follows:
Adopting a second tier for new hires saves significant resources in later years —
into the millions of dollars in five or ten years- but is estimated to save only a
small amount in the coming year.
By lowering the EPMC and therefore lowering the final year's retirement benefit
calculation, the City can expect to see its CalPERS rate slightly decline (after
known increases due to poor investment performance in 2008 -09) due to less
"PERS on PERS" cost (i.e. today, CalPERS considers the City's payment of
EPMC to be part of that employee's salary. Therefore, that employee's final year
salary can be higher by about 7.0% and his or her retirement benefits calculated
at 107% of final year's salary instead of at 100 %).
In conclusion, the City staff believes that these MOUs:
• Contain City salary and benefit costs through June 2012 for non - safety
personnel.
• Effectively transition the City's employees to being fully obligated for "their share"
of their retirement benefits;
• Secure a new, less generous tier for new hires, one that is more reflective of the
marketplace and where competitor agencies are headed. Doing so appropriately
positions the City for long -term stability.
• Protect and maintain the City's management rights, including its rights to
appropriately restructure, including layoffs.
• Allow the City to maintain competitiveness in attracting talented employees.
• Respect the role and rights of the employees as providers of public service and
as partners in the long -term success of the City and community.
As City Manager and Human Resources Director, we thank the employee groups and
the City Council for the collaborative and respectful way in which they have approached
these negotiations. These remain challenging and changing times for the City, and the
Adoption of Miscellaneous MOUs
December 14, 2010
Page 7
strong partnership between the employees, the community they serve, and the Council
that guides our actions remains vital to our collective success.
Submitted by:
� CL
Dav iff
City Manager
Attachments:
Terri L. Cassidy
Human Resources Director
A - Resolution Adopting a Memorandum of Understanding with the City
Employees' Association
B - Resolution Adopting a Memorandum of Understanding with the Professional
and Technical Employees' Association
C - Resolution Adopting a Memorandum of Understanding with the Employees'
League
D — Key & Management Compensation Plan
E — Resolutions Modifying the Employer Paid Member Contribution for the
following groups:
(1) City Employees' Association
(2) Professional and Technical Employees' Association
(3) Employees' League
(4) Key & Management
ATTACHMENT A
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH CITY EMPLOYEES' ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution ", to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach City Employees' Association for the period of
July 1, 2007, through June 30, 2010; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach City Employees' Association have met and conferred in good
faith and agreed to modify the current Memorandum of Understanding, and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach City Employees' Association by adopting successor Memorandum of
Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the City Employees' Association shall be
provided in accordance with the provisions of the attached Memorandum of
Understanding (Exhibit A).
Section 2. The term of the Memorandum of Understanding shall be for 24
months, commencing retroactively to July 1, 2010, and will remain in full force and effect
through June 30, 2012.
Adopted this day of , 2010.
OUT
ATTEST:
City Clerk
Mayor of the City of Newport Beach
EXHIBIT A
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, 2010 through June 30, 2012 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.
2001 -50, 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.
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, 2010. This MOU shall remain in
full force and effect until June 30, 2012, 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
E
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 Employees
City permanent part-time employees are recognized to have due process
rights, in particular Skelly rights, as provided to regular employees.
Membership in NBCEA by part-time employees does not confer on same
recognition as a labor organization for purposes of collective bargaining.
H. Agency Shop
1. Unit employees, by majority vote, have elected for an Agency Shop
provision.
2. The Association shall comply with all statutory and legal
requirements regarding agency shop, should it be approved through
the election process. This will include all requisite procedures for
appeals, record - keeping, establishment of the service fee amount;
designating acceptable charities pursuant to Section 3502.5 of the
Government Code, etc.
3. Complying with agency shop provisions shall not be a condition of
employment. Enforcement shall be the responsibility of the
Association; utilizing appropriate civil procedures. The City will
cooperate with Association efforts to achieve enforcement.
3
i
4. The collection of Association dues and /or service fees shall continue
to be handled through the payroll deduction process.
5. The Association and UPEC -LIUNA 777 agree to defend, indemnify
and hold harmless the City for its action pursuant to this section.
SECTION 2. — Compensation
A. Salary
Effective January 1, 2012 salaries will be increased by an amount equal to
the increase in the Consumer Price Index (CPI) Los Angeles /Orange
County Urban Wage Earners Index for the 12 month commencing period of
November 2010 with a minimum 1.5% increase and a maximum 3%
increase.
B. Normal Overtime
1. Definitions
a. Miscellaneous Employee - An employee designated as a
Miscellaneous member of the Public Employees Retirement
System (PERS).
b. Normal Overtime — Normal overtime for Miscellaneous
employees is defined as any scheduled hours worked in
excess of the basic work week. For the purposes of this
section, the basic work week is 40 hours, or as determined by
the Department Director and approved by the City Manager
which occurs between a fixed and regularly recurring period of
168 hours - 7 consecutive 24 hour periods - beginning at
0001 on Saturday and ending at midnight the following Friday.
C. Hours Worked - Hours worked are defined as hours which
employees are required to be performing their regular duties
or other duties assigned by the City.
d. Incidental Overtime - Incidental overtime is any extension of
the basic work shift of less than 1/10 of an hour that is non -
recurrent.
4
2. Compensation
Normal overtime for all non - exempt employees shall be paid at one -
and- one -half (1 -1/2) times the hourly rate of the employee's bi-
weekly salary rate. Reporting of overtime on payroll forms will be as
prescribed by the Administrative Services Director. Incidental
overtime is not compensable.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays occurring during
the regular work week will count as time worked. The floating
holiday is excluded from this provision.
C. Standby Duty
1. Defined
a. To be ready to respond immediately to calls for service;
b. To be reachable by telephone;
C. To remain within a specified distance from his /her work
station; and
d. To refrain from activities which might impair the employee's
ability to perform his /her assigned duties.
2. Compensation
Standby duty shall be compensated at the rate of one (1) hour of
overtime compensation for each eight (8) hours of such duty.
Standby duty on holidays shall be compensated at the rate of two (2)
hours of overtime compensation for each (8) hours of standby duty.
Should the employee be required to return to work while on standby
status, the provisions pertaining to compensation for call -back pay
shall apply for the actual period of time the employee is in a work
status.
D. Call -Back Duty
1. Defined
Call -back duty requires the employee to respond to a request to
return to his /her work station after the normal work shift has been
W
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
n
the number of hours they spend in court, with a minimum of two (2) hours
of such compensation.
Acting Pav
NBCEA employees will be eligible to receive "acting pay" only after
completing 80 consecutive hours in the higher classification. Acting pay is
107.5% of the employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will be
granted for all hours worked above 40 hours beginning with the 41St hour
worked in the higher classification.
J. 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.
K. Bi- linqual Pay
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
Members shall accrue Flex leave at the following rates:
Years of Continuous
Service
1 but less than 5
5 but less than 9
Hrs Accrued per
Pav Period
5.54
6.15
F
Maximum
Annual
Allowable
Days
Balance (hours)
18
432.12
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
74412
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.
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.
M
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.
1
2.
Basis for Accrual /Full -Time Emplovees
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
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.
F
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.
C. Sick Leave
This section applies only to those Regular full -time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex
Leave program.
1. Basis for Accrual /Full -time Employees
Employees entitled to sick leave- with -pay shall accrue 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.
Sick leave may be granted on an hourly basis.
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[7
on
Approval
Sick leave may be granted only at the direction of or with the
approval of the Department Director and only for the purposes
defined in Section 11.2A of the Employee Policy Manual.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued
level of sick leave equal to or greater than the full value of 50 months
of accrued sick leave, and who have used six or less days of sick
leave during that calendar year will be permitted (only once per year)
to convert up to six (6) days of sick leave to either salary or paid
vacation at the value of 50% (maximum value of 3 days per year).
Eligible sick leave days converted to cash shall be at the employee's
option. Eligible sick leave days converted to paid vacation shall
require the approval of the Department Director. This is true for only
those employees who are under the old Sick Leave Policy.
Holiday Leave
Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other personnel
whose work assignments, in the judgment of the Department Director
require their presence on the job. For each designated holiday, except the
Floating Holidays, such excepted personnel shall receive an equivalent
number of hours of paid leave or equivalent pay whichever in the judgment
of the Department Director best serves the interest of the Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
July 4
1st Monday in Sept.
November 11
4th Thurs. in November
Last 'Y2 of working day
December 25
Last Y2 of working day
January 1
3`d Monday in February
Last Monday in May
3rd Monday in January
July 1st - 1 day
Pursuant to a separate agreement, for 2010 only, the % day Christmas Eve
and % day New Year's Eve holidays will be combined to make one full
holiday to be observed on December 30, 2010.
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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. — Fringe Benefits
A. Insurance
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits Information
Committee has been established to allow the City to present data
regarding carrier and coverage options, the cost of those options,
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.
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2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. The City
contribution toward the Cafeteria Plan shall be $1049. In addition,
the City shall contribute the minimum CalPERS participating
employer's contribution towards medical insurance. Employees shall
have the option of allocating Cafeteria Plan contributions towards the
City's existing medical, dental and vision insurance /programs. The
City and the Newport Beach City Employees Association will
cooperate in pursuing additional optional benefits to be available
through the Cafeteria Plan.
Any unused Cafeteria Plan funds shall be payable to the employee
as taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment periods.
Effective the pay period beginning January 1, 2011, the City's
contribution towards the Cafeteria Plan will increase to $1149 (plus
the minimum CaIPERS participating employer's contribution).
Effective the pay period including January 1, 2012, the City's
contribution towards the Cafeteria Plan will increase to $1249 (plus
the minimum CaIPERS participating employer'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.
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.
B. Additional Insurance Programs
1. IRS Section 125 Flexible Spending Account
13
FA
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.
Disability Insurance
The City shall provide
disability insurance to
following provisions:
Weekly Benefit
Maximum Benefit
Minimum Benefit
Waiting Period
Short-term (STD) and Long -term (LTD)
all regular full time employees with the
66.67% gross weekly wages
$10,000 /month
$50
30 Calendar Days
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid leave
once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
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.
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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. For employees in the current retirement tier, the
retirement formula is the 2.5% @ 55, calculated on the basis of the
best/highest year with the City reporting the value of the Employer
Paid Member Contribution (EPMC). 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). Current retirement tier employees will pay
an increased contribution toward the Member Contribution as
follows: 1.5% January 1, 2011, 1.5% July 2. 2011, 1.58% the pay
period that includes January 1, 2012.
2. The City will implement the 2% @ 60 retirement program with the
average of the 36 highest paid consecutive months for newly hired
employees upon the conclusion of negotiations with all affected
employee organizations. In addition these employees will pay the full
7% Member Contribution for the entire term of their employment.
3. Separate Agreement
In addition to the amounts set forth in D.1 above, pursuant to a
separate agreement unit members in the current retirement tier will
continue to pay 3.42% toward the employee contribution
(representing the entire 8% employee statutory contribution).
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.
15
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.
16
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,
17
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/Vacation /Comp and 0% 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.
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 `bashed 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.
iR
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 CaIPERS 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:
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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 iust 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.
SECTION 5. — Miscellaneous
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager
determines that a reduction in the work force is warranted because of
actual or anticipated reductions in revenue, reorganization of the work
force, a reduction in municipal services, a reduction in the demand for
service or other reasons unrelated to the performance of duties by any
specific employee. Reductions in force are to be accomplished, to the
extent feasible, on the basis of seniority within a particular Classification or
Series and this Section should be interpreted accordingly.
21
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination of
employment.
2. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on which the
employee was first granted permanent status in the current
Classification or any Classification within the Series, subject to the
following:
a. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series, 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.
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.
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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
23
i
i
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
9/80 (or 4110) schedule test will be conducted by the Department Director,
and his /her determination shall be final.
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Effective the pay period beginning January 15, 2011, the 9180 flex - schedule
will be modified as follows: employees will have the option of alternating
Fridays off only. Employees currently on a 9180 schedule with alternating
Mondays or any other day off, will convert to Fridays off beginning in
January 2011. To ensure effective coverage, employees on the 9180
schedule will be divided into groups A or 8, with equal numbers of staff as
much as possible, including management and supervisory staff, off on
alternating Fridays. To ensure ongoing compliance with Fair Labor
Standards Act, and to maintain organizational efficiency, deviations from
established flex days, if legally permitted, will be considered on a case -by-
case basis.
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.
25
F. Discipline - Notice of Intent
Employees who are to be the subject of substantial punitive discipline for
any misconduct or negligence shall be entitled to prior written notice of
intent to discipline at least seven (7) calendar days prior to the imposition of
the actual penalty. This written notice shall contain a description of the
event or conduct which justifies the imposition of discipline. The notice
shall also include the specific form of a discipline intended, and the
employee shall be offered the opportunity to a hearing before their
Department Director prior to the imposition of the penalty.
This procedure will only be applied in cases of substantial punitive
discipline. It shall be understood that a disciplinary penalty equal to an
unpaid suspension of three (3) days or greater shall be substantial. All
other discipline resulting in less than a three (3) day suspension will be
considered non - substantial and will not be subject to the aforementioned
procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to
discipline and who believe that the penalty is not justified shall have access
to the grievance procedure as established in the Employee - Employer
Resolution 2001 -50.
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
W
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 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
27
Newly hired employees shall serve a twelve (12) month probationary
period. The probationary period for promoted employees shall be
six (6) months.
Newly hired employees shall become eligible for their first step
increase after twelve (12) months. All other City rules regarding step
increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole
discretion of the City at any time without right of appeal or
hearing, except as provided in (c), below.
(b) Promotional Probation
An employee on promotional probation may be failed at any
time without right of appeal or hearing, except as provided in
(c), below, and except that failing an employee on
promotional probation must not be arbitrary, capricious or
unreasonable.
An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of
promotional probation.
When an employee fails his or her promotional probation, the
employee shall have the right to return to his or her former
class provided the employee was not in the previous class for
the purpose of training for a promotion to a higher class.
When an employee is returned to his or her former class, the
employee shall serve the remainder of any uncompleted
probationary period in the former class.
If the employee's former class has been deleted or abolished,
the employee shall have the right to return to a class in his or
her former occupational series closest to, but no higher than,
the salary range of the class which the employee occupied
immediately prior to promotion and shall serve the remainder
of any probationary period not completed in the former class.
0
(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.
I. 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.
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.
0. 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.
P. Uniform Allowance
The City will continue its practice of directly paying for dry cleaning for
individuals in the Park Patrol classification.
Signatures are on the next page.
30
j Executed this day of 12010
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
Teresa Craig, President
By:
Paul Bechely, Negotiation Team
r
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
David Hunt, City Attorney
31
Executed this day of 12010
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
By:
By:
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
4�1*6vilc Frcr orney
Teresa Craig, President
Paul Bechely, Negotiation Team
31
EXHIBIT A
CITY EMPLOYEES ASSOCIATION
Administrative Assistant
Building Department Specialist
Buyer
Cultural Arts /Grant Coordinator
Department Assistant
Fiscal Clerk
Fiscal Clerk, Senior
Fiscal Operations Supervisor
Fiscal Specialist
Graphics & Printing Specialist
Harbor Resources Specialist
Inventory Analyst
Librarian I
Librarian II
Librarian II, (Mariners)
Librarian III
Library Assistant
Library Clerk I
Library Clerk II
Library Clerk, Senior
License Inspector
License Supervisor
Mail Processing Clerk
Mail Processing Clerk, Sr.
Marketing Specialist
Office Assistant
Park Patrol Officer, Lead
Printing Services Supervisor
Public Works Specialist
Records Specialist
Recreation Coordinator
Recreation Coordinator, Assistant
Recreation Supervisor
32
ATTACHMENT B
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES'
ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution ", to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach Professional and Technical Employees'
Association for the period of July 1, 2007, through June 30, 2010; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach Professional and Technical Employees' Association have met
and conferred in good faith and agreed to modify the current Memorandum of
Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach Professional and Technical Employees' Association by adopting successor
Memorandum of Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Professional and Technical
Employees' Association shall be provided in accordance with the provisions of the
attached Memorandum of Understanding (Exhibit B).
Section 2. The term of the Memorandum of Understanding shall be for 24
months, commencing retroactively to July 1, 2010, and will remain in full force and effect
through June 30, 2012.
Adopted this
I6-yd
ATTEST:
City Clerk
day of
Mayor of the City of Newport Beach
II
2010.
EXHIBIT B
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, 2010 through June 30,
2012. 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.
2001 -50, 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, 2010. This MOU shall remain
in full force and effect until June 30, 2012, 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. 2001 -50.
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 party shall
3
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 January 1, 2012 salaries will be increased by an amount equal to
the increase in the Consumer Price Index (CPI) Los Angeles /Orange
County Urban Wage Earners Index for the 12 month commencing period
of November 2010 with a minimum 1.5% increase and a maximum 3%
increase.
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
4
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 Holiday(s)
For the purpose of calculating overtime, holidays occurring during
the regular work week will count as time worked. The floating
holiday is excluded from this provision.
C. Call -Back Duty
1. Defined
Call back duty requires the employee to respond to a request to
return to his /her work station after the normal work shift has been
completed and the employee has left his /her normal work station.
Those periods of overtime which had been scheduled by the
Department Director prior to the end of the normal work shift are
not considered call -back duty.
2. Compensation
All personnel eligible for overtime pay shall be guaranteed two (2)
hours pay, or pay for one - and - one -half (1 -1/2) times the number of
hours worked, whichever is greater. Reporting of overtime on
5
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 Engineer
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.
G. Certificate Pav
The City and Association have developed, through a separate agreement,
a certificate pay program for non - required job related certificates
beneficial to City operations. Payment for any single additional
certificate(s) do not exceed two percent (296) with a total five percent (5916)
maximum.
H. Court Time
0
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.
I. Acting Pay
NBPTEA employees will be eligible to receive "acting pay" only after
completing 80 consecutive hours in the higher classification. Acting pay is
107.5% of the employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will
be granted for all hours worked above 40 hours beginning with the 41St
hour worked in the higher classification.
J. Bi- lingual Pay
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.
K. 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 for all hours worked in
the assignment. 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 for all hours worked in the assignment.
7
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:
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 (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
1:3
Maximum
Years of Continuous
Hrs Accrued per
Annual
Allowable
Service
Pay Period
Da vs
Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
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 (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
1:3
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.
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
E
20 but less than 25 6.46
25 and over 7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31st of each
year with the following exception: with approval of the Department
Director, an employee may accrue vacation days in excess of the
two -year limit provided all such excess accumulation is taken by
March 31st of the following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. 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.
C. Sick Leave
This section applies only to those Regular Full time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex
Leave program_
1. Basis for Accrual /Full -time Employees
Employees entitled to sick leave with pay shall accrue sick leave
based on the number of hours in a normal work week for the
position to which they are assigned in accordance with the
following schedules:
Service Time Monthly
Accrual Accrual
0 -1 year 4 hours
1 -2 years 5 hours
2 -3 years 6 hours
3 -4 years 7 hours
4+ 8 hours
2. Method of Use
(a) General
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FBI
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.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued
level of sick leave equal to or greater than the full value of 50
months of accrued sick leave, and who have used six or less days
of sick leave during that calendar year will be permitted (only once
per year) to convert up to six (6) days of sick leave to either salary
or paid vacation at the value of 50% (maximum value of 3 days per
year). Eligible sick leave days converted to cash shall be at the
employee's option. Eligible sick leave days converted to paid
vacation shall require the approval of the Department Director.
Holiday Leave
Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other
personnel whose work assignments, in the judgment of the Department
Director require their presence on the job. For each designated holiday,
except the Floating Holiday, such excepted personnel shall receive an
equivalent number of hours of paid leave or equivalent pay whichever in
the judgment of the Department Director best serves the interest of the
Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
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July 4
1st Monday in September
November 11
4th Thurs. in November
Last 112 of working day
December 25
Last 1/2 of working day
January 1
3rd Monday in February
Last Monday in May
Martin Luther King Day 3rd Monday in January
Floating Holiday July 15f - 1 day
Pursuant to a separate agreement, for 2090 only, the % day Christmas
Eve and % day New Year's Eve holidays will be combined to make one
full holiday to be observed on December 30, 2090.
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.
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, 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 the
flex or vacation leave balance be reduced below one hundred and sixty
(160) hours.
SECTION 4. — Fringe Benefits
A. Insurance
1. Benefits Information Committee
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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 $1049. 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 January 1, 2011, the City's
contribution towards the Cafeteria Plan will increase to $1149 (plus
the minimum CaIPERS participating employer's contribution).
Effective the pay period including January 1, 2012, the City's
contribution towards the Cafeteria Plan will increase to $1249 (plus
the minimum CaIPERS 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.
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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 a 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 Insurance Programs
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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 base salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide
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.
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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 (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City -
paid life insurance is reduced by 50% of the pre -70 amount. This
amount remains in effect until the employee 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. For employees in the current retirement tier, the
retirement formula is the 2.5% @ 55, calculated on the basis of the
best/highest year with the City reporting the value of the Employer
Paid Member Contribution (EPMC). 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). Current retirement tier employees
will pay an increased contribution toward the Member Contribution
as follows: 1.5% January 1, 2011, 1.5% July 2, 2011, and 1.58%
the pay period that includes January 1, 2012,
2. The City will implement the 2% @ 60 retirement program with the
average of the 36 highest paid consecutive months for newly hired
employees upon the conclusion of negotiations with all affected
employee organizations. In addition these employees will pay the
full 7% Member Contribution for the entire term of their
employment.
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3. Separate Agreement
In addition to the amounts set forth in D.1 above, pursuant to a separate
agreement unit members in the current retirement tier will continue to pay
3.42% toward the employee contribution (representing the entire 8%
employee statutory contribution).
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.
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
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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 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
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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/Vacation /Comp and 0% 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.
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
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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.
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
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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 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 $4,800per 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.
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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 just Citv
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).
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
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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/Working Conditions
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager
determines that a reduction in the work force is warranted because of
actual or anticipated reductions in revenue, reorganization of the work
force, a reduction in municipal services, a reduction in the demand for
service or other reasons unrelated to the performance of duties by any
specific employee. Reductions in force are to be accomplished, to the
extent feasible, on the basis of seniority within a particular Classification
or Series and this Section should be interpreted accordingly.
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination
or employment.
2. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on which the
employee was first granted permanent status in the current
Classification or any Classification within the Series, subject to the
following:
(a) Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series; 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
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ranking classifications) characterized by the need for less
supervision by superiors, more difficult assignments, more
supervisory responsibilities for subordinates. The City Manager
shall determine those classifications following a meet and consult
process which constitute a Series.
5. "Bumping Rights ", "Bumping" or "Bump" shall mean (1) the right of
an employee, based upon seniority within a series to bump into a
lower ranking classification within the same series, (2) to be
followed by, an employee being permitted to bump into a
classification within a different series. The latter bumping shall be
based upon unit wide seniority and shall be limited to a
classification in which the employee previously held regular status.
No employee shall have the right to bump into a classification for
which the employee does not possess the minimum qualifications
such as specialized education, training or experience.
PROCEDURE
In the event the City Manager determines to reduce the number of
employees within a classification, the following procedures are applicable:
1. Temporary and probationary employees within any classification
shall, in that order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of
seniority.
3. An employee subject to layoff in one classification shall have the
right to bump a less senior employee in a lower ranking
classification within a series. An employee who has bumping rights
shall notify the Department Director within three (3) working days
after notice of layoff of his /her intention to exercise bumping rights.
4. In the event two or more employees in the same classification are
subject to layoff and have the same seniority, the employees shall
be laid off following the Department Director's consideration of
established performance evaluations.
NOTICE
Employees subject to lay -off shall be given at least thirty (30) days
advance notice of the layoff or thirty (30) days pay in lieu of notice. In
addition, employees laid off will be paid for all accumulated paid leave,
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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.
Effective the pay period beginning January 15, 2011, the 9180 flex -
schedule will be modified as follows: employees will have the option of
alternating Fridays off only. Employees currently on a 9180 schedule with
alternating Mondays or any other day off, will convert to Fridays off
beginning in January 2011. To ensure effective coverage, employees on
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the 9180 schedule will be divided into groups A or B, with equal numbers
of staff as much as possible, including management and supervisory staff,
off on alternating Fridays. To ensure ongoing compliance with Fair Labor
Standards Act, and to maintain organizational efficiency, deviations from
established flex days, if legally permitted, will be considered on a case -by-
case basis.
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 2001 -50), this MOU, or of rules and
regulations, adversely affecting an employee's wages, hours, or
conditions of employment.
A grievance shall be filed according to the following procedure:
Step 1: A grievance may be filed by any employee on his /her own behalf,
or jointly by a group of employees, or by a Recognized Employee
Organization.
Within ten (10) calendar days of the event giving rise to a grievance, the
grievant shall present the grievance in writing to the immediate supervisor.
Grievances not presented within the time period shall be considered
resolved.
The supervisor shall meet with the grievant to settle grievance and give a
written answer to the grievant within seven (7) calendar days from receipt
of the grievance by the supervisor. When the immediate supervisor is
also the department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's
answer, forward the grievance to the department head for consideration.
Answer to the grievance shall be made in writing by the department head,
after conferring with the grievant, within fourteen (14) calendar days from
receipt of the grievance.
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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 (2 1) 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
representative of his /her Recognized Employee Organization request, in
writing, a hearing before the Civil Service Board.
At the next regularly scheduled meeting of the Civil Service Board the
grievance shall be heard, using Civil Service Board DeNovo procedures.
Within 20 calendar days of the hearing the Civil Service Board shall issue
its findings and conclusions to the parties at interest.
Within 7 calendar days of the issuance of Civil Service Board findings and
conclusions the City Manager shall affirm, modify or revoke the Board's
decision. The City Manager's decision shall be considered exhaustive of
administrative remedies.
F. Probation
1. Probationary Period
Newly hired employees shall serve a twelve (12) month
probationary period. The probationary period for promoted
employees shall be six (6) months.
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Newly hired employees shall become eligible for their first step
increase after twelve (12) months. All other City rules regarding
step increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole
discretion of the City at any time without right of appeal or
hearing, except as provided in (c), below.
(b) Promotional Probation
An employee on promotional probation may be failed at any
time without right of appeal or hearing, except as provided in
(c), below, and except that failing an employee on
promotional probation must not be arbitrary, capricious or
unreasonable.
An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of
promotional probation.
When an employee fails his or her promotional probation,
the employee shall have the right to return to his or her
former class provided the employee was not in the previous
class for the purpose of training for a promotion to a higher
class. When an employee is returned to his or her former
class, the employee shall serve the remainder of any
uncompleted probationary period in the former class.
If the employee's former class has been deleted or
abolished, the employee shall have the right to return to a
class in his or her former occupational series closest to, but
no higher than, the salary range of the class which the
employee occupied immediately prior to promotion and shall
serve the remainder of any probationary period not
completed in the former class.
(c) Probationary Release
An employee who alleges that his or her probationary
release was based on discrimination by the City, may submit
27
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.
Signatures are on the next page.
28
Executed this day of 12010.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
By:
Marcus Puglisi, President
By: '' o"�
Mi ek Wojciechowski, Repre entative
By:
Ire., Paul Bechely, Negoti tion Team
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
David Hunt, City Attorney
29
Executed this day of 2010.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
By:
By:
By:
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
FIN, .
Marcus Puglisi, President
Mike Wojciechowski, Representative
Paul Bechely, Negotiation Team
019
EXHIBIT A
Professional and Technical Classes
Accountant
Accountant, Senior
Building Inspector I
Building Inspector II
Building Inspector, Principal
Building Inspector, Senior
Buyer, Senior
Civil Engineer
Civil Engineer, Associate
Civil Engineer, Junior
Civil Engineer, Sr.
City Surveyor
Code & Water Quality Enforcement Officer
Code & Water Quality Enforcement Officer, Senior
Code & Water Quality Enforcement Trainee
Community Education Coordinator
Community Preparedness Coordinator
Construction Inspection Supervisor
Economic Development Administrator
Economic Development Coordinator
Emergency Services Assistant
Emergency Services Coordinator
EMP Plans Examiner
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 Supervisor
Information Technology Operations Supervisor
Information Technology Specialist
Information Technology Specialist, Senior
Information Technology Fiscal Technician
Library Information Systems Administrator
Management Assistant
Marine Protection and Education Supervisor
30
Permit Counter Supervisor
Permit Technician
Permit Technician, Trainee
Planning Systems Administrator
Planning Technician
Planner, Assistant
Planner, Associate
Planner. Senior
Public Works Inspector I
Public Works Inspector II
Public Works Inspector, Senior
Purchasing Agent
Residential Building Records Inspector
Revenue Auditor
Survey Instrument Worker
Telecommunications Specialist
Traffic Engineering Technician
Traffic Engineering Technician, Senior
Urban Forester
Utilities Safety Officer
Water Conservation Coordinator
31
ATTACHMENT C
RESOLUTION NO. 2010 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH EMPLOYEES' LEAGUE
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution ", to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach Employees' League for the period of July 1,
2007, through June 30, 2010; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach Employees' League have met and conferred in good faith and
agreed to modify the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach Employees' League by adopting successor Memorandum of Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Newport Beach Employees' League
shall be provided in accordance with the provisions of the attached Memorandum of
Understanding (Exhibit C).
Section 2. The term of the Memorandum of Understanding shall be for 24
months, commencing retroactively to July 1, 2010, and will remain in full force and effect
through June 30, 2012.
Adopted this day of 2010.
ATTEST:
City Clerk
Mayor of the City of Newport Beach
III
EXHIBIT C
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, 2010 through June 30, 2012 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, 2010. This MOU shall remain in full
force and effect until June 30, 2012, 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 NBEL officers designated by the NBEL shall collectively be granted
120 hours paid release time maximum, annually, for the conduct of NBEL
business. Such time shall be exclusive of actual time spent in collective
bargaining and shall be scheduled at the discretion of the NBEL officer.
Every effort will be made to schedule this time to avoid interference with
City operations.
2. Release time designees shall be identified annually and notice shall be
provided to the City. Release time incurred shall be reported regularly in
the form and manner prescribed by the City.
3. Activities performed on release time shall include representation of
members in rights disputes; preparation for collective bargaining activities,
and distribution of NBEL written communication in the work place.
D. Employee Data and Access
The NBEL will be provided on a regular basis with a listing of all unit members.
The listing will include name, department, and job title. Information concerning
the NBEL prepared by the NBEL will be provided to new field employees at the
time of orientation. NBEL officials shall be entitled to solicit membership from
field employees who are not members or who are new City employees assigned
to a field department.
E. Scope
1. All present written rules and current established practices and employees'
rights, privileges and benefits that are within the scope of representation
shall remain in full force and effect during the term of this MOU unless
specifically amended by the provisions of this MOU.
2. 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.
2
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.
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 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,
3
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. 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.
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
A. Salary
Effective January 1, 2012 salaries will be increased by an amount equal to the
increase in the Consumer Price Index (CPI) Los Angeles /Orange County Urban
Wage Earners Index for the 12 month commencing period of November 2010
with a minimum 1.5% increase and a maximum 3% increase.
B. Overtime
1. Definitions
M
(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. Compensation
Normal overtime for all non - exempt employees shall be paid at one -and-
one -half (1 -1/2) times the hourly rate of the employee's bi- weekly salary
rate. Reporting of overtime on payroll forms will be as prescribed by the
Administrative Services Director. Incidental overtime is not compensable.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays 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.
C. Standbv Dut
1. Defined
(a)
(b)
(c)
To be ready to respond immediately to calls for service;
To be reachable by telephone;
To remain within a specified distance from his /her work
station; and
5
(d) To refrain from activities which might impair the employee's
ability to perform his /her assigned duties.
2. Compensation
(a) 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.
(b) Standby duty compensation for Utility employees shall
continue unchanged.
D. Call -Back Duty
1. Defined
Call -back duty requires the employee to respond to a request to return to
his /her work station after the normal work shift has been completed and
the employee has left his /her normal work station. Those periods of
overtime which had been scheduled by the Department Director prior to
the end of the normal work shift are not considered call -back duty.
2. Compensation
All personnel on call back duty eligible for overtime pay shall be
guaranteed two (2) hours pay, or pay for one - and - one -half (1 -1/2) times
the number of hours worked, whichever is greater.
E. Accumulation of Compensatory Time Off
City employees represented by the NBEL may receive compensatory time
off, in lieu of cash, as compensation for overtime hours worked.
Compensatory time shall be calculated at the rate of one and one half
hours for each hour of overtime worked beyond the 40 hour limit of the
work week. Compensatory time is to be granted only when the employer
and the employee agree that the application of "Comp Time" is a
desirable substitute for the payment of cash for overtime. Call -back time
may be converted to comp time with supervisor approval.
Employees may accumulate up to eighty (80) hours of Compensatory
Time. Any hours in excess of eighty (80) will be paid off. Accumulation in
excess of the eighty (80) hours may be approved at the discretion of the
Department Director.
F. Night Shift Differential
The City agrees to pay $1 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.
I. Certification Pav
Payment for State or governing body certifications will be made on a bi- weekly
basis for League represented employees holding a valid and current certification
in areas indicated below. Employees may submit proof of valid certificates,
including renewals, by November 15th of each year The bi- weekly payment for
such eligible certificates will begin the first pay period in January of the following
year.
1. Water or Wastewater Operator -
Grade 1-
$110
Grade II -
$220
Grade III
- $330
Grade IV
- $440
7
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 1- $110
6. Fire Mechanic State Level II - $220
7. Certified Arborist - $110
8. ASE Certification - $55 each 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.
Effective January 2011 Certificate Pay shall be modified as follows:
1. Employees holding valid certifications for any of the certificates listed
below will be eligible for the bi- weekly payment effective the pay period
beginning January 15, 2011.
2. The Water or Wastewater Operator Grade 1V shall be increased to $540
annually.
3. Water or Wastewater Operator Grade V shall be added at $600 annually.
4. Cross Connection Specialist shall be added at $110 annually.
5 Water Utility Science certificates will be added at $200 annually (one
certificate eligible - $200 max).
The City will continue its practice of reimbursing employees for application,
testing, and certification fees, who successfully complete certification
examinations for the above listed certificates.
D
The City will continue its practice of reimbursing employees for required
physicals when employees obtain /renew required Class A or 8 Drivers Licenses.
J. Court Time
Employees who are required to appear in Court during their off -duty hours in
connection with City business shall receive overtime compensation for the
number of hours they spend in court, with a minimum of two (2) hours of such
compensation.
SECTION 3. - Leaves
A. Flex Leave
1. NBEL members shall accrue Flex leave at the following rates:
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
Maximum
Years of Continuous
Hrs Accrued per
Allowable
Service
Pay Period
Annual Days
Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
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
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.
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
Accrual per pay
Continuous
period hrs
Service
0 but less than 5
3.38
10
5 but less than 9 3.99
9 but less than 12 4.61
12 but less than 16 5.22
16 but less than 20 5.84
20 but less than 25 6.46
25 and over 7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31st of each year with
the following exception: with approval of the Department Director, an
employee may accrue vacation days in excess of the two -year limit
provided all such excess accumulation is taken by March 31st of the
following year.
3. Method of Use
Vacation may not be taken in excess of that actually accrued. 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.
C. Sick Leave
This section applies only to those Regular Full -time Employees hired on or
before January 1, 1990 and who have elected not to enroll in the Flex Leave
program.
1. Basis for accrual
Full -time, 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
11
A
4+ 8 hours
2. Method of Use
(a) General
Sick leave may not be taken in excess of that actually accrued.
Sick leave may be granted on an hourly basis.
(b) Approval
Sick leave may be granted only at the discretion of or with the
approval of the Department Director and only for the purposes
defined in Section 11.2 of the Employee Policy Manual.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued level of
sick leave equal to or greater than the full value of 50 months of accrued
sick leave, and who have used six or less days of sick leave during that
calendar year will be permitted (only once per year) to convert up to six (6)
days of sick leave to either salary or paid vacation at the value of 50%
(maximum value of 3 days per year). Eligible sick leave days converted to
cash shall be at the employee's option. Eligible sick leave days converted
to paid vacation shall require the approval of the Department Director.
Holiday Leave
1. Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other except
those personnel whose work assignments, in the judgment of the
Department Director require their presence on the job. For each
designated holiday, except the Floating Holiday, such excepted personnel
shall receive an equivalent number of hours of paid flex leave or
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
12
July 4
1st Monday in Sept.
November 11
4th Thurs. in November
Last 1/2 of working day
December 25
E
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
Last 1/2 of working day
January 1
3rd Monday in February
Last Monday in May
3rd Monday in January
July 1st - 1 day
Pursuant to a separate agreement, for 2010 only, the '/z day Christmas
Eve and % day New Year's Eve holidays will be combined to make one
full holiday to be observed on December 30, 2010.
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.
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.
13
2. Maximum Allowed
Such leave shall be limited to five (5) working days per incident.
F. Leave Sellback
Twice annually, employees shall have the option of selling back on an hour for
hour basis, accrued flex or vacation leave. In no event shall the flex or vacation
leave balance be reduced below one hundred and sixty (160) hours.
SECTION 4. — Fringe Benefits
A. Health Insurance
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC) composed of
one representative from each employee association group and up to three
City representatives. The Benefits Information Committee has been
established to allow the City to present data regarding carrier and
coverage options, the cost of those options, appropriate coverage levels
and other health programs. The purpose of the BIC is to provide each
employee group with information about health insurance /programs and to
receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. The City
contribution toward the Cafeteria Plan shall be $1049. 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 January 1, 2011, the City's contribution
towards the Cafeteria Plan will increase to $1149 (plus the minimum
CaIPERS participating employers contributions).
14
a
3
H
Effective the pay period including January 1, 2012, the City's contribution
towards the Cafeteria Plan will increase to $1249 (plus the minimum
Ca /PERS participating employers contribution).
NBEL members who do not want to enroll in any medical plan offered by
the City must provide evidence of group medical insurance coverage, and
execute an opt -out agreement releasing the City from any responsibility or
liability to provide medical insurance coverage on an annual basis.
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,
Additional Health Insurance /Programs
1
2.
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.
Disability Insurance
The City shall provide disability insurance to all regular full time
employees with the following provisions:
Weekly Benefit
Maximum Benefit
Minimum Benefit
66.67% gross weekly wages
$10,000 /month
$50
15
A
N
Waiting Period 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 %) percent of base salary. Simultaneously, the City
increased base wages by one (I%) 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.
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.
The Retirement Benefit
1
2.
Existing Benefits
The City contracts with PIERS to provide retirement benefits for its
employees. For employees in the current retirement tier, the retirement
formula is the 2.5% @ 55, calculated on the basis of the best/highest year
with the City reporting the value of the Employer Paid Member
Contribution (EPMC). In addition, the City contracts for the 4th 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). Current retirement
tier employees will pay an increased contribution toward the Member
Contribution as follows: 1.5% January 1, 2011, 1.5% July 2. 2011, 1.58%
the pay period that includes January 1, 2012.
The City will implement the 2% @ 60 retirement program with the average
of the 36 highest paid consecutive months for newly hired employees
16
upon the conclusion of negotiations with all affected employee
organizations. In addition these employees will pay the full 7% Member
Contribution for the entire term of their employment.
3. Separate Agreement
In addition to the amounts set forth in D.1 above, pursuant to a separate
agreement unit members in the current retirement tier will continue to pay
3.42% toward the employee contribution (representing the entire 8%
employee statutory contribution).
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 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
17
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, 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/Vacation /Comp and 0% 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. 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.
In
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 PIERS 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
19
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 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
to
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
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 iust 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
21
successful completion of the course. Successful completion means a grade of
"C" or better for undergraduate courses and a grade of "B" or better for graduate
courses.
All claims for tuition reimbursement require the approval of the Administrative
Services Director.
SECTION 5. Miscellaneous/Workinci Conditions
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager determines that
a reduction in the work force is warranted because of actual or anticipated
reductions in revenue, reorganization of the work force, a reduction in municipal
services, a reduction in the demand for service or other reasons unrelated to the
performance of duties by any specific employee. Reductions in force are to be
accomplished, to the extent feasible, on the basis of seniority within a particular
Classification or Series and this Section should be interpreted accordingly.
DEFINITIONS
1. "Layoffs" or "Laid Off' shall mean the non - disciplinary termination or
employment.
2. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on which the employee
was first granted permanent status in the current Classification or any
Classification within the Series, subject to the following:
(a) Credit shall be given only for continuous service subsequent to the
most recent appointment to permanent status in the Classification
or Series; 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
22
superiors, more difficult assignments and more supervisory
responsibilities for subordinates. The City Manager shall determine those
classifications following a meet and consult process which constitute a
Series.
5. 'Bumping Rights ", "Bumping" or 'Bump" shall mean (1) the right of an
employee, based upon seniority within a series to bump into a lower
ranking classification within the same series, (2) to be followed by, an
employee being permitted to bump into a classification within a different
series. The latter bumping shall be based upon unit wide seniority and
shall be limited to a classification in which the employee previously held
regular status.
No employee shall have the right to bump into a classification for which
the employee does not possess the minimum qualifications such as
specialized education, training or experience.
PROCEDURE
The General Services Department will select employees for layoff by straight
seniority department wide. This means department management has total
control of position elimination and personnel reassignment within ranks, but the
layoffs shall be on a straight forward 'last hired -first fired" basis.
The layoff system for the Utilities Department shall operate the same
department -wide seniority as does the General Services Department, with the
exception of the Electrical and Telecommunications sections. Because of the
highly specialized skills and training of the personnel in these sections, these
sections shall be treated as unique and individual unto themselves.
In the event the City Manager determines to reduce the number of employees
within a classification, the following procedures are applicable:
1. Temporary and probationary employees within any classification shall, in
that order, be laid off before permanent employees.
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.
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4. In the event two or more employees in the same classification are subject
to layoff and have the same seniority, the employees shall be laid off
following the Department Director's consideration of established
performance evaluations.
REEMPLOYMENT
Permanent and probationary employees who are laid off shall be placed on a
Department re- employment list in reverse order of layoff. The re- employment list
shall expire in 18 months. In the event a vacant position occurs in the
classification which the employee occupied at the time of layoff, or a lower
ranking classification within a series, the employee at the top of the Department
re- employment list shall have the right within seven (7) days of written notice of
appointment. Notice shall be deemed given when personally delivered to the
employee or deposited in the U.S. Mail, first class postage prepaid, and
addressed to the employee at his or her last known address. Any employee
shall have the right to refuse to be placed on the re- employment list or the right
to remove his or her name from the re- employment list by sending written
confirmation to the 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
24
unit members so qualified. The Human Resources Department shall be
responsible for insuring that a position vacancy announcement for all available
City positions be distributed in a manner that reasonably assures unit members
access to the announcements. The Human Resources Department shall
oversee all testing procedures.
Any employee who has achieved "regular status" may request assignment to any
lateral or lower classification, and that employee may be transferred into that
classification without competitive testing if both of the following conditions have
been satisfied:
1. The employee meets the minimum qualifications of the classification, and,
2. The Department Director approves of the transfer.
D. 9/80 Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently in place in the
Municipal Operations 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.
Effective the pay period beginning January 15, 2011, the 9180 flex - schedule will
be modified as follows: employees will have the option of alternating Fridays off
only. Employees currently on a 9180 schedule with alternating Mondays or any
other day off, will convert to Fridays off beginning in January 2011. To ensure
effective coverage, employees on the 9180 schedule will be divided into groups A
or 8, with equal numbers of staff as much as possible, including management
25
and supervisory staff, off on alternating Fridays. To ensure ongoing compliance
with Fair Labor Standards Act, and to maintain organizational efficiency,
deviations from established flex days, if legally permitted, will be considered on a
case -by -case basis.
E. Labor Management Committee
Committees shall meet on an as needed basis; names of participating unit
members shall be announced to management no less than 5 work days before
the scheduled meeting; cancellation for cause shall be rendered by the canceling
party no less than 48 hours prior to the scheduled meeting; canceled meetings
shall be rescheduled to take place within 5 working days of the canceled
meeting; committees shall be departmental, they may be combined in the
interests of efficiency with other such committees; City participants shall include
appropriate department or division heads outside the unit; the purpose of the
committees shall be to resolve conflict and exchange information; a unit staff
person may attend meetings; meetings shall be scheduled to last no less than
one hour; grievances in process shall not be subject to resolution in meetings;
matters properly dealt with in negotiations may be discussed but no agreements
shall be effected on same in committee. Meetings shall be on work time.
F. Discipline - Notice of Intent
1. Employees who are to be the subject of substantial punitive discipline for
any misconduct or negligence shall be entitled to prior written notice of
intent to discipline at least seven (7) calendar days prior to the imposition
of the actual penalty. This written notice shall contain a description of the
event or conduct which justifies the imposition of discipline. The notice
shall also include the specific form of a discipline intended, and the
employee shall be offered the opportunity to a hearing before their
Department Director prior to the imposition of the penalty.
This procedure will only be applied in cases of substantial punitive
discipline. It shall be understood that a disciplinary penalty equal to an
unpaid suspension of three (3) days or greater shall be substantial. All
other discipline resulting in less than a three (3) day suspension will be
considered non - substantial and will not be subject to the aforementioned
procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to
discipline and who believe that the penalty is not justified shall have
access to the grievance process as established in the Employee -
Employer Resolution2001 -50.
26
G. Grievance Procedure
Step 1: A grievance may be filed by any employee on his /her own behalf, or
jointly by a group of employees, or by a Recognized Employee Organization.
Within ten (10) calendar days of the event giving rise to a grievance, the grievant
shall present the grievance in writing to the immediate supervisor. Grievances
not presented within the time period shall be considered resolved.
The supervisor shall meet with the grievant to settle grievance and give a written
answer to the grievant within seven (7) calendar days from receipt of the
grievance by the supervisor. When the immediate supervisor is also the
department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's answer,
forward the grievance to the department head for consideration. Answer to the
grievance shall be made in writing by the department head, after conferring with
the grievant, within fourteen (14) calendar days from receipt of the grievance.
Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be made
by the grievant within ten (10) calendar days from the receipt of the department
heads answer, through the representative of his /her Recognized Employee
Organization who may request a meeting with the City Representative to resolve
the grievance. Following the meeting, answer shall be made by the City.
Representative, in writing, to the representative within twenty -one (21) calendar
days.
Step 4: Mediation - If the grievance is not resolved after Step 3, as an alternative
to proceeding directly to Step 5, the grievance may be submitted to mediation. A
request for mediation may be presented in writing to the Human 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.
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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.
Newly hired employees shall become eligible for their first step increase after
twelve (12) months. All other City rules regarding step increases shall remain
unchanged.
I. Failure of Probation
1. New Probation
An employee on new probation may be released at the sole discretion of
the City at any time without right of appeal or hearing, except as provided
in Subsection 3. below.
2. Promotional Probation
(a) An employee on promotional probation may be failed at any time
without right of appeal or hearing, except as provided in Subsection
3, below, and except that failing an employee on promotional
probation must not be arbitrary, capricious or unreasonable.
(b) An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of promotional
probation.
(c) When an employee fails his or her promotional probation, the
employee shall have the right to return to his or her former class
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.
m
(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.
J. Accident Reporting
The City will require that all traffic collisions involving City vehicles shall be
reviewed by the traffic division supervisor of the Newport Beach Police
Department to prevent any unnecessary reports from being forwarded to the
DMV. Also, the vehicle accident review board will evaluate the supervisor's field
report prior to making its preventable /non - preventable determination.
K. Injury Prevention Program (IPP)
Until such time as the Injury Prevention Program (IPP) is fully developed the
following understandings apply:
1. The City will indemnify and hold harmless from civil and criminal
prosecution NBEL members for any liability which might arise out of the
City's IPP (mandated by SB198). Once the program has been fully
developed and implemented, the IPP will come into full force and effect.
2. The City will take into consideration the adequacy of training prior to
issuing discipline or depreciated performance evaluations to employees
who have been determined to be in non - compliance to the City's IPP.
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.
29
5. The City agrees to include representatives from the NBEL in a meet and
consult role, as part of the process which will be employed for the
incorporation of changes in the IPP.
L. Safety Shoes
The present policy and practices regarding the supply and maintenance of safety
shoes shall remain in place except for the following changes as they apply to the
accelerated wear provisions.
If the soles of the safety shoes wear out within a year, the employee should
present the shoes to his /her supervisor. If the supervisor agrees that the soles
are worn out, he will authorize the employee to purchase a new pair of shoes at
City expense. If the supervisor judges that the uppers are in good condition, he
will authorize the employee to have the shoes resoled at City expense.
M. Uniforms
It shall be understood by the NBEL and its members that employees who report
for work either "out of uniform" or in "dirty" or "otherwise substandard" uniforms
will be sent home without additional prior notice and without pay. Such incidents
shall further be documented and regularly repeated violations of the uniform
standards will subject the employee to progressive discipline up to and including
dismissal for negligence and /or misconduct.
Employees represented by the NBEL will be permitted to wear specified and
approved shorts as part of the City approved optional uniform. The shorts must
be dark blue in color, the inseam must be no less than 4 and 1/2 inches after
shrinkage. They must be worn in combination with the standard City uniform
shirt of the optional (golf style) City uniform shirt, and they must be worn with
either white or blue socks. The optional uniform shall be considered proper and
acceptable year round. Department Directors may make individual exceptions to
this optional uniform agreement through the establishment of Departmental
Policy in the interest of reasonable safety considerations.
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 Safety Training
The City will continue its program of providing supervisory and motivational
training for Supervisors and Crew Chiefs. The program, will if possible, be
30
expanded to include non - supervisory personnel wherever practical. The
equipment operator training program will continue on an as needed basis.
Course subject matter may include, but not limited to: interpersonal working
relationships, public service, performance evaluation techniques, employee
counseling and discipline, harassment avoidance, defensive driving, substance
abuse, skills and safety methods and procedures, and wellness.
P. Clean -Up Time
When necessary, each employee shall be permitted up to fifteen (15) minutes of
paid City time at the end of each work shift to perform work related job site and
personal clean -up and to put away tools and equipment. The amount of clean-
up time shall be limited to the actual needs of the employee.
Q. Rest Periods
Employees shall be allowed rest period of fifteen (15) minutes during each four
(4) consecutive hours of work.
Such rest periods shall be scheduled in accordance with the requirements of the
Department, but in no case shall rest periods be scheduled within one (1) hours
of the beginning of the ending of a work shift or lunch period. The City may
designate the location or locations at which rest periods may be taken.
Rest periods shall be considered hours worked and employees may be required
to perform duties, if necessary.
R. Service Awards
For the purposes of determining service awards, if an employee has been
employed by the City on more than one occasion, non - consecutive time will be
considered as part of total service. Prior to system implementation, an employee
is required to individually notify the awards committee of all of the service time.
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 Deposit
All newly hired employees shall participate in the payroll direct deposit system.
31
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 2010 -2011 through the last pay period of fiscal year 2011-
2012. Proposals for the succeeding MOU must be submitted on or before March
1, 2012 in accordance with Section 13, Timetable for Submission of Requests of
the Employer - Employee Relations Resolution. Upon adoption of a resolution
approving this MOU and the terms hereof by the City Council of the City of
Newport Beach, this MOU shall be in force and effect as of the first day of the
first pay period of fiscal year 2010 -2011.
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.
K�J
Executed this day of , 2010:
NEWPORT BEACH EMPLOYEES LEAGUE
By:
Tim MMorell, President
By: QLL
Chris Auger, Vice re ident
andin Miller, S creta
By: � � -
Darren Foster, Treasurer
By:
John Partridge, Member -At -Large
By:
Larry Lykins, Representative
CITY OF NEWPORT BEACH
By:
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
David Hunt, City Attorney
33
Executed this day of , 2010:
NEWPORT BEACH EMPLOYEES LEAGUE
By:
Tim Morell, President
By:
Chris Auger, Vice President
By:
Landin Miller, Secretary
By:
Darren Foster, Treasurer
By:
John Partridge, Member -At -Large
By:
Larry Lykins, Representative
CITY OF NEWPORT BEACH
M
Mayor
ATTEST:
City Clerk
APPROVED AS TO FO
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
Concrete Finisher
Concrete Maintenance Crew Chief
Concrete Supervisor
Electrician
Electrical Services Crew Chief
Electrical Services Supervisor
Equipment Mechanic I
Equipment Mechanic II
Equipment Mechanic, Senior
Equipment Maintenance Supervisor
Equipment Operator I
Equipment Operator II
Facilities Maintenance Technician
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 Supervisor
Parking Meter Serviceworker
Parking Meter Supervisor
Pest Control Technician
Refuse Supervisor
Refuse Worker I
Refuse Worker II
Senior Services Van Driver
Storm Drain /Street Sweeping Crew Chief
Storm Drain /Street Sweeping Supervisor
34
Street Maintenance Crew Chief
Street Maintenance Supervisor
Traffic Painter
Transfer Station Crew Chief
Transfer Station Operator
Utilities Crew Chief
Utilities Equipment Specialist
Utilities SCADA Coordinator
Utilities SCADA Technician
Utilities Specialist
Utilities Specialist, Sr.
Utilities Supervisor
Utilities Video Technician
Water Production Operator
Water Production Supervisor
Water Quality Coordinator
911
THE CITY OF NEWPORT BEACH
KEY AND MANAGEMENT EMPLOYEES
COMPENSATION PLAN
F
2010 -2012
\LI FO RN/
IV
ATTACHMENT D
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
INTRODUCTION
Consistent with applicable laws, the following represents the salary and benefit
program established by the City Council for Key and Management. The Key and
Management Compensation Plan shall in no manner be interpreted as a guaranteed
or implied contract between the City and any employee or group of employees.
The Key and Management Group are divided into four categories:
• Executive Management
• Administrative Management
• Division Head
• Confidential
Appendix A lists all classifications in each category.
COMPENSATION
A. Salary
All Key and Management employees (excluding City Manager, City Attorney,
and City Clerk) will receive the following cost of living increases:
Effective January 1, 2012 salaries will be increased by an amount equal to
the increase in the CPl LA/0C Urban Wage Earners Index for the 12 month
commencing period of November 2010 with a minimum 1.5% increase and a
maximum 3% increase.
B. Range Advancement
Advancement through the salary range varies depending on the Group to
which the employee is assigned:
Executive Management - No steps; movement at the discretion of the City
Manager.
Administrative Management - Five -step range with merit step increases on an
annual basis.
Division Head - Five -step range with eligibility for merit step increases on an
annual basis.
Confidential - Eight -step range with eligibility for merit step increases on an
annual basis.
1
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
Salary steps are placed in five percent (5 %) increments within the range for
Administrative Management, Division Head, and Confidential groups.
C. Performance Reviews and Anniversary Dates
All Key and Management employees hired prior to 12/31/01 will have a
December 1, or first full pay period in December, anniversary date. Key and
Management employees hired after December 2001 will have an anniversary
date based upon hire date and hours of service. All Executive Management,
Administrative Management, and Division Head performance evaluations will
be reviewed by the City Manager prior to implementation of any range
advancement.
D. Bilingual PaV
Upon determination of the Department Director that an employee's ability to
speak, read and /or write in Spanish, or other language as approved,
contributes to the Department, the employee shall be eligible to receive
$150.00 per month in bilingual pay. A certification process will be conducted
which will confirm that the employee is fluent at the street conversational level
in speaking, reading and /or writing Spanish or other approved language.
E. Non - Exempt Overtime and Compensatory Time Off
Employees in non - exempt positions are eligible to receive overtime or
compensatory time off. Overtime for non - exempt positions shall be paid at
one - and - one -half (1 '' /z) times the employee's hourly rate of pay for hours
worked in excess of the basic workweek. Overtime work must be approved
by the employee's supervisor. Compensatory time off for non - exempt
positions shall accrue at the rate of one - and - one -half (1 ''/2) times for every
overtime hour worked. 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. Jury Duty
An Employee called to serve as a juror shall notify his /her Supervisor on the
first Workday following receipt of the summons. Any Employee of the City
legally required to serve as a juror shall be entitled to leave with pay and all
benefits for a period of up to sixty (60) days so long as his /her presence is
legally required.
E
LEAVES
Q
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
Holidays
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
New Year's Day
Martin Luther King Birthday
Washington's Birthday
Memorial Day
Floating Holiday
Observed
July 4
First Monday in September
November 11
Fourth Thursday in November
Friday following Thanksgiving
December 24 - last half of working day
December 25
December 31- last half of working day
January 1
Third Monday in January
Third Monday in February
Last Monday in May
(1) July 1st
In 2010 only, the half -day Christmas Eve and New Year's Eve holidays will be
combined into one full holiday that will be observed on December 30, 2010.
Holidays listed above occurring on a Saturday shall be observed the
preceding Friday. Holidays occurring on a Sunday shall be observed on the
following Monday. All holidays are credited at eight (8) hours.
B. Flex Leave
Regular full -time employees in the Administrative Management, Division
Head and Confidential categories enrolled in the flex leave program will earn
leave according to the following schedule:
Years of Continuous
Hrs Accrued
Annual
Maximum
Service
per Pay Period
Days
Allowable
Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
8.31
27
648.18
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
.i7
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
Spillover: Employees hired prior to July 1, 1996 shall be paid for earned flex
leave in excess of the employee's maximum accrual rate (spillover) provided
that they utilized at least 80 hours flex leave the previous calendar year.
Employees with 16 or more years of continuous service are required to use
120 hours of flex leave the previous calendar year.
Regular full -time employees in the Executive Management category will earn
flex leave according to the following schedule:
Years of Continuous Hours per Annual
Service Pay Period Days
1 but less than 15 8.31 27
15 and over 9.23 30
During the first six months of employment, new regular full -time employees
shall not accrue paid leave. At the completion of six months of employment
six months of accrued leave will be placed in the employees account.
If an employee becomes sick in the first six months of employment, the City
will advance up to six months of potentially accrued flex leave time to be used
for the illness only. If the employee terminates employment prior to six
months, the City will deduct the pay equivalent of the number of flex leave
days advanced from the employee's final check. Any flex leave time
advanced during the first six months of employment will be deducted from the
six months of accrual placed in the employees account upon completion of six
months employment.
1. Limit on Accumulation
Employees first hired, or rehired by the City subsequent to July 1,
1996, shall not be eligible for flex leave spillover pay and shall not be
entitled to accrue flex leave in excess of the flex leave accrual
threshold.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued, and in
no case, except for illness, may it be taken prior to the completion of
an employee's initial probationary period.
The Department Director shall approve all requests for flex leave,
taking into consideration the needs of the Department, and whenever
possible, the seniority and wishes of the employee.
CI
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
C. Sick Leave
Key and Management employees employed by the City prior to initiation of
the flex leave program had separate sick and vacation leave banks. With the
initiation of the flex leave program, vacation leave was converted to flex leave
on an hour for hour basis and any sick leave hours remained in a bank to be
used as provided in Section 11.2 (Sick Leave) of the Employee Policy
Manual.
D. Dependent Care
Employees may use up to' /z of Flex Leave accrued per year to provide care
for any member of the employee's immediate family in need of care due to
illness or injury.
E. Bereavement Leave
Bereavement leave shall be defined as "the necessary absence from duty by
an employee having a regular or probationary appointment because of a
death or terminal illness in his /her immediate family." For the purposes of this
section, immediate family shall mean father, mother (including step), brother,
sister, wife, husband, child, and grandparents, or the employee's spouse's
father, mother, brother, sister, child and grandparents. Employees shall be
entitled to 40 hours of bereavement leave per incident per year.
F. Administrative Leave
All overtime, either paid or compensatory time off, will be eliminated for FLSA
exempt Management personnel. In its place, Administrative Leave will be
granted, for a minimum of 8 hours and a maximum of 80 hours, to be
determined by the Department Director with the concurrence of the City
Manager, based upon the number of overtime hours normally worked by the
individual exempt employee.
G. 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.
Employees selling back and cashing out accrued flex leave shall be required
to contribute 50% of cashed out leave accumulations into the employee's
MERP Account.
5
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
BENEFITS
A. Insurance
1. Health and Dental Insurance
The City has implemented an IRS qualified Cafeteria Plan.
The City contributes $1049 per month. In addition, the City shall
contribute the minimum CaIPERS participating employer's contribution
towards medical insurance.
Effective January 1, 2011, the City's contribution towards the Cafeteria
Plan shall be $1149 per month, plus the minimum Ca1PERS
contribution.
Effective the pay period including January 1, 2012, the City's
contribution towards the Cafeteria Plan shall be $1249 per month.
Employees shall have the option of allocating Cafeteria Plan
contributions towards the City's existing medical, dental and vision
insurance /programs.
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.
Key and Management employees 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.
2. Vision Insurance
Employees may purchase vision insurance upon hire and during
benefits open enrollment.
3. Disability Insurance
The City shall provide disability insurance with the following provisions:
N
IV
C.
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
Weekly Benefit
Maximum Monthly Benefit
Minimum Benefit
Waiting Period
66 2/3% gross weekly wages
$10,000
$15 (STD) /$50 (LTD)
30 Calendar Days (STD) /180
Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves prior
to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid leave
once the waiting period has been exhausted.
Employees are responsible for the payment of the disability insurance
cost in the amount of one (1 %) percent of base salary.
Additional Benefits
1. IRS Section 125 Flexible Spending Account
The City provides a qualified Section 125 Flexible Spending Account
which authorizes an employee to reduce taxable income for payment
of allowable expenses such as child care and medical expenses.
2. Life Insurance
The City shall provide life insurance for all regular full -time employees
in $1,000 increments based on annual salary up to $50,000.
3. Employee Assistance Program
Employees are eligible to receive EAP benefits, which provide
confidential counseling and education on work and life issues, subject
to provider guidelines.
Retirement Benefits
1. PERS Benefit
The City contracts with PERS to provide retirement benefits for its
employees. For employees in the current retirmenet tier, the
retirement formula is 2.5% @55 (Miscellaneous) and 3 % @50 (Safety),
7
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
calculated on the basis of best/highest year with the City reporting the
value of the Employer Paid Member Contribution (EPMC). Additional
benefits include the following: Sick Leave Credit, Military Service
Credit, $500 Death Benefit, 2% COLA, 4tr' Level 1959 Survivor Benefit,
and Pre - Retirement Option 2 Death Benefit (Section 21548). The
entire 3.42% cost of the plan change for the ehanced retirement
2.5% @55 formula (2.42% employer and 1% employee) will be paid by
the employee and added to the employee's rate (Miscellaneous only).
Effective January 1, 2011, employees in the current retirement tier
(Miscellaneous only) will pay additional contributions toward the
Member Contribution as follows: 1.5% January 1, 2011, 1.5% July 2.
2011, 1.58% the pay period that includes January 1, 2012.
Upon conclusion of negotiations with all affected employee
organizations, the City will implement a two -tier retirement plan
providing the 2% @ 60 retirement benefit, with the average of the 36
highest paid consecutive months, for all newly hired Key and
Management employees (Miscellaneous only). In addition, these
employees will pay the full 7% Member Contribution for the entire term
of their employment.
2. LIUNA Supplemental Pension
The City shall contribute, on behalf of each Key and Management
employee, 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.
D. Retiree Medical Benefits
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:
E
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
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 Category 1, the program is structured as
follows:
Each employee will have an individual MERP account
(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): $2.50 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). .
2
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
Part C contributions (leave settlement as determined by Key
and Management employees):
Key and Management employees will determine the level of
contribution, subject to the following constraints. All employees
within Key and Management must participate at the same level.
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 Key and Management employees determine 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.
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. Sick
leave participation is a separate item from vacation /flex leave
participation, and thresholds must be separately identified by
the Key and Management group.
Key and Management employees have agreed to Part C
contributions at the level of 25% of sick leave and 50% of Flex
leave. This amount may be changed, on a go forward basis,
as determined among the Key and Management group.
Nothing in this section restricts taking leave for time off
purposes.
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).
10
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012.
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.
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 City's Part B contributions during active employment
constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. In
addition, retirees selecting a CaIPERS 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:
11
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
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 iust City insurance premiums.
12
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
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).
E. Tuition Reimbursement
Key and Management employees may apply for reimbursement of 100% of the
actual cost of tuition, books, fees or other student expenses for approved job —
related courses. Maximum tuition reimbursement for employees is $1,400.00
per fiscal year and reimbursement is contingent upon the successful
completion of the course. All claims for tuition reimbursement require
approval.
MISCELLANEOUS
A. Probationary Period
Newly hired employees shall serve a twelve -month probationary period. Any
employee who is promoted shall be required to successfully complete a six
(6) month probationary period in the new position. All Executive Management
positions serve at -will and can be released from employment at any time.
13
City of Newport Beach
KEY AND MANAGEMENT COMPENSATION PLAN
Effective July 1, 2010 to June 30, 2012
The City Manager, City Attorney and City Clerk serve at the pleasure of the
City Council.
C. Direct Deposit
All newly hired employees shall participate in the payroll direct deposit
system.
D. Exempt and Non - exempt Status
All classifications in Key and Management are classified as exempt under the
FLSA, with the following exceptions:
Deputy City Clerk
Administrative Assistants to the Police Chief, Fire Chief, City Attorney
and Human Resources Director
Administrative Support Services Coordinator
Executive Assistant to the City Manager
Human Resources Specialist 1 /11
Administrative Analyst — Utilities Department
E. 9/80 Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently operating
successfully. Any new flex scheduling must be approved by the City Manager
prior to implementation.
F. Employee Policy Manual
The City of Newport Beach's Employee Policy Manual shall govern all issues
not addressed in this document with respect to wages, hours and other terms
and conditions of employment.
Revised 12/02/2010
14
Appendix A
Key & Management Classifications
2010 -2012
Administrative Management Confidential
Assistant City Attorney
Deputy Director, Administrative Services
Deputy General Services Director
Deputy PW Director /City Engineer
Utility Operations Manager
Utilities General Manager (proposed)
Division Heads
Accounting Manager
Administrative Manager
Assistant City Engineer
Assistant to the City Manager
Budget Manager
Chief Building Inspector
Civil Engineer, Principal
Civil Engineer, Principal — Plan Check
City Traffic Engineer
Code & Water Quality Enforcement Div. Mgr
Deputy Building Official
Equipment Maintenance Superintendent
Field Maintenance Superintendent
Harbor Resources Manager
Human Resources /Risk Mgmt Administrator
IT Manager
Library Services Manager
Operations Support Superintendent
Park & Tree Superintendent
Public Information Manager
PW Finance /Admin Manager
Recreation Manager
Recreation Superintendent
Refuse Superintendent
Revenue Manager
Senior Services Manager
Administrative Analyst
Administrative Assistant to City Attorney
Administrative Assistant to Fire Chief
Administrative Assistant to HR Director
Administrative Assistant to Police Chief
Administrative Support Services Coordinator
Assistant City Clerk
Budget Analyst
Deputy City Attorney
Deputy City Clerk
EMS Manager
Executive Assistant to City Manager
Human Resources Analyst
Human Resources Analyst, Senior
Human Resources Specialist 1 /II
Paralegal
Principal Planner
Public Information Coordinator
Human Resources Supervisor
Sr. Budget Analyst
Sr. Human Resources Analyst
Executive Management
Administrative Services Director/Treasurer
Assistant City Manager
City Attorney
City Clerk
City Manager
Community Development Director (proposed)
Fire Chief
Municipal Operations Director (proposed)
Human Resources Director
Library Services Director
Police Chief
Public Works Director
Recreation and Senior Services Director
Revised 12/06/2010
ATTACHMENT E
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NO. 94 -42 TO MODIFY THE PAYING
AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER
CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY THE NEWPORT
BEACH CITY EMPLOYEES' ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolution No. 94 -42 to pay and report the value of the 7 % Employer
Paid Member Contribution (EPMC) to CalPERS for employees represented by
the Newport Beach City Employees' Association; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement, and
WHEREAS, the City Council of the City of Newport Beach and the
Newport Beach City Employees' Association has a written agreement which
specifically provides a portion of the normal member contribution to be paid by
the employer and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees represented by
the Newport Beach City Employees' Association.
Section 2. Effective January 1, 2011, this benefit shall be modified
to consist of paying 5.5% of the normal contributions as EPMC and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 3. Effective July 2, 2011, this benefit shall be modified to
consist of paying 4.0% of the normal contributions as EPMC, and reporting the
V
(1)
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 4. Effective December 31, 2011, this benefit shall be
modified to consist of paying 2.42% of the normal contributions as EPMC, and
reporting the same percent (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Adopted this
M
ATTEST:
City Clerk
day of
2010.
Mayor of the City of Newport Beach
VI
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NO. 94 -39 TO MODIFY THE PAYING
AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER
CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY THE NEWPORT
BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES' ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolution No. 94 -39 to pay and report the value of the 7% Employer
Paid Member Contribution (EPMC) to CalPERS for employees represented by
the Professional and Technical Employees' Association; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement; and
WHEREAS, the City Council of the City of Newport Beach and the
Newport Beach Professional and Technical Employees' Association has a written
agreement which specifically provides a portion of the normal member
contribution to be paid by the employer and reported as additional compensation;
and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees represented by
the Newport Beach Professional and Technical Employees' Association.
Section 2. Effective January 1, 2011, this benefit shall be modified
to consist of paying 5.5% of the normal contributions as EPMC and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 3. Effective July 2, 2011, this benefit shall be modified to
consist of paying 4.0% of the normal contributions as EPMC, and reporting the
VII
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 4. Effective December 31, 2011, this benefit shall be
modified to consist of paying 2.42% of the normal contributions as EPMC, and
reporting the same percent (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Adopted this day of 2010.
la
ATTEST:
City Clerk
Mayor of the City of Newport Beach
VIII
(3)
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NO. 94-43 TO MODIFY THE PAYING
AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER
CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY THE NEWPORT
BEACH EMPLOYEES' LEAGUE
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolution No. 94 -43 to pay and report the value of the 7% Employer
Paid Member Contribution (EPMC) to CalPERS for employees represented by
the Newport Beach Employees' League, and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement; and
WHEREAS, the City Council of the City of Newport Beach and the
Newport Beach Employees' League has a written agreement which specifically
provides a portion of the normal member contribution to be paid by the employer
and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees represented by
the Newport Beach Employees' League.
Section 2. Effective January 1, 2011, this benefit shall be modified
to consist of paying 5.5% of the normal contributions as EPMC and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 3. Effective July 2, 2011, this benefit shall be modified to
consist of paying 4.0% of the normal contributions as EPMC, and reporting the
ix
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 4. Effective December 31, 2011, this benefit shall be
modified to consist of paying 2.42% of the normal contributions as EPMC, and
reporting the same percent (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Adopted this
M
ATTEST:
City Clerk
day of
2010.
Mayor of the City of Newport Beach
W
(4)
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTION NO. 94 -38 TO MODIFY THE PAYING
AND REPORTING OF THE VALUE OF THE EMPLOYER PAID MEMBER
CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS) FOR KEY AND MANAGEMENT EMPLOYEES
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolution No. 94 -38 to pay and report the value of the 7% Employer
Paid Member Contribution (EPMC) to CalPERS for employees in the Key and
Management group; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a written agreement; and
WHEREAS, the City Council of the City of Newport Beach has adopted a
Key and Management Compensation Plan which specifically provides a portion
of the normal member contribution to be paid by the employer and reported as
additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees in the Key and
Management group.
Section 2. Effective January 1, 2011, this benefit shall be modified
to consist of paying 5.5% of the normal contributions as EPMC and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
Section 3. Effective July 2, 2011, this benefit shall be modified to
consist of paying 4.0% of the normal contributions as EPMC, and reporting the
same percent (value) as compensation earnable (excluding Government Code
Section 20636(c)(4)) as additional compensation;
xr
Section 4. Effective December 31, 2011, this benefit shall be
modified to consist of paying 2.42% of the normal contributions as EPMC, and
reporting the same percent (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Adopted this day of 2010.
ATTEST:
City Clerk
Mayor of the City of Newport Beach
XIr